[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2920 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 720
110th CONGRESS
  2d Session
                                S. 2920

     To reauthorize and improve the financing and entrepreneurial 
  development programs of the Small Business Administration, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 24, 2008

   Mr. Kerry (for himself, Ms. Snowe, and Mr. Levin) introduced the 
             following bill; which was read the first time

                             April 28, 2008

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
     To reauthorize and improve the financing and entrepreneurial 
  development programs of the Small Business Administration, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SBA Reauthorization and Improvement 
Act of 2008''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
                    TITLE I--SMALL BUSINESS LENDING

Sec. 101. Authorization of appropriations.
                     Subtitle A--Microloan Programs

Sec. 121. Conforming technical change in average smaller loan size.
Sec. 122. Inclusion of persons with disabilities.
Sec. 123. Microloan program improvements.
Sec. 124. Prime reauthorization and transfer to the Small Business Act.
Sec. 125. Report to congress on the microloan program.
             Subtitle B--Intermediary Lending Pilot Program

Sec. 141. Findings.
Sec. 142. Small business intermediary lending pilot program.
                     Subtitle C--7(a) Loan Program

Sec. 161. Preferred lenders program.
Sec. 162. Maximum loan amount.
Sec. 163. Maximum 504 and 7(a) loan eligibility.
Sec. 164. Loan pooling.
Sec. 165. Alternative size standard.
Sec. 166. Alternative variable interest rate.
Sec. 167. Minority small business development.
Sec. 168. Lowering of fees.
Sec. 169. International trade loans.
Sec. 170. Rural lending outreach program.
     Subtitle D--Certified Development Companies; 504 Loan Program

Sec. 181. Development company loan programs.
Sec. 182. Loan liquidations.
Sec. 183. Additional equity injections.
Sec. 184. Uniform leasing policy.
Sec. 185. Businesses in low-income communities.
Sec. 186. Combinations of certain goals.
Sec. 187. Refinancing under the local development business loan 
                            program.
Sec. 188. Technical correction.
Sec. 189. Definitions for the Small Business Investment Act of 1958.
Sec. 190. Repeal of sunset on reserve requirements for premier 
                            certified lenders.
Sec. 191. Certified development companies.
Sec. 192. Conforming amendments.
Sec. 193. Closing costs.
Sec. 194. Definition of rural.
Sec. 195. Regulations and effective date.
Sec. 196. Limitation on time for final approval of companies.
Sec. 197. Child care lending pilot program.
Sec. 198. Debenture repayment.
Sec. 199. Real estate appraisals.
                TITLE II--SMALL BUSINESS VENTURE CAPITAL

         Subtitle A--Small Business Investment Company Program

Sec. 221. Reauthorization.
Sec. 222. Leverage.
Sec. 223. Investments in smaller enterprises.
Sec. 224. Maximum investment in a company.
            Subtitle B--New Markets Venture Capital Program

Sec. 241. Diversification of New Markets Venture Capital Program.
Sec. 242. Establishment of Office of New Markets Venture Capital.
Sec. 243. Low-income geographic areas.
Sec. 244. Applications for New Markets Venture Capital Program.
Sec. 245. Operational assistance grants.
Sec. 246. Authorization.
         TITLE III--SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT

                      Subtitle A--Reauthorization

Sec. 301. Reauthorization.
         Subtitle B--Women's Small Business Ownership Programs

Sec. 311. Office of Women's Business Ownership.
Sec. 312. Women's Business Center Program.
Sec. 313. National Women's Business Council.
Sec. 314. Interagency Committee on Women's Business Enterprise.
Sec. 315. Preserving the independence of the National Women's Business 
                            Council.
Sec. 316. Study and report on women's business centers.
                    Subtitle C--International Trade

Sec. 321. Small Business Administration Associate Administrator for 
                            International Trade.
Sec. 322. Office of International Trade.
     Subtitle D--Native American Small Business Development Program

Sec. 331. Short title.
Sec. 332. Native American Small Business Development Program.
Sec. 333. Pilot programs.
       Subtitle E--National Small Business Regulatory Assistance

Sec. 341. Short title.
Sec. 342. Purpose.
Sec. 343. Small Business Regulatory Assistance Pilot Program.
Sec. 344. Rulemaking.
                      Subtitle F--Other Provisions

Sec. 351. Minority Entrepreneurship and Innovation Pilot Program.
Sec. 352. Institutions of higher education.
Sec. 353. Health insurance options information for small business 
                            concerns.
Sec. 354. National Small Business Development Center Advisory Board.
Sec. 355. Office of Native American Affairs pilot program.
Sec. 356. Privacy requirements for SCORE chapters.
Sec. 357. National small business summit.
Sec. 358. SCORE program.
                       TITLE IV--LENDER OVERSIGHT

Sec. 401. Findings.
Sec. 402. Definitions.
Sec. 403. Authority.
Sec. 404. Portfolio quality evaluation standards.
Sec. 405. Default rate.
Sec. 406. Computer modeling.
Sec. 407. Economic performance evaluation measurements.
Sec. 408. Privacy.
Sec. 409. Executive compensation.
Sec. 410. Study and report on examination and review fees.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``504 Loan Program'' means the program to 
        provide financing to small business concerns by guarantees of 
        loans under title V of the Small Business Investment Act of 
        1958 (15 U.S.C. 695 et seq.), which are funded by debentures 
        guaranteed by the Administrator;
            (3) the term ``low-income geographic area'' has the meaning 
        given that term in section 351 of the Small Business Investment 
        Act of 1958 (15 U.S.C. 689), as amended by this Act;
            (4) the term ``New Markets Venture Capital company'' has 
        the meaning given that term in section 351 of the Small 
        Business Investment Act of 1958 (15 U.S.C. 689);
            (5) the term ``New Markets Venture Capital Program'' means 
        the program under part B of title III of the Small Business 
        Investment Act of 1958 (15 U.S.C. 689 et seq.); and
            (6) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632).

                    TITLE I--SMALL BUSINESS LENDING

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended--
            (1) by redesignating subsection (j) as subsection (f); and
            (2) by adding at the end the following:
    ``(g) Microloan.--For each of fiscal years 2008 through 2010, the 
Administration is authorized to make, as provided in section 7(m)--
            ``(1) $80,000,000 in technical assistance grants;
            ``(2) $110,000,000 in direct loans; and
            ``(3) $50,000,000 in deferred participation loans.
    ``(h) General Business Loans.--The Administration is authorized to 
make, as provided in section 7(a)--
            ``(1) $19,000,000,000 in general business loans in fiscal 
        year 2008;
            ``(2) $20,000,000,000 in general business loans in fiscal 
        year 2009; and
            ``(3) $21,000,000,000 in general business loans in fiscal 
        year 2010.
    ``(i) Certified Development Company Financings.--The Administration 
is authorized to make, as provided in section 7(a)(13) and as provided 
in section 504 of the Small Business Investment Act of 1958 (15 U.S.C. 
697a)--
            ``(1) $8,500,000,000 in certified development company 
        financings in fiscal year 2008;
            ``(2) $9,000,000,000 in certified development company 
        financings in fiscal year 2009; and
            ``(3) $9,500,000,000 in certified development company 
        financings in fiscal year 2010.
    ``(j) Department of Defense.--For each of fiscal years 2008 through 
2010, the Administration is authorized to make $500,000,000 in loans as 
provided in section 7(a)(21).
    ``(k) Prime Program.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Administrator $15,000,000 for each of fiscal years 2008 
        through 2010 to carry out section 37, which shall remain 
        available until expended.
            ``(2) Certain programs.--In addition to the amount 
        authorized under paragraph (1), there are authorized to be 
        appropriated to the Administrator $2,000,000 each of fiscal 
        years 2008 through 2010 to carry out section 37(c)(4), which 
        shall remain available until expended.
    ``(l) Additional Authorizations and Limitations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Administration for each of fiscal years 2008 through 
        2010 such sums as may be necessary to carry out the provisions 
        of this Act not elsewhere provided for, including 
        administrative expenses and necessary loan capital for disaster 
        loans pursuant to section 7(b), and to carry out the Small 
        Business Investment Act of 1958, including salaries and 
        expenses of the Administration.
            ``(2) Limitations.--Notwithstanding any other provision of 
        this section, for each of fiscal years 2008 through 2010--
                    ``(A) no funds are authorized to be used as loan 
                capital for the loan program authorized by section 
                7(a)(21) in any such fiscal year, except by transfer 
                from another Federal department or agency to the 
                Administration, unless the program level authorized for 
                general business loans under subsection (h) is fully 
                funded for that fiscal year; and
                    ``(B) the Administration may not approve loans on 
                its own behalf or on behalf of any other Federal 
                department or agency, by contract or otherwise, under 
                terms and conditions other than those specifically 
                authorized under this Act or the Small Business 
                Investment Act of 1958, except that it may approve 
                loans under section 7(a)(21) of this Act in gross 
                amounts of not more than $2,000,000.''.

                     Subtitle A--Microloan Programs

SEC. 121. CONFORMING TECHNICAL CHANGE IN AVERAGE SMALLER LOAN SIZE.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) in paragraph (3)(F)(iii), by striking ``$7,500'' and 
        inserting ``$10,000''; and
            (2) in paragraph (6)(C), by striking ``$7,500'' each place 
        that term appears and inserting ``$10,000''.

SEC. 122. INCLUSION OF PERSONS WITH DISABILITIES.

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

SEC. 123. MICROLOAN PROGRAM IMPROVEMENTS.

    (a) Intermediary Eligibility Requirements.--Section 7(m)(2) of the 
Small Business Act (15 U.S.C. 636(m)(2)) is amended--
            (1) in subparagraph (A), by striking ``in paragraph (10); 
        and'' and inserting ``of the term `intermediary' under 
        paragraph (11);''; and
            (2) in subparagraph (B)--
                    (A) by striking ``(B) has at least'' and inserting 
                the following:
                    ``(B) has--
                            ``(i) at least''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; or
                            ``(ii) a full-time employee who has not 
                        less than 3 years experience making microloans 
                        to startup, newly established, or growing small 
                        business concerns; and
                    ``(C) has at least 1 year experience providing, as 
                an integral part of its microloan program, intensive 
                marketing, management, and technical assistance to its 
                borrowers.''.
    (b) Limitation on Third Party Technical Assistance.--Section 
7(m)(4)(E)(ii) of the Small Business Act (15 U.S.C. 636(m)(4)(E)(ii)) 
is amended--
            (1) in the clause heading, by striking ``Technical 
        assistance'' and inserting ``Third party technical 
        assistance''; and
            (2) by striking ``25 percent'' and inserting ``30 
        percent''.
    (c) Increased Flexibility for Providing Technical Assistance to 
Potential Borrowers.--Section 7(m)(4)(E)(i) of the Small Business Act 
(15 U.S.C. 636(m)(4)(E)(i)) is amended by striking ``25 percent'' and 
inserting ``30 percent''.

SEC. 124. PRIME REAUTHORIZATION AND TRANSFER TO THE SMALL BUSINESS ACT.

    (a) Program Reauthorization.--The Small Business Act (15 U.S.C. 631 
et seq.) is amended--
            (1) by redesignating section 37 as section 40; and
            (2) by inserting after section 36 the following:

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

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

SEC. 125. REPORT TO CONGRESS ON THE MICROLOAN PROGRAM.

    Section 7(m)(10) of the Small Business Act (15 U.S.C. 638(m)(10)) 
is amended to read as follows:
            ``(10) Report to congress on the microloan program.--
                    ``(A) In general.--Not later than 6 months after 
                the date of enactment of the SBA Reauthorization and 
                Improvement Act of 2008, the Comptroller General of the 
                United States 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 which includes--
                            ``(i) an analysis of the effectiveness of 
                        the Microloan Program and the microloan 
                        technical assistance program;
                            ``(ii) a description of the loan portfolio 
                        of each intermediary, including the extent to 
                        which it provides microloans to small business 
                        concerns in rural areas;
                            ``(iii) the numbers and amounts of 
                        microloans made by the intermediaries to small 
                        business concern borrowers;
                            ``(iv) an accurate measure of the cost of 
                        the microloan and microloan technical 
                        assistance programs; and
                            ``(v) any recommendations for legislative 
                        changes that would improve the program 
                        operations.
                    ``(B) Considerations and consultations.--In 
                developing the report required by subparagraph (A), the 
                Comptroller General shall consult with the microloan 
                intermediaries, the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives, and 
                other appropriate industry members, and shall allow for 
                industry comment.''.

             Subtitle B--Intermediary Lending Pilot Program

SEC. 141. FINDINGS.

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

SEC. 142. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended by inserting after subsection (k) the following:
    ``(l) Small Business Intermediary Lending Program.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `intermediary' means a private, 
                nonprofit entity that seeks to borrow, or has borrowed, 
                funds from the Administration to provide midsize loans 
                to small business concerns under this subsection, 
                including--
                            ``(i) a private, nonprofit community 
                        development corporation;
                            ``(ii) a consortium of private, nonprofit 
                        organizations or nonprofit community 
                        development corporations;
                            ``(iii) a quasi-governmental economic 
                        development entity (such as a planning and 
                        development district), other than a State, 
                        county, or municipal government; and
                            ``(iv) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government; and
                    ``(B) the term `midsize loan' means a fixed rate 
                loan of not less than $35,000 and not more than 
                $200,000, made by an intermediary to a startup, newly 
                established, or growing small business concern.
            ``(2) Establishment.--There is established a 3-year pilot 
        program to be know as the `Small Business Intermediary Lending 
        Pilot Program' (referred to in this subsection as the 
        `Program'), under which the Administrator may provide direct 
        loans to eligible intermediaries, for the purpose of making 
        fixed interest rate midsize loans to startup, newly 
        established, and growing small business concerns.
            ``(3) Purposes.--The purposes of the Program are--
                    ``(A) to assist small business concerns in those 
                areas suffering from a lack of credit due to poor 
                economic conditions;
                    ``(B) to create employment opportunities for low-
                income individuals;
                    ``(C) to establish a midsize loan program to be 
                administered by the Administrator to provide loans to 
                eligible intermediaries to enable such intermediaries 
                to provide midsize loans, particularly loans in amounts 
                averaging not more than $150,000, to startup, newly 
                established, or growing small business concerns for 
                working capital or the acquisition of materials, 
                supplies, or equipment;
                    ``(D) to test the effectiveness of nonprofit 
                intermediaries--
                            ``(i) as a delivery system for a midsize 
                        loan program; and
                            ``(ii) in addressing the credit needs of 
                        small business concerns and leveraging other 
                        sources of credit; and
                    ``(E) to determine the advisability and feasibility 
                of implementing a midsize loan program nationwide.
            ``(4) Eligibility for participation.--An intermediary shall 
        be eligible to receive loans under the Program if the 
        intermediary has not less than 1 year of experience making 
        loans to startup, newly established, or growing small business 
        concerns.
            ``(5) Loans to intermediaries.--
                    ``(A) Application.--Each intermediary desiring a 
                loan under this subsection shall submit an application 
                to the Administrator that describes--
                            ``(i) the type of small business concerns 
                        to be assisted;
                            ``(ii) the size and range of loans to be 
                        made;
                            ``(iii) the geographic area to be served 
                        and its economic, poverty, and unemployment 
                        characteristics;
                            ``(iv) the status of small business 
                        concerns in the area to be served and an 
                        analysis of the availability of credit; and
                            ``(v) the qualifications of the applicant 
                        to carry out this subsection.
                    ``(B) Loan limits.--Notwithstanding subsection 
                (a)(3), no loan may be made to an intermediary under 
                this subsection if the total amount outstanding and 
                committed to the intermediary from the business loan 
                and investment fund established by this Act would, as a 
                result of such loan, exceed $1,000,000 during the 
                participation of the intermediary in the Program.
                    ``(C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be for a 
                maximum term of 20 years.
                    ``(D) Applicable interest rates.--Loans made by the 
                Administrator to an intermediary under the Program 
                shall bear an annual interest rate equal to 1.00 
                percent.
                    ``(E) Fees; collateral.--The Administrator may not 
                charge any fees or require collateral with respect to 
                any loan made to an intermediary under this subsection.
                    ``(F) Leverage.--Any loan to a small business 
                concern under this subsection shall not exceed 75 
                percent of the total cost of the project funded by such 
                loan, with the remaining funds being leveraged from 
                other sources, including--
                            ``(i) banks or credit unions;
                            ``(ii) community development financial 
                        institutions; and
                            ``(iii) other sources with funds available 
                        to the intermediary lender.
                    ``(G) Delayed payments.--The Administrator shall 
                not require the repayment of principal or interest on a 
                loan made to an intermediary under the Program during 
                the first 2 years of the loan.
            ``(6) Program funding for midsize loans.--
                    ``(A) Number of participants.--Under the Program, 
                the Administrator may provide loans, on a competitive 
                basis, to not more than 20 intermediaries.
                    ``(B) Equitable distribution of intermediaries.--
                The Administrator shall select and provide funding 
                under the Program to such intermediaries as will ensure 
                geographic diversity and representation of urban and 
                rural communities.
            ``(7) Report to congress.--
                    ``(A) Annual report.--Not later than 12 months 
                after the date of enactment of the SBA Reauthorization 
                and Improvement Act of 2008, and annually thereafter, 
                the Administrator shall submit a report containing an 
                evaluation of the effectiveness of the Program to--
                            ``(i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            ``(ii) the Committee on Small Business of 
                        the House of Representatives.
                    ``(B) Contents.--Each report submitted under 
                subparagraph (A) shall include, for the 12-month period 
                before the date of that report--
                            ``(i) the numbers and locations of the 
                        intermediaries receiving funds to provide 
                        midsize loans;
                            ``(ii) the amounts of each loan to an 
                        intermediary;
                            ``(iii) the numbers and amounts of midsize 
                        loans made by intermediaries to small business 
                        concerns;
                            ``(iv) the repayment history of each 
                        intermediary;
                            ``(v) a description of the loan portfolio 
                        of each intermediary, including the extent to 
                        which it provides midsize loans to small 
                        business concerns in rural and economically 
                        depressed areas;
                            ``(vi) an estimate of the number of low-
                        income individuals who have been employed as a 
                        direct result of the Program; and
                            ``(vii) any recommendations for legislative 
                        changes that would improve the operation of the 
                        Program.
            ``(8) Termination.--The authority to make loans under this 
        subsection shall terminate 3 years after the date of enactment 
        of the SBA Reauthorization and Improvement Act of 2008.''.
    (b) Rulemaking Authority.--Not later than 180 days after the date 
of enactment of this Act, the Administrator shall issue regulations to 
carry out section 7(l) of the Small Business Act, as added by 
subsection (a).
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Administrator such sums as may be necessary for each of 
        fiscal years 2008 through 2010 to provide $20,000,000 in loans 
        under section 7(l) of the Small Business Act, as added by 
        subsection (a).
            (2) Availability.--Any amounts appropriated pursuant to 
        paragraph (1) shall remain available until expended.

                     Subtitle C--7(a) Loan Program

SEC. 161. PREFERRED LENDERS PROGRAM.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) by redesignating paragraph (32) relating to increased 
        veteran participation, as added by section 208 of the Military 
        Reservist and Veteran Small Business Reauthorization and 
        Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 631), as 
        paragraph (33); and
            (2) by adding at the end the following:
            ``(34) Preferred lenders program.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `national preferred lender' 
                        means a preferred lender authorized to operate 
                        in any area served by an office of the 
                        Administration under subparagraph (G);
                            ``(ii) the term `preferred lender' means a 
                        qualified lender participating in the program;
                            ``(iii) the term `program' means the 
                        Preferred Lenders Program established under 
                        subparagraph (B); and
                            ``(iv) the term `qualified lender' means a 
                        lender that demonstrates--
                                    ``(I) knowledge of and proficiency 
                                in the requirements of the program 
                                under this subsection;
                                    ``(II) the ability to process, 
                                close, service, and liquidate loans;
                                    ``(III) the ability to develop and 
                                analyze complete loan packages; and
                                    ``(IV) a satisfactory performance 
                                history of participation in the program 
                                under this subsection.
                    ``(B) Establishment.--There is established a 
                Preferred Lenders Program under which the Administrator 
                may authorize qualified lenders to make and service 
                loans.
                    ``(C) Application.--A qualified lender desiring to 
                participate in the program shall submit an application 
                at such time, in such manner, and accompanied by such 
                information as the Administrator shall establish.
                    ``(D) Delegated authority.--The Administrator shall 
                authorize a preferred lender to take actions relating 
                to loan servicing on behalf of the Administrator, 
                including--
                            ``(i) determining eligibility and 
                        creditworthiness and loan monitoring, 
                        collection, and liquidation;
                            ``(ii) authority to make and close loans 
                        with a guarantee from the Administrator without 
                        obtaining the prior specific approval of the 
                        Administrator; and
                            ``(iii) authority to service and liquidate 
                        such loans without obtaining the prior specific 
                        approval of the Administrator for routine 
                        servicing and liquidation activities.
                    ``(E) Area of operations.--The Administrator shall 
                designate the area for which a preferred lender may 
                exercise the authority under subparagraph (D).
                    ``(F) Conflict.--A preferred lender shall not take 
                any action creating an actual or apparent conflict of 
                interest.
                    ``(G) National operation.--
                            ``(i) In general.--A preferred lender may 
                        request designation as a national preferred 
                        lender by the Administrator, and, upon such 
                        designation, shall have the authority to 
                        operate in any area served by an office of the 
                        Administration.
                            ``(ii) Eligibility.--The Administration 
                        shall designate a preferred lender as a 
                        national preferred lender if the Administrator 
                        determines that preferred lender has--
                                    ``(I) satisfactorily operated as a 
                                preferred lender in areas encompassing 
                                all or part of the territory in not 
                                fewer than 5 district offices of the 
                                Administration for a minimum of 3 years 
                                in each territory;
                                    ``(II) centralized loan approval, 
                                servicing, and liquidation functions 
                                and processes that are satisfactory to 
                                the Administration;
                                    ``(III) uniform written policies 
                                and procedures;
                                    ``(IV) a currency rate that is not 
                                less than the Administration's national 
                                average currency rate for all loans 
                                under this subsection;
                                    ``(V) a currency rate for loans 
                                made under this subsection that is not 
                                less than the Administration's national 
                                average currency rate for loans made 
                                under this subsection;
                                    ``(VI) a default rate that is not 
                                more than the Administration's national 
                                average default rate for loans made 
                                under this subsection; and
                                    ``(VII) received, in the most 
                                recent audit and review as a preferred 
                                lender conducted by the Administrator, 
                                a rating that is acceptable or 
                                acceptable with corrective actions 
                                required.
                    ``(H) Corrective action.--If a national preferred 
                lender fails to continue to meet the eligibility 
                criteria under subparagraph (G)(ii), the Administrator 
                shall notify that national preferred lender of the 
                deficiency and allow a reasonable period of time for 
                that national preferred lender to meet such criteria.
                    ``(I) Suspension or revocation.--
                            ``(i) In general.--The designation of a 
                        lender as a national preferred lender shall be 
                        suspended or revoked at any time that the 
                        Administration determines that the lender--
                                    ``(I) is not adhering to the rules 
                                or regulations established by the 
                                Administrator for the program; or
                                    ``(II) has failed to continue to 
                                meet the eligibility criteria specified 
                                in paragraph (G) or take corrective 
                                action under subparagraph (H).
                            ``(ii) Effect.--A suspension or revocation 
                        under clause (i) shall not affect any 
                        outstanding guarantee of a national preferred 
                        lender.''.
    (b) Clerical Amendment.--Section 7(a)(2)(C) of the Small Business 
Act (15 U.S.C. 636(a)(2)(C)) is amended to read as follows:
                    ``(C) Interest rate under preferred lenders 
                program.--The maximum interest rate for a loan 
                guaranteed under the Preferred Lenders Program under 
                paragraph (34) shall not exceed the maximum interest 
                rate as determined by the Administration, applicable to 
                other loans guaranteed under this subsection.''.
    (c) Conforming Amendment.--Section 7(a)(19) of the Small Business 
Act (15 U.S.C. 636(a)(19)) is amended by striking ``the proviso in 
section 5(b)(7)'' and inserting ``paragraph (34)''.

SEC. 162. MAXIMUM LOAN AMOUNT.

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

SEC. 163. MAXIMUM 504 AND 7(A) LOAN ELIGIBILITY.

    (a) Combination Financing.--
            (1) In general.--Section 502(2) of the Small Business 
        Investment Act of 1958 (15 U.S.C. 696(2)) is amended by adding 
        at the end the following:
                    ``(C) Combination financing under small business 
                act.--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.''.
            (2) Conforming amendment.--Section 7(a)(1) of the Small 
        Business Act (15 U.S.C. 636(a)(1)) is amended by adding at the 
        end the following:
                    ``(C) Combination financing under small business 
                investment act of 1958.--Financing under this 
                subsection may be provided to a borrower in the maximum 
                amount as provided in subsection (b)(2) of section 502 
                of the Small Business Investment Act of 1958 (15 U.S.C. 
                696).''.
    (b) Reporting.--Not later than 90 days after the date of enactment 
of this Act, and annually thereafter, 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 that--
            (1) includes the number of small business concerns that 
        have financings under both section 7(a) of the Small Business 
        Act (15 U.S.C. 636(a)) and title V of the Small Business 
        Investment Act of 1958 (15 U.S.C. 695 et seq.) during the year 
        before the year of that report; and
            (2) describes the total amount and general performance of 
        the financings described in paragraph (1).

SEC. 164. LOAN POOLING.

    Section 5(g)(1) of the Small Business Act (15 U.S.C. 634(g)(1)) is 
amended--
            (1) by inserting ``(A)'' before ``The Administration'';
            (2) by striking the colon and all that follows and 
        inserting a period; and
            (3) by adding at the end the following:
    ``(B) A trust certificate issued under subparagraph (A) shall be 
based on, and backed by, a trust or pool approved by the Administrator 
and composed solely of the guaranteed portion of such loans.
    ``(C) The interest rate on a trust certificate issued under 
subparagraph (A) shall be either--
            ``(i) the lowest interest rate on any individual loan in 
        the pool; or
            ``(ii) the weighted average interest rate of all loans in 
        the pool, subject to such limited variations in loan 
        characteristics as the Administrator determines appropriate to 
        enhance marketability of the pool certificates.''.

SEC. 165. ALTERNATIVE SIZE STANDARD.

    Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
amended by adding at the end the following:
    ``(5) Optional Size Standard.--
            ``(A) In general.--The Administrator shall establish an 
        optional size standard for business loan applicants under 
        section 7(a) and development company loan applicants under 
        title V of the Small Business Investment Act of 1958, which 
        uses maximum tangible net worth and average net income as an 
        alternative to the use of industry standards.
            ``(B) Interim rule.--Until the date on which the optional 
        size standards established under subparagraph (A) are in 
        effect, the alternative size standard in section 121.301(b) of 
        title 13, Code of Federal Regulations, or any successor 
        thereto, may be used by business loan applicants under section 
        7(a) and development company loan applicants under title V of 
        the Small Business Investment Act of 1958.''.

SEC. 166. ALTERNATIVE VARIABLE INTEREST RATE.

    (a) In General.--Section 7(a)(4)(A) of the Small Business Act (15 
U.S.C. 636(a)(4)(A)) is amended by striking ``prescribed by the 
Administration,'' and inserting: ``prescribed by the Administration, 
including, on variable rate loans, a nationally recognized prime rate 
of interest and at least 1 other index as an alternative thereto at the 
option of the participating lender,''.
    (b) Applicability.--Not later than 180 days after the date of 
enactment of this Act, the Administrator of the Small Business 
Administration shall select not less than 1 alternative index under 
section 7(a)(4)(A) of the Small Business Act, as amended by subsection 
(a), and make such index available for use by participating lenders.

SEC. 167. MINORITY SMALL BUSINESS DEVELOPMENT.

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

``SEC. 38. MINORITY SMALL BUSINESS DEVELOPMENT.

    ``(a) Office of Minority Small Business Development.--There is 
established in the Administration an Office of Minority Small Business 
Development, which shall be administered by the Associate Administrator 
for Minority Small Business Development (in this section referred to as 
the `Associate Administrator') appointed under section 4(b)(1).
    ``(b) Associate Administrator for Minority Small Business 
Development.--The Associate Administrator--
            ``(1) shall be either--
                    ``(A) an appointee in the Senior Executive Service 
                who is a career appointee; or
                    ``(B) an employee in the competitive service;
            ``(2) shall be responsible for the formulation, execution, 
        and promotion of policies and programs of the Administration 
        that provide assistance to small business concerns owned and 
        controlled by minorities;
            ``(3) shall act as an ombudsman for full consideration of 
        minorities in all programs of the Administration (including 
        those under sections 7(j) and 8(a));
            ``(4) shall work with the Associate Deputy Administrator 
        for Capital Access to increase the proportion of loans and loan 
        dollars, and investments and investment dollars, going to 
        minorities through the finance programs under this Act and the 
        Small Business Investment Act of 1958 (including subsections 
        (a), (b), and (m) of section 7 of this Act and the programs 
        under part A and B of title III and title V of the Small 
        Business Investment Act of 1958);
            ``(5) shall work with the Associate Deputy Administrator 
        for Entrepreneurial Development to increase the proportion of 
        counseling and training that goes to minorities through the 
        entrepreneurial development programs of the Administration;
            ``(6) shall work with the Associate Deputy Administrator 
        for Government Contracting and Minority Enterprise Development 
        to increase the proportion of contracts, including through the 
        Small Business Innovation Research Program and the Small 
        Business Technology Transfer Program, to minorities;
            ``(7) shall work with the partners of the Administration, 
        trade associations, and business groups to identify and carry 
        out policies and procedures to more effectively market the 
        resources of the Administration to minorities;
            ``(8) shall work with the Office of Field Operations to 
        ensure that district offices and regional offices have adequate 
        staff, funding, and other resources to market the programs of 
        the Administration to meet the objectives described in 
        paragraphs (4) through (7); and
            ``(9) shall report to and be responsible directly to the 
        Administrator.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $5,000,000 for fiscal year 2008;
            ``(2) $5,000,000 for fiscal year 2009; and
            ``(3) $5,000,000 for fiscal year 2010.''.
    (b) Conforming Amendments.--Section 4(b)(1) of the Small Business 
Act (15 U.S.C. 633(b)(1)) is amended in sixth sentence, by striking 
``Minority Small Business and Capital Ownership Development'' and all 
that follows through the end of the sentence and inserting ``Minority 
Small Business Development.''.

SEC. 168. LOWERING OF FEES.

    Section 7(a)(23) of the Small Business Act (15 U.S.C. 636(a)(23)) 
is amended by striking subparagraph (C) and inserting the following:
                    ``(C) Lowering of fees.--
                            ``(i) In general.--Subject to clause (ii), 
                        for loan guarantees made or approved in each 
                        full fiscal year after the date of enactment of 
                        the SBA Reauthorization and Improvement Act of 
                        2008, if the fees paid by all small business 
                        borrowers and by lenders for guarantees under 
                        this subsection, or the sum of such fees plus 
                        any funds made available for the purpose of 
                        reducing fees for loans under this subsection, 
                        as applicable, is more than the amount 
                        necessary to equal the cost to the 
                        Administration of making such guarantees, the 
                        Administrator shall reduce fees paid by small 
                        business borrowers and lenders under clauses 
                        (i) through (iv) of paragraph (18)(A) and 
                        subparagraph (A) of this paragraph.
                            ``(ii) Maximum reduction.--A reduction in 
                        fees under clause (i) in any fiscal year may 
                        not exceed the average amount by which fees 
                        paid by all small business borrowers and by 
                        lenders for guarantees under this subsection 
                        exceeded the amount necessary to equal the cost 
                        to the Administration of making such guarantees 
                        during the 3 most recent fiscal years for which 
                        such information is available before that 
                        fiscal year.
                            ``(iii) Maximum fees.--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).''.

SEC. 169. INTERNATIONAL TRADE LOANS.

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

SEC. 170. RURAL LENDING OUTREACH PROGRAM.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as 
amended by this Act, is amended--
            (1) by striking paragraph (25)(C); and
            (2) by adding at the end the following:
            ``(35) Rural lending outreach program.--
                    ``(A) In general.--The Administrator shall carry 
                out a rural lending outreach program to provide not 
                more than an 85 percent guaranty for loans of not more 
                than $250,000. The program shall be carried out only 
                through lenders located in rural areas (as the term 
                `rural' is defined in section 501(f) of the Small 
                Business Investment Act of 1958 (15 U.S.C. 695(f))).
                    ``(B) Loan terms.--For a loan made through the 
                program under this paragraph--
                            ``(i) the Administrator shall approve or 
                        disapprove the loan within 36 hours of the time 
                        the Administrator receives the application;
                            ``(ii) the program shall use abbreviated 
                        application and documentation requirements; and
                            ``(iii) minimum credit standards, as the 
                        Administrator considers necessary to limit the 
                        rate of default on loans made under the 
                        program, shall apply.''.

     Subtitle D--Certified Development Companies; 504 Loan Program

SEC. 181. DEVELOPMENT COMPANY LOAN PROGRAMS.

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

``SEC. 511. PROGRAM TITLE.

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

SEC. 182. LOAN LIQUIDATIONS.

    Section 510 of the Small Business Investment Act of 1958 (15 U.S.C. 
697g) is amended--
            (1) by redesignating subsection (e) as subsection (g); and
            (2) by inserting after subsection (d) the following:
    ``(e) Participation.--
            ``(1) In general.--Any qualified State or local development 
        company which elects not to apply for authority to foreclose 
        and liquidate defaulted loans under this section, or which the 
        Administrator determines to be ineligible for such authority, 
        shall contract with a qualified third-party to perform 
        foreclosure and liquidation of defaulted loans in its 
        portfolio. The contract shall be contingent upon approval by 
        the Administrator with respect to the qualifications of the 
        contractor and the terms and conditions of liquidation 
        activities.
            ``(2) Commencement.--This subsection does not require any 
        development company to liquidate defaulted loans until the 
        Administrator has adopted and implemented a program to 
        compensate and reimburse development companies, as provided 
        under subsection (f).
    ``(f) Compensation and Reimbursement.--
            ``(1) Reimbursement of expenses.--The Administrator shall 
        reimburse each qualified State or local development company for 
        all expenses paid by such company as part of the foreclosure 
        and liquidation activities, if the expenses--
                    ``(A) were--
                            ``(i) approved in advance by the 
                        Administrator, either specifically or 
                        generally; or
                            ``(ii) 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; and
                    ``(B) are submitted by the development company to 
                the Administrator not later than 3 years after the date 
                of the purchase of the debenture by the Administrator.
            ``(2) Compensation for results.--
                    ``(A) Development.--The Administrator shall develop 
                a schedule to compensate and provide an incentive to 
                qualified State or local development companies that 
                foreclose and liquidate defaulted loans.
                    ``(B) Criteria.--The schedule required under this 
                paragraph shall--
                            ``(i) be based on a percentage of the net 
                        amount recovered, but shall not exceed a 
                        maximum amount; and
                            ``(ii) not apply to any foreclosure which 
                        is conducted under a contract between a 
                        development company and a qualified third party 
                        to perform the foreclosure and liquidation.''.

SEC. 183. ADDITIONAL EQUITY INJECTIONS.

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

SEC. 184. UNIFORM LEASING POLICY.

    (a) In General.--Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended--
            (1) by striking paragraphs (4) and (5) and inserting the 
        following:
            ``(4) Limitation on leasing.--If the use of a loan under 
        this section includes the acquisition of a facility or the 
        construction of a new facility, the small business concern 
        assisted--
                    ``(A) shall permanently occupy and use not less 
                than a total of 50 percent of the space in the 
                facility; and
                    ``(B) may, on a temporary or permanent basis, lease 
                to others not more than 50 percent of the space in the 
                facility.''; and
            (2) by redesignating paragraph (6) as paragraph (5).
    (b) Policy for 7(a) Loans.--Section 7(a)(28) of the Small Business 
Act (15 U.S.C. 636(a)(28)) is amended to read as follows:
            ``(28) Limitation on leasing.--If the use of a loan under 
        this subsection includes the acquisition of a facility or the 
        construction of a new facility, the small business concern 
        assisted--
                    ``(A) shall permanently occupy and use not less 
                than a total of 50 percent of the space in the 
                facility; and
                    ``(B) may, on a temporary or permanent basis, lease 
                to others not more than 50 percent of the space in the 
                facility.''.

SEC. 185. BUSINESSES IN LOW-INCOME COMMUNITIES.

    (a) Goals.--Section 501(d)(3)(A) of the Small Business Investment 
Act of 1958 (15 U.S.C. 695(d)(3)(A)) is amended by inserting after 
``business district revitalization,'' the following: ``or expansion of 
businesses in low-income communities which would be eligible for a new 
markets tax credit under section 45D(a) of the Internal Revenue Code of 
1986, or implementing regulations issued under that section,''.
    (b) Additional Incentives.--Section 502 of the Small Business 
Investment Act of 1958 (15 U.S.C. 696), as amended by this Act, is 
amended by adding at the end the following:
            ``(6) Low-income communities.--
                    ``(A) Loan amount.--Notwithstanding paragraph 
                (2)(A)(ii), a loan under this section for use in a low-
                income community (as that term is used in section 
                501(d)(3)(A)) may be for not more than $4,000,000.
                    ``(B) Size standards.--For purposes of determining 
                eligibility for a loan under this section for use in a 
                low-income community (as that term is used in section 
                501(d)(3)(A)), the size standards established under 
                section 3 of the Small Business Act (15 U.S.C. 632) 
                shall be increased by 25 percent.
                    ``(C) Personal liquidity.--
                            ``(i) In general.--For any loan under this 
                        section for use in a low-income community (as 
                        that term is used in section 501(d)(3)(A)), the 
                        amount of personal resources of an owner that 
                        are excluded from the amount required to be 
                        provided to reduce the portion of the project 
                        funded by the Administration shall be not less 
                        than 25 percent more than that required for 
                        other loans under this section.
                            ``(ii) Definition.--In this subparagraph, 
                        the term `owner' means any person that owns not 
                        less than 20 percent of the equity of the small 
                        business concern applying for the applicable 
                        loan.''.

SEC. 186. COMBINATIONS OF CERTAIN GOALS.

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

SEC. 187. REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS LOAN 
              PROGRAM.

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

SEC. 188. TECHNICAL CORRECTION.

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

SEC. 189. DEFINITIONS FOR THE SMALL BUSINESS INVESTMENT ACT OF 1958.

    Section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 
662) is amended--
            (1) by striking paragraph (6) and inserting the following:
            ``(6) the term `development company' means an entity 
        incorporated under State law with the authority to promote and 
        assist the growth and development of small business concerns in 
        the areas in which it is authorized to operate by the 
        Administrator;'';
            (2) in paragraph (18), by striking ``and'' at the end;
            (3) in paragraph (19), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(20) the term `certified development company' means a 
        development company that the Administrator has certified meets 
        the criteria of section 506.''.

SEC. 190. REPEAL OF SUNSET ON RESERVE REQUIREMENTS FOR PREMIER 
              CERTIFIED LENDERS.

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

SEC. 191. CERTIFIED DEVELOPMENT COMPANIES.

    Section 506 of the Small Business Investment Act of 1958 (15 U.S.C. 
697c) is amended--
            (1) in the section heading, by striking ``restrictions on 
        development company assistance'' and inserting ``certified 
        development companies''; and
            (2) by inserting before ``Notwithstanding any other 
        provision of law'' the following:
    ``(a) Authority to Issue Debentures.--A development company may 
issue debentures under this title if the Administrator certifies that 
the company meets the following criteria:
            ``(1) Size.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the development company shall be a 
                small business concern with fewer than 500 employees, 
                and shall not be under the control of any entity that 
                does not meet the size standards established by the 
                Administrator for a small business concern.
                    ``(B) Exception.--Any development company that was 
                certified by the Administrator before December 31, 
                2005, may continue to issue debentures under this 
                title.
            ``(2) Primary purpose.--The primary purpose of the 
        development company shall be to benefit the community by 
        fostering economic development to create and preserve jobs and 
        stimulate private investment.
            ``(3) Primary function.--A primary function of the 
        development company shall be to accomplish its purpose by 
        providing long-term financing to small business concerns under 
        the Local Development Business Loan Program. The development 
        company shall also provide or support other community and local 
        economic development activities to assist the community.
            ``(4) Nonprofit status.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the development company shall be a 
                nonprofit corporation.
                    ``(B) Exception.--A development company certified 
                by the Administrator before January 1, 1987, may 
                continue to issue debentures under this title and 
                retain its status as a for-profit enterprise.
            ``(5) Good standing.--The development company--
                    ``(A) shall be in good standing in the State in 
                which such company is incorporated and in any other 
                State in which it conducts business; and
                    ``(B) shall be in compliance with all laws, 
                including taxation requirements, in the State in which 
                such company is incorporated and in any other State in 
                which it conducts business.
            ``(6) Membership of development company.--There shall be--
                    ``(A) not fewer than 25 members of the development 
                company (or owners or stockholders, if the corporation 
                is a for-profit entity), none of whom may own or 
                control more than 10 percent of the voting membership 
                of the company; and
                    ``(B) at least 1 member of the development company 
                (none of whom is in a position to control the 
                development company) from each of the following:
                            ``(i) Government organizations that are 
                        responsible for economic development.
                            ``(ii) Financial institutions that provide 
                        commercial long-term fixed asset financing.
                            ``(iii) Community organizations that are 
                        dedicated to economic development.
                            ``(iv) Businesses.
            ``(7) Board of directors.--
                    ``(A) In general.--The development company shall 
                have a board of directors.
                    ``(B) Members of board.--Each member of the board 
                of directors shall be--
                            ``(i) a member of the development company; 
                        and
                            ``(ii) elected by a majority of the members 
                        of the development company.
                    ``(C) Representation of organizations and 
                institutions.--
                            ``(i) In general.--There shall be at least 
                        1 member of the board of directors from not 
                        fewer than 3 of the 4 organizations and 
                        institutions described in paragraph (6)(B), 
                        none of whom is in a position to control the 
                        development company.
                            ``(ii) Maximum percentage.--Not more than 
                        50 percent of the members of the board of 
                        directors shall be from any 1 of the 
                        organizations and institutions described in 
                        paragraph (6)(B).
                    ``(D) Meetings.--The board of directors of the 
                development company shall meet on a regular basis to 
                make policy decisions for such company.
            ``(8) Professional management and staff.--
                    ``(A) In general.--The development company shall 
                have full-time professional management, including a 
                chief executive officer to manage daily operations and 
                a full-time professional staff qualified to market the 
                Local Development Business Loan Program and handle all 
                aspects of loan approval and servicing, including 
                liquidation, if appropriate.
                    ``(B) Independent management and operation.--Except 
                as provided in paragraph (9), the development company 
                shall be independently managed and operated to pursue 
                the economic development purpose of the company and 
                shall employ directly the chief executive officer.
            ``(9) Management and operation exceptions.--
                    ``(A) Affiliation.--A development company may be an 
                affiliate of another local nonprofit service 
                corporation (other than a development company), a 
                purpose of which is to support economic development in 
                the area in which the development company operates.
                    ``(B) Staffing.--A development company may satisfy 
                the requirement for full-time professional staff under 
                paragraph (8)(A) by contracting for the required 
                staffing with--
                            ``(i) a local nonprofit service 
                        corporation;
                            ``(ii) a nonprofit affiliate of a local 
                        nonprofit service corporation;
                            ``(iii) an entity wholly or partially 
                        operated by a governmental agency; or
                            ``(iv) another entity approved by the 
                        Administrator.
                    ``(C) Directors.--A development company and a local 
                nonprofit service corporation with which it is 
                affiliated may have in common some, but not all, 
                members of their respective board of directors.
                    ``(D) Rural areas.--A development company in a 
                rural area may satisfy the requirements of a full-time 
                professional staff and professional management ability 
                under paragraph (8)(A) by contracting for such services 
                with another certified development company that--
                            ``(i) has such staff and management 
                        ability; and
                            ``(ii) is located in the same State as the 
                        development company or in a State that is 
                        contiguous to the State in which the 
                        development company is located.
                    ``(E) Previously certified.--A development company 
                that, on or before December 31, 2005, was certified by 
                the Administrator and had contracted with a for-profit 
                company to provide staffing and management services, 
                may continue to do so.
    ``(b) Use of Excess Funds.--
            ``(1) In general.--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 used by the certified development 
        company for--
                    ``(A) operating reserves;
                    ``(B) expanding the area in which the certified 
                development company operates through the methods 
                authorized by this Act; or
                    ``(C) investment in other community and local 
                economic development activity or community development 
                primarily in the State from which such funds were 
                generated.
            ``(2) Reporting.--Not later than July 1, 2009, and every 
        year thereafter, the Administrator shall compile and submit to 
        Congress a report regarding the economic and community 
        development activities of each certified development company 
        during the fiscal year before the year of that report, other 
        than loans made under this title.
    ``(c) Ethical Requirements.--
            ``(1) In general.--A certified development company and the 
        officers, employees, and other staff of the company shall at 
        all times act ethically and avoid activities which constitute a 
        conflict of interest or appear to constitute a conflict of 
        interest.
            ``(2) Prohibited conflict in project loans.--
                    ``(A) In general.--No certified development company 
                may--
                            ``(i) recommend or approve a guarantee of a 
                        debenture by the Administrator under the Local 
                        Business Development Loan Program that is 
                        collateralized by a second lien position on the 
                        property being constructed or acquired; and
                            ``(ii) provide, or be affiliated with a 
                        corporation or other entity which provides, 
                        financing collateralized by a first lien on the 
                        same property.
                    ``(B) Exception.--During the 2-year period 
                beginning on the date of enactment of the SBA 
                Reauthorization and Improvement Act of 2008, a 
                certified development company that was participating as 
                a first mortgage lender for the Local Business 
                Development Loan Program in either of fiscal years 2004 
                or 2005 may continue to do so.
            ``(3) Other economic development activities.--It shall not 
        be a conflict of interest for a certified development company 
        to operate multiple programs to assist small business concerns 
        as part of carrying out its economic development purpose.
    ``(d) Multistate Operations.--
            ``(1) Authorization.--Notwithstanding any other provision 
        of law, the Administrator shall permit a certified development 
        company to make loans in any State that is contiguous to the 
        State of incorporation of that certified development company, 
        only if such company--
                    ``(A) is--
                            ``(i) an accredited lender under section 
                        507; or
                            ``(ii) a premier certified lender under 
                        section 508;
                    ``(B) has a membership that contains, from each of 
                the States in which it operates, not fewer than 25 
                members who reside in that State;
                    ``(C) has a board of directors that contains not 
                fewer than 2 members from each State in which the 
                company makes loans;
                    ``(D) maintains not fewer than 1 loan committee, 
                which shall have not fewer than 1 member from each 
                State in which the company makes loans; and
                    ``(E) submits to the Administrator, in writing--
                            ``(i) a notice of the intention of the 
                        company to make loans in multiple States;
                            ``(ii) the names of the States in which the 
                        company intends to make loans; and
                            ``(iii) a detailed statement of how the 
                        company will comply with this paragraph, 
                        including a list of the members described in 
                        subparagraph (B).
            ``(2) Review.--The Administrator shall verify whether a 
        certified development company satisfies the requirements of 
        paragraph (1) on an expedited basis and, not later than 30 days 
        after the date on which the Administrator receives the 
        statement described in paragraph (1)(E)(iii), the Administrator 
        shall determine whether such company satisfies such criteria 
        and provide notice to such company.
            ``(3) Loan committee participation.--For any loan made by a 
        company described in paragraph (1), not fewer than 1 member of 
        the loan committee from the State in which the loan is to be 
        made shall participate in the review of such loan.
            ``(4) Aggregate accounting.--A company described in 
        paragraph (1) may maintain an aggregate accounting of all 
        revenue and expenses of the company for purposes of this title.
            ``(5) Service to certified development companies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an associate of a certified 
                development company may not be an officer, director, or 
                manager of more than 1 certified development company.
                    ``(B) Exception.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, a person who is serving 
                        on the board of directors of a certified 
                        development company may serve on the board of 
                        directors, but not as an officer, of not more 
                        than 1 additional certified development 
                        company, if--
                                    ``(I) such companies are not 
                                located in the same State;
                                    ``(II) each board of directors 
                                determines that the service by such 
                                person on such board does not 
                                constitute a conflict of interest; and
                                    ``(III) there is not a contractual 
                                relationship between--
                                            ``(aa) the person and such 
                                        additional certified 
                                        development company, except for 
                                        the contract of such person to 
                                        serve as a member of the board 
                                        of directors of such company, 
                                        if any; or
                                            ``(bb) the certified 
                                        development companies of which 
                                        such person is a member of the 
                                        board of directors.
                            ``(ii) Maximum number of members.--A 
                        certified development company may not have more 
                        than 1 member of the board of directors of such 
                        company in common with any other board of 
                        directors of a certified development company.
                    ``(C) Definition.--As used in this paragraph, the 
                term `associate of a certified development company' has 
                the meaning given the term `Associate of a CDC' in 
                section 120.10 of title 13, Code of Federal Regulations 
                (or any corresponding similar regulation or ruling).
            ``(6) Local job creation requirements.--
                    ``(A) In general.--Subject to subparagraph (B), 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.
                    ``(B) Applicability.--This paragraph shall apply to 
                a certified development company relating to a State 
                beginning 2 years after the date that certified 
                development company began making loans in that State.
            ``(7) Contiguous states.--For purposes of this subsection, 
        the States of Alaska and Hawaii shall be deemed to be 
        contiguous to any State abutting the Pacific Ocean.
            ``(8) Local economic area requirement and exemption.--
                    ``(A) Definition.--In this paragraph, the term 
                `local economic area' means an area, as determined by 
                the Administrator, that--
                            ``(i) is in a State other than the State in 
                        which a development company is incorporated;
                            ``(ii) shares a border with the area of 
                        operations of the development company; and
                            ``(iii) is a part of a local trade area 
                        (including a city that is bisected by a State 
                        line and a metropolitan statistical area that 
                        is bisected by a State line) that is contiguous 
                        to the area of operations of the development 
                        company.
                    ``(B) Exemption.--An applicant operating in a local 
                economic area shall not be considered to be operating 
                in a multistate area, and shall not be required to 
                comply with the requirements for multistate operation.
    ``(e) Restrictions on Development Company Assistance.--''.

SEC. 192. CONFORMING AMENDMENTS.

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

SEC. 193. CLOSING COSTS.

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

SEC. 194. DEFINITION OF RURAL.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by adding at the end the following:
    ``(f) As used in this title, the term `rural' includes any area 
that is not--
            ``(1) a city or town that has a population greater than 
        50,000 inhabitants; or
            ``(2) the urbanized area contiguous and adjacent to a city 
        or town described in paragraph (1).''.

SEC. 195. REGULATIONS AND EFFECTIVE DATE.

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

SEC. 196. LIMITATION ON TIME FOR FINAL APPROVAL OF COMPANIES.

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

SEC. 197. CHILD CARE LENDING PILOT PROGRAM.

    (a) Child Care Lending Pilot Program.--Section 502 of the Small 
Business Investment Act of 1958 (15 U.S.C. 696), as amended by this 
Act, is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``The Administration'' and 
                inserting the following:
    ``(a) Authorization.--The Administration'';
                    (B) by striking ``and such loans'' and inserting 
                ``. Such loans'';
                    (C) by striking ``: Provided, however, That the 
                foregoing powers shall be subject to the following 
                restrictions and limitations:'' and inserting a period; 
                and
                    (D) by adding at the end the following:
    ``(b) Restrictions and Limitations.--The authority under subsection 
(a) shall be subject to the following restrictions and limitations:''; 
and
            (2) in subsection (b)(1), as so redesignated--
                    (A) by inserting after ``use of proceeds.--'' the 
                following:
                    ``(A) In general.--''; and
                    (B) by adding at the end the following:
                    ``(B) Loans to small, nonprofit child care 
                businesses.--
                            ``(i) In general.--Notwithstanding 
                        subsection (a), the proceeds of any loan 
                        described in subsection (a) may be used by the 
                        certified development company to assist a 
                        small, nonprofit child care business, if--
                                    ``(I) the loan is used for a sound 
                                business purpose that has been approved 
                                by the Administrator;
                                    ``(II) each such business meets all 
                                of the same eligibility requirements 
                                applicable to for-profit businesses 
                                under this title, except for status as 
                                a for-profit business;
                                    ``(III) 1 or more individuals has 
                                personally guaranteed the loan;
                                    ``(IV) each such business has clear 
                                and singular title to the collateral 
                                for the loan;
                                    ``(V) each such business has 
                                sufficient cash flow from its 
                                operations to meet its obligations on 
                                the loan and its normal and reasonable 
                                operating expenses; and
                                    ``(VI) each such business is 
                                located in Arkansas, Connecticut, 
                                Georgia, Indiana, Iowa, Louisiana, 
                                Maine, Maryland, Massachusetts, 
                                Michigan, Minnesota, Missouri, Montana, 
                                North Carolina, South Dakota, 
                                Tennessee, Washington, or Wyoming.
                            ``(ii) Limitation on volume.--Not more than 
                        7 percent of the total number of loans 
                        guaranteed in any fiscal year under this title 
                        may be awarded under this subparagraph.
                            ``(iii) Defined term.--For purposes of this 
                        subparagraph, the term `small, nonprofit child 
                        care business' means an establishment that--
                                    ``(I) is organized in accordance 
                                with section 501(c)(3) of the Internal 
                                Revenue Code of 1986;
                                    ``(II) is primarily engaged in 
                                providing child care for infants, 
                                toddlers, pre-school, or pre-
                                kindergarten children (or any 
                                combination thereof), and may provide 
                                care for older children when they are 
                                not in school, and may offer pre-
                                kindergarten educational programs;
                                    ``(III) including its affiliates, 
                                has tangible net worth that does not 
                                exceed $7,000,000, and has average net 
                                income (excluding any carryover losses) 
                                for the 2 completed fiscal years 
                                preceding the date of the application 
                                for assistance under this subparagraph 
                                that does not exceed $2,500,000; and
                                    ``(IV) is licensed as a child care 
                                provider by the State, insular area, or 
                                the District of Columbia, in which it 
                                is located.
                            ``(iv) Sunset provision.--This subparagraph 
                        shall cease to have effect on September 30, 
                        2010, 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, 
                        2010.''.
    (b) Reports.--
            (1) Small business administration.--
                    (A) In general.--Not later than 6 months after the 
                date of enactment of this Act, and every 6 months 
                thereafter until September 30, 2010, the Administrator 
                shall submit a report on the implementation of the 
                program under section 502(b)(1)(B) of the Small 
                Business Investment Act of 1958, as added by this Act, 
                to--
                            (i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            (ii) the Committee on Small Business of the 
                        House of Representatives.
                    (B) Contents.--Each report under subparagraph (A) 
                shall contain--
                            (i) the date on which the program is 
                        implemented;
                            (ii) the date on which the rules are issued 
                        under subsection (c); and
                            (iii) the number and dollar amount of loans 
                        under the program applied for, approved, and 
                        disbursed during the 6-month period ending on 
                        the date of that report--
                                    (I) with respect to nonprofit child 
                                care businesses; and
                                    (II) with respect to for-profit 
                                child care businesses.
            (2) Government accountability office.--
                    (A) In general.--Not later than March 31, 2010, the 
                Comptroller General of the United States shall submit a 
                report on the child care small business loans 
                authorized by section 502(b)(1)(B) of the Small 
                Business Investment Act of 1958, as added by this Act, 
                to--
                            (i) the Committee on Small Business and 
                        Entrepreneurship of the Senate; and
                            (ii) the Committee on Small Business of the 
                        House of Representatives.
                    (B) Contents.--The report under subparagraph (A) 
                shall--
                            (i) contain information gathered during the 
                        first 2 years of the loan program, including--
                                    (I) an evaluation of the timeliness 
                                of the implementation of the loan 
                                program;
                                    (II) a description of the 
                                effectiveness and ease with which 
                                certified development companies, 
                                lenders, and small business concerns 
                                have participated in the loan program;
                                    (III) a description and assessment 
                                of how the loan program was marketed;
                                    (IV) by location (State, insular 
                                area, and the District of Columbia) and 
                                in total, the number of child care 
                                small businesses, categorized by status 
                                as a for-profit or nonprofit business, 
                                that--
                                            (aa) applied for a loan 
                                        under the program (and whether 
                                        it was a new or expanding child 
                                        care provider);
                                            (bb) were approved for a 
                                        loan under the program; and
                                            (cc) received a loan 
                                        disbursement under the program 
                                        (and whether they are a new or 
                                        expanding child care provider); 
                                        and
                                    (V) with respect to businesses 
                                described under subclause (IV)(cc)--
                                            (aa) the number of such 
                                        businesses in each State, 
                                        insular area, and the District 
                                        of Columbia, as of the year of 
                                        enactment of this Act;
                                            (bb) the total amount 
                                        loaned to such businesses under 
                                        the program;
                                            (cc) the total number of 
                                        loans to such businesses under 
                                        the program;
                                            (dd) the average loan 
                                        amount and term;
                                            (ee) the currency rate, 
                                        delinquencies, defaults, and 
                                        losses of the loans;
                                            (ff) the number and percent 
                                        of children served who receive 
                                        subsidized assistance; and
                                            (gg) the number and percent 
                                        of children served who are low 
                                        income; and
                            (ii) assess whether there are government 
                        programs in place making loans or providing 
                        grant funding to nonprofit child care centers 
                        to address child care shortages.
                    (C) Access to information.--
                            (i) In general.--The Administration shall 
                        collect and maintain such information as may be 
                        necessary to carry out this paragraph from 
                        certified development companies and child care 
                        providers, and such companies and providers 
                        shall comply with a request for information 
                        from the Administration for that purpose.
                            (ii) Provision of information to government 
                        accountability office.--The Administration 
                        shall provide information collected under this 
                        subparagraph to the Comptroller General of the 
                        United States for purposes of the report 
                        required by this paragraph.
    (c) Rulemaking Authority.--Not later than 120 days after the date 
of enactment of this Act, the Administrator shall issue final rules to 
carry out the loan program authorized by section 502(b)(1)(B) of the 
Small Business Investment Act of 1958, as added by this Act.

SEC. 198. DEBENTURE REPAYMENT.

    Section 503(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(a)) is amended by adding at the end the following:
    ``(5) Any debenture that is issued under this section shall provide 
for the payment of principal and interest on a semiannual basis.''.

SEC. 199. REAL ESTATE APPRAISALS.

    (a) In General.--Section 7(a)(29) of the Small Business Act (15 
U.S.C. 636(a)(29)) is amended to read as follows:
            ``(29) Real estate appraisals.--
                    ``(A) In general.--For any loan under this 
                subsection that is secured by commercial real property, 
                an appraisal of that property by an appraiser licensed 
                or certified by the State in which that property is 
                located--
                            ``(i) shall be required by the 
                        Administrator if the estimated value of that 
                        property is more than $400,000; and
                            ``(ii) may be required by the Administrator 
                        or the lender if--
                                    ``(I) the estimated value of that 
                                property is less than $400,000; and
                                    ``(II) an appraisal is necessary 
                                for the appropriate evaluation of 
                                creditworthiness.
                    ``(B) Adjustment.--The Administrator--
                            ``(i) shall periodically adjust the amount 
                        under subparagraph (A) to account for the 
                        effects of inflation; and
                            ``(ii) may not make an adjustment under 
                        clause (i) in an amount less than $50,000.''.
    (b) Conforming Amendment.--Section 502(b)(3)(E), as so designated 
by section 197(a) of this Act, is amended--
            (1) in clause (ii), by striking ``$250,000'' each place 
        that term appears and inserting ``$400,000''; and
            (2) by adding at the end the following:
                            ``(iii) Adjustment.--The Administrator--
                                    ``(I) shall periodically adjust the 
                                amount under clause (ii) to account for 
                                the effects of inflation; and
                                    ``(II) may not make an adjustment 
                                under subclause (I) in an amount less 
                                than $50,000.''.

                TITLE II--SMALL BUSINESS VENTURE CAPITAL

         Subtitle A--Small Business Investment Company Program

SEC. 221. REAUTHORIZATION.

    Section 20 of the Small Business Act (15 U.S.C. 631 note), as 
amended by this Act, is amended by adding at the end the following:
    ``(m) Small Business Venture Capital.--For the programs authorized 
under part A of title III of the Small Business Investment Act of 1958 
(15 U.S.C. 681 et seq.), the Administrator is authorized to make--
            ``(1) $2,250,000,000 in guarantees of debentures for fiscal 
        year 2008;
            ``(2) $2,500,000,000 in guarantees of debentures for fiscal 
        year 2009; and
            ``(3) $2,750,000,000 in guarantees of debentures for fiscal 
        year 2010.''.

SEC. 222. LEVERAGE.

    (a) In General.--Section 303(b)(2) of the Small Business Investment 
Act of 1958 (15 U.S.C. 683(b)(2)) is amended to read as follows:
            ``(2) Maximum leverage.--
                    ``(A) In general.--The maximum amount of 
                outstanding leverage made available to any 1 company 
                licensed under section 301(c) may not exceed the lesser 
                of--
                            ``(i) 300 percent of private capital; or
                            ``(ii) $150,000,000.
                    ``(B) Multiple licenses under common control.--The 
                maximum amount of outstanding leverage made available 
                to 2 or more companies licensed under section 301(c) 
                that are commonly controlled (as determined by the 
                Administrator) may not exceed $225,000,000.
                    ``(C) Investments in women-owned and minority-owned 
                businesses and in low-income geographic areas.--
                            ``(i) In general.--The maximum amount of 
                        outstanding leverage made available to--
                                    ``(I) any 1 company described in 
                                clause (ii) may not exceed the lesser 
                                of--
                                            ``(aa) 300 percent of 
                                        private capital; or
                                            ``(bb) $175,000,000; and
                                    ``(II) 2 or more companies 
                                described in clause (ii) that are 
                                commonly controlled (as determined by 
                                the Administrator) may not exceed 
                                $250,000,000.
                            ``(ii) Applicability.--A company described 
                        in this clause is a company licensed under 
                        section 301(c) that certifies in writing that 
                        not less than 50 percent of the dollar amount 
                        of investments of that company shall be made in 
                        companies that, prior to that investment, are 
                        owned by women or minorities (as determined by 
                        the Administrator) or are located in a low-
                        income geographic area (as that term is defined 
                        in section 351).
                    ``(D) Investments in energy saving small 
                businesses.--
                            ``(i) In general.--Subject to clause (ii), 
                        in calculating the outstanding leverage of a 
                        company for purposes of subparagraph (A) or 
                        (C), the Administrator shall exclude the amount 
                        of the cost basis of any Energy Saving 
                        qualified investment in a smaller enterprise 
                        made in the first fiscal year after the date of 
                        enactment of this subparagraph or any fiscal 
                        year thereafter by a company licensed in the 
                        applicable fiscal year.
                            ``(ii) Limitations.--
                                    ``(I) Amount of exclusion.--The 
                                amount excluded under clause (i) for a 
                                company shall not exceed 33 percent of 
                                the private capital of that company.
                                    ``(II) Maximum investment.--A 
                                company shall not make an Energy Saving 
                                qualified investment in any one entity 
                                in an amount equal to more than 20 
                                percent of the private capital of that 
                                company.
                                    ``(III) Other terms.--The exclusion 
                                of amounts under clause (i) shall be 
                                subject to such terms as the 
                                Administrator may impose to ensure that 
                                there is no cost (as that term is 
                                defined in section 502 of the Federal 
                                Credit Reform Act of 1990 (2 U.S.C. 
                                661a)) with respect to purchasing or 
                                guaranteeing any debenture involved.
                    ``(E) Exception.--The Administrator may, on a case-
                by-case basis, impose such additional terms and 
                conditions relating to the maximum amount of 
                outstanding leverage made available as the 
                Administrator determines to be appropriate to minimize 
                the risk of loss to the Administration in the event of 
                a default.''.
    (b) Technical and Conforming Amendments.--Section 303(b) of the 
Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended by 
striking paragraph (4).

SEC. 223. INVESTMENTS IN SMALLER ENTERPRISES.

    Section 303(d) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(d)) is amended to read as follows:
    ``(d) Investments in Smaller Enterprises.--The Administrator shall 
require each licensee, as a condition of an application for leverage, 
to certify in writing that not less than 25 percent of the aggregate 
dollar amount of financings of that licensee shall be provided to 
smaller enterprises.''.

SEC. 224. MAXIMUM INVESTMENT IN A COMPANY.

    Section 306(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 686(a)) is amended by striking ``20 per centum'' and inserting 
``30 percent''.

            Subtitle B--New Markets Venture Capital Program

SEC. 241. DIVERSIFICATION OF NEW MARKETS VENTURE CAPITAL PROGRAM.

    (a) Selection of Companies in Each Geographic Region.--Section 354 
of the Small Business Investment Act of 1958 (15 U.S.C. 689c) is 
amended by adding at the end the following:
    ``(f) Geographic Goal.--In selecting companies to participate as 
New Markets Venture Capital companies in the program established under 
this part, the Administrator shall have as a goal to select, from among 
companies submitting applications under subsection (b), at least 1 
company from each geographic region of the Administration.''.
    (b) Participation in New Markets Venture Capital Program.--
            (1) Administration participation required.--Section 353 of 
        the Small Business Investment Act of 1958 (15 U.S.C. 689b) is 
        amended in the matter preceding paragraph (1), by striking 
        ``under which the Administrator may'' and inserting ``under 
        which the Administrator shall''.
            (2) Small manufacturer participation.--Section 353(1) of 
        the Small Business Investment Act of 1958 (15 U.S.C. 689b(1)) 
        is amended by inserting after ``section 352'' the following: 
        ``(with a goal of at least 1 such agreement to be with a 
        company engaged primarily in the development of and investment 
        in small manufacturers, to the extent practicable)''.

SEC. 242. ESTABLISHMENT OF OFFICE OF NEW MARKETS VENTURE CAPITAL.

    Title II of the Small Business Investment Act of 1958 (15 U.S.C. 
671) is amended by adding at the end the following:

``SEC. 202. OFFICE OF NEW MARKETS VENTURE CAPITAL.

    ``(a) Establishment.--There is established in the Investment 
Division of the Administration, the Office of New Markets Venture 
Capital.
    ``(b) Director.--The head of the Office of New Markets Venture 
Capital shall be an individual appointed in the competitive service or 
excepted service.
    ``(c) Responsibilities of Director.--The responsibilities of the 
head of the Office of New Markets Venture Capital include--
            ``(1) to administer the New Markets Venture Capital Program 
        under part B of title III;
            ``(2) to assess, not less frequently than once every 2 
        years, the nature and scope of the New Markets Venture Capital 
        Program and to advise the Administrator on recommended changes 
        to the program, based on such assessment;
            ``(3) to work to expand the number of small business 
        concerns participating in the New Markets Venture Capital 
        Program; and
            ``(4) to encourage investment in small manufacturing.''.

SEC. 243. LOW-INCOME GEOGRAPHIC AREAS.

    (a) In General.--Section 351 of the Small Business Investment Act 
of 1958 (15 U.S.C. 689) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3) through (8) as 
        paragraphs (2) through (7), respectively; and
            (3) in paragraph (2), as so redesignated--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``the term'' and inserting 
                        ``The term''; and
                            (ii) by striking ``means'';
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) means a `low-income community' within the 
                meaning of section 45D(e) of the Internal Revenue Code 
                of 1986 (relating to the new markets tax credit); 
                and''; and
                    (C) in subparagraph (B), in the matter preceding 
                clause (i), by inserting ``includes'' before ``any 
                area''.
    (b) Application of Amended Definition to Capital Requirement.--The 
definition of a low-income geographic area in section 351 of the Small 
Business Investment Act of 1958, as amended by subsection (a), shall 
apply to capital raised by a New Markets Venture Capital company 
before, on, or after the date of enactment of this Act.

SEC. 244. APPLICATIONS FOR NEW MARKETS VENTURE CAPITAL PROGRAM.

    Not later than 1 year after the date of enactment of this Act, the 
Administrator shall prescribe standard documents for an application for 
final approval by a New Markets Venture Capital company under section 
354(e) of the Small Business Investment Act of 1958 (15 U.S.C. 
689c(e)). The Administrator shall ensure that such documents are 
designed to substantially reduce the cost burden of the application 
process on a company making such an application.

SEC. 245. OPERATIONAL ASSISTANCE GRANTS.

    (a) In General.--Section 358(a)(4)(A) of the Small Business 
Investment Act of 1958 (15 U.S.C. 689g(a)(4)(A)) is amended to read as 
follows:
                    ``(A) New markets venture capital companies.--
                Notwithstanding section 354(d)(2), the amount of a 
                grant made under this subsection to a New Markets 
                Venture Capital company shall be equal to the lesser 
                of--
                            ``(i) 10 percent of the private capital 
                        raised by the company; or
                            ``(ii) $1,000,000.''.
    (b) Conforming Amendment and Limitation on Time for Final Approval 
of Companies.--Section 354(d) of the Small Business Investment Act of 
1958 (15 U.S.C. 689c(d)) is amended to read as follows:
    ``(d) Requirements to Be Met for Final Approval.--The Administrator 
shall grant each conditionally approved company 2 years to raise not 
less than $5,000,000 of private capital or binding capital commitments 
from one or more investors (other than agencies or departments of the 
Federal Government) who met criteria established by the 
Administrator.''.

SEC. 246. AUTHORIZATION.

    Section 368(a) of the Small Business Investment Act of 1958 (15 
U.S.C. 689q(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``fiscal years 2001 through 2006'' and inserting ``fiscal years 
        2008 through 2010''; and
            (2) in paragraph (2), by striking ``$30,000,000'' and 
        inserting ``$20,000,000''.

         TITLE III--SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT

                      Subtitle A--Reauthorization

SEC. 301. REAUTHORIZATION.

    (a) In General.--Section 20 of the Small Business Act (15 U.S.C. 
631 note), as amended by this Act, is amended by adding at the end the 
following:
    ``(n) SCORE Program.--There are authorized to be appropriated to 
the Administrator to carry out the SCORE program authorized by section 
8(b)(1) such sums as are necessary for the Administrator to make grants 
or enter into cooperative agreements for a total of--
            ``(1) $7,000,000 in fiscal year 2008;
            ``(2) $8,000,000 in fiscal year 2009; and
            ``(3) $9,000,000 in fiscal year 2010.''.
    (b) Small Business Development Centers.--Section 21(a)(4)(C)(vii) 
of the Small Business Act (15 U.S.C. 648(a)(4)(C)(vii)) is amended to 
read as follows:
                            ``(vii) Authorization of appropriations.--
                        There are authorized to be appropriated to 
                        carry out this subparagraph--
                                    ``(I) $135,000,000 for fiscal year 
                                2008;
                                    ``(II) $140,000,000 for fiscal year 
                                2009; and
                                    ``(III) $145,000,000 for fiscal 
                                year 2010.''.
    (c) Paul D. Coverdell Drug-Free Workplace Program.--
            (1) In general.--Section 27(g) of the Small Business Act 
        (15 U.S.C. 654(g)) is amended--
                    (A) in paragraph (1), by striking ``fiscal years 
                2005 and 2006'' and inserting ``fiscal years 2008 
                through 2010''; and
                    (B) in paragraph (2), by striking ``fiscal years 
                2005 and 2006'' and inserting ``fiscal years 2008 
                through 2010''.
            (2) Conforming amendment.--Section 21(c)(3)(T) of the Small 
        Business Act (15 U.S.C. 648(c)(3)(T)) is amended by striking 
        ``October 1, 2006'' and inserting ``October 1, 2010''.

         Subtitle B--Women's Small Business Ownership Programs

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

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

SEC. 312. WOMEN'S BUSINESS CENTER PROGRAM.

    (a) Women's Business Center Grants Program.--Section 29 of the 
Small Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2), (3), and (4), 
                as paragraphs (3), (4), and (5), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) the term `association of women's business centers' 
        means an organization that represents not 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;'';
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), and adjusting the 
                margins accordingly;
                    (B) by striking ``The Administration'' and 
                inserting the following:
            ``(1) In general.--The Administration'';
                    (C) by striking ``The projects shall'' and 
                inserting the following:
            ``(2) Use of funds.--The projects shall''; and
                    (D) by adding at the end the following:
            ``(3) Amount of grants.--
                    ``(A) In general.--The Administrator may award a 
                grant under this subsection of not more than $150,000 
                per year.
                    ``(B) Equal allocations.--In the event that the 
                Administration has insufficient funds to provide grants 
                of $150,000 for each grant recipient under this 
                subsection in any fiscal year, available funds shall be 
                allocated equally to grant recipients, unless any 
                recipient requests a lower amount than the allocable 
                amount.
            ``(4) Associations of women's business centers.--
                    ``(A) Recognition.--The Administrator shall 
                recognize the existence and activities of any 
                association of women's business centers established to 
                address matters of common concern.
                    ``(B) Consultation.--The Administrator shall 
                consult with each association of women's business 
                centers to develop--
                            ``(i) a training program for the staff of 
                        the women's business centers and the 
                        Administration; and
                            ``(ii) recommendations to improve the 
                        policies and procedures for governing the 
                        general operations and administration of the 
                        Women's Business Center Program, including 
                        grant program improvements under subsection 
                        (g)(5).'';
            (3) by striking subsection (f) and inserting the following:
    ``(f) Applications and Criteria for Initial Grants.--
            ``(1) Application.--Each organization desiring a grant 
        under subsection (b) shall submit to the Administrator an 
        application that contains--
                    ``(A) a certification that the applicant--
                            ``(i) is a private nonprofit organization;
                            ``(ii) has designated an executive director 
                        or program manager, who may be compensated from 
                        grant funds or other sources, to manage the 
                        center; and
                            ``(iii) as a condition of receiving a grant 
                        under subsection (b), agrees--
                                    ``(I) to receive a site visit as 
                                part of the final selection process;
                                    ``(II) to undergo an annual 
                                programmatic and financial examination; 
                                and
                                    ``(III) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to the site visit 
                                or examination under subclauses (I) and 
                                (II);
                    ``(B) information demonstrating that the applicant 
                has the ability and resources to meet the needs of the 
                market to be served by the women's business center site 
                for which a grant under subsection (b) is sought, 
                including the ability to comply with the matching 
                requirement under subsection (c);
                    ``(C) information relating to assistance to be 
                provided by the women's business center site for which 
                a grant under subsection (b) is sought in the area in 
                which the site is located;
                    ``(D) information demonstrating the effective 
                experience of the applicant in--
                            ``(i) conducting financial, management, and 
                        marketing assistance programs, as described 
                        under subsection (b)(2), which are designed to 
                        teach or upgrade the business skills of women 
                        who are business owners or potential business 
                        owners;
                            ``(ii) providing training and services to a 
                        representative number of women who are both 
                        socially and economically disadvantaged; and
                            ``(iii) using resource partners of the 
                        Administration and other entities, such as 
                        universities;
                    ``(E) a 5-year plan that projects the ability of 
                the women's business center site for which a grant is 
                sought--
                            ``(i) to serve women who are business 
                        owners or potential owners in the future by 
                        improving training and counseling activities; 
                        and
                            ``(ii) to provide training and services to 
                        a representative number of women who are both 
                        socially and economically disadvantaged; and
                    ``(F) any additional information that the 
                Administrator may reasonably require, if, not later 
                than 90 days before the date that the relevant 
                application is required to be submitted, the 
                Administrator provides written notice to the applicant 
                that such information is required.
            ``(2) Review and approval of applications for an initial 
        grant.--
                    ``(A) In general.--The Administrator shall--
                            ``(i) review each application submitted 
                        under paragraph (1), based on the information 
                        described in such paragraph and the criteria 
                        set forth under subparagraph (B) of this 
                        paragraph; and
                            ``(ii) as part of the final selection 
                        process, conduct a site visit at each women's 
                        business center for which a grant under 
                        subsection (b) is sought.
                    ``(B) Selection criteria.--
                            ``(i) In general.--The Administrator shall 
                        evaluate applicants for grants under subsection 
                        (b) in accordance with predetermined selection 
                        criteria that shall be stated in terms of 
                        relative importance. Such criteria and their 
                        relative importance shall be made publicly 
                        available and stated in each solicitation for 
                        applications made by the Administrator.
                            ``(ii) Required criteria.--The selection 
                        criteria for a grant under subsection (b) shall 
                        include--
                                    ``(I) the experience of the 
                                applicant in conducting programs or 
                                ongoing efforts designed to teach or 
                                upgrade the business skills of women 
                                who are business owners or potential 
                                owners;
                                    ``(II) the ability of the applicant 
                                to commence a project within a minimum 
                                amount of time;
                                    ``(III) the ability of the 
                                applicant to provide training and 
                                services to a representative number of 
                                women who are both socially and 
                                economically disadvantaged; and
                                    ``(IV) the location for the women's 
                                business center site proposed by the 
                                applicant, including whether the 
                                applicant is located in a State in 
                                which there is not a women's business 
                                center receiving funding from the 
                                Administration.
                    ``(C) Notice.--The Administrator may not award a 
                grant under subsection (b) to an applicant whose 
                principle place of business is located less than 50 
                miles from the principle place of business of another 
                organization receiving a grant under this section 
                unless the Administrator submits a written 
                justification for the need to award another grant under 
                this section in that area to the Committee on Small 
                Business and Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
                    ``(D) Record retention.--The Administrator shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.''; and
            (4) in subsection (m), by striking paragraph (3) and 
        inserting the following:
            ``(3) Application and approval.--
                    ``(A) Application.--Each organization desiring a 
                grant this subsection, shall submit to the 
                Administrator an application that contains--
                            ``(i) a certification that the applicant--
                                    ``(I) is a private nonprofit 
                                organization;
                                    ``(II) has designated an executive 
                                director or program manager to manage 
                                the center; and
                                    ``(III) as a condition of receiving 
                                a grant under this subsection, agrees--
                                            ``(aa) to receive a site 
                                        visit as part of the final 
                                        selection process;
                                            ``(bb) 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
                                            ``(cc) to the maximum 
                                        extent practicable, to remedy 
                                        any problems identified 
                                        pursuant to the site visit or 
                                        examination under items (aa) 
                                        and (bb);
                            ``(ii) 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 grant 
                        under this subsection is sought, including the 
                        ability to comply with the matching requirement 
                        under paragraph (4)(C);
                            ``(iii) information relating to assistance 
                        to be provided by the women's business center 
                        site for which a grant under this subsection is 
                        sought in the area in which the site is 
                        located;
                            ``(iv) information demonstrating the 
                        utilization of resource partners of the 
                        Administration and other entities;
                            ``(v) a 3-year plan that projects the 
                        ability of the women's business center site for 
                        which a grant under this subsection is sought--
                                    ``(I) to serve women who are 
                                business owners or potential owners in 
                                the future by improving training and 
                                counseling activities; and
                                    ``(II) to provide training and 
                                services to a representative number of 
                                women who are both socially and 
                                economically disadvantaged; and
                            ``(vi) any additional information that the 
                        Administrator may reasonably require.
                    ``(B) Review and approval of applications for 
                grants.--
                            ``(i) In general.--The Administrator 
                        shall--
                                    ``(I) review each application 
                                submitted under subparagraph (A), based 
                                on the information described in such 
                                subparagraph and the criteria set forth 
                                under clause (ii) of this subparagraph; 
                                and
                                    ``(II) as part of the final 
                                selection process, conduct a site visit 
                                at each women's business center for 
                                which a grant under this subsection is 
                                sought.
                            ``(ii) Selection criteria.--
                                    ``(I) In general.--The 
                                Administrator shall evaluate applicants 
                                in accordance with predetermined 
                                selection criteria that shall be stated 
                                in terms of relative importance. Such 
                                criteria and their relative importance 
                                shall be made publicly available and 
                                stated in each solicitation for 
                                applications made by the Administrator.
                                    ``(II) Required criteria.--The 
                                selection criteria for a grant under 
                                this subsection shall include--
                                            ``(aa) the total number of 
                                        entrepreneurs served by the 
                                        applicant;
                                            ``(bb) the total number of 
                                        new start-up companies assisted 
                                        by the applicant;
                                            ``(cc) the percentage of 
                                        the clients of the applicant 
                                        that are socially or 
                                        economically disadvantaged; and
                                            ``(dd) the percentage of 
                                        individuals in the community 
                                        served by the applicant who are 
                                        socially or economically 
                                        disadvantaged.
                            ``(iii) Conditions for continued funding.--
                        In determining whether to make a grant under 
                        this subsection, the Administrator--
                                    ``(I) shall consider the results of 
                                the most recent evaluation of the 
                                center, and, to a lesser extent, 
                                previous evaluations; and
                                    ``(II) may withhold such a grant, 
                                if the Administrator determines that 
                                the center has failed to provide the 
                                information required to be provided 
                                under this paragraph, or the 
                                information provided by the center is 
                                inadequate.
                    ``(C) Notification.--Not later than 60 days after 
                the date of the deadline to submit applications for 
                each fiscal year, the Administrator shall approve or 
                deny any application under this paragraph and notify 
                the applicant for each such application.
                    ``(D) Record retention.--The Administrator shall 
                maintain a copy of each application submitted under 
                this paragraph for not less than 7 years.''.
    (b) Technical and Conforming Amendments.--Section 29 of the Small 
Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (h)(2), by striking ``to award a contract 
        (as a sustainability grant) under subsection (l) or'';
            (2) in subsection (j)(1), by striking ``The 
        Administration'' and inserting ``Not later than November 1st of 
        each year, the Administrator'';
            (3) in subsection (k)--
                    (A) by striking paragraph (4);
                    (B) by redesignating paragraph (3) as paragraph 
                (5); and
                    (C) by striking paragraphs (1) and (2) and 
                inserting the following:
            ``(1) In general.--There are authorized to be appropriated 
        to the Administration to carry out this section, to remain 
        available until expended--
                    ``(A) $20,000,000 for fiscal year 2008;
                    ``(B) $20,500,000 for fiscal year 2009; and
                    ``(C) $21,000,000 for fiscal year 2010.
            ``(2) Allocation.--Of amounts made available pursuant to 
        paragraph (1), the Administrator shall use not less than 60 
        percent for grants under subsection (l).
            ``(3) Use of amounts.--Amounts made available under this 
        subsection may only be used for grant awards and may not be 
        used for costs incurred by the Administration in connection 
        with the management and administration of the program under 
        this section.
            ``(4) Continuing grant and cooperative agreement 
        authority.--
                    ``(A) In general.--The authority of the 
                Administrator to make grants under this section shall 
                be in effect for each fiscal year only to the extent 
                and in the amounts as are provided in advance in 
                appropriations Acts.
                    ``(B) Prompt disbursement.--In order to help 
                women's business centers operate smoothly and 
                predictably, upon receiving funds to carry out this 
                section for a fiscal year, the Administrator shall 
                promptly disburse funds to any women's business center 
                awarded a grant under this section.
                    ``(C) Renewal.--After the Administrator has entered 
                into a grant or cooperative agreement with any women's 
                business center under this section, the Administrator 
                shall not suspend, terminate, or fail to renew or 
                extend any such grant or cooperative agreement, unless 
                the Administrator provides the women's business center 
                with written notification setting forth the reasons for 
                that action and affords the center an opportunity for a 
                hearing, appeal, or other administrative proceeding 
                under chapter 5 of title 5, United States Code.'';
            (4) in subsection (m)(4)(D), by striking ``or subsection 
        (l)''; and
            (5) by redesignating subsections (m) and (n), as amended by 
        this Act, as subsections (l) and (m), respectively.

SEC. 313. NATIONAL WOMEN'S BUSINESS COUNCIL.

    (a) Cosponsorship Authority.--Section 406 of the Women's Business 
Ownership Act of 1988 (15 U.S.C. 7106) is amended by adding at the end 
the following:
    ``(f) Cosponsorship Authority.--The Council is authorized to enter 
into agreements as a cosponsor with public and private entities, in the 
same manner as is provided in section 4(h) of the Small Business Act 
(15 U.S.C. 633(h)), to carry out its duties under this section.''.
    (b) Membership.--Section 407(f) of the Women's Business Ownership 
Act of 1988 (15 U.S.C. 7107(f)) is amended by adding at the end the 
following:
            ``(3) Representation of member organizations.--In 
        consultation with the chairperson of the Council and the 
        Administrator, a national women's business organization or 
        small business concern that is represented on the Council may 
        replace its representative member on the Council during the 
        service term to which that member was appointed.''.
    (c) Establishment of Working Groups.--Title IV of the Women's 
Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is amended by 
inserting after section 410, the following new section:

``SEC. 411. WORKING GROUPS.

    ``(a) Establishment.--There are established within the Council, 
working groups, as directed by the chairperson.
    ``(b) Duties.--The working groups established under subsection (a) 
shall perform such duties as the chairperson shall direct.''.
    (d) Electronic Clearinghouse for Historical Documents.--Section 409 
of the Women's Business Ownership Act of 1988 (15 U.S.C. 7109) is 
amended by adding at the end the following:
    ``(c) Electronic Clearinghouse for Historical Documents.--The 
Council shall serve as an electronic clearinghouse for information on 
small businesses owned and controlled by women, including research 
conducted by other organizations and individuals relating to ownership 
by women of small business concerns in the United States.''.
    (e) Authorization of Appropriations.--Section 410(a) of the Women's 
Business Ownership Act of 1988 (15 U.S.C. 7110(a)) is amended by 
striking ``2001 through 2003, of which $550,000'' and inserting ``2008 
through 2010, of which not less than 30 percent''.

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

    (a) Chairperson.--Section 403(b) of the Women's Business Ownership 
Act of 1988 (15 U.S.C. 7103(b)) is amended--
            (1) by striking ``Not later'' and inserting the following:
            ``(1) In general.--Not later''; and
            (2) by adding at the end the following:
            ``(2) Vacancy.--In the event that a chairperson is not 
        appointed under paragraph (1), the Deputy Administrator of the 
        Small Business Administration shall serve as acting chairperson 
        of the Interagency Committee until a chairperson is appointed 
        under paragraph (1).''.
    (b) Policy Advisory Group.--Section 401 of the Women's Business 
Ownership Act of 1988 (15 U.S.C. 7101) is amended--
            (1) by striking ``There'' and inserting the following:
    ``(a) In General.--There''; and
            (2) by adding at the end the following:
    ``(b) Policy Advisory Group.--
            ``(1) Establishment.--There is established a Policy 
        Advisory Group to assist the chairperson in developing policies 
        and programs under this Act.
            ``(2) Membership.--The Policy Advisory Group shall be 
        composed of 7 policy making officials, of whom--
                    ``(A) 1 shall be a representative of the Small 
                Business Administration;
                    ``(B) 1 shall be a representative of the Department 
                of Commerce;
                    ``(C) 1 shall be a representative of the Department 
                of Labor;
                    ``(D) 1 shall be a representative of the Department 
                of Defense;
                    ``(E) 1 shall be a representative of the Department 
                of the Treasury; and
                    ``(F) 2 shall be representatives of the Council.
            ``(3) Meetings.--The Policy Advisory Group established 
        under paragraph (1) shall meet not less frequently than 3 times 
        each year to--
                    ``(A) plan activities for the new fiscal year;
                    ``(B) track year-to-date agency contracting goals; 
                and
                    ``(C) evaluate the progress during the fiscal year 
                and prepare an annual report.''.

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

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

SEC. 316. STUDY AND REPORT ON WOMEN'S BUSINESS CENTERS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a broad study of the unique economic issues facing women's 
business centers located in covered areas to identify--
            (1) the difficulties such centers face in raising matching 
        funds;
            (2) the difficulties such centers face competing for grant, 
        matching funds, or other types of assistance;
            (3) the difficulties such centers face in writing grant 
        proposals; and
            (4) other difficulties such centers face because of the 
        economy in the type of covered area in which such centers are 
        located.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit to Congress a report 
regarding the results of the study conducted under subsection (a), 
which shall include recommendations, if any, regarding how to--
            (1) address the unique difficulties women's business 
        centers located in covered areas face because of the type of 
        covered area in which such centers are located;
            (2) expand the presence of, and increase the services 
        provided by, women's business centers located in covered areas; 
        and
            (3) best use technology and other resources to better serve 
        women business owners located in covered areas.
    (c) Definition of Covered Area.--In this section, the term 
``covered area'' means--
            (1) any State that is predominantly rural, as determined by 
        the Administrator;
            (2) any State that is predominantly urban, as determined by 
        the Administrator; and
            (3) any State or territory that is an island.

                    Subtitle C--International Trade

SEC. 321. SMALL BUSINESS ADMINISTRATION ASSOCIATE ADMINISTRATOR FOR 
              INTERNATIONAL TRADE.

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

SEC. 322. OFFICE OF INTERNATIONAL TRADE.

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

``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

    ``(a) Establishment.--There''.
            (2) in subsection (a), by inserting ``(referred to in this 
        section as the `Office'),'' after ``Trade'';
            (3) in subsection (b)--
                    (A) by striking ``The Office'' and inserting the 
                following:
    ``(b) Trade Distribution Network.--The Office, including United 
States Export Assistance Centers (referred to as `one-stop shops' in 
section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988 
(15 U.S.C. 4721(b)(8)) and as `export centers' in this section)''; and
                    (B) by amending paragraph (1) to read as follows:
            ``(1) assist in maintaining a distribution network using 
        regional and local offices of the Administration, the small 
        business development center network, the women's business 
        center network, the Native American business center network, 
        and export centers for--
                    ``(A) trade promotion;
                    ``(B) trade finance;
                    ``(C) trade adjustment;
                    ``(D) trade remedy assistance; and
                    ``(E) trade data collection.'';
            (4) in subsection (c)--
                    (A) by redesignating paragraphs (1) through (8) as 
                paragraphs (2) through (9), respectively;
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) establish annual goals for the Office relating to--
                    ``(A) enhancing the exporting capability of small 
                business concerns and small manufacturers;
                    ``(B) facilitating technology transfers;
                    ``(C) enhancing programs and services to assist 
                small business concerns and small manufacturers to 
                compete effectively and efficiently against foreign 
                entities;
                    ``(D) increasing the access to capital by small 
                business concerns;
                    ``(E) disseminating information concerning Federal, 
                State, tribal, and private programs and initiatives; 
                and
                    ``(F) ensuring that the interests of small business 
                concerns are adequately represented in trade 
                negotiations;'';
                    (C) in paragraph (2), as so redesignated, by 
                striking ``mechanism for'' and all that follows through 
                ``(D)'' and inserting the following: ``mechanism for--
                    ``(A) identifying subsectors of the small business 
                community with strong export potential;
                    ``(B) identifying areas of demand in foreign 
                markets;
                    ``(C) prescreening foreign buyers for commercial 
                and credit purposes; and
                    ``(D)''; and
                    (D) in paragraph (9), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by striking ``full-time export 
                                development specialists to each 
                                Administration regional office and 
                                assigning''; and
                                    (II) by striking ``office. Such 
                                specialists'' and inserting ``office 
                                and providing each Administration 
                                regional office with a full-time export 
                                development specialist, who'';
                            (ii) in subparagraph (D), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (E), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iv) by adding at the end the following:
                    ``(F) participate jointly with employees of the 
                Office in an annual training program that focuses on 
                current small business needs for exporting; and
                    ``(G) jointly develop and conduct training programs 
                for exporters and lenders in cooperation with the 
                United States Export Assistance Centers, the Department 
                of Commerce, small business development centers, and 
                other relevant Federal agencies.'';
            (5) in subsection (d)--
                    (A) by inserting ``Export Financing Programs.--'' 
                after ``(d)'';
                    (B) by redesignating paragraphs (1) through (5) as 
                clauses (i) through (v), respectively, and adjusting 
                the margins accordingly;
                    (C) by striking ``The Office shall work in 
                cooperation'' and inserting the following:
            ``(1) In general.--The Office shall work in cooperation''; 
        and
                    (D) by striking ``To accomplish this goal, the 
                Office shall work'' and inserting the following:
            ``(2) Trade financial specialist.--To accomplish the goal 
        established under paragraph (1), the Office shall--
                    ``(A) designate at least 1 individual within the 
                Administration as a trade financial specialist to 
                oversee international loan programs and assist 
                Administration employees with trade finance issues; and
                    ``(B) work'';
            (6) in subsection (e), by inserting ``Trade Remedies.--'' 
        after ``(e)'';
            (7) by amending subsection (f) to read as follows:
    ``(f) Reporting Requirement.--The Office shall submit an annual 
report to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives that contains--
            ``(1) a description of the progress of the Office in 
        implementing the requirements of this section;
            ``(2) the destinations of travel by Office staff and 
        benefits to the Administration and to small business concerns 
        therefrom; and
            ``(3) a description of the participation by the Office in 
        trade negotiations.'';
            (8) in subsection (g), by inserting ``Studies.--'' after 
        ``(g)''; and
            (9) by adding at the end the following:
    ``(i) Export Assistance Centers.--
            ``(1) In general.--During the period beginning on October 
        1, 2008, and ending on September 30, 2010, the Administrator 
        shall ensure that the number of full-time equivalent employees 
        of the Office assigned to the one-stop shops referred to in 
        section 2301(b) of the Omnibus Trade and Competitiveness Act of 
        1988 (15 U.S.C. 4721 (b)) is not less than the number of such 
        employees so assigned on January 1, 2003.
            ``(2) Priority of placement.--Priority shall be given, to 
        the maximum extent practicable, to placing employees of the 
        Administration at any Export Assistance Center that--
                    ``(A) had an Administration employee assigned to 
                such center before January 2003; and
                    ``(B) has not had an Administration employee 
                assigned to such center during the period beginning 
                January 2003, and ending on the date of enactment of 
                this subsection, either through retirement or 
                reassignment.
            ``(3) Needs of exporters.--The Administrator shall, to the 
        maximum extent practicable, strategically assign Administration 
        employees to Export Assistance Centers, based on the needs of 
        exporters.
            ``(4) Goals.--The Office shall work with the Department of 
        Commerce and the Export-Import Bank to establish shared annual 
        goals for the Export Centers.
            ``(5) Oversight.--The Office shall designate an individual 
        within the Administration to oversee all activities conducted 
        by Administration employees assigned to Export Centers.''.

     Subtitle D--Native American Small Business Development Program

SEC. 331. SHORT TITLE.

    This subtitle may be cited as the ``Native American Small Business 
Development Act of 2008''.

SEC. 332. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

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

``SEC. 39. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    ``(a) Definitions.--In this section--
            ``(1) the term `Alaska Native' has the same meaning as the 
        term `Native' in section 3(b) of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602(b));
            ``(2) the term `Alaska Native corporation' has the same 
        meaning as the term `Native Corporation' in section 3(m) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
            ``(3) the term `Assistant Administrator' means the 
        Assistant Administrator of the Office of Native American 
        Affairs established under subsection (b);
            ``(4) the terms `center' and `Native American business 
        center' mean a center established under subsection (c);
            ``(5) the term `eligible applicant' means--
                    ``(A) a tribal government;
                    ``(B) a tribal college;
                    ``(C) a Native Hawaiian Organization;
                    ``(D) an Alaska Native corporation; or
                    ``(E) a private, nonprofit organization--
                            ``(i) that provides business and financial 
                        or procurement technical assistance to any 
                        entity described in subparagraph (A), (B), (C), 
                        or (D); and
                            ``(ii) the majority of members of the board 
                        of directors of which are members of an Indian 
                        tribe;
            ``(6) the term `Native American business enterprise center' 
        means an entity providing business development assistance to 
        federally recognized tribes and Native Americans under a grant 
        from the Minority Business Development Agency of the Department 
        of Commerce;
            ``(7) the term `Native American small business concern' 
        means a small business concern that is owned and controlled 
        by--
                    ``(A) a member of an Indian tribe or tribal 
                government;
                    ``(B) an Alaska Native or Alaska Native 
                corporation; or
                    ``(C) a Native Hawaiian or Native Hawaiian 
                Organization;
            ``(8) the term `Native Hawaiian' has the same meaning as in 
        section 625 of the Older Americans Act of 1965 (42 U.S.C. 
        3057k);
            ``(9) the term `Native Hawaiian Organization' has the same 
        meaning as in section 8(a)(15);
            ``(10) the term `tribal college' has the same meaning as 
        the term `tribally controlled college or university' has in 
        section 2(a)(4) of the Tribally Controlled Community College 
        Assistance Act of 1978 (25 U.S.C. 1801(a)(4));
            ``(11) the term `tribal government' has the same meaning as 
        the term `Indian tribe' has in section 7501(a)(9) of title 31, 
        United States Code; and
            ``(12) the term `tribal lands' means all lands within the 
        exterior boundaries of any Indian reservation.
    ``(b) Office of Native American Affairs.--
            ``(1) Establishment.--There is established within the 
        Administration the Office of Native American Affairs, which, 
        under the direction of the Assistant Administrator, shall 
        implement the Administration's programs for the development of 
        business enterprises by Native Americans.
            ``(2) Purpose.--The purpose of the Office of Native 
        American Affairs is to assist Native American entrepreneurs 
        to--
                    ``(A) start, operate, and grow small business 
                concerns;
                    ``(B) develop management and technical skills;
                    ``(C) seek Federal procurement opportunities;
                    ``(D) increase employment opportunities for Native 
                Americans through the start and expansion of small 
                business concerns; and
                    ``(E) increase the access of Native Americans to 
                capital markets.
            ``(3) Assistant administrator.--
                    ``(A) Appointment.--The Administrator shall appoint 
                a qualified individual to serve as Assistant 
                Administrator of the Office of Native American Affairs 
                in accordance with this paragraph.
                    ``(B) Qualifications.--The Assistant Administrator 
                appointed under subparagraph (A) shall have--
                            ``(i) knowledge of the Native American 
                        culture; and
                            ``(ii) experience providing culturally 
                        tailored small business development assistance 
                        to Native Americans.
                    ``(C) Employment status.--The Assistant 
                Administrator shall be a Senior Executive Service 
                position under section 3132(a)(2) of title 5, United 
                States Code, and shall serve as a noncareer appointee, 
                as defined in section 3132(a)(7) of title 5, United 
                States Code.
                    ``(D) Responsibilities and duties.--The Assistant 
                Administrator shall--
                            ``(i) administer and manage the Native 
                        American Small Business Development program 
                        established under this section;
                            ``(ii) recommend the annual administrative 
                        and program budgets for the Office of Native 
                        American Affairs;
                            ``(iii) consult with Native American 
                        business centers in carrying out the program 
                        established under this section;
                            ``(iv) recommend appropriate funding 
                        levels;
                            ``(v) review the annual budgets submitted 
                        by each applicant for the Native American Small 
                        Business Development program;
                            ``(vi) select applicants to participate in 
                        the program under this section;
                            ``(vii) implement this section; and
                            ``(viii) maintain a clearinghouse to 
                        provide for the dissemination and exchange of 
                        information between Native American business 
                        centers.
                    ``(E) Consultation requirements.--In carrying out 
                the responsibilities and duties described in this 
                paragraph, the Assistant Administrator shall confer 
                with and seek the advice of--
                            ``(i) Administration officials working in 
                        areas served by Native American business 
                        centers and Native American business enterprise 
                        centers;
                            ``(ii) representatives of tribal 
                        governments;
                            ``(iii) tribal colleges;
                            ``(iv) Alaska Native corporations; and
                            ``(v) Native Hawaiian Organizations.
    ``(c) Native American Small Business Development Program.--
            ``(1) Authorization.--
                    ``(A) In general.--The Administration, through the 
                Office of Native American Affairs, shall provide 
                financial assistance to eligible applicants to create 
                Native American business centers in accordance with 
                this section.
                    ``(B) Use of funds.--The financial and resource 
                assistance provided under this subsection shall be used 
                to overcome obstacles impeding the creation, 
                development, and expansion of small business concerns, 
                in accordance with this section, by--
                            ``(i) reservation-based American Indians;
                            ``(ii) Alaska Natives; and
                            ``(iii) Native Hawaiians.
            ``(2) 5-year projects.--
                    ``(A) In general.--Each Native American business 
                center that receives assistance under paragraph (1)(A) 
                shall conduct a 5-year project that offers culturally 
                tailored business development assistance in the form 
                of--
                            ``(i) financial education, including 
                        training and counseling in--
                                    ``(I) applying for and securing 
                                business credit and investment capital;
                                    ``(II) preparing and presenting 
                                financial statements; and
                                    ``(III) managing cash flow and 
                                other financial operations of a 
                                business concern;
                            ``(ii) management education, including 
                        training and counseling in planning, 
                        organizing, staffing, directing, and 
                        controlling each major activity and function of 
                        a small business concern; and
                            ``(iii) marketing education, including 
                        training and counseling in--
                                    ``(I) identifying and segmenting 
                                domestic and international market 
                                opportunities;
                                    ``(II) preparing and executing 
                                marketing plans;
                                    ``(III) developing pricing 
                                strategies;
                                    ``(IV) locating contract 
                                opportunities;
                                    ``(V) negotiating contracts; and
                                    ``(VI) utilizing varying public 
                                relations and advertising techniques.
                    ``(B) Business development assistance recipients.--
                The business development assistance under subparagraph 
                (A) shall be offered to prospective and current owners 
                of small business concerns that are owned by--
                            ``(i) American Indians or tribal 
                        governments, and located on or near tribal 
                        lands;
                            ``(ii) Alaska Natives or Alaska Native 
                        corporations; or
                            ``(iii) Native Hawaiians or Native Hawaiian 
                        Organizations.
            ``(3) Form of federal financial assistance.--
                    ``(A) Documentation.--
                            ``(i) In general.--The financial assistance 
                        to Native American business centers authorized 
                        under this subsection may be made by grant, 
                        contract, or cooperative agreement.
                            ``(ii) Exception.--Financial assistance 
                        under this subsection to Alaska Native 
                        corporations or Native Hawaiian Organizations 
                        may only be made by grant.
                    ``(B) Payments.--
                            ``(i) Timing.--Payments made under this 
                        subsection may be disbursed in an annual lump 
                        sum or in periodic installments, at the request 
                        of the recipient.
                            ``(ii) Advance.--The Administration may 
                        disburse not more than 25 percent of the annual 
                        amount of Federal financial assistance awarded 
                        to a Native American small business center 
                        after notice of the award has been issued.
                            ``(iii) No matching requirement.--The 
                        Administration shall not require a grant 
                        recipient to match grant funding received under 
                        this subsection with non-Federal resources as a 
                        condition of receiving the grant.
            ``(4) Contract and cooperative agreement authority.--A 
        Native American business center may enter into a contract or 
        cooperative agreement with a Federal department or agency to 
        provide specific assistance to Native American and other 
        underserved small business concerns located on or near tribal 
        lands, to the extent that such contract or cooperative 
        agreement is consistent with the terms of any assistance 
        received by the Native American business center from the 
        Administration.
            ``(5) Application process.--
                    ``(A) Submission of a 5-year plan.--Each applicant 
                for assistance under paragraph (1) shall submit a 5-
                year plan to the Administration on proposed assistance 
                and training activities.
                    ``(B) Criteria.--
                            ``(i) In general.--The Administration shall 
                        evaluate and rank applicants in accordance with 
                        predetermined selection criteria that shall be 
                        stated in terms of relative importance.
                            ``(ii) Public notice.--The criteria 
                        required by this paragraph and their relative 
                        importance shall be made publicly available, 
                        within a reasonable time, and stated in each 
                        solicitation for applications made by the 
                        Administration.
                            ``(iii) Considerations.--The criteria 
                        required by this paragraph shall include--
                                    ``(I) the experience of the 
                                applicant in conducting programs or 
                                ongoing efforts designed to impart or 
                                upgrade the business skills of current 
                                or potential owners of Native American 
                                small business concerns;
                                    ``(II) the ability of the applicant 
                                to commence a project within a minimum 
                                amount of time;
                                    ``(III) the ability of the 
                                applicant to provide quality training 
                                and services to a significant number of 
                                Native Americans;
                                    ``(IV) previous assistance from the 
                                Administration to provide services in 
                                Native American communities; and
                                    ``(V) the proposed location for the 
                                Native American business center site, 
                                with priority given based on the 
                                proximity of the center to the 
                                population being served and to achieve 
                                a broad geographic dispersion of the 
                                centers.
            ``(6) Program examination.--
                    ``(A) In general.--Each Native American business 
                center established pursuant to this subsection shall 
                annually provide the Administration with an itemized 
                cost breakdown of actual expenditures incurred during 
                the preceding year.
                    ``(B) Administration action.--Based on information 
                received under subparagraph (A), the Administration 
                shall--
                            ``(i) develop and implement an annual 
                        programmatic and financial examination of each 
                        Native American business center assisted 
                        pursuant to this subsection; and
                            ``(ii) analyze the results of each 
                        examination conducted under clause (i) to 
                        determine the programmatic and financial 
                        viability of each Native American business 
                        center.
                    ``(C) Conditions for continued funding.--In 
                determining whether to renew a grant, contract, or 
                cooperative agreement with a Native American business 
                center, the Administration--
                            ``(i) shall consider the results of the 
                        most recent examination of the center under 
                        subparagraph (B), and, to a lesser extent, 
                        previous examinations; and
                            ``(ii) may withhold such renewal, if the 
                        Administration determines that--
                                    ``(I) the center has failed to 
                                provide adequate information required 
                                to be provided under subparagraph (A), 
                                or the information provided by the 
                                center is inadequate; or
                                    ``(II) the center has failed to 
                                provide adequate information required 
                                to be provided by the center for 
                                purposes of the report of the 
                                Administration under subparagraph (E).
                    ``(D) Continuing contract and cooperative agreement 
                authority.--
                            ``(i) In general.--The authority of the 
                        Administrator to enter into contracts or 
                        cooperative agreements in accordance with this 
                        subsection shall be in effect for each fiscal 
                        year only to the extent and in the amounts as 
                        are provided in advance in appropriations Acts.
                            ``(ii) Renewal.--After the Administrator 
                        has entered into a contract or cooperative 
                        agreement with any Native American business 
                        center under this subsection, it shall not 
                        suspend, terminate, or fail to renew or extend 
                        any such contract or cooperative agreement 
                        unless the Administrator provides the center 
                        with written notification setting forth the 
                        reasons therefore and affords the center an 
                        opportunity for a hearing, appeal, or other 
                        administrative proceeding under chapter 5 of 
                        title 5, United States Code.
                    ``(E) Management report.--
                            ``(i) In general.--The Administration shall 
                        prepare and submit to the Committee on Small 
                        Business and Entrepreneurship of the Senate and 
                        the Committee on Small Business of the House of 
                        Representatives an annual report on the 
                        effectiveness of all projects conducted by 
                        Native American business centers under this 
                        subsection and any pilot programs administered 
                        by the Office of Native American Affairs.
                            ``(ii) Contents.--Each report submitted 
                        under clause (i) shall include, with respect to 
                        each Native American business center receiving 
                        financial assistance under this subsection--
                                    ``(I) the number of individuals 
                                receiving assistance from the Native 
                                American business center;
                                    ``(II) the number of startup 
                                business concerns created;
                                    ``(III) the number of existing 
                                businesses seeking to expand 
                                employment;
                                    ``(IV) jobs created or maintained, 
                                on an annual basis, by Native American 
                                small business concerns assisted by the 
                                center since receiving funding under 
                                this Act;
                                    ``(V) to the maximum extent 
                                practicable, the capital investment and 
                                loan financing utilized by emerging and 
                                expanding businesses that were assisted 
                                by a Native American business center; 
                                and
                                    ``(VI) the most recent examination, 
                                as required under subparagraph (B), and 
                                the subsequent determination made by 
                                the Administration under that 
                                subparagraph.
            ``(7) Annual report.--Each entity receiving financial 
        assistance under this subsection shall annually report to the 
        Administration on the services provided with such financial 
        assistance, including--
                    ``(A) the number of individuals assisted, 
                categorized by ethnicity;
                    ``(B) the number of hours spent providing 
                counseling and training for those individuals;
                    ``(C) the number of startup small business concerns 
                created or maintained;
                    ``(D) the gross receipts of assisted small business 
                concerns;
                    ``(E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    ``(F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            ``(8) Record retention.--
                    ``(A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    ``(B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (6)(A) indefinitely.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for each of the fiscal years 2008 through 2010, 
to carry out the Native American Small Business Development Program, 
authorized under subsection (c).''.

SEC. 333. PILOT PROGRAMS.

    (a) Definitions.--In this section:
            (1) Incorporation by reference.--The terms defined in 
        section 39(a) of the Small Business Act (as added by this 
        subtitle) have the same meanings as in that section 39(a) when 
        used in this section.
            (2) Joint project.--The term ``joint project'' means the 
        combined resources and expertise of 2 or more distinct entities 
        at a physical location dedicated to assisting the Native 
        American community.
    (b) Native American Development Grant Pilot Program.--
            (1) Authorization.--
                    (A) In general.--There is established a 4-year 
                pilot program under which the Administration is 
                authorized to award Native American development grants 
                to provide culturally tailored business development 
                training and related services to Native Americans and 
                Native American small business concerns.
                    (B) Eligible organizations.--The grants authorized 
                under subparagraph (A) may be awarded to--
                            (i) any small business development center; 
                        or
                            (ii) any private, nonprofit organization 
                        that--
                                    (I) has members of an Indian tribe 
                                comprising a majority of its board of 
                                directors;
                                    (II) is a Native Hawaiian 
                                Organization; or
                                    (III) is an Alaska Native 
                                corporation.
                    (C) Amounts.--The Administration shall not award a 
                grant under this subsection in an amount which exceeds 
                $100,000 for each year of the project.
                    (D) Grant duration.--Each grant under this 
                subsection shall be awarded for not less than a 2-year 
                period and not more than a 4-year period.
            (2) Conditions for participation.--Each entity desiring a 
        grant under this subsection shall submit an application to the 
        Administration that contains--
                    (A) a certification that the applicant--
                            (i) is a small business development center 
                        or a private, nonprofit organization under 
                        paragraph (1)(B);
                            (ii) employs an executive director or 
                        program manager to manage the facility; and
                            (iii) agrees--
                                    (I) to a site visit as part of the 
                                final selection process;
                                    (II) to an annual programmatic and 
                                financial examination; and
                                    (III) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to that site visit 
                                or examination;
                    (B) information demonstrating that the applicant 
                has the ability and resources to meet the needs, 
                including cultural needs, of the Native Americans to be 
                served by the grant;
                    (C) information relating to proposed assistance 
                that the grant will provide, including--
                            (i) the number of individuals to be 
                        assisted; and
                            (ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    (D) information demonstrating the effective 
                experience of the applicant in--
                            (i) conducting financial, management, and 
                        marketing assistance programs designed to 
                        impart or upgrade the business skills of 
                        current or prospective Native American business 
                        owners;
                            (ii) providing training and services to a 
                        representative number of Native Americans;
                            (iii) using resource partners of the 
                        Administration and other entities, including 
                        universities, tribal governments, or tribal 
                        colleges; and
                            (iv) the prudent management of finances and 
                        staffing;
                    (E) the location where the applicant will provide 
                training and services to Native Americans; and
                    (F) a multiyear plan, corresponding to the length 
                of the grant, that describes--
                            (i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant;
                            (ii) in the continental United States, the 
                        number of Native Americans to be served by the 
                        grant; and
                            (iii) the training and services to be 
                        provided to a representative number of Native 
                        Americans.
            (3) Review of applications.--The Administration shall--
                    (A) evaluate and rank applicants under paragraph 
                (2) in accordance with predetermined selection criteria 
                that is stated in terms of relative importance;
                    (B) include such criteria in each solicitation 
                under this subsection and make such information 
                available to the public; and
                    (C) approve or disapprove each completed 
                application submitted under this subsection not later 
                than 60 days after the date of submission.
            (4) Annual report.--Each recipient of a Native American 
        development grant under this subsection shall annually report 
        to the Administration on the impact of the grant funding, 
        including--
                    (A) the number of individuals assisted, categorized 
                by ethnicity;
                    (B) the number of hours spent providing counseling 
                and training for those individuals;
                    (C) the number of startup small business concerns 
                created or maintained with assistance from a Native 
                American business center;
                    (D) the gross receipts of assisted small business 
                concerns;
                    (E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    (F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            (5) Record retention.--
                    (A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    (B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (4) indefinitely.
    (c) American Indian Tribal Assistance Center Grant Pilot Program.--
            (1) Authorization.--
                    (A) In general.--There is established a 4-year 
                pilot program, under which the Administration shall 
                award not less than 3 American Indian Tribal Assistance 
                Center grants to establish joint projects to provide 
                culturally tailored business development assistance to 
                prospective and current owners of small business 
                concerns located on or near tribal lands.
                    (B) Eligible organizations.--
                            (i) Class 1.--Not fewer than 1 grant shall 
                        be awarded to a joint project performed by a 
                        Native American business center, a Native 
                        American business enterprise center, and a 
                        small business development center.
                            (ii) Class 2.--Not fewer than 2 grants 
                        shall be awarded to joint projects performed by 
                        a Native American business center and a Native 
                        American business enterprise center.
                    (C) Amounts.--The Administration shall not award a 
                grant under this subsection in an amount which exceeds 
                $200,000 for each year of the project.
                    (D) Grant duration.--Each grant under this 
                subsection shall be awarded for a 3-year period.
            (2) Conditions for participation.--Each entity desiring a 
        grant under this subsection shall submit to the Administration 
        a joint application that contains--
                    (A) a certification that each participant of the 
                joint application--
                            (i) is either a Native American business 
                        center, a Native American business enterprise 
                        center, or a small business development center;
                            (ii) employs an executive director or 
                        program manager to manage the center; and
                            (iii) as a condition of receiving an 
                        American Indian Tribal Assistance Center grant, 
                        agrees--
                                    (I) to an annual programmatic and 
                                financial examination; and
                                    (II) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to that 
                                examination;
                    (B) information demonstrating an historic 
                commitment to providing assistance to Native 
                Americans--
                            (i) residing on or near tribal lands; or
                            (ii) operating a small business concern on 
                        or near tribal lands;
                    (C) information demonstrating that each participant 
                of the joint application has the ability and resources 
                to meet the needs, including the cultural needs, of the 
                Native Americans to be served by the grant;
                    (D) information relating to proposed assistance 
                that the grant will provide, including--
                            (i) the number of individuals to be 
                        assisted; and
                            (ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    (E) information demonstrating the effective 
                experience of each participant of the joint application 
                in--
                            (i) conducting financial, management, and 
                        marketing assistance programs, designed to 
                        impart or upgrade the business skills of 
                        current or prospective Native American business 
                        owners; and
                            (ii) the prudent management of finances and 
                        staffing; and
                    (F) a plan for the length of the grant, that 
                describes--
                            (i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant; and
                            (ii) the training and services to be 
                        provided.
            (3) Review of applications.--The Administration shall--
                    (A) evaluate and rank applicants under paragraph 
                (2) in accordance with predetermined selection criteria 
                that is stated in terms of relative importance;
                    (B) include such criteria in each solicitation 
                under this subsection and make such information 
                available to the public; and
                    (C) approve or disapprove each application 
                submitted under this subsection not later than 60 days 
                after the date of submission.
            (4) Annual report.--Each recipient of an American Indian 
        tribal assistance center grant under this subsection shall 
        annually report to the Administration on the impact of the 
        grant funding received during the reporting year, and the 
        cumulative impact of the grant funding received since the 
        initiation of the grant, including--
                    (A) the number of individuals assisted, categorized 
                by ethnicity;
                    (B) the number of hours of counseling and training 
                provided and workshops conducted;
                    (C) the number of startup business concerns created 
                or maintained with assistance from a Native American 
                business center;
                    (D) the gross receipts of assisted small business 
                concerns;
                    (E) the number of jobs created or maintained at 
                assisted small business concerns; and
                    (F) the number of Native American jobs created or 
                maintained at assisted small business concerns.
            (5) Record retention.--
                    (A) Applications.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    (B) Annual reports.--The Administration shall 
                maintain copies of the information collected under 
                paragraph (4) indefinitely.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated--
            (1) $1,000,000 for each of fiscal years 2008 through 2010, 
        to carry out the Native American Development Grant Pilot 
        Program, authorized under subsection (b); and
            (2) $1,000,000 for each of fiscal years 2008 through 2010, 
        to carry out the American Indian Tribal Assistance Center Grant 
        Pilot Program, authorized under subsection (c).

       Subtitle E--National Small Business Regulatory Assistance

SEC. 341. SHORT TITLE.

    This subtitle may be cited as the ``National Small Business 
Regulatory Assistance Act of 2008''.

SEC. 342. PURPOSE.

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

SEC. 343. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.

    (a) Definitions.--In this section:
            (1) Association.--The term ``association'' means the 
        association established pursuant to section 21(a)(3)(A) of the 
        Small Business Act (15 U.S.C. 648(a)(3)(A)) representing a 
        majority of small business development centers.
            (2) Participating small business development center.--The 
        term ``participating small business development center'' means 
        a small business development center participating in the pilot 
        program established under this subtitle.
            (3) Regulatory compliance assistance.--The term 
        ``regulatory compliance assistance'' means assistance provided 
        by a small business development center to a small business 
        concern to assist and facilitate the concern in complying with 
        Federal and State regulatory requirements derived from Federal 
        law.
            (4) Small business development center.--The term ``small 
        business development center'' means a small business 
        development center described in section 21 of the Small 
        Business Act (15 U.S.C. 648).
            (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, American Samoa, and Guam.
    (b) Authority.--In accordance with this section, the Administrator 
shall establish a pilot program to provide regulatory compliance 
assistance to small business concerns through participating small 
business development centers.
    (c) Small Business Development Centers.--
            (1) In general.--In carrying out the pilot program 
        established under this section, the Administrator shall enter 
        into arrangements with participating small business development 
        centers under which such centers shall--
                    (A) provide access to information and resources, 
                including current Federal and State nonpunitive 
                compliance and technical assistance programs similar to 
                those established under section 507 of the Clean Air 
                Act Amendments of 1990 (42 U.S.C. 7661f);
                    (B) conduct training and educational activities;
                    (C) offer confidential, free of charge, one-on-one, 
                in-depth counseling to the owners and operators of 
                small business concerns regarding compliance with 
                Federal and State regulations derived from Federal law, 
                provided that such counseling is not considered to be 
                the practice of law in a State in which a small 
                business development center is located or in which such 
                counseling is conducted;
                    (D) provide technical assistance;
                    (E) give referrals to experts and other providers 
                of compliance assistance who meet such standards for 
                educational, technical, and professional competency as 
                are established by the Administrator; and
                    (F) form partnerships with Federal compliance 
                programs.
            (2) Reports.--Each participating small business development 
        center shall transmit to the Administrator and the Chief 
        Counsel for Advocacy of the Administration, as the 
        Administrator may direct, a quarterly report that includes--
                    (A) a summary of the regulatory compliance 
                assistance provided by the center under the pilot 
                program;
                    (B) the number of small business concerns assisted 
                under the pilot program; and
                    (C) for every fourth report, any regulatory 
                compliance information based on Federal law that a 
                Federal or State agency has provided to the center 
                during the preceding year and requested that it be 
                disseminated to small business concerns.
    (d) Eligibility.--A small business development center shall be 
eligible to receive assistance under the pilot program established 
under this section only if such center is accredited under section 
21(k)(2) of the Small Business Act (15 U.S.C. 648(k)(2)).
    (e) Selection of Participating Small Business Development 
Centers.--
            (1) Groupings.--
                    (A) Consultation.--The Administrator shall select 
                the small business development center programs of 2 
                States from each of the groups of States described in 
                subparagraph (B) to participate in the pilot program 
                established under this section.
                    (B) Groups.--The groups described in this 
                subparagraph as follows:
                            (i) Group 1.--Group 1 shall consist of 
                        Maine, Massachusetts, New Hampshire, 
                        Connecticut, Vermont, and Rhode Island.
                            (ii) Group 2.--Group 2 shall consist of New 
                        York, New Jersey, Puerto Rico, and the Virgin 
                        Islands.
                            (iii) Group 3.--Group 3 shall consist of 
                        Pennsylvania, Maryland, West Virginia, 
                        Virginia, the District of Columbia, and 
                        Delaware.
                            (iv) Group 4.--Group 4 shall consist of 
                        Georgia, Alabama, North Carolina, South 
                        Carolina, Mississippi, Florida, Kentucky, and 
                        Tennessee.
                            (v) Group 5.--Group 5 shall consist of 
                        Illinois, Ohio, Michigan, Indiana, Wisconsin, 
                        and Minnesota.
                            (vi) Group 6.--Group 6 shall consist of 
                        Texas, New Mexico, Arkansas, Oklahoma, and 
                        Louisiana.
                            (vii) Group 7.--Group 7 shall consist of 
                        Missouri, Iowa, Nebraska, and Kansas.
                            (viii) Group 8.--Group 8 shall consist of 
                        Colorado, Wyoming, North Dakota, South Dakota, 
                        Montana, and Utah.
                            (ix) Group 9.--Group 9 shall consist of 
                        California, Guam, American Samoa, Hawaii, 
                        Nevada, and Arizona.
                            (x) Group 10.--Group 10 shall consist of 
                        Washington, Alaska, Idaho, and Oregon.
                    (C) Coordination to avoid duplication with other 
                programs.--In selecting small business development 
                center programs under this paragraph, the Administrator 
                shall give a preference to any such program that has a 
                plan for consulting with Federal and State agencies to 
                ensure that any assistance provided under this section 
                is not duplicated by a Federal or State program.
            (2) Deadline for selection.--The Administrator shall make 
        selections under this subsection not later than 6 months after 
        the date of publication of final regulations under section 344.
    (f) Matching Requirement.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to 
assistance made available under the pilot program established under 
this section.
    (g) Grant Amounts.--Each State program selected to receive a grant 
under subsection (e) shall be eligible to receive a grant in an amount 
equal to--
            (1) not less than $150,000 per fiscal year; and
            (2) not more than $300,000 per fiscal year.
    (h) Evaluation and Report.--The Comptroller General of the United 
States shall--
            (1) not later than 30 months after the date of disbursement 
        of the first grant under the pilot program established under 
        this section, initiate an evaluation of the pilot program; and
            (2) not later than 6 months after the date of the 
        initiation of the evaluation under paragraph (1), transmit to 
        the Administrator, the Chief Counsel for Advocacy, the 
        Committee on Small Business and Entrepreneurship of the Senate, 
        and the Committee on Small Business of the House of 
        Representatives, a report containing--
                    (A) the results of the evaluation; and
                    (B) any recommendations as to whether the pilot 
                program, with or without modification, should be 
                extended to include the participation of all small 
                business development centers.
    (i) Posting of Information.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall post on the website 
of the Administration and publish in the Federal Register a guidance 
document describing the requirements of an application for assistance 
under this section.
    (j) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $5,000,000 for the first fiscal year beginning 
                after the date of enactment of this Act; and
                    (B) $5,000,000 for each of the 3 fiscal years 
                following the fiscal year described in subparagraph 
                (A).
            (2) Limitation on use of other funds.--The Administrator 
        may carry out the pilot program established under this section 
        only with amounts appropriated in advance specifically to carry 
        out this section.
    (k) Termination.--The Small Business Regulatory Assistance Pilot 
Program established under this section shall terminate 4 years after 
the date of disbursement of the first grant under the pilot program.

SEC. 344. RULEMAKING.

    After providing notice and an opportunity for comment, and after 
consulting with the association (but not later than 270 days after the 
date of enactment of this Act), the Administrator shall promulgate 
final regulations to carry out this subtitle, including regulations 
that establish--
            (1) priorities for the types of assistance to be provided 
        under the pilot program established under this subtitle;
            (2) standards relating to educational, technical, and 
        support services to be provided by participating small business 
        development centers;
            (3) standards relating to any national service delivery and 
        support function to be provided by the association under the 
        pilot program;
            (4) standards relating to any work plan that the 
        Administrator may require a participating small business 
        development center to develop; and
            (5) standards relating to the educational, technical, and 
        professional competency of any expert or other assistance 
        provider to whom a small business concern may be referred for 
        compliance assistance under the pilot program.

                      Subtitle F--Other Provisions

SEC. 351. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT PROGRAM.

    (a) Definitions.--In this section--
            (1) the terms ``Alaska Native-serving institution'' and 
        ``Native Hawaiian-serving institution'' have the meanings given 
        those terms in section 317 of the Higher Education Act of 1965 
        (20 U.S.C. 1059d);
            (2) the term ``Hispanic serving institution'' has the 
        meaning given the term in section 502 of the Higher Education 
        Act of 1965 (20 U.S.C. 1101a);
            (3) the term ``historically Black college and university'' 
        has the meaning given the term ``part B institution'' in 
        section 322 of the Higher Education Act of 1965 (20 U.S.C. 
        1061);
            (4) the term ``small business development center'' has the 
        same meaning as in section 21 of the Small Business Act (15 
        U.S.C. 648); and
            (5) the term ``Tribal College'' has the meaning given the 
        term ``tribally controlled college or university'' in section 2 
        of the Tribally Controlled College or University Assistance Act 
        of 1978 (25 U.S.C. 1801).
    (b) Minority Entrepreneurship and Innovation Grants.--
            (1) In general.--The Administrator shall make grants to 
        historically Black colleges and universities, Tribal Colleges, 
        Hispanic serving institutions, Alaska Native-serving 
        institutions, and Native Hawaiian-serving institutions, or to 
        any entity formed by a combination of such institutions--
                    (A) to assist in establishing an entrepreneurship 
                curriculum for undergraduate or graduate studies; and
                    (B) for placement of small business development 
                centers on the physical campus of the institution.
            (2) Curriculum requirement.--An institution of higher 
        education receiving a grant under this subsection shall develop 
        a curriculum that includes training in various skill sets 
        needed by successful entrepreneurs, including--
                    (A) business management and marketing, financial 
                management and accounting, market analysis and 
                competitive analysis, innovation and strategic 
                planning; and
                    (B) additional entrepreneurial skill sets specific 
                to the needs of the student population and the 
                surrounding community, as determined by the 
                institution.
            (3) Small business development center requirement.--Each 
        institution receiving a grant under this subsection shall open 
        a small business development center that--
                    (A) performs studies, research, and counseling 
                concerning the management, financing, and operation of 
                small business concerns;
                    (B) performs management training and technical 
                assistance regarding the participation of small 
                business concerns in international markets, export 
                promotion and technology transfer, and the delivery or 
                distribution of such services and information;
                    (C) offers referral services for entrepreneurs and 
                small business concerns to business development, 
                financing, and legal experts; and
                    (D) promotes market-specific innovation, niche 
                marketing, capacity building, international trade, and 
                strategic planning as keys to long-term growth for its 
                small business concern and entrepreneur clients.
            (4) Grant limitations.--A grant under this subsection--
                    (A) may not exceed $500,000 for any fiscal year for 
                any 1 institution of higher education;
                    (B) may not be used for any purpose other than 
                those associated with the direct costs incurred to 
                develop and implement a curriculum that fosters 
                entrepreneurship and the costs incurred to organize and 
                run a small business development center on the grounds 
                of the institution; and
                    (C) may not be used for building expenses, 
                administrative travel budgets, or other expenses not 
                directly related to the implementation of the 
                curriculum or activities authorized by this section.
            (5) Exception from small business act requirement.--
        Subparagraphs (A) and (B) of section 21(a)(4) of the Small 
        Business Act (15 U.S.C. 648(a)(4)) do not apply to assistance 
        made available under this subsection.
            (6) Report.--Not later than November 1 of each year, the 
        Associate Administrator of Entrepreneurial Development of the 
        Administration shall submit to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives, a report evaluating 
        the award and use of grants under this subsection during the 
        preceding fiscal year, which shall include--
                    (A) a description of each entrepreneurship program 
                developed with grant funds, the date of the award of 
                such grant, and the number of participants in each such 
                program;
                    (B) the number of small business concerns assisted 
                by each small business development center established 
                with a grant under this subsection; and
                    (C) data regarding the economic impact of the small 
                business development center counseling provided under a 
                grant under this subsection.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000, to remain available 
until expended, for each of fiscal years 2008 and 2010.
    (d) Limitation on Use of Other Funds.--The Administrator shall 
carry out this section only with amounts appropriated in advance 
specifically to carry out this section.

SEC. 352. INSTITUTIONS OF HIGHER EDUCATION.

    (a) In General.--Section 21(a)(1) of the Small Business Act (15 
U.S.C. 648(a)(1)) is amended by striking ``: Provided, That'' and all 
that follows through ``on such date.'' and inserting the following: 
``On and after December 31, 2008, 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, 
2008.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on December 31, 2008.

SEC. 353. HEALTH INSURANCE OPTIONS INFORMATION FOR SMALL BUSINESS 
              CONCERNS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Association.--The term ``association'' means an 
        association established under section 21(a)(3)(A) of the Small 
        Business Act (15 U.S.C. 648(a)(3)(A)) representing a majority 
        of small business development centers.
            (2) Participating small business development center.--The 
        term ``participating small business development center'' means 
        a small business development center described in section 21 of 
        the Small Business Act (15 U.S.C. 648) that--
                    (A) is accredited under section 21(k)(2) of the 
                Small Business Act (15 U.S.C. 648(k)(2)); and
                    (B) receives a grant under the pilot program.
            (3) Pilot program.--The term ``pilot program'' means the 
        small business health insurance information pilot program 
        established under this section.
            (4) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, American 
        Samoa, and Guam.
    (b) Small Business Health Insurance Information Pilot Program.--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.
    (c) Applications.--
            (1) Posting of information.--Not later than 180 days after 
        the date of enactment of this Act, the Administrator shall post 
        on the website of the Administration and publish in the Federal 
        Register a guidance document describing--
                    (A) the requirements of an application for a grant 
                under the pilot program; and
                    (B) the types of informational and educational 
                materials regarding health insurance options to be 
                created under the pilot program, including by 
                referencing materials and resources developed by the 
                National Association of Insurance Commissioners, the 
                Kaiser Family Foundation, and the Healthcare Leadership 
                Council.
            (2) Submission.--A small business development center 
        desiring a grant under the pilot program shall submit an 
        application at such time, in such manner, and accompanied by 
        such information as the Administrator may reasonably require.
    (d) Selection of Participating Small Business Development 
Centers.--
            (1) In general.--The Administrator shall select not more 
        than 20 small business development centers to receive a grant 
        under the pilot program.
            (2) Selection of programs.--In selecting small business 
        development centers under paragraph (1), the Administrator may 
        not select--
                    (A) more than 2 programs from each of the groups of 
                States described in paragraph (3); and
                    (B) more than 1 program in any State.
            (3) Groupings.--The groups of States described in this 
        paragraph are the following:
                    (A) Group 1.--Group 1 shall consist of Maine, 
                Massachusetts, New Hampshire, Connecticut, Vermont, and 
                Rhode Island.
                    (B) Group 2.--Group 2 shall consist of New York, 
                New Jersey, Puerto Rico, and the Virgin Islands.
                    (C) Group 3.--Group 3 shall consist of 
                Pennsylvania, Maryland, West Virginia, Virginia, the 
                District of Columbia, and Delaware.
                    (D) Group 4.--Group 4 shall consist of Georgia, 
                Alabama, North Carolina, South Carolina, Mississippi, 
                Florida, Kentucky, and Tennessee.
                    (E) Group 5.--Group 5 shall consist of Illinois, 
                Ohio, Michigan, Indiana, Wisconsin, and Minnesota.
                    (F) Group 6.--Group 6 shall consist of Texas, New 
                Mexico, Arkansas, Oklahoma, and Louisiana.
                    (G) Group 7.--Group 7 shall consist of Missouri, 
                Iowa, Nebraska, and Kansas.
                    (H) Group 8.--Group 8 shall consist of Colorado, 
                Wyoming, North Dakota, South Dakota, Montana, and Utah.
                    (I) Group 9.--Group 9 shall consist of California, 
                Guam, American Samoa, Hawaii, Nevada, and Arizona.
                    (J) Group 10.--Group 10 shall consist of 
                Washington, Alaska, Idaho, and Oregon.
            (4) Deadline for selection.--The Administrator shall make 
        selections under this subsection not later than 6 months after 
        the later of the date on which the information described in 
        subsection (c)(1) is posted on the website of the 
        Administration and the date on which the information described 
        in subsection (c)(1) is published in the Federal Register.
    (e) Use of Funds.--
            (1) In general.--A participating small business development 
        center shall use funds provided under the pilot program to--
                    (A) create and distribute informational materials; 
                and
                    (B) conduct training and educational activities.
            (2) Content of materials.--
                    (A) In general.--In creating materials under the 
                pilot program, a participating small business 
                development center shall evaluate and incorporate 
                relevant portions of existing informational materials 
                regarding health insurance options, including materials 
                and resources developed by the National Association of 
                Insurance Commissioners, the Kaiser Family Foundation, 
                and the Healthcare Leadership Council.
                    (B) Health insurance options.--In incorporating 
                information regarding health insurance options under 
                subparagraph (A), a participating small business 
                development center shall provide neutral and objective 
                information regarding health insurance options in the 
                geographic area served by the participating small 
                business development center, including traditional 
                employer sponsored health insurance for the group 
                insurance market, 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 of the Internal 
                Revenue Code of 1986, and Federal and State health 
                insurance programs.
    (f) Grant Amounts.--Each participating small business development 
center program shall receive a grant in an amount equal to--
            (1) not less than $150,000 per fiscal year; and
            (2) not more than $300,000 per fiscal year.
    (g) Matching Requirement.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to 
assistance made available under the pilot program.
    (h) Reports.--Each participating small business development center 
shall transmit to the Committee on Small Business and Entrepreneurship 
of the Senate and the Committee on Small Business of the House of 
Representatives, a quarterly report that includes--
            (1) a summary of the information and educational materials 
        regarding health insurance options provided by the 
        participating small business development center under the pilot 
        program; and
            (2) the number of small business concerns assisted under 
        the pilot program.
    (i) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $5,000,000 for the first fiscal year beginning 
                after the date of enactment of this Act; and
                    (B) $5,000,000 for each of the 3 fiscal years 
                following the fiscal year described in subparagraph 
                (A).
            (2) Limitation on use of other funds.--The Administrator 
        may carry out the pilot program only with amounts appropriated 
        in advance specifically to carry out this section.

SEC. 354. NATIONAL SMALL BUSINESS DEVELOPMENT CENTER ADVISORY BOARD.

    Section 21(i)(1) of the Small Business Act (15 U.S.C. 648(i)(1)) is 
amended by striking ``nine members'' and inserting ``10 members''.

SEC. 355. OFFICE OF NATIVE AMERICAN AFFAIRS PILOT PROGRAM.

    (a) Definition.--In this section, the term ``Indian tribe'' means 
any band, nation, or organized group or community of Indians located in 
the contiguous United States, and the Metlakatla Indian Community, 
whose members are recognized as eligible for the services provided to 
Indians by the Secretary of the Interior because of their status as 
Indians.
    (b) Authorization.--The Office of Native American Affairs of the 
Administration may conduct a pilot program--
            (1) to develop and publish a self-assessment tool for 
        Indian tribes that will allow such tribes to evaluate and 
        implement best practices for economic development; and
            (2) to provide assistance to Indian tribes, through the 
        Inter-Agency Working Group, in identifying and implementing 
        economic development opportunities available from the Federal 
        Government and private enterprise, including--
                    (A) the Administration;
                    (B) the Department of Energy;
                    (C) the Environmental Protection Agency;
                    (D) the Department of Commerce;
                    (E) the Federal Communications Commission;
                    (F) the Department of Justice;
                    (G) the Department of Labor;
                    (H) the Office of National Drug Control Policy; and
                    (I) the Department of Agriculture.
    (c) Termination of Program.--The authority to conduct a pilot 
program under this section shall terminate on September 30, 2010.
    (d) Report.--Not later than September 30, 2010, the Office of 
Native American Affairs shall submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives regarding the effectiveness of 
the self-assessment tool developed under subsection (b)(1).

SEC. 356. PRIVACY REQUIREMENTS FOR SCORE CHAPTERS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
inserting after subsection (b) the following
    ``(c) Privacy Requirements.--
            ``(1) In general.--A chapter of the SCORE program 
        authorized by subsection (b)(1) or an agent of such a chapter 
        may not disclose the name, address, or telephone number of any 
        individual or small business concern receiving assistance from 
        that chapter or agent without the consent of such individual or 
        small business concern, unless--
                    ``(A) 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
                    ``(B) the Administrator considers such a disclosure 
                to be necessary for the purpose of conducting a 
                financial audit of a chapter of the SCORE program 
                authorized by subsection (b)(1), but a disclosure under 
                this subparagraph shall be limited to the information 
                necessary for such audit.
            ``(2) Administrator use of information.--This subsection 
        shall not--
                    ``(A) restrict Administrator access to program 
                activity data; or
                    ``(B) prevent the Administrator from using client 
                information to conduct client surveys.
            ``(3) Regulations.--
                    ``(A) In general.--The Administrator shall issue 
                regulations to establish standards--
                            ``(i) for disclosures with respect to 
                        financial audits under paragraph (1)(B); and
                            ``(ii) for client surveys under paragraph 
                        (2)(B), including standards for oversight of 
                        such surveys and for dissemination and use of 
                        client information.
                    ``(B) Maximum privacy protection.--Regulations 
                under this paragraph shall, to the extent practicable, 
                provide for the maximum amount of privacy protection.
                    ``(C) Inspector general.--Until the effective date 
                of regulations under this paragraph, any client survey 
                and the use of such information shall be approved by 
                the Inspector General who shall include such approval 
                in the semi-annual report of the Inspector General.''.

SEC. 357. NATIONAL SMALL BUSINESS SUMMIT.

    (a) In General.--Not later than December 31, 2010, the President 
shall convene a National Small Business Summit to examine the present 
conditions and future of the community of small business concerns in 
the United States. The summit shall include owners of small business 
concerns, representatives of small business groups, labor, academia, 
Federal, State, and tribal government, Federal research and development 
agencies, and nonprofit policy groups concerned with the issues of 
small business concerns.
    (b) Report.--Not later than 90 days after the date of the 
conclusion of the summit convened under subsection (a), the President 
shall issue a report on the results of the summit. The report shall 
identify key challenges and recommendations for promoting 
entrepreneurship and the growth of small business concerns.

SEC. 358. SCORE PROGRAM.

    (a) In General.--Section 8(b)(1)(B) of the Small Business Act (15 
U.S.C. 637(b)(1)(B)) is amended by striking ``a Service Corps of 
Retired Executives (SCORE)'' and inserting ``the SCORE''.
    (b) Technical and Conforming Amendments.--
            (1) In general.--The Small Business Act (15 U.S.C. 631 et 
        seq.) is amended--
                    (A) in section 7(m)(3)(A)(i)(VIII), by striking 
                ``Service Corps of Retired Executives'' and inserting 
                ``SCORE''; and
                    (B) in section 33(b)(2), by striking ``Service 
                Corps of Retired Executives'' and inserting ``SCORE''.
            (2) Other law.--Section 337(d)(2) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6307(d)(2)) is amended by striking 
        ``Service Corps of Retired Executives (SCORE)'' and inserting 
        ``SCORE''.
    (c) References.--Any reference to the Service Corps of Retired 
Executives established under section 8(b)(1)(B) of the Small Business 
Act (15 U.S.C. 637(b)(1)(B)), as in effect on the day before the date 
of enactment of this Act, in any law, rule, regulation, certificate, 
directive, instruction, or other official paper shall be considered to 
refer to the SCORE established under section 8(b)(1)(B) of the Small 
Business Act, as amended by this Act.

                       TITLE IV--LENDER OVERSIGHT

SEC. 401. FINDINGS.

    Congress finds the following:
            (1) Recent reports by the Government Accountability Office 
        have recommended that the Small Business Administration develop 
        better measurements and methods for measuring the performance 
        of lending programs and the effectiveness of lender oversight.
            (2) A July 2007 report by the Government Accountability 
        Office entitled ``Small Business Administration: Additional 
        Measures Needed to Assess 7(a) Loan Program's Performance'' 
        found the following:
                    (A) Determining the success of the loan programs 
                under section 7(a) of the Small Business Act (15 U.S.C. 
                636(a)) ``is difficult as the performance measures show 
                only outputs--the number of loans provided--and not 
                outcomes, or the fate of the businesses borrowing with 
                the guarantee.''.
                    (B) ``The current measures do not indicate how well 
                the agency is meeting its strategic goal of helping 
                small businesses.''.
                    (C) ``To better ensure that the 7(a) program is 
                meeting its mission responsibility of helping small 
                firms succeed through guaranteed loans, we recommend 
                that the SBA administrator complete and expand the 
                SBA's current work on evaluating the program's 
                performance measures. As part of that effort, at a 
                minimum, the SBA should further utilize the loan 
                performance information it already collects, including 
                but not limited to defaults, prepayments, and number of 
                loans in good standing, to better report how small 
                businesses fare after they participate in the 7(a) 
                program.''.
            (3) A June 2004 report by the Government Accountability 
        Office entitled ``Small Business Administration: New Services 
        for Lender Oversight Reflect Some Best Practices but Strategy 
        for Use Lags Behind'' found that ``Best practices dictate the 
        need for a clear and transparent understanding of how a risk 
        management service and the tools it provides will be used.''.

SEC. 402. DEFINITIONS.

    In this title--
            (1) the term ``base year'' means the year in which a 
        covered loan recipient receives a loan under section 7(a) of 
        the Small Business Act (15 U.S.C. 636(a)) or the 504 Loan 
        Program;
            (2) the term ``covered lender'' means--
                    (A) a lender participating in the guarantee loan 
                program under section 7(a) of the Small Business Act 
                (15 U.S.C. 636(a)); and
                    (B) a State or local development company 
                participating in the 504 Loan Program;
            (3) the term ``covered loan recipient'' means a person that 
        receives a loan under section 7(a) of the Small Business Act 
        (15 U.S.C. 636(a)) or the 504 Loan Program;
            (4) the term ``economic performance evaluation 
        measurements'' means the economic performance evaluation 
        measurements established under section 407(a); and
            (5) the term ``portfolio quality evaluation standards'' 
        means the portfolio quality evaluation standards established 
        under section 404(a)(1).

SEC. 403. AUTHORITY.

    Section 5 of the Small Business Act (15 U.S.C. 634) is amended--
            (1) in subsection (b)(14), by striking ``other lender 
        oversight activities'' and inserting ``used to improve 
        portfolio performance and lender oversight through technology 
        and software programs designed to increase program loan 
        quality, management, accuracy, and efficiency and program 
        underwriting accuracy and efficiency''; and
            (2) by adding at the end the following:
    ``(i) In establishing lender oversight review fees described in 
subsection (b)(14), the Administrator shall follow cost containment and 
cost control best practices that ensure that such fees are reasonable 
and do not become burdensome or excessive.''.

SEC. 404. PORTFOLIO QUALITY EVALUATION STANDARDS.

    (a) Standards.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall develop and 
        publish in the Federal Register portfolio quality evaluation 
        standards for covered lenders, which shall include portfolio 
        quality criteria, including--
                    (A) a liquidation rate;
                    (B) a currency rate;
                    (C) a recovery rate;
                    (D) a delinquency rate; and
                    (E) other portfolio risk indicators.
            (2) Use.--The Administration shall use the portfolio 
        quality evaluation standards--
                    (A) to determine the portfolio quality of a covered 
                lender, in comparison to the portfolio quality of all 
                covered lenders; and
                    (B) for conducting lender oversight of covered 
                lenders.
    (b) Implementation.--The Administrator shall--
            (1) rank and determine a separate score for each covered 
        lender, on each of the portfolio quality evaluation standards;
            (2) combine the portfolio quality rankings described in 
        paragraph (1) to establish the overall lender portfolio quality 
        score for each covered lender, based on the compliance of that 
        covered lender with the portfolio quality evaluation standards;
            (3) provide a covered lender access to--
                    (A) the score of that covered lender for each of 
                the portfolio quality evaluation standards; and
                    (B) the overall portfolio quality score for that 
                covered lender; and
            (4) provide a written explanation of the factors affecting 
        the score described in paragraph (3)(A) for a covered lender to 
        that covered lender.
    (c) Quarterly Evaluations.--Not less frequently than once each 
quarter, the Administrator shall evaluate each covered lender to 
determine whether--
            (1) there has been a statistically significant adverse 
        change in the criteria evaluated under the portfolio quality 
        evaluation standards relating to a covered lender; and
            (2) the portfolio of that covered lender has a higher 
        concentration of loans made to businesses in a specific North 
        American Industry Classification System code (or any successor 
        thereto) than is typical for businesses in that code, as 
        determined by the Administrator.
    (d) Additional Onsite Review.--
            (1) Deterioration in loan portfolio.--If the Administrator 
        determines that there is significant and sustained 
        statistically adverse change in the loan portfolio of a covered 
        lender, based on the quarterly evaluation of that covered 
        lender under subsection (c), the Administrator shall--
                    (A) determine the reason for such deterioration;
                    (B) determine if the deterioration should lead to 
                an onsite review of the loan portfolio of that covered 
                lender;
                    (C) taking into consideration the opinion of the 
                relevant district director of the Administration, 
                determine whether it is appropriate for the 
                Administrator to adjust the preferred lender or other 
                loan making status of that covered lender;
                    (D) document the decision by the Administrator 
                regarding whether to conduct an onsite review or adjust 
                the loan making status of that covered lender; and
                    (E) inform that covered lender of any statistically 
                adverse change in loan quality of the portfolio of that 
                covered lender.
            (2) Adverse changes.--If the Administrator determines there 
        has been a statistically significant adverse change in the 
        criteria evaluated under the portfolio quality evaluation 
        standards relating to a covered lender, the Administrator shall 
        determine whether it is necessary to conduct an onsite review 
        of that covered lender.
            (3) Scope of review.--Any onsite review of a covered lender 
        under this subsection shall focus on--
                    (A) the credit quality of the loans within the 
                portfolio of that covered lender;
                    (B) the soundness of the credit evaluation and 
                underwriting processes and procedures of that covered 
                lender;
                    (C) the adherence by that covered lender to the 
                policies and procedures of the Administration; and
                    (D) any other measures that the Administrator 
                determines appropriate.
    (e) Defaults.--The Administrator shall provide to a covered lender 
information relating to any indicator under the portfolio quality 
evaluation standards that indicate an increased risk of default for 
specific loans.
    (f) Document Retention.--The Administrator shall maintain an 
electronic copy of any document relating to any portfolio quality 
evaluation or onsite review under this section (including documents 
relating to any determination regarding whether to conduct such a 
review).
    (g) Data Collection.--The Administrator shall enter into a contract 
with a fiscal and transfer agent of the Administration under which that 
fiscal and transfer agent shall provide to the Administrator the data 
necessary to conduct the quarterly evaluation of covered lenders using 
the portfolio quality evaluation standards under this section.

SEC. 405. DEFAULT RATE.

    (a) In General.--Using established industry standards for 
calculating loan default rates, and not later than 1 year after the 
date of enactment of this Act, and every year thereafter, the 
Administrator shall calculate a loan default rate for--
            (1) loans under section 7(a) of the Small Business Act (15 
        U.S.C. 636(a));
            (2) loans under the 504 Loan Program; and
            (3) specialty loan programs under section 7(a) of the Small 
        Business Act or the 504 Loan Program, including the Express 
        Loan Program under section 7(a)(31) of the Small Business Act 
        and the Export Working Capital Program under section 7(a)(14) 
        of the Small Business Act.
    (b) Methodology.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall publish in the Federal Register 
the methodology the Administrator will use to calculate default rates 
under subsection (a).
    (c) Purpose.--The purpose of the default rates calculated under 
subsection (a) is to provide a cumulative default rate for loans under 
section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and loans 
under the 504 Loan Program that may be compared directly to the default 
rates of other commercial loans.

SEC. 406. COMPUTER MODELING.

    (a) Transparency in Ranking Criteria.--The Administrator--
            (1) shall provide each covered lender with the data, 
        factors, statistical methods, ranking criteria, indicators, and 
        other measures used to make the ranking described in section 
        404(b); and
            (2) may not charge a fee for providing the information 
        described in paragraph (1).
    (b) Failure To Provide.--In ranking a covered lender under section 
404(b), the Administrator may not use any data, factor, statistical 
method, ranking criteria, indicator, or other measure that the 
Administrator has not provided to that covered lender.
    (c) Contracts.--Before establishing or modifying any system or 
mechanism for evaluating the making of loans, the accounting for loans, 
the underwriting of loans, or otherwise overseeing loans made by 
covered lenders, the Administrator shall consult with relevant covered 
lenders.

SEC. 407. ECONOMIC PERFORMANCE EVALUATION MEASUREMENTS.

    (a) Measurements.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall develop and publish in 
the Federal Register economic performance evaluation measurements for 
evaluating the economic performance and economic outcomes of each 
covered loan recipient, which shall include--
            (1) number of individuals employed by that covered loan 
        recipient;
            (2) the annual sales receipts of that covered loan 
        recipient;
            (3) an estimate of the total annual Federal income tax paid 
        by that covered loan recipient;
            (4) whether the covered loan recipient prepaid the covered 
        loan;
            (5) whether the covered loan recipient defaulted on the 
        covered loan;
            (6) the number of businesses operated by covered loan 
        recipients that cease operations; and
            (7) the number of covered loan recipients that establish a 
        new business relating to the business for which that covered 
        loan recipient received a loan under section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)) or the 504 Loan Program.
    (b) Collection of Information.--
            (1) In general.--On and after the date that is 2 years 
        after the date of enactment of this Act, the Administrator 
        shall electronically collect, as part of the loan application 
        process, from the person applying for a loan under section 7(a) 
        of the Small Business Act (15 U.S.C. 636(a)) or the 504 Loan 
        Program--
                    (A) the number of individuals employed by the 
                applicant;
                    (B) the annual sales receipts of the applicant for 
                the year before the date of the application; and
                    (C) an estimate of the total annual Federal income 
                tax paid by that covered loan recipient.
            (2) Base year.--The Administrator shall use the information 
        collected under paragraph (1) to establish the base year 
        statistics for the applicant.
            (3) Information compliance.--
                    (A) In general.--During the 12-year period 
                beginning on the date that a covered loan recipient 
                receives a loan under section 7(a) of the Small 
                Business Act or the 504 Loan Program, as the case may 
                be, the covered loan recipient shall provide to the 
                Administrator information relating to the economic 
                performance evaluation measurements upon requested.
                    (B) Frequency.--The Administrator shall request 
                information from a covered loan recipient under 
                subparagraph (A) not less frequently than once every 4 
                years.
    (c) Reporting.--
            (1) In general.--Not later than 6 years after the date of 
        enactment of this Act, and every 4 years thereafter, the 
        Administrator shall publish a report assessing the information 
        relating to the economic performance evaluation measurements 
        submitted by covered loan recipients during the period 
        described in paragraph (2), including an evaluation of the 
        aggregate changes, if any, in the economic performance 
        evaluation measurements since the relevant base years for such 
        covered loan recipients.
            (2) Period.--The period described in this paragraph is--
                    (A) for the first report submitted under this 
                subsection, not shorter than the 4-year period before 
                the date of that report;
                    (B) for the second report submitted under this 
                subsection, not shorter than the 8-year period before 
                the date of that report; and
                    (C) for the third report submitted under this 
                subsection, and each report submitted thereafter, not 
                shorter than the 12-year period before the date of that 
                report.

SEC. 408. PRIVACY.

    In collecting data and preparing reports under this title, the 
Administrator shall ensure that the privacy and information of covered 
loan recipients is protected.

SEC. 409. EXECUTIVE COMPENSATION.

    Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 
697) is amended by adding at the end the following:
    ``(j) Executive Compensation.--
            ``(1) In general.--Except as provided in paragraph (4), a 
        State or local development company shall have a written 
        contract with each executive or highly paid employee of that 
        development company relating to the employment of that 
        executive or highly paid employee, which shall include, for 
        that executive or employee, the amount of compensation, 
        benefits, and any transfer of anything of value to that 
        executive or highly paid employee, including any rental or 
        sale.
            ``(2) Approval by board of directors.--
                    ``(A) In general.--A written contract described in 
                paragraph (1) shall be approved by the board of 
                directors of the State or local development company.
                    ``(B) Evaluation.--In evaluating a contract 
                described in paragraph (1), the members of the board of 
                directors of a State or local development company 
                shall--
                            ``(i) determine the fair market value of 
                        the benefits received by an executive or highly 
                        paid employee from that development company; 
                        and
                            ``(ii) evaluate the amount paid by other 
                        State or local development companies and 
                        commercial lenders for comparable services, 
                        including, if a rental of property for that 
                        executive or highly paid employee is part of 
                        that contract, the amount of annual rent paid 
                        locally for comparable property.
                    ``(C) Distribution of evaluation.--The board of 
                directors of a State or local development company shall 
                ensure that the information described in subparagraph 
                (B) is made available to each member of that board of 
                directors before the date of the meeting at which the 
                board of directors will determine whether to approve 
                the relevant contract and include the information 
                described in subparagraph (B) in the minutes of that 
                meeting.
                    ``(D) Participation.--An executive or highly paid 
                official, and any other party with personal interest in 
                a contract, shall not attend a meeting of the board of 
                directors to determine whether to approve the contract 
                with that executive or highly paid official, unless the 
                members of the board of directors request that 
                executive or highly paid official respond to questions.
                    ``(E) Voting.--An executive or highly paid 
                official, and any other party with personal interest in 
                a contract, shall not be present during, and shall not 
                vote on, whether to approve the contract with that 
                executive or highly paid official.
            ``(3) Annual reports.--A State or local development company 
        shall report annually to the Administration regarding the terms 
        of each contract with each executive or highly paid official of 
        that development company.
            ``(4) Exception.--This subsection shall not apply to--
                    ``(A) a small State or local development company;
                    ``(B) a State or local development company that 
                makes a low number of loans under the 504 Loan Program; 
                or
                    ``(C) a State or local development company 
                regulated by a State or local government.
            ``(5) Regulations.--The Administrator shall promulgate 
        regulations to carry out this subsection, including defining 
        the terms `executive', `highly paid', `small State or local 
        development company', and `low number of loans'.''.

SEC. 410. STUDY AND REPORT ON EXAMINATION AND REVIEW FEES.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the Loan Guaranty Program under section 7(a) of the 
Small Business Act to determine--
            (1) the scope of lender oversight needed by the 
        Administration;
            (2) what other entities regulate the lenders that 
        participate in that loan guaranty program, what activities are 
        being reviewed, and the scope of such reviews;
            (3) how the amounts of examination and review fees are 
        determined by such other regulatory entities, who pays for such 
        fees, and how they compare with examination and review fees 
        proposed in regulations issued by the Administration on May 4, 
        2007;
            (4) how examination and review fees factor into the risk-
        adjusted return on capital (or ``RAROC'') ratings of lenders;
            (5) what would be reasonable fees to be charged for 
        Administration lender oversight;
            (6) whether Administration lender oversight functions can 
        be executed in conjunction with other lender reviews currently 
        required by other regulatory entities, including those that 
        review Federal banks, credit unions, or entities reviewed by 
        the Farm Credit Administration; and
            (7) the impact of lender oversight fees proposed by the 
        Administration on lending to borrowers, including cost changes, 
        availability of credit, and increased or decreased lender 
        participation.
    (b) Report.--The Comptroller General shall submit to Congress a 
report on the results of the study required by subsection (a) not later 
than 1 year after the date of enactment of this Act.
                                                       Calendar No. 720

110th CONGRESS

  2d Session

                                S. 2920

_______________________________________________________________________

                                 A BILL

     To reauthorize and improve the financing and entrepreneurial 
  development programs of the Small Business Administration, and for 
                            other purposes.

_______________________________________________________________________

                             April 28, 2008

            Read the second time and placed on the calendar