II 110th CONGRESS 2d Session S. 3342 IN THE SENATE OF THE UNITED STATES July 26, 2008 Ms. Landrieu introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To improve access to technology by and increase entrepreneurship among small businesses located in rural communities, and for other purposes.

1.

Short title

This Act may be cited as the Rural Small Business Enhancement Act of 2008.

2.

Definitions

In this Act, the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively.

3.

Rural areas

Section 34(e)(2) of the Small Business Act (15 U.S.C. 6657d(e)(2)) is amended— (1)by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and (2)by inserting after subparagraph (B) the following: (C)

Rural areas

(i)

In general

Except as provided in clause (ii), the non-Federal share of the cost of the activity carried out using an award or under a cooperative agreement under this section shall be 50 cents for each Federal dollar that will be directly allocated by a recipient described in paragraph (A) to serve small business concerns located in a rural area. (ii)

SBIR awards

For a recipient located in a rural area that is located in a States as described in subparagraph (A)(i), the non-Federal share of the cost of the activity carried out using an award or under a cooperative agreement under this section shall be 35 cents for each Federal dollar that will be directly allocated by a recipient described in paragraph (A) to serve small business concerns located in the rural area. (iii)

Definition of rural area

In this subparagraph, the term rural area has the meaning given that term in section 1393(a)(2)) of the Internal Revenue Code of 1986. .

4.

Rural outreach program

Section 9 of the Small Business Act (15 U.S.C. 638) is amended by inserting after subsection (r) the following: (s)

Outreach

(1)

Definition of eligible State

In this subsection, the term eligible State means a State— (A)if the total value of contracts awarded to the State during fiscal year 2004 under this section was less than $10,000,000; and (B)that certifies to the Administration described in paragraph (2) that the State will, upon receipt of assistance under this subsection, provide matching funds from non-Federal sources in an amount that is not less than 50 percent of the amount provided under this subsection. (2)

Program authority

Of amounts made available to carry out this section for each of the fiscal years 2009 through 2020, the Administrator may expend with eligible States not more than $2,000,000 in each such fiscal year in order to increase the participation of small business concerns located in those States in the programs under this section. (3)

Amount of assistance

The amount of assistance provided to an eligible State under this subsection in any fiscal year— (A)shall be equal to twice the total amount of matching funds from non-Federal sources provided by the State; and (B)shall not exceed $100,000. (4)

Use of assistance

Assistance provided to an eligible State under this subsection shall be used by the State, in consultation with State and local departments and agencies, for programs and activities to increase the participation of small business concerns located in the State in the programs under this section, including— (A)the establishment of quantifiable performance goals, including goals relating to— (i)the number of program awards under this section made to small business concerns in the State; and (ii)the total amount of Federal research and development contracts awarded to small business concerns in the State; (B)the provision of competition outreach support to small business concerns in the State that are involved in research and development; and (C)the development and dissemination of educational and promotional information relating to the programs under this section to small business concerns in the State. .

5.

Rural small business technology pilot program

(a)

Definitions

In this section— (1)the term qualified small business concern means a small business concern located in a rural area; (2)the term rural area has the meaning given that term in section 1393(a)(2) of the Internal Revenue Code of 1986; and (3)the term small business concern has the same meaning as under section 3 of the Small Business Act (15 U.S.C. 632). (b)

Report

Not later than 120 days after the date of enactment of this Act, the Administrator, in coordination with the Administrator of General Services, shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report describing— (1)the number of Government-owned computers in the possession of the Administration, including the number of working computers, nonworking computers, desktop computers, and laptop computers; (2)the number of Government-owned computers disposed of by the Administration during the 5-year period ending on the date of enactment of this Act, including the number of such computers that were working computers, nonworking computers, desktop computers, or laptop computers; (3)the procedures of the Administration for the disposal of Government-owned computers; and (4)the plans of the Administrator for carrying out the pilot program under subsection (c). (c)

Pilot program

(1)

Establishment

Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a pilot program to provide not more than 1,000 excess Government-owned computers each year to qualified small business concerns at no cost or a reduced cost. (2)

Purposes of program

The pilot program established under paragraph (1) shall be designed to— (A)encourage entrepreneurship in rural areas; (B)assist small business concerns in accessing technology; and (C)accelerate the growth of qualified small business concerns. (3)

Termination

The authority to conduct the pilot program under this subsection shall terminate 3 years after the date of enactment of this Act. (d)

Authorization of appropriations

There are authorized to be appropriated to the Administrator such sums as are necessary to carry out this section.

6.

Office of Technology

(a)

In general

The Administrator shall hire not less than 5 additional full-time equivalent employees for the Office of Technology of the Administration. (b)

Authorization of appropriations

There are authorized to be appropriated to the Administrator such sums as are necessary to carry out this section.

7.

Rural lending outreach program

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— (1)by striking paragraph (25)(C); (2)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 (3)by adding at the end the following: (34)

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. .