[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1983 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1983

 To enact certain laws relating to small business as title 53, United 
                    States Code, ``Small Business''.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 2009

    Mr. Conyers (for himself and Mr. Smith of Texas) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To enact certain laws relating to small business as title 53, United 
                    States Code, ``Small Business''.

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

SECTION 1. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1.  Table of contents.
Sec. 2.  Purpose; conformity with original intent.
Sec. 3.  Enactment of title 53, United States Code.
Sec. 4.  Conforming amendments to positive law provisions of the United 
          States Code.
Sec. 5.  Conforming amendments to non-positive law provisions of the 
          United States Code.
Sec. 6.  Transitional and savings provisions.
Sec. 7.  Repeals.

SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT.

  (a) Purpose.--The purpose of this Act is to codify certain existing 
laws relating to small business as a positive law title of the United 
States Code.
  (b) Conformity With Original Intent.--In the codification of laws by 
this Act, the intent is to conform to the understood policy, intent, 
and purpose of Congress in the original enactments, with such 
amendments and corrections as will remove ambiguities, contradictions, 
and other imperfections, in accordance with section 205(c)(1) of House 
Resolution No. 988, 93d Congress, as enacted into law by Public Law 93-
554 (2 U.S.C. 285b(1)).

SEC. 3. ENACTMENT OF TITLE 53, UNITED STATES CODE.

  Title 53, United States Code, ``Small Business'', is enacted as 
follows:

                        TITLE 53--SMALL BUSINESS

                     Subtitle I--General Provisions

Chap.                                                               Sec.

Definitions and declarations.......................................10101
Small Business Administration......................................10301
Penalties..........................................................10501
Periodic reports...................................................10701
Funding............................................................10901

    Subtitle II--Loan, Contracting, and Related Assistance Programs

                     DIVISION A--GENERAL PROVISIONS

General Provisions.................................................20101

               DIVISION B--GENERAL BUSINESS LOAN PROGRAM

General purpose loans..............................................20301
Special purpose loans..............................................20501
Small business lending companies and non-federally regulated lender20701

                     DIVISION C--MICROLOAN PROGRAM

Microloan program..................................................21101

                DIVISION D--DISASTER ASSISTANCE PROGRAMS

Disaster loan program..............................................21301
Private disaster assistance program................................21501
Immediate disaster assistance program..............................21501
Expedited disaster assistance business loan guarantee program......21901

                DIVISION E--BUSINESS DEVELOPMENT PROGRAM

General provisions.................................................23101
Contracting........................................................23301
Technical and management assistance................................21701

                   DIVISION F--PROCUREMENT ASSISTANCE

General provisions.................................................24101
Subcontracting provisions..........................................24301
Notice provisions..................................................24501
Noncompetitive procedures..........................................24701
Small business competitiveness demonstration program...............24901

               DIVISION G--CONTRACT RESERVATION PROGRAMS

General provisions.................................................25101
HUBZone program....................................................25301
Small business concerns owned and controlled by service-disabled 
veterans...........................................................25501
Small business concerns owned and controlled by women..............25701

                  DIVISION H--RESEARCH AND DEVELOPMENT

General provisions.................................................26101
SBIRs and STTRs....................................................26301

             DIVISION I--SMALL BUSINESS DEVELOPMENT PROGRAM

Small business development center program..........................27101

              DIVISION J--WOMEN'S BUSINESS CENTER PROGRAM

Women's business center program....................................27301

                  DIVISION K--VETERANS AND RESERVISTS

Veterans and reservists............................................27501

                       DIVISION X--MISCELLANEOUS

Miscellaneous......................................................29101

                   Subtitle III--Investment Division

                     DIVISION A--GENERAL PROVISIONS

General provisions.................................................30101

                    DIVISION B--INVESTMENT PROGRAMS

Small Business Investment Company Program..........................30301
New Markets Venture Capital Company Program........................30501
Renewable Fuel Capital Investment Pilot Program....................30701

               DIVISION C--SURETY BOND GUARANTEE PROGRAM

Surety and bond guarantee program..................................32101

           DIVISION D--CERTIFIED DEVELOPMENT COMPANY PROGRAM

Certified development company program..............................33101

                       Subtitle IV--Miscellaneous

PRIME program......................................................40101
Women's business enterprise development............................40301
Miscellaneous......................................................45101

                     Subtitle I--General Provisions

               CHAPTER 101--DEFINITIONS AND DECLARATIONS

Sec.
10101.  Definitions.
10102.  Declarations.
Sec. 10101. Definitions
  In this title:
          (1) Accredited lenders program.--The term ``accredited 
        lenders program'' means the program under section 33107 of this 
        title.
          (2) Activated.--The term ``activated'', with respect to a 
        reservist, means having received an order placing the reservist 
        on active duty.
          (3) Active duty.--The term ``active duty'' has the meaning 
        given the term in section 101 of title 10.
          (4) Administration.--The term ``Administration'' means the 
        Small Business Administration.
          (5) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
          (6) Agricultural commodity.--The term ``agricultural 
        commodity'' has the meaning given the term in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
          (7) Agricultural enterprise.--The term ``agricultural 
        enterprise'' means a business engaged in--
                  (A) the production of food or fiber;
                  (B) ranching;
                  (C) raising of livestock;
                  (D) aquaculture; or
                  (E) any other industry related to agriculture.
          (8) Alaska native corporation.--The term ``Alaska Native 
        Corporation'' has the meaning given the term ``Native 
        Corporation'' in section 3 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602).
          (9) Alaska native village.--The term ``Alaska Native 
        Village'' has the meaning given the term ``Native village'' in 
        section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 
        1602).
          (10) Association.--The term ``Association'' means the 
        association of small business development centers recognized 
        under section 27102(f) of this title.
          (11) Base closure area.--The term ``base closure area'' has 
        the meaning given the term in section 25301 of this title.
          (12) Biomass.--
                  (A) In general.--The term ``biomass'' means any 
                organic material that is available on a renewable or 
                recurring basis.
                  (B) Inclusions.--The term ``biomass'' includes--
                          (i) agricultural crops;
                          (ii) trees grown for energy production;
                          (iii) wood waste and wood residues;
                          (iv) plants (including aquatic plants and 
                        grasses);
                          (v) residues;
                          (vi) fibers;
                          (vii) animal wastes and other waste 
                        materials; and
                          (viii) fats, oils, and greases (including 
                        recycled fats, oils, and greases).
                  (C) Exclusions.--The term ``biomass'' does not 
                include--
                          (i) paper that is commonly recycled; or
                          (ii) unsegregated solid waste.
          (13) Bundled contract.--The term ``bundled contract'' means a 
        contract that is entered into to meet requirements that are 
        consolidated in a bundling of contract requirements.
          (14) Bundling of contract requirements.--
                  (A) In general.--The term ``bundling of contract 
                requirements'' means consolidating 2 or more 
                procurement requirements for goods or services 
                previously provided or performed under separate smaller 
                contracts into a solicitation of offers for a single 
                contract that is likely to be unsuitable for award to a 
                small business concern due to--
                          (i) the diversity, size, or specialized 
                        nature of the elements of the performance 
                        specified;
                          (ii) the aggregate dollar value of the 
                        anticipated award;
                          (iii) the geographical dispersion of the 
                        contract performance sites; or
                          (iv) a combination of the factors described 
                        in clauses (i), (ii), and (iii).
                  (B) Separate smaller contract.--In subparagraph (A), 
                the term ``separate smaller contract'' means a contract 
                that--
                          (i) has been performed by one or more small 
                        business concerns; or
                          (ii) was suitable for award to one or more 
                        small business concerns.
          (15) Business development program.--The term ``business 
        development program'' means the program under division E of 
        subtitle II.
          (16) Certified development company program.--The term 
        ``certified development company program'' means the program 
        under division D of subtitle III.
          (17) Computer crime.--The term ``computer crime'' means--
                  (A) a crime committed against a small business 
                concern by means of the use of a computer; and
                  (B) a crime involving the illegal use of, or 
                tampering with, a computer owned or utilized by a small 
                business concern.
          (18) Contracting officer.--The term ``contracting officer'' 
        has the meaning given the term in section 27(f) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 423(f)).
          (19) Credit elsewhere.--The term ``credit elsewhere'', with 
        respect to a concern or homeowner, means sufficient credit that 
        is available from a non-Federal source on reasonable terms and 
        conditions taking into consideration the prevailing rates and 
        terms in the community in or near which the concern transacts 
        business or the homeowner resides, for similar purposes and 
        periods of time.
          (20) Defense agency.--The term ``defense agency'' has the 
        meaning given the term in section 101 of title 10.
          (21) Disabled individual.--The term ``disabled individual'' 
        means an individual who--
                  (A) has a physical, mental, or emotional impairment, 
                defect, ailment, disease, or disability of a permanent 
                nature that in any way limits the selection of any type 
                of employment for which the person would otherwise be 
                qualified or qualifiable; or
                  (B) is a service-disabled veteran.
          (22) Disabled veteran.--The term ``disabled veteran'' has the 
        meaning given the term in section 4211 of title 38.
          (23) Disadvantaged owner.--The term ``disadvantaged owner'' 
        has the meaning given the term in section 23101 of this title.
          (24) Disaster.--
                  (A) In general.--The term ``disaster'' means a sudden 
                event that causes severe damage.
                  (B) Inclusions.--The term ``disaster'' includes a 
                flood, hurricane, tornado, earthquake, fire, explosion, 
                volcano, windstorm, landslide or mudslide, tidal wave, 
                commercial fishery failure or fishery resource disaster 
                (as determined by the Secretary of Commerce under 
                section 308(b) of the Interjurisdictional Fisheries Act 
                of 1986 (16 U.S.C. 4107(b))), ocean condition resulting 
                in the closure of customary fishing water, riot, civil 
                disorder, or other catastrophe.
                  (C) Exclusion.--The term ``disaster'' does not 
                include an economic dislocation.
          (25) Disaster area.--The term ``disaster area'' means an area 
        affected by a natural or other disaster, as determined for 
        purposes of section 21301 or 21302 of this title, during the 
        period of the declaration.
          (26) Disaster assistance program.--The term ``disaster 
        assistance program'' means--
                  (A) the disaster loan program;
                  (B) the private disaster assistance program;
                  (C) the immediate disaster assistance program; and
                  (D) the expedited disaster assistance business loan 
                guarantee program.
          (27) Disaster loan program.--The term ``disaster loan 
        program'' means the program under chapter 213.
          (28) Economically disadvantaged indian tribe.--The term 
        ``economically disadvantaged Indian tribe'' has the meaning 
        given the term in section 23101 of this title.
          (29) Energy efficiency project.--The term ``energy efficiency 
        project'' means the installation or upgrading of equipment that 
        results in a significant reduction in energy usage.
          (30) Energy measure.--The term ``energy measure'' includes--
                  (A) solar thermal energy equipment that is--
                          (i) of the active type based on mechanically 
                        forced energy transfer;
                          (ii) of the passive type based on convective, 
                        conductive, or radiant energy transfer; or
                          (iii) a combination of the types described in 
                        clauses (i) and (ii);
                  (B) photovoltaic cells and related equipment;
                  (C) a product or service--
                          (i) the primary purpose of which is 
                        conservation of energy through a device or 
                        technique that increases the energy efficiency 
                        of existing equipment, methods of operation, or 
                        systems that use fossil fuel; and
                          (ii) that is on the Energy Conservation 
                        Measures list of the Secretary of Energy or 
                        that the Administrator determines to be 
                        consistent with the intent of this paragraph;
                  (D) equipment the primary purpose of which is 
                production of energy from wood, biological waste, 
                grain, or another biomass (as defined by the 
                Administrator) source of energy;
                  (E) equipment the primary purpose of which is 
                industrial cogeneration of energy, district heating, or 
                production of energy from industrial waste;
                  (F) hydroelectric power equipment;
                  (G) wind energy conversion equipment; and
                  (H) an engineering, architectural, consulting, or 
                other professional service that is necessary or 
                appropriate to aid citizens in using any of the 
                measures described in subparagraphs (A) to (G).
          (31) Expedited disaster assistance loan guarantee program.--
        The term ``expedited disaster assistance loan guarantee 
        program'' means the program under chapter 219.
          (32) Export working capital program.--The term ``export 
        working capital program'' means the program established under 
        section 20508 of this title.
          (33) Express lender.--The term ``express lender'' means a 
        lender authorized by the Administrator to participate in the 
        express loan program.
          (34) Express loan.--The term ``express loan'' means a loan 
        made pursuant to section 20320 of this title in which a lender 
        utilizes to the maximum extent practicable its own loan 
        analyses, procedures, and documentation.
          (35) Express loan program.--The term ``express loan program'' 
        means the program for express loans established by the 
        Administrator under section 7(a)(25)(B) of the Small Business 
        Act (15 U.S.C. 636(a)(25)(B)) (as in existence on April 5, 
        2004), with a guarantee rate of not more than 50 percent.
          (36) Federal agency.--Except in subtitles III and IV:
                  (A) In general.--The term ``Federal agency'' has the 
                meaning given the term ``agency'' in section 551 of 
                title 5.
                  (B) Exclusion.--The term ``Federal agency'' does not 
                include--
                          (i) the United States Postal Service; or
                          (ii) the Government Accountability Office.
          (37) General business loan program.--The term ``general 
        business loan program'' means the program under division B of 
        subtitle II.
          (38) Historically underutilized business zone.--The term 
        ``historically underutilized business zone'' has the meaning 
        given the term in section 25301 of this title.
          (39) Homeowner.--The term ``homeowner'' includes an owner or 
        lessee of residential property (including personal property of 
        the owner or lessee of the residential property).
          (40) HUBZone.--The term ``HUBZone'' has the meaning given the 
        term in section 25301 of this title.
          (41) HUBZone program.--The term ``HUBZone program'' means the 
        program under chapter 253.
          (42) HUBZone small business concern.--The term ``HUBZone 
        small business concern'' has the meaning given the term in 
        section 25301 of this title.
          (43) Immediate disaster assistance program.--The term 
        ``immediate disaster assistance program'' means the program 
        under chapter 217.
          (44) Indian reservation.--
                  (A) In general.--The term ``Indian reservation'' has 
                the meaning given the term ``Indian country'' in 
                section 1151 of title 18.
                  (B) Exclusions.--The term ``Indian reservation'' does 
                not include--
                          (i) land located in a State in which an 
                        Indian tribe did not exercise governmental 
                        jurisdiction on December 21, 2000, unless that 
                        Indian tribe is recognized after December 21, 
                        2000, by either an Act of Congress or pursuant 
                        to regulations of the Secretary of the Interior 
                        for the administrative recognition that an 
                        Indian group exists as an Indian tribe (part 83 
                        of title 25, Code of Federal Regulations); or
                          (ii) land taken into trust or acquired by an 
                        Indian tribe after December 21, 2000, if the 
                        land--
                                  (I) is not located within the 
                                external boundaries of an Indian 
                                reservation or former reservation; or
                                  (II) is not contiguous to the land 
                                held in trust or restricted status on 
                                December 21, 2000.
                  (C) Land in oklahoma.--With respect to land in the 
                State of Oklahoma, the term ``Indian reservation'' 
                means land that--
                          (i) is within the jurisdictional areas of an 
                        Oklahoma Indian tribe (as determined by the 
                        Secretary of the Interior); and
                          (ii) is recognized by the Secretary of the 
                        Interior as eligible for trust land status 
                        under part 151 of title 25, Code of Federal 
                        Regulations (as in effect on December 21, 
                        2000).
          (45) Major disaster.--The term ``major disaster'' has the 
        meaning given the term in section 102 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).
          (46) Major disaster area.--The term ``major disaster area'' 
        means the area for which a major disaster is declared.
          (47) Microloan program.--The term ``microloan program'' means 
        the program under chapter 211.
          (48) Military department.--The term ``military department'' 
        has the meaning given the term in section 101 of title 10.
          (49) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' means a community service organization 
        serving Native Hawaiians in the State of Hawaii--
                  (A) that is a nonprofit corporation that has filed 
                articles of incorporation with the director of the 
                Hawaii Department of Commerce and Consumer Affairs, or 
                any successor agency;
                  (B) that is controlled by Native Hawaiians; and
                  (C) the business activities of which will principally 
                benefit Native Hawaiians in the State of Hawaii.
          (50) New markets venture capital company program.--The term 
        ``new markets venture capital company program'' means the 
        program under chapter 305.
          (51) Non-federally regulated lender.--The term ``non-
        federally regulated lender'' means a business concern (other 
        than a small business lending company)--
                  (A) that is authorized by the Administrator to make 
                loans under the general business loan program;
                  (B) that is subject to regulation by a State; and
                  (C) the lending activities of which are not regulated 
                by any Federal banking authority.
          (52) Preferred lender.--The term ``preferred lender'' means a 
        lender participating in the preferred lenders program.
          (53) Preferred lenders program.--The term ``preferred lenders 
        program'' means the preferred lenders program carried out under 
        section 10332(f)(3) of this title.
          (54) Premier certified lenders program.--The term ``premier 
        certified lenders program'' means the program under section 
        33108 of this title.
          (55) PRIME program.--The term ``PRIME program'' means the 
        program under chapter 401.
          (56) Private disaster assistance program.--The term ``private 
        disaster assistance program'' means the program under chapter 
        215.
          (57) Procuring agency.--The term ``procuring agency'' means a 
        Federal agency that has procurement power.
          (58) Public or private organization for the disabled.--The 
        term ``public or private organization for the disabled'' means 
        an organization--
                  (A) that is organized under the laws of the United 
                States or of a State;
                  (B) that is operated in the interest of disabled 
                individuals;
                  (C) the net income of which does not inure in whole 
                or in part to the benefit of any shareholder or other 
                individual;
                  (D) that complies with any applicable occupational 
                health and safety standard prescribed by the Secretary 
                of Labor; and
                  (E) that, in the production of commodities and in the 
                provision of services during any fiscal year in which 
                the organization received financial assistance under 
                the general business loan program, employs disabled 
                individuals for not less than 75 percent of the man-
                hours required for the production or provision of the 
                commodities or services.
          (59) Qualified census tract.--The term ``qualified census 
        tract'' has the meaning given the term in section 
        42(d)(5)(C)(ii) of the Internal Revenue Code of 1986 (26 U.S.C. 
        42(d)(5)(C)(ii)).
          (60) Qualified employee trust.--The term ``qualified employee 
        trust'' has the meaning given the term in section 20509(a) of 
        this title.
          (61) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given the term in section 25301 of this title.
          (62) Qualified indian tribe.--The term ``qualified Indian 
        tribe'' means an Indian tribe (as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)) that owns and controls 100 percent of a small 
        business concern.
          (63) Qualified nonmetropolitan county.--The term ``qualified 
        nonmetropolitan county'' has the meaning given the term in 
        section 25301 of this title.
          (64) Redesignated area.--The term ``redesignated area'' has 
        the meaning given the term in section 25301 of this title.
          (65) Renewable energy system.--The term ``renewable energy 
        system'' means a system of energy derived from--
                  (A) a wind, solar, biomass (including biodiesel), or 
                geothermal source; or
                  (B) hydrogen derived from biomass or water using an 
                energy source described in subparagraph (A).
          (66) Renewable fuel capital investment pilot program.--The 
        term ``renewable fuel capital investment pilot program'' means 
        the program under chapter 307.
          (67) Reservist.--The term ``reservist'' means a member of a 
        reserve component of the Armed Forces, as described in section 
        101 of title 10.
          (68) SCORE.--The term ``SCORE'' means the volunteer program 
        known as SCORE.
          (69) Service-disabled veteran.--The term ``service-disabled 
        veteran'' means a veteran with a disability that is service-
        connected (as defined in section 101 of title 38).
          (70) Simplified acquisition threshold.--The term ``simplified 
        acquisition threshold'' has the meaning given the term in 
        section 4 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 403).
          (71) Small agricultural cooperative.--
                  (A) In general.--The term ``small agricultural 
                cooperative'' means an association (corporate or 
                otherwise) acting pursuant to the Agricultural 
                Marketing Act (12 U.S.C. 1141j) the size of which does 
                not exceed the size standard established by the 
                Administrator for other similar agricultural small 
                business concerns.
                  (B) Size determination.--In determining the size of 
                an association described in subparagraph (A), the 
                Administrator--
                          (i) shall regard the association as a 
                        business concern; and
                          (ii) shall not include the income or 
                        employees of any member shareholder of the 
                        association.
          (72) Small business competitiveness demonstration program.--
        The term ``small business competitiveness demonstration 
        program'' means the program under chapter 249.
          (73) Small business concern.--
                  (A) In general.--The term ``small business concern'' 
                means a business concern (including an agricultural 
                enterprise) that--
                          (i) is independently owned and operated; and
                          (ii) is not dominant in its field of 
                        operation.
                  (B) Inclusions.--Notwithstanding any other provision 
                of law, an agricultural enterprise that has annual 
                receipts (including receipts of its affiliates) not in 
                excess of $750,000 shall be deemed to be a small 
                business concern.
                  (C) Establishment of size standards.--
                          (i) In general.--In addition to the criteria 
                        specified in subparagraph (A), the 
                        Administrator may specify detailed definitions 
                        or standards by which a business concern may be 
                        determined to be a small business concern for 
                        the purposes of this title or any other law.
                          (ii) Additional criteria.--The standards 
                        described in clause (i) may use--
                                  (I) number of employees, dollar 
                                volume of business, net worth, net 
                                income, or a combination thereof; or
                                  (II) other appropriate factors.
                          (iii) Requirements for prescription of size 
                        standard.--Unless specifically authorized by 
                        statute, no Federal agency may prescribe a size 
                        standard for categorizing a business concern as 
                        a small business concern unless the proposed 
                        size standard--
                                  (I) is proposed after an opportunity 
                                for public notice and comment;
                                  (II) provides for determining--
                                          (aa) the size of a 
                                        manufacturing concern as 
                                        measured by the manufacturing 
                                        concern's average employment 
                                        based on employment during each 
                                        of the manufacturing concern's 
                                        pay periods for the preceding 
                                        12 months;
                                          (bb) the size of a business 
                                        concern providing services on 
                                        the basis of the annual average 
                                        gross receipts of the business 
                                        concern over a period of not 
                                        less than 3 years;
                                          (cc) the size of other 
                                        business concerns on the basis 
                                        of data over a period of not 
                                        less than 3 years; or
                                          (dd) other appropriate 
                                        factors; and
                                  (III) is approved by the 
                                Administrator.
                          (iv) Factors to be considered.--In 
                        establishing or approving a size standard under 
                        this subparagraph, the Administrator shall--
                                  (I) ensure that the size standard 
                                varies from industry to industry to the 
                                extent necessary to reflect the 
                                differing characteristics of the 
                                various industries; and
                                  (II) consider other factors that the 
                                Administrator considers to be relevant.
                          (v) Listing of additional size standards.--
                        The Administrator shall prescribe regulations 
                        to carry out this subparagraph. The regulations 
                        shall include a listing of all small business 
                        size standards prescribed by statute or by 
                        individual Federal agencies, identifying the 
                        programs or purposes to which the size 
                        standards apply.
          (74) Small business concern owned and controlled by service-
        disabled veterans.--The term ``small business concern owned and 
        controlled by service-disabled veterans'' means a small 
        business concern--
                  (A) not less than 51 percent of which is owned by one 
                or more service-disabled veterans; and
                  (B) the management and daily business operations of 
                which are controlled by--
                          (i) one or more service-disabled veterans; or
                          (ii) in the case of a veteran with permanent 
                        and severe disability, the spouse or permanent 
                        caregiver of the veteran.
          (75) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--The term ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the meaning given 
        the term in section 23101 of this title.
          (76) Small business concern owned and controlled by 
        veterans.--The term ``small business concern owned and 
        controlled by veterans'' means a small business concern--
                  (A) not less than 51 percent of which is owned by one 
                or more veterans; and
                  (B) the management and daily business operations of 
                which are controlled by one or more veterans.
          (77) Small business concern owned and controlled by women.--
        The term ``small business concern owned and controlled by 
        women'' means a small business concern--
                  (A)(i) at least 51 percent of which is owned by one 
                or more women; or
                  (ii) in the case of a publicly owned business, at 
                least 51 percent of the stock of which is owned by one 
                or more women; and
                  (B) the management and daily business operations of 
                the business of which are controlled by one or more 
                women.
          (78) Small business development center.--The term ``small 
        business development center'' means a small business 
        development center that receives financial assistance under 
        chapter 271.
          (79) Small business development center program.--The term 
        ``small business development center program'' means the small 
        business development center program under chapter 271.
          (80) Small business investment company program.--The term 
        ``small business investment company program'' means the program 
        under chapter 303.
          (81) Small business lending company.--The term ``small 
        business lending company'' means a business concern--
                  (A) that is authorized by the Administrator to make 
                loans under the general business loan program; and
                  (B) the lending activities of which are not subject 
                to regulation by any Federal or State regulatory 
                agency.
          (82) Socially and economically disadvantaged individual.--The 
        term ``socially and economically disadvantaged individual'' has 
        the meaning given the term in section 23101 of this title.
          (83) Socially disadvantaged individual.--The term ``socially 
        disadvantaged individual'' has the meaning given the term in 
        section 23101 of this title.
          (84) Surety bond guarantee program.--The term ``surety bond 
        guarantee program'' means the program under chapter 321.
          (85) United states.--The term ``United States'' includes the 
        States, the District of Columbia, Puerto Rico, and the 
        territories and possessions of the United States.
          (86) Veteran.--The term ``veteran'' has the meaning given the 
        term in section 101 of title 38.
          (87) Women's business center.--The term ``women's business 
        center'' means a women's business center operating under 
        chapter 273.
          (88) Women's business center program.--The term ``women's 
        business center program'' means the women's business center 
        program under chapter 273.
Sec. 10102. Declarations
  All declarations of findings, purposes, or policies enacted in 
connection with the enactment of any source law for this title, as 
originally enacted, or in connection with any amendment to this title, 
are incorporated in this title by reference.

               CHAPTER 103--SMALL BUSINESS ADMINISTRATION

                       Subchapter I--Organization

Sec.
10301.  Establishment.
10302.  Administrator.
10303.  Deputy Administrator.
10304.  Associate Administrators.
10305.  Personnel.
10306.  Small Business Investment Division.
10307.  Office of Advocacy.
10308.  Division of Program Certification and Eligibility.
10309.  Office of International Trade.
10310.  Office of Rural Affairs.
10311.  Office of Women's Business Ownership.
10312.  Small Business and Agriculture Regulatory Enforcement Ombudsman; 
          regional small business regulatory fairness boards.
10313.  Office of Veterans Business Development.
10314.  Task force on purchases from the blind and severely disabled.
10315.  Advisory committees.
10316.  Bureau of PCLP Oversight.

                        Subchapter II--Functions

10331.  General powers.
10332.  Financial management.
10333.  Small business economic database.
10334.  Small business computer security and education program.
10335.  General policies governing the granting and denial of 
          applications.
10336.  Retention of records.
10337.  Consultation and cooperation with other Federal agencies.
10338.  Representation of status as small business concern.
10339.  Criminal background checks.

                       Subchapter I--Organization

Sec. 10301. Establishment
  (a) In General.--There is established to carry out the authorities 
committed to the Administrator under this title and other law an agency 
to be known as the Small Business Administration.
  (b) Independent Establishment.--The Administration shall be under the 
general direction and supervision of the President and shall not be 
affiliated with or be within any other Federal agency.
  (c) Offices.--The principal office of the Administration shall be 
located in the District of Columbia. The Administrator may establish 
such branch and regional offices in other places in the United States 
as the Administrator may determine.
Sec. 10302. Administrator
  (a) In General.--The management of the Administration shall be vested 
in an Administrator who shall be appointed from civilian life by the 
President, by and with the advice and consent of the Senate, and who 
shall be a person of outstanding qualifications known to be familiar 
and sympathetic with small business needs and problems.
  (b) Full-Time Position.--The Administrator shall not engage in any 
business, vocation, or employment other than that of serving as 
Administrator.
Sec. 10303. Deputy Administrator
  (a) In General.--The President may appoint a Deputy Administrator of 
the Administration, by and with the advice and consent of the Senate.
  (b) Duties.--The Deputy Administrator shall be Acting Administrator 
of the Administration during the absence or disability of the 
Administrator or in the event of a vacancy in the office of 
Administrator.
Sec. 10304. Associate Administrators
  (a) In General.--The Administrator may appoint 5 Associate 
Administrators (including the Associate Administrator specified in 
10306 of this title) to assist in the execution of the functions vested 
in the Administrator.
  (b) Associate Administrator for Veterans Business Development.--
          (1) In general.--One Associate Administrator appointed under 
        subsection (a) shall be the Associate Administrator for 
        Veterans Business Development.
          (2) Position.--The Associate Administrator for Veterans 
        Business Development shall be an appointee in the Senior 
        Executive Service.
          (3) Reporting.--The Associate Administrator for Veterans 
        Business Development shall report to and be responsible 
        directly to the Administrator.
          (4) Duties.--The Associate Administrator for Veterans 
        Business Development shall administer the Office of Veterans 
        Business Development established under section 10313 of this 
        title.
  (c) Associate Administrator for Minority Small Business and Capital 
Ownership Development.--
          (1) In general.--One of the Associate Administrators shall be 
        designated at the time of appointment as the Associate 
        Administrator for Minority Small Business and Capital Ownership 
        Development.
          (2) Position.--The Associate Administrator for Minority Small 
        Business and Capital Ownership Development shall be an employee 
        in the competitive service or a career appointee in the Senior 
        Executive Service, and the position of Associate Administrator 
        for Minority Small Business and Capital Ownership Development 
        shall be a career reserved position.
          (3) Duties.--
                  (A) Formulation and coordination of policies.--The 
                Associate Administrator for Minority Small Business and 
                Capital Ownership Development shall be responsible for 
                formulating and coordinating policies relating to 
                Federal assistance to small business concerns eligible 
                for assistance under section 20504 of this title and 
                small business concerns eligible to receive contracts 
                under the business development program.
                  (B) Business development program.--The Associate 
                Administrator for Minority Small Business and Capital 
                Ownership Development shall be responsible to the 
                Administrator for the formulation, execution, and 
                management of the business development program 
                (including the making of determinations under 
                paragraphs (8), (15), (16), and (17) of section 23101 
                of this title and sections 23310, 23312(a)(1), and 
                23318(g) of this title), under the supervision of the 
                Administrator.
  (d) Associate Administrator for Small Business Development Centers.--
          (1) Appointment and compensation.--The Administrator shall 
        appoint an Associate Administrator for Small Business 
        Development Centers who shall--
                  (A) report to an official who is not more than one 
                level below the Office of the Administrator; and
                  (B) serve without regard to the provisions of title 5 
                governing appointments in the competitive service, and 
                without regard to chapter 51 and subchapter III of 
                chapter 53 of that title relating to classification and 
                General Schedule pay rates, but at a rate not less than 
                the rate of pay for a position classified above GS-15 
                pursuant to section 5108 of title 5.
          (2) Duties.--
                  (A) In general.--The sole responsibility of the 
                Associate Administrator for Small Business Development 
                Centers shall be to administer the small business 
                development center program.
                  (B) Duties included.--Duties of the position shall 
                include--
                          (i) recommending the annual budget for the 
                        small business development center program;
                          (ii) reviewing the annual budgets submitted 
                        by each applicant under the small business 
                        development center program;
                          (iii) establishing appropriate funding levels 
                        for applicants under the small business 
                        development center program;
                          (iv) selecting applicants to participate in 
                        the small business development center program;
                          (v) implementing chapter 271;
                          (vi) maintaining a clearinghouse to provide 
                        for the dissemination and exchange of 
                        information between small business development 
                        centers; and
                          (vii) conducting audits of recipients of 
                        grants under chapter 241.
          (3) Consultation.--
                  (A) In general.--In carrying out the duties described 
                in this subsection, the Associate Administrator for 
                Small Business Development Centers shall confer with 
                and seek the advice of the National Small Business 
                Development Center Advisory Board and Administration 
                officials in areas served by the small business 
                development centers.
                  (B) Responsibility.--Notwithstanding subparagraph 
                (A), the Associate Administrator shall be responsible 
                for the management and administration of the program 
                and shall not be subject to the approval or concurrence 
                of Administration officials described in subparagraph 
                (A).
Sec. 10305. Personnel
  (a) In General.--The Administrator may, subject to the civil service 
and classification laws--
          (1) select, employ, appoint, and fix the compensation of such 
        officers, employees, attorneys, and agents as are necessary to 
        carry out this title;
          (2) define their authority and duties; and
          (3) pay the costs of qualification of certain of them as 
        notaries public.
  (b) Individuals Employed To Render Temporary Services in Connection 
With a Disaster.--
          (1) In general.--The Administrator may pay the transportation 
        expenses and per diem in lieu of subsistence expenses, in 
        accordance with subchapter I of chapter 57 of title 5, for 
        travel of any individual employed by the Administration to 
        render temporary services not in excess of 6 months in 
        connection with a disaster from place of appointment to, and 
        while at, the disaster area and any other temporary posts of 
        duty and return on completion of the assignment.
          (2) Extension of term.--The Administrator may extend the six-
        month limitation under paragraph (1) for an additional 6 months 
        if the Administrator determines that the extension is necessary 
        to continue efficient disaster loan making activities.
  (c) Experts and Consultants.--
          (1) In general.--To such extent as the Administrator finds 
        necessary to carry out this title, the Administrator may 
        procure the temporary (not in excess of one year) or 
        intermittent services of experts or consultants (including 
        stenographic reporting services) by contract or appointment.
          (2) Inapplicability of other law.--Service procured under 
        paragraph (1)--
                  (A) shall be without regard to the civil service and 
                classification laws; and
                  (B) except in the case of stenographic reporting 
                services by an organization, shall be without regard to 
                section 3709 of the Revised Statutes (41 U.S.C. 5).
          (3) Compensation.--An individual employed under paragraph 
        (1)--
                  (A) may be compensated at a rate not in excess of the 
                daily equivalent of the maximum rate payable under 
                section 5376 of title 5, including travel time; and
                  (B) while away from the individual's home or regular 
                place of business, may be allowed travel expenses 
                (including per diem in lieu of subsistence) as 
                authorized by section 5703 of title 5.
Sec. 10306. Small Business Investment Division
  (a) Establishment.--There is established in the Administration a 
division to be known as the Small Business Investment Division.
  (b) Associate Administrator.--The Small Business Investment Division 
shall be headed by an Associate Administrator appointed by the 
Administrator.
  (c) Compensation.--The Associate Administrator shall receive 
compensation at the rate provided by law for other Associate 
Administrators of the Administration.
Sec. 10307. Office of Advocacy
  (a) Definitions.--In this section:
          (1) Chief counsel.--The term ``Chief Counsel'' means the 
        Chief Counsel for Advocacy appointed under subsection (c).
          (2) Office.--The term ``Office'' means the Office of Advocacy 
        established by subsection (b).
  (b) Establishment.--There is established within the Administration an 
Office of Advocacy.
  (c) Chief Counsel for Advocacy.--The management of the Office shall 
be vested in a Chief Counsel for Advocacy, who shall be appointed from 
civilian life by the President, by and with the advice and consent of 
the Senate.
  (d) Primary Functions.--The primary functions of the Chief Counsel 
shall be to--
          (1) examine the role of small business in the American 
        economy and the contribution that small business can make in 
        improving competition, encouraging economic and social mobility 
        for all citizens, restraining inflation, spurring production, 
        expanding employment opportunities, increasing productivity, 
        promoting exports, stimulating innovation and entrepreneurship, 
        and providing an avenue through which new and untested products 
        and services can be brought to the marketplace;
          (2) assess the effectiveness of Federal subsidy and 
        assistance programs for small business and the desirability of 
        reducing the emphasis on such programs and increasing the 
        emphasis on general assistance programs designed to benefit all 
        small business concerns;
          (3)(A) measure the direct costs and other effects of 
        government regulation on small business concerns; and
          (B) make legislative and nonlegislative proposals for 
        eliminating excessive or unnecessary regulation of small 
        business concerns;
          (4) determine the impact of the tax structure on small 
        business concerns and make legislative and other proposals for 
        altering the tax structure to enable all small business 
        concerns to realize their potential for contributing to the 
        improvement of the Nation's economic well-being;
          (5) study the ability of financial markets and institutions 
        to meet small business credit needs and determine the impact of 
        government demands for credit on small business concerns;
          (6) determine financial resource availability and recommend 
        methods for delivery of financial assistance to minority 
        enterprises, including methods for--
                  (A) securing equity capital;
                  (B) generating markets for goods and services;
                  (C) providing effective business education, more 
                effective management and technical assistance, and 
                training; and
                  (D) providing assistance in complying with Federal, 
                State, and local law;
          (7) evaluate the efforts of Federal agencies, business, and 
        industry to assist minority business concerns;
          (8) make such recommendations as may be appropriate to assist 
        the development and strengthening of minority and other small 
        business concerns;
          (9)(A) recommend specific measures for creating an 
        environment in which all businesses will have the opportunity 
        to compete effectively and expand to their full potential; and
          (B) ascertain the common reasons, if any, for small business 
        successes and failures;
          (10)(A) determine the desirability of developing a set of 
        rational, objective criteria to be used to define small 
        business; and
          (B) develop such criteria, if appropriate; and
          (11)(A) evaluate the efforts of each Federal agency, and of 
        private industry, to assist small business concerns owned and 
        controlled by veterans and small business concerns owned and 
        controlled by service-disabled veterans;
          (B) provide statistical information on the use of such 
        programs by small business concerns owned and controlled by 
        veterans and small business concerns owned and controlled by 
        service-disabled veterans; and
          (C) make appropriate recommendations to the Administrator and 
        to Congress to promote the establishment and growth of small 
        business concerns owned and controlled by veterans and small 
        business concerns owned and controlled by service-disabled 
        veterans.
  (e) Duties To Be Performed on a Continuing Basis.--
          (1) In general.--The Chief Counsel shall perform the duties 
        described in this subsection on a continuing basis.
          (2) Complaints, criticisms, and suggestions.--The Chief 
        Counsel shall serve as a focal point for the receipt of 
        complaints, criticisms, and suggestions concerning the policies 
        and activities of the Administration and any other Federal 
        agency that affects small business concerns.
          (3) Counseling.--The Chief Counsel shall counsel small 
        business concerns on how to resolve questions and problems 
        concerning the relationship of the small business to the 
        Federal Government.
          (4) Proposals for change.--The Chief Counsel shall--
                  (A) develop proposals for changes in the policies and 
                activities of any Federal agency that will better 
                fulfill the purposes of subtitle II; and
                  (B) communicate the proposals to the appropriate 
                Federal agencies.
          (5) Representation of views and interests.--The Chief Counsel 
        shall represent the views and interests of small business 
        concerns before other Federal agencies the policies and 
        activities of which may affect small business.
          (6) Dissemination of information.--The Chief Counsel shall 
        enlist the cooperation and assistance of public and private 
        agencies, businesses, and other organizations in 
        disseminating--
                  (A) information about the programs and services 
                provided by the Federal Government that are of benefit 
                to small business concerns; and
                  (B) information on how small business concerns can 
                participate in or make use of those programs and 
                services.
  (f) Rural Tourism Training Program.--In conjunction with the Office 
of Rural Affairs and appropriate personnel designated by each district 
office of the Administration, the Chief Counsel shall conduct training 
sessions on the types of Federal assistance available for the 
development of rural small business concerns engaged in tourism and 
tourism-related activities.
  (g) Powers.--In carrying out this section, the Chief Counsel may--
          (1) employ and fix the compensation of such additional staff 
        personnel as the Chief Counsel considers necessary, without 
        regard to the provisions of title 5, governing appointments in 
        the competitive service, and without regard to chapter 51 or 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates but at rates not 
        in excess of the lowest rate for GS-15 of the General Schedule, 
        except that not more than 14 staff personnel at any one time 
        may be employed and compensated at a rate not in excess of GS-
        15, step 10, of the General Schedule;
          (2) procure temporary and intermittent services to the same 
        extent as is authorized by section 3109 of title 5;
          (3) consult--
                  (A) with experts and authorities in the fields of 
                small business investment, venture capital, and 
                investment and commercial banking and with other 
                comparable lending institutions involved in the 
                financing of business;
                  (B) with individuals with regulatory, legal, 
                economic, or financial expertise, including members of 
                the academic community; and
                  (C) with individuals who generally represent the 
                public interest;
          (4)(A) use the services of the National Advisory Council 
        established under section 10315 of this title; and
          (B) in accordance with that section, appoint such other 
        advisory boards or committees as the Chief Counsel considers 
        reasonably appropriate and necessary to carry out this section; 
        and
          (5) hold hearings and sit and act at such times and places as 
        the Chief Counsel considers advisable.
  (h) Assistance of Federal Agencies.--Each Federal agency shall 
furnish the Chief Counsel such reports and other information as the 
Chief Counsel considers necessary to carry out this section.
  (i) Reports.--The Chief Counsel may from time to time prepare and 
publish such reports as the Chief Counsel considers appropriate.
Sec. 10308. Division of Program Certification and Eligibility
  (a) Definitions.--In this section:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Minority 
        Small Business and Capital Ownership Development.
          (2) Director.--The term ``Director'' means the Director of 
        the Division.
          (3) Division.--The term ``Division'' means the Division of 
        Program Certification and Eligibility established by subsection 
        (b).
  (b) Establishment.--There is established in the Office of Minority 
Small Business and Capital Ownership Development a Division of Program 
Certification and Eligibility.
  (c) Director.--The Division shall be headed by a Director, who shall 
report directly to the Associate Administrator.
  (d) Field Offices.--The Director shall establish field offices within 
such regional offices of the Administration as are necessary to perform 
efficiently the functions and responsibilities of the Director.
  (e) Duties.--The duties of the Director are--
          (1) to receive, review, and evaluate applications for 
        certification under the business development program;
          (2) to advise a business development program applicant within 
        15 days after receipt of an application whether the application 
        is complete and suitable for evaluation and, if not, what 
        matters must be rectified;
          (3) to make recommendations on such applications to the 
        Associate Administrator;
          (4) to review and evaluate financial statements and other 
        submissions from small business concerns participating in the 
        business development program to ascertain continued eligibility 
        to receive subcontracts under the business development program;
          (5) to make a request for the initiation of termination or 
        graduation proceedings, as appropriate, to the Associate 
        Administrator;
          (6) to make recommendations to the Associate Administrator 
        concerning protests from applicants that are denied admission 
        to the business development program;
          (7) to decide protests regarding the status of a small 
        business concern as a small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals for purposes of any program or activity conducted 
        under chapter 243 or any other provision of Federal law that 
        refers to that chapter for a definition of eligibility for any 
        program; and
          (8) to implement such policy directives as are issued by the 
        Associate Administrator under section 23326 of this title 
        regarding, among other things, the geographic distribution of 
        small business concerns to be admitted to the business 
        development program and the industrial makeup of those small 
        business concerns.
  (f) Decisions on Protests.--
          (1) In general.--A decision under subsection (e)(7) shall--
                  (A) be made available to the protestor, the protested 
                party, the contracting officer (if not the protestor), 
                and all other parties to the proceeding, and published 
                in full text; and
                  (B) include findings of fact and conclusions of law, 
                with specific reasons supporting the findings or 
                conclusions, on each material issue of fact and law of 
                decisional significance regarding the disposition of 
                the protest.
          (2) Precedential value of prior decisions.--A decision under 
        subsection (e)(7) that was issued before September 4, 1992, 
        shall not have value as precedent in deciding any subsequent 
        protest until the decision is published in full text.
Sec. 10309. Office of International Trade
  (a) Definition of Office.--In this section, the term ``Office'' means 
the Office of International Trade.
  (b) Establishment of Office.--There is established within the 
Administration an Office of International Trade, which shall implement 
the programs under this section.
  (c) Distribution Network; Marketing of Programs and Dissemination of 
Information; Bilingual Job Applicants.--
          (1) In general.--The Office, working in close cooperation 
        with the Department of Commerce and other Federal agencies, 
        small business development centers engaged in export promotion 
        efforts, regional and local Administration offices, the small 
        business community, and State and local export promotion 
        programs, shall--
                  (A) assist in developing a distribution network for 
                existing trade promotion, trade finance, trade 
                adjustment, trade remedy assistance and trade data 
                collection programs through use of the Administration's 
                regional and local offices and the small business 
                development center network;
                  (B) assist in the aggressive marketing of the 
                programs described in subparagraph (A) and the 
                dissemination of marketing information, including 
                computerized marketing data, to the small business 
                community; and
                  (C) give preference in hiring or approving the 
                transfer of any employee into the Office or to a 
                position described in subsection (d)(2)(H) to otherwise 
                qualified applicants who are fluent in a language in 
                addition to English.
          (2) Bilingual employees.--Bilingual employees hired or 
        transferred under paragraph (1)(C)--
                  (A) shall accompany foreign trade missions if 
                designated by the director of the Office; and
                  (B) shall be available as needed to translate 
                documents, interpret conversations, and facilitate 
                multilingual transactions including providing referral 
                lists for translation services if required.
  (d) Promotion of Sales Opportunities for Goods and Services Abroad.--
          (1) In general.--The Office shall promote sales opportunities 
        for small business goods and services abroad.
          (2) Activities.--To accomplish the objective stated in 
        paragraph (1), the Office shall--
                  (A) in cooperation with the Department of Commerce, 
                other Federal agencies, regional and local 
                Administration offices, the small business development 
                center network, and State programs, develop a mechanism 
                for--
                          (i) identifying subsectors of the small 
                        business community with strong export 
                        potential;
                          (ii) identifying areas of demand in foreign 
                        markets;
                          (iii) prescreening foreign buyers for 
                        commercial and credit purposes; and
                          (iv) assisting in increasing international 
                        marketing by disseminating relevant information 
                        regarding market leads, linking potential 
                        sellers and buyers, and catalyzing the 
                        formation of joint ventures, where appropriate;
                  (B) in cooperation with the Department of Commerce, 
                actively assist small business concerns in the 
                formation and utilization of export trading companies, 
                export management companies and research and 
                development pools authorized under division H of 
                subtitle II;
                  (C) work in conjunction with other Federal agencies, 
                regional and local offices of the Administration, the 
                small business development center network, and the 
                private sector to identify and publicize existing 
                translation services, including those available through 
                colleges and universities participating in the small 
                business development center program;
                  (D) work closely with the Department of Commerce and 
                other relevant Federal agencies to--
                          (i)(I) collect, analyze and periodically 
                        update relevant data regarding the small 
                        business share of United States exports and the 
                        nature of State exports (including the 
                        production of Gross State Product figures); and
                          (II) disseminate those data to the public and 
                        to Congress;
                          (ii) make recommendations to the Secretary of 
                        Commerce and to Congress regarding revision of 
                        the North American Industry Classification 
                        System codes to encompass industries currently 
                        overlooked and to create North American 
                        Industry Classification System codes for export 
                        trading companies and export management 
                        companies;
                          (iii) improve the utility and accessibility 
                        of existing export promotion programs for small 
                        business concerns; and
                          (iv) increase the accessibility of the Export 
                        Trading Company contact facilitation service of 
                        the Department of Commerce;
                  (E) make available to the small business community 
                information regarding conferences on exporting and 
                international trade sponsored by the public and private 
                sectors;
                  (F) provide small business concerns with access to 
                current and complete export information by--
                          (i) making available, at the Administration's 
                        regional offices through cooperation with the 
                        Department of Commerce, export information, 
                        including the worldwide information and trade 
                        system and world trade data reports;
                          (ii) maintaining a current list of financial 
                        institutions that finance export operations;
                          (iii) maintaining a current directory of all 
                        Federal, regional, State and private sector 
                        programs that provide export information and 
                        assistance to small business concerns; and
                          (iv) preparing and publishing such reports as 
                        the Office determines to be necessary 
                        concerning market conditions, sources of 
                        financing, export promotion programs, and other 
                        information pertaining to the needs of 
                        exporting small business concerns so as to 
                        ensure that the maximum information is made 
                        available to small business concerns in a 
                        readily usable form;
                  (G) in cooperation with the Department of Commerce, 
                encourage greater participation by small business 
                concerns in trade fairs, shows, missions, and other 
                domestic and overseas export development activities of 
                the Department of Commerce; and
                  (H) facilitate decentralized delivery of export 
                information and assistance to small business concerns 
                by--
                          (i) assigning full-time export development 
                        specialists to each Administration regional 
                        office; and
                          (ii) assigning primary responsibility for 
                        export development to one person in each 
                        district office.
          (3) Duties of export development specialists and district 
        personnel assigned primary responsibility for export 
        development.--An export development specialist assigned to an 
        Administration regional office under paragraph (2)(H)(i) and a 
        person in a district assigned primary responsibility for export 
        development shall--
                  (A) assist small business concerns in obtaining 
                export information and assistance from other Federal 
                agencies;
                  (B) maintain a current directory of all programs that 
                provide export information and assistance to small 
                business concerns in the region;
                  (C) encourage financial institutions to develop and 
                expand programs for export financing;
                  (D) provide advice to Administration personnel 
                involved in granting loans, loan guarantees, and 
                extensions and revolving lines of credit and providing 
                other forms of assistance to small business concerns 
                engaged in exporting; and
                  (E) within 180 days after being appointed as an 
                export development specialist, participate in a 
                training program designed by the Administrator, in 
                conjunction with the Department of Commerce and other 
                Federal agencies, to study export programs and to 
                examine the needs of small business concerns for export 
                information and assistance.
  (e) Access to Export and Pre-export Financing Programs.--
          (1) In general.--The Office shall work in cooperation with 
        the Export-Import Bank of the United States, the Department of 
        Commerce, other Federal agencies, and the States to develop a 
        program through which export specialists in the regional 
        offices of the Administration, regional and local loan 
        officers, and small business development center personnel can 
        facilitate the access of small business concerns to relevant 
        export financing programs of the Export-Import Bank of the 
        United States and to export and pre-export financing programs 
        available from the Administration and the private sector.
          (2) Activities.--To accomplish the goal stated in paragraph 
        (1), the Office shall work in cooperation with the Export-
        Import Bank of the United States and the small business 
        community, including small business trade associations, to--
                  (A) aggressively market existing Administration 
                export financing and pre-export financing programs;
                  (B) identify financing available under various 
                programs of the Export-Import Bank of the United 
                States, and aggressively market those programs to small 
                business concerns;
                  (C) assist in the development of financial 
                intermediaries and facilitate the access of those 
                intermediaries to existing financing programs;
                  (D) promote greater participation by private 
                financial institutions, particularly those institutions 
                already participating in loan programs under subtitle 
                II, in export finance; and
                  (E) provide for the participation of appropriate 
                Administration personnel in training programs conducted 
                by the Export-Import Bank of the United States.
  (f) Trade Proceedings.--The Office shall--
          (1) work in cooperation with other Federal agencies and the 
        private sector to counsel small business concerns with respect 
        to initiating and participating in any proceedings relating to 
        the administration of the United States trade laws; and
          (2) work with the Department of Commerce, the Office of the 
        United States Trade Representative, and the International Trade 
        Commission to increase access to trade remedy proceedings for 
        small business concerns.
Sec. 10310. Office of Rural Affairs
  (a) Definition of Office.--In this section, the term ``Office'' means 
the Office of Rural Affairs.
  (b) Establishment of Office.--There is established in the 
Administration an Office of Rural Affairs.
  (c) Director.--The Office shall be headed by a director appointed by 
the Administrator.
  (d) Functions.--The Office shall--
          (1) strive to achieve an equitable distribution of the 
        financial assistance available from the Administration for 
        small business concerns located in rural areas;
          (2) to the extent practicable, compile annual statistics on 
        rural areas, including statistics concerning the population, 
        poverty, job creation and retention, unemployment, business 
        failures, and business startups;
          (3) provide information to industries, organizations, and 
        State and local governments concerning the assistance available 
        to rural small business concerns through the Administration and 
        through other Federal agencies;
          (4) provide information to industries, organizations, 
        educational institutions, and State and local governments 
        concerning programs administered by private organizations, 
        educational institutions, and Federal, State, and local 
        governments that improve the economic opportunities of rural 
        citizens; and
          (5) work with the United States National Tourism Organization 
        to assist small business concerns in rural areas with tourism 
        promotion and development.
Sec. 10311. Office of Women's Business Ownership
  (a) Definitions.--In this section:
          (1) Assistant administrator.--The term ``Assistant 
        Administrator'' means the Assistant Administrator appointed 
        under subsection (c).
          (2) Office.--The term ``Office'' means the Office of Women's 
        Business ownership established by subsection (b).
  (b) Establishment of Office.--There is established within the 
Administration an Office of Women's Business Ownership.
  (c) Assistant Administrator.--
          (1) In general.--The Office shall be administered by an 
        Assistant Administrator, who shall be appointed by the 
        Administrator.
          (2) Qualification.--The position of Assistant Administrator 
        shall be a Senior Executive Service position under section 
        3132(a)(2) of title 5. The Assistant Administrator shall serve 
        as a noncareer appointee (as defined in section 3132(a)(7) of 
        that title).
  (d) Duties.--The Assistant Administrator shall--
          (1) administer the Administration's programs for the 
        development of women's business enterprises (as defined in 
        section 40301 of this title);
          (2) administer the programs and services of the Office to 
        assist women entrepreneurs in the areas of--
                  (A) starting and operating a small business concern;
                  (B) development of management and technical skills;
                  (C) seeking Federal procurement opportunities; and
                  (D) increasing the opportunity for access to capital;
          (3) administer and manage the women's business center 
        program;
          (4) recommend the annual administrative and program budgets 
        for the Office (including the budget for the women's business 
        center program);
          (5) establish appropriate funding levels for the Office;
          (6) review the annual budgets submitted by each applicant for 
        the women's business center program;
          (7) select applicants to participate in the women's business 
        center program;
          (8) implement chapter 273;
          (9) maintain a clearinghouse to provide for the dissemination 
        and exchange of information between women's business centers;
          (10) serve as the vice chairperson of the Interagency 
        Committee on Women's Business Enterprise;
          (11) serve as liaison for the National Women's Business 
        Council; and
          (12) advise the Administrator on appointments to the Women's 
        Business Council.
  (e) Consultation.--In carrying out the duties described in paragraphs 
(2) to (12) of subsection (d), the Assistant Administrator shall confer 
with and seek the advice of the Administration officials in areas 
served by the women's business centers.
Sec. 10312. Small Business and Agriculture Regulatory Enforcement 
                    Ombudsman; regional small business regulatory 
                    fairness boards
  (a) Definitions.--In this section:
          (1) Board.--The term ``Board'' means a regional small 
        business regulatory fairness board established under subsection 
        (e).
          (2) Ombudsman.--The term ``Ombudsman'' means the Small 
        Business and Agriculture Regulatory Enforcement Ombudsman 
        designated under subsection (b).
  (b) Small Business and Agriculture Regulatory Enforcement 
Ombudsman.--The Administrator shall designate a Small Business and 
Agriculture Regulatory Enforcement Ombudsman, who shall report directly 
to the Administrator, using personnel of the Administration to the 
extent practicable.
  (c) Duties.--The Ombudsman shall--
          (1) work with each Federal agency with regulatory authority 
        over small business concerns to ensure that small business 
        concerns that receive or are subject to an audit, on-site 
        inspection, compliance assistance effort, or other enforcement-
        related communication or contact by Federal agency personnel 
        are provided with a means by which to comment on the 
        enforcement activity conducted by those personnel;
          (2)(A) establish means by which to--
                  (i) receive comments from a small business concern 
                regarding actions by Federal agency employees 
                conducting compliance or enforcement activities with 
                respect to the small business concern; and
                  (ii) refer comments to the Inspector General of the 
                Federal agency in the appropriate circumstances; and
          (B) otherwise seek to maintain the identity of the person and 
        small business concern making such comments on a confidential 
        basis to the same extent as employee identities are protected 
        under section 7 of the Inspector General Act of 1978 (5 U.S.C. 
        App.);
          (3) based on substantiated comments received from small 
        business concerns and the Boards, after having provided each 
        Federal agency described in paragraph (1) an opportunity to 
        comment on drafts of the report, annually submit to Congress 
        and those Federal agencies a report that--
                  (A) evaluates the enforcement activities of Federal 
                agency personnel; and
                  (B) includes--
                          (i) a rating of the responsiveness to small 
                        business concerns of the various regional and 
                        program offices of each such Federal agency; 
                        and
                          (ii) a section in which any such Federal 
                        agency may make such comments made by the 
                        Federal agency to drafts of the report as are 
                        not addressed by the Ombudsman in the final 
                        draft; and
          (4) coordinate, and annually submit to the Administrator and 
        to the heads of Federal agencies described in paragraph (1) a 
        report on, the activities, findings, and recommendations of the 
        Boards.
  (d) Federal Agencies Other Than the Administration.--
          (1) Actions to ensure compliance.--Federal agencies other 
        than the Administration shall assist the Ombudsman and take 
        actions as necessary to ensure compliance with this section.
          (2) Effect of section.--Nothing in this section replaces or 
        diminishes the activities of any ombudsman or similar office in 
        any Federal agency.
  (e) Regional Small Business Regulatory Fairness Boards.--
          (1) Establishment.--The Administrator shall establish a small 
        business regulatory fairness board in each regional office of 
        the Administration.
          (2) Membership.--
                  (A) In general.--A Board shall consist of 5 members 
                who are owners, operators, or officers of small 
                business concerns, appointed by the Administrator, 
                after receiving the recommendations of the chair and 
                ranking minority member of the Committee on Small 
                Business and Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
                  (B) Political affiliation.--Not more than 3 of the 
                members of a Board shall be of the same political 
                party.
                  (C) Government officers or employees.--No member of a 
                Board shall be an officer or employee of the Federal 
                Government in the executive branch or in Congress.
                  (D) Term.--A member of a Board shall serve at the 
                pleasure of the Administrator for a term of 3 years or 
                less.
                  (E) Compensation.--A member of a Board shall serve 
                without compensation, except that a member shall be 
                allowed travel expenses, including per diem in lieu of 
                subsistence, at rates authorized for employees of 
                agencies under subchapter I of chapter 57 of title 5 
                while away from the home or regular place of business 
                of the member in the performance of services for the 
                Board.
          (3) Chair.--The Administrator shall select a chair from among 
        the members of a Board, who shall serve at the pleasure of the 
        Administrator for not more than one year as chair.
          (4) Quorum.--A majority of the members of a Board shall 
        constitute a quorum for the conduct of business, but a lesser 
        number may hold hearings.
          (5) Duties.--A Board shall--
                  (A) meet at least annually to advise the Ombudsman on 
                matters of concern to small business concerns relating 
                to the enforcement activities of Federal agencies;
                  (B) report to the Ombudsman on substantiated 
                instances of excessive enforcement actions of Federal 
                agencies against small business concerns, including any 
                findings or recommendations of the Board as to Federal 
                agency enforcement policy or practice; and
                  (C) prior to publication, provide comment on the 
                annual report of the Ombudsman prepared under 
                subsection (c).
          (6) Powers.--
                  (A) Hearings; collection of information.--A Board may 
                hold hearings and collect information as appropriate 
                for carrying out this section.
                  (B) Mail.--A Board may use the United States mails in 
                the same manner and under the same conditions as other 
                Federal agencies.
                  (C) Acceptance of donations.--A Board may accept 
                donations of services necessary to conduct its 
                business, so long as the donations and their sources 
                are disclosed by the Board.
Sec. 10313. Office of Veterans Business Development
  (a) Definition of Associate Administrator.--In this section, the term 
``Associate Administrator'' means the Associate Administrator for 
Veterans Business Development under section 10304(b) of this title.
  (b) Office of Veterans Business Development.--There is established in 
the Administration an Office of Veterans Business Development, which 
shall be administered by the Associate Administrator.
  (c) Duties.--The Associate Administrator--
          (1) 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 veterans and small business concerns owned and 
        controlled by service-disabled veterans; and
          (2) shall act as an ombudsman for full consideration of 
        veterans in all programs of the Administration.
Sec. 10314. Task force on purchases from the blind and severely 
                    disabled
  (a) Establishment.--There is established within the Administration a 
task force on purchases from the blind and severely disabled.
  (b) Membership.--The task force shall consist of one representative 
of the small business community appointed by the Administrator and one 
individual knowledgeable in the affairs of or experienced in the work 
of sheltered workshops appointed by the Executive Director of the 
Committee for Purchase from the Blind and Other Severely Disabled 
established under the first section of the Act of June 25, 1938 (41 
U.S.C. 46).
  (c) Duties.--The task force shall meet at least once every 6 months 
for the purpose of--
          (1) reviewing the award of contracts under section 25103 of 
        this title; and
          (2) recommending to the Administrator such administrative or 
        statutory changes as the task force considers appropriate.
Sec. 10315. Advisory committees
  (a) In General.--The Administrator shall--
          (1) establish such advisory committees as are necessary to 
        achieve the purposes of this subtitle and subtitles II and III; 
        and
          (2) call meetings of the advisory committees from time to 
        time.
  (b) Expenses.--The Administrator shall--
          (1) pay the transportation expenses and a per diem allowance 
        in accordance with section 5703 of title 5 to a member of an 
        advisory committee for travel and subsistence expenses incurred 
        at the request of the Administrator in connection with travel 
        to points more than 50 miles distant from the home of the 
        member in attending a meeting of the advisory committee; and
          (2) rent temporarily, within the District of Columbia or 
        elsewhere, such hotel or other accommodations as are needed to 
        facilitate the conduct of meetings of an advisory committee.
Sec. 10316. Bureau of PCLP Oversight
  (a) Establishment.--There is established within the Administration a 
bureau to be known as the Bureau of PCLP Oversight.
  (b) Purpose.--The Bureau of PCLP Oversight shall carry out such 
functions of the Administrator under section 33108(c) of this title as 
the Administrator may designate.

                        Subchapter II--Functions

Sec. 10331. General powers
  (a) Seal.--The Administrator shall have power to adopt, alter, and 
use a seal, which shall be judicially noticed.
  (b) Services and Facilities.--At the request of the Administrator, 
the head of any Federal agency or of the Government Accountability 
Office or Postal Service may provide to the Administrator (on a 
reimbursable or nonreimbursable basis) information, services, 
facilities (including any field service of the Federal agency), 
officers, and employees of the Federal agency to assist in carrying out 
this title or any other law under which the Administrator provides 
assistance to small business concerns.
  (c) Court Proceedings.--The Administrator may sue and be sued in any 
court of record of a State having general jurisdiction, or in any 
United States district court, and jurisdiction is conferred on a United 
States district court to determine such controversies without regard to 
the amount in controversy; but no attachment, injunction, garnishment, 
or other similar process, mesne or final, shall be issued against the 
Administrator or property of the Administration.
  (d) Limitation on Advertising Requirement.--Section 3709 of the 
Revised Statutes (41 U.S.C. 5) shall not apply to a contract of hazard 
insurance or a purchase or contract for a service or supply on account 
of property obtained by the Administrator as a result of a loan made 
under this subtitle or subtitle II or III if the premium for the 
insurance or the amount of the purchase or contract does not exceed 
$1,000.
  (e) Regulations.--The Administrator may prescribe such regulations as 
the Administrator considers necessary to carry out the authority vested 
in the Administrator under this subtitle and subtitles II and III.
  (f) Acceptance of Services and Facilities.--The Administrator may--
          (1) accept the services and facilities of Federal, State, and 
        local agencies and groups, both public and private; and
          (2) use such gratuitous services and facilities as may from 
        time to time be necessary to further the objectives of the 
        disaster assistance programs.
  (g) Investigations.--
          (1) In general.--The Administrator may make such 
        investigations as the Administrator considers necessary to 
        determine whether a recipient of or participant in assistance 
        under this subtitle or subtitle II or III or any other person 
        has engaged or is about to engage in any act or practice that 
        constitutes or will constitute a violation of any provision of 
        this subtitle or subtitle II or III (including a regulation or 
        order issued under this subtitle or subtitle II or III).
          (2) Statements.--The Administrator shall permit any person to 
        file with the Administrator a statement in writing, under oath 
        or otherwise as the Administrator shall determine, as to all 
        the facts and circumstances concerning a matter to be 
        investigated.
          (3) Powers.--For the purpose of any investigation, the 
        Administration may administer oaths and affirmations, subpoena 
        witnesses, compel the attendance of witnesses, take evidence, 
        and require the production of any records that are relevant to 
        the inquiry. Attendance of witnesses and the production of any 
        such records may be required from any place in the United 
        States.
          (4) Contumacy or refusal to obey.--
                  (A) In general.--In case of contumacy by, or refusal 
                to obey a subpoena issued to, any person (including a 
                recipient or participant), the Administrator may invoke 
                the aid of any court of the United States within the 
                jurisdiction of which an investigation or proceeding is 
                carried on, or in which the person resides or carries 
                on business, in requiring the attendance and testimony 
                of witnesses and the production of records, and the 
                court may issue an order requiring the person to appear 
                before the Administrator, to produce records, if so 
                ordered, or to give testimony touching the matter under 
                investigation.
                  (B) Failure to obey.--A failure to obey an order 
                under subparagraph (A) may be punished by the court as 
                a contempt of court, for which purpose process may be 
                served in any judicial district of which the person is 
                an inhabitant or in which the person may be found.
  (h) Examination and Review Fees.--
          (1) In general.--The Administrator may require a lender 
        authorized to make loans under the general business loan 
        program, the disaster loan program, or the microloan program to 
        pay examination and review fees.
          (2) Use.--Fees collected under paragraph (1) shall be 
        deposited in the account for salaries and expenses of the 
        Administrator and shall be available for the costs of 
        examinations, reviews, and other lender oversight activities.
  (i) Loan Requirements Relating to Assistance Provided to Loan 
Applicants, Nonemployment of Persons Associated With the 
Administration, and Loan Applications.--No loan shall be made or 
equipment, facilities, or services furnished by the Administrator under 
this subtitle or subtitle II or III to any business concern unless the 
owners, partners, or officers of the business concern--
          (1) certify to the Administrator--
                  (A) the names of any attorneys, agents, or other 
                persons engaged by or on behalf of the business concern 
                for the purpose of expediting applications made to the 
                Administrator for assistance of any sort; and
                  (B) the amount of fees paid or to be paid to any such 
                persons;
          (2) execute an agreement binding the business concern, for a 
        period of 2 years after any assistance is rendered by the 
        Administrator to the business concern, to refrain from 
        employing, tendering any office or employment to, or retaining 
        for professional services any individual who, on the date on 
        which any part of the assistance was rendered, or within one 
        year prior to that date, served as an officer, attorney, agent, 
        or employee of the Administrator occupying a position or 
        engaging in an activity that, as determined by the 
        Administrator, involves the exercise of discretion with respect 
        to the granting of assistance under this subtitle or subtitle 
        II or III; and
          (3) furnish--
                  (A) the names of lending institutions to which the 
                business concern has applied for a loan; and
                  (B) the date, amount, terms, and proof of refusal of 
                any loan.
  (j) Authority Relating to Transfer of Functions, Powers, and 
Duties.--The President may--
          (1) transfer to the Administrator any function, power, or 
        duty of any Federal agency that relates primarily to small 
        business problems; and
          (2) in connection with the transfer, provide for appropriate 
        transfers of records, property, necessary personnel, and 
        unexpended balances of appropriations and other funds available 
        to the Federal agency from which the transfer is made.
  (k) Fair Charges; Recovery of Direct Costs.--To the fullest extent 
that the Administrator considers practicable, the Administrator shall--
          (1) make a fair charge for the use of Government-owned 
        property; and
          (2) make and let contracts on a basis that will result in a 
        recovery of the direct costs incurred by the Administrator.
  (l) Nonduplication of Work or Activity.--The Administrator shall not 
duplicate the work or activity of any other Federal agency unless such 
work or activity is expressly provided for in this subtitle or subtitle 
II or III.
  (m) Safe Deposit Box Rentals.--Subsections (a) and (b) of section 
3324 of title 31 shall not apply to prepayments of rentals made by the 
Administrator on safe deposit boxes used by the Administrator for the 
safeguarding of instruments held as security for loans or for the 
safeguarding of other documents.
  (n) Nondiscrimination.--In carrying out the programs administered by 
the Administrator, the Administrator shall not discriminate on the 
basis of sex or marital status against any small business concern or 
other person applying for or receiving assistance from the 
Administration.
  (o) Special Consideration to Veterans.--In carrying out the programs 
administered by the Administrator, the Administrator shall give special 
consideration to veterans and their survivors or dependents.
  (p) Prohibition of Use of Funds for Individuals Not Lawfully Within 
United States.--None of the funds made available under this subtitle or 
subtitle II or III may be used to provide any direct benefit or 
assistance to any individual in the United States if the Administrator 
or the official to which the funds are made available receives 
notification that the individual is not lawfully within the United 
States.
  (q) Obscene Products and Services.--Notwithstanding any other 
provision of law, the Administrator shall not provide any financial or 
other assistance to any business concern or other person engaged in the 
production or distribution of any product or service that has been 
determined by a court of competent jurisdiction to be obscene.
  (r) Gifts.--In carrying out the functions of the Administrator under 
this subtitle and subtitles II and III and to carry out the activities 
authorized by chapter 403, the Administrator may--
          (1) accept, in the name of the Administrator, and employ or 
        dispose of in furtherance of the purposes of this subtitle or 
        subtitle II or III, any money or property, real, personal, or 
        mixed, tangible, or intangible, received by gift, devise, 
        bequest, or otherwise; and
          (2) accept gratuitous services and facilities.
Sec. 10332. Financial management
  (a) Accounts.--
          (1) In general.--All repayments of loans, debentures, 
        payments of interest, and other receipts arising out of 
        transactions entered into by the Administrator shall be 
        deposited in appropriate accounts as determined by the 
        Administrator.
          (2) Budgets.--Business-type budgets for each of the accounts 
        referred to in paragraph (1) shall be--
                  (A) submitted to the Committee on Appropriations and 
                Committee on Small Business and Entrepreneurship of the 
                Senate and the Committee on Appropriations and 
                Committee on Small Business of the House of 
                Representatives; and
                  (B) enacted in the manner prescribed by sections 9103 
                and 9104 of title 31 for wholly owned Government 
                corporations.
          (3) Reports.--As soon as possible after the beginning of each 
        calendar quarter, the Administrator shall submit to the 
        Committee on Appropriations and Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on 
        Appropriations and Committee on Small Business of the House of 
        Representatives a report that describes the status of each of 
        the accounts referred to in paragraph (1).
          (4) Issuance of notes.--
                  (A) In general.--The Administrator may issue notes to 
                the Secretary of the Treasury for the purpose of 
                obtaining funds necessary for discharging obligations 
                under, and for authorized expenditures out of, the 
                accounts referred to in paragraph (1).
                  (B) Form.--Notes issued under subparagraph (A) shall 
                be in such form and denominations, have such 
                maturities, and be subject to such terms and conditions 
                as the Administrator may prescribe with the approval of 
                the Secretary of the Treasury.
                  (C) Interest.--Notes issued under subparagraph (A) 
                shall bear interest at a rate fixed by the Secretary of 
                the Treasury, taking into consideration the current 
                average market yield of outstanding marketable 
                obligations of the United States having maturities 
                comparable to those of the notes issued under 
                subparagraph (A).
                  (D) Purchase by the secretary of the treasury.--The 
                Secretary of the Treasury shall purchase any notes of 
                the Administration issued under subparagraph (A), and 
                for that purpose the Secretary of the Treasury may use 
                as a public debt transaction the proceeds from the sale 
                of any securities issued under chapter 31 of title 31, 
                and the purposes for which such securities may be 
                issued under that chapter are extended to include the 
                purchase of notes issued under subparagraph (A).
                  (E) Treatment as public debt transactions.--All 
                redemptions, purchases, and sales by the Secretary of 
                the Treasury of notes issued under subparagraph (A) 
                shall be treated as public debt transactions of the 
                United States.
                  (F) Borrowing authority subject to availability of 
                appropriations.--All borrowing authority contained in 
                this paragraph shall be effective only to such extent 
                or in such amounts as are provided in advance in 
                appropriation Acts.
          (5) Unneeded amounts.--Amounts in an account referred to in 
        paragraph (1) that are not needed for current operations may be 
        paid into miscellaneous receipts of the Treasury.
          (6) Interest.--
                  (A) Actual interest collected.--Following the close 
                of each fiscal year, the Administrator shall pay into 
                the miscellaneous receipts of the United States 
                Treasury the actual interest that the Administration 
                collects during that fiscal year on all financings made 
                under subtitle II.
                  (B) Interest received on financing functions.--
                          (i) In general.--Except on loan disbursements 
                        on which interest is paid under subparagraph 
                        (A), following the close of each fiscal year, 
                        the Administrator shall pay into miscellaneous 
                        receipts of the Treasury interest received by 
                        the Administration on financing functions 
                        performed under this subtitle, subtitle II, and 
                        divisions B and C of subtitle III if the 
                        capital used to perform those functions 
                        originates from appropriated funds.
                          (ii) Treatment.--Payments under clause (i) 
                        shall be treated by the Department of the 
                        Treasury as interest income, not as retirement 
                        of indebtedness.
          (7) Contributions to employees' compensation funds.--
                  (A) In general.--The Administrator shall contribute 
                to the employees' compensation fund, on the basis of 
                annual billings as determined by the Secretary of 
                Labor, for the benefit payments made from the fund on 
                account of employees engaged in carrying out functions 
                financed under the accounts described in paragraph (1).
                  (B) Statement of cost.--The annual billings shall 
                include a statement of the fair portion of the cost of 
                the administration of the employees' compensation fund, 
                which shall be paid by the Administrator into the 
                Treasury as miscellaneous receipts.
  (b) Financial Management Powers.--
          (1) Disposition of evidence of debt, contract, claim, 
        personal property, or security.--Under regulations prescribed 
        by the Administrator, the Administrator may--
                  (A) assign or sell at public or private sale, or 
                otherwise dispose of for cash or credit, in the 
                discretion of the Administrator and on such terms and 
                conditions and for such consideration as the 
                Administrator determines to be reasonable, any evidence 
                of debt, contract, claim, personal property, or 
                security assigned to or held by the Administrator in 
                connection with the payment of loans granted under 
                subtitle II or III; and
                  (B) collect or compromise all obligations assigned to 
                or held by the Administrator and all legal or equitable 
                rights accruing to the Administrator in connection with 
                the payment of such loans until such time as such 
                obligations may be referred to the Attorney General for 
                suit or collection.
          (2) Administration moneys.--
                  (A) Deposit in treasury.--All moneys of the 
                Administration not otherwise employed may be deposited 
                in the Treasury subject to check by authority of the 
                Administrator.
                  (B) Federal reserve banks.--
                          (i) In general.--The Federal Reserve banks 
                        shall act as depositaries, custodians, and 
                        fiscal agents for the Administration in the 
                        general performance of its powers under this 
                        subtitle and subtitles II and III.
                          (ii) Reimbursement.--A Federal Reserve bank, 
                        when designated by the Administrator as fiscal 
                        agent for the Administration, shall be entitled 
                        to be reimbursed for all expenses incurred as 
                        fiscal agent.
                  (C) Banks insured by fdic.--A bank insured by the 
                Federal Deposit Insurance Corporation, when designated 
                by the Secretary of the Treasury, shall act as 
                custodian and financial agent for the Administration.
          (3) Real property.--
                  (A) Conveyance.--The power to convey and to execute 
                in the name of the Administrator a deed of conveyance, 
                deed of release, assignment and satisfaction of 
                mortgages, or any other written instrument relating to 
                real property or any interest in real property acquired 
                by the Administrator under this subtitle or subtitle II 
                or III may be exercised--
                          (i) by the Administrator; or
                          (ii) by any officer or agent appointed by the 
                        Administrator, with or without the execution of 
                        an express delegation of power or power of 
                        attorney.
                  (B) Other authority.--The Administrator may deal 
                with, complete, renovate, improve, modernize, insure, 
                or rent, or sell for cash or credit, on such terms and 
                conditions and for such consideration as the 
                Administrator determines to be reasonable, any real 
                property conveyed to or otherwise acquired by the 
                Administrator in connection with the payment of loans 
                granted under subtitle II or III.
          (4) Collections.--
                  (A) In general.--The Administrator may pursue to 
                final collection, by way of compromise or otherwise, 
                all claims against third parties assigned to the 
                Administrator in connection with loans made by the 
                Administrator.
                  (B) Deficiency judgments.--The authority under 
                subparagraph (A) includes authority to obtain a 
                deficiency judgment or otherwise in the case of a 
                mortgage assigned to the Administrator.
          (5) Acquisition of property.--The Administrator may acquire, 
        in any lawful manner, any property (real, personal, or mixed, 
        tangible or intangible), when the Administrator considers it 
        necessary or appropriate to the conduct of the general business 
        loan program and disaster assistance programs.
          (6) Asset sales.--In connection with the Administrator's 
        implementation of a program to sell to the private sector loans 
        and other assets held by the Administrator, the Administrator 
        shall provide to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a copy of the draft 
        and final plans describing the sale and the anticipated 
        benefits resulting from the sale.
  (c) Sale of Guaranteed Portion of Loan by Lender or Subsequent 
Holder.--
          (1) In general.--The guaranteed portion of a loan made under 
        subtitle II or III may be sold by the lender, and by any 
        subsequent holder, consistent with regulations prescribed by 
        the Administrator, subject to the limitations stated in 
        paragraph (2).
          (2) Limitations.--
                  (A) Approval.--Before the Administrator approves a 
                sale or resale under paragraph (1), if the lender 
                certifies that the loan has been properly closed and 
                that the lender has substantially complied with the 
                guarantee agreement and the regulations of the 
                Administrator, the Administrator shall review and 
                approve only materials not previously approved.
                  (B) Fees.--All fees due the Administrator on a 
                guaranteed loan shall be paid in full prior to a sale 
                or resale under paragraph (1).
                  (C) Disbursement.--A loan (except a loan made under 
                section 20508 of this title) shall be fully disbursed 
                to the borrower before a sale or resale under paragraph 
                (1).
          (3) Continuing obligation.--After a loan is sold, the lender 
        shall remain obligated under its guarantee agreement with the 
        Administrator and shall continue to service the loan in a 
        manner consistent with the terms and conditions of the 
        guarantee agreement.
          (4) Secondary market.--
                  (A) Procedures.--The Administrator shall develop such 
                procedures as are necessary for--
                          (i) the facilitation, administration, and 
                        promotion of secondary market operations; and
                          (ii) assessing the increase of small business 
                        access to capital at reasonable rates and terms 
                        as a result of secondary market operations.
                  (B) Uniform regulations.--The sale of the 
                unguaranteed portion of a loan made under the general 
                business loan program shall not be permitted except in 
                accordance with a regulation prescribed by the 
                Administrator that--
                          (i) applies uniformly to both depository 
                        institutions and other lenders; and
                          (ii) specifies the terms and conditions under 
                        which such sales can be permitted, including 
                        maintenance of appropriate reserve requirements 
                        and other safeguards to protect the safety and 
                        soundness of the program.
                  (C) Long-term viability.--The Administrator shall 
                take such actions in the awarding of contracts as the 
                Administrator considers necessary to ensure the 
                continued long-term viability of the secondary market 
                in loans, debentures, and other securities guaranteed 
                by the Administrator.
          (5) Effect of subsections.--Nothing in this subsection or 
        subsection (d) impedes or extinguishes--
                  (A) the right of a borrower or a successor in 
                interest to a borrower to prepay (in whole or in part) 
                a loan made under the general business loan program, 
                the guaranteed portion of which may be included in a 
                trust or pool; or
                  (B) the rights of any person under subsection (i).
  (d) Trust Certificates.--
          (1) In general.--The Administrator may issue trust 
        certificates representing ownership of all or a fractional part 
        of the guaranteed portion of one or more loans guaranteed by 
        the Administrator under subtitle II or section 33103 of this 
        title.
          (2) Trust or pool.--A trust certificate shall be based on and 
        backed by a trust or pool approved by the Administrator and 
        composed solely of the entire guaranteed portion of a loan.
          (3) Guarantee.--
                  (A) In general.--The Administrator, on such terms and 
                conditions as the Administrator considers appropriate, 
                may guarantee the timely payment of the principal of 
                and interest on trust certificates issued by the 
                Administrator or an agent of the Administrator for 
                purposes of this subsection.
                  (B) Limit.--
                          (i) In general.--A guarantee under 
                        subparagraph (A) shall be limited to the extent 
                        of principal and interest on the guaranteed 
                        portion of the loan or loans that compose the 
                        trust or pool.
                          (ii) Prepayment.--If a loan in a trust or 
                        pool is prepaid, either voluntarily or in the 
                        event of default, the guarantee of timely 
                        payment of principal and interest on the trust 
                        certificate shall be reduced in proportion to 
                        the amount of principal and interest that the 
                        prepaid loan represents in the trust or pool.
                          (iii) Interest.--Interest on prepaid or 
                        defaulted loans shall accrue and be guaranteed 
                        by the Administrator only through the date of 
                        payment on the guarantee.
                          (iv) Call.--During the term of a trust 
                        certificate, the trust certificate may be 
                        called for redemption due to prepayment or 
                        default of all loans constituting the trust or 
                        pool.
          (4) Full faith and credit of the united states.--The full 
        faith and credit of the United States is pledged to the payment 
        of all amounts that may be required to be paid under any 
        guarantee of a trust certificate issued by the Administration 
        or its agent under this subsection.
          (5) Fees.--
                  (A) In general.--The Administrator may impose a fee 
                for a loan guarantee sold into the secondary market 
                under subsection (c) in an amount equal to not more 
                than 50 percent of the portion of the sale price that 
                exceeds 110 percent of the outstanding principal amount 
                of the portion of the loan guaranteed by the 
                Administrator.
                  (B) Collection; use.--A fee under subparagraph (A)--
                          (i) shall be collected by the Administrator 
                        or by the agent that carries out on behalf of 
                        the Administrator the central registration 
                        functions required by subsection (e); and
                          (ii) shall be paid to the Administrator and 
                        used solely to reduce the subsidy on loans 
                        guaranteed under the general business loan 
                        program.
                  (C) No charge to borrower.--A fee under subparagraph 
                (A) shall not be charged to the borrower under the loan 
                that is guaranteed.
                  (D) No preclusion.--Nothing in this paragraph 
                precludes an agent of the Administrator from collecting 
                a fee approved by the Administrator for the functions 
                described in subsection (e)(2)(A)(ii).
                  (E) Penalty.--The Administrator may impose and 
                collect, directly or through a fiscal and transfer 
                agent, a reasonable penalty on late payment of a fee 
                under subparagraph (A) in an amount not to exceed 5 
                percent of the fee per month plus interest.
                  (F) Agents.--
                          (i) In general.--The Administrator may 
                        contract with an agent to carry out, on behalf 
                        of the Administration, the assessment and 
                        collection of the annual fee established under 
                        section 20314 of this title.
                          (ii) Compensation.--An agent may receive, as 
                        compensation for services, any interest earned 
                        on the fee while in the control of the agent 
                        before the time at which the agent is 
                        contractually required to remit the fee to the 
                        Administrator.
          (6) Subrogation.--If the Administrator pays a claim under a 
        guarantee issued under this subsection, the Administrator shall 
        be subrogated fully to the rights satisfied by the payment.
          (7) Exercise of ownership rights.--No Federal, State, or 
        local law shall preclude or limit the exercise by the 
        Administration of its ownership rights in the portions of loans 
        constituting the trust or pool against which a trust 
        certificate is issued.
  (e) Central Registration of Loans and Trust Certificates.--
          (1) Definition of seller.--In this subsection, the term 
        ``seller'', with respect to a sale of a loan, does not 
        include--
                  (A) an entity that made the loan; or
                  (B) an individual or entity that sells 3 or fewer 
                guaranteed loans per year.
          (2) In general.--Under regulations prescribed by the 
        Administrator--
                  (A) the Administrator shall--
                          (i) provide for a central registration of all 
                        loans and trust certificates sold under 
                        subsections (c) and (d);
                          (ii) contract with an agent to carry out on 
                        behalf of the Administrator the central 
                        registration functions of this section and the 
                        issuance of trust certificates to facilitate 
                        pooling; and
                          (iii) prior to any sale, require the seller 
                        to disclose to a purchaser of the guaranteed 
                        portion of a loan guaranteed under subtitle II 
                        and to the purchaser of a trust certificate 
                        issued under subsection (d) information on the 
                        terms, conditions, and yield of the instrument 
                        to be sold; and
                  (B) the Administrator may regulate brokers and 
                dealers in guaranteed loans and trust certificates sold 
                under subsections (c) and (d).
          (3) Agent.--An agent described in paragraph (2)(A)(ii)--
                  (A) shall provide a fidelity bond or insurance in 
                such amounts as the Administrator determines to be 
                necessary to fully protect the interest of the 
                Government; and
                  (B) may be compensated through any of the fees 
                assessed under this section and any interest earned on 
                any funds collected by the agent while the funds are in 
                the control of the agent and before the time at which 
                the agent is contractually required to transfer the 
                funds to the Administrator or to the holders of the 
                trust certificates, as appropriate.
          (4) Form of registration.--
                  (A) In general.--This subsection does not preclude 
                the use of a book-entry or other electronic form of 
                registration for trust certificates.
                  (B) Book-entry system.--The Administration may, with 
                the consent of the Secretary of the Treasury, use the 
                book-entry system of the Federal Reserve System.
  (f) Action Dealing With or Realizing on Loan.--
          (1) In general.--In addition to exercising any power, 
        function, privilege, or immunity vested in the Administrator by 
        any other provision of law, the Administrator may take any and 
        all actions (including the procurement of the services of an 
        attorney by contract in any office in which an attorney is not 
        or cannot be economically employed full time to render such 
        services) if the Administrator determines that such action is 
        necessary or desirable in making, servicing, compromising, 
        modifying, liquidating, or otherwise dealing with or realizing 
        on a loan made under subtitle II or III.
          (2) Deferred participation loan.--With respect to a deferred 
        participation loan, the Administrator may, in the discretion of 
        and pursuant to regulations promulgated by the Administrator, 
        authorize a participating lending institution to take action 
        relating to loan servicing on behalf of the Administrator, 
        including determining eligibility and creditworthiness and loan 
        monitoring, collection, and liquidation.
          (3) Preferred lenders program.--
                  (A) In general.--Under this subsection, the 
                Administrator may carry out a preferred lenders program 
                under which a written agreement between a lender and 
                the Administrator delegates to the lender--
                          (i) complete authority to make and close 
                        loans with a guarantee from the Administrator 
                        without obtaining the prior specific approval 
                        of the Administrator; and
                          (ii) complete authority to service and 
                        liquidate the loans without obtaining the prior 
                        specific approval of the Administrator for 
                        routine servicing and liquidation activities, 
                        subject to the limitation that the lender shall 
                        not take any action creating an actual or 
                        apparent conflict of interest.
                  (B) Standard review program.--The Administrator shall 
                carry out a standard review program under which, on 
                entry into the preferred lenders program and annually 
                or more frequently thereafter, each preferred lender's 
                participation in the preferred lenders program is 
                assessed, including an assessment of defaults, loans, 
                and recoveries of loans made by the preferred lender 
                under the general business loan program.
  (g) Fees.--
          (1) In general.--Except as provided in paragraph (2), the 
        Administrator may impose, retain, and use only--
                  (A) fees that are specifically authorized by law; and
                  (B) fees that were in effect on September 30, 1994, 
                in the amounts and at the rates in effect on that date.
          (2) Additional fees.--The Administrator may, subject to 
        approval in appropriations Acts, impose, retain, and use, in 
        addition to fees described in paragraph (1)--
                  (A) a fee not exceeding $100 for a loan servicing 
                action (other than a loan assumption) requested after 
                disbursement of the loan, including any substitution of 
                collateral, release or substitution of a guarantor, 
                reamortization, or similar action;
                  (B) a fee not exceeding $300 for a loan assumption;
                  (C) a fee not exceeding one percent of the amount of 
                requested financings under chapter 303 for which the 
                applicant requests a commitment from the Administration 
                for funding during the following year; and
                  (D) fees to recover the direct, incremental cost 
                involved in the production and dissemination of 
                compilations of information produced by the 
                Administrator under this title.
          (3) Limitation on use.--Amounts collected under this 
        subsection shall be used solely to facilitate the 
        administration of the program that generated the excess 
        amounts.
  (h) Amounts Collected by Fiscal Transfer Agents.--
          (1) In general.--The Administrator may collect, retain and 
        use, subject to approval in appropriations Acts, any amount 
        collected by a fiscal transfer agent that is not used by the 
        fiscal transfer agent as payment of the cost of loan pooling or 
        debenture servicing operations.
          (2) Limitation on use.--Amounts collected under this 
        subsection shall be used solely to facilitate the 
        administration of the program that generated the excess 
        amounts.
  (i) Undertaking or Suspension of Payment Obligation.--
          (1) Definition of required payments.--In this subsection, the 
        term ``required payment'', with respect to a loan, means a 
        payment of principal and interest under the loan.
          (2) In general.--Subject to the requirements and conditions 
        contained in this subsection, on application by a small 
        business concern that is the recipient of a loan made under 
        subtitle II or III, the Administrator may--
                  (A) undertake the small business concern's obligation 
                to make the required payments under the loan; or
                  (B) if the loan was a direct loan made by the 
                Administrator, suspend the obligation.
          (3) No requirement for payment.--During any period in which 
        required payments are being made by the Administrator pursuant 
        to an undertaking of an obligation or in which an obligation is 
        suspended, no required payment with respect to the loan may be 
        required to be made by the small business concern.
          (4) Conditions.--The Administrator may undertake or suspend 
        for a period of not to exceed 5 years a small business 
        concern's obligation under this subsection only if--
                  (A) without the undertaking or suspension of the 
                obligation, the small business concern would, as 
                determined in the sole discretion of the Administrator, 
                become insolvent or remain insolvent;
                  (B) with the undertaking or suspension of the 
                obligation, the small business concern would, as 
                determined in the sole discretion of the Administrator, 
                become or remain a viable business; and
                  (C) the small business concern executes an agreement 
                in writing satisfactory to the Administrator as 
                provided in paragraph (6).
          (5) Extension of term.--Notwithstanding section 20309 of this 
        title, the Administrator may extend the term of a loan on which 
        the Administrator undertakes or suspends the obligation under 
        this subsection for a corresponding period of time.
          (6) Agreement; required action.--
                  (A) Agreement.--Before undertaking or suspending a 
                small business concern's obligation under this 
                subsection, the Administrator, consistent with the 
                purposes of this subsection, shall require the small 
                business concern to agree in writing to repay to the 
                Administrator the aggregate amount of the required 
                payments during the period for which the obligation was 
                undertaken or suspended--
                          (i) by periodic payments not less in amount 
                        or less frequently falling due than those that 
                        were due under the loan during that period;
                          (ii) pursuant to a repayment schedule agreed 
                        on by the Administrator and the small business 
                        concern; or
                          (iii) by a combination of the payments 
                        described in clauses (i) and (ii).
                  (B) Required action.--In addition to requiring the 
                small business concern to execute the agreement 
                described in subparagraph (A), the Administrator shall, 
                before undertaking or suspending the obligation, take 
                such action, and require the small business concern to 
                take such action, as the Administrator considers 
                appropriate in the circumstances (including the 
                provision of such security as the Administrator 
                considers necessary or appropriate) to ensure that the 
                rights and interests of the lender will be safeguarded 
                adequately during and after the period in which the 
                obligation is undertaken or suspended.
  (j) Interest Rate on Deferred Participation.--On purchase by the 
Administrator of a deferred participation entered into under the 
general business loan program or disaster loan program, the 
Administrator may continue to charge a rate of interest not to exceed 
that initially charged by the participating institution on the amount 
purchased for the remaining term of the indebtedness.
  (k) Subordination to Certain State Tax Liens.--Any interest held by 
the Administrator in property as security for a loan shall be 
subordinate to any lien on the property for taxes due on the property 
to a State or political subdivision of a State in any case in which the 
lien would, under applicable State law, be superior to that interest if 
the interest were held by any party other than the United States.
  (l) Risk Management Database.--
          (1) Establishment.--The Administrator shall establish, within 
        the management system for the general business loan program, 
        disaster assistance programs, and certified development company 
        program a management information system that will generate a 
        database capable of providing timely and accurate information 
        in order to identify loan underwriting, collections, recovery, 
        and liquidation problems.
          (2) Information to be maintained.--In addition to such other 
        information as the Administrator considers appropriate, the 
        database established under paragraph (1) shall, with respect to 
        each loan program described in paragraph (1), include 
        information relating to--
                  (A) the identity of the institution making the 
                guaranteed loan or issuing the debenture;
                  (B) the identity of the borrower;
                  (C) the total dollar amount of the loan or debenture;
                  (D) the total dollar amount of Government exposure in 
                each loan;
                  (E) the district of the Administration in which the 
                borrower has its principal office;
                  (F) the principal line of business of the borrower, 
                as identified by North American Industry Classification 
                System (or any successor to that system) code;
                  (G) the delinquency rate for each program (including 
                number of instances and days overdue);
                  (H) the number and amount of repurchases, losses, and 
                recoveries in each program;
                  (I) the number of deferrals or forbearances in each 
                program (including days and number of instances);
                  (J) comparisons, on the basis of loan program, 
                lender, Administration district and region, for all the 
                data elements maintained; and
                  (K) underwriting characteristics of each loan that 
                has entered into default, including term, amount and 
                type of collateral, loan-to-value and other actual and 
                projected ratios, line of business, credit history, and 
                type of loan.
Sec. 10333. Small business economic database
  (a) In General.--The Administrator shall maintain an external small 
business economic database for the purpose of providing Congress and 
the Administration information on the economic condition and the 
expansion or contraction of the small business sector.
  (b) Economic Indices.--In carrying out subsection (a), the 
Administrator shall publish on a regular basis national small business 
economic indices and, to the extent feasible, regional small business 
economic indices that include data relating to--
          (1) employment, layoffs, and new hires;
          (2) number of business establishments and the types of such 
        establishments such as sole proprietorships, corporations, and 
        partnerships;
          (3) number of business formations and failures;
          (4) sales and new orders;
          (5) back orders;
          (6) investment in plant and equipment;
          (7) changes in inventory and rate of inventory turnover;
          (8) sources and amounts of capital investment, including 
        debt, equity, and internally generated funds;
          (9) debt-to-equity ratios;
          (10) exports;
          (11) number and dollar amount of mergers and acquisitions by 
        size of acquiring and acquired firm; and
          (12) concentration ratios.
Sec. 10334. Small business computer security and education program
  (a) In General.--The Administrator shall establish a small business 
computer security and education program to--
          (1) provide small business concerns information regarding--
                  (A) utilization and management of computer 
                technology;
                  (B) computer crimes committed against small business 
                concerns; and
                  (C) security for computers owned or utilized by small 
                business concerns;
          (2) provide for periodic forums for small business concerns 
        to improve their knowledge of the matters described in 
        paragraph (1); and
          (3) provide training opportunities to educate small business 
        users on computer security techniques.
  (b) Information and Materials.--The Administrator, after consultation 
with the Director of the National Institute of Standards and Technology 
of the Department of Commerce, shall develop information and materials 
to carry out the activities described in subsection (a).
Sec. 10335. General policies governing the granting and denial of 
                    applications
  The Administrator shall establish general policies (particularly with 
reference to the public interest in the granting and denial of 
applications for financial assistance by the Administrator and with 
reference to the coordination of the functions of the Administration 
with other activities and policies of the Government), which shall 
govern the granting and denial of applications for financial assistance 
by the Administrator.
Sec. 10336. Retention of records
  The Administrator and the Inspector General of the Administration 
shall--
          (1) retain all correspondence, records of inquiries, 
        memoranda, reports, books, and other records, including 
        memoranda as to all investigations conducted by or for the 
        Administration, for a period of at least one year after the 
        date of the record; and
          (2) at all times keep the records available for inspection 
        and examination by the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives or the authorized 
        representatives of either Committee.
Sec. 10337. Consultation and cooperation with other Federal agencies
  (a) In General.--To the extent that the Administrator considers it 
necessary to protect and preserve small business interests, the 
Administrator shall consult and cooperate with other Federal agencies 
in the formulation by the Administrator of policies affecting small 
business concerns.
  (b) Response.--When requested by the Administrator, a Federal agency 
shall consult and cooperate with the Administrator in the formulation 
by the Federal agency of policies affecting small business concerns to 
ensure that small business interests will be recognized, protected, and 
preserved.
  (c) Effect of Section.--This section does not require a Federal 
agency to consult or cooperate with the Administrator in a case in 
which the head of the Federal agency determines that such consultation 
or cooperation would unduly delay action that must be taken by the 
Federal agency to protect the national interest in an emergency.
Sec. 10338. Representation of status as small business concern
  (a) In General.--Any representation of the status of any concern or 
person as a small business concern, HUBZone small business concern, 
small business concern owned and controlled by socially and 
economically disadvantaged individuals, or small business concern owned 
and controlled by women in order to obtain any prime contract or 
subcontract described in subsection (b) shall be of no effect unless 
the representation is in writing.
  (b) Prime Contracts and Subcontracts.--A prime contract or 
subcontract referred to in subsection (a) is--
          (1) a prime contract to be awarded under chapter 251, 253, 
        261, or 263;
          (2) a subcontract to be awarded under chapter 233;
          (3) a subcontract that is to be included as part or all of a 
        goal contained in a subcontracting plan required under section 
        24303 of this title; or
          (4) a prime contract or subcontract to be awarded as a 
        result, or in furtherance, of any other provision of Federal 
        law that specifically references chapter 243 for a definition 
        of program eligibility.
Sec. 10339. Criminal background checks
  Before approval of a loan under the general business loan program or 
a debenture guarantee under the certified development company program, 
the Administrator may verify the applicant's criminal background (or 
lack of criminal background) through the best available means, 
including, if possible, use of the National Crime Information Center 
computer system at the Federal Bureau of Investigation.

                         CHAPTER 105--PENALTIES

Sec.
10501.  False statement; overvaluation of security.
10502.  Unlawful act by person connected with the Administration.
10503.  Concealment, disposal, or conversion of property.
10504.  Misrepresentation of status as small business concern.
10505.  False certification of past compliance.
Sec. 10501. False statement; overvaluation of security
  A person that makes a statement, knowing the statement to be false, 
or willfully overvalues a security for the purpose of obtaining for 
himself or for any applicant a loan, or a loan extension by renewal, 
deferment of action, or otherwise, or the acceptance, release, or 
substitution of security for a loan, or for the purpose of influencing 
in any way the action of the Administrator, or for the purpose of 
obtaining money, property, or anything of value, under this subtitle or 
subtitle II or III, shall be imprisoned not more than 2 years, fined 
not more than $5,000, or both.
Sec. 10502. Unlawful act by person connected with the Administration
  A person connected in any capacity with the Administration that--
          (1) embezzles, abstracts, purloins, or willfully misapplies 
        any money, funds, security, or other thing of value, whether 
        belonging to the Administrator or pledged or otherwise 
        entrusted to the Administrator;
          (2) with intent to defraud the Administrator or any other 
        body politic or corporate, or any individual, or to deceive any 
        officer, auditor, or examiner of the Administration--
                  (A) makes a false entry in a book, report, or 
                statement of or to the Administrator; or
                  (B) without being duly authorized, draws an order or 
                issues, puts forth, or assigns a note, debenture, bond, 
                or other obligation, or draft, bill of exchange, 
                mortgage, judgment, or decree of judgment;
          (3) with intent to defraud, participates or shares in or 
        receives directly or indirectly any money, profit, property, or 
        benefit through any transaction, loan, commission, contract, or 
        other act of the Administrator; or
          (4)(A) gives any unauthorized information concerning a future 
        action or plan of the Administrator that might affect the value 
        of a security; or
          (B) having such knowledge, invests or speculates, directly or 
        indirectly, in a security or property of any company or 
        corporation receiving a loan or other assistance from the 
        Administrator;
shall be imprisoned not more than 5 years, fined not more than $10,000, 
or both.
Sec. 10503. Concealment, disposal, or conversion of property
  A person that, with intent to defraud, knowingly conceals, removes, 
disposes of, or converts to the use of that person or any other person 
any property mortgaged or pledged to, or held by, the Administrator--
          (1) shall be imprisoned not more than one year, fined not 
        more than $1,000, or both; or
          (2) if the value of the property exceeds $100, shall be 
        imprisoned not more than 5 years, fined not more than $5,000, 
        or both.
Sec. 10504. Misrepresentation of status as small business concern
  (a) Offense.--A person that, in writing, misrepresents the status of 
a concern or person as a small business concern, qualified HUBZone 
small business concern, small business concern owned and controlled by 
socially and economically disadvantaged individuals, or small business 
concern owned and controlled by women, in order to obtain for that 
person or any other person--
          (1) a prime contract to be awarded under chapter 251, 253, 
        261, or 263;
          (2) a subcontract to be awarded under chapter 233;
          (3) a subcontract that is to be included as part or all of a 
        goal contained in a subcontracting plan required under section 
        24303 of this title; or
          (4) a prime contract or subcontract to be awarded as a 
        result, or in furtherance, of any other provision of Federal 
        law that specifically references chapter 243 for a definition 
        of program eligibility;
shall be subject to the penalties described in subsection (b).
  (b) Penalties.--A person that violates subsection (a)--
          (1) shall be imprisoned not more than 10 years, fined not 
        more than $500,000 or both;
          (2) shall be subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (3) shall be subject to suspension and debarment as specified 
        in subpart 9.4 of title 48, Code of Federal Regulations (or any 
        successor regulation) on the basis that the misrepresentation 
        indicates a lack of business integrity that seriously and 
        directly affects the present responsibility to perform any 
        contract awarded by the Federal Government or a subcontract 
        under such a contract; and
          (4) shall be ineligible for participation in any program or 
        activity conducted under this subtitle or subtitle II or III 
        for a period not to exceed 3 years.
Sec. 10505. False certification of past compliance
  A person that falsely certifies past compliance with the requirements 
of section 23328 of this title--
          (1) shall be imprisoned not more than 10 years, fined not 
        more than $500,000 or both;
          (2) shall be subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (3) shall be subject to suspension and debarment as specified 
        in subpart 9.4 of title 48, Code of Federal Regulations (or any 
        successor regulation) on the basis that the misrepresentation 
        indicates a lack of business integrity that seriously and 
        directly affects the present responsibility to perform any 
        contract awarded by the Federal Government or a subcontract 
        under such a contract; and
          (4) shall be ineligible for participation in any program or 
        activity conducted under this subtitle or subtitle II or III 
        for a period not to exceed 3 years.

                     CHAPTER 107--PERIODIC REPORTS

Sec.
10701.  Comprehensive annual report on the state of small business and 
          on Administration operations.
10702.  Annual report on expenditures.
10703.  Annual report on secondary market operations.
10704.  Annual report on impact of authority to impose secondary market 
          fees.
10705.  Annual report on needs of small business concerns owned and 
          controlled by veterans and small business concerns owned and 
          controlled by service-disabled veterans.
10706.  Annual report on contract bundling.
10707.  Annual report on business development program.
10708.  Annual report on contract participation goals.
10709.  Annual report on cost savings from breakout procurement center 
          representatives.
10710.  Annual reports on SBIRs, STTRs, and the FAST program.
10711.  Annual report on women's business center program.
10712.  Annual report of the Office of International Trade.
10713.  Annual report on historical trends of the small business sector.
10714.  Biennial report on accredited lenders program.
10715.  Annual report on premier certified lenders program.
10716.  Annual report on foreclosure and liquidation of loans under the 
          certified development company program.
10717.  Reports on disaster assistance.
Sec. 10701. Comprehensive annual report on the state of small business 
                    and on Administration operations
  (a) In General.--As soon as practicable each fiscal year, the 
Administrator shall submit to the President a comprehensive annual 
report.
  (b) Contents.--A report under subsection (a) shall include--
          (1) a description of the state of small business in the 
        Nation as a whole and in each State;
          (2) a description of the operations of the Administration 
        under this subtitle and subtitle II, including the general 
        lending, disaster relief, Government regulation relief, 
        procurement and property disposal, research and development, 
        technical assistance, dissemination of data and information, 
        and other functions under the jurisdiction of the 
        Administration during the previous fiscal year;
          (3) recommendations--
                  (A) for strengthening or improving the functions 
                described in paragraph (2); or
                  (B) when necessary or desirable to implement more 
                effectively congressional policies and proposals, for 
                establishing new or alternative programs;
          (4) the names of the business concerns to which contracts are 
        let and for which financing is arranged by the Administrator, 
        including the amounts of the contracts and financings;
          (5) the proportion of loans and other assistance under 
        subtitle II and provided to minority small business concerns, 
        the goals of the Administrator for the next fiscal year with 
        respect to minority small business concerns, and 
        recommendations for improving assistance to minority small 
        business concerns under subtitle II; and
          (6)(A) a full and detailed account of operations under 
        subtitle III that--
                  (i) discloses the amount of losses sustained by the 
                Government as a result of such operations during the 
                preceding fiscal year; and
                  (ii) includes an estimate of the total losses that 
                the Government can reasonably expect to incur as a 
                result of such operations during the then-current 
                fiscal year;
          (B) full and detailed accounts relating to--
                  (i) the Administrator's recommendations with respect 
                to the feasibility and organization of a small business 
                capital bank to encourage private financing of small 
                business investment companies (as defined in section 
                30101 of this title) to replace Government financing of 
                small business investment companies;
                  (ii) the Administrator's plans to ensure the 
                provision of small business investment company 
                financing to all areas of the country and to all 
                eligible small business concerns, including steps taken 
                to accomplish that;
                  (iii) steps taken by the Administrator to maximize 
                recoupment of Government funds incident to the 
                inauguration and administration of the small business 
                investment company program and to ensure compliance 
                with statutory and regulatory standards relating to the 
                small business investment company program;
                  (iv) an accounting by the Director of the Office of 
                Management and Budget with respect to Federal 
                expenditures to business by executive agencies, 
                specifying the proportion of those expenditures going 
                to business concerns falling above and below small 
                business size standards applicable to small business 
                investment companies;
                  (v) an accounting by the Secretary of the Treasury 
                with respect to tax revenues accruing to the Government 
                from business concerns, specifying the source of those 
                revenues by concerns falling above and below the small 
                business size standards applicable to small business 
                investment companies;
                  (vi) an accounting by the Secretary of the Treasury 
                with respect to tax losses and increased tax revenues 
                related to small business investment company financing 
                of both individual and corporate business taxpayers;
                  (vii) recommendations of the Secretary of the 
                Treasury with respect to additional tax incentives to 
                improve and facilitate the operations of small business 
                investment companies and to encourage the use of their 
                financing facilities by eligible small business 
                concerns;
                  (viii) a report from the Securities and Exchange 
                Commission enumerating actions undertaken by the 
                Securities and Exchange Commission to simplify and 
                minimize the regulatory requirements governing small 
                business investment companies under the Federal 
                securities laws and to eliminate overlapping regulation 
                and jurisdiction as between the Securities and Exchange 
                Commission, the Administration, and other agencies of 
                the executive branch;
                  (ix) a report from the Securities and Exchange 
                Commission with respect to actions taken to facilitate 
                and stabilize the access of small business concerns (as 
                defined in section 30101 of this title) to the 
                securities markets; and
                  (x) actions undertaken by the Securities and Exchange 
                Commission to simplify compliance by small business 
                investment companies with the requirements of 
                Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
                seq.) and to facilitate the election to be taxed as 
                regulated investment companies under section 851 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 851); and
          (C) a full and detailed description or account relating to--
                  (i) the number of small business investment companies 
                the Administrator licensed under subtitle III, the 
                number of licensees (as defined in section 30101 of 
                this title) that have been placed in liquidation, and 
                the number of licensees that have surrendered their 
                licenses in the previous year, identifying the amount 
                of leverage (as defined in section 30101 of this title) 
                each has received and the type of leverage instruments 
                each has used;
                  (ii) the amount of leverage that each licensee 
                received in the previous year and the types of leverage 
                instruments each licensee used;
                  (iii) for each type of financing instrument, the 
                sizes, geographic locations, and other characteristics 
                of the small business investment companies using the 
                financing instrument, including the extent to which 
                small business investment companies have used the 
                leverage from each instrument to make small business 
                loans, equity investments, or both; and
                  (iv) the frequency with which each type of investment 
                instrument has been used in the current year and a 
                comparison of the current year with previous years.
Sec. 10702. Annual report on expenditures
  (a) In General.--As soon as practicable each fiscal year, the 
Administrator shall submit to the President a report showing as 
accurately as possible for the fiscal year the amount of funds 
appropriated to the Administration that the Administrator has expended 
in the conduct of each of the principal activities of the 
Administration such as lending, procurement, contracting, and providing 
technical and managerial aids.
  (b) Contents.--A report under subsection (a) shall disclose, 
separately for each type of loan made under sections 20503 to 20509 of 
this title and separately for all other loan programs, the number and 
amount of loans, the number of applications, the total amount applied 
for, and the number and amount of defaults for each type of equipment 
or service for which loans are authorized by subtitle II.
Sec. 10703. Annual report on secondary market operations
  (a) In General.--Not later than March 31 of each year, the 
Administrator shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report on the secondary market 
operations during the preceding calendar year.
  (b) Contents.--A report under subsection (a) shall include--
          (1) the number and the total dollar amount of loans sold into 
        the secondary market and the distribution of such loans by size 
        of loan, size of lender, geographic location of lender, 
        interest rate, maturity, lender servicing fees, whether the 
        rate is fixed or variable, and premium paid;
          (2) the number and dollar amount of loans resold in the 
        secondary market with a distribution by size of loan, interest 
        rate, and premiums;
          (3) the number and total dollar amount of pools formed;
          (4) the number and total dollar amount of loans in each pool;
          (5) the dollar amount, interest rate, and terms on each loan 
        in each pool and whether the rate is fixed or variable;
          (6) the number, face value, interest rate, and terms of the 
        trust certificates issued for each pool;
          (7) to the maximum extent possible, the use by the lender of 
        the proceeds of sales of loans in the secondary market for 
        additional lending to small business concerns; and
          (8) an analysis of the information reported under paragraphs 
        (1) to (7) to assess the access of small business concerns to 
        capital at reasonable rates and terms as a result of secondary 
        market operations.
Sec. 10704. Annual report on impact of authority to impose secondary 
                    market fees
  (a) Definition of Small Business Concern Owned and Controlled by 
Minorities.--In this section, the term ``small business concerns owned 
and controlled by minorities'' includes a small business concern that 
is owned and controlled by individuals belonging to one of the 
designated groups listed in subclause (1)(B) of the contract clause 
described in section 24301(c) of this title.
  (b) Study, Monitoring, and Evaluation.--The Administrator shall 
study, monitor, and evaluate the impact of subparagraphs (A) to (E) of 
section 10332(d)(5) of this title on--
          (1) the ability of small business concerns owned and 
        controlled by minorities, small business concerns owned and 
        controlled by women, and other small business concerns to 
        obtain financing; and
          (2) the effectiveness, viability, and growth of the secondary 
        market authorized by section 10332(c) of this title.
  (c) Annual Reports.--
          (1) In general.--The Administrator shall annually submit to 
        the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives a report containing the Administrator's 
        findings and recommendations on the impact described in 
        subsection (b), specifically including changes in the interest 
        rates on financings provided to small business concerns owned 
        and controlled by minorities, small business concerns owned and 
        controlled by women, and other small business concerns through 
        the use of the secondary market.
          (2) Findings and recommendations.--The report under paragraph 
        (1) shall state findings and recommendations separately for the 
        ethnic and gender components of the small business concerns 
        described in paragraph (1).
Sec. 10705. Annual report on needs of small business concerns owned and 
                    controlled by veterans and small business concerns 
                    owned and controlled by service-disabled veterans
  (a) In General.--The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship and Committee on 
Veterans Affairs of the Senate and the Committee on Small Business and 
Committee on Veterans Affairs of the House of Representatives a report 
on the needs of small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by service-
disabled veterans.
  (b) Contents.--A report under subsection (a) shall include 
information on--
          (1)(A) the availability of Administration programs for small 
        business concerns owned and controlled by veterans and small 
        business concerns owned and controlled by service-disabled 
        veterans; and
          (B) the degree of utilization of those programs by small 
        business concerns owned and controlled by veterans and small 
        business concerns owned and controlled by service-disabled 
        veterans during the preceding 12-month period, including 
        statistical information on such utilization as compared with 
        the small business community as a whole;
          (2) the percentage and dollar value of Federal contracts 
        awarded to small business concerns owned and controlled by 
        veterans and small business concerns owned and controlled by 
        service-disabled veterans during the preceding 12-month period, 
        based on the data collected under section 27513 of this title; 
        and
          (3) proposals to improve the access of small business 
        concerns owned and controlled by veterans and small business 
        concerns owned and controlled by service-disabled veterans to 
        the assistance made available by the United States.
Sec. 10706. Annual report on contract bundling
  (a) In General.--In March of each year, using information maintained 
under section 25105(e) of this title, the Administrator shall submit to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a 
report on contract bundling.
  (b) Contents.--A report under subsection (a) shall include--
          (1) information on the number (arranged by industrial 
        classification) of small business concerns displaced as prime 
        contractors as a result of the award of bundled contracts by 
        Federal agencies; and
          (2) a description of the activities with respect to 
        previously bundled contracts of each Federal agency during the 
        preceding year, including--
                  (A) information on the number and total dollar amount 
                of all contract requirements that were bundled; and
                  (B) with respect to each bundled contract, 
                information on--
                          (i) the justification for the bundling of 
                        contract requirements;
                          (ii) the cost savings realized by bundling 
                        the contract requirements over the life of the 
                        contract;
                          (iii) the extent to which maintaining the 
                        bundled status of contract requirements is 
                        projected to result in continued cost savings;
                          (iv) the extent to which the bundling of 
                        contract requirements complied with the 
                        procuring agency's small business 
                        subcontracting plan, including the total dollar 
                        value awarded to small business concerns as 
                        subcontractors and the total dollar value 
                        previously awarded to small business concerns 
                        as prime contractors; and
                          (v) the impact of the bundling of contract 
                        requirements on small business concerns unable 
                        to compete as prime contractors for the 
                        consolidated requirements and on the industries 
                        of such small business concerns, including a 
                        description of any changes to the proportion of 
                        any such industry that is composed of small 
                        business concerns.
Sec. 10707. Annual report on business development program
  (a) In General.--Not later than April 30 of each year, the 
Administrator shall submit to Congress a report on the business 
development program.
  (b) Contents.--
          (1) Net worth of participating individuals.--A report under 
        subsection (a) shall disclose--
                  (A) the average personal net worth of individuals who 
                own and control small business concerns that were 
                initially certified for participation in the business 
                development program during the immediately preceding 
                fiscal year; and
                  (B) the dollar distribution of net worths, at $50,000 
                increments, of all such individuals determined to be 
                socially and economically disadvantaged.
          (2) Description and estimate of benefits and costs.--A report 
        under subsection (a) shall include a description and estimate 
        of the benefits and costs that have accrued to the economy and 
        the Government in the immediately preceding fiscal year due to 
        the operations of the program participants that were performing 
        contracts awarded under the business development program.
          (3) Program participants exiting the program.--
                  (A) In general.--A report under subsection (a) shall 
                include a compilation and evaluation of the former 
                program participants that exited the program during the 
                immediately preceding 3 fiscal years.
                  (B) Contents.--The compilation and evaluation under 
                subparagraph (A) shall--
                          (i)(I) disclose the number of former program 
                        participants that are actively engaged in 
                        business operations; and
                          (II) for those former program participants, 
                        separately detail the benefits and costs that 
                        have accrued to the economy during the 
                        immediately preceding fiscal year due to the 
                        operations of the former program participants;
                          (ii)(I) disclose the number of former program 
                        participants that have ceased or substantially 
                        curtailed business operations; and
                          (II) describe the reasons for the cessation 
                        or curtailment; and
                          (iii) disclose the number of former program 
                        participants that have been acquired by other 
                        business concerns or organizations owned and 
                        controlled by other than socially and 
                        economically disadvantaged individuals.
          (4) List of program participants.--A report under subsection 
        (a) shall include a list of all program participants that 
        participated in the program during the preceding fiscal year 
        that discloses, by State and by Administration region, for each 
        program participant--
                  (A) the name of the program participant;
                  (B) the race or ethnicity and gender of the 
                disadvantaged owners;
                  (C) the dollar value of all contracts received in the 
                preceding year;
                  (D) the dollar amount of advance payments received 
                under contracts awarded under the business development 
                program; and
                  (E) a description (including (if appropriate) an 
                estimate of the dollar value) of all benefits received 
                under sections 20511 and 23327 of this title during the 
                preceding year.
          (5) Contract and option value.--A report under subsection (a) 
        shall include the total dollar value of contracts and options 
        awarded under this chapter during the preceding fiscal year--
                  (A) expressed as an absolute amount;
                  (B) expressed as a percentage of total sales--
                          (i) of all program participants during that 
                        year; and
                          (ii) of program participants in each of the 9 
                        years of program participation; and
                  (C) expressed, at such dollar increments as the 
                Administrator considers appropriate, for each 6-digit 
                North American Industry Classification System code 
                under which the contracts and options were classified.
          (6) Additional resources or authorities.--A report under 
        subsection (a) shall include a description of such additional 
        resources or program authorities as may be required to provide 
        the types of services needed over the next 2-year period to 
        service the expected portfolio of program participants.
Sec. 10708. Annual report on contract participation goals
  (a) Report by the Administrator.--
          (1) In general.--The Administrator shall annually--
                  (A) compile and analyze the reports submitted by 
                Federal agencies under section 25106(c) of this title; 
                and
                  (B) submit the reports to the President and Congress.
          (2) Contents.--The Administrator's submission to the 
        President shall include--
                  (A)(i) the Governmentwide goals for participation by 
                qualified HUBZone small business concerns, small 
                business concerns owned and controlled by service-
                disabled veterans, small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals, small business concerns owned and 
                controlled by women, and other small business concerns; 
                and
                  (ii) the performance in attaining those goals;
                  (B)(i) the goals in effect for each Federal agency; 
                and
                  (ii) each Federal agency's performance in attaining 
                those goals;
                  (C)(i) an analysis of any failure to achieve the 
                Governmentwide goals or any Federal agency goals; and
                  (ii) the actions planned by each Federal agency and 
                approved by the Administrator to achieve the goals in 
                the succeeding fiscal year;
                  (D) for each Federal agency and on a Governmentwide 
                basis, the number and dollar value of contracts awarded 
                to qualified HUBZone small business concerns, small 
                business concerns owned and controlled by service-
                disabled veterans, small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals, small business concerns owned and 
                controlled by women, and other small business concerns 
                through--
                          (i) noncompetitive negotiation;
                          (ii) competition restricted to small business 
                        concerns owned and controlled by socially and 
                        economically disadvantaged individuals;
                          (iii) competition restricted to small 
                        business concerns; and
                          (iv) unrestricted competitions; and
                  (E) the number and dollar value of subcontracts 
                awarded to qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals, small business concerns 
                owned and controlled by women, and other small business 
                concerns.
  (b) Report by the President.--The President shall include the 
information required by subsection (a) in each annual report to 
Congress on the state of small business under section 45101(c) of this 
title.
Sec. 10709. Annual report on cost savings from breakout procurement 
                    center representatives
  The Administrator shall annually submit to Congress a report that--
          (1) describes the cost savings achieved during the year 
        covered by the report through the efforts of breakout 
        procurement center representatives assigned to major 
        procurement centers under section 25110 of this title;
          (2) contains an evaluation of the extent to which competition 
        has been increased as a result of those efforts; and
          (3) includes such other information relating to breakout 
        procurement center representatives as the Administrator 
        considers appropriate.
Sec. 10710. Annual reports on SBIRs, STTRs, and the FAST program
  (a) SBIR and STTR Programs.--
          (1) In general.--The Administrator, not less than annually, 
        shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Science and 
        Committee on Small Business of the House of Representatives a 
        report on the SBIRs (as defined in section 26101 of this title) 
        and STTRs (as defined in section 26101 of this title) of the 
        Federal agencies and the Administrator's information and 
        monitoring efforts relating to the SBIRs and STTRs.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A) the data on output and outcomes collected under 
                section 26302(a)(9) and paragraphs (9) and (14) of 
                section 26322 of this title;
                  (B) the number of proposals received from, and the 
                number and total amount of awards to, HUBZone small 
                business concerns under each of the SBIRs and STTRs; 
                and
                  (C) a description of the extent to which Federal 
                agencies are providing in a timely manner information 
                needed to maintain the database under section 26341 of 
                this title.
  (b) FAST Program.--The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Science and Committee on Small Business of the House of 
Representatives a report regarding--
          (1) the number and amount of awards provided and cooperative 
        agreements entered into under the FAST program (as defined in 
        section 26345 of this title) during the preceding year;
          (2) a list of recipients under section 26345 of this title, 
        including their location and the activities being performed 
        with the awards made or under the cooperative agreements 
        entered into; and
          (3) the mentoring networks and the mentoring database, as 
        provided for under section 26345(f) of this title, including--
                  (A) the status of the inclusion of mentoring 
                information in the database required by section 26341 
                of this title; and
                  (B) the status of the implementation and description 
                of the usage of the mentoring networks.
Sec. 10711. Annual report on women's business center program
  (a) In General.--The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
the effectiveness of all projects conducted under chapter 273.
  (b) Contents.--A report under subsection (a) shall include 
information concerning, with respect to each women's business center--
          (1) the number of individuals receiving assistance;
          (2) the number of startup business concerns formed;
          (3) the gross receipts of assisted business concerns;
          (4) the employment increases or decreases of assisted 
        business concerns;
          (5) to the maximum extent practicable, increases or decreases 
        in profits of assisted business concerns; and
          (6) the most recent analysis and determination made by the 
        Administrator under section 27307(a)(2) of this title.
Sec. 10712. Annual report of the Office of International Trade
  The Office of International Trade shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report 
that describes the progress that the Office of International Trade has 
made in carrying out section 10309.
Sec. 10713. Annual report on historical trends of the small business 
                    sector
  The Administrator shall publish annually a report giving a 
comparative analysis and interpretation of the historical trends of the 
small business sector as reflected by the data acquired under section 
10333 of this title.
Sec. 10714. Biennial report on accredited lenders program
  The Administrator shall biennially submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report on the implementation 
of section 33107 of this title that includes data on the number of 
qualified development companies (as defined in section 33101 of this 
title) designated as accredited lenders, their debenture guarantee 
volume, their loss rates, the average processing time on their 
guarantee applications, and such other information as the Administrator 
considers appropriate.
Sec. 10715. Annual report on premier certified lenders program
  (a) In General.--The Administration shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
the implementation of section 33108 of this title.
  (b) Contents.--A report under subsection (a) shall include--
          (1) the number of certified development companies designated 
        as premier certified lenders;
          (2) the debenture guarantee volume of those certified 
        development companies;
          (3) a comparison of the loss rate of premier certified 
        lenders with the loss rate of accredited lenders under section 
        33107 of this title and the loss rate of other certified 
        development companies under chapter 331, specifically comparing 
        default rates and recovery rates on liquidations; and
          (4) such other information as the Administrator considers 
        appropriate.
Sec. 10716. Annual report on foreclosure and liquidation of loans under 
                    the certified development company program
  (a) In General.--Based on information provided by qualified 
development companies (as defined in section 33101 of this title) and 
the Administration, the Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
the results of delegation of authority under section 33109 of this 
title.
  (b) Contents.--A report under subsection (a)--
          (1) shall disclose, with respect to each loan foreclosed or 
        liquidated by a qualified development company under section 
        33109 of this title, or for which losses were otherwise 
        mitigated by the qualified development company pursuant to a 
        workout plan under that section--
                  (A) the total cost of the project financed with the 
                loan;
                  (B) the total original dollar amount guaranteed by 
                the Administrator;
                  (C) the total dollar amount of the loan at the time 
                of liquidation, foreclosure, or mitigation of loss;
                  (D) the total dollar losses resulting from the 
                liquidation, foreclosure, or mitigation of loss; and
                  (E) the total recoveries resulting from the 
                liquidation, foreclosure, or mitigation of loss, both 
                as a percentage of the amount guaranteed and the total 
                cost of the project financed;
          (2) shall disclose, with respect to each qualified 
        development company to which authority is delegated under 
        section 33109 of this title, the totals of each of the amounts 
        described in subparagraphs (A) to (E) of paragraph (1);
          (3) shall disclose, with respect to all loans subject to 
        foreclosure, liquidation, or mitigation under section 33109 of 
        this title, the totals of each of the amounts described in 
        subparagraphs (A) to (E) of paragraph (1);
          (4) include a comparison between--
                  (A) the information provided under paragraph (3) with 
                respect to the 12-month period preceding the date on 
                which the report is submitted; and
                  (B) the same information with respect to loans 
                foreclosed and liquidated, or otherwise treated, by the 
                Administrator during the same period; and
          (5)(A) shall disclose the number of times that the 
        Administrator has failed to--
                  (i) approve or reject a liquidation plan in 
                accordance with subparagraph (A)(ii) or a workout plan 
                in accordance with subparagraph (C)(ii) of section 
                33109(c)(2) of this title; or
                  (ii) approve or deny a request for purchase of 
                indebtedness under section 33109(c)(2)(B)(ii) of this 
                title; and
          (B) include specific information regarding--
                  (i) the reasons for the Administrator's failure; and
                  (ii) any delays that resulted.
Sec. 10717. Reports on disaster assistance
  (a) Definitions.--In this section:
          (1) Major disaster update period.--The term ``major disaster 
        update period'', with respect to a major disaster, means the 
        period beginning on the date on which the President declares 
        the major disaster (including any major disaster relating to 
        which the Administrator declares eligibility for additional 
        disaster assistance under 21308 of this title) and ending on 
        the date on which the declaration terminates.
          (2) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, the Virgin Islands, Guam, American Samoa, and 
        any territory or possession of the United States.
  (b) Monthly Accounting Reports for Major Disasters.--
          (1) Reporting requirements.--Not later than the fifth 
        business day of each month during the applicable period for a 
        major disaster, the Administrator shall submit to the Committee 
        on Small Business and Entrepreneurship and Committee on 
        Appropriations of the Senate and the Committee on Small 
        Business and Committee on Appropriations of the House of 
        Representatives a report on the operation of the disaster 
        assistance programs for that major disaster during the 
        preceding month.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A)(i) the daily average lending volume, in number of 
                loans and dollars, of each category of loan; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report;
                  (B)(i) the weekly average lending volume, in number 
                of loans and dollars, of each category of loan; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report;
                  (C)(i) the amount of funding spent over the month for 
                each category of loan, both in amount of appropriations 
                and in program level; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report;
                  (D)(i) the amount of funding available for loans, in 
                amount of appropriations and in program level, for each 
                category of loan; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report, 
                noting the source of any additional funding;
                  (E) an estimate of how long the available funding for 
                loans will last, based on the spending rate;
                  (F)(i) the amount of funding spent over the month for 
                staff engaged in the operation of the disaster 
                assistance programs;
                  (ii) the number of staff engaged in the operation of 
                the disaster assistance programs; and
                  (iii) the percentage by which the funding and number 
                of staff engaged in the operation of the disaster 
                assistance programs have increased or decreased since 
                the previous report;
                  (G)(i) the amount of funding spent over the month for 
                administrative costs of the disaster assistance 
                programs; and
                  (ii) the percentage by which spending for those 
                administrative costs has increased or decreased since 
                the previous report;
                  (H)(i) the amount of funding available for salaries 
                and expenses combined for operation of the disaster 
                assistance programs; and
                  (ii) the percentage by which that funding has 
                increased or decreased since the previous report, 
                noting the source of any additional funding; and
                  (I) an estimate of how long the available funding for 
                those salaries and expenses will last, based on the 
                spending rate.
  (c) Weekly Disaster Updates for Major Disasters.--
          (1) In general.--Each week during a major disaster update 
        period, the Administrator shall submit to the Committee on 
        Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of Representatives a 
        report on the operation of the disaster assistance programs for 
        the major disaster area.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A)(i) the number of Administration staff performing 
                loan processing, field inspection, and other duties for 
                the major disaster; and
                  (ii) the allocations of the staff in the disaster 
                field offices, disaster recovery centers, workshops, 
                and other Administration offices nationwide;
                  (B)(i) the daily number of applications received from 
                applicants in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (C)(i) the daily number of applications pending 
                application entry from applicants in the major disaster 
                area; and
                  (ii) a breakdown of that number by State;
                  (D)(i) the daily number of applications withdrawn by 
                applicants in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (E)(i) the daily number of applications summarily 
                declined by the Administrator from applicants in the 
                major disaster area; and
                  (ii) a breakdown of that number by State;
                  (F)(i) the daily number of applications declined by 
                the Administrator from applicants in the major disaster 
                area; and
                  (ii) a breakdown of that number by State;
                  (G)(i) the daily number of applications in process 
                from applicants in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (H)(i) the daily number of applications approved by 
                the Administrator from applicants in the major disaster 
                area; and
                  (ii) a breakdown of that number by State;
                  (I)(i) the daily dollar amount of applications 
                approved by the Administrator from applicants in the 
                major disaster area; and
                  (ii) a breakdown of that number by State;
                  (J)(i) the daily number of loans disbursed, both 
                partially and fully, by the Administrator to applicants 
                in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (K)(i) the daily dollar amount of loans disbursed, 
                both partially and fully, to applicants in the major 
                disaster area; and
                  (ii) a breakdown of that number by State;
                  (L)(i) the number of applications approved, including 
                dollar amount approved, and applications partially and 
                fully disbursed, including dollar amounts, since the 
                last report under paragraph (1); and
                  (M)(i) the declaration date, physical damage closing 
                date, and economic injury closing date for the major 
                disaster; and
                  (ii) the number of counties in the major disaster 
                area.
  (d) Periods When Additional Disaster Assistance Is Made Available.--
          (1) In general.--During any period for which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title, the Administrator 
        shall, on a monthly basis, submit to the Committee on Small 
        Business and Entrepreneurship of the Senate and the Committee 
        on Small Business of the House of Representatives a report on 
        the disaster assistance operations of the Administrator with 
        respect to the applicable major disaster.
          (2) Contents.--A report under paragraph (1) shall specify--
                  (A) the number of applications for disaster 
                assistance distributed;
                  (B) the number of applications for disaster 
                assistance received;
                  (C) the average time for the Administrator to approve 
                or disapprove an application for disaster assistance;
                  (D) the number of disaster loans approved;
                  (E) the average time for initial disbursement of 
                disaster loan proceeds; and
                  (F) the dollar amount of disaster loan proceeds 
                disbursed.
  (e) Notice of Need for Supplemental Funds.--On the date on which the 
Administrator notifies any committee of the Senate or the House of 
Representatives that supplemental funding is necessary for the disaster 
assistance programs in any fiscal year, the Administrator shall notify 
in writing the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives regarding the need for supplemental funds for the 
disaster assistance programs.
  (f) Report on Contracting.--
          (1) In general.--Not later than 6 months after the date on 
        which the President declares a major disaster, and every 6 
        months thereafter until the date that is 18 months after the 
        date on which the major disaster is declared, the Administrator 
        shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report regarding 
        Federal contracts awarded as a result of the major disaster.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A) the number of contracts awarded as a result of 
                the major disaster;
                  (B) the number of contracts awarded to small business 
                concerns as a result of the major disaster;
                  (C) the number of contracts awarded to women-owned 
                business concerns and minority-owned business concerns 
                as a result of the major disaster; and
                  (D) the number of contracts awarded to business 
                concerns local to the major disaster area as a result 
                of the major disaster.
  (g) Annual Reports on Disaster Assistance.--
          (1) In general.--Not later than 45 days after the end of a 
        fiscal year, the Administrator shall submit to the Committee on 
        Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of Representatives a 
        report on the disaster assistance operations of the 
        Administration for the fiscal year.
          (2) Contents.--A report under paragraph (1) shall--
          (1) specify the number of Administration personnel involved 
        in disaster assistance operations;
          (2) describe any material changes to disaster assistance 
        operations, such as changes to technologies used or to 
        personnel responsibilities;
          (3) describe and assess the effectiveness of the 
        Administrator in responding to disasters during the fiscal 
        year, including a description of the number and dollar amounts 
        of loans made for damage and for economic injury; and
          (4) describe the plans of the Administrator for preparing to 
        respond to disasters during the next fiscal year.

                          CHAPTER 109--FUNDING

Sec.
10901.  Commitments in full amounts provided by law.
10902.  Program levels.
10903.  Authorization of appropriations.
Sec. 10901. Commitments in full amounts provided by law
  (a) In General.--Notwithstanding any other provision of law, the 
Administrator shall enter into commitments for direct loans and to 
guarantee loans, debentures, payment of rentals, or other amounts due 
under qualified contracts and other types of financial assistance, and 
enter into commitments to purchase debentures and preferred securities 
and to guarantee sureties against loss pursuant to programs under 
subtitles II and III, in the full amounts provided by law subject only 
to--
          (1) the availability of qualified applications; and
          (2) limitations contained in appropriations Acts.
  (b) Effect of Section.--Nothing in this section authorizes the 
Administrator to reduce or limit the authority of the Administrator to 
enter into a commitment described in subsection (a).
  (c) Multiple Fiscal Years.--Subject to approval in appropriations 
Acts, amounts authorized for preferred securities, debentures, or 
participating securities under chapter 303 may be obligated in one 
fiscal year and disbursed or guaranteed in any one or more of the 4 
subsequent fiscal years.
Sec. 10902. Program levels
  (a) Fiscal Year 2005.--The following program levels are authorized 
for fiscal year 2005:
          (1) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make--
                  (A) $75,000,000 in technical assistance grants, as 
                provided in chapter 211; and
                  (B) $105,000,000 in direct loans, as provided in 
                chapter 211.
          (2) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make $23,050,000,000 in deferred 
        participation loans and other financings. Of that sum, the 
        Administrator may make--
                  (A) $16,500,000,000 in general business loans, as 
                provided in division B of subtitle II;
                  (B) $6,000,000,000 in certified development company 
                financings, as provided in section 20507 of this title 
                and chapter 331;
                  (C) $500,000,000 in loans, as provided in section 
                20512 of this title; and
                  (D) $50,000,000 in loans, as provided in chapter 211.
          (3) For the programs authorized by chapter 303, the 
        Administrator may make--
                  (A) $4,250,000,000 in purchases of participating 
                securities; and
                  (B) $3,250,000,000 in guarantees of debentures.
          (4) For the programs authorized by chapter 321, the 
        Administrator may enter into guarantees not to exceed 
        $6,000,000,000, of which not more than 50 percent may be in 
        bonds approved under section 32102(a)(4) of this title.
          (5) The Administrator may make grants or enter into 
        cooperative agreements for a total amount of $7,000,000 for 
        SCORE.
  (b) Fiscal Year 2006.--The following program levels are authorized 
for fiscal year 2006:
          (1) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make--
                  (A) $80,000,000 in technical assistance grants, as 
                provided in chapter 211; and
                  (B) $110,000,000 in direct loans, as provided in 
                chapter 211.
          (2) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make $25,050,000,000 in deferred 
        participation loans and other financings. Of that sum, the 
        Administrator may make--
                  (A) $17,000,000,000 in general business loans, as 
                provided in division B of subtitle II;
                  (B) $7,500,000,000 in certified development company 
                financings, as provided in section 20507 of this title 
                and chapter 331;
                  (C) $500,000,000 in loans, as provided in section 
                20512 of this title; and
                  (D) $50,000,000 in loans, as provided in chapter 211.
          (3) For the programs authorized by chapter 303, the 
        Administrator may make--
                  (A) $4,500,000,000 in purchases of participating 
                securities; and
                  (B) $3,500,000,000 in guarantees of debentures.
          (4) For the programs authorized by chapter 321, the 
        Administrator may enter into guarantees not to exceed 
        $6,000,000,000, of which not more than 50 percent may be in 
        bonds approved under section 32102(a)(4) of this title.
          (5) The Administrator may make grants or enter into 
        cooperative agreements for a total amount of $7,000,000 for 
        SCORE.
  (c) Amount of Deferred Participation Loans.--Except as may be 
otherwise specifically provided by law, the amount of deferred 
participation loans authorized in this section--
          (1) means the net amount of the loan principal guaranteed by 
        the Administrator and does not include any amount that is not 
        guaranteed; and
          (2) shall be available for a national program, except that 
        the Administrator may use not more than an amount equal to 10 
        percent of the amount authorized each year for any special or 
        pilot program directed to identified sectors of the small 
        business community or to specific geographic regions of the 
        United States.
Sec. 10903. Authorization of appropriations
  (a) Certain Administrative Expenses.--For each fiscal year, there are 
authorized to be appropriated such sums as are necessary, to remain 
available until expended--
          (1) to carry out the small business development center 
        program, but not to exceed the annual funding level specified 
        in section 27102 of this title;
          (2) to pay the expenses of the National Small Business 
        Development Center Advisory Board under section 27109 of this 
        title;
          (3) to pay the expenses of the information sharing system 
        under section 27104(j) of this title;
          (4) to pay the expenses of the Association for conducting the 
        accreditation program under section 27111 of this title;
          (5) to pay the expenses of the Administration, including 
        salaries of examiners, for conducting examinations as part of 
        the accreditation program conducted by the Association; and
          (6) to pay for small business development center grants as 
        directed by Congress.
  (b) Programs for Which Program Levels Are Established Under Section 
10902.--
          (1) In general.--There are authorized to be appropriated to 
        the Administration for each of fiscal years 2005 and 2006 such 
        sums as are necessary to carry out--
                  (A) the provisions of this subtitle and subtitle II 
                not elsewhere provided for (including salaries and 
                expenses of the Administration and necessary loan 
                capital for loans under the disaster loan program); and
                  (B) subtitle III.
          (2) Limitations.--Notwithstanding any other provision of this 
        subsection, for each of fiscal years 2005 and 2006, 
        respectively--
                  (A) no funds are authorized to be used as loan 
                capital for the loan program authorized by section 
                20512 of this title except by transfer from another 
                Federal agency to the Administration, unless the 
                program level authorized for general business loans 
                under subsection (a)(2)(A) or (b)(2)(A) of section 
                10902 of this title is fully funded; and
                  (B) the Administrator may not approve loans on behalf 
                of the Administration or on behalf of any other Federal 
                agency, by contract or otherwise, under terms or 
                conditions other than those specifically authorized 
                under this subtitle or subtitle II or III, except that 
                the Administrator may approve loans under section 20512 
                of this title in gross amounts of not more than 
                $2,000,000.
  (c) Office of Advocacy.--There is authorized to be appropriated to 
carry out section 10307 of this title $1,000,000, to remain available 
until expended.
  (d) Office of Veterans Business Development.--There are authorized to 
be appropriated to carry out section 10313 of this title--
          (1) $1,500,000 for fiscal year 2005; and
          (2) $2,000,000 for fiscal year 2006.
  (e) Losses and Interest Subsidies.--There are authorized to be 
appropriated for each fiscal year such sums as are necessary for losses 
and interest subsidies incurred by the accounts referred to in section 
10332(a)(1) of this title.
  (f) HUBZone Program.--There is authorized to be appropriated to carry 
out chapter 253 $10,000,000 for each of fiscal years 2004 through 2006.
  (g) FAST Program.--
          (1) In general.--There is authorized to be appropriated to 
        carry out the FAST program (including mentoring networks) under 
        section 26345 of this title $10,000,000 for each of fiscal 
        years 2001 through 2005.
          (2) Mentoring database.--Of the total amount made available 
        under paragraph (1) for fiscal years 2001 through 2005, a 
        reasonable amount, not to exceed a total of $500,000, may be 
        used by the Administrator to carry out section 26345(f)(3) of 
        this title.
  (h) Small Business Development Center Program.--There are authorized 
to be appropriated to carry out chapter 271--
          (1) $130,000,000 for fiscal year 2005; and
          (2) $135,000,000 for fiscal year 2006.
  (i) National Veterans Business Development Corporation.--
          (1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to the National Veterans Business 
        Development Corporation to carry out section 27514 of this 
        title--
                  (A) $4,000,000 for fiscal year 2001;
                  (B) $4,000,000 for fiscal year 2002;
                  (C) $2,000,000 for fiscal year 2003; and
                  (D) $2,000,000 for fiscal year 2004.
          (2) Matching requirement.--
                  (A) Fiscal year 2002.--The amount made available to 
                the National Veterans Business Development Corporation 
                for fiscal year 2002 may not exceed twice the amount 
                that the Corporation certifies that it will provide for 
                that fiscal year from sources other than the Federal 
                Government.
                  (B) Subsequent fiscal years.--The amount made 
                available to the National Veterans Business Development 
                Corporation for fiscal year 2003 or 2004 may not exceed 
                the amount that the Corporation certifies that it will 
                provide for that fiscal year from sources other than 
                the Federal Government.
          (3) Privatization.--The National Veterans Business 
        Development Corporation shall institute and implement a plan to 
        raise private funds and become a self-sustaining corporation.
  (j) Business Grants and Cooperative Agreements.--There is authorized 
to be appropriated to carry out section 29102 of this title $6,600,000 
for each of fiscal years 2001 through 2006, to remain available until 
expended.
  (k) Paul D. Coverdell Drug-Free Workplace Program.--
          (1) In general.--There is authorized to be appropriated to 
        carry out section 29104 of this title (other than section 
        29104(b)(2) of this title) $5,000,000 for each of fiscal years 
        2005 and 2006. Amounts made available under this paragraph 
        shall remain available until expended.
          (2) Small business development centers.--Of the total amount 
        made available under paragraph (1) for each of fiscal years 
        2005 and 2006, not more than the greater of 10 percent or 
        $500,000 may be used to carry out section 27104(b)(20) of this 
        title.
          (3) Additional authorization for technical assistance 
        grants.--There are authorized to be appropriated to carry out 
        section 29104(b)(2) of this title $1,500,000 for each of fiscal 
        years 2005 and 2006. Amounts made available under this 
        paragraph shall remain available until expended.
          (4) Limitation on administrative costs.--Not more than 5 
        percent of the total amount made available under this 
        subsection for any fiscal year shall be used for administrative 
        costs (determined without regard to the administrative costs of 
        eligible intermediaries).
  (l) New Markets Venture Capital Company Program.--
          (1) In general.--There are authorized to be appropriated for 
        fiscal years 2001 through 2006, to remain available until 
        expended, the following sums:
                  (A) Such subsidy budget authority as is necessary to 
                guarantee $150,000,000 of debentures under chapter 305.
                  (B) $30,000,000 to make grants under chapter 305.
          (2) Funds collected for examinations.--Funds deposited under 
        section 30512(d) of this title are authorized to be 
        appropriated only for the costs of examinations under section 
        30512 of this title and for the costs of other oversight 
        activities with respect to the new markets venture capital 
        company program.
  (m) Renewable Fuel Capital Investment Company Program.--
          (1) In general.--Subject to the availability of 
        appropriations, the Administrator may make $15,000,000 in 
        operational assistance grants under section 30707 of this title 
        for each of fiscal years 2008 and 2009.
          (2) Funds collected for examinations.--Funds deposited under 
        section 30711(d) of this title are authorized to be 
        appropriated only for the costs of examinations under section 
        30711 of this title and for the costs of other oversight 
        activities with respect to the renewable fuel capital 
        investment company program.

    Subtitle II--Loan, Contracting, and Related Assistance Programs

                     DIVISION A--GENERAL PROVISIONS

                    CHAPTER 201--GENERAL PROVISIONS

Sec.
20101.  Certification of compliance with child support obligations.
20102.  Authorities in carrying out programs for small business concerns 
          in areas with high proportions of unemployed or low-income 
          individuals and small business concerns owned by low-income 
          individuals.
20103.  Extension or renewal of loans.
20104.  Deferral of repayment for active duty reservists.
20105.  Ownership interest arising from community property law.
Sec. 20101. Certification of compliance with child support obligations
  (a) In General.--A recipient of financial assistance under this 
subtitle shall certify that the recipient is not more than 60 days 
delinquent under the terms of any--
          (1) administrative order;
          (2) court order; or
          (3) repayment agreement entered into between the recipient 
        and the custodial parent or State agency providing child 
        support enforcement services;
that requires the recipient to pay child support (as defined in section 
459(i) of the Social Security Act (42 U.S.C. 659(i))).
  (b) Enforcement.--The Administrator shall promulgate such regulations 
as are necessary to enforce compliance with this section.
Sec. 20102. Authorities in carrying out programs for small business 
                    concerns in areas with high proportions of 
                    unemployed or low-income individuals and small 
                    business concerns owned by low-income individuals
  In carrying out section 20504 of this title and the business 
development program, the Administrator may--
          (1) use, with their consent, the services and facilities of 
        Federal agencies without reimbursement, and, with the consent 
        of any State or political subdivision of a State, accept and 
        use the services and facilities of the State or subdivision 
        without reimbursement;
          (2) accept, in the name of the Administration, and employ or 
        dispose of in furtherance of the purposes of this subtitle, any 
        money or property, real, personal, or mixed, tangible, or 
        intangible, received by gift, devise, bequest, or otherwise;
          (3) accept voluntary and uncompensated services, 
        notwithstanding section 1342 of title 31; and
          (4)(A) employ experts and consultants or organizations of 
        experts and consultants as authorized by section 3109 of title 
        5, except that no individual may be employed under this 
        subsection for more than 100 days in any fiscal year;
          (B) compensate individuals employed under subparagraph (A) at 
        rates not in excess of the daily equivalent of the highest rate 
        payable under section 5332 of title 5, including travel time;
          (C) allow individuals employed under subparagraph (A), while 
        away from their homes or regular places of business, travel 
        expenses (including per diem in lieu of subsistence) as 
        authorized by section 5703 of title 5 for persons in the 
        Government service employed intermittently, while so employed; 
        and
          (D) notwithstanding section 3109(b) of title 5, renew 
        contracts for employment under subparagraph (A) annually.
Sec. 20103. Extension or renewal of loans
  (a) In General.--The Administrator may extend the maturity of or 
renew a loan under the general business loan program, disaster loan 
program, or microloan program for additional periods not to exceed 10 
years beyond the period stated in the loan if the extension or renewal 
will aid in the orderly liquidation of the loan.
  (b) Inapplicability to Certain Disaster Loans.--Subsection (a) does 
not apply to a loan under the disaster loan program that has a term of 
more than 20 years.
Sec. 20104. Deferral of repayment for active duty reservists
  (a) Definitions.--In this section:
          (1) Eligible reservist.--The term ``eligible reservist'' 
        means a member of a reserve component of the Armed Forces 
        ordered to active duty during a period of military conflict.
          (2) Essential employee.--The term ``essential employee'' 
        means an individual who is employed by a small business concern 
        and whose managerial or technical expertise is critical to the 
        successful day-to-day operations of the small business concern.
          (3) Period of military conflict.--The term ``period of 
        military conflict'' means--
                  (A) a period of war declared by Congress;
                  (B) a period of national emergency declared by 
                Congress or by the President; or
                  (C) a period of a contingency operation (as defined 
                in section 101(a) of title 10).
          (4) Qualified borrower.--The term ``qualified borrower'' 
        means--
                  (A) an individual who is an eligible reservist and 
                who received a direct loan under the general business 
                loan program or a disaster assistance program before 
                being ordered to active duty; or
                  (B) a small business concern that received a direct 
                loan under the general business loan program or a 
                disaster assistance program before an eligible 
                reservist, who is an essential employee, was ordered to 
                active duty.
  (b) Deferral of Direct Loans.--
          (1) In general.--The Administrator shall, on written request, 
        defer repayment of principal and interest due on a direct loan 
        made under the general business loan program or a disaster 
        assistance program if the loan was incurred by a qualified 
        borrower.
          (2) Period of deferral.--The period of deferral for repayment 
        under paragraph (1) shall begin on the date on which the 
        eligible reservist is ordered to active duty and terminate on 
        the date that is 180 days after the date on which the eligible 
        reservist is discharged or released from active duty.
          (3) Interest rate reduction during deferral.--Notwithstanding 
        any other provision of law, during the period of deferral under 
        paragraph (2), the Administrator may reduce the interest rate 
        on a loan qualifying for a deferral under this subsection.
  (c) Deferral of Loan Guarantees and Other Financings.--The 
Administrator shall--
          (1) encourage intermediaries participating in the microloan 
        program to defer repayment of a microloan made with proceeds 
        made available under the microloan program, if the microloan 
        was incurred by a small business concern that is eligible to 
        apply for assistance under section 21303 of this title; and
          (2) establish guidelines to--
                  (A) encourage lenders and other intermediaries to 
                defer repayment of, or provide other relief relating 
                to--
                          (i) loan guarantees under the general 
                        business loan program and financings under the 
                        certified development company program that were 
                        incurred by small business concerns that are 
                        eligible to apply for assistance under section 
                        21303 of this title; and
                          (ii) loan guarantees provided under the 
                        microloan program if the intermediary provides 
                        relief to a small business concern under this 
                        subsection; and
                  (B) implement a program to provide for the deferral 
                of repayment or other relief to any intermediary 
                providing relief to a small business borrower under 
                this subsection.
Sec. 20105. Ownership interest arising from community property law
  Ownership requirements to determine the eligibility of a small 
business concern that applies for assistance under any credit program 
under this subtitle shall be determined without regard to any ownership 
interest of a spouse arising solely from the application of the 
community property law of a State for purposes of determining marital 
interests.

               DIVISION B--GENERAL BUSINESS LOAN PROGRAM

                   CHAPTER 203--GENERAL PURPOSE LOANS

Sec.
20301.  Loan authority.
20302.  Methods of participation.
20303.  No credit elsewhere.
20304.  Sound and secure requirement.
20305.  Level of participation in guaranteed loans.
20306.  Maximum loan amounts.
20307.  Interest rates.
20308.  Prepayment charges.
20309.  Maximum term.
20310.  Deferment of payments.
20311.  Guarantee fees.
20312.  Certified lenders program.
20313.  Penalty fee on late payment.
20314.  Yearly fee.
20315.  Notification to Congress of significant policy or administrative 
          changes.
20316.  Pilot programs.
20317.  Calculation of subsidy rate.
20318.  Leasing.
20319.  Real estate appraisals.
20320.  Express loan program.
20321.  Loan application preparation and loan servicing by qualified 
          development companies.
20322.  Increased veteran/reservist participation program.
Sec. 20301. Loan authority
  To the extent and in such amounts as are provided in advance in 
appropriation Acts, the Administrator may make loans to small business 
concerns (including a small business concern owned by a qualified 
Indian tribe) for plant acquisition, construction, conversion, or 
expansion, including the acquisition of land, material, supplies, 
equipment, and working capital.
Sec. 20302. Methods of participation
  The Administrator may make a loan under section 20301 of this title--
          (1) directly; or
          (2) in cooperation with a bank or other lending institution 
        or any other entity through an agreement to participate on an 
        immediate or deferred (guaranteed) basis.
Sec. 20303. No credit elsewhere
  (a) In General.--No financial assistance shall be extended under the 
general business loan program if the applicant can obtain credit 
elsewhere.
  (b) Immediate Participation.--No immediate participation may be 
purchased unless it is shown that a deferred participation is not 
available.
  (c) Direct Financing.--No direct financing may be made unless it is 
shown that a participation is not available.
Sec. 20304. Sound and secure requirement
  (a) In General.--A loan made under the general business loan program 
shall be of such sound value or so secured as reasonably to ensure 
repayment.
  (b) Reasonable Doubt.--In applying subsection (a) in the case of a 
loan to assist a public or private organization for the disabled or to 
assist a disabled individual as provided in section 20503 of this 
title, any reasonable doubt shall be resolved in favor of the 
applicant.
  (c) Energy Measures.--Recognizing that greater risk may be associated 
with a loan for an energy measure as provided in section 20505 of this 
title, in applying subsection (a) in the case of such a loan--
          (1) factors in determining sound value shall include--
                  (A) quality of the product or service;
                  (B) technical qualifications of the applicant or 
                employees of the applicant;
                  (C) sales projections; and
                  (D) the financial status of the applicant; and
          (2) the loan need not be as sound as is generally required 
        for a loan under the general business loan program.
  (d) No Delegation of Authority.--The authority conferred by this 
subsection shall be exercised solely by Administration personnel and 
shall not be delegated to other than Administration personnel.
Sec. 20305. Level of participation in guaranteed loans
  (a) In General.--Except as provided in subsection (b), in an 
agreement to participate in a loan on a deferred basis under the 
general business loan program (including a loan made under the 
preferred lenders program), participation by the Administrator shall be 
equal to--
          (1) 75 percent of the balance of the financing outstanding at 
        the time of disbursement of the loan, if the balance exceeds 
        $150,000; or
          (2) 85 percent of the balance of the financing outstanding at 
        the time of disbursement of the loan, if the balance is less 
        than or equal to $150,000.
  (b) Reduced Participation on Request.--
          (1) In general.--The guarantee percentage specified by 
        subsection (a) for a loan under the general business loan 
        program may be reduced on the request of the participating 
        lender.
          (2) Prohibition.--The Administrator shall not use the 
        guarantee percentage requested by a participating lender under 
        paragraph (1) as a criterion for establishing priorities in 
        approving loan guarantee requests under the general business 
        loan program.
  (c) Participation Under Export Working Capital Program.--
Notwithstanding subsection (a), under an agreement to participate in a 
loan on a deferred basis under the export working capital program, 
participation by the Administrator shall not exceed 90 percent.
  (d) Refinancing of Indebtedness.--On any portion of a loan used to 
refinance indebtedness held by a bank or other lending institution, the 
Administrator shall limit the amount of deferred participation to 80 
percent of the amount of the loan at the time of disbursement.
Sec. 20306. Maximum loan amounts
  (a) In General.--Except as provided in subsection (b) and subject to 
subsection (c), no loan shall be made to a borrower under the general 
business loan program if the total amount outstanding and committed (on 
a deferred basis, through a participation on an immediate basis, or 
directly) to the borrower under the general business loan program and 
microloan program would exceed $1,500,000 (or if the gross loan amount 
would exceed $2,000,000).
  (b) Small Business Concern in Industry Engaged in or Adversely 
Affected by International Trade.--A loan solely for the purposes 
provided in section 20510 of this title may be made under the general 
business loan program and microloan program if the total amount 
outstanding and committed (on a deferred basis) to the borrower under 
the general business loan program would not exceed $1,750,000, of which 
not more than $1,250,000 may be used for working capital, supplies, or 
financings under section 20508 of this title for export purposes.
  (c) Direct Loans; Participation on an Immediate Basis.--No loan shall 
be made under the general business loan program, either directly or in 
cooperation with banks or other lending institutions through agreements 
to participate on an immediate basis, if the amount would exceed 
$350,000.
Sec. 20307. Interest rates
  (a) Maximum Rate Prescribed by the Administrator.--Notwithstanding 
the provisions of the constitution of any State or the laws of any 
State limiting the rate or amount of interest that may be charged, 
taken, received, or reserved, the maximum legal rate of interest on a 
financing made on a deferred basis under the general business loan 
program shall not exceed a rate prescribed by the Administrator.
  (b) Direct Loans and Immediate Participation Loans.--The rate of 
interest for the Administrator's share of any direct loan or immediate 
participation loan under the general business loan program shall not 
exceed the current average market yield on outstanding marketable 
obligations of the United States with remaining periods to maturity 
comparable to the average maturities of such loans and adjusted to the 
nearest 0.125 percent, and an additional amount as determined by the 
Administrator, but not to exceed one percent per year.
  (c) Preferred Lenders Program.--The maximum interest rate for a loan 
under the general business loan program that is guaranteed under the 
preferred lenders program shall not exceed the maximum interest rate, 
as determined by the Administrator, applicable to other loans 
guaranteed under the general business loan program.
  (d) Loans To Assist the Disabled.--In the case of a loan under the 
general business loan program to assist a public or private 
organization for the disabled or to assist a disabled individual as 
provided in section 20503 of this title, the interest rate shall be 3 
percent per year.
  (e) Payment of Accrued Interest.--
          (1) In general.--A bank or other lending institution making a 
        claim for payment on the guaranteed portion of a loan made 
        under the general business loan program shall be paid the 
        accrued interest due on the loan from the earliest date of 
        default to the date of payment of the claim at a rate not to 
        exceed the rate of interest on the loan on the date of default, 
        minus one percent.
          (2) Loans sold on secondary market.--If a loan described in 
        paragraph (1) is sold on the secondary market, the amount of 
        interest paid to a bank or other lending institution described 
        in that paragraph from the earliest date of default to the date 
        of payment of the claim shall be no more than the agreed upon 
        rate, minus one percent.
          (3) Applicability.--Paragraphs (1) and (2) do not apply to 
        loans made on or after October 1, 2000.
Sec. 20308. Prepayment charges
  (a) In General.--A borrower that prepays a loan guaranteed under the 
general business loan program shall remit to the Administrator a 
subsidy recoupment fee calculated in accordance with subsection (b) 
if--
          (1) the loan is for a term of not less than 15 years;
          (2) the prepayment is voluntary;
          (3) the amount of prepayment in any calendar year is more 
        than 25 percent of the outstanding balance of the loan; and
          (4) the prepayment is made within the first 3 years after 
        disbursement of the loan proceeds.
  (b) Subsidy Recoupment Fee.--The subsidy recoupment fee charged under 
subsection (a) shall be--
          (1) 5 percent of the amount of prepayment, if the borrower 
        prepays during the first year after disbursement;
          (2) 3 percent of the amount of prepayment, if the borrower 
        prepays during the second year after disbursement; and
          (3) one percent of the amount of prepayment, if the borrower 
        prepays during the third year after disbursement.
Sec. 20309. Maximum term
  (a) In General.--Except as provided in subsection (b), no loan 
(including a loan renewal or extension) shall be made under the general 
business loan program for a term or terms exceeding 25 years.
  (b) Exception.--Any portion of a loan that is made under the general 
business loan program for the purpose of acquiring real property or 
constructing, converting, or expanding a facility may have a term of 25 
years plus such additional period as is estimated may be required to 
complete the construction, conversion, or expansion.
Sec. 20310. Deferment of payments
  The Administrator may defer payments on the principal of a loan under 
the general business loan program for a grace period, and use such 
other methods as the Administrator considers necessary and appropriate, 
to ensure the successful establishment and operation of a small 
business concern.
Sec. 20311. Guarantee fees
  (a) In General.--With respect to a loan guaranteed under the general 
business loan program (other than a loan that is repayable in one year 
or less), the Administrator shall collect a guarantee fee, which shall 
be payable by the participating lender, and may be charged to the 
borrower, as follows:
          (1) A guarantee fee of not to exceed 2 percent of the 
        deferred participation share of a total loan amount that is not 
        more than $150,000.
          (2) A guarantee fee of not to exceed 3 percent of the 
        deferred participation share of a total loan amount that is 
        more than $150,000, but not more than $700,000.
          (3) A guarantee fee of not to exceed 3.5 percent of the 
        deferred participation share of a total loan amount that is 
        more than $700,000.
          (4) In addition to the guarantee fee under paragraph (3), a 
        guarantee fee equal to 0.25 percent of any portion of the 
        deferred participation share that is more than $1,000,000.
  (b) Retention of Certain Fees.--A lender participating in the general 
business loan program may retain not more than 25 percent of a fee 
collected under subsection (a)(1).
Sec. 20312. Certified lenders program
  (a) In General.--The Administrator may establish a certified lenders 
program for lenders that establish their knowledge of Administration 
laws (including regulations) concerning the guaranteed loan program and 
their proficiency in program requirements.
  (b) Suspension or Revocation.--The designation of a lender as a 
certified lender shall be suspended or revoked at any time that the 
Administrator determines that the lender is not adhering to regulations 
prescribed by the Administrator or that the loss experience of the 
lender is excessive as compared with that of other lenders, but the 
suspension or revocation shall not affect any outstanding guarantee.
  (c) Uniform and Simplified Loan Form.--To encourage all lending 
institutions and other entities making loans under the general business 
loan program to provide loans of $50,000 or less in guarantees to 
eligible small business loan applicants, the Administrator shall 
develop, and allow participating lenders to solely use, a uniform and 
simplified loan form for such loans.
  (d) Loan Liquidation.--
          (1) In general.--The Administrator may permit a lender 
        participating in the certified lenders program to liquidate a 
        loan made with a guarantee from the Administrator in accordance 
        with a liquidation plan approved by the Administrator.
          (2) Automatic approval.--If the Administrator does not 
        approve or deny a request for approval of a liquidation plan 
        within 10 business days after the date on which the request is 
        made (or with respect to any routine liquidation activity under 
        such a plan, within 5 business days), the request shall be 
        deemed to be approved.
Sec. 20313. Penalty fee on late payment
  The Administrator may permit a participating lender to impose and 
collect a reasonable penalty fee on late payment of a loan guaranteed 
under the general business loan program in an amount not to exceed 5 
percent of the monthly loan payment per month plus interest.
Sec. 20314. Yearly fee
  (a) Definition of Cost.--In this section, the term ``cost'' has the 
meaning given the term in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a).
  (b) Fee.--With respect to a loan approved under the general business 
loan program, the Administrator shall assess, collect, and retain a 
fee, not to exceed 0.55 percent per year of the outstanding balance of 
the deferred participation share of the loan, in an amount established 
once annually by the Administrator in the Administrator's annual budget 
request to Congress, as necessary to reduce to zero the cost to the 
Administrator of making guarantees under the general business loan 
program.
  (c) Payer.--The yearly fee assessed under subsection (b) shall be 
payable by the participating lender and shall not be charged to the 
borrower.
  (d) Lowering of Borrower Fees.--If the Administrator determines that 
fees paid by lenders and by small business borrowers for guarantees 
under the general business loan program may be reduced, consistent with 
reducing to zero the cost to the Administrator of making such 
guarantees--
          (1) the Administrator shall first consider reducing fees paid 
        by small business borrowers under paragraphs (1) to (3) of 
        section 20311(a) of this title, to the maximum extent possible; 
        and
          (2) fees paid by small business borrowers shall not be 
        increased above the levels in effect on December 8, 2004.
Sec. 20315. Notification to Congress of significant policy or 
                    administrative changes
  Not later than 15 days before making any significant policy or 
administrative change affecting the operation of the general business 
loan program, the Administrator shall notify the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives of the change.
Sec. 20316. Pilot programs
  (a) Definition of Pilot Program.--In this section, the term ``pilot 
program'' means a lending program initiative, project, innovation, or 
other activity not specifically authorized by law.
  (b) Limitation.--Not more than 10 percent of the number of loans 
guaranteed in any fiscal year under the general business loan program 
may be awarded as part of a pilot program commenced on or after October 
1, 1996.
  (c) Low Documentation Loan Program.--
          (1) In general.--The Administrator may carry out the low 
        documentation loan program for loans of $100,000 or less only 
        through lenders with significant experience in making small 
        business loans.
          (2) Regulations.--The Administrator shall promulgate 
        regulations defining the experience necessary for participation 
        as a lender in the low documentation loan program.
Sec. 20317. Calculation of subsidy rate
  All fees, interest, and profits received and retained by the 
Administrator under the general business loan program shall be included 
in the calculations made by the Director of the Office of Management 
and Budget to offset the cost (as defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administrator of 
purchasing and guaranteeing loans under this subtitle.
Sec. 20318. Leasing
  In addition to such other lease arrangements as the Administrator may 
authorize, a borrower may permanently lease to one or more tenants not 
more than 20 percent of any property constructed with the proceeds of a 
loan guaranteed under the general business loan program if the borrower 
permanently occupies and uses not less than 60 percent of the total 
business space in the property.
Sec. 20319. Real estate appraisals
  With respect to a loan under the general business loan program that 
is secured by commercial real property, an appraisal of the property by 
a State licensed or certified appraiser--
          (1) shall be required by the Administrator in connection with 
        any such loan for more than $250,000; or
          (2) may be required by the Administrator or the lender in 
        connection with any such loan for $250,000 or less, if an 
        appraisal is necessary for appropriate evaluation of 
        creditworthiness.
Sec. 20320. Express loan program
  (a) Restriction to Express Lender.--The authority to make an express 
loan shall be limited to lenders that the Administrator considers 
qualified to make express loans.
  (b) Effect of Designation.--Designation as an express lender for 
purposes of making an express loan does not preclude the lender from 
taking any other action authorized by the Administrator for that lender 
under the general business loan program.
  (c) Retention of Designation of Express Lender.--An express lender 
shall retain that designation unless--
          (1) the Administrator determines that the express lender has 
        violated the law (including regulations); or
          (2) the Administrator modifies the requirements to be an 
        express lender and the lender no longer satisfies those 
        requirements.
  (d) Maximum Loan Amount.--The maximum loan amount under the express 
loan program is $350,000.
  (e) Option To Participate.--Except as otherwise provided in this 
section, the Administrator shall take no regulatory, policy, or 
administrative action, without regard to whether the action requires 
notification under section 20315 of this title, that has the effect of 
requiring a lender to make an express loan.
  (f) Renewable Energy and Energy Efficiency.--The Administrator may 
make a loan under the express loan program for the purpose of--
          (1) purchasing a renewable energy system; or
          (2) carrying out an energy efficiency project for a small 
        business concern.
Sec. 20321. Loan application preparation and loan servicing by 
                    qualified development companies
  Notwithstanding any other provision of law, a qualified development 
company (as defined in section 33101 of this title) may--
          (1) prepare applications for deferred participation loans 
        under the general business loan program; and
          (2) service loans under the general business loan program and 
        charge a reasonable fee for servicing the loans.
Sec. 20322. Increased veteran/reservist participation program
  (a) Definitions.--In this section:
          (1) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
          (2) Pilot program.--The term ``pilot program'' means the 
        pilot program established under subsection (b).
          (3) Veteran/reservist participation loan.--The term 
        ``veteran/reservist participation loan'' means a loan made 
        under the general business loan program to a small business 
        concern owned and controlled by veterans or by reservists.
  (b) Establishment.--The Administrator shall establish and carry out a 
pilot program under which the Administrator shall reduce the fees for 
veteran/reservist participation loans.
  (c) Duration.--The pilot program shall terminate at the end of the 
second full fiscal year after the date on which the Administrator 
establishes the pilot program.
  (d) Maximum participation.--A veteran/reservist participation loan 
shall include the maximum participation levels by the Administrator 
permitted for loans made under the general business loan program.
  (e) Fees.--
          (1) In general.--The fee on a veteran/reservist participation 
        loan shall be equal to 50 percent of the fee otherwise 
        applicable to that loan under section 20311 of this title.
          (2) Waiver.--The Administrator may waive paragraph (1) for a 
        fiscal year if--
                  (A) for the fiscal year before that fiscal year, the 
                annual estimated rate of default of veteran/reservist 
                participation loans exceeds that of loans made under 
                the general business loan program that are not veteran/
                reservist participation loans;
                  (B) the cost to the Administrator of making loans 
                under the general business loan program is greater than 
                zero and the cost is directly attributable to the cost 
                of making veteran/reservist participation loans; and
                  (C) no additional source of revenue authority is 
                available to reduce the cost of making loans under the 
                general business loan program to zero.
          (3) Effect of waiver.--If the Administrator waives the 
        reduction of fees under paragraph (2), the Administrator--
                  (A) shall not assess or collect fees in an amount 
                greater than necessary to ensure that the cost of the 
                general business loan program is not greater than zero; 
                and
                  (B) shall reinstate the fee reductions under 
                paragraph (1) when the conditions in paragraph (2) no 
                longer apply.
          (4) No increase of fees.--The Administrator shall not 
        increase the fees under 20311 of this title on loans made under 
        the general business loan program that are not veteran/
        reservist participation loans as a direct result of the pilot 
        program.
  (f) GAO Report.--
          (1) In general.--Not later than one year after the date on 
        which the pilot program terminates, the Comptroller General 
        shall submit to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a report on the pilot program.
          (2) Contents.--The report under paragraph (1) shall include--
                  (A) the number of veteran/reservist participation 
                loans for which fees were reduced under the pilot 
                program;
                  (B) a description of the impact of the pilot program 
                on the general business loan program;
                  (C) an evaluation of the efficacy and potential fraud 
                and abuse of the pilot program; and
                  (D) recommendations for improving the pilot program.

                   CHAPTER 205--SPECIAL PURPOSE LOANS

Sec.
20501.  Applicability of chapter 203.
20502.  Residential or commercial construction or rehabilitation for 
          sale.
20503.  The disabled.
20504.  Unemployed or low-income individuals.
20505.  Energy measures.
20506.  Pollution control facilities.
20507.  Certified development companies.
20508.  Export working capital program.
20509.  Qualified employee trusts.
20510.  International trade.
20511.  Business development.
20512.  Closure of defense installations; termination of defense 
          programs; veterans and certain other individuals associated 
          with defense.
20513.  Loans for energy efficient technologies.
Sec. 20501. Applicability of chapter 203
  The provisions of chapter 203 apply to this chapter except to the 
extent that any such provision is inconsistent with a provision of this 
chapter.
Sec. 20502. Residential or commercial construction or rehabilitation 
                    for sale
  (a) In General.--The Administrator may provide a loan under the 
general business loan program to finance residential or commercial 
construction or rehabilitation for sale.
  (b) Limitation.--A loan under subsection (a) shall not be used 
primarily for the acquisition of land.
Sec. 20503. The disabled
  The Administrator may provide a guaranteed loan under the general 
business loan program to assist a public or private organization for 
the disabled or a disabled individual (including a service-disabled 
veteran) in establishing, acquiring, or operating a small business 
concern.
Sec. 20504. Unemployed or low-income individuals
  (a) Implementation.--The general business loan program shall be used 
to--
          (1) assist in the establishment, preservation, and 
        strengthening of small business concerns and improve the 
        managerial skills employed in small business concerns, with 
        special attention to, and particular emphasis on the 
        preservation or establishment of, small business concerns that 
        are--
                  (A) located in urban or rural areas with high 
                proportions of unemployed or low-income individuals; or
                  (B) owned by low-income individuals; and
          (2) mobilize for those objectives private as well as public 
        managerial skills and resources.
  (b) Loan Authority.--The Administrator may provide a loan under the 
general business loan program to a small business concern or to a 
qualified person seeking to establish a small business concern if the 
Administrator determines that providing the loan will further the 
purposes stated in subsection (a).
Sec. 20505. Energy measures
  (a) In General.--The Administrator may provide a loan under the 
general business loan program to provide assistance (including startup 
assistance) to a small business concern to enable the small business 
concern to design architecturally, or engineer, manufacture, 
distribute, market, install, or service, an energy measure.
  (b) Limitation.--The proceeds of a loan under subsection (a) shall 
not be used primarily for research and development.
Sec. 20506. Pollution control facilities
  (a) In General.--The Administrator may provide a deferred 
participation loan under the general business loan program to finance 
the planning, design, or installation of a pollution control facility 
for the purposes specified in section 404 of the Small Business 
Investment Act of 1958 (15 U.S.C. 694-1), as in effect before the date 
of repeal of that section.
  (b) Limit on Amount.--A loan under subsection (a) may not result in a 
total amount outstanding and committed (on a deferred basis) to a 
borrower under the general business loan program and microloan program 
of more than $1,000,000.
Sec. 20507. Certified development companies
  The Administrator may provide financing under the general business 
loan program to certified development companies for the purposes of, 
and subject to the restrictions in, the certified development company 
program.
Sec. 20508. Export working capital program
  (a) In General.--The Administrator may provide extensions of credit, 
standby letters of credit, revolving lines of credit for export 
purposes, and other financing to enable small business concerns 
(including small business export trading companies and small business 
export management companies) to develop foreign markets.
  (b) Rate of Interest.--A bank or participating lending institution 
may establish such a rate of interest on a financing under subsection 
(a) as is legal and reasonable.
  (c) Considerations.--When considering a loan or guarantee 
application, the Administrator shall give weight to export-related 
benefits, including the opening of new markets for United States goods 
and services abroad and encouraging the involvement of small business 
concerns (including agricultural concerns) in the export market.
  (d) Marketing of Export Financing Program.--The Administrator shall 
aggressively market the export working capital program to small 
business concerns.
Sec. 20509. Qualified employee trusts
  (a) Definition of Qualified Employee Trust.--In this section:
          (1) Trust maintained by small business concern.--The term 
        ``qualified employee trust'', with respect to a small business 
        concern, means a trust--
                  (A) that forms part of an employee stock ownership 
                plan (as defined in section 4975(e) of the Internal 
                Revenue Code of 1986 (26 U.S.C. 4975(e)) that--
                          (i) is maintained by the small business 
                        concern; and
                          (ii) provides that each participant in the 
                        plan is entitled to direct the plan as to the 
                        manner in which voting rights under qualifying 
                        employer securities (as defined in section 
                        4975(e) of the Internal Revenue Code of 1986 
                        (26 U.S.C. 4975(e)) that are allocated to the 
                        account of the participant are to be exercised 
                        with respect to a corporate matter that (by law 
                        or charter) must be decided by a majority vote 
                        of outstanding common shares voted; and
                  (B) the trustee of which enters into an agreement 
                with the Administrator that is binding on the trust and 
                on the small business concern and provides that--
                          (i) a loan guaranteed under the general 
                        business loan program shall be used solely for 
                        the purchase of qualifying employer securities 
                        of the small business concern;
                          (ii) all funds acquired by the small business 
                        concern in the purchase shall be used by the 
                        small business concern solely for the purposes 
                        for which the loan was guaranteed;
                          (iii) the small business concern will provide 
                        such funds as are necessary for the timely 
                        repayment of the loan, and the property of the 
                        small business concern shall be available as 
                        security for repayment of the loan; and
                          (iv) all qualifying employer securities 
                        acquired by the trust in the purchase shall be 
                        allocated to the accounts of participants in 
                        the plan who are entitled to share in the 
                        allocation, and each participant has a 
                        nonforfeitable right, not later than the date 
                        on which the loan is repaid, to all such 
                        qualifying employer securities that are 
                        allocated to the participant's account.
          (2) Trust maintained by employee organization.--A trust 
        maintained by an employee organization may be treated as a 
        qualified employee trust with respect to a small business 
        concern in accordance with regulations prescribed under 
        subsection (f).
  (b) In General.--The Administrator may guarantee a loan under the 
general business loan program to a qualified employee trust with 
respect to a small business concern, on the same basis as if the 
qualified employee trust were the same entity as the small business 
concern, for the purpose of purchasing stock of the small business 
concern under a plan approved by the Administrator that, when carried 
out, results in the qualified employee trust owning at least 51 percent 
of the stock of the small business concern.
  (c) Plan.--
          (1) Submission with application.--A plan requiring approval 
        under subsection (b) shall be submitted to the Administrator by 
        the trustee of the qualified employee trust with the 
        application for a loan guarantee.
          (2) Agreement.--The plan shall include an agreement with the 
        Administrator that is binding on the qualified employee trust 
        and on the small business concern and provides that--
                  (A) not later than the date on which the loan 
                guaranteed under subsection (b) is repaid (or as soon 
                after that date as is consistent with the requirements 
                of section 401(a) of the Internal Revenue Code of 1986 
                (26 U.S.C. 401(a))), at least 51 percent of the total 
                stock of the small business concern shall be allocated 
                to the accounts of at least 51 percent of the employees 
                of the small business concern who are entitled to share 
                in the allocation;
                  (B) there will be periodic reviews of the role in the 
                management of the small business concern of employees 
                to whose accounts stock is allocated; and
                  (C) there will be adequate management to ensure 
                management expertise and continuity.
  (d) Criteria.--
          (1) In general.--Except as provided in paragraph (2), in 
        determining whether to guarantee a loan under this section, the 
        Administrator shall not use the individual business experience 
        or personal assets of employee-owners as criteria.
          (2) Exception.--To the that extent that any employee-owner 
        assumes managerial responsibilities, the Administrator may 
        consider the business expertise of that employee-owner.
  (e) Treatment of Corporation as Small Business Concern.--For purposes 
of this section, a corporation that is controlled by any other person 
shall be treated as a small business concern if the corporation would, 
after the plan under subsection (c) is carried out, be treated as a 
small business concern.
  (f) Regulations Relating To Treatment of a Trust Maintained by an 
Employee Organization.--The Administrator may prescribe regulations 
under which a trust maintained by an employee organization may be 
treated as a qualified employee trust with respect to a small business 
concern if--
          (1) the employee organization represents at least 51 percent 
        of the employees of the small business concern;
          (2) the small business concern maintains a plan that--
                  (A) is an employee benefit plan that is designed to 
                invest primarily in qualifying employer securities (as 
                defined in section 4975(e) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 4975(e)));
                  (B) provides that each participant in the plan is 
                entitled to direct the plan as to the manner in which 
                voting rights under qualifying employer securities that 
                are allocated to the account of the participant are to 
                be exercised with respect to a corporate matter that 
                (by law or charter) must be decided by a majority vote 
                of the outstanding common shares voted;
                  (C) provides that each participant who is entitled to 
                distribution from the plan has a right, in the case of 
                qualifying employer securities that are not readily 
                tradable on an established market, to require that the 
                small business concern repurchase the securities under 
                a fair valuation formula; and
                  (D) meets such other requirements (similar to 
                requirements applicable to employee stock ownership 
                plans (as defined in section 4975(e) of the Internal 
                Revenue Code of 1986 (26 U.S.C. 4975(e))) as the 
                Administrator may prescribe; and
          (3) in the case of a loan guarantee under the general 
        business loan program, the employee organization enters into an 
        agreement with the Administrator that is described in 
        subsection (a)(1)(B).
  (g) Reports.--The Administrator shall--
          (1) compile a separate list of applications for assistance 
        under this section, indicating which applications are accepted 
        and which denied; and
          (2) periodically submit to Congress a report on the status of 
        employee-owned firms assisted by the Administrator.
Sec. 20510. International trade
  (a) In General.--If the Administrator determines that a loan 
guaranteed under the general business loan program will allow an 
eligible small business concern that is engaged in or adversely 
affected by international trade to improve its competitive position, 
the Administrator may provide a loan guarantee to assist the small 
business concern in--
          (1) the financing of the acquisition, construction, 
        renovation, modernization, improvement, or expansion of 
        productive facilities or equipment to be used in the United 
        States in the production of a good or service involved in 
        international trade; or
          (2) the refinancing of existing indebtedness that is not 
        structured with reasonable terms and conditions.
  (b) Security.--A loan under this section shall be secured by a first 
lien position or first mortgage on the property or equipment financed 
by the loan or on other assets of the small business concern.
  (c) Engagement in International Trade.--For purposes of this section, 
a small business concern shall be considered to be engaged in 
international trade if, as determined by the Administrator, the small 
business concern is in a position to expand existing export markets or 
develop new export markets.
  (d) Adverse Effect of International Trade.--For purposes of this 
section, a small business concern shall be considered to be adversely 
affected by international trade if, as determined by the Administrator, 
the small business concern--
          (1) is confronting increased competition with foreign firms 
        in the relevant market; and
          (2) is injured by such competition.
  (e) Findings by Certain Federal Agencies.--For purposes of subsection 
(d)(2), the Administrator shall accept any finding of injury by the 
International Trade Commission or any finding of injury by the 
Secretary of Commerce under chapter 3 of title II of the Trade Act of 
1974 (19 U.S.C. 2341 et seq.).
Sec. 20511. Business development
  (a) In General.--The Administrator may make a loan under the general 
business loan program to a small business concern that is eligible for 
assistance under the business development program.
  (b) Requirements.--Assistance may be provided under subsection (a) if 
the Administrator determines that--
          (1) the type and amount of assistance requested by a small 
        business concern is not otherwise available on reasonable terms 
        from other sources;
          (2) with the assistance, the small business concern has a 
        reasonable prospect for operating soundly and profitably within 
        a reasonable period of time;
          (3) the proceeds of the assistance will be used within a 
        reasonable time--
                  (A) for plant construction, conversion, or expansion, 
                including the acquisition of equipment, facilities, 
                machinery, supplies, or material; or
                  (B) to supply the small business concern with working 
                capital to be used in the manufacture of articles, 
                equipment, supplies, or material for defense or 
                civilian production or as may be necessary to ensure a 
                well-balanced national economy; and
          (4) the assistance is of such sound value as reasonably to 
        ensure that the terms under which the assistance is provided 
        will not be breached by the small business concern.
  (c) Limit on Amount.--
          (1) In general.--No loan shall be made under this section if 
        the total amount outstanding and committed (on a deferred 
        basis, through a participation on an immediate basis, or 
        directly) to the borrower under the general business loan 
        program would exceed $750,000.
          (2) Amount of participation.--Subject to paragraph (1), in an 
        agreement to participate in a loan on a deferred (guaranteed) 
        basis, participation by the Administrator shall be not less 
        than 85 percent of the balance of the financing outstanding at 
        the time of disbursement.
  (d) Rate of Interest.--The rate of interest on a financing made on a 
deferred (guaranteed) basis shall be an amount that is legal and 
reasonable.
  (e) Limitations.--
          (1) In general.--A financing under this section shall be 
        subject to the limitations stated in this subsection.
          (2) Immediate financing.--No immediate participation may be 
        purchased unless it is shown that a deferred participation is 
        not available.
          (3) Direct financing.--No direct financing may be made unless 
        it is shown that a participation is unavailable.
  (f) Secured Debt Instrument.--A direct loan or the Administrator's 
share of an immediate participation loan under this section shall be 
any secured debt instrument--
          (1) that is subordinated by its terms to all other borrowings 
        of the issuer;
          (2) the rate of interest on which does not exceed the current 
        average market yield on outstanding marketable obligations of 
        the United States with remaining periods to maturity comparable 
        to the average maturities of such loans and adjusted to the 
        nearest 0.125 percent;
          (3) the term of which is not more than 25 years;
          (4) the principal on which is amortized at such a rate as the 
        Administrator considers appropriate; and
          (5) the interest on which is payable not less often than 
        annually.
Sec. 20512. Closure of defense installations; termination of defense 
                    programs; veterans and certain other individuals 
                    associated with defense
  (a) Definition of Qualified Individual.--In this section, the term 
``qualified individual'' means--
          (1) a member of the Armed Forces honorably discharged from 
        active duty involuntarily or under a program providing bonuses 
        or other inducements to encourage voluntary separation or early 
        retirement;
          (2) a civilian employee of the Department of Defense 
        involuntarily separated from Federal service or retired under a 
        program offering inducements to encourage early retirement; or
          (3) an employee of a prime contractor, subcontractor, or 
        supplier at any tier of a Department of Defense program whose 
        employment is involuntarily terminated (or voluntarily 
        terminated under a program offering inducements to encourage 
        voluntary separation or early retirement) due to the 
        termination or substantial reduction of a Department of Defense 
        program.
  (b) Loans.--The Administrator may make a loan on a guaranteed basis 
under the general business loan program--
          (1) to a small business concern that has been (or can 
        reasonably be expected to be) detrimentally affected by--
                  (A) the closure or substantial reduction of a 
                Department of Defense installation; or
                  (B) the termination or substantial reduction of a 
                Department of Defense program on which the small 
                business concern was a prime contractor or 
                subcontractor or supplier at any tier; or
          (2) to a qualified individual or a veteran seeking to 
        establish (or acquire) and operate a small business concern.
  (c) Resolution of Doubt.--Recognizing that greater risk may be 
associated with a loan to a small business concern described in 
subsection (b)(1), in making a determination regarding the sound value 
of the proposed loan under section 20304, any reasonable doubt 
concerning the small business concern's proposed business plan for 
transition to nondefense-related markets shall be resolved in favor of 
the loan applicant.
  (d) Amounts of Loans.--Loans under this section shall be authorized 
in such amounts as are provided in advance in appropriation Acts for 
the purposes of loans under this section.
  (e) Job Creation and Community Benefit.--In providing assistance 
under this section, the Administrator shall develop procedures to 
ensure, to the maximum extent practicable, that the assistance is used 
for projects that--
          (1) have the greatest potential for--
                  (A) creating new jobs for individuals whose 
                employment is involuntarily terminated due to 
                reductions in Federal defense expenditures; or
                  (B) preventing the loss of jobs by employees of small 
                business concerns described in subsection (b)(1); and
          (2) have substantial potential for stimulating new economic 
        activity in communities most affected by reductions in Federal 
        defense expenditures.
Sec. 20513. Loans for energy efficient technologies
  (a) Definitions.--In this section:
          (1) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
          (2) Covered energy efficiency loan.--The term ``covered 
        energy efficiency loan'' means a loan--
                  (A) made under the general business loan program; and
                  (B) the proceeds of which are used to--
                          (i) purchase energy efficient designs, 
                        equipment, or fixtures; or
                          (ii) reduce the energy consumption of the 
                        borrower by 10 percent or more.
          (3) Pilot program.--The term ``pilot program'' means the 
        pilot program established under subsection (b).
  (b) Establishment.--The Administrator shall establish and carry out a 
pilot program under which the Administrator shall reduce the fees for 
covered energy efficiency loans.
  (c) Duration.--The pilot program shall terminate at the end of the 
second full fiscal year after the date on which the Administrator 
establishes the pilot program.
  (d) Maximum participation.--A covered energy efficiency loan shall 
include the maximum participation levels by the Administrator permitted 
for loans made under this division.
  (e) Fees.--
          (1) In general.--The fee on a covered energy efficiency loan 
        shall be equal to 50 percent of the fee otherwise applicable to 
        that loan under 20311 of this title.
          (2) Waiver.--The Administrator may waive paragraph (1) for a 
        fiscal year if--
                  (A) for the fiscal year before that fiscal year, the 
                annual rate of default of covered energy efficiency 
                loans exceeds that of loans made under this division 
                that are not covered energy efficiency loans;
                  (B) the cost to the Administrator of making loans 
                under this division--
                          (i) is greater than zero; and
                          (ii) is directly attributable to the cost of 
                        making covered energy efficiency loans; and
                  (C) no additional sources of revenue authority are 
                available to reduce the cost of making loans under this 
                division to zero.
          (3) Effect of waiver.--If the Administrator waives the 
        reduction of fees under paragraph (2), the Administrator--
                  (A) shall not assess or collect fees in an amount 
                greater than necessary to ensure that the cost of the 
                program under this division is not greater than zero; 
                and
                  (B) shall reinstate the fee reductions under 
                paragraph (1) when the conditions in paragraph (2) no 
                longer apply.
          (4) No increase of fees.--The Administrator shall not 
        increase the fees under section 20311 of this title on loans 
        made under this division that are not covered energy efficiency 
        loans as a direct result of the pilot program.
  (f) GAO Report.--
          (1) In general.--Not later than one year after the date on 
        which the pilot program terminates, the Comptroller General 
        shall submit to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a report on the pilot program.
          (2) Contents.--The report under paragraph (1) shall include--
                  (A) the number of covered energy efficiency loans for 
                which fees were reduced under the pilot program;
                  (B) a description of the energy efficiency savings 
                with the pilot program;
                  (C) a description of the impact of the pilot program 
                on the program under this division;
                  (D) an evaluation of the efficacy and potential fraud 
                and abuse of the pilot program; and
                  (E) recommendations for improving the pilot program.

    CHAPTER 207--SMALL BUSINESS LENDING COMPANIES AND NON-FEDERALLY 
                           REGULATED LENDERS

Sec.
20701.  Authority to regulate.
20702.  Capital directive.
20703.  Civil action.
20704.  Revocation or suspension of loan authority; cease and desist 
          orders.
20705.  Removal or suspension of management officials.
20706.  Appointment of receiver.
20707.  Taking of possession of assets.
20708.  Reports.
Sec. 20701. Authority to regulate
  The Administrator--
          (1) may supervise the safety and soundness of small business 
        lending companies and non-federally regulated lenders;
          (2) in accordance with the purposes of this subtitle, may--
                  (A) regulate small business lending companies;
                  (B) set capital standards for small business lending 
                companies;
                  (C) examine small business lending companies; and
                  (D) enforce laws governing small business lending 
                companies; and
          (3) in accordance with the purposes of this subtitle, may--
                  (A) regulate non-federally regulated lenders;
                  (B) examine non-federally regulated lenders; and
                  (C) enforce laws governing the lending activities of 
                non-federally regulated lenders under the general 
                business loan program.
Sec. 20702. Capital directive
  (a) In General.--If the Administrator determines that a small 
business lending company is being operated in an imprudent manner, the 
Administrator may, in addition to any other action authorized by law, 
issue a directive to the small business lending company to increase 
capital to such level as the Administrator determines will result in 
the safe and sound operation of the small business lending company.
  (b) Limit on Delegability.--The Administrator may not delegate the 
authority granted under subsection (a) except to an Associate Deputy 
Administrator.
  (c) Regulations.--The Administrator shall issue regulations outlining 
the conditions under which the Administrator may determine the level of 
capital under subsection (a).
Sec. 20703. Civil action
  If a small business lending company violates this subtitle or 
subtitle I, the Administrator may bring a civil action in United States 
district court to terminate the rights, privileges, and franchises of 
the small business lending company under this subtitle or subtitle I.
Sec. 20704. Revocation or suspension of loan authority; cease and 
                    desist orders
  (a) Revocation or Suspension of Loan Authority.--
          (1) In general.--The Administrator may revoke or suspend the 
        authority of a small business lending company or a non-
        federally regulated lender to make, service, or liquidate 
        business loans under the general business loan program--
                  (A) for false statements knowingly made in any 
                written submission required under this subtitle;
                  (B) for omission of a material fact from any written 
                submission required under this subtitle;
                  (C) for willful or repeated violation of this 
                subtitle;
                  (D) for willful or repeated violation of any 
                condition imposed by the Administrator with respect to 
                any application, request, or agreement under this 
                subtitle; or
                  (E) for violation of any cease and desist order of 
                the Administrator under this chapter.
          (2) Limitation on delegability.--The Administrator may 
        delegate power to revoke or suspend authority under paragraph 
        (1) only to the Deputy Administrator and only if the 
        Administrator is unavailable to take the action.
          (3) Procedure.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Administrator may revoke or suspend authority 
                under paragraph (1) only after a hearing under 
                subsection (c).
                  (B) Suspension before hearing.--
                          (i) In general.--The Administrator, after 
                        finding extraordinary circumstances and in 
                        order to protect the financial or legal 
                        position of the United States, may issue a 
                        suspension order without conducting a hearing 
                        under subsection (c).
                          (ii) Hearing.--If the Administrator issues a 
                        suspension under clause (i), the Administrator 
                        shall, within 2 business days after issuance of 
                        the suspension, follow the procedure specified 
                        in subsection (c).
                  (C) Action by the administrator after hearing by 
                administrative law judge.--
                          (i) In general.--A revocation or suspension 
                        under paragraph (1) shall be made by the 
                        Administrator, except that the Administrator 
                        shall delegate to an administrative law judge 
                        appointed under section 3105 of title 5 the 
                        authority to conduct any hearing required under 
                        subsection (c).
                          (ii) Basis of decision.--The Administrator 
                        shall base the decision to revoke or suspend on 
                        the record of the hearing.
          (4) Effective period of suspension.--A suspension under 
        paragraph (1) shall remain in effect until the Administrator 
        makes a decision under paragraph (3)(C) to permanently revoke 
        the authority of the small business lending company or non-
        federally regulated lender, suspend the authority for a time 
        certain, or terminate the suspension.
          (5) Notification of borrowers.--On revocation of the 
        authority of a small business lending company or non-federally 
        regulated lender under paragraph (1), the small business 
        lending company or non-federally regulated lender shall, and 
        the Administrator may, notify borrowers of the revocation and 
        of the appointment of a new entity to service the borrowers' 
        loans.
  (b) Cease and Desist Orders.--
          (1) In general.--If a small business lending company, a non-
        federally regulated lender, or other person violates this 
        subtitle or subtitle I or is engaging or is about to engage in 
        any act or practice that constitutes or will constitute a 
        violation of this subtitle or subtitle I, the Administrator, 
        after an opportunity for hearing under subsection (c), may 
        order that--
                  (A) the small business lending company, non-federally 
                regulated lender, or other person cease and desist from 
                engaging in the act or practice or in any failure to 
                act;
                  (B) the small business lending company, non-federally 
                regulated lender, or other person take such action or 
                to refrain from such action as the Administrator 
                considers necessary to ensure compliance with this 
                subtitle; or
                  (C) the authority of the small business lending 
                company or non-federally regulated lender to lend be 
                suspended under subsection (a).
          (2) Limitation on delegability.--The Administrator may 
        delegate the authority under paragraph (1) only to the Deputy 
        Administrator and only if the Administrator is unavailable to 
        take the action.
          (3) Order before hearing.--
                  (A) In general.--The Administrator, after finding 
                extraordinary circumstances and in order to protect the 
                financial or legal position of the United States, may 
                issue a cease and desist order without conducting a 
                hearing under subsection (c).
                  (B) Hearing.--If the Administrator issues a cease and 
                desist order under subparagraph (A), the Administrator 
                shall within 2 business days follow the procedures 
                specified in subsection (c).
  (c) Procedure.--
          (1) Order to show cause.--
                  (A) In general.--Before revoking or suspending 
                authority under subsection (a) or issuing a cease and 
                desist order under subsection (b), the Administrator 
                shall serve an order to show cause on the small 
                business lending company, non-federally regulated 
                lender, or other person why an order revoking or 
                suspending the authority or a cease and desist order 
                should not be issued.
                  (B) Contents.--An order under subparagraph (A) 
                shall--
                          (i) contain a statement of the matters of 
                        fact and law asserted by the Administrator and 
                        the legal authority and jurisdiction under 
                        which a hearing is to be held; and
                          (ii) state that a hearing will be held before 
                        an administrative law judge at a time and place 
                        stated in the order.
          (2) Hearing.--A hearing shall be conducted under sections 
        554, 556, and 557 of title 5.
          (3) Order of revocation or suspension; cease and desist 
        order.--
                  (A) In general.--If, after hearing or a waiver of 
                hearing, the Administrator determines that an order 
                revoking or suspending the authority or a cease and 
                desist order should be issued, the Administrator shall 
                promptly issue the order.
                  (B) Contents.--An order under subparagraph (A) 
                shall--
                          (i) include a statement of the findings of 
                        the Administrator and the grounds and reasons 
                        for the findings; and
                          (ii) specify the effective date of the order.
                  (C) Service.--The Administrator shall cause an order 
                under subparagraph (A) to be served on the small 
                business lending company, non-federally regulated 
                lender, or other person that is subject to the order.
          (4) Witnesses.--A witness summoned before the Administrator 
        shall be paid by the party at whose instance the witness is 
        called the same fees and mileage that are paid witnesses in the 
        courts of the United States.
  (d) Final Agency Action.--An order under subsection (c)(3) is final 
agency action for purposes of chapter 7 of title 5.
  (e) Judicial Review.--An adversely affected party shall have 20 days 
from the date of issuance of an order under subsection (c)(3) to seek 
judicial review in United States district court.
Sec. 20705. Removal or suspension of management officials
  (a) Definition of Management Official.--In this section, the term 
``management official'' means an officer, director, general partner, 
manager, employee, agent, or other participant in the management of the 
affairs of a small business lending company's or non-federally 
regulated lender's activities under the general business loan program.
  (b) Removal of Management Official.--
          (1) Notice.--The Administrator may serve on a management 
        official a written notice of the Administrator's intention to 
        remove that management official if, in the opinion of the 
        Administrator, the management official--
                  (A) willfully and knowingly commits a substantial 
                violation of--
                          (i) this subtitle or subtitle I (including 
                        any regulation issued under this subtitle or 
                        subtitle I);
                          (ii) a final cease and desist order under 
                        this subtitle; or
                          (iii) any agreement under this subtitle by--
                                  (I) the management official; or
                                  (II) the small business lending 
                                company or non-federally regulated 
                                lender in which the management official 
                                is a participant; or
                  (B) willfully and knowingly commits a substantial 
                breach of a fiduciary duty of that participant as a 
                management official, if the violation or breach of 
                fiduciary duty is one involving personal dishonesty on 
                the part of the management official.
          (2) Contents.--A notice under paragraph (1) shall--
                  (A) contain a statement of the facts constituting 
                grounds for the notice; and
                  (B) state a time and place at which a hearing under 
                paragraph (3) will be held on the notice.
          (3) Hearing.--
                  (A) Timing.--A hearing under sections 554, 556, and 
                557 of title 5 shall be held not earlier than 30 nor 
                later than 60 days after the date of service of notice 
                of the hearing, unless an earlier or a later date is 
                set by the Administrator at the request of--
                          (i) the management official, for good cause; 
                        or
                          (ii) the Attorney General.
                  (B) Consent.--Unless the management official appears 
                at a hearing under this subsection in person or by an 
                authorized representative, the management official 
                shall be deemed to have consented to the issuance of an 
                order of removal under paragraph (1).
          (4) Order of removal.--
                  (A) In general.--In the event of consent under 
                paragraph (3)(B), or if on the record made at a hearing 
                under this section, the Administrator finds that any of 
                the grounds specified in the notice of removal has been 
                established, the Administrator may issue such orders of 
                removal from office as the Administrator considers 
                appropriate.
                  (B) Effectiveness.--An order under subparagraph (A) 
                shall--
                          (i) take effect 30 days after the date of 
                        service on the subject small business lending 
                        company or non-federally regulated lender and 
                        the management official concerned (except in 
                        the case of an order issued on consent as 
                        described in paragraph (3)(B), which shall 
                        become effective at the time specified in the 
                        order); and
                          (ii) remain effective and enforceable, except 
                        to such extent as the order is stayed, 
                        modified, terminated, or set aside by action of 
                        the Administrator or a court in accordance with 
                        this chapter.
  (c) Authority To Suspend or Prohibit Participation.--
          (1) In general.--To protect a small business lending company, 
        a non-federally regulated lender, or the interests of the 
        Administration or the United States, the Administrator may 
        suspend from office or prohibit from further participation in 
        any manner in the management or conduct of the affairs of a 
        small business lending company or non-federally regulated 
        lender a management official by written notice to that effect 
        served on the management official.
          (2) Prohibited activities.--A suspension or prohibition under 
        paragraph (1) may prohibit the management official from making, 
        servicing, reviewing, approving, or liquidating any loan under 
        the general business loan program.
          (3) Effectiveness.--A suspension or prohibition under 
        paragraph (1)--
                  (A) shall take effect on service of notice under 
                subsection (b); and
                  (B) unless stayed by a court in proceedings under 
                paragraph (4), shall remain in effect--
                          (i) pending the completion of the 
                        administrative proceedings pursuant to a notice 
                        of intention to remove served under subsection 
                        (b); and
                          (ii) until such time as the Administrator 
                        dismisses the charges specified in the notice, 
                        or, if an order of removal or prohibition is 
                        issued against the management official, until 
                        the effective date of any such order.
          (4) Judicial review of suspension prior to hearing.--Not 
        later than 10 days after a management official is suspended or 
        prohibited from participation under paragraph (1), the 
        management official may apply to a United States district court 
        for a stay of the suspension or prohibition pending the 
        completion of the administrative proceedings pursuant to a 
        notice of intent to remove served on the management official 
        under subsection (b).
  (d) Authority To Suspend on Criminal Charges.--
          (1) In general.--If a management official is charged in an 
        information, indictment, or complaint authorized by a United 
        States attorney, with a felony involving dishonesty or breach 
        of trust, the Administrator may, by written notice served on 
        the management official, suspend the management official from 
        office or prohibit the management official from further 
        participation in any manner in the management or conduct of the 
        affairs of the small business lending company or non-federally 
        regulated lender in which the management official is a 
        participant described in subsection (a).
          (2) Effectiveness.--A suspension or prohibition under 
        paragraph (1) shall remain in effect until the information, 
        indictment, or complaint is finally disposed of, or until 
        terminated by the Administrator or by order of a United States 
        district court.
          (3) Authority on conviction.--
                  (A) In general.--If a judgment of conviction with 
                respect to an offense described in paragraph (1) is 
                entered against a management official, at such time as 
                the judgment is not subject to further judicial review, 
                the Administrator may issue and serve on the management 
                official an order removing the management official, 
                effective on service of a copy of the order on the 
                small business lending company or non-federally 
                regulated lender in which the management official is a 
                participant described in subsection (a).
                  (B) Judgment not subject to further judicial 
                review.--For purposes of subparagraph (A), further 
                judicial review does not include the possibility of 
                review of a petition for a writ of habeas corpus.
          (4) Authority on dismissal or other disposition.--A finding 
        of not guilty or other disposition of charges described in 
        paragraph (1) shall not preclude the Administrator from 
        instituting proceedings under section 20704 of this title.
  (e) Notification to Small Business Lending Company or Non-federally 
Regulated Lender.--A copy of a notice required to be served on a 
management official under this chapter shall also be served on the 
small business lending company or non-federally regulated lender in 
which the management official is a participant described in subsection 
(a).
  (f) Decision.--After a hearing under this section, and not later than 
30 days after the Administrator notifies the parties that the case has 
been submitted for final decision, the Administrator shall--
          (1) render a decision in the matter (which shall include 
        findings of fact on which its decision is predicated); and
          (2) issue and cause to be served on each party to the 
        proceeding an order or orders consistent with this chapter.
  (g) Final Agency Action.--A decision under subsection (f) shall 
constitute final agency action for purposes of chapter 7 of title 5.
  (h) Judicial Review.--An adversely affected party shall have 20 days 
from the date of issuance of the order to seek judicial review in 
United States district court.
Sec. 20706. Appointment of receiver
  (a) In General.--In a civil action under this division, the court 
may--
          (1) take exclusive jurisdiction over a small business lending 
        company or non-federally regulated lender; and
          (2) appoint a receiver to hold and administer the assets of 
        the small business lending company or non-federally regulated 
        lender.
  (b) Appointment of Administrator.--On request of the Administrator, 
the court may appoint the Administrator as a receiver under subsection 
(a).
Sec. 20707. Taking of possession of assets
  (a) Taking of Possession of Loan Portfolio.--If a small business 
lending company or non-federally regulated lender is not in compliance 
with capital requirements or is insolvent, the Administrator may take 
possession of the portfolio of loans guaranteed by the Administrator 
and sell the loans to a third party by means of a receiver appointed 
under section 20706 of this title.
  (b) Taking of Possession of Servicing Activities.--If a small 
business lending company or non-federally regulated lender is not in 
compliance with capital requirements or is insolvent or otherwise 
operating in an unsafe and unsound condition, the Administrator may 
take possession of servicing activities of loans that are guaranteed by 
the Administrator and sell the servicing rights to a third party by 
means of a receiver appointed under section 20706 of this title.
Sec. 20708. Reports
  (a) Civil Penalty for Failure To File.--
          (1) In general.--A small business lending company or non-
        federally regulated lender that violates a regulation or 
        written directive issued by the Administrator regarding the 
        filing of a regular or special report shall pay to the United 
        States a civil penalty of not more than $5,000 for each day of 
        the continuance of the failure to file the report, unless it is 
        shown that the violation is due to reasonable cause and not due 
        to willful neglect.
          (2) Enforcement.--A civil penalty under paragraph (1) may be 
        enforced in a civil action brought by the Administrator.
          (3) Nonapplicability to certain small business lending 
        companies.--Paragraph (1) does not apply to an affiliate of a 
        small business lending company that procures at least 10 
        percent of its annual purchasing requirements from small 
        manufacturers.
  (b) Exemption.--
          (1) In general.--If the Administrator determines that 
        granting an exemption would not be inconsistent with the public 
        interest or the protection of the Administration, the 
        Administrator may exempt a small business lending company or 
        non-federally regulated lender from subsection (a)--
                  (A) in whole or in part; and
                  (B) on such terms and conditions and for such period 
                of time as the Administrator considers necessary and 
                appropriate.
          (2) Procedure.--The Administrator may grant an exemption 
        under paragraph (1)--
                  (A) by regulation prescribed after an opportunity for 
                notice and comment; or
                  (B) on application of an interested party, at any 
                time previous to a violation described in subsection 
                (a), by order, after notice and opportunity for hearing 
                under sections 554, 556, and 557 of title 5.
  (c) Alternative Requirements.--The Administrator may for purposes of 
this section make any alternative requirement that the Administrator 
considers to be appropriate to a situation.

                     DIVISION C--MICROLOAN PROGRAM

                     CHAPTER 211--MICROLOAN PROGRAM

Sec.
21101.  Definitions.
21102.  Establishment of microloan program.
21103.  Purposes of microloan program.
21104.  Eligibility for participation.
21105.  Loans to intermediaries; loans by intermediaries to small 
          business concerns.
21106.  Marketing, management, and technical assistance grants to 
          intermediaries.
21107.  Private sector borrowing technical assistance grants.
21108.  Grants for management, marketing, technical assistance, and 
          related services.
Sec. 21101. Definitions
  In this chapter:
          (1) Intermediary.--The term ``intermediary'' means--
                  (A) a private, nonprofit entity;
                  (B) a private, nonprofit community development 
                corporation;
                  (C) a consortium of private, nonprofit organizations 
                or nonprofit community development corporations;
                  (D) a quasi-governmental economic development entity 
                (such as a planning and development district), other 
                than a State, county, or municipal government (or any 
                agency of a State, county, or municipal government), in 
                a geographic area--
                          (i) in which no application is received from 
                        an eligible nonprofit organization; or
                          (ii) with respect to which the Administrator 
                        determines that the needs of the geographic 
                        area are not adequately served by an existing, 
                        eligible nonprofit organization that has 
                        submitted an application; or
                  (E) an agency of or nonprofit entity established by a 
                Native American Tribal Government;
        that seeks to borrow or has borrowed funds from the 
        Administrator to make microloans to small business concerns 
        under the microloan program.
          (2) Microloan.--The term ``microloan'' means a short-term, 
        fixed rate loan of not more than $35,000, made by an 
        intermediary to a startup, newly established, or growing small 
        business concern.
          (3) Rural area.--The term ``rural area'' means a political 
        subdivision or unincorporated area--
                  (A) in a nonmetropolitan county (as defined by the 
                Secretary of Agriculture) or its equivalent; or
                  (B) in a metropolitan county or its equivalent that 
                has a resident population of less than 20,000 if the 
                Administrator determines the political subdivision or 
                unincorporated area to be rural.
          (4) State.--The term ``State'' includes the District of 
        Columbia, Puerto Rico, the United States Virgin Islands, Guam, 
        and American Samoa.
Sec. 21102. Establishment of microloan program
  There is established within the Administration a microloan program.
Sec. 21103. Purposes of microloan program
  The purposes of the microloan program are--
          (1) to assist women, low-income, veteran, and minority 
        entrepreneurs and business owners and other such individuals 
        possessing the capability to operate successful business 
        concerns;
          (2) to assist small business concerns in areas suffering from 
        a lack of credit due to economic downturns;
          (3) to make loans to eligible intermediaries to enable the 
        intermediaries to provide small-scale loans, particularly loans 
        in amounts averaging not more than $10,000, to startup, newly 
        established, or growing small business concerns for working 
        capital or the acquisition of materials, supplies, or 
        equipment;
          (4) to make grants to eligible intermediaries that, together 
        with non-Federal matching funds, will enable the intermediaries 
        to provide intensive marketing, management, and technical 
        assistance to microloan borrowers;
          (5) to make grants to eligible nonprofit entities that, 
        together with non-Federal matching funds, will enable the 
        entities to provide intensive marketing, management, and 
        technical assistance to assist low-income entrepreneurs and 
        other low-income individuals obtain private sector financing 
        for their businesses, with or without loan guarantees;
          (6) to report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives on the effectiveness 
        of the microloan program and the advisability and feasibility 
        of implementing such a program nationwide; and
          (7) to establish a welfare-to-work microloan initiative to 
        test the feasibility of supplementing the technical assistance 
        grants provided under sections 21106 and 21107 of this title to 
        individuals who are receiving assistance under the State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.), or under any comparable State-
        funded means-tested program of assistance for low-income 
        individuals, to adequately assist those individuals in--
                  (A) establishing small business concerns; and
                  (B) eliminating their dependence on that assistance.
Sec. 21104. Eligibility for participation
  An intermediary shall be eligible to receive loans and grants under 
sections 21105 and 21106 of this title if the intermediary has at least 
one year of experience making microloans to startup, newly established, 
or growing small business concerns and providing, as an integral part 
of the microloan program, intensive marketing, management, and 
technical assistance to its borrowers.
Sec. 21105. Loans to intermediaries; loans by intermediaries to small 
                    business concerns
  (a) In General.--Under the microloan program, the Administrator may 
make direct loans to eligible intermediaries for the purpose of making 
microloans to small business concerns under this section.
  (b) Loan Applications.--
          (1) In general.--As part of an application for a loan, an 
        intermediary shall submit to the Administrator a description 
        of--
                  (A) the type of businesses to be assisted;
                  (B) the size and range of loans to be made;
                  (C) the geographic area to be served, including a 
                description of the economic, poverty, and unemployment 
                characteristics of the area;
                  (D) the status of small business concerns in the area 
                to be served, including an analysis of their credit and 
                technical assistance needs;
                  (E) any marketing, management, and technical 
                assistance to be provided in connection with a loan 
                made under this chapter;
                  (F) the local economic credit markets, including the 
                costs associated with obtaining credit locally;
                  (G) the qualifications of the applicant to carry out 
                the purposes of the microloan program; and
                  (H) any plan to involve other technical assistance 
                providers (such as counselors from SCORE or small 
                business development centers) or private sector lenders 
                in assisting selected business concerns.
          (2) Selection of intermediaries.--In selecting intermediaries 
        to participate in the microloan program, the Administrator 
        shall give priority to applicants that provide loans in amounts 
        averaging not more than $10,000.
  (c) Intermediary Contribution.--As a condition of a loan under 
subsection (a), the Administrator shall require an intermediary to 
contribute not less than 15 percent of the loan amount in cash from a 
non-Federal source.
  (d) Loan Limits.--A loan shall not be made under the microloan 
program if the total amount outstanding and committed (on a deferred 
basis, through a participation on an immediate basis, or directly) to 
one intermediary (excluding outstanding grants) under the general 
business loan program and microloan program would, as a result of the 
loan, exceed $750,000 in the first year of the intermediary's 
participation in the microloan program or $3,500,000 in any subsequent 
year of the intermediary's participation in the microloan program.
  (e) Loan Term.--A loan made by the Administrator under this chapter 
shall be for a term of 10 years.
  (f) Delayed Payments.--Except for a loan loss reserve fund under 
subsection (i), the Administrator shall not require repayment of 
principal or interest on a loan made to an intermediary under this 
chapter during the first year of the loan.
  (g) No Fee or Collateral.--Except for a loan loss reserve fund under 
subsection (i), the Administrator shall not charge any fee or require 
collateral other than an assignment of the notes receivable of the 
microloans with respect to any loan made to an intermediary under the 
microloan program.
  (h) Interest Rates.--
          (1) In general.--Except as provided in paragraph (2), a loan 
        made by the Administrator to an intermediary under this chapter 
        shall bear an interest rate equal to 1.25 percentage points 
        below the rate determined by the Secretary of the Treasury for 
        obligations of the United States with a period of maturity of 5 
        years, adjusted to the nearest 0.125 percent.
          (2) Rates applicable to certain small loans.--A loan made by 
        the Administrator to an intermediary that makes loans to small 
        business concerns and entrepreneurs averaging not more than 
        $7,500 shall bear an interest rate that is 2 percentage points 
        below the rate determined by the Secretary of the Treasury for 
        obligations of the United States with a period of maturity of 5 
        years, adjusted to the nearest 0.125 percent.
          (3) Multiple sites or offices.--The interest rate determined 
        under paragraph (1) or (2) shall apply to each separate 
        loanmaking site or office of an intermediary only if the site 
        or office meets the requirements of that paragraph.
          (4) Rate basis.--The applicable rate of interest under this 
        subsection--
                  (A) for the first year of an intermediary's 
                participation in the microloan program, shall be 
                applied retroactively based on the actual lending 
                practices of the intermediary as determined by the 
                Administrator before the end of that year; and
                  (B) for each subsequent year of an intermediary's 
                participation in the microloan program, shall be based 
                on the actual lending practices of the intermediary 
                during the term of the intermediary's participation in 
                the microloan program.
  (i) Loss Reserve of Intermediaries.--
          (1) In general.--The Administrator shall by regulation 
        require an intermediary to establish and maintain a loan loss 
        reserve fund until all obligations owed to the Administrator 
        under the microloan program are repaid.
          (2) Level of loan loss reserve fund.--
                  (A) In general.--Subject to subparagraph (C), the 
                Administrator shall require the loan loss reserve fund 
                of an intermediary to be maintained at a level equal to 
                15 percent of the outstanding balance of the notes 
                receivable owed to the intermediary.
                  (B) Review of loan loss reserve.--  
                          (i) In general.--After the initial 5 years of 
                        an intermediary's participation in the 
                        microloan program, the Administrator shall, at 
                        the request of the intermediary, conduct a 
                        review of the annual loss rate of the 
                        intermediary.
                          (ii) Review period.--An intermediary that 
                        requests a reduction in its loan loss reserve 
                        shall be reviewed based on the most recent 5-
                        year period preceding the request.
                  (C) Reduction of loan loss reserve.--Subject to 
                subparagraph (D), the Administrator may reduce the 
                annual loan loss reserve requirement of an intermediary 
                to reflect the actual average loan loss rate for the 
                intermediary during the preceding 5-year period, except 
                that in no case shall the loan loss reserve be reduced 
                to less than 10 percent of the outstanding balance of 
                the notes receivable owed to the intermediary.
                  (D) Requirements.--The Administrator may reduce the 
                annual loan loss reserve requirement of an intermediary 
                only if the intermediary demonstrates to the 
                satisfaction of the Administrator that--
                          (i) the average annual loss rate for the 
                        intermediary during the preceding 5-year period 
                        is less than 15 percent; and
                          (ii) no other factors exist that may impair 
                        the ability of the intermediary to repay all 
                        obligations owed to the Administrator under 
                        this chapter.
  (j) Loans by Intermediaries to Small Business Concerns.--
          (1) In general.--From funds made available to an intermediary 
        under the microloan program, the intermediary shall make short-
        term, fixed rate loans to startup, newly established, and 
        growing small business concerns for working capital and the 
        acquisition of materials, supplies, furniture, fixtures, and 
        equipment.
          (2) Loan amount.--
                  (A) Portfolio requirement.--To the extent 
                practicable, an intermediary that operates under the 
                microloan program shall maintain a microloan portfolio 
                with an average loan size of not more than $15,000.
                  (B) Unavailability of comparable credit.--An 
                intermediary may make a loan under the microloan 
                program of more than $20,000 to a small business 
                concern only if the small business concern demonstrates 
                that--
                          (i) it is unable to obtain credit elsewhere 
                        at comparable interest rates; and
                          (ii) it has good prospects for success.
                  (C) Maximum amount.--An intermediary shall not--
                          (i) make a loan under this chapter of more 
                        than $35,000; or
                          (ii) have outstanding or committed to any one 
                        borrower more than $35,000.
          (3) Interest limit.--Notwithstanding any provision of law of 
        any State (including the constitution of a State) pertaining to 
        the rate or amount of interest that may be charged, taken, 
        received, or reserved on a loan, the maximum rate of interest 
        to be charged on a microloan funded under this chapter shall 
        not exceed the rate of interest applicable to a loan made to an 
        intermediary by the Administrator--
                  (A) in the case of a loan of more than $7,500 made by 
                the intermediary to a small business concern or 
                entrepreneur, by more than 7.75 percentage points; and
                  (B) in the case of a loan of not more than $7,500 
                made by the intermediary to a small business concern or 
                entrepreneur by more than 8.5 percentage points.
          (4) Review restriction.--The Administrator shall not review 
        individual microloans made by intermediaries prior to approval.
          (5) Establishment of child care or transportation 
        businesses.--In addition to other eligible small business 
        concerns, a borrower under the microloan program may include an 
        individual who will use the loan proceeds to establish--
                  (A) a for-profit or nonprofit child care 
                establishment; or
                  (B) a business providing a for-profit transportation 
                service.
  (k) Program Funding for Microloans.--
          (1) Number of participants.--Under the microloan program, the 
        Administrator may fund, on a competitive basis, not more than 
        300 intermediaries.
          (2) Allocation.--
                  (A) Minimum allocation.--Subject to the availability 
                of appropriations, of the total amount of new loan 
                funds made available for award under the microloan 
                program for each fiscal year, the Administrator shall 
                make available for award in each State an amount equal 
                to the sum of--
                          (i) the lesser of--
                                  (I) $800,000; or
                                  (II) \1/55\ of the total amount of 
                                new loan funds made available for award 
                                under the microloan program for that 
                                fiscal year; and
                          (ii) any additional amount, as determined by 
                        the Administrator.
                  (B) Redistribution.--If, at the beginning of the 
                third quarter of a fiscal year, the Administrator 
                determines that any portion of the amount made 
                available to carry out the microloan program is 
                unlikely to be made available under subparagraph (A) 
                during that fiscal year, the Administrator may make 
                that portion available for award in any one or more 
                States without regard to subparagraph (A).
  (l) Equitable Distribution of Intermediaries.--In approving microloan 
program applicants and providing funding to intermediaries under the 
microloan program, the Administrator shall select and provide funding 
to such intermediaries as will ensure appropriate availability of loans 
for small business concerns in all industries located throughout each 
State, particularly industries located in urban areas and industries 
located in rural areas.
Sec. 21106. Marketing, management, and technical assistance grants to 
                    intermediaries
  (a) In General.--In conjunction with a loan to an intermediary under 
section 21105 of this title, the Administrator may make a grant to the 
eligible intermediary for the purpose of providing intensive marketing, 
management, and technical assistance to small business concerns that 
are borrowers under the microloan program.
  (b) Grant Amount.--
          (1) In general.--An intermediary that receives a loan under 
        section 21105 of this title shall be eligible to receive a 
        grant in an amount equal to not more than 25 percent of the 
        total outstanding balance of loans made to the intermediary 
        under the microloan program.
          (2) Intermediary contribution.--
                  (A) In general.--As a condition of a grant under 
                paragraph (1), the Administrator shall require the 
                intermediary to contribute an amount equal to 25 
                percent of the amount of the grant, obtained solely 
                from a non-Federal source.
                  (B) Form.--In addition to cash or other direct 
                funding, a contribution under subparagraph (A) may 
                include indirect costs or in-kind contributions paid 
                for under a non-Federal program.
  (c) Additional Technical Assistance Grants for Making Certain 
Loans.--
          (1) In general.--An intermediary that has a portfolio of 
        loans under the microloan program that averages not more than 
        $10,000 during the period of the intermediary's participation 
        in the microloan program shall be eligible to receive a grant 
        equal to 5 percent of the total outstanding balance of loans 
        made to the intermediary under the microloan program, in 
        addition to any grant made under subsection (b).
          (2) Use.--A grant under paragraph (1) shall be used to 
        provide marketing, management, and technical assistance to 
        small business concerns that are borrowers under the microloan 
        program.
  (d) Multiple Sites or Offices.--Eligibility for a grant under 
subsection (b) or (c) shall be determined separately for each 
loanmaking site or office of an intermediary.
  (e) Assistance to Certain Small Business Concerns.--
          (1) In general.--An intermediary may expend an amount not to 
        exceed 25 percent of the funds received under subsection (a) to 
        provide information and technical assistance to small business 
        concerns that are prospective borrowers under section 21108 of 
        this title.
          (2) Technical assistance.--An intermediary may provide 
        technical assistance under paragraph (1) through a third party 
        contract.
Sec. 21107. Private sector borrowing technical assistance grants
  (a) In General.--The Administrator may make grants to nonprofit 
entities for the purpose of providing marketing, management, and 
technical assistance to low-income individuals seeking to start or 
enlarge their own businesses, if the assistance includes working with 
the grant recipient to secure loans in amounts not to exceed $35,000 
from private sector lending institutions, with or without a loan 
guarantee from the nonprofit entity.
  (b) Grant Amounts.--The Administrator may make not more than 55 
grants annually under subsection (a), each in an amount not to exceed 
$200,000.
  (c) Grant Recipient Contribution.--
          (1) In general.--As a condition of a grant under subsection 
        (a), the Administrator shall require the grant recipient to 
        contribute an amount equal to 20 percent of the amount of the 
        grant, obtained solely from a non-Federal source.
          (2) Form.--In addition to cash or other direct funding, a 
        contribution under paragraph (1) may include indirect costs or 
        in-kind contributions paid for under a non-Federal program.
Sec. 21108. Grants for management, marketing, technical assistance, and 
                    related services
  (a) In General.--The Administrator may procure technical assistance 
for intermediaries participating in the microloan program to ensure 
that the intermediaries have the knowledge, skills, and understanding 
of microlending practices necessary to operate a successful microloan 
program.
  (b) Assistance Amount.--The Administrator shall transfer 7 percent of 
the annual appropriation for loans and loan guarantees under this 
chapter to the Administration's Salaries and Expense Account for the 
specific purpose of providing one or more technical assistance grants 
to experienced microlending organizations and national and regional 
nonprofit organizations that have demonstrated experience in providing 
training support for microenterprise development and financing to 
achieve the purpose specified in subsection (a).
  (c) Welfare-to-Work Microloan Initiative.--Of amounts made available 
to carry out the welfare-to-work microloan initiative under section 
21103(7) of this title for any fiscal year, the Administrator may use 
not more than 5 percent to provide technical assistance, either 
directly or through contractors, to welfare-to-work microloan 
initiative grantees, to ensure that the grantees have the knowledge, 
skills, and understanding of microlending and welfare-to-work 
transition, and other related issues, to operate a successful welfare-
to-work microloan initiative.

                DIVISION D--DISASTER ASSISTANCE PROGRAMS

                   CHAPTER 213--DISASTER LOAN PROGRAM

Sec.
21301.  Physical loss disaster loans.
21302.  Economic injury disaster loans.
21303.  Loans to assist small business concerns that suffer injury as a 
          result of an essential employee's being ordered to active 
          military duty.
21304.  Public awareness of disaster declaration and application 
          periods.
21305.  Disaster loan processing.
21306.  Disaster assistance employees.
21307.  Maximum loan amount.
21308.  Declaration of eligility for additional disaster assistance.
21309.  Interest rates.
21310.  Maximum term.
21311.  Deferment of repayment.
21312.  Suspension of payments.
21313.  Participation in loans on deferred basis.
21314.  Assistance and counseling for disaster victims.
21315.  Priority in allocating funds.
21316.  Prohibition of cancellation of certain disaster loans.
21317.  Prohibition of net earnings clauses.
21318.  Biennial disaster simulation exercise.
21319.  Disaster planning responsibilities.
21320.  Disaster response plan.
21321.  Coordination of disaster assistance programs with FEMA.
21322.  Plans to secure sufficient office space.
21323.  Bond guarantees in procurements relating to a major disaster.
21324.  Civil penalty.
Sec. 21301. Physical loss disaster loans
  (a) In General.--Except as to agricultural enterprises, to the extent 
and in such amounts as are provided in advance in appropriation Acts, 
the Administrator may make such a loan (directly or in cooperation with 
a bank or other lending institution through an agreement to participate 
on an immediate or deferred (guaranteed) basis) as the Administrator 
determines to be necessary or appropriate to repair, rehabilitate, or 
replace property, real or personal, damaged or destroyed by or as a 
result of a natural or other disaster.
  (b) Loan Amount.--
          (1) In general.--The amount of a loan under subsection (a) 
        shall be equal to 100 percent of the amount of the loss, minus 
        any amount compensated for by insurance or otherwise.
          (2) Protection from future disasters.--The Administrator may 
        increase the amount of a loan under subsection (a) by up to 20 
        percent of the aggregate costs of the damage or destruction 
        (whether or not compensated for by insurance or otherwise) if 
        the Administrator determines the increase to be necessary or 
        appropriate to protect the damaged or destroyed property from 
        future disasters by taking mitigating measures, including 
        construction of retaining walls and sea walls, grading and 
        contouring land, relocating utilities, and modifying 
        structures.
          (3) Limitation on loan amount.--
                  (A) In general.--No loan under this section shall be 
                made if the total amount outstanding and committed to 
                the borrower under the disaster loan program would 
                exceed $1,500,000 for any one disaster unless an 
                applicant constitutes a major source of employment in 
                an area suffering a disaster, in which case the 
                Administrator may waive the $1,500,000 limitation.
                  (B) Major source of employment.--For purposes of 
                determining whether a nonprofit applicant that owns a 
                premises constitutes a major source of employment under 
                subparagraph (A), the employees of 2 or more concerns 
                that share the premises as a common business premises 
                shall be aggregated.
          (4) Limitation on reduction of loan amount.--
                  (A) In general.--The Administrator shall not reduce 
                the amount of a loan--
                          (i) for any homeowner on account of loss of 
                        real estate to less than $100,000 for any one 
                        disaster; or
                          (ii) for any homeowner or lessee on account 
                        of loss of personal property to less than 
                        $20,000 for any one disaster.
                  (B) Refinancing.--The $100,000 and $20,000 amounts in 
                subparagraph (A) are in addition to any refinancing for 
                which a loan applicant is eligible.
  (c) Refinancings.--
          (1) In general.--A loan or guarantee may be made to refinance 
        a mortgage or other lien against a totally destroyed or 
        substantially damaged home or business concern (other than an 
        agricultural enterprise).
          (2) Requirements.--A loan or guarantee under paragraph (1) 
        shall not be made unless the Administrator determines that--
                  (A) the applicant is not able to obtain credit 
                elsewhere; and
                  (B) the property is to be repaired, rehabilitated, or 
                replaced.
          (3) Amount.--The amount refinanced under paragraph (1)--
                  (A) shall not exceed the amount of physical loss 
                sustained; and
                  (B) shall be reduced to the extent that the mortgage 
                or lien is satisfied by insurance or otherwise.
  (d) Collateral.--The Administrator shall not require collateral for a 
loan of $14,000 (or such greater amount as the Administrator determines 
to be appropriate in the event of a major disaster) or less that is 
made under this section.
Sec. 21302. Economic injury disaster loans
  (a) Definitions.--In this section:
          (1) Disaster.--The term ``disaster'' includes--
                  (A) a drought;
                  (B) a below average water level in one or more of the 
                Great Lakes or on any other body of water in the United 
                States that supports commerce by small business 
                concerns; and
                  (C) an ice storm or blizzard.
          (2) Disaster area.--The term ``disaster area'' includes--
                  (A) a county determined to be a disaster by the 
                President, the Secretary of Agriculture, or the 
                Administrator; and
                  (B) a county contiguous to a county described in 
                subparagraph (A).
  (b) Loans.--Except as to agricultural enterprises, to the extent and 
in such amounts as are provided in advance in appropriation Acts, the 
Administrator may make such a loan (directly or in cooperation with a 
bank or other lending institution through an agreement to participate 
on an immediate or deferred (guaranteed) basis) as the Administrator 
determines to be necessary or appropriate to a small business concern, 
private nonprofit organization, or small agricultural cooperative 
located in a disaster area if--
          (1) the Administrator determines that the small business 
        concern, private nonprofit organization, or agricultural 
        cooperative has suffered a substantial economic injury as a 
        result of the disaster;
          (2)(A) the disaster constitutes--
                  (i) a major disaster;
                  (ii) a natural disaster, as determined by the 
                Secretary of Agriculture under section 321 of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1961), in which case, assistance under this section may 
                be provided to farm-related and nonfarm-related small 
                business concerns, subject to the other applicable 
                requirements of this section; or
                  (iii) a disaster, as determined by the Administrator; 
                or
          (B) if no disaster described in subparagraph (A) is declared, 
        the Governor of a State in which a disaster has occurred 
        certifies to the Administrator that small business concerns, 
        private nonprofits organizations, or small agricultural 
        cooperatives--
                  (i) have suffered economic injury as a result of the 
                disaster; and
                  (ii) are in need of financial assistance that is not 
                available on reasonable terms in the disaster area; and
          (3) the Administrator determines that the applicant is not 
        able to obtain credit elsewhere.
  (c) Prompt Response to Certification.--Not later than 30 days after 
the date of receipt of a certification by a Governor of a State under 
subsection (b)(2)(B), the Administrator shall respond in writing to the 
Governor on the Administrator's determination regarding the 
certification, stating the reasons for the determination.
  (d) Limitation on Loan Amount.--
          (1) In general.--No loan under this section shall be made if 
        the total amount outstanding and committed to a borrower under 
        the disaster loan program would exceed $1,500,000 for any one 
        disaster unless the borrower constitutes a major source of 
        employment in a disaster area, in which case the Administrator 
        may waive the $1,500,000 limitation.
          (2) Major source of employment.--For purposes of determining 
        whether a nonprofit applicant that owns a premises constitutes 
        a major source of employment under paragraph (1), the employees 
        of 2 or more concerns that share the premises as a common 
        business premises shall be aggregated.
  (e) Nurseries.--The Administrator shall not withhold disaster 
assistance under this section to a nursery that is a victim of a 
drought disaster.
Sec. 21303. Loans to assist small business concerns that suffer injury 
                    as a result of an essential employee's being 
                    ordered to active military duty
  (a) Definitions.--In this section:
          (1) Essential employee.--The term ``essential employee'' 
        means an individual who is employed by a small business concern 
        and whose managerial or technical expertise is critical to the 
        successful day-to-day operations of the small business concern.
          (2) Period of military conflict.--The term ``period of 
        military conflict'' has the meaning given the term in section 
        20104(a) of this title.
          (3) Reservist expecting activation.--The term ``reservist 
        expecting activation'' means a reservist who--
                  (A) has not been ordered to active duty;
                  (B) expects to be ordered to active duty during a 
                period of military conflict; and
                  (C) is a key employee of a small business concern 
                that can reasonably demonstrate that the small business 
                concern will suffer economic injury in the absence of 
                the reservist.
          (4) Substantial economic injury.--The term ``substantial 
        economic injury'' means an economic harm to a small business 
        concern that results in the inability of the small business 
        concern to--
                  (A) meet its obligations as they mature;
                  (B) pay its ordinary and necessary operating 
                expenses; or
                  (C) market, produce, or provide a product or service 
                ordinarily marketed, produced, or provided by the small 
                business concern.
  (b) In General.--Except as to agricultural enterprises, to the extent 
and in such amounts as are provided in advance in appropriation Acts, 
the Administrator may make a loan (directly or in cooperation with a 
bank or other lending institution through an agreement to participate 
on an immediate or deferred basis) to assist a small business concern 
that has suffered or that is likely to suffer substantial economic 
injury as the result of an essential employee of the small business 
concern's being ordered to active military duty during a period of 
military conflict.
  (c) Eligibility Period.--
          (1) In general.--A small business concern shall be eligible 
        for assistance under this section during the period beginning 
        on the date on which an essential employee is ordered to active 
        duty and ending on the date that is one year after the date on 
        which the essential employee is discharged or released from 
        active duty.
          (2) Extension.--The Administrator may, when appropriate (as 
        determined by the Administrator), extend the ending date 
        specified in paragraph (1) by not more than one year.
  (d) Interest Rate.--A loan or guarantee made under this section shall 
be made at the same interest rate as in the case of an economic injury 
loan under section 21302 of this title.
  (e) Loan Amount.--
          (1) In general.--Except as provided in paragraph (2), no loan 
        may be made under this section if the total amount outstanding 
        and committed to the borrower under the disaster loan program 
        would exceed $1,500,000.
          (2) Major source of employment.--If the Administrator 
        determines that the applicant constitutes a major source of 
        employment in its surrounding area (including a borrower that 
        was not a major source of employment before the disaster but 
        became a major source of employment after the disaster), as 
        determined by the Administrator, the Administrator may waive 
        the $1,500,000 limitation under paragraph (1).
  (f) Preconsideration Process.--The Administrator shall establish a 
preconsideration process under which the Administrator--
          (1) may collect all relevant materials necessary for 
        processing a loan to a small business concern under this 
        section before a reservist expecting activation who is employed 
        by the small business concern is activated; and
          (2) shall distribute funds for any loan approved under 
        paragraph (1) if the reservist expecting activation is 
        activated.
  (g) Outreach and Technical Assistance Program.--
          (1) In general.--The Administrator, in consultation with the 
        Secretary of Veterans Affairs and the Secretary of Defense, may 
        develop a comprehensive outreach and technical assistance 
        program (referred to in this subsection as the ``program'') 
        to--
                  (A) market the loans available under this section to 
                reservists and family members of reservists (including 
                both reservists that are on active duty and reservists 
                that are not on active duty); and
                  (B) provide technical assistance to a small business 
                concern applying for a loan under this section.
          (2) Components.--The program shall--
                  (A) incorporate appropriate websites maintained by 
                the Administration, the Department of Veterans Affairs, 
                and the Department of Defense; and
                  (B) require that information on the program be made 
                available to small business concerns directly through--
                          (i) the district offices and resource 
                        partners of the Administration, including small 
                        business development centers, women's business 
                        centers, and the SCORE; and
                          (ii) the Department of Veterans Affairs, the 
                        Department of Defense, and other Federal 
                        agencies.
          (3) Report.--
                  (A) In general.--The Administrator shall submit to 
                Congress a biannnual report on the status of the 
                program.
                  (B) Contents.--A report under subparagraph (A) shall 
                include--
                          (i) for the 6-month period ending on the date 
                        of the report--
                                  (I) the number of loans approved 
                                under this section;
                                  (II) the number of loans disbursed 
                                under this section; and
                                  (III) the total amount disbursed 
                                under this section; and
                          (ii) recommendations, if any, to make the 
                        program more effective in serving small 
                        business concerns that employ reservists.
                  (C) Repeal.--This paagraph is repealed effective 
                February 14, 2011.
  (h) Noncollateralized Loans.--
          (1) In general.--Notwithstanding any other provision of law, 
        the Administrator may make a loan under this section of not 
        more than $50,000 without collateral.
          (2) Deferral of payment.--The Administrator may defer payment 
        of principal and interest on a loan described in paragraph (1) 
        during the longer of--
                  (A) the one-year period beginning on the date of the 
                initial disbursement of the loan; or
                  (B) the period during which the essential employee is 
                on active duty.
  (i) Priority.--The Administrator shall--
          (1) give priority to any application for a loan under this 
        section; and
          (2) process and make a determination regarding applications 
        under this section prior to processing or making a 
        determination on other loan applications under the disaster 
        loan program, on a rolling basis.
Sec. 21304. Public awareness of disaster declaration and application 
                    periods
  (a) Coordination With FEMA.--
          (1) In general.--Notwithstanding any other provision of law, 
        for any disaster declared under this chapter or major disaster 
        (including any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title), the 
        Administrator, in consultation with the Administrator of the 
        Federal Emergency Management Agency, shall ensure, to the 
        maximum extent practicable, that all application periods for 
        disaster relief under this subtitle correspond with application 
        deadlines established under the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
        or as extended by the President.
          (2) Deadlines.--Notwithstanding any other provision of law, 
        not later than 10 days before the closing date of an 
        application period for a major disaster (including any major 
        disaster relating to which the Administrator declares 
        eligibility for additional disaster assistance under section 
        21308 of this title), the Administrator, in consultation with 
        the Administrator of the Federal Emergency Management Agency, 
        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 that 
        includes--
                  (A) the deadline for submitting applications for 
                assistance under this subtitle relating to the major 
                disaster;
                  (B) information regarding the number of loan 
                applications and disbursements processed by the 
                Administrator relating to the major disaster for each 
                day during the period beginning on the date on which 
                the major disaster was declared and ending on the date 
                of the report; and
                  (C) an estimate of the number of potential applicants 
                that have not submitted an application relating to the 
                major disaster.
  (b) Public Awareness of Disasters.--If a disaster is declared under 
this chapter or the Administrator declares eligibility for additional 
disaster assistance under section 21308 of this title, the 
Administrator shall make every effort to communicate through radio, 
television, print, and web-based outlets all relevant information 
needed by disaster loan applicants, including--
          (1) the date of the declaration;
          (2) the names of cities and towns within the disaster area;
          (3) loan application deadlines related to the disaster;
          (4) all relevant contact information for victim services 
        available through the Administrator (including links to small 
        business development center websites);
          (5) links to relevant Federal and State disaster assistance 
        websites, including links to websites providing information 
        regarding assistance available from the Federal Emergency 
        Management Agency;
          (6) information on eligibility criteria for the disaster 
        assistance programs, including where loan applications can be 
        found; and
          (7) loan application materials that clearly state the 
        function of the Administration as the Federal source of 
        disaster loans for homeowners and renters.
  (c) Marketing and Outreach.--The Administrator shall create a 
marketing and outreach plan that--
          (1) encourages a proactive approach to the disaster relief 
        efforts of the Administrator;
          (2) makes clear the services provided by the Administrator, 
        including contact information, application information, and 
        timelines for submitting applications, the review of 
        applications, and the disbursement of funds;
          (3) describes each of the disaster assistance programs, 
        including how each disaster assistance program is made 
        available and the eligibility requirements for each disaster 
        assistance program;
          (4) provides for regional marketing, focusing on disasters 
        occurring in each Administration region before June 18, 2008, 
        and likely scenarios for disasters in each Administration 
        region; and
          (5) ensures that the marketing plan is made available at 
        small business development centers and on the website of the 
        Administration.
Sec. 21305. Disaster loan processing
  (a) Major Disaster Loan Processing and Loss Verification by Qualified 
Private Contractors.--
          (1) Major disaster loan processing.--The Administrator may 
        enter into an agreement with a qualified private contractor, as 
        determined by the Administrator, to process loans under this 
        chapter in the event of a major disaster (including any major 
        disaster relating to which the Administrator declares 
        eligibility for additional disaster assistance under section 
        21308 of this title), under which the Administrator shall pay 
        the contractor a fee for each loan processed.
          (2) Loan loss verification.--The Administrator may enter into 
        an agreement with a qualified lender or loss verification 
        professional, as determined by the Administrator, to verify 
        losses for loans under this chapter in the event of a major 
        disaster (including any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title), under which the 
        Administrator shall pay the lender or verification professional 
        a fee for each loan for which the lender or verification 
        professional verifies a loss.
  (b) Coordination of Efforts Between the Administrator and the 
Commissioner of Internal Revenue To Expedite Loan Processing.--The 
Administrator and the Commissioner of Internal Revenue shall, to the 
maximum extent practicable, ensure that all relevant and allowable tax 
records for loan approval are shared with loan processors in an 
expedited manner on request by the Administrator.
  (c) Information Tracking and Followup System.--
          (1) Information tracking.--
                  (A) In general.--The Administrator shall develop, 
                implement, and maintain a centralized information 
                system to track communications between Administration 
                personnel and applicants for disaster assistance.
                  (B) Information to be recorded.--The information 
                system shall ensure that when an applicant for disaster 
                assistance communicates with Administration personnel 
                on a matter relating to the application, the following 
                information is recorded:
                          (i) The method of communication.
                          (ii) The date of the communication.
                          (iii) The identity of the Administration 
                        personnel.
                          (iv) A summary of the subject matter of the 
                        communication.
          (2) Followup.--The Administrator shall ensure that an 
        applicant for disaster assistance receives, by telephone, mail, 
        or electronic mail, followup communications from Administration 
        personnel at all critical stages of the application process, 
        including the following:
                  (A) When Administration personnel determine that 
                additional information or documentation is required to 
                process the application.
                  (B) When Administration personnel determine whether 
                to approve or deny the disaster assistance.
                  (C) When the primary contact person managing the 
                application for disaster assistance has changed.
  (d) Disaster Assistance Processing Redundancy.--The Administrator 
shall ensure that the Administration has in place a facility for 
disaster assistance processing that, when the Administration's primary 
facility for disaster loan processing becomes unavailable, is able to 
take over all disaster loan processing from the primary facility within 
2 days.
Sec. 21306. Disaster assistance employees
  (a) In General.--In carrying out the disaster assistance programs, 
the Administrator may, where practicable, ensure that the number of 
full-time equivalent employees--
          (1) in the Office of the Disaster Assistance is not fewer 
        than 800; and
          (2) in the Disaster Cadre of the Administration is not fewer 
        than 1,000.
  (b) Report.--In carrying out the disaster assistance programs, if the 
number of full-time employees for the Office of Disaster Assistance or 
the Disaster Cadre of the Administration is below the level required by 
subsection (a) for that office, not later than 21 days after the date 
on which the staffing level decreases below the level required by 
subsection (a), the Administrator shall submit to the Committee on 
Appropriations and Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Appropriations and Committee on Small 
Business of the House of Representatives a report that--
          (1) details staffing levels on that date;
          (2) requests, if practicable and determined to be appropriate 
        by the Administrator, additional funds for additional 
        employees; and
          (3) contains such additional information as the Administrator 
        determines to be appropriate.
Sec. 21307. Maximum loan amount
  (a) Aggregate Loan Amounts.--Except as provided in subsection (b), 
and notwithstanding any other provision of law, the aggregate loan 
amount outstanding and committed to a borrower under the disaster loan 
program shall not exceed $2,000,000.
  (b) Waiver.--The Administrator may increase the aggregate loan amount 
under subsection (a) for loans relating to a disaster to a level 
established by the Administrator based on appropriate economic 
indicators for the region in which the disaster occurred.
Sec. 21308. Declaration of eligibility for additional disaster 
                    assistance
  (a) Definitions.--In this section:
          (1) Eligible small business concern.--The term ``eligible 
        small business concern'' means a small business concern--
                  (A) that has suffered major disaster-related 
                substantial economic injury as a result of a major 
                disaster; and
                  (B)(i) for which not less than 25 percent of the 
                market share of the small business concern is from 
                business transacted in the major disaster area;
                  (ii) for which not less than 25 percent of an input 
                into a production process of the small business concern 
                is from the major disaster area; or
                  (iii) that relies on a provider located in the major 
                disaster area for a service that is not readily 
                available elsewhere.
          (2) Major disaster-related substantial economic injury.--The 
        term ``major disaster-related substantial economic injury'' 
        means economic harm to a business concern that results in the 
        inability of the business concern to--
                  (A) meet its obligations as they mature;
                  (B) meet its ordinary and necessary operating 
                expenses; or
                  (C) market, produce, or provide a product or service 
                ordinarily marketed, produced, or provided by the 
                business concern because the business concern relies on 
                materials from the major disaster area or sells or 
                markets in the major disaster area.
  (b) Declaration of Eligibility.--If the President declares a major 
disaster, the Administrator may declare eligibility for additional 
disaster assistance in accordance with this section.
  (c) Threshold.--A major disaster for which the Administrator declares 
eligibility for additional disaster assistance under this section shall 
be a major disaster that--
          (1) results in--
                  (A) extraordinary levels of casualties or damage; or
                  (B) disruption severely affecting the population 
                (including a mass evacuation), the infrastructure, the 
                environment, the economy, national morale, or 
                government functions in an area;
          (2) is comparable to a catastrophic incident described in the 
        Administrator's national response plan (including any successor 
        to the national response plan), unless the national response 
        plan expires and there is no successor to the plan, in which 
        case this paragraph shall be of no effect; and
          (3) is of such size and scope that--
                  (A) the disaster loan program is incapable of 
                providing adequate and timely assistance to individuals 
                or business concerns located within the major disaster 
                area; or
                  (B) a significant number of business concerns outside 
                the major disaster area have suffered major disaster-
                related substantial economic injury as a result of the 
                major disaster.
  (d) Additional Economic Injury Disaster Loan Assistance.--
          (1) In general.--If the Administrator declares eligibility 
        for additional disaster assistance under this section, the 
        Administrator may make such loans under this subsection as the 
        Administrator determines to be appropriate to eligible small 
        business concerns located anywhere in the United States.
          (2) Processing time.--
                  (A) In general.--If the Administrator determines that 
                the average processing time for applications for 
                disaster loans under this subsection relating to a 
                specific major disaster is more than 15 days, the 
                Administrator shall give priority to the processing of 
                such applications submitted by eligible small business 
                concerns located inside the major disaster area until 
                the Administrator determines that the average 
                processing time for such applications is not more than 
                15 days.
                  (B) Suspension of applications from outside major 
                disaster area.--If the Administrator determines that 
                the average processing time for applications for 
                disaster loans under this subsection relating to a 
                specific major disaster is more than 30 days, the 
                Administrator shall suspend the processing of such 
                applications submitted by eligible small business 
                concerns located outside the major disaster area until 
                the Administrator determines that the average 
                processing time for such applications is not more than 
                15 days.
          (3) Loan terms.--A loan under this subsection shall be made 
        on the same terms as a loan under section 21302 of this title.
Sec. 21309. Interest rates
  (a) In General.--Notwithstanding any other provision of law, except 
as provided in subsection (b), the interest rate on the Administrator's 
share of a loan under the disaster loan program shall not exceed--
          (1) the average annual interest rate on all interest-bearing 
        obligations of the United States then forming a part of the 
        public debt as computed at the end of the fiscal year next 
        preceding the date of the loan and adjusted to the nearest 
        0.125 percent; plus
          (2) 0.25 percent.
  (b) Loans Under Section 21301 or 21302.--
          (1) In general.--The interest rate for a loan under section 
        21301 or 21302 of this title shall not exceed the rate of 
        interest that is in effect at the time of the occurrence of the 
        disaster.
          (2) Determination.--Notwithstanding any other provision of 
        law, the interest rate on the Federal share of a loan under 
        section 21301 or 21302 of this title, determined as of the date 
        of the disaster, shall be--
                  (A) in the case of a homeowner unable to secure 
                credit elsewhere, the lesser of--
                          (i) a rate prescribed by the Administrator, 
                        not to exceed half a rate determined by the 
                        Secretary of the Treasury taking into 
                        consideration the current average market yield 
                        on outstanding marketable obligations of the 
                        United States with remaining periods to 
                        maturity comparable to the average maturities 
                        of such loans plus an additional charge of not 
                        to exceed one percent per year as determined by 
                        the Administrator, and adjusted to the nearest 
                        0.125 percent; or
                          (ii) 4 percent per year;
                  (B) in the case of a homeowner able to secure credit 
                elsewhere, the lesser of--
                          (i) a rate prescribed by the Administrator, 
                        not to exceed a rate determined by the 
                        Secretary of the Treasury taking into 
                        consideration the current average market yield 
                        on outstanding marketable obligations of the 
                        United States with remaining periods to 
                        maturity comparable to the average maturities 
                        of such loans plus an additional charge of not 
                        to exceed one percent per year as determined by 
                        the Administrator, and adjusted to the nearest 
                        0.125 percent; or
                          (ii) 8 percent per year;
                  (C) in the case of a business concern, private 
                nonprofit organization, or other concern (including an 
                agricultural cooperative) unable to obtain credit 
                elsewhere, not to exceed 4 percent per year; or
                  (D) in the case of a business concern able to obtain 
                credit elsewhere, a rate prescribed by the 
                Administrator, not to exceed the lowest of--
                          (i) the rate prevailing in the private market 
                        for similar loans;
                          (ii) the rate prescribed by the Administrator 
                        as the maximum interest rate for deferred 
                        participation (guaranteed) loans under the 
                        general business loan program; or
                           (iii) 8 percent per year.
Sec. 21310. Maximum term
  No loan under the disaster loan program (including any renewal or 
extension of a loan) may be made for a period or periods exceeding--
          (1) 30 years; or
          (2) in the case of a loan to a business concern under section 
        21309(b)(2)(D) of this title that is able to obtain credit 
        elsewhere, 3 years.
Sec. 21311. Deferment of repayment
  (a) In General.--In making a loan under this chapter, the 
Administrator may provide the person receiving the loan an option to 
defer repayment on the loan.
  (b) Deferment Period.--The period of a deferment under subsection (a) 
shall not exceed 4 years.
Sec. 21312. Suspension of payments
  (a) In General.--The Administrator may consent to a suspension in the 
payment of principal and interest on, and to an extension in the 
maturity of, the Federal share of a loan under the disaster loan 
program, for a period not to exceed 5 years, if--
          (1) the borrower under the loan is a homeowner or a small 
        business concern;
          (2) the loan was made to enable--
                  (A) the homeowner to repair or replace his or her 
                home; or
                  (B) the small business concern to repair or replace 
                plant or equipment that was damaged or destroyed as the 
                result of a disaster described in clause (i) or (ii) of 
                section 21302(b)(2)(A) of this title; and
          (3) the Administrator determines that the suspension is 
        necessary to avoid severe financial hardship.
  (b) Purchase of Participation or Assumption of Obligation.--During 
any period in which principal and interest charges are suspended under 
subsection (a), the Administrator shall, on the request of any person 
having a participation in the loan, purchase the participation, or 
assume the obligation of the borrower, for the balance of the period, 
to make principal and interest payments on the non-Federal share of the 
loan, if--
          (1) the Administrator determines that the action is necessary 
        to avoid a default; and
          (2) the borrower agrees to make payments to the Administrator 
        in an aggregate amount equal to the amount paid in the 
        borrower's behalf by the Administrator, in such manner and at 
        such times (during or after the term of the loan) as the 
        Administrator determines having due regard for the purposes 
        sought to be achieved by this subsection.
Sec. 21313. Participation in loans on deferred basis
  In an agreement to participate in a loan on a deferred basis under 
the disaster loan program, participation by the Administrator shall not 
be in excess of 90 percent of the balance of the loan outstanding at 
the time of disbursement.
Sec. 21314. Assistance and counseling for disaster victims
  In administering the disaster assistance programs, to the maximum 
extent possible, the Administrator shall provide assistance and 
counseling to disaster victims in--
          (1) filing applications (including the provision of 
        information relevant to loan processing); and
          (2) loan closing and prompt disbursement of loan proceeds.
Sec. 21315. Priority in allocating funds
  In administering the disaster assistance programs, to the maximum 
extent possible, the Administrator shall give the disaster loan program 
a high priority in allocating funds for administrative expenses.
Sec. 21316. Prohibition of cancellation of certain disaster loans
  No portion of a loan under section 21301 or 21302 of this title shall 
be subject to cancellation under any provision of law.
Sec. 21317. Prohibition of net earnings clauses
  In making a loan under this chapter, the Administrator shall not 
require the borrower to pay any nonamortized amount for the first 5 
years after repayment begins.
Sec. 21318. Biennial disaster simulation exercise
  (a) In General.--The Administrator shall conduct a disaster 
simulation exercise at least once every 2 fiscal years.
  (b) Requirements.--A disaster simulation exercise shall--
          (1) include the participation of, at a minimum, not fewer 
        than 50 percent of the individuals in the disaster reserve 
        corps; and
          (2) test, at maximum capacity, all of the information 
        technology and telecommunications systems of the Administrator 
        that are vital to the activities of the Administrator during a 
        disaster.
  (c) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on a disaster simulation 
exercise conducted under subsection (a).
Sec. 21319. Disaster planning responsibilities
  (a) Definitions.--In this section:
          (1) Disaster planning officer.--The term``disaster planning 
        officer'' means the individual to whom the disaster planning 
        function of the Administrator is assigned under subsection (b).
          (2) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, the Virgin Islands, Guam, American Samoa, and 
        any territory or possession of the United States.
  (b) Assignment of Small Business Administration Disaster Planning 
Responsibilities.--The disaster planning function of the Administrator 
shall be assigned to an individual appointed by the Administrator who--
          (1) is not an employee of the Office of Disaster Assistance 
        of the Administration;
          (2) has proven management ability;
          (3) has substantial knowledge in the field of disaster 
        readiness and emergency response; and
          (4) has demonstrated significant experience in the area of 
        disaster planning.
  (c) Responsibilities.--The disaster planning officer shall report 
directly and solely to the Administrator and shall be responsible for--
          (1) developing, implementing, and maintaining the 
        comprehensive disaster response plan under section 21320 of 
        this title;
          (2) ensuring that there are in-service and pre-service 
        training procedures for the disaster response staff of the 
        Administration;
          (3) coordinating and directing the training exercises of the 
        Administration relating to disasters, including disaster 
        simulation exercises and disaster exercises coordinated with 
        other government agencies; and
          (4) other responsibilities relevant to disaster planning and 
        readiness, as determined by the Administrator.
  (d) Coordination.--In carrying out the responsibilities described in 
subsection (c), the disaster planning officer shall coordinate with--
          (1) the Office of Disaster Assistance of the Administration;
          (2) the Administrator of the Federal Emergency Management 
        Agency; and
          (3) other Federal, State, and local disaster planning 
        offices, as necessary.
  (e) Resources.--The Administrator shall ensure that the disaster 
planning officer has adequate resources to carry out the 
responsibilities described in subsection (c).
Sec. 21320. Disaster response plan
  (a) Definition of State.--In this section, the term ``State'' means a 
State of the United States, the District of Columbia, Puerto Rico, the 
Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and 
any territory or possession of the United States.
  (b) Plan.--
          (1) In general.--The Administrator shall develop, implement, 
        and maintain a comprehensive written disaster response plan.
          (2) Contents.--The disaster response plan shall include the 
        following:
                  (A) For each Administration region, a description of 
                the disasters most likely to occur in the 
                Administration region.
                  (B) For each disaster described under subparagraph 
                (A)--
                          (i) an assessment of the disaster;
                          (ii) an assessment of the demand for 
                        Administration assistance most likely to occur 
                        in response to the disaster;
                          (iii) an assessment of the needs of the 
                        Administration, with respect to such resources 
                        as information technology, telecommunications, 
                        human resources, and office space, to meet the 
                        demand referred to in clause (ii); and
                          (iv) guidelines pursuant to which the 
                        Administrator will coordinate with other 
                        Federal agencies and with State and local 
                        authorities to best respond to the demand 
                        described in clause (ii) and to best use the 
                        resources referred to in that clause.
  (c) Plan Revision.--The Administrator shall update the disaster 
response plan--
          (1) annually; and
          (2) following any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title.
  (d) Required Knowledge.--The Administrator shall carry out 
subsections (b) and (c) through an individual with substantial 
knowledge in the field of disaster readiness and emergency response.
  (e) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on the disaster response plan.
Sec. 21321. Coordination of disaster assistance programs with FEMA
  (a) In General.--The Administrator shall ensure that the disaster 
assistance programs of the Administration are coordinated, to the 
maximum extent practicable, with the disaster assistance programs of 
the Federal Emergency Management Agency.
  (b) Regulations.--
          (1) In general.--The Administrator, in consultation with the 
        Administrator of the Federal Emergency Management Agency, shall 
        establish regulations to ensure that each application for 
        disaster assistance is submitted as quickly as practicable to 
        the Administration or directed to the appropriate agency under 
        the circumstances.
          (2) Revision.--The regulations shall be revised annually.
  (c) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on the regulations under 
subsection (b).
Sec. 21322. Plans to secure sufficient office space
  (a) In General.--The Administrator shall develop long-term plans to 
secure sufficient office space to accommodate an expanded workforce in 
times of disaster.
  (b) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on the plans developed under 
subsection (a).
Sec. 21323. Bond guarantees in procurements relating to a major 
                    disaster
  (a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement 
relating to a major disaster, the Administrator may, on such terms and 
conditions as the Administrator may prescribe, guarantee and enter into 
commitments to guarantee a surety against loss resulting from a breach 
of the terms of a bid bond, payment bond, performance bond, or bonds 
ancillary thereto, by a principal on any total work order or contract 
amount at the time of bond execution that does not exceed $5,000,000.
  (b) Increase in Amount.--On request of the head of any Federal agency 
(other than the Administration) involved in reconstruction efforts in 
response to a major disaster, the Administrator may guarantee and enter 
into a commitment to guarantee a surety against loss under subsection 
(a) on any total work order or contract amount at the time of bond 
execution that does not exceed $10,000,000.
  (c) Limitation on Use of Other Funds.--The Administrator may carry 
out this section only with amounts appropriated in advance specifically 
to carry out this section.
Sec. 21324. Civil penalty
  A person that wrongfully misapplies the proceeds of a loan made under 
the disaster loan program shall be liable to the Administrator for a 
civil penalty in the amount that is equal to 1.5 times the original 
principal amount of the loan.

            CHAPTER 215--PRIVATE DISASTER ASSISTANCE PROGRAM

Sec.
21501.  Definitions.
21502.  Program.
21503.  Use of loans.
21504.  Online applications.
21505.  Maximum amounts.
21506.  Terms and conditions.
21507.  Lenders.
21508.  Fees.
21509.  Documentation.
21510.  Purchase of loans.
21511.  Regulations.
21512.  Authorization of appropriations.
Sec. 21501. Definitions
  In this chapter:
          (1) Eligible individual.--The term ``eligible individual'' 
        means an individual who is eligible for disaster assistance 
        under section 21301 of this title relating to a major disaster 
        relating to which the Administrator declares eligibility for 
        additional disaster assistance under section 21308 of this 
        title.
          (2) Major disaster area.--The term ``major disaster area'' 
        means an area for which the President declares a major disaster 
        relating to which the Administrator declares eligibility for 
        additional disaster assistance under section 21308 of this 
        title, during the period of the major disaster declaration.
          (3) Qualified private lender.--The term ``qualified private 
        lender'' means a privately-owned bank or other lending 
        institution that--
                  (A) is not a preferred lender; and
                  (B) the Administrator determines meets the criteria 
                established under section 20511 of this title.
          (4) Small business concern.--The term ``small business 
        concern'' means a small business concern (as defined in section 
        10101 or 30101 of this title).
Sec. 21502. Program
  The Administrator shall carry out a program, to be known as the 
private disaster assistance program, under which the Administrator may 
guarantee timely payment of principal and interest, as scheduled, on 
any loan made to a small business concern located in a major disaster 
area or to an eligible individual.
Sec. 21503. Use of loans
  A loan guaranteed by the Administrator under this chapter may be used 
for any purpose authorized under chapter 213.
Sec. 21504. Online applications
  (a) Establishment of Process.--The Administrator may establish, 
directly or through an agreement with another entity, an online 
application process for loans guaranteed under this chapter.
  (b) Other Federal Assistance.--The Administrator may coordinate with 
the head of any other appropriate Federal agency so that any 
application submitted through an online application process established 
under this section may be considered for any other Federal assistance 
program for disaster relief.
  (c) Consultation.--In establishing an online application process 
under this section, the Administrator shall consult with appropriate 
persons from the public and private sectors, including private lenders.
Sec. 21505. Maximum amounts
  (a) Guarantee Percentage.--The Administrator may guarantee not more 
than 85 percent of a loan under this chapter.
  (b) Loan Amount.--The maximum amount of a loan guaranteed under this 
chapter shall be $2,000,000.
Sec. 21506. Terms and conditions
  A loan guaranteed under this chapter shall be made under the same 
terms and conditions as a loan under chapter 213.
Sec. 21507. Lenders
  (a) In General.--
          (1) Loans to an eligible individual.--A loan guaranteed under 
        this chapter made to an eligible individual may be made by a 
        preferred lender.
          (2) Loans to a small business concern.--A loan guaranteed 
        under this chapter made to a small business concern may be made 
        by a qualified private lender or by a preferred lender that 
        also makes loans to eligible individuals.
  (b) Compliance.--If the Administrator determines that a preferred 
lender knowingly failed to comply with the underwriting standards for 
loans guaranteed under this chapter or violated the terms of the 
standard operating procedure agreement between the preferred lender and 
the Administrator, the Administrator shall do one or both of the 
following:
          (1) Exclude the preferred lender from participating in the 
        private disaster assistance program.
          (2) Exclude the preferred lender from participating in the 
        preferred lender program for a period of not more than 5 years.
Sec. 21508. Fees
  (a) In General.--The Administrator shall not collect a guarantee fee 
under this chapter.
  (b) Origination Fee.--The Administrator may pay a qualified private 
lender or preferred lender an origination fee for a loan guaranteed 
under this chapter in an amount agreed on in advance between the 
qualified private lender or preferred lender and the Administrator.
Sec. 21509. Documentation
  (a) In General.--A qualified private lender or preferred lender may 
use its own loan documentation for a loan guaranteed by the 
Administrator under this chapter, to the extent authorized by the 
Administrator.
  (b) Not Part of Qualification Criteria.--The ability of a lender to 
use its own loan documentation for a loan guaranteed under this chapter 
shall not be considered part of the criteria for becoming a qualified 
private lender under the regulations promulgated under section 21511 of 
this title.
Sec. 21510. Purchase of loans
  The Administrator may enter into an agreement with a qualified 
private lender or preferred lender to purchase any loan guaranteed 
under this chapter.
Sec. 21511. Regulations
  The Administrator shall promulgate regulations establishing permanent 
criteria for qualified private lenders.
Sec. 21512. Authorization of appropriations
  (a) In General.--Amounts necessary to carry out this chapter shall be 
made available from amounts appropriated to the Administration to carry 
out chapter 213.
  (b) Authority To Reduce Interest Rates and Other Terms and 
Conditions.--Funds appropriated to the Administration to carry out this 
chapter may be used by the Administrator to meet the loan terms and 
conditions specified in section 21506 of this title.

           CHAPTER 217--IMMEDIATE DISASTER ASSISTANCE PROGRAM

Sec.
21701.  Definition of program.
21702.  Program.
21703.  Eligibility.
21704.  Use of proceeds.
21705.  Loan terms.
21706.  Approval or disapproval.
Sec. 21701. Definition of program
  In this chapter, the term ``program'' means the immediate disaster 
assistance program established under section 21702 of this title.
Sec. 21702. Program
  The Administrator shall carry out a program, to be known as the 
immediate disaster assistance program, under which the Administrator 
participates on a deferred (guaranteed) basis in 85 percent of the 
balance of the financing outstanding at the time of disbursement of the 
loan if the balance is less than or equal to $25,000 for business 
concerns affected by a disaster.
Sec. 21703. Eligibility
  To receive a loan guarantee under section 21702 of this title, an 
applicant shall apply for, and meet basic eligibility standards for, a 
loan under chapter 213 or 215.
Sec. 21704. Use of proceeds
  A business concern that receives a loan under chapter 213 or 215 
shall use the proceeds of the loan to repay all loans guaranteed under 
section 21702 of this title, if any, before using the proceeds for any 
other purpose.
Sec. 21705. Loan terms
  (a) No Prepayment Penalty.--There shall be no prepayment penalty on a 
loan guaranteed under section 21702 of this title.
  (b) Repayment.--A business concern that receives a loan guaranteed 
under section 21702 of this title and that is disapproved for a loan 
under chapter 213 or 215 shall repay the loan guaranteed under section 
21702 of this title not later than the date established by the 
Administrator, which shall not be earlier than 10 years after the date 
on which the loan guaranteed under section 21702 of this title is 
disbursed.
Sec. 21706. Approval or disapproval
  The Administrator shall ensure that each applicant for a loan under 
the program receives a decision approving or disapproving the 
application within 36 hours after the Administrator receives the 
application.

  CHAPTER 219--EXPEDITED DISASTER ASSISTANCE BUSINESS LOAN GUARANTEE 
                                PROGRAM

Sec.
21901.  Definition of program.
21902.  Program.
21903.  Consultation.
21904.  Regulations.
Sec. 21901. Definition of program
  In this chapter, the term ``program'' means the expedited disaster 
assistance business loan guarantee program established under section 
21902 of this title.
Sec. 21902. Program
  The Administrator shall establish and implement an expedited disaster 
assistance business loan guarantee program under which the 
Administrator may, on an expedited basis, guarantee timely payment of 
principal and interest, as scheduled on any loan made to an eligible 
small business concern under section 21308 of this title.
Sec. 21903. Consultation
  In establishing the program, the Administrator shall consult with--
          (1) appropriate personnel (including district office 
        personnel) of the Administration;
          (2) appropriate technical assistance providers (including 
        small business development centers);
          (3) appropriate lenders and credit unions; and
          (4) the Committee on Small Business and Entrepreneurship of 
        the Senate and Committee on Small Business of the House of 
        Representatives.
Sec. 21904. Regulations
  (a) In General.--The Administrator shall issue regulations 
establishing and implementing the program in accordance with this 
chapter.
  (b) Contents.--The regulations shall--
          (1) identify whether appropriate uses of funds under the 
        program may include--
                  (A) paying employees;
                  (B) paying bills and other financial obligations;
                  (C) making repairs;
                  (D) purchasing inventory;
                  (E) restarting or operating a small business concern 
                in the community in which the small business concern 
                was conducting operations prior to the applicable major 
                disaster or in a neighboring area in the disaster area; 
                or
                  (F) covering additional costs until the small 
                business concern is able to obtain funding through 
                insurance claims, Federal assistance programs, or other 
                sources; and
          (2) set the terms and conditions of any loan made under the 
        program.
  (c) Terms and Conditions.--A loan guaranteed by the Administrator 
under the program--
          (1) shall be for not more than $150,000;
          (2) shall be a short-term loan, not to exceed 180 days, 
        except that the Administrator may extend the term as the 
        Administrator determines to be appropriate on a case-by-case 
        basis;
          (3) shall have an interest rate not to exceed 300 basis 
        points above the interest rate established by the Board of 
        Governors of the Federal Reserve System that one bank charges 
        another for reserves that are lent on an overnight basis on the 
        date on which the loan is made;
          (4) shall have no prepayment penalty;
          (5) may be made only to a borrower that meets the 
        requirements for a loan under chapter 213;
          (6) may be refinanced as part of any subsequent disaster 
        assistance provided under chapter 213;
          (7) may receive expedited loss verification and loan 
        processing, if the applicant--
                  (A) is a major source of employment in the disaster 
                area (which shall be determined in the same manner as 
                under section 21303(e)(2) of this title); or
                  (B) is vital to recovery efforts in the region 
                (including providing debris removal services, 
                manufactured housing, or building materials); and
          (8) shall be subject to such additional terms as the 
        Administrator determines to be appropriate.

                DIVISION E--BUSINESS DEVELOPMENT PROGRAM

                    CHAPTER 231--GENERAL PROVISIONS

Sec.
23101.  Definitions.
23102.  Establishment of business development program.
23103.  Unemployed or low-income individuals.
23104.  Restrictions on activities of Administration employees.
23105.  Encouragement of subcontracts.
23106.  Federal contracts, subcontracts, and deposits.
23107.  Business opportunity specialists.
23108.  Requests for investigation.
Sec. 23101. Definitions
  In this division:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Minority 
        Small Business and Capital Ownership Development.
          (2) Business activity target.--The term ``business activity 
        target'' means a target contained in a business plan for 
        contracts awarded other than through the program.
          (3) Business opportunity specialist.--The term ``business 
        opportunity specialist'' means an Administration employee 
        responsible for providing business development assistance to a 
        program participant.
          (4) Business plan.--The term ``business plan'' means the 
        business plan of a program participant under section 23318 of 
        this title.
          (5) Director.--The term ``Director'' means the Director of 
        the Division.
          (6) Disadvantaged owner.--The term ``disadvantaged owner'' 
        means an individual on whom eligibility is based for 
        participation in the business development program.
          (7) Division.--The term ``Division'' means the Division of 
        Program Certification and Eligibility established by section 
        10308 of this title.
          (8) Economically disadvantaged indian tribe.--The term 
        ``economically disadvantaged Indian tribe'' means an Indian 
        tribe that the Administrator determines to be economically 
        disadvantaged based on consideration of available information 
        such as--
                  (A) the per capita income of members of the Indian 
                tribe, excluding judgment awards;
                  (B) the percentage of the local Indian population 
                below the poverty level; and
                  (C) the Indian tribe's access to capital markets.
          (9) Executive agency.--The term ''executive agency'' has the 
        meaning given the term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
          (10) Graduate.--The term ``graduate'', with reference to a 
        program participant, means to graduate the program participant 
        from the program under section 23320 of this title.
          (11) Indian tribe.--The term ``Indian tribe'' means an Indian 
        tribe, band, nation, or other organized group or community of 
        Indians, including any Alaska Native village or regional or 
        village corporation (within the meaning of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1601 et seq.)) that--
                  (A) is recognized as eligible for the special 
                programs and services provided by the United States to 
                Indians because of their status as Indians; or
                  (B) is recognized as such by the State in which the 
                Indian tribe, band, nation, group, or community 
                resides.
          (12) Program.--The term ``program'' means the business 
        development program.
          (13) Program participant.--The term ``program participant'' 
        means a small business concern that is participating in the 
        program.
          (14) Program participation period.--The term ``program 
        participation period'', with respect to a program participant, 
        means the period of program participation applicable to the 
        program participant under section 23329 of this title.
          (15) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--
                  (A) In general.--The term ``small business concern 
                owned and controlled by socially and economically 
                disadvantaged individuals'' means a small business 
                concern--
                          (i) not less than 51 percent of which is 
                        unconditionally owned by--
                                  (I) one or more socially and 
                                economically disadvantaged individuals;
                                  (II) an economically disadvantaged 
                                Indian tribe (or a wholly owned 
                                business entity of an economically 
                                disadvantaged Indian tribe); or
                                  (III) an economically disadvantaged 
                                Native Hawaiian organization; and
                          (ii) the management and daily business 
                        operations of which are controlled by one or 
                        more--
                                  (I) socially and economically 
                                disadvantaged individuals;
                                  (II) members of an economically 
                                disadvantaged Indian tribe; or
                                  (III) Native Hawaiian organizations.
                  (B) Size determination for indian tribes.--In 
                determining the size of a concern owned by an 
                economically disadvantaged Indian tribe (or a wholly 
                owned business entity of an economically disadvantaged 
                Indian tribe) for purposes of subparagraph (A), the 
                concern's size shall be independently determined 
                without regard to its affiliation with the Indian 
                tribe, any entity of the tribal government, or any 
                other business enterprise owned by the Indian tribe, 
                unless the Administrator determines that one or more 
                such tribally owned business concerns have obtained, or 
                are likely to obtain, a substantial unfair competitive 
                advantage within an industry category.
          (16) Socially and economically disadvantaged individual.--
                  (A) In general.--The term ``socially and economically 
                disadvantaged individual'' means a member of a group of 
                socially disadvantaged individuals whose ability to 
                compete in the free enterprise system has been impaired 
                due to diminished capital and credit opportunities as 
                compared with others in the same business area who are 
                not socially disadvantaged.
                  (B) Determination of degree of diminished credit and 
                capital opportunities.--In determining the degree of 
                diminished credit and capital opportunities, the 
                Administrator shall consider the assets and net worth 
                of a socially disadvantaged individual.
                  (C) Net worth.--In computing personal net worth for 
                purposes of this paragraph, there shall be excluded--
                          (i) the value of investments that 
                        disadvantaged owners have in their concern, 
                        except that the value of such investments shall 
                        be taken into account when comparing the 
                        concern to other concerns in the same business 
                        area that are owned by other than socially 
                        disadvantaged persons; and
                          (ii) the equity that disadvantaged owners 
                        have in their primary personal residences, 
                        except that any portion of such equity that is 
                        attributable to unduly excessive withdrawals 
                        from a program participant or a concern 
                        applying for program participation shall be 
                        taken into account.
          (17) Socially disadvantaged individual.--
                  (A) In general.--The term ``socially disadvantaged 
                individual'' means a member of a group of individuals 
                who have been subjected to racial or ethnic prejudice 
                or cultural bias because of their identity as members 
                of the group without regard to their individual 
                qualities.
                  (B) Determination.--
                          (i) In general.--A determination under 
                        subparagraph (A) with respect to whether a 
                        group has been subjected to prejudice or bias 
                        shall be made by the Administrator after 
                        consultation with the Associate Administrator 
                        for Minority Small Business and Capital 
                        Ownership Development.
                          (ii) Nondelegability.--The authority of the 
                        Administrator under clause (i) may not be 
                        delegated.
          (18) Terminate.--The term ``terminate'', with reference to a 
        program participant, means to suspend or totally deny 
        assistance to a program participant under the program, prior to 
        the graduation of the program participant or prior to the 
        expiration of the program participant's program participation 
        period, under section 23321 of this title.
Sec. 23102. Establishment of business development program
  There is established within the Administration the business 
development program.
Sec. 23103. Unemployed or low-income individuals
  The program shall be used to--
          (1) assist in the establishment, preservation, and 
        strengthening of small business concerns and improve the 
        managerial skills employed in small business concerns, with 
        special attention to, and particular emphasis on the 
        preservation or establishment of, small business concerns that 
        are--
                  (A) located in urban or rural areas with high 
                proportions of unemployed or low-income individuals; or
                  (B) owned by low-income individuals; and
          (2) mobilize for those objectives private as well as public 
        managerial skills and resources.
Sec. 23104. Restrictions on activities of Administration employees
  (a) Activities and Transactions Relating to Ownership of a Program 
Participant.--
          (1) In general.--A person within the employ of the 
        Administration shall not, during the term of such employment 
        and for a period of 2 years after the employment has been 
        terminated, engage in any activity or transaction described in 
        paragraph (2) with respect to any program participant during 
        the person's term of employment, if the person participated 
        personally (directly or indirectly)--
                  (A) in decisionmaking responsibilities relating to 
                the program participant; or
                  (B) with respect to the administration of any 
                assistance provided to program participants generally 
                under the program.
          (2) Activities and transactions.--The activities and 
        transactions referred to in paragraph (1) are--
                  (A) the buying, selling, or receiving (except by 
                inheritance) of any legal or beneficial ownership of 
                stock or any other ownership interest or the right to 
                acquire any such interest;
                  (B) the entering into or execution of any written or 
                oral agreement (whether or not legally enforceable) to 
                purchase or otherwise obtain any right or interest 
                described in subparagraph (A); and
                  (C) the receipt of any other benefit or right that 
                may be an incident of ownership.
          (3) Annual certification.--
                  (A) In general.--An employee described in 
                subparagraph (B) shall annually submit to the 
                Administrator a written certification regarding 
                compliance with this section.
                  (B) Employee.--The employees referred to in 
                subparagraph (A) are--
                          (i) a regional administrator;
                          (ii) a district director;
                          (iii) the Associate Administrator;
                          (iv) an employee whose principal duties 
                        relate to the award of contracts or the 
                        provision of other assistance under the 
                        program; and
                          (v) such other employees as the Administrator 
                        may designate.
          (4) Civil penalties.--
                  (A) In general.--An employee or former employee of 
                the Administration who violates this section shall be 
                subject to a civil penalty, assessed by the Attorney 
                General, that shall not exceed 300 percent of the 
                maximum amount of gain that the employee realized or 
                could have realized as a result of engaging in the 
                activity and transaction prohibited by paragraph (1).
                  (B) False certification.--In addition to any other 
                remedy or sanction provided for under law (including a 
                regulation), a person who makes a false certification 
                under paragraph (3)(A) shall be subject to a civil 
                penalty under section 3802 of title 31.
  (b) Political Activities and Affiliations.--
          (1) Prohibition.--An employee of the Administration who has 
        authority to take, direct others to take, recommend, or approve 
        any action with respect to any program or activity under the 
        program shall not, with respect to any such action, exercise or 
        threaten to exercise that authority on the basis of the 
        political activity or affiliation of any person.
          (2) Reporting of solicitation to violate.--An employee of the 
        Administration whose participation in a violation of paragraph 
        (1) is directed or solicited shall expeditiously report the 
        direction or solicitation to the Inspector General of the 
        Administration.
          (3) Disciplinary action.--An employee of the Administration 
        who willfully and knowingly violates paragraph (1) or (2) shall 
        be subject to disciplinary action, which may consist of 
        separation from service, reduction in grade, suspension, or 
        reprimand.
          (4) Applicability.--Paragraphs (1) and (2) do not apply to an 
        action taken as a penalty or other enforcement of a violation 
        of any law (including a regulation) prohibiting or restricting 
        political activity.
          (5) Other prohibitions, measures, and liabilities.--
        Paragraphs (1) to (4) are in addition to, and not in lieu of, 
        any other prohibitions, measures, or liabilities that may arise 
        under any other provision of law.
Sec. 23105. Encouragement of subcontracts
  (a) In General.--The Administrator shall encourage the placement of 
subcontracts by businesses with small business concerns located in 
areas of high concentration of unemployed or low-income individuals and 
with program participants.
  (b) Incentives and Assistance.--The Administrator may provide 
incentives and assistance to a business to aid in the training and 
upgrading of potential program participant subcontractors.
Sec. 23106. Federal contracts, subcontracts, and deposits
  The Administrator shall take such steps as are necessary and 
appropriate, in coordination and cooperation with the heads of other 
Federal agencies, to ensure that contracts, subcontracts, and deposits 
made by the Federal Government or with programs aided with Federal 
funds are placed in such a way as to further the purposes of the 
program.
Sec. 23107. Business opportunity specialists
  (a) Position.--In each Administration field office responsible for 
assisting one or more program participants there shall be a position 
designated as a business opportunity specialist.
  (b) Adequate Number.--To the maximum extent practicable, the 
Administrator shall ensure that an adequate number of business 
opportunity specialists are assigned to each district office to carry 
out the responsibilities of the program and to assist program 
participants.
  (c) Training.--The Administrator shall take such actions as are 
appropriate to ensure that any person employed as a business 
opportunity specialist receives adequate periodic training to ensure 
that the employee is capable of assisting program participants in fully 
utilizing the program and meeting the requirements of this subtitle and 
subtitle I.
Sec. 23108. Requests for investigation
  The Committee on Small Business and Entrepreneurship of the Senate or 
the Committee on Small Business of the House of Representatives may 
request that the Office of the Inspector General of the Administration 
conduct an investigation of any activity conducted under the program. 
Not later than 30 days after the receipt of such a request, the 
Inspector General shall inform the committee, in writing, of the 
disposition of the request.

                        CHAPTER 233--CONTRACTING

Sec.
23301.  Contracting authority.
23302.  Contracting procedure.
23303.  Fair market price.
23304.  Award after completion of program participation period.
23305.  Award through competition.
23306.  Participation by program participants in negotiation of 
          contracts to be awarded noncompetitively.
23307.  Sole source award.
23308.  Annual certification regarding ownership and control.
23309.  Annual submission regarding economic disadvantage.
23310.  Review of economic disadvantage and withdrawal of assets.
23311.  Hearing on the record.
23312.  Program participant capability.
23313.  Percentages of contract performance by program participants.
23314.  Wholesalers and retailers.
23315.  Reporting by program participants to business opportunity 
          specialists.
23316.  Transfer of ownership or control.
23317.  Assistance for program participants.
23318.  Business plans.
23319.  Denial of further assistance.
23320.  Graduation.
23321.  Termination.
23322.  Evaluation of eligibility.
23323.  Limitation of eligibility to one small business concern.
23324.  Limitation on denial of admission into program based on 
          unavailability of specific contract opportunities.
23325.  Certification decision.
23326.  Review of new entrants into the program.
23327.  Program stages.
23328.  Attainment of business activity targets.
23329.  Program participation period.
23330.  Collection of data on program operations.
23331.  Approval of contract options and modifications.
23332.  Orderly and efficient management of program.
23333.  Participation in federally funded programs and projects.
Sec. 23301. Contracting authority
  (a) In General.--When the Administrator determines that such action 
is necessary or appropriate, the Administrator shall--
          (1) enter into contracts with procuring agencies obligating 
        the Administrator to furnish articles, equipment, supplies, 
        services, or materials to the Government or to perform 
        construction work for the Government; and
          (2) arrange for the performance of such contracts by 
        negotiating or otherwise letting a subcontract to one or more 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals--
                  (A) for the manufacture, supply, assembly of the 
                articles, equipment, supplies, materials, or parts 
                thereof, for the construction work, for the services, 
                or for servicing or processing in connection with the 
                manufacturing, construction, or services; or
                  (B) for such management services as are necessary to 
                enable the Administrator to perform the contract.
  (b) Construction Subcontracts.--To the maximum extent practicable, 
construction subcontracts awarded by the Administrator under the 
program shall be awarded within the county or State in which the work 
is to be performed.
  (c) Inapplicability to Certain Procurements.--The requirements of the 
program do not apply to--
          (1) a procurement under conditions described in--
                  (A) paragraph (2), (3), (4), (5), or (7) of section 
                303(c) of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(c)); or
                  (B) paragraph (2), (3), (4), (5), or (7) of section 
                2304(c) of title 10; or
          (2) a procurement by an executive agency for which the head 
        of the executive agency makes a determination in writing, after 
        consultation with the Administrator and the Administrator for 
        Federal Procurement Policy, that it is not appropriate or 
        reasonable to publish a notice before issuing a solicitation.
Sec. 23302. Contracting procedure
  (a) In General.--If the Administrator certifies to a contracting 
officer of a procuring agency that the Administrator is competent and 
responsible to perform a specific Government procurement contract to be 
let by the contracting officer, the contracting officer may let the 
contract to the Administrator on such terms and conditions as may be 
agreed on between the Administrator and the contracting officer.
  (b) Failure To Agree.--
          (1) In general.--If the Administrator and the contracting 
        officer fail to agree on a procurement contract--
                  (A) not later than 5 days after the date on which the 
                Administrator is notified of the contracting officer's 
                adverse decision, the Administrator may notify the 
                contracting officer of the intent to appeal the adverse 
                decision; and
                  (B) not later than 15 days after that date, the 
                Administrator shall file a written request for a 
                reconsideration of the adverse decision with the head 
                of the procuring agency.
          (2) Adverse decision.--For the purposes of paragraph (1)(A), 
        a contracting officer's adverse decision includes--
                  (A) a decision not to make available for award under 
                the program a particular procurement requirement; and
                  (B) a failure to agree on the terms and conditions of 
                a contract to be awarded noncompetitively under the 
                program.
          (3) Suspension of action.--On receipt of a notice of intent 
        to appeal under paragraph (1)(A), the agency head shall suspend 
        further action regarding the procurement until a written 
        decision on the Administrator's request for reconsideration is 
        issued by the agency head, unless the contracting officer makes 
        a written determination that urgent and compelling 
        circumstances that significantly affect interests of the United 
        States will not permit waiting for a reconsideration of the 
        adverse decision.
          (4) Denial of request for reconsideration.--If the 
        Administrator's request for reconsideration is denied, the 
        procuring agency head shall specify the reasons why the small 
        business concern selected by the Administrator to perform the 
        procurement requirement was determined to be incapable of 
        performing the procurement requirement, and the findings 
        supporting the determination, which shall be made a part of the 
        contract file for the requirement.
Sec. 23303. Fair market price
  (a) In General.--A contract may not be awarded under the program if 
the award of the contract would result in a cost to the procuring 
agency that exceeds a fair market price.
  (b) Determination.--
          (1) In general.--The fair market price under subsection (a) 
        shall be determined by the procuring agency in accordance with 
        this subsection.
          (2) New procurement.--
                  (A) In general.--The estimate of a current fair 
                market price for a new procurement requirement, or a 
                requirement that does not have a satisfactory 
                procurement history, shall be derived from a price or 
                cost analysis.
                  (B) Factors.--A price or cost analysis--
                          (i) may take into account prevailing market 
                        conditions, commercial prices for similar 
                        products or services, or data obtained from any 
                        other Federal agency; and
                          (ii) shall consider such cost or pricing data 
                        as may be timely submitted by the 
                        Administrator.
          (3) Procurements with satisfactory procurement history.--
                  (A) In general.--The estimate of a current fair 
                market price for a procurement requirement that has a 
                satisfactory procurement history shall be based on 
                recent award prices adjusted to ensure comparability.
                  (B) Adjustment.--An adjustment under subparagraph (A) 
                shall take into account differences in quantities, 
                performance times, plans, specifications, 
                transportation costs, packaging and packing costs, 
                labor and materials costs, overhead costs, and any 
                other additional costs that are considered appropriate.
  (c) Estimation Method.--
          (1) In general.--On the request of the Administrator, the 
        procuring agency shall promptly submit to the Administrator a 
        written statement detailing the method used by the procuring 
        agency to estimate the current fair market price for the 
        contract, identifying the information, studies, analyses, and 
        other data used by the procuring agency.
          (2) Nondisclosure.--The procuring agency's estimate of the 
        current fair market price and any supporting data furnished to 
        the Administrator shall not be disclosed to any potential 
        offeror other than the Administrator.
  (d) Protest.--A small business concern selected by the Administrator 
to perform or negotiate a contract to be let under the program may 
request the Administrator to protest the procuring agency's estimate of 
the fair market price for the contract.
Sec. 23304. Award after completion of program participation period
  The Administrator shall make an award to a small business concern 
owned and controlled by socially and economically disadvantaged 
individuals that has completed its program participation period if--
          (1) the contract will be awarded as a result of an offer 
        (including price) submitted in response to a published 
        solicitation relating to a competition conducted under section 
        23305 of this title; and
          (2) the prospective contract awardee was a program 
        participant eligible for award of the contract on the date 
        specified for receipt of offers contained in the contract 
        solicitation.
Sec. 23305. Award through competition
  (a) In General.--Except as provided in subsections (b) and (c), a 
contract opportunity offered for award under the program shall be 
awarded on the basis of competition restricted to eligible program 
participants if--
          (1) there is a reasonable expectation that--
                  (A) at least 2 eligible program participants will 
                submit offers; and
                  (B) an award can be made at a fair market price; and
          (2) the anticipated award price of the contract (including 
        options) will exceed--
                  (A) $5,000,000, in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $3,000,000, in the case of any other contract 
                opportunity.
  (b) Restricted Competition for Smaller Contracts.--
          (1) In general.--The Associate Administrator may approve a 
        request from a Federal agency to award a contract opportunity 
        under the program on the basis of a competition restricted to 
        eligible program participants even if the anticipated award 
        price is not expected to exceed the dollar amounts specified in 
        subsection (a)(2).
          (2) Approvals.--Approvals under paragraph (1) shall be 
        granted only on a limited basis.
          (3) Nondelegability.--The authority of the Associate 
        Administrator under paragraph (1) may not be delegated.
  (c) Program Participants Owned and Controlled by an Economically 
Disadvantaged Indian Tribe.--Subsection (a) does not preclude the award 
of a sole source contract under section 23307 of this title, without 
regard to the anticipated award price of the contract, to a program 
participant that is owned and controlled by an economically 
disadvantaged Indian tribe.
  (d) Program Participants Owned and Controlled by Native Hawaiian 
Organizations.--For purposes of contracting with agencies of the 
Department of Defense, subsection (a) does not preclude the award of a 
sole source contract under section 23307 of this title, without regard 
to the anticipated award price of the contract, to a program 
participant that is owned and controlled by a Native Hawaiian 
organization.
Sec. 23306. Participation by program participants in negotiation of 
                    contracts to be awarded noncompetitively
  A program participant selected by the Administrator to perform a 
contract to be let noncompetitively under the program shall, when 
practicable, participate in any negotiation of the terms and conditions 
of the contract.
Sec. 23307. Sole source award
  (a) In General.--The Administrator shall award a sole source contract 
under the program to a program participant recommended by the Federal 
agency offering the contract opportunity if--
          (1) the program participant is determined to be a responsible 
        contractor with respect to performance of the contract;
          (2) the award of the contract would be consistent with the 
        program participant's business plan; and
          (3) the award of the contract would not result in the program 
        participant's exceeding the requirements established by section 
        23328 of this title.
  (b) Equitable Geographic Distribution.--To the maximum extent 
practicable, the Administrator shall promote the equitable geographic 
distribution of sole source contracts awarded under this section.
Sec. 23308. Annual certification regarding ownership and control
  A program participant shall annually certify that the program 
participant meets the requirements of section 23101(15) of this title 
regarding ownership and control.
Sec. 23309. Annual submission regarding economic disadvantage
  A program participant shall annually submit to the Administrator--
          (1) a personal financial statement for each disadvantaged 
        owner;
          (2) a record of all payments made by the program participant 
        to each of its disadvantaged owners or to any person or entity 
        affiliated with its disadvantaged owners; and
          (3) such other information as the Administrator considers 
        necessary to make the determinations required by paragraphs (8) 
        and (16) of section 23101 of this title and section 23310 of 
        this title.
Sec. 23310. Review of economic disadvantage and withdrawal of assets
  (a) Economic Disadvantage.--If, on the basis of information provided 
by a program participant under section 23309 of this title or 
information otherwise obtained by the Administrator, the Administrator 
has reason to believe that the standards to establish economic 
disadvantage under section 23101(15) of this title are not met, the 
Administrator shall conduct a review to determine whether the program 
participant and its disadvantaged owners continue to be impaired in 
their ability to compete in the free enterprise system due to 
diminished capital and credit opportunities as compared with others in 
the same business area who are not socially disadvantaged.
  (b) Withdrawal of Assets.--
          (1) In general.--If, on the basis of information provided by 
        a program participant under section 23309 of this title or 
        information otherwise obtained by the Administrator, the 
        Administrator has reason to believe that the amount of funds or 
        other assets withdrawn from a program participant for the 
        personal benefit of its disadvantaged owners or any person or 
        entity affiliated with its disadvantaged owners may have been 
        unduly excessive, the Administrator shall conduct a review to 
        determine whether the withdrawal of funds or other assets was 
        detrimental to the achievement of the targets, objectives, and 
        goals contained in the program participant's business plan.
          (2) Termination or requirement to reinvest assets.--If the 
        Administrator determines in a review under paragraph (1) that 
        funds or other assets have been withdrawn to the detriment of 
        the program participant's business, the Administrator shall--
                  (A) initiate a proceeding to terminate the program 
                participant under section 23321 of this title; or
                  (B) require an appropriate reinvestment of funds or 
                other assets and such other steps as the Administrator 
                considers necessary to ensure the protection of the 
                program participant.
Sec. 23311. Hearing on the record
  (a) Opportunity for Hearing.--Before taking an action described in 
subsection (b) with respect to a small business concern, the 
Administrator shall provide the small business concern an opportunity 
for a hearing on the record in accordance with chapter 5 of title 5.
  (b) Actions.--The actions referred to in subsection (a) are--
          (1) denial of admission to the program based on a 
        determination that--
                  (A) a small business concern is not a small business 
                concern owned and controlled by socially and 
                economically disadvantaged individuals under section 
                23101(15) of this title;
                  (B) one or more of the owners of a small business 
                concern is not a socially disadvantaged individual 
                under section 23101(17) of this title; or
                  (C) one or more of the owners of a small business 
                concern is not a socially and economically 
                disadvantaged individual under section 23101(16);
          (2) graduation under section 23320 of this title;
          (3) termination under section 23321 of this title; and
          (4) denial of a request to issue a waiver under section 
        23316(b) of this title.
  (c) Declination of Jurisdiction.--The administrative law judge 
selected to preside over a proceeding under this section shall decline 
to accept jurisdiction over any matter that--
          (1) does not, on its face, allege facts that, if proven to be 
        true, would warrant reversal or modification of the 
        Administrator's position;
          (2) is untimely filed;
          (3) is not filed in accordance with the rules of procedure 
        governing the proceeding; or
          (4) has been decided by or is the subject of an adjudication 
        before a court of competent jurisdiction over such matters.
  (d) Timing.--A proceeding under this section shall be completed and a 
decision rendered, insofar as practicable, not later than 90 days after 
a petition for a hearing is filed with the Office of Hearings and 
Appeals.
  (e) Final Decision.--A decision rendered under this section shall be 
the final decision of the Administrator and shall be binding on the 
Administrator and persons in the employ of the Administrator.
Sec. 23312. Program participant capability
  (a) Eligibility for Assistance.--
          (1) In general.--A small business concern shall not be 
        eligible for assistance under the program unless the 
        Administrator determines that with contract, financial, 
        technical, and management support, the small business concern--
                  (A) will be able to perform contracts that may be 
                awarded to the small business concern under 23304 of 
                this title; and
                  (B) has reasonable prospects for success in competing 
                in the private sector.
          (2) Period of operation.--
                  (A) In general.--The Administrator may prescribe a 
                minimum period of time during which a prospective 
                program participant must be in operation to meet the 
                eligibility requirements of paragraph (1) only if the 
                Administrator provides a waiver of the minimum period 
                as provided in subparagraph (B).
                  (B) Waiver.--The Administrator shall provide that any 
                requirement that the Administrator establishes 
                regarding the period of time during which a prospective 
                program participant must have been in operation may be 
                waived, and that a prospective program participant that 
                otherwise meets the requirements of paragraph (1) shall 
                be considered to have demonstrated reasonable prospects 
                for success, if--
                          (i) the individual or individuals upon whom 
                        eligibility is to be based have substantial and 
                        demonstrated business management experience;
                          (ii) the prospective program participant has 
                        demonstrated technical expertise to carry out 
                        its business plan with a substantial likelihood 
                        for success;
                          (iii) the prospective program participant has 
                        adequate capital to carry out its business 
                        plan;
                          (iv) the prospective program participant has 
                        a record of successful performance on contracts 
                        from governmental and nongovernmental sources 
                        in the primary industry category in which the 
                        prospective program participant is seeking 
                        certification; and
                          (v) the prospective program participant has, 
                        or can demonstrate its ability to timely 
                        obtain, the personnel, facilities, equipment, 
                        and any other requirements needed to perform 
                        such contracts.
  (b) Capability.--
          (1) Capability statements.--
                  (A) Annual submission.--A program participant shall 
                annually submit to the Administrator a capability 
                statement.
                  (B) Contents.--A capability statement shall--
                          (i) briefly describe the program 
                        participant's various contract performance 
                        capabilities; and
                          (ii) include the name and telephone number of 
                        the business opportunity specialist assigned 
                        the program participant.
                  (C) Statement categories.--The Administrator shall 
                categorize capability statements as--
                          (i) statements indicating capability 
                        primarily dependent on local contract support; 
                        and
                          (ii) statements indicating capability 
                        primarily requiring a national marketing 
                        effort.
                  (D) Dissemination of capability statements.--
                          (i) Local.--The Administrator shall 
                        disseminate capability statements described in 
                        subparagraph (C)(i) to appropriate contracting 
                        activities in the marketing area of each 
                        program participant, respectively.
                          (ii) National.--The Administrator shall 
                        disseminate capability statements described in 
                        subparagraph (C)(ii) to the directors of the 
                        offices of small and disadvantaged business 
                        utilization for the appropriate Federal 
                        agencies, who shall further distribute the 
                        capability statements to contracting activities 
                        with Federal agencies that may purchase the 
                        types of items or services described in the 
                        capability statements.
          (2) Contact by contracting activities.--A contracting 
        activity that receives a capability statement of a program 
        participant under paragraph (1)(D) shall, within 60 days after 
        receipt of the capability statement, contact the business 
        opportunity specialist identified in the capability statement 
        to indicate the number, type, and approximate dollar value of 
        contract opportunities that the contracting activity may award 
        over the succeeding 12-month period and that may be appropriate 
        to consider for award to program participants for which the 
        contracting activity has received capability statements.
          (3) Forecast of contract opportunities.--
                  (A) In general.--An executive agency that reports to 
                the Federal Procurement Data System contract actions 
                with an aggregate value in excess of $50,000,000 in any 
                fiscal year shall--
                          (i) prepare a forecast of expected contract 
                        opportunities or classes of contract 
                        opportunities for the next and succeeding 
                        fiscal years that program participants are 
                        capable of performing; and
                          (ii) periodically revise the forecast during 
                        the following year.
                  (B) Contents.--To the extent that the information is 
                available, a forecast under subparagraph (A) shall 
                specify--
                          (i) the approximate number of individual 
                        contract opportunities (and the number of 
                        opportunities within a class);
                          (ii) the approximate dollar value, or range 
                        of dollar values, for each contract opportunity 
                        or class of contract opportunities;
                          (iii) the anticipated time (by fiscal year 
                        quarter) for the issuance of a procurement 
                        request; and
                          (iv) the activity responsible for the award 
                        and administration of the contract.
                  (C) Submission of forecasts.--Not later than 10 days 
                after completion of a forecast under subparagraph (A), 
                the head of the executive agency that prepared the 
                forecast shall submit the forecast to--
                          (i) the director of the office of small and 
                        disadvantaged business utilization established 
                        under section 25109 of this title for the 
                        executive agency; and
                          (ii) the Administrator.
                  (D) Scope of information reported.--A forecast 
                submitted under subparagraph (C) may be limited to 
                classes of items and services for which there are 
                substantial annual purchases.
                  (E) Availability of forecasts.--A forecast submitted 
                under subparagraph (C) shall be available to small 
                business concerns.
Sec. 23313. Percentages of contract performance by program participants
  (a) In General.--A program participant may not be awarded a contract 
under the program unless the program participant agrees that--
          (1) in the case of a contract for services (except 
        construction), at least 50 percent of the cost of contract 
        performance incurred for personnel shall be expended for 
        employees of the program participant; and
          (2) in the case of a contract for procurement of supplies 
        (other than procurement from a regular dealer in such 
        supplies), the program participant will perform work for at 
        least 50 percent of the cost of manufacturing the supplies (not 
        including the cost of materials).
  (b) Change in Percentage.--
          (1) In general.--The Administrator may change the percentage 
        under paragraph (1) or (2) of subsection (a) if the 
        Administrator determines that a change is necessary to reflect 
        conventional industry practices among business concerns that 
        are below the numerical size standard for businesses in that 
        industry category.
          (2) Limitation.--A percentage established under paragraph (1) 
        may not differ from a percentage established under section 
        25113 of this title.
  (c) Other Categories of Contract.--
          (1) In general.--The Administrator shall by regulation 
        establish requirements similar to those specified in subsection 
        (a) to be applicable to--
                  (A) contracts for general and specialty construction; 
                and
                  (B) contracts for any other industry category not 
                otherwise subject to subsection (a).
          (2) Applicable percentage.--The percentage applicable to a 
        requirement under paragraph (1) shall be determined in 
        accordance with subsection (b), except that such a percentage 
        may not differ from a percentage established under section 
        25113 of this title for the same industry category.
Sec. 23314. Wholesalers and retailers
  (a) In General.--An otherwise responsible program participant that is 
described in subsection (b) shall not be denied the opportunity to 
submit and have considered its offer for a procurement contract for the 
supply of a product to be let under the program or section 25101 of 
this title solely because the program participant is other than the 
manufacturer or processor of the product to be supplied under the 
contract.
  (b) Requirements.--A program participant referred to in subsection 
(a) is a program participant that--
          (1) is primarily engaged in wholesale or retail trade;
          (2) is a small business concern under the numerical size 
        standard for the North American Industry Classification System 
        code assigned to the contract solicitation on which the offer 
        is being made;
          (3) is a regular dealer (as defined under section 11 of the 
        Act of June 30, 1936 (41 U.S.C. 43b) (commonly known as the 
        Walsh-Healey Act)) in the product to be offered the Government; 
        and
          (4) represents that the program participant will supply the 
        product of a domestic small business manufacturer or processor, 
        unless a waiver of this paragraph is granted--
                  (A) by the Administrator, after reviewing a 
                determination by the contracting officer that no small 
                business manufacturer or processor can reasonably be 
                expected to offer a product meeting the specifications 
                (including period for performance) required of an 
                offeror by the solicitation; or
                  (B) by the Administrator for a product (or class of 
                products), after determining that no small business 
                manufacturer or processor is available to participate 
                in the Federal procurement market.
Sec. 23315. Reporting by program participants to business opportunity 
                    specialists
  (a) In General.--A program participant shall semiannually submit to 
its assigned business opportunity specialist a report identifying each 
agent, representative, attorney, accountant, consultant, or other 
person (other than an employee of the program participant) that 
received compensation during the reporting period to assist the program 
participant in obtaining a Federal contract.
  (b) Contents.--A report under subsection (a) shall--
          (1) disclose the amount of compensation received by each 
        person identified in the report during the reporting period; 
        and
          (2) describe the activities performed for the compensation.
  (c) Review and Transmittal.--The business opportunity specialist 
shall promptly--
          (1) review the report; and
          (2) transmit the report to the Associate Administrator.
  (d) Suspicion of Improper Activity.--The Associate Administrator 
shall transmit to the Inspector General of the Administration any 
report that raises a suspicion of improper activity.
  (e) Failure To Submit Report.--A failure of a program participant to 
submit a report under subsection (a) shall constitute good cause for 
initiation of a termination proceeding under section 23321(b) of this 
title.
Sec. 23316. Transfer of ownership or control
  (a) In General.--
          (1) Performance by contract awardee.--A contract (including 
        options) awarded under the program shall be performed by the 
        program participant that is initially awarded the contract.
          (2) Relinquishment of ownership or control.--
                  (A) In general.--Notwithstanding paragraph (1), if 
                the owner or owners on whom eligibility for award of 
                the contract was based relinquish ownership or control 
                of the program participant, or enter into any agreement 
                to relinquish such ownership or control, the contract 
                or option shall be terminated for the convenience of 
                the Government.
                  (B) No damages.--No repurchase costs or other damages 
                may be assessed against a program participant due 
                solely to the operation of subparagraph (A).
  (b) Waiver.--
          (1) In general.--The Administrator may waive subsection (a) 
        only if--
                  (A)(i) it is necessary for the owner of the program 
                participant to surrender partial control of the program 
                participant on a temporary basis to obtain equity 
                financing; and
                  (ii) the Administrator is requested to waive 
                subsection (a) prior to the actual transfer of 
                ownership or control;
                  (B)(i) the procuring agency head certifies that 
                termination of the contract would severely impair 
                attainment of the procuring agency's program objectives 
                or missions; and
                  (ii) the Administrator is requested to waive 
                subsection (a) prior to the actual transfer of 
                ownership or control;
                  (C)(i) ownership and control of the program 
                participant will pass to another program participant; 
                and
                  (ii) the acquiring program participant would 
                otherwise be eligible to receive the award directly 
                under the program;
                  (D)(i) due to incapacity or death, none of one or 
                more individuals on whom eligibility was based is able 
                to continue to exercise control of the program 
                participant; and
                  (ii) the Administrator is requested to waive 
                subsection (a) as soon as possible after the incapacity 
                or death occurs; or
                  (E)(i) to raise equity capital, it is necessary for 
                the disadvantaged owner of the program participant to 
                transfer ownership of a majority of the voting stock of 
                the program participant;
                  (ii) the program participant has exited the program;
                  (iii) the disadvantaged owner will maintain ownership 
                of the largest single outstanding block of voting stock 
                (including stock held by affiliated persons); and
                  (iv) the disadvantaged owner will maintain control of 
                daily business operations of the program participant.
          (2) Nondelegability.--The authority of the Administrator 
        under paragraph (1) may not be delegated.
  (c) Notification of Agreement To Transfer.--The owner of a program 
participant that is performing a contract awarded under the program 
shall notify the Administrator immediately on entering into an oral or 
written agreement to transfer all or part of the stock or other 
ownership interest in the program participant to any other person.
  (d) Treatment of Certain Potential Ownership Interests.--
Notwithstanding any other provision of law, for the purposes of 
determining ownership and control of a program participant, any 
potential ownership interest held by an investment company licensed 
under subtitle III shall be treated in the same manner as an interest 
held by the individuals on whom eligibility is based.
  (e) Continued Eligibility.--A program participant shall remain 
eligible for contracts under the program if there is a transfer of 
ownership and control to individuals whom the Administrator determines 
to be socially and economically disadvantaged. In the event of such a 
transfer, the transferee program participant, if not terminated or 
graduated, shall be eligible for a period of continued participation in 
the program for the remainder of the program participation period of 
the transferor.
Sec. 23317. Assistance for program participants
  (a) In General.--The Administrator shall--
          (1) assist program participants in developing and maintaining 
        comprehensive business plans that specify the program 
        participant's specific business targets, objectives, and goals 
        developed and maintained in conformity with section 23318 of 
        this title;
          (2) provide for such other nonfinancial services as the 
        Administrator considers necessary for the establishment, 
        preservation, and growth of program participants;
          (3) assist program participants in obtaining equity and debt 
        financing;
          (4) establish regular performance monitoring and reporting 
        systems for program participants to ensure compliance with 
        their business plans;
          (5) analyze and report the causes of success and failure of 
        program participants; and
          (6) provide assistance necessary to help program participants 
        procure surety bonds.
  (b) Nonfinancial Services.--Nonfinancial services provided under 
subsection (a)(2) may include--
          (1) loan packaging;
          (2) financial counseling;
          (3) accounting and bookkeeping assistance;
          (4) marketing assistance; and
          (5) management assistance.
  (c) Surety Bonds.--Assistance provided under subsection (a)(6) may 
include--
          (1) assistance in the preparation of application forms 
        required to receive a surety bond;
          (2) special management and technical assistance designed to 
        meet the specific needs of program participants that have 
        received or are applying for a surety bond; and
          (3) preparation of all forms necessary to receive a surety 
        bond guarantee under chapter 321.
  (d) Outreach Program.--
          (1) In general.--The Administrator shall develop and 
        implement an outreach program to inform and recruit small 
        business concerns to apply for eligibility for assistance under 
        the program.
          (2) Activities.--The outreach program shall make a sustained 
        and substantial effort to solicit applications for 
        certification from--
                  (A) small business concerns located in areas of 
                concentrated unemployment or underemployment or within 
                labor surplus areas and within States having relatively 
                few program participants; and
                  (B) small disadvantaged business concerns in industry 
                categories that have not substantially participated in 
                the award of contracts under the program.
Sec. 23318. Business plans
  (a) Submission.--Promptly after certification under section 23325 of 
this title, a program participant shall submit a business plan for 
review by the business opportunity specialist assigned to assist the 
program participant.
  (b) Form; Objective.--A business plan--
          (1) may be a revision of a preliminary business plan 
        submitted by the program participant or required by the 
        Administrator as a part of the application for certification 
        under the program; and
          (2) shall be designed to result in the elimination by the 
        program participant of the conditions or circumstances on which 
        the Administrator determined eligibility under paragraph (8) or 
        (16) of section 23101 of this title.
  (c) Approval of Business Plan as Condition on Contract Award.--Prior 
approval of a business plan by the business opportunity specialist, and 
of subsequent modifications submitted under subsection (e), shall be a 
condition on the eligibility of a program participant for award of a 
contract under the program.
  (d) Contents.--A business plan shall include--
          (1) an analysis of market potential, competitive environment, 
        and other business analyses estimating the program 
        participant's prospects for profitable operations during the 
        term of program participation and after graduation;
          (2) an analysis of the program participant's strengths and 
        weaknesses, with particular attention to correcting any 
        financial, managerial, technical, or personnel conditions that 
        are likely to impede the program participant in receiving 
        contracts other than contracts awarded under the program;
          (3) specific targets, objectives, and goals for the business 
        development of the program participant during the next and 
        succeeding years using the results of the analyses conducted 
        under paragraphs (1) and (2);
          (4) a transition management plan outlining specific steps to 
        ensure profitable business operations after graduation (to be 
        incorporated into the program participant's plan during the 
        first year of the transitional stage of program participation); 
        and
          (5) estimates of contract awards under the program and from 
        other sources that the program participant will require to meet 
        the specific targets, objectives, and goals for the years 
        covered by the business plan, which estimates shall be 
        consistent with section 23328 of this title and other 
        applicable provisions of this chapter.
  (e) Annual Review.--
          (1) In general.--A program participant shall annually review 
        its currently approved business plan with its business 
        opportunity specialist and modify the business plan as 
        appropriate.
          (2) Approval.--
                  (A) Submission.--A modified business plan shall be 
                submitted to the Administrator for approval.
                  (B) Continued validity of current plan.--The 
                currently approved business plan shall be valid until 
                such time as a modified business plan is approved by 
                the business opportunity specialist.
          (3) Transitional stage.--Annual reviews pertaining to years 
        in the transitional stage of program participation shall 
        require, as appropriate, a written verification that the 
        program participant has complied with the requirements of 
        section 23328 of this title relating to attaining business 
        activity from sources other than contracts awarded under the 
        program.
  (f) Annual Needs Forecast.--
          (1) In general.--During the review of its plan conducted 
        under subsection (e), a program participant shall annually 
        forecast its needs for contract awards under the program for 
        the next program year and the succeeding program year.
          (2) Inclusion in business plan.--An annual needs forecast 
        shall be included in a program participant's business plan.
          (3) Contents.--An annual needs forecast shall include--
                  (A) the aggregate dollar value of contract support to 
                be sought on a noncompetitive basis under the program, 
                reflecting compliance with the requirements of section 
                23328 of this title relating to attaining business 
                activity from sources other than contracts awarded 
                under the program;
                  (B) the types of contract opportunities being sought, 
                identified by North American Industry Classification 
                System code or otherwise;
                  (C) an estimate of the dollar value of contract 
                support to be sought on a competitive basis; and
                  (D) such other information the business opportunity 
                specialist may request to provide effective business 
                development assistance to the program participant.
  (g) Logical Business Progression.--Limitations established by the 
Administrator restricting the award of contracts under the program to a 
limited number of North American Industry Classification System codes 
in an approved business plan shall not be applied in a manner that 
inhibits the logical business progression by a program participant into 
areas of industrial endeavor in which the program participant has 
potential for success.
Sec. 23319. Denial of further assistance
  (a) In General.--A program participant shall be denied any assistance 
under the program if the program participant--
          (1) voluntarily elects not to continue participation;
          (2) completes its program participation period;
          (3) is graduated; or
          (4) is terminated.
  (b) No Subsequent Recertification.--If participation in the program 
by a program participant is concluded for any of the reasons described 
in subsection (a), the former program participant shall not 
subsequently be recertified for participation in the program.
Sec. 23320. Graduation
  A program participant shall be graduated from the program--
          (1) when a program participant successfully completes the 
        program by substantially achieving the targets, objectives, and 
        goals contained in the program participant's business plan, 
        thereby demonstrating the ability of the program participant to 
        compete in the marketplace without assistance under the 
        program; or
          (2) if, in a review of economic disadvantage under section 
        23310(a) of this title, the Administrator determines that the 
        program participant and its disadvantaged owners are no longer 
        economically disadvantaged.
Sec. 23321. Termination
  (a) Basis for Termination.--
          (1) In general.--Termination from the program shall be based 
        on good cause.
          (2) Good cause.--For purposes of paragraph (1), good cause 
        includes--
                  (A) the failure of a program participant to maintain 
                eligibility for program participation;
                  (B) the failure of a program participant to engage in 
                business practices that will promote its 
                competitiveness within a reasonable period of time as 
                evidenced by, among other indicators, a pattern of 
                unjustified delinquent performance or terminations for 
                default with respect to contracts awarded under the 
                program;
                  (C) a demonstrated pattern of failing to make 
                required submissions or responses to the Administrator 
                in a timely manner;
                  (D) the willful violation of any regulation of the 
                Administrator pertaining to a material issue;
                  (E) the debarment of a program participant or its 
                disadvantaged owners by any agency under subpart 9.4 of 
                title 48, Code of Federal Regulations (or any successor 
                regulation); and
                  (F) the conviction of the disadvantaged owner or an 
                officer of a program participant for an offense 
                indicating a lack of business integrity (including a 
                conviction for embezzlement, theft, forgery, bribery, 
                falsification, or violation of chapter 105).
          (3) Termination for conviction.--For purposes of paragraph 
        (2)(F), a termination action shall not be taken with respect to 
        a disadvantaged owner of a program participant solely because 
        of the conviction of an officer of the program participant (who 
        is not a disadvantaged owner) unless the disadvantaged owner 
        conspired with, abetted, or otherwise knowingly acquiesced in 
        the activity or omission that was the basis of the officer's 
        conviction.
  (b) Procedure.--
          (1) Initiation of proceeding.--The Director may initiate a 
        termination proceeding by recommending a termination proceeding 
        to the Associate Administrator.
          (2) Notice of intent to terminate.--If the Associate 
        Administrator determines that termination is appropriate, the 
        Associate Administrator shall, not later than 15 days after 
        making the determination, provide the program participant 
        written notice of intent to terminate, specifying the reasons 
        for the termination.
Sec. 23322. Evaluation of eligibility
  (a) In General.--The Administrator shall conduct an evaluation of a 
program participant's eligibility for continued participation in the 
program whenever the Administrator receives specific and credible 
information alleging that the program participant no longer meets the 
requirements for program eligibility.
  (b) Termination Proceeding.--On making a finding that a program 
participant is no longer eligible, the Administrator shall initiate a 
termination proceeding under section 23321 of this title.
  (c) Suspension.--A program participant's eligibility for award of a 
contract under the program may be suspended under subpart 9.4 of title 
48, Code of Federal Regulations (or any successor regulation).
Sec. 23323. Limitation of eligibility to one small business concern
  (a) Determination of Social and Economic Disadvantage.--Except as 
provided in subsection (c), an individual who was determined to be 
socially and economically disadvantaged before August 15, 1989, shall 
not be permitted to assert such disadvantage with respect to any other 
concern making application for certification as a small business 
concern owned and controlled by socially and economically disadvantaged 
individuals.
  (b) Eligibility as a Socially and Economically Disadvantaged Small 
Business Concern.--Except as provided in subsection (c), an individual 
on whom eligibility as a small business concern owned and controlled by 
socially and economically disadvantaged individuals is based under 
section 23101(15) of this title shall be permitted to assert such 
eligibility for only one small business concern.
  (c) Exception.--An economically disadvantaged Indian tribe may own 
more than one small business concern eligible for assistance under the 
program if--
          (1) the Indian tribe does not own another concern in the same 
        industry that has been determined to be eligible to receive 
        contracts under the program; and
          (2) the individuals responsible for the management and daily 
        operations of the concern do not manage more than 2 program 
        participants.
Sec. 23324. Limitation on denial of admission into program based on 
                    unavailability of specific contract opportunities
  An applicant shall not be denied admission into the program based 
solely on a determination that specific contract opportunities are 
unavailable to assist in the development of the applicant unless--
          (1) the Government has not previously procured and is 
        unlikely to procure the types of products or services offered 
        by the applicant; or
          (2) the purchases of such products or services by the 
        Government will not be in quantities sufficient to support the 
        developmental needs of the applicant and other program 
        participants providing the same or similar products or 
        services.
Sec. 23325. Certification decision
  Not later than 90 days after receipt of a completed application for 
program certification, the Associate Administrator shall--
          (1) certify a small business concern as a program 
        participant; or
          (2) deny the application.
Sec. 23326. Review of new entrants into the program
  (a) Review.--Thirty days before the conclusion of each fiscal year, 
the Director shall review all small business concerns that have been 
admitted into the program during the preceding 12-month period.
  (b) Determination and Estimate.--In a review under subsection (a), 
the Director shall--
          (1) determine the number of entrants and their geographic 
        distribution and industrial classification; and
          (2) estimate--
                  (A) the expected growth of the program during the 
                next fiscal year; and
                  (B) the number of additional business opportunity 
                specialists, if any, that will be needed to meet the 
                anticipated demand for the program.
  (c) Report.--Not later than September 30 of each year, the Director 
shall report to the Associate Administrator the determination and 
estimates made under subsection (b).
  (d) Directives.--
          (1) In general.--Based on the report under subsection (c) and 
        such additional data as are relevant, the Associate 
        Administrator shall, not later than October 31 of each fiscal 
        year, issue policy and program directives applicable to the 
        fiscal year that--
                  (A) establish priorities for the solicitation of 
                program applications from underrepresented regions and 
                industry categories;
                  (B) assign staffing levels and allocate other program 
                resources as necessary to meet program needs; and
                  (C) establish priorities in the processing and 
                admission of new program participants as necessary to 
                achieve an equitable geographic distribution of small 
                business concerns and a distribution of concerns across 
                all industry categories in proportions needed to 
                increase significantly contract awards to small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals.
          (2) Considerations.--In considering an increase described in 
        paragraph (1)(C), the Associate Administrator shall give due 
        consideration to industrial categories in which Federal 
        purchases have been substantial but in which the participation 
        rate of small business concerns owned and controlled by 
        socially and economically disadvantaged individuals has been 
        limited.
Sec. 23327. Program stages
  (a) In General.--The Administrator shall segment a program 
participant's participation in the program into a developmental stage 
and a transitional stage.
  (b) Developmental Stage.--The developmental stage of program 
participation shall be designed to assist a program participant in its 
effort to overcome its economic disadvantage by providing such 
assistance as is necessary and appropriate to access markets and 
strengthen its financial and managerial skills.
  (c) Transitional Stage.--The transitional stage of program 
participation shall be designed to overcome, insofar as practicable, 
the remaining elements of economic disadvantage and to prepare a 
program participant for graduation from the program.
  (d) Available Assistance.--
          (1) In general.--A program participant, if otherwise 
        eligible, shall be qualified to receive assistance as provided 
        in this subsection.
          (2) Contract support.--A program participant in the 
        developmental stage or transitional stage shall be qualified to 
        receive contract support under the program.
          (3) Financial assistance.--A program participant in the 
        developmental stage or transitional stage shall be qualified to 
        receive financial assistance under section 20511 of this title.
          (4) Employee skills training or upgrading.--
                  (A) Definition of training provider.--In this 
                paragraph, the term ``training provider'' means an 
                institution of higher education, a community or 
                vocational college, or an institution eligible to 
                provide skills training or upgrading under title I of 
                the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.).
                  (B) In general.--A program participant in the 
                developmental stage shall be qualified to receive 
                financial assistance under which the Administrator may, 
                without regard to section 10331(l) of this title, 
                purchase in whole or in part, on behalf of the program 
                participant, skills training or upgrading for employees 
                or potential employees of the program participant.
                  (C) Form of assistance.--Financial assistance under 
                subparagraph (B) may be made--
                          (i) by direct payment to the training 
                        provider; or
                          (ii) by reimbursing the program participant 
                        or the program participant's employee, if the 
                        Administrator considers reimbursement to be 
                        reasonable and appropriate.
                  (D) Limitation.--Financial assistance under 
                subparagraph (B) shall not be granted to a program 
                participant unless the program participant first 
                documents that the program participant has explored the 
                use of existing cost-free or cost-subsidized training 
                programs offered by public and private sector agencies 
                working with programs of employment and training and 
                economic development.
                  (E) Number of employees.--Not more than 5 employees 
                or potential employees of the program participant are 
                recipients of skills training or upgrading under 
                subparagraph (B) at any one time.
                  (F) Amount.--Not more than $2,500 shall be made 
                available for any one employee or potential employee 
                for skills training or upgrading under subparagraph 
                (B).
                  (G) Length of training or upgrading.--The length of 
                training or upgrading financed under subparagraph (B) 
                shall be not less than one nor more than 6 months.
                  (H) Length of employment.--
                          (i) Assurances.--Financial assistance under 
                        subparagraph (B) shall not be granted to a 
                        program participant unless--
                                  (I) the program participant has given 
                                adequate assurance that it will employ 
                                the trainee or upgraded employee for a 
                                period of at least 6 months after the 
                                training or upgrading financed under 
                                subparagraph (B) has been completed; 
                                and
                                  (II) each trainee or upgraded 
                                employee has given a similar assurance 
                                to remain within the employ of the 
                                program participant for that period.
                          (ii) Breach.--If a program participant, 
                        trainee, or upgraded employee fails to fulfill 
                        the assurance under clause (i)--
                                  (I) the Administrator shall be 
                                entitled to, and shall make diligent 
                                efforts to obtain from the violating 
                                program participant, trainee, or 
                                upgraded employee, the repayment of all 
                                funds expended on behalf of the program 
                                participant, trainee, or upgraded 
                                employee;
                                  (II) such repayment shall be made to 
                                the Administrator with such interest 
                                and costs of collection as are 
                                reasonable; and
                                  (III) the program participant, 
                                trainee, or upgraded employee shall be 
                                barred from receiving any further 
                                assistance under subparagraph (B).
                  (I) Location.--Training or upgrading financed under 
                subparagraph (B) may take place at a facility of the 
                program participant or of the training provider.
                  (J) Records.--A program participant that receives 
                assistance under subparagraph (B) shall maintain such 
                records as the Administrator considers appropriate to 
                ensure that this subsection and any other applicable 
                law have not been violated.
                  (K) Regulations.--The Administrator shall, in 
                consultation with the Secretary of Labor, promulgate 
                regulations to implement this paragraph that establish 
                acceptable training and upgrading performance standards 
                and provide for such monitoring or audit requirements 
                as are necessary to ensure the integrity of the 
                training effort.
          (5) Technology and surplus property transfer.--
                  (A) In general.--A program participant in the 
                developmental stage or transitional stage shall be 
                qualified to receive the transfer of technology or 
                surplus property owned by the United States.
                  (B) Effectuation.--Activities designed to effect 
                transfers under subparagraph (A)--
                          (i) shall be developed in cooperation with 
                        the heads of Federal agencies; and
                          (ii) shall include the transfer by grant, 
                        license, or sale of technology or property to 
                        program participants.
                  (C) Priority.--Property under subparagraph (A) may be 
                transferred to program participants on a priority 
                basis.
                  (D) Use.--Technology or property transferred under 
                subparagraph (A)--
                          (i) shall be used by a program participant 
                        during the normal conduct of its business 
                        operation; and
                          (ii) shall not be sold or transferred to any 
                        other person (other than the Government) until 
                        one year after the program participant's term 
                        of participation.
          (6) Training in the development of business principles and 
        strategies.--A program participant in the developmental stage 
        or transitional stage shall be qualified to receive training 
        assistance under which the Administrator shall conduct training 
        sessions to assist program participants in the development of 
        business principles and strategies to enhance their ability to 
        compete successfully for contracts in the marketplace.
          (7) Participation in joint ventures, leader-follower 
        arrangements, and teaming agreements.--
                  (A) In general.--A program participant in the 
                transitional stage shall be qualified to participate in 
                joint ventures, leader-follower arrangements, and 
                teaming agreements between the program participant and 
                other program participants and other business concerns 
                with respect to contracting opportunities for the 
                research, development, full-scale engineering, or 
                production of major systems.
                  (B) Agency programs.--Activities under subparagraph 
                (A) shall be undertaken on the basis of programs 
                developed by the Federal agency responsible for the 
                procurement of the major system, with the assistance of 
                the Administrator.
          (8) Business planning training and technical assistance.--A 
        program participant in the transitional stage shall be 
        qualified to receive transitional management business planning 
        training and technical assistance.
Sec. 23328. Attainment of business activity targets
  (a) Developmental Stage.--During the developmental stage of 
participation in the program, a program participant shall take all 
reasonable efforts within its control to attain the business activity 
targets contained in its business plan. Those efforts shall be made a 
part of the business plan and shall be sufficient in scope and duration 
to satisfy the Administrator that the program participant will engage a 
reasonable marketing strategy that will maximize its potential to 
attain its business activity targets.
  (b) Transitional Stage.--
          (1) In general.--During the transitional stage of 
        participation in the program, a program participant shall be 
        subject to regulations regarding business activity targets that 
        are promulgated by the Administrator.
          (2) Establishment of business activity targets.--The 
        regulations under paragraph (1) shall establish business 
        activity targets applicable to program participants during the 
        fifth year and each succeeding year of program participation. 
        The business activity targets, for that period of time, shall 
        reflect a reasonably consistent increase in contracts awarded 
        other than under the program, expressed as a percentage of 
        total sales.
          (3) Attainment.--The regulations under paragraph (1) shall 
        require a program participant to attain its business activity 
        targets.
          (4) Certification of compliance.--The regulations under 
        paragraph (1) shall provide that, before the receipt of any 
        contract to be awarded under the program, the program 
        participant (if it is in the transitional stage) shall certify 
        that it--
                  (A) has complied with the regulations; or
                  (B) is in compliance with such remedial measures as 
                have been ordered under regulations promulgated under 
                paragraph (6).
          (5) Performance review.--The regulations under paragraph (1) 
        shall require the Administrator to review a program 
        participant's performance regarding attainment of business 
        activity targets during periodic reviews of the program 
        participant's business plan.
          (6) Remedial measures.--
                  (A) In general.--The regulations under paragraph (1) 
                shall authorize the Administrator to take appropriate 
                remedial measures with respect to a program participant 
                that fails to attain a required business activity 
                target for the purpose of reducing the program 
                participant's dependence on contracts awarded under the 
                program.
                  (B) Measures.--Remedial measures may include--
                          (i) assisting the program participant in 
                        expanding the dollar volume of its competitive 
                        business activity; and
                          (ii) limiting the dollar volume of contracts 
                        awarded to the program participant under the 
                        program.
                  (C) Nonreviewability.--Except for a remedial measure 
                that would constitute a termination, a remedial measure 
                taken under this paragraph shall not be reviewable 
                under section 23311 of this title.
Sec. 23329. Program participation period
  A program participant may receive assistance under the program for a 
total period of not longer than 9 years, measured from the date of its 
certification under section 23325 of this title, of which--
          (1) not more than 4 years may be spent in the developmental 
        stage of program participation; and
          (2) not more than 5 years may be spent in the transitional 
        stage of program participation.
Sec. 23330. Collection of data on program operations
  The Administrator shall develop and implement a process for the 
systematic collection of data on the operations of the program.
Sec. 23331. Approval of contract options and modifications
  The Administrator shall make substantial and sustained efforts to 
achieve a maximum 10-day period as the average processing time for 
approving options and modifications to contracts awarded under the 
program and submitted to the Administrator for approval.
Sec. 23332. Orderly and efficient management of program
  The Administrator shall, to the maximum extent practicable, minimize 
delay, eliminate excess regulation, and require only such paperwork as 
is necessary to effect the orderly and efficient management of the 
program and the award of contracts under the program.
Sec. 23333. Participation in federally funded programs and projects
  (a) In General.--A small business concern that is certified, or 
otherwise meets the criteria for participation in any program under the 
program, shall not be required by any State or political subdivision of 
a State to meet additional criteria or certification, unrelated to the 
capability to provide the requested product or service, to participate 
as a small business concern owned and controlled by socially and 
economically disadvantaged individuals in any program or project that 
is funded, in whole or in part, by the Federal Government.
  (b) Notice of Participation by the Secretary of Transportation.--The 
Secretary of Transportation shall notify each State or political 
subdivision of a State to which the Secretary of Transportation awards 
a grant or other Federal funds of the criteria for participation by a 
small business concern owned and controlled by socially and 
economically disadvantaged individuals in any program or project that 
is funded, in whole or in part, by the Federal Government.

            CHAPTER 235--TECHNICAL AND MANAGEMENT ASSISTANCE

Sec.
23501.  Financial assistance for projects providing technical or 
          management assistance.
23502.  Eligible projects.
23503.  Location of service.
Sec. 23501. Financial assistance for projects providing technical or 
                    management assistance
  (a) In General.--The Administrator shall provide financial assistance 
to public or private organizations to pay all or part of the cost of 
projects designed to provide technical or management assistance to 
program participants, with special attention to small business concerns 
located in areas with high proportions of unemployed or low-income 
individuals.
  (b) Form of Assistance.--The financial assistance authorized for 
projects under this chapter includes assistance advanced by grant, 
agreement, or contract.
  (c) Payment.--The Administrator may make payments under a grant or 
contract under this chapter in lump sum or installments, and in advance 
or by way of reimbursement, and in the case of grants, with necessary 
adjustments on account of overpayments or underpayments.
Sec. 23502. Eligible projects
  (a) In General.--Financial assistance under this chapter may be 
provided for projects, including projects for--
          (1) planning and research, including feasibility studies and 
        market research;
          (2) the identification and development of new business 
        opportunities;
          (3) the furnishing of centralized services with regard to 
        public services and Federal Government programs including the 
        programs authorized under this division and section 20511 of 
        this title;
          (4) the establishment and strengthening of business service 
        agencies, including trade associations and cooperatives; and
          (5) the furnishing of business counseling, management 
        training, and legal and other related services, with special 
        emphasis on the development of management training programs 
        using the resources of the business community (including the 
        development of management training opportunities in existing 
        business) and with emphasis in all cases on providing 
        management training of sufficient scope and duration to develop 
        entrepreneurial and managerial self-sufficiency on the part of 
        the individuals served.
  (b) Preference.--The Administrator shall give preference to projects 
that promote the ownership, participation in ownership, or management 
of small business concerns owned by program participants.
Sec. 23503. Location of service
  To the extent feasible, service under this chapter shall be provided 
in a location that is easily accessible to the program participants 
served.

                   DIVISION F--PROCUREMENT ASSISTANCE

                    CHAPTER 241--GENERAL PROVISIONS

Sec.
24101.  Definition of executive agency.
24102.  Authority.
24103.  Technical, managerial, and informational aids.
24104.  Inventory of productive facilities.
24105.  Utilization of productive capacity.
24106.  Subcontracting to small business concerns.
24107.  Size certification.
24108.  Responsibility certification.
24109.  Information pertaining to Federal procurement or production.
24110.  Information pertaining to disposal of Federal property.
24111.  Information pertaining to supplies of materials.
24112.  Fair proportions of business for small business concerns.
24113.  Fair and reasonable treatment of small business concerns.
24114.  Information and assistance pertaining to federally aided urban 
          renewal projects.
24115.  Dissemination of information by the Administrator.
24116.  Availability of information from Federal agencies.
24117.  Adjustment of regulations and programs to the needs of small 
          business concerns.
24118.  Outreach programs for disabled veterans, veterans, and 
          reservists.
Sec. 24101. Definition of executive agency
  In this division, the term ''executive agency'' has the meaning given 
the term in section 4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403).
Sec. 24102. Authority
  The Administrator shall take an action under this chapter when the 
Administrator determines that the action is necessary.
Sec. 24103. Technical, managerial, and informational aids
  (a) In General.--
          (1) Activities.--The Administrator shall provide technical, 
        managerial, and informational aids to small business concerns--
                  (A) by advising and counseling on matters in 
                connection with Government procurement and policies, 
                principles, and practices of good management;
                  (B) by cooperating and advising with--
                          (i) voluntary business, professional, 
                        educational, and other nonprofit organizations, 
                        associations, and institutions; and
                          (ii) other Federal and State agencies;
                  (C) by maintaining a clearinghouse for information on 
                managing, financing, and operating small business 
                concerns; and
                  (D) by disseminating such information, including 
                through recognition events, and by other activities 
                that the Administration determines to be appropriate.
          (2) No endorsement; appropriate recognition.--In cooperating 
        and advising with an entity under paragraph (1)(B)(i), the 
        Administrator shall take such actions as the Administrator 
        determines to be necessary to ensure that--
                  (A) the cooperation does not constitute or imply an 
                endorsement by the Administrator of the entity or its 
                products or services; and
                  (B) the Administration receives appropriate 
                recognition in all printed material.
          (3) For-profit concerns.--The Administrator may provide 
        technical, managerial, and informational aids to small business 
        concerns through cooperation with a for-profit concern 
        (referred to in this paragraph as a ``cosponsor'') if the 
        Administrator--
                  (A) takes such action as the Administrator determines 
                to be appropriate to ensure that--
                          (i) the Administration receives appropriate 
                        recognition and publicity;
                          (ii) the cooperation does not constitute or 
                        imply an endorsement by the Administrator of 
                        any product or service of the cosponsor;
                          (iii) unnecessary promotion of the products 
                        or services of the cosponsor is avoided; and
                          (iv) the use of any one cosponsor in a 
                        marketing area is minimized; and
                  (B) develops an agreement, executed on behalf of the 
                Administrator by an employee of the Administration in 
                Washington, the District of Columbia, that, at a 
                minimum--
                          (i) specifies the terms and conditions of the 
                        cooperation; and
                          (ii) provides that--
                                  (I) any printed material to announce 
                                the cosponsorship or to be distributed 
                                at the cosponsored activity shall be 
                                approved in advance by the 
                                Administrator;
                                  (II) only minimal charges may be 
                                imposed on any small business concern 
                                to cover the direct costs of providing 
                                the assistance;
                                  (III) the Administrator may provide 
                                to the cosponsor mailing labels but not 
                                lists of names and addresses of small 
                                business concerns compiled by the 
                                Administrator;
                                  (IV) all printed materials containing 
                                the names of both the Administration 
                                and the cosponsor shall include a 
                                prominent disclaimer that the 
                                cooperation does not constitute or 
                                imply an endorsement by the 
                                Administrator of any product or service 
                                of the cosponsor; and
                                  (V) the Administration shall receive 
                                appropriate recognition in all 
                                cosponsorship printed materials.
  (b) Volunteer Programs.--
          (1) In general.--In carrying out this section, the 
        Administrator shall establish, conduct, and publicize, and 
        recruit, select, and train volunteers for, and enter into 
        contracts, grants, or cooperative agreements for, volunteer 
        programs, including SCORE and an Active Corps of Executives for 
        the purposes of subsection (a).
          (2) Staff.--To facilitate the implementation of the volunteer 
        programs, the Administrator shall, to the extent and in such 
        amounts as are provided in advance in appropriation Acts, 
        maintain at Administration headquarters, and pay the salaries, 
        benefits, and expenses of, a volunteer and professional staff 
        to manage and oversee the volunteer programs.
          (3) Contributions.--Notwithstanding any other provision of 
        law, SCORE may--
                  (A) solicit cash and in-kind contributions from the 
                private sector to be used to carry out its functions 
                under this subtitle; and
                  (B) use payments made by the Administrator under this 
                subsection for such solicitation and management of the 
                contributions received.
  (c) Use of Administration Facilities.--The Administrator shall allow 
any individual or group of persons participating with the Administrator 
in furtherance of this section to use such of the Administration's 
office facilities and related material and services (including clerical 
and stenographic services) as the Administrator considers appropriate.
  (d) Volunteers Deemed To Be Federal Employees for Federal Tort Claims 
Purposes.--A volunteer, while carrying out an activity under this 
section, shall be deemed to be a Federal employee for purposes of 
chapter 171 of title 28.
  (e) Volunteers Deemed To Be Civil Employees for Work Injury 
Compensation Purposes.--A volunteer, while carrying out an activity 
under this section, shall, for purposes of subchapter I of chapter 81 
of title 5 (relative to compensation to Federal employees for work 
injuries), be deemed to be a civil employee of the United States within 
the meaning of the term ``employee'' as defined in section 8101 of 
title 5, and that subchapter shall apply except that in computing 
compensation benefits for disability or death, the monthly pay of a 
volunteer shall be deemed to be that received under the entrance salary 
for a grade GS-11 employee.
  (f) Reimbursement of Volunteers.--
          (1) In general.--The Administrator may reimburse a volunteer 
        carrying out an activity under this section for--
                  (A) all necessary out-of-pocket expenses incident to 
                the volunteer's provision of services under this 
                subtitle, or in connection with attendance at a meeting 
                sponsored by the Administration;
                  (B) the cost of malpractice insurance, as the 
                Administrator shall determine, in accordance with 
                regulations that the Administrator shall prescribe; and
                  (C) travel expenses (including per diem in lieu of 
                subsistence) as authorized by section 5703 of title 5 
                for individuals serving without pay, while the 
                volunteer is carrying out such an activity away from 
                the volunteer's home or regular place of business.
          (2) Treatment of payments.--Notwithstanding any other 
        provision of law, no payment for supportive services or 
        reimbursement of out-of-pocket expenses made to a volunteer 
        serving under this section shall be subject to any tax or 
        charge or be treated as wages or compensation for the purposes 
        of unemployment, disability, retirement, public assistance, or 
        similar benefit payments, or minimum wage laws.
  (g) Limitation on Provision of Services to Persons With a Delinquent 
Loan.--A volunteer carrying out an activity under this section shall 
not provide any service to a person with a loan under this subtitle 
that is delinquent except on a specific request for assistance signed 
by the person in connection with the delinquency.
  (h) Grants for Business Counseling and Assistance.--
          (1) In general.--In carrying out this section, the 
        Administrator may make a grant to, or enter into a contract or 
        cooperative agreement with, a public or private institution of 
        higher education for the establishment and operation of a small 
        business institute, which shall be used to provide business 
        counseling and assistance to small business concerns through 
        the activities of students enrolled at the institution.
          (2) Educational credits.--A student engaged in an activity 
        funded under paragraph (1) shall be entitled to receive 
        educational credit for the activity.
  (i) Payment of Expenses in Judicial or Administrative Proceedings.--
Notwithstanding any other provision of law and in accordance with 
regulations that the Administrator shall prescribe, in a judicial or 
administrative proceeding arising directly out of the performance of an 
activity under this section to which a volunteer is made a party, the 
Administrator may employ counsel and pay counsel fees, court costs, 
bail, and other expenses incidental to the defense of the volunteer.
Sec. 24104. Inventory of productive facilities
  (a) In General.--The Administrator shall--
          (1) make a complete inventory of all productive facilities of 
        small business concerns; or
          (2) arrange for such an inventory to be made by any other 
        governmental agency that has the facilities.
  (b) Information From State Agencies.--In making an inventory under 
subsection (a), the Administrator or other governmental agency may 
request an appropriate agency of a State to furnish an inventory of the 
productive facilities of small business concerns in the State if such 
an inventory is available or in prospect.
Sec. 24105. Utilization of productive capacity
  The Administrator shall--
          (1) coordinate and ascertain the means by which the 
        productive capacity of small business concerns can be most 
        effectively utilized; and
          (2) consult and cooperate with officers of the Government 
        having procurement or property disposal powers, in order to 
        utilize the potential productive capacity of plants operated by 
        small business concerns.
Sec. 24106. Subcontracting to small business concerns
  The Administrator shall--
          (1) obtain information concerning methods and practices that 
        Government prime contractors utilize in letting subcontracts; 
        and
          (2) take action to encourage the letting of subcontracts by 
        prime contractors to small business concerns at prices and on 
        terms and conditions that are fair and equitable.
Sec. 24107. Size certification
  (a) In General.--The Administrator shall determine within any 
industry the concerns that qualify as a small business concern for 
purposes of this subtitle.
  (b) Issuance of Certificate.--When requested to do so, the 
Administrator shall issue a certificate certifying a concern as a small 
business concern in accordance with the criteria stated in this 
subtitle and section 10101 of this title.
  (c) Revocation of Certificate.--A certificate issued under subsection 
(b) shall be subject to revocation when the concern covered by the 
certificate ceases to qualify as a small business concern.
  (d) Conclusive Determination.--An officer of the Government having 
procurement or lending power, or engaging in the disposal of Federal 
property or allocating materials or supplies, or promulgating 
regulations affecting the distribution of materials or supplies, shall 
accept as conclusive the Administrator's determination whether a 
concern qualifies as a small business concern.
Sec. 24108. Responsibility certification
  (a) Definitions.--In this section:
          (1) Contracting officer.--The term ``contracting officer'' 
        means--
                  (A) a contracting officer; and
                  (B) any other officer engaged in the sale and 
                disposal of Federal property.
          (2) Responsibility.--The term ``responsibility'' includes 
        capability, competency, capacity, credit, integrity, 
        perseverance, and tenacity.
  (b) Certification.--The Administrator shall certify to a contracting 
officer with respect to all elements of the responsibility of a small 
business concern or group of small business concerns to receive and 
perform a specific Government contract.
  (c) No Preclusion From Award of Contract Without Referral to the 
Administrator.--A contracting officer may not, for any reason relating 
to an element of responsibility as determined under subsection (b), 
preclude a small business concern or group of small business concerns 
from being awarded a contract without referring the matter for a final 
disposition to the Administrator.
  (d) Conclusive Determination.--A contracting officer shall--
          (1) accept as conclusive a certification made under 
        subsection (b) as to the specific Government contract with 
        respect to which the certification is made; and
          (2) let the contract to the small business concern or group 
        of small business concerns without requiring the small business 
        concern or group of small business concerns to meet any other 
        requirement of responsibility or eligibility.
  (e) No Exemption.--The Administrator may not establish an exemption 
from referral or notification or refuse to accept a referral or 
notification from a contracting officer made under subsection (c), but 
nothing in this section requires the processing of an application for 
certification if the small business concern to which the referral 
pertains declines to have the application processed.
Sec. 24109. Information pertaining to Federal procurement or production
  The Administrator shall obtain from any Federal agency engaged in 
procurement or in the financing of procurement or production such 
reports concerning the letting of contracts and subcontracts and the 
making of loans to business concerns as the Administrator considers 
pertinent in carrying out the functions of the Administrator under this 
subtitle and subtitle I.
Sec. 24110. Information pertaining to disposal of Federal property
  The Administrator shall obtain from any Federal agency engaged in the 
disposal of Federal property such reports concerning the solicitation 
of bids, time of sale, or otherwise as the Administrator considers 
pertinent in carrying out the functions of the Administrator under this 
subtitle and subtitle I.
Sec. 24111. Information pertaining to supplies of materials
  The Administrator shall obtain from suppliers of materials 
information pertaining to the method of filling orders for materials, 
and the bases for allocating their supplies of materials, when it 
appears that a small business concern is unable to obtain material from 
its normal sources.
Sec. 24112. Fair proportions of business for small business concerns
  The Administrator shall make studies and recommendations to the 
appropriate Federal agencies to ensure that--
          (1) a fair proportion of the total purchases and contracts 
        for property and services for the Government is placed with 
        small business concerns;
          (2) a fair proportion of Government contracts for research 
        and development is placed with small business concerns;
          (3) a fair proportion of the total sales of Government 
        property is made to small business concerns; and
          (4) a fair and equitable share of materials, supplies, and 
        equipment is available to small business concerns.
Sec. 24113. Fair and reasonable treatment of small business concerns
  The Administrator shall consult and cooperate with all Federal 
agencies for the purpose of ensuring that small business concerns 
receive fair and reasonable treatment from Federal agencies.
Sec. 24114. Information and assistance pertaining to federally aided 
                    urban renewal projects
  The Administrator shall provide at the earliest practicable time such 
information and assistance as are appropriate (including information 
concerning eligibility for loans under section 21303 of this title) to 
local public agencies (as defined in section 110(h) of the Housing Act 
of 1949 (42 U.S.C. 1460(h))) and to small business concerns to be 
displaced by federally aided urban renewal projects in order to assist 
the small business concerns in reestablishing operations.
Sec. 24115. Dissemination of information by the Administrator
  (a) In General.--The Administrator shall disseminate, without regard 
to section 3204 of title 39, information, in such form as the 
Administrator considers appropriate, to public agencies, private 
organizations, and the general public.
  (b) Information on Federal Procurement Practices.--The Administrator 
shall, for each fiscal year--
          (1) collect information concerning the procurement practices 
        and procedures of each Federal agency having procurement 
        authority;
          (2) publish and disseminate the information to contracting 
        officers in all Federal agencies; and
          (3) make the information available to any small business 
        concern that requests the information.
Sec. 24116. Availability of information from Federal agencies
  (a) Requests for Information.--For any contract to be let by any 
Federal agency, the Federal agency shall provide to any small business 
concern, on request by the small business concern--
          (1) a copy of bid sets and specifications with respect to the 
        contract;
          (2) the name and telephone number of an employee of the 
        Federal agency to answer questions with respect to the 
        contract; and
          (3) adequate citations to each major Federal law (including a 
        regulation) with which the small business concern must comply 
        in performing the contract.
  (b) Exempt Contracts.--Subsection (a) does not apply to a contract 
(or subcontract) that--
          (1) will be performed entirely outside the United States; or
          (2) is for services that are personal in nature.
Sec. 24117. Adjustment of regulations and programs to the needs of 
                    small business concerns
  The Administrator shall--
          (1) make studies of matters materially affecting the 
        competitive strength of small business concerns and of the 
        effect on small business concerns of Federal laws (including 
        regulations) and programs; and
          (2) make recommendations to Federal agencies as appropriate 
        for the adjustment of regulations and programs to the needs of 
        small business concerns.
Sec. 24118. Outreach programs for disabled veterans, veterans, and 
                    reservists
  (a) In General.--The Administrator shall make grants to, and enter 
into contracts and cooperative agreements with, educational 
institutions, private businesses, veterans' nonprofit community-based 
organizations, and Federal agencies and State and local agencies for 
the establishment and implementation of outreach programs for disabled 
veterans, veterans, and reservists.
  (b) Increase in Number of Veterans Business Outreach Centers.--The 
Administrator shall use the authority under subsection (a) to ensure 
that the number of veterans business outreach centers throughout the 
United States increases by the number that the Administrator considers 
appropriate, based on need, for each fiscal year.

                 CHAPTER 243--SUBCONTRACTING PROVISIONS

Sec.
24301.  Opportunity to participate in performance of contracts.
24302.  Notice of provisions relating to contracts awarded pursuant to 
          the negotiated method of procurement.
24303.  Subcontracting plans.
24304.  Incentives.
24305.  Liquidated damages.
24306.  Material breach.
24307.  Effect of chapter.
Sec. 24301. Opportunity to participate in performance of contracts
  (a) In General.--The clause stated in subsection (c) shall be 
included in all contracts let by a Federal agency except a contract 
described in subsection (b).
  (b) Excepted Contracts.--The clause stated in subsection (c) need not 
be included in--
          (1) a contract that does not exceed the simplified 
        acquisition threshold;
          (2) a contract (including all subcontracts under the 
        contract) that will be performed entirely outside the United 
        States; or
          (3) a contract for a service that is personal in nature.
  (c) Required Clause.--The clause required by subsection (a) is as 
follows:
          ``(1) Definitions.--
                  ``(A) In general.--As used in this contract, each of 
                the terms `qualified HUBZone small business concern', 
                `small business concern', `small business concern owned 
                and controlled by service-disabled veterans', `small 
                business concern owned and controlled by socially and 
                economically disadvantaged individuals', `small 
                business concern owned and controlled by veterans', and 
                `small business concern owned and controlled by women' 
                has the meaning given the term in section 10101 of 
                title 53, United States Code.
                  ``(B) Presumption.--For purposes of applying the 
                definition of `small business concern owned and 
                controlled by socially and economically disadvantaged 
                individuals', the contractor shall presume that 
                socially and economically disadvantaged individuals 
                include Black Americans, Hispanic Americans, Native 
                Americans, Asian Pacific Americans, and other 
                minorities, or any other individual found to be 
                disadvantaged by the United States Small Business 
                Administration.
          ``(2) Policy.--It is the policy of the United States that 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns 
        shall have the maximum practicable opportunity to participate 
        in the performance of contracts let by any Federal agency, 
        including contracts and subcontracts for subsystems, 
        assemblies, components, and related services for major systems. 
        It is further the policy of the United States that its prime 
        contractors establish procedures to ensure the timely payment 
        of amounts due pursuant to the terms of their subcontracts with 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns.
          ``(3) Agreement.--The contractor agrees--
                  ``(A) to carry out the policy stated in paragraph (2) 
                in the awarding of subcontracts to the fullest extent 
                consistent with the efficient performance of this 
                contract; and
                  ``(B) to cooperate in any studies or surveys that may 
                be conducted by the United States Small Business 
                Administration or the awarding agency of the United 
                States as necessary to determine the extent of the 
                contractor's compliance with this clause.
          ``(4) Reliance on written representation.--The contractor, 
        acting in good faith, may rely on a written representation by a 
        subcontractor regarding its status as a qualified HUBZone small 
        business concern, small business concern owned and controlled 
        by service-disabled veterans, small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concern owned and controlled by 
        veterans, small business concern owned and controlled by women, 
        or other small business concern.''
Sec. 24302. Notice of provisions relating to contracts awarded pursuant 
                    to the negotiated method of procurement
  (a) Required Clause.--A solicitation of an offer for a contract 
described in subsection (b) shall contain a clause notifying potential 
offering companies of the provisions of this chapter relating to 
contracts awarded pursuant to the negotiated method of procurement.
  (b) Contracts.--A contract referred to in subsection (a) is a 
contract let by a Federal agency that--
          (1) is to be awarded pursuant to the negotiated method of 
        procurement; and
          (2) may exceed--
                  (A) $1,000,000, in the case of a contract for the 
                construction of a public facility; or
                  (B) $500,000, in the case of any other contract.
Sec. 24303. Subcontracting plans
  (a) Definitions.--In this section:
          (1) Bidder.--The term ``bidder'' does not include a bidder 
        that is a small business concern.
          (2) Offeror.--The term ``offeror'' does not include an 
        offeror that is a small business concern.
  (b) Negotiated Procurements.--
          (1) Negotiation.--Before the award of any contract described 
        in paragraph (2), or any amendment or modification to such a 
        contract, the apparent successful offeror shall negotiate with 
        the procurement authority a subcontracting plan that 
        incorporates the information prescribed in subsection (d).
          (2) Contracts.--A contract referred to in paragraph (1) is a 
        contract let by a Federal agency that--
                  (A) is to be (or was) awarded pursuant to the 
                negotiated method of procurement;
                  (B) is required to include the clause stated in 
                section 24301 of this title;
                  (C) may exceed--
                          (i) $1,000,000, in the case of a contract for 
                        the construction of a public facility; or
                          (ii) $500,000, in the case of any other 
                        contract; and
                  (D) offers a subcontracting possibility.
          (3) Inclusion in contract.--The subcontracting plan shall be 
        included in and made a material part of the contract.
          (4) Failure to negotiate subcontracting plan.--If, within the 
        time prescribed in regulations of the procuring agency, the 
        apparent successful offeror fails to negotiate the 
        subcontracting plan required by paragraph (2), the offeror 
        shall be ineligible to be awarded the contract.
          (5) Prior compliance a factor in determining 
        responsibility.--Prior compliance of the offeror with other 
        subcontracting plans under this subsection shall be considered 
        by a procuring agency in determining the responsibility of the 
        offeror for the award of the contract.
          (6) Maximum opportunity.--No contract shall be awarded to any 
        offeror unless the procuring agency determines that the 
        subcontracting plan to be negotiated by the offeror under 
        paragraph (2) provides the maximum practicable opportunity for 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns, to 
        participate in the performance of the contract.
  (c) Advertised Procurements.--
          (1) Required clause.--A solicitation of a bid for a contract 
        described in paragraph (2), or any amendment or modification to 
        such a contract, shall contain a clause requiring any bidder 
        that is selected to be awarded a contract to submit to the 
        procuring agency a subcontracting plan that incorporates the 
        information prescribed in subsection (d).
          (2) Contracts.--A contract referred to in paragraph (1) is a 
        contract let by a Federal agency that--
                  (A) is to be awarded pursuant to the formal 
                advertising method of procurement;
                  (B) is required to contain the clause stated in 
                section 24301 of this title;
                  (C) may exceed--
                          (i) $1,000,000, in the case of a contract for 
                        the construction of a public facility; or
                          (ii) $500,000, in the case of any other 
                        contract; and
                  (D) offers a subcontracting possibility.
          (3) Inclusion in contract.--The subcontracting plan of the 
        bidder awarded the contract shall be included in and made a 
        material part of the contract.
          (4) Failure to submit subcontracting plan.--If, within the 
        time prescribed in regulations of the procuring agency, the 
        bidder selected to be awarded the contract fails to submit the 
        subcontracting plan required by paragraph (1), the bidder shall 
        become ineligible to be awarded the contract.
          (5) Prior compliance a factor in determining 
        responsibility.--Prior compliance of the bidder with other 
        subcontracting plans under this subsection shall be considered 
        by the procuring agency in determining the responsibility of 
        the bidder for the award of the contract.
  (d) Contents of Subcontracting Plan.--A subcontracting plan shall 
include--
          (1) percentage goals for the utilization as subcontractors of 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns;
          (2) the name of an individual within the employ of the 
        offeror or bidder who will administer the subcontracting 
        program of the offeror or bidder and a description of the 
        duties of that individual;
          (3) a description of the efforts that the offeror or bidder 
        will take to ensure that qualified HUBZone small business 
        concerns, small business concerns owned and controlled by 
        service-disabled veterans, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concerns owned and controlled by 
        veterans, small business concerns owned and controlled by 
        women, and other small business concerns will have an equitable 
        opportunity to compete for subcontracts;
          (4) assurances that the offeror or bidder will--
                  (A) include the clause required by section 24301 of 
                this title in all subcontracts that offer further 
                subcontracting opportunities; and
                  (B) require all subcontractors (except small business 
                concerns) that receive subcontracts in excess of 
                $1,000,000 in the case of a contract for the 
                construction of a public facility, or in excess of 
                $500,000 in the case of any other contract, to adopt a 
                subcontracting plan similar to the subcontracting plan 
                required under subsection (b) or (c);
          (5) assurances that the offeror or bidder will submit such 
        periodic reports and cooperate in any studies or surveys as may 
        be required by the procuring agency or the Administrator to 
        determine the extent of compliance by the offeror or bidder 
        with the subcontracting plan; and
          (6) a recitation of--
                  (A) the types of records that the successful offeror 
                or bidder will maintain to demonstrate procedures that 
                are adopted to comply with the requirements and goals 
                set forth in the subcontracting plan, including the 
                establishment of source lists of qualified HUBZone 
                small business concerns, small business concerns owned 
                and controlled by service-disabled veterans, small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals, small business 
                concerns owned and controlled by veterans, small 
                business concerns owned and controlled by women, and 
                other small business concerns; and
                  (B) efforts to identify and award subcontracts to 
                small business concerns.
  (e) Attainment of Goals.--
          (1) Attainability of goals.--A Federal agency shall ensure 
        that the goals offered by an apparent successful bidder or 
        offeror are attainable in relation to--
                  (A) the subcontracting opportunities available to the 
                contractor, commensurate with the efficient and 
                economical performance of the contract;
                  (B) the pool of eligible subcontractors available to 
                fulfill the subcontracting opportunities; and
                  (C) the actual performance of the contractor in 
                fulfilling the subcontracting goals specified in prior 
                subcontracting plans.
          (2) Credit for development assistance.--For purposes of 
        determining the attainment of a subcontract utilization goal 
        under a subcontracting plan entered into with an executive 
        agency under subsection (b) or (c), a mentor firm that provides 
        development assistance to a protege firm under the pilot 
        Mentor-Protege Program established pursuant to section 831 of 
        the National Defense Authorization Act for Fiscal Year 1991 
        (Public Law 101-510; 10 U.S.C. 2302 note) shall be granted 
        credit for the assistance in accordance with subsection (g) of 
        that section.
  (f) Bundled Contracts.--The following factors shall be designated by 
a Federal agency as significant factors for purposes of evaluating 
offers for a bundled contract if the head of the Federal agency 
determines that the contract offers a significant opportunity for 
subcontracting:
          (1) A factor that is based on the rate provided under the 
        subcontracting plan for small business participation in the 
        performance of the contract.
          (2) For the evaluation of past performance of an offeror, a 
        factor that is based on the extent to which the offeror 
        attained applicable goals for small business participation in 
        the performance of contracts.
  (g) Compliance Assistance.--The Administrator may--
          (1) assist Federal agencies and businesses in complying with 
        their responsibilities under this section, including the 
        formulation of subcontracting plans;
          (2)(A) review any solicitation for any contract to be let 
        under subsection (b) or (c) to determine the maximum 
        practicable opportunity for qualified HUBZone small business 
        concerns, small business concerns owned and controlled by 
        service-disabled veterans, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concerns, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns to 
        participate as subcontractors in the performance of any 
        contract resulting from any solicitation; and
          (B) submit findings, which shall be advisory in nature, to 
        the procuring agency; and
          (3) evaluate compliance with subcontracting plans--
                  (A) on a contract-by-contract basis; or
                  (B) in the case of a contractor having multiple 
                contracts, on an aggregate basis.
Sec. 24304. Incentives
  Notwithstanding any other provision of law, a Federal agency, to 
encourage subcontracting opportunities for qualified HUBZone small 
business concerns, small business concerns owned and controlled by 
service-disabled veterans, small business concerns owned and controlled 
by socially and economically disadvantaged individuals, small business 
concerns owned and controlled by veterans, small business concerns 
owned and controlled by women, and other small business concerns, may 
provide such incentives as the Federal agency considers appropriate to 
encourage such subcontracting opportunities as are commensurate with 
the efficient and economical performance of a contract that is let 
pursuant to the negotiated method of procurement.
Sec. 24305. Liquidated damages
  (a) Required Clause.--
          (1) In general.--A contract subject to subsection (b) or (c) 
        of section 24303 of this title shall contain a clause for the 
        payment of liquidated damages on a finding that a prime 
        contractor has failed to make a good faith effort to comply 
        with the requirements imposed on the contractor by this 
        chapter.
          (2) Inclusion in federal acquisition regulation.--The clause 
        required by paragraph (1) shall be made part of the Federal 
        Acquisition Regulation and promulgated pursuant to section 22 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        418b).
  (b) Demonstration of Good Faith Effort.--A contractor shall be 
afforded an opportunity to demonstrate a good faith effort regarding 
compliance prior to the contracting officer's final decision regarding 
the imposition of damages and the amount of damages under subsection 
(a).
  (c) Dispute Resolution.--The final decision of a contracting officer 
regarding the contractor's obligation to pay damages under subsection 
(a) or the amount of damages shall be subject to the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).
Sec. 24306. Material breach
  The failure of a contractor or subcontractor to comply in good faith 
with--
          (1) the clause required under section 24301 of this title; or
          (2) a subcontracting plan required of the contractor pursuant 
        under section 24303 of this title to be included in its 
        contract or subcontract;
shall be a material breach of the contract or subcontract.
Sec. 24307. Effect of chapter
  Nothing in this chapter supersedes the requirements of part 331 of 
title 44, Code of Federal Regulations (or any successor regulation).

                     CHAPTER 245--NOTICE PROVISIONS

Sec.
24501.  Notice provisions.
24502.  Availability of complete solicitation package.
24503.  Limited applicability to Tennessee Valley Authority.
Sec. 24501. Notice provisions
  (a) In General.--Except as provided in subsection (e)--
          (1) an executive agency intending to--
                  (A) solicit bids or proposals for a contract for 
                property or services for a price expected to exceed 
                $25,000; or
                  (B) place an order, expected to exceed $25,000, under 
                a basic agreement, basic ordering agreement, or similar 
                arrangement;
        shall publish a notice described in subsection (d);
          (2) an executive agency intending to solicit bids or 
        proposals for a contract for property or services shall post, 
        for a period of not less than 10 days, in a public place at the 
        contracting office issuing the solicitation, a notice of 
        solicitation described in subsection (d)--
                  (A) in the case of an executive agency other than the 
                Department of Defense, if the contract is for a price 
                expected to exceed $10,000, but not to exceed $25,000; 
                and
                  (B) in the case of the Department of Defense, if the 
                contract is for a price expected to exceed $5,000, but 
                not to exceed $25,000; and
          (3) an executive agency awarding a contract for property or 
        services for a price exceeding $100,000, or placing an order 
        described in paragraph (1)(B) exceeding $100,000, shall furnish 
        for publication by the Secretary of Commerce a notice 
        announcing the award or order if there is likely to be a 
        subcontract under the contract or order.
  (b) Means of Publication.--
          (1) Notices of solicitation.--A notice of solicitation 
        required to be published under subsection (a) may be published 
        by electronic means that meet the accessibility requirements 
        under section 18(a)(7) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416(a)(7)).
          (2) Notices of subcontracting opportunity.--
                  (A) In general.--A notice of subcontracting 
                opportunity may be submitted for publication by--
                          (i) a business concern awarded a contract by 
                        an executive agency subject to subsection 
                        (a)(3); and
                          (ii) a business concern that is a 
                        subcontractor or supplier (at any tier) to such 
                        a business concern having a subcontracting 
                        opportunity in excess of $10,000.
                  (B) Contents.--A notice of a subcontracting 
                opportunity shall include--
                          (i) a description of the business opportunity 
                        that is comparable to the description specified 
                        in subparagraphs (A), (B), (C), and (D) of 
                        subsection (d)(1); and
                          (ii) the due date for receipt of offers.
                  (C) Uniform implementation.--The Federal Acquisition 
                Regulation shall provide for uniform implementation of 
                this paragraph.
  (c) Limitations.--When an executive agency is required by subsection 
(a)(1) to publish a notice of solicitation, the executive agency shall 
not--
          (1) issue the solicitation earlier than 15 days after the 
        date on which the notice is published; or
          (2) in the case of a contract or order estimated to be 
        greater than the simplified acquisition threshold, establish a 
        deadline for the submission of all bids or proposals in 
        response to the notice required by subsection (a)(1) that--
                  (A) in the case of an order under a basic agreement, 
                basic ordering agreement, or similar arrangement, is 
                earlier than the date that is 30 days after the date on 
                which the notice required by subsection (a)(1)(B) is 
                published;
                  (B) in the case of a solicitation for research and 
                development, is earlier than the date that is 45 days 
                after the date on which the notice required by 
                subsection (a)(1)(A) is published; or
                  (C) in any other case, is earlier than the date that 
                is 30 days after the date on which the solicitation is 
                issued.
  (d) Contents of Notice.--
          (1) In general.--A notice of solicitation required by 
        paragraph (1) or (2) of subsection (a) shall include--
                  (A) an accurate description of the property or 
                services to be contracted for;
                  (B) provisions that--
                          (i)(I) state whether the technical data 
                        required to respond to the solicitation will 
                        not be furnished as part of the solicitation; 
                        and
                          (II) identify the source in the Government, 
                        if any, from which the technical data may be 
                        obtained; and
                          (ii)(I) state whether an offeror, its 
                        product, or service must meet a qualification 
                        requirement in order to be eligible for award; 
                        and
                          (II) if so, identify the office from which a 
                        qualification requirement may be obtained;
                  (C) the name, business address, and telephone number 
                of the contracting officer;
                  (D) a statement that all responsible sources may 
                submit a bid, proposal, or quotation (as appropriate) 
                that shall be considered by the agency;
                  (E) in the case of a procurement using procedures 
                other than competitive procedures, a statement of the 
                reason justifying the use of such procedures and the 
                identity of the intended source; and
                  (F) in the case of a contract in an amount estimated 
                to be greater than $25,000 but not greater than the 
                simplified acquisition threshold--
                          (i) a description of the procedures to be 
                        used in awarding the contract; and
                          (ii) a statement specifying the periods for 
                        prospective offerors and the contracting 
                        officer to take the necessary preaward and 
                        award actions.
          (2) Property or service description.--A property or service 
        description under paragraph (1)(A)--
                  (A) shall not be unnecessarily restrictive of 
                competition; and
                  (B) shall include, as appropriate, the agency 
                nomenclature, National Stock Number or other part 
                number, and a brief description of the item's form, 
                fit, or function, physical dimensions, predominant 
                material of manufacture, or similar information that 
                will assist a prospective contractor in making an 
                informed business judgment concerning whether the 
                prospective contractor should request a copy of the 
                solicitation.
  (e) Exempted Activities.--A notice is not required under subsection 
(a)(1) if--
          (1) the proposed procurement--
                  (A) is for an amount not greater than the simplified 
                acquisition threshold; and
                  (B) is to be conducted by--
                          (i) using widespread electronic public notice 
                        of the solicitation in a form that allows 
                        convenient and universal user access through a 
                        single, Governmentwide point of entry; and
                          (ii) permitting the public to respond to the 
                        solicitation electronically;
          (2)(A) the notice would disclose the executive agency's 
        needs; and
          (B) the disclosure of those needs would compromise the 
        national security;
          (3)(A) the proposed procurement would result from acceptance 
        of an unsolicited proposal that demonstrates a unique and 
        innovative research concept; and
          (B) the publication of a notice of the unsolicited research 
        proposal would disclose the originality of thought or 
        innovativeness of the proposal or would disclose proprietary 
        information associated with the proposal;
          (4) the proposed procurement would result from acceptance of 
        a proposal submitted under chapter 263;
          (5) the procurement is made against an order placed under a 
        requirements contract;
          (6) the procurement is made for perishable subsistence 
        supplies;
          (7)(A) the procurement is for a utility service other than a 
        telecommunication service; and
          (B) only one source is available; or
          (8) the procurement is for the service of an expert for use 
        in any litigation or dispute (including preparation for any 
        foreseeable litigation or dispute) that involves or could 
        involve the Federal Government in any trial, hearing, or 
        proceeding before any court, administrative tribunal, or 
        agency, or in any part of an alternative dispute resolution 
        process, whether or not the expert is expected to testify.
Sec. 24502. Availability of complete solicitation package
  (a) In General.--An executive agency shall make available to any 
business concern, or the authorized representative of a business 
concern, the complete solicitation package for any ongoing procurement 
announced in a notice under section 24501 of this title.
  (b) Fee.--An executive agency may require the payment of a fee, not 
exceeding the actual cost of duplication, for a copy of a solicitation 
package under subsection (a).
Sec. 24503. Limited applicability to Tennessee Valley Authority
  This chapter applies to the Tennessee Valley Authority only with 
respect to procurements to be paid from appropriated funds.

                 CHAPTER 247--NONCOMPETITIVE PROCEDURES

Sec.
24701.  Limitation on use of noncompetitive procedures.
24702.  Limited applicability to Tennessee Valley Authority.
Sec. 24701. Limitation on use of noncompetitive procedures
  (a) In General.--An executive agency may not award a contract using 
procedures other than competitive procedures unless--
          (1) except as provided in subsection (c), a written 
        justification for the use of noncompetitive procedures has been 
        approved--
                  (A) in the case of a contract for an amount exceeding 
                $100,000 (but equal to or less than $1,000,000), by the 
                advocate for competition for the procurement activity;
                  (B) in the case of a contract for an amount exceeding 
                $1,000,000 (but equal to or less than $10,000,000), by 
                the head of the procurement activity or a delegate 
                who--
                          (i) if a member of the Armed Forces, is a 
                        general or flag officer; or
                          (ii) if a civilian, is serving in a position 
                        classified above GS-15 pursuant to section 5108 
                        of title 5; or
                  (C) in the case of a contract for an amount exceeding 
                $10,000,000, by the senior procurement executive of the 
                agency designated pursuant to section 16(c) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                414(c)); and
          (2) all other requirements applicable to the use of 
        noncompetitive procedures under title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.) or chapter 137 of title 10, as appropriate, have been 
        satisfied.
  (b) Nondelegability.--The authority of an advocate for competition to 
approve the use of noncompetitive procedures under subsection (a)(1)(A) 
and the authority of a senior procurement executive to approve the use 
of noncompetitive procedures under subsection (a)(1)(C) may not be 
delegated.
  (c) Exceptions.--The same exceptions as are provided in section 
303(f)(2) of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253(f)(2)) or section 2304(f)(2) of title 10 shall 
apply with respect to the requirements of subsection (a)(1) of this 
section in the same manner as those exceptions apply to the 
requirements of section 303(f)(1) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(f)(1)) or section 
2304(f)(1) of title 10, as appropriate.
Sec. 24702. Limited applicability to Tennessee Valley Authority
  This chapter applies to the Tennessee Valley Authority only with 
respect to procurements to be paid from appropriated funds.

   CHAPTER 249--SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM

Sec.
24901.  Definitions.
24902.  Establishment of program.
24903.  Enhanced small business participation goals.
24904.  Procurement procedures.
24905.  Reporting and collection of data.
24906.  Test plan and policy direction.
Sec. 24901. Definitions
  In this chapter:
          (1) Designated industry group.--
                  (A) In general.--The term ``designated industry 
                group'' means--
                          (i) construction (excluding dredging);
                          (ii) refuse systems and related services;
                          (iii) architectural and engineering services 
                        (including surveying and mapping);
                          (iv) non-nuclear ship repair; and
                          (v) landscaping and pest control services.
                  (B) Construction.--In subparagraph (A)(i), the term 
                ``construction'' includes a contract award that is 
                assigned a North American Industry Classification 
                System code in--
                          (i) Subsector 236 (Construction of 
                        Buildings);
                          (ii) Subsector 237 (Heavy and Civil 
                        Engineering Construction) (excluding dredging); 
                        or
                          (iii) Subsector 238 (Specialty Trade 
                        Contractors).
                  (C) Refuse and related services.--In subparagraph 
                (A)(ii), the term ``refuse systems and related 
                services'' includes a contract award that is assigned--
                          (i) a North American Industry Classification 
                        System code in Subsector 562 (Waste Management 
                        and Remediation Services) except code 56291;
                          (ii) North American Industry Classification 
                        System code 48411 (index item ``local general 
                        freight trucking without storage'' only);
                          (iii) North American Industry Classification 
                        System code 48421 (index item ``household goods 
                        moving without storage'' only); or
                          (iv) North American Industry Classification 
                        System code 48422 (index item ``local 
                        specialized freight without storage'' only).
                  (D) Architectural and engineering services.--In 
                subparagraph (A)(iii), the term ``architectural and 
                engineering services (including surveying and 
                mapping)'' includes a contract award that--
                          (i) is assigned North American Industry 
                        Classification System code 54131, 54133 (except 
                        index item ``traffic engineering''), 54136 
                        (index item ``geophysical surveying services'' 
                        only), or 54137; and
                          (ii) is awarded under the qualification-based 
                        selection procedures required by sections 1101 
                        to 1104 of title 40.
                  (E) Landscaping and pest control services.--In 
                subparagraph (A)(v), the term ``landscaping and pest 
                control services'' includes a contract award that is 
                assigned North American Industry Classification System 
                code 561710 (relating to extermination and pest control 
                services) or 561730 (relating to landscaping services).
          (2) Emerging small business concern.--The term ``emerging 
        small business concern'' means a small business concern whose 
        size is not greater than 50 percent of the numerical size 
        standard applicable to the North American Industry 
        Classification System code assigned to a contracting 
        opportunity.
          (3) Enhanced small business participation goal.--The term 
        ``enhanced small business participation goal'', with respect to 
        a participating agency, means an enhanced small business 
        participation goal established for the participating agency 
        under section 24903 of this title.
          (4) Full and open competition.--The term ``full and open 
        competition'' has the meaning given the term in section 4 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 403).
          (5) Participating agency.--
                  (A) In general.--The term ``participating agency'' 
                means an executive agency (as defined in section (4) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403)) that the Administrator for Federal Procurement 
                Policy designates to participate in the program.
                  (B) Executive agencies required to be designated.--
                Under subparagraph (A), the Administrator for Federal 
                Procurement Policy shall designate to participate in 
                the program--
                          (i) the Department of Agriculture;
                          (ii) the Department of Defense (with the 
                        Department of the Army, the Department of the 
                        Navy, the Department of the Air Force, and the 
                        defense agencies reporting separately);
                          (iii) the Department of Energy;
                          (iv) the Department of Health and Human 
                        Services;
                          (v) the Department of the Interior;
                          (vi) the Department of Transportation;
                          (vii) the Environmental Protection Agency;
                          (viii) the General Services Administration 
                        (with the Public Building Service reporting 
                        separately);
                          (ix) the National Aeronautics and Space 
                        Administration; and
                          (x) the Department of Veterans Affairs.
                  (C) Reporting.--The Administrator for Federal 
                Procurement Policy may require any participating 
                agencies to report separately in any manner that the 
                Administrator for Federal Procurement Policy considers 
                appropriate to enhance the attainment of the test 
                activities authorized by this chapter.
          (6) Program.--The term ``program'' means the small business 
        competitiveness demonstration program.
          (7) Small business participation.--The term ``small business 
        participation'' includes the aggregate dollar value of every 
        procurement contract award made to a small business concern, 
        without regard to whether an award was based on restricted or 
        unrestricted competition or was made on a sole source basis.
Sec. 24902. Establishment of program
  (a) In General.--There is established a small business 
competitiveness demonstration program under section 15 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 413) to provide for the 
testing of innovative procurement methods and procedures.
  (b) Executive Agent.--The Administrator of Federal Procurement Policy 
shall designate the Administrator as the executive agent responsible 
for conducting the testing.
  (c) Purpose.--The purpose of the program is to demonstrate whether--
          (1) the competitive capabilities of small business concerns 
        in certain industry groups will enable the small business 
        concerns to compete successfully on an unrestricted basis for 
        Federal contracting opportunities;
          (2) the use of targeted goaling and management techniques by 
        procuring agencies, in conjunction with the Administrator, can 
        expand small business participation in Federal contracting 
        opportunities that have been historically low, despite adequate 
        numbers of qualified small business contractors in the economy; 
        and
          (3) expanded use of full and open competition adversely 
        affects small business participation in certain industry 
        groups, taking into consideration the numerical dominance of 
        small firms, the size and scope of most contracting 
        opportunities, and the competitive capabilities of small 
        business concerns.
  (d) Applicability.--The program shall apply to contract solicitations 
for the procurement of services in the designated industry groups.
Sec. 24903. Enhanced small business participation goals
  (a) Enhanced Goals for Designated Industry Groups.--
          (1) Establishment of goals.--A participating agency shall 
        establish an annual small business participation goal that is 
        40 percent of the dollar value of the contract awards for each 
        of the designated industry groups.
          (2) Good faith effort.--In attaining its small business 
        participation goal for contract awards for each of the 
        designated industry groups, a participating agency shall make a 
        good faith effort to ensure that emerging small business 
        concerns are awarded not less than 15 percent of the dollar 
        value of the contract awards for each of the designated 
        industry groups.
  (b) Special Assistance for Emerging Small Business Concerns.--
          (1) Small business reserve.--All contract opportunities in 
        the designated industry groups shall be reserved for exclusive 
        competition among emerging small business concerns in 
        accordance with the competition standard specified in section 
        25108 of this title if the estimated award value of the 
        contract is equal to or less than the greater of--
                  (A) $25,000; or
                  (B) such larger dollar amount as may be established 
                under paragraph (2).
          (2) Adjustments to the small business reserve.--If the goal 
        of awarding emerging small business concerns 15 percent of the 
        total dollar value of contracts in a designated industry group 
        is determined not to have been attained, on the review of award 
        data conducted in accordance with subsection (d)(1), the 
        Administrator for Federal Procurement Policy, to ensure 
        attainment of the goal, shall prescribe, on a semiannual basis, 
        appropriate adjustments to the dollar threshold for contract 
        opportunities in that designated industry group below which 
        competition shall be conducted exclusively among emerging small 
        business concerns.
          (3) Small business small purchase reserve.--The requirements 
        of this subsection dealing with the reserve amount shall apply 
        notwithstanding the amount specified in section 25108 of this 
        title.
          (4) Exclusion of modifications to existing contracts above 
        the small purchase threshold.--Any modification or follow-on 
        award to a contract having an initial award value in excess of 
        $25,000 shall not be subject to the limitations on competition 
        required by this subsection.
  (c) Targeting of Industry Groups With Limited Small Business 
Participation.--
          (1) In general.--The head of a participating agency shall 
        implement a program to expand small business participation in 
        the participating agency's acquisition of selected products and 
        services in 10 industry groups (other than the designated 
        industry groups) that have historically demonstrated low rates 
        of small business participation.
          (2) Development.--The products and services to be targeted 
        for the small business participation expansion program and the 
        special goals for the program--
                  (A) shall be developed in conjunction with the 
                Administrator; and
                  (B) shall be subject to the requirements of section 
                25106 of this title.
          (3) Products and services.--The products and services 
        selected for the small business participation expansion program 
        shall be drawn from industry groups that--
                  (A) are the recipients of substantial purchases by 
                the Federal Government;
                  (B) have less than 10 percent of such annual 
                purchases made from small business concerns; and
                  (C) have significant amounts of small business 
                productive capacity that have not been utilized by the 
                Government.
          (4) Requirements.--In developing its small business 
        participation expansion program, a participating agency shall--
                  (A) provide the Administrator a detailed, time-phased 
                strategy that includes incremental numerical goals; and
                  (B) encourage and promote joint ventures, teaming 
                agreements, and other similar arrangements that permit 
                small business concerns to compete effectively for 
                contract solicitations for which an individual small 
                business concern would lack the requisite capacity or 
                capability needed to establish responsibility for the 
                award of a contract.
  (d) Monitoring of Participating Agency Performance.--
          (1) In general.--A participating agency shall monitor the 
        attainment of its small business participation goals on an 
        annual basis. An annual review by each participating agency 
        shall be completed not later than January 31 of each year, 
        based on the data for the preceding fiscal year, from October 1 
        through September 30.
          (2) Counting of awards.--All awards to small business 
        concerns shall be counted toward attainment of the goals 
        specified in subsection (a).
          (3) Modifications.--If an annual review discloses that the 
        rate of small business participation is less than 40 percent of 
        the contract awards for a fiscal year, modifications to a 
        participating agency's solicitation practices under section 
        24904(b) of this title shall be made at the beginning of the 
        fiscal year quarter following the review.
Sec. 24904. Procurement procedures
  (a) Full and Open Competition.--
          (1) In general.--Except as provided in subsections (b) and 
        (c), a contract opportunity with an anticipated value of more 
        than $25,000 for the procurement of services from firms in a 
        designated industry group (unless set aside under chapter 233 
        of this title or section 2323 of title 10) shall be solicited 
        on an unrestricted basis if the participating agency has 
        attained its small business participation goal under section 
        24903(a) of this title.
          (2) Waiver of regulatory requirements.--Any regulatory 
        requirements that are inconsistent with paragraph (1) shall be 
        waived.
  (b) Restricted Competition.--
          (1) In general.--If a participating agency fails to attain an 
        enhanced small business participation goal, subsequent 
        contracting opportunities that are in excess of the reserve 
        thresholds specified under section 24903(b) of this title shall 
        be solicited through a competition restricted to eligible small 
        business concerns under section 25101 of this title only at the 
        buying activities of the participating agency that failed to 
        attain the enhanced small business participation goal.
          (2) Resumation of unrestricted competition.--On determining 
        that its contract awards to small business concerns again meet 
        an enhanced small business participation goal, a participating 
        agency shall promptly resume the use of unrestricted 
        solicitations under subsection (a).
          (3) Timing.--A modification in the solicitation practices of 
        a participating agency under this subsection shall be made as 
        soon as practicable, but not later than the beginning of the 
        quarter following completion of the review made under section 
        24903(d) of this title indicating that a modification to the 
        solicitation practices is required.
  (c) Relationship to Other Law.--
          (1) Competition in contracting act of 1984.--Subsections (a) 
        and (b) do not supersede the application of the Competition in 
        Contracting Act of 1984 (98 Stat. 1175) (including the 
        amendments made by that Act).
          (2) Other applicable law.--A solicitation for the award of a 
        contract for architectural or engineering service (including 
        surveying and mapping) issued by a military department or a 
        Defense agency shall comply with the requirements of 
        subsections (a) and (b) of section 2855 of title 10.
Sec. 24905. Reporting and collection of data
  (a) Awards of $25,000 or Less.--An award of $25,000 or less made by a 
participating agency for the procurement of a service in any designated 
industry group shall be reported to the Federal Procurement Data Center 
in the same manner as if the purchase were in excess of $25,000.
  (b) Size and Status of Small Business Concerns.--A participating 
agency shall collect data pertaining to the size of the small business 
concern and the status of the small business concern (as a small 
business concern owned and controlled by socially and economically 
disadvantaged individuals) that receives any award for the procurement 
of--
          (1) a service in any designated industry group; or
          (2) a product or service from an industry group selected for 
        participation in the program under section 24903(c) of this 
        title.
Sec. 24906. Test plan and policy direction
  (a) Test Plan.--The Administrator for Federal Procurement Policy may 
further specify the manner and conduct of the test activities required 
by this chapter through a test plan issued under section 15 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 413).
  (b) Policy Direction.--The Administrator for Federal Procurement 
Policy, in cooperation with the Administrator, shall issue a policy 
directive (which shall be binding on all participating agencies) to 
ensure consistent Governmentwide implementation of this chapter in the 
Federal Acquisition Regulation.

               DIVISION G--CONTRACT RESERVATION PROGRAMS

                    CHAPTER 251--GENERAL PROVISIONS

Sec.
25101.  Awards of contracts to small business concerns.
25102.  Placement of contracts by procuring agency.
25103.  Disabled individuals.
25104.  Priority for areas of concentrated unemployment or 
          underemployment and for labor surplus areas.
25105.  Procurement strategies; contract bundling.
25106.  Goals for participation by small business concerns in 
          procurement contracts.
25107.  No effect on certain small business setasides.
25108.  Mandatory contract reservation.
25109.  Offices of Small and Disadvantaged Business Utilization.
25110.  Breakout procurement center representatives.
25111.  Department of Defense, Coast Guard, and National Aeronautics and 
          Space Administration contract goals.
25112.  Actions by procurement center representatives to ensure 
          compliance.
25113.  Percentages of contract performance.
Sec. 25101. Awards of contracts to small business concerns
  (a) In General.--Subject to subsection (b), a small business concern 
shall receive any award or contract (or any part of an award or 
contract), and be awarded any contract for the sale of Government 
property, as to which the Administrator and the contracting procurement 
or disposal agency determine it to be in the interest of--
          (1) maintaining or mobilizing the Nation's full productive 
        capacity;
          (2) war or national defense programs;
          (3) ensuring that a fair proportion of the total purchases 
        and contracts for property and services for the Government in 
        each industry category are placed with small business concerns; 
        or
          (4) ensuring that a fair proportion of the total sales of 
        Government property be made to small business concerns.
  (b) No Change in Preferences or Priorities.--Nothing in this subtitle 
changes any preference or priority established by law with respect to 
the sale of electric power or other property by the Government or any 
Government agency.
  (c) Determinations.--A determination under subsection (a) may be made 
for individual awards or contracts or for classes of awards or 
contracts.
  (d) Industry Categories.--
          (1) In general.--For purposes of subsection (a)(3), an 
        industry category is a discrete group of similar goods and 
        services.
          (2) Determination.--A discrete group of similar goods and 
        services shall be determined by the Administrator in accordance 
        with the definition of a United States industry under the North 
        American Industry Classification System, as established by the 
        Office of Management and Budget, except that the Administrator 
        shall limit such an industry category to a greater extent than 
        provided under the North American Industry Classification 
        System if the Administrator receives evidence indicating that 
        further segmentation for purposes of subsection (a)(3) is 
        warranted due to special capital equipment needs or special 
        labor or geographic requirements or to recognize a new 
        industry.
          (3) Limitation.--A market for goods or services may not be 
        segmented under paragraph (2) due to geographic requirements 
        unless--
                  (A) the Government typically designates the area 
                where work for contracts for such goods or services is 
                to be performed;
                  (B) Government purchases comprise the major portion 
                of the entire domestic market for such goods or 
                services; and
                  (C) due to the fixed location of facilities, high 
                mobilization costs, or similar economic factors, it is 
                unreasonable to expect competition from business 
                concerns located outside the general areas where the 
                business concerns are located.
          (4) Segmentation of industry category of shipbuilding and 
        ship repair.--The Administrator shall segment the industry 
        category of shipbuilding and ship repair as follows:
                  (A) Nuclear shipbuilding and repair.
                  (B) Non-nuclear shipbuilding.
                  (C) Non-nuclear ship repair, which shall be further 
                segmented by, at least, east coast and west coast 
                facilities.
  (e) Avoidance of Contract Bundling.--To foster the participation of 
small business concerns in the contracting opportunities of the 
Government, a Federal agency, to the maximum extent practicable, 
shall--
          (1) foster the participation of small business concerns as 
        prime contractors, subcontractors, and suppliers;
          (2) structure its contracting requirements to facilitate 
        competition by and among small business concerns, taking all 
        reasonable steps to eliminate obstacles to participation by 
        small business concerns; and
          (3) avoid unnecessary and unjustified bundling of contract 
        requirements that precludes participation by small business in 
        procurements as prime contractors.
  (f) Proposed Procurements That Make Participation by Small Business 
Concerns Unlikely.--
          (1) Notification of small business procurement center 
        representative.--If--
                  (A)(i) a proposed procurement includes in its 
                statement of work a good or service currently being 
                performed by a small business concern; and
                  (ii) the proposed procurement is in a quantity or 
                estimated dollar value the magnitude of which renders 
                prime contract participation by small business concerns 
                unlikely;
                  (B) a proposed procurement for construction seeks to 
                package or consolidate discrete construction projects; 
                or
                  (C) a solicitation involves an unnecessary or 
                unjustified bundling of contract requirements, as 
                determined by the Administrator;
        the procurement activity shall, at least 30 days before 
        issuance of the solicitation, provide to the procurement 
        activity's small business procurement center representative a 
        copy of the proposed procurement and a statement of 
        explanation.
          (2) Contents of statement of explanation.--A statement of 
        explanation under paragraph (1) shall explain--
                  (A) why the proposed acquisition cannot be divided 
                into reasonably small lots (not less than economic 
                production runs) to permit offers on quantities less 
                than the total requirement;
                  (B) why delivery schedules cannot be established on a 
                realistic basis that will encourage participation by 
                small business concerns to the extent consistent with 
                the actual requirements of the Government;
                  (C) why the proposed acquisition cannot be offered so 
                as to make participation by small business concerns 
                likely;
                  (D) why construction cannot be procured as separate 
                discrete projects; or
                  (E) why the procurement activity determined that the 
                bundled contract is necessary and justified.
          (3) Concurrent process.--The 30-day notification process 
        shall occur concurrently with other processing steps required 
        before issuance of the solicitation.
          (4) Alternative procurement methods.--Within 15 days after 
        receipt of the proposed procurement and statement of 
        explanation, if the procurement center representative believes 
        that the procurement as proposed will render prime contract 
        participation by small business concerns unlikely, the 
        procurement center representative shall recommend to the 
        procurement activity alternative procurement methods that would 
        increase prime contracting opportunities for small business 
        concerns.
          (5) Failure to agree.--If the Administrator and the 
        contracting procurement agency fail to agree, the Administrator 
        shall appeal the matter to the head of the appropriate Federal 
        agency for determination.
  (g) Fair Market Price.--A contract may not be awarded under this 
section if the award of the contract would result in a cost to the 
procurement activity that exceeds a fair market price.
Sec. 25102. Placement of contracts by procuring agency
  With respect to any work to be performed the amount of which would 
exceed the maximum amount of a contract for which a surety may be 
guaranteed against loss under section 32102 of this title, the 
contracting procurement agency shall, to the extent practicable, place 
contracts so as to allow more than one small business concern to 
perform the work.
Sec. 25103. Disabled individuals
  (a) Definition of Committee.--In this section, the term ``Committee'' 
means the Committee for Purchase From People Who Are Blind or Severely 
Disabled established under the first section of the Act of June 25, 
1938 (41 U.S.C. 46).
  (b) Participation.--
          (1) In general.--During fiscal year 1995, public or private 
        organizations for the disabled shall be eligible to participate 
        in programs authorized under this chapter in an aggregate 
        amount not to exceed $40,000,000.
          (2) Procurement list.--None of the amounts authorized for 
        participation by paragraph (1) may be placed on the procurement 
        list maintained by the Committee under section 2 of the Act of 
        June 25, 1938 (41 U.S.C. 47).
  (c) Monitoring and Evaluation.--The Administrator shall monitor and 
evaluate participation under subsection (b).
  (d) Appeal.--
          (1) Filing.--Not later than 10 days after the announcement of 
        a proposed award of a contract by a Federal agency to a public 
        or private organization for the disabled, a for-profit small 
        business concern that has experienced or is likely to 
        experience severe economic injury as the result of the proposed 
        award may file an appeal of the proposed award with the 
        Administrator.
          (2) Alleviation of injury.--If a small business concern files 
        an appeal of a proposed award under paragraph (1) and the 
        Administrator, after consultation with the Executive Director 
        of the Committee, finds that the small business concern has 
        experienced or is likely to experience severe economic injury 
        as the result of the proposed award, not later than 30 days 
        after the filing of the appeal, the Administrator shall require 
        each Federal agency having procurement powers to take such 
        action as is appropriate to alleviate economic injury sustained 
        or likely to be sustained by the small business concern.
  (e) Maximum Amount of Awards.--
          (1) Reporting.--A Federal agency having procurement powers 
        shall report to the Office of Federal Procurement Policy each 
        time a contract subject to subsection (b) is entered into and 
        shall include in its report the amount of the next higher bid 
        submitted by a for-profit small business concern.
          (2) Data collection.--The Office of Federal Procurement 
        Policy shall collect data reported under paragraph (1) through 
        the Federal procurement data system and shall report the data 
        to the Administrator.
          (3) Notification.--The Administrator shall notify all Federal 
        agencies having procurement powers when the maximum amount of 
        awards authorized under subsection (b) has been made during any 
        fiscal year.
  (f) Contract Performance by Disabled Individuals.--A contract may be 
awarded under this section only if at least 75 percent of the direct 
labor performed on each item being produced under the contract in a 
sheltered workshop or performed in providing each type of service under 
the contract by a sheltered workshop is performed by disabled 
individuals.
  (g) Multiyear Contracts.--A Federal agency that awards one or more 
contracts to such a public or private organization for the disabled 
under this section may use multiyear contracts, if appropriate.
Sec. 25104. Priority for areas of concentrated unemployment or 
                    underemployment and for labor surplus areas
  (a) In General.--For purposes of this chapter, priority shall be 
given to the awarding of contracts and the placement of subcontracts to 
small business concerns that shall perform a substantial proportion of 
the production on the contracts and subcontracts in--
          (1) an area of concentrated unemployment or underemployment; 
        or
          (2) a labor surplus area.
  (b) Setasides.--
          (1) In general.--Notwithstanding any other provision of law, 
        total labor surplus area setasides under part 331 of title 44, 
        Code of Federal Regulations (or any successor regulation), 
        shall be authorized if the Secretary of Defense specifically 
        determines that there is a reasonable expectation that offers 
        will be obtained from a sufficient number of eligible concerns 
        so that awards will be made at reasonable prices.
          (2) Determination of labor surplus areas.--
                  (A) Consideration of persons available for 
                employment.--To the extent possible, in determining 
                labor surplus areas, consideration shall be given to 
                persons who would be available for employment were 
                suitable employment available.
                  (B) Criteria in effect.--For purposes of this 
                chapter, the determination of a labor surplus area 
                shall be made on the basis of the criteria in effect at 
                the time of the determination, except that any minimum 
                population criteria shall not exceed 25,000.
                  (C) Determination by secretary of labor.--A 
                determination of a labor surplus area shall be made by 
                the Secretary of Labor.
Sec. 25105. Procurement strategies; contract bundling
  (a) In General.--To the maximum extent practicable, procurement 
strategies used by a Federal agency having contracting authority shall 
facilitate the maximum participation of small business concerns as 
prime contractors, subcontractors, and suppliers.
  (b) Market Research.--
          (1) In general.--Before proceeding with an acquisition 
        strategy that could lead to a contract containing consolidated 
        procurement requirements, the head of a Federal agency shall 
        conduct market research to determine whether consolidation of 
        the requirements is necessary and justified.
          (2) Factors.--For purposes of paragraph (1), consolidation of 
        the requirements may be determined as being necessary and 
        justified if, as compared with the benefits that would be 
        derived from contracting to meet those requirements if not 
        consolidated, the Federal Government would derive from the 
        consolidation measurably substantial benefits, including any 
        combination of benefits that, in combination, are measurably 
        substantial.
          (3) Benefits.--Benefits described in paragraph (2) may 
        include--
                  (A) cost savings;
                  (B) quality improvements;
                  (C) reduction in acquisition cycle times;
                  (D) better terms and conditions; or
                  (E) any other benefit.
          (4) Reduction of administrative or personnel costs not a 
        sufficient justification.--A reduction of administrative or 
        personnel costs alone shall not be a justification for bundling 
        of contract requirements unless the cost savings are expected 
        to be substantial in relation to the dollar value of the 
        procurement requirements to be consolidated.
  (c) Strategy Specifications.--If the head of a procuring agency 
determines that a proposed procurement strategy for a procurement 
involves a substantial bundling of contract requirements, the proposed 
procurement strategy shall--
          (1) identify specifically the benefits anticipated to be 
        derived from the bundling of contract requirements;
          (2) set forth an assessment of the specific impediments to 
        participation by small business concerns as prime contractors 
        that result from the bundling of contract requirements and 
        specify actions designed to maximize small business 
        participation as subcontractors (including suppliers) at 
        various tiers under the contract or contracts that are awarded 
        to meet the requirements; and
          (3) include a specific determination that the anticipated 
        benefits of the proposed bundled contract justify its use.
  (d) Contract Teaming.--
          (1) In general.--In the case of a solicitation of offers for 
        a bundled contract that is issued by the head of a Federal 
        agency, a small business concern may submit an offer that 
        provides for use of a particular team of subcontractors for the 
        performance of the contract.
          (2) Evaluation.--The head of the Federal agency shall 
        evaluate the offer in the same manner as other offers, with due 
        consideration to the capabilities of all of the proposed 
        subcontractors.
          (3) No effect on status as small business concern.--Teaming 
        by a small business concern under this subsection shall not 
        affect the status of the small business concern as a small 
        business concern for any other purpose.
  (e) Database and Analysis With Respect to Bundled Contracts.--
          (1) Database.--The Administrator shall maintain a database 
        containing information regarding--
                  (A) each bundled contract awarded by a Federal 
                agency; and
                  (B) each small business concern that has been 
                displaced as a prime contractor as a result of the 
                award of a bundled contract.
          (2) Analysis.--For each bundled contract that is to be 
        recompeted as a bundled contract, the Administrator shall 
        determine--
                  (A) the amount of savings and benefits (in accordance 
                with subsection (b)) achieved under the bundling of 
                contract requirements; and
                  (B) whether such savings and benefits will continue 
                to be realized if the contract remains bundled, and 
                whether such savings and benefits would be greater if 
                the procurement requirements were divided into separate 
                solicitations suitable for award to small business 
                concerns.
          (3) Access to data.--
                  (A) Federal procurement data system.--To assist in 
                the implementation of this subsection and section 10706 
                of this title, the Administrator shall have access to 
                information collected through the Federal Procurement 
                Data System.
                  (B) Agency procurement data sources.--To assist in 
                the implementation of this subsection and section 10706 
                of this title, the head of each procuring agency shall 
                provide, on request of the Administrator, procurement 
                information collected through existing agency data 
                collection sources.
Sec. 25106.  Goals for participation by small business concerns in 
                    procurement contracts
  (a) Governmentwide Goals.--
          (1) In general.--The President shall annually establish 
        Governmentwide goals for procurement contracts awarded to small 
        business concerns (including qualified HUBZone small business 
        concerns, small business concerns owned and controlled by 
        service-disabled veterans, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concerns owned and controlled by 
        women, and other small business concerns).
          (2) Overall goal.--The overall Governmentwide goal for 
        participation by small business concerns shall be established 
        at not less than 23 percent of the total value of all prime 
        contract awards for each fiscal year.
          (3) Goals for specific types of small business concern.--
                  (A) Qualified hubzone small business concerns.--The 
                Governmentwide goal for participation by qualified 
                HUBZone small business concerns shall be established at 
                not less than 3 percent of the total value of all prime 
                contract awards for each fiscal year.
                  (B) Small business concerns owned and controlled by 
                service-disabled veterans.--The Governmentwide goal for 
                participation by small business concerns owned and 
                controlled by service-disabled veterans shall be 
                established at not less than 3 percent of the total 
                value of all prime contract and subcontract awards for 
                each fiscal year.
                  (C) Small business concerns owned and controlled by 
                socially and economically disadvantaged individuals.--
                The Governmentwide goal for participation by small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals shall be 
                established at not less than 5 percent of the total 
                value of all prime contract and subcontract awards for 
                each fiscal year.
                  (D) Small business concerns owned and controlled by 
                women.--The Governmentwide goal for participation by 
                small business concerns owned and controlled by women 
                shall be established at not less than 5 percent of the 
                total value of all prime contract and subcontract 
                awards for each fiscal year.
          (4) Federal agency goals.--
                  (A) In general.--Notwithstanding the Governmentwide 
                goal, each Federal agency shall have an annual goal 
                that presents, for that Federal agency, the maximum 
                practicable opportunity for small business concerns 
                (including qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals, small business concerns 
                owned and controlled by women, and other small business 
                concerns) to participate in the performance of 
                contracts let by the Federal agency.
                  (B) Cumulative federal agency goals to meet or exceed 
                governmentwide goal.--The Administrator and the 
                Administrator of the Office of Federal Procurement 
                Policy shall, when exercising authority under 
                subsection (b), ensure that the cumulative annual prime 
                contract goals for all Federal agencies meet or exceed 
                the annual Governmentwide prime contract goal 
                established by the President under this subsection.
          (5) Procurement procedures.--
                  (A) In general.--To facilitate the attainment of a 
                goal for the participation of small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals that is established for a 
                Federal agency under this subsection, the head of the 
                Federal agency may enter into contracts using--
                          (i) less than full and open competition by 
                        restricting the competition for such awards to 
                        small business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals; and
                          (ii) a price evaluation preference not in 
                        excess of 10 percent when evaluating an offer 
                        received from a small business concern owned 
                        and controlled by socially and economically 
                        disadvantaged individuals as the result of an 
                        unrestricted solicitation.
                  (B) Applicability.--Subparagraph (A) does not apply 
                to the Department of Defense, the Coast Guard, or the 
                National Aeronautics and Space Administration.
                  (C) Implementation through the federal acquisition 
                regulation.--
                          (i) In general.--The Federal Acquisition 
                        Regulation shall provide for uniform 
                        implementation of the authority provided in 
                        subparagraph (A).
                          (ii) Matters to be addressed.--The provisions 
                        of the Federal Acquisition Regulation under 
                        clause (i) shall include--
                                  (I) conditions for the use of advance 
                                payments;
                                  (II) provisions for contract payment 
                                terms that provide for--
                                          (aa) accelerated payment for 
                                        work performed during the 
                                        period for contract 
                                        performance; and
                                          (bb) full payment for work 
                                        performed;
                                  (III) guidance on how contracting 
                                officers may use, in solicitations for 
                                various classes of products or 
                                services, a price evaluation preference 
                                under subparagraph (A)(ii), to provide 
                                a reasonable advantage to small 
                                business concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals without 
                                effectively eliminating any 
                                participation of other small business 
                                concerns; and
                                  (IV)(aa) procedures for a person to 
                                request the head of a Federal agency to 
                                determine whether the use of 
                                competitions restricted to small 
                                business concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals at a 
                                contracting activity of the Federal 
                                agency has caused a particular industry 
                                category to bear a disproportionate 
                                share of the contracts awarded to 
                                attain the goal established for that 
                                contracting activity; and
                                  (bb) guidance for limiting the use of 
                                such restricted competitions in the 
                                case of any contracting activity and 
                                class of contracts determined in 
                                accordance with such procedures to have 
                                caused a particular industry category 
                                to bear a disproportionate share of the 
                                contracts awarded to attain the goal 
                                established for that contracting 
                                activity.
                  (D) Termination.--This paragraph shall cease to be 
                effective at the end of September 30, 2003.
  (b) Federal Agency Goals.--
          (1) In general.--The Administrator and the head of each 
        Federal agency shall jointly establish goals for the 
        participation by small business concerns (including qualified 
        HUBZone small business concerns, small business concerns owned 
        and controlled by service-disabled veterans, small business 
        concerns owned and controlled by socially and economically 
        disadvantaged individuals, small business concerns owned and 
        controlled by women, and other small business concerns) in 
        procurement contracts of the Federal agency.
          (2) Requirements.--The goals of a Federal agency established 
        under paragraph (1) shall--
                  (A) present, for that Federal agency, the maximum 
                practicable opportunity for small business concerns 
                (including qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals, small business concerns 
                owned and controlled by women, and other small business 
                concerns) to participate in the performance of 
                contracts let by the Federal agency; and
                  (B) realistically reflect the potential of qualified 
                HUBZone small business concerns, small business 
                concerns owned and controlled by service-disabled 
                veterans, small business concerns owned and controlled 
                by socially and economically disadvantaged individuals, 
                small business concerns owned and controlled by women, 
                and other small business concerns to perform such 
                contracts and to perform subcontracts under such 
                contracts.
          (3) Disagreement.--If the Administrator and the head of a 
        Federal agency fail to agree on established goals, the 
        disagreement shall be submitted to the Administrator for 
        Federal Procurement Policy for final determination.
          (4) Expansion of participation.--
                  (A) In general.--For the purpose of establishing 
                goals under this section, the head of a Federal agency 
                shall make consistent efforts to annually expand 
                participation by small business concerns from each 
                industry category in procurement contracts of the 
                agency, including participation by qualified HUBZone 
                small business concerns, small business concerns owned 
                and controlled by service-disabled veterans, small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals, and small 
                business concerns owned and controlled by women.
                  (B) Considerations.--The head of a Federal agency, in 
                attempting to attain such participation, shall 
                consider--
                          (i) contracts awarded as the result of 
                        unrestricted competition; and
                          (ii) contracts awarded after competition 
                        restricted to eligible small business concerns 
                        under this chapter and under the business 
                        development program.
  (c) Reporting by Federal Agencies.--
          (1) In general.--At the end of each fiscal year, the head of 
        a Federal agency shall submit to the Administrator a report on 
        the extent of participation by small business concerns 
        (including qualified HUBZone small business concerns, small 
        business concerns owned and controlled by service-disabled 
        veterans, small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, small 
        business concerns owned and controlled by veterans, small 
        business concerns owned and controlled by women, and other 
        small business concerns) in procurement contracts of the 
        Federal agency.
          (2) Contents.--A report under paragraph (1) shall contain 
        appropriate justifications for failure to meet the goals under 
        this section.
Sec. 25107. No effect on certain small business setasides
  (a) In General.--Nothing in this chapter or any other provision of 
law precludes exclusive small business setasides for procurements of 
architectural and engineering services, research, development, test, 
and evaluation.
  (b) Authority.--A Federal agency may develop setasides described in 
subsection (a) to further the interests of small business in the areas 
described in that subsection.
Sec. 25108. Mandatory contract reservation
  (a) In General.--A contract for the purchase of a good or service 
that has an anticipated value greater than $2,500 but not greater than 
$100,000 shall be reserved exclusively for small business concerns 
unless the contracting officer is unable to obtain offers from 2 or 
more small business concerns that are--
          (1) competitive with market prices; and
          (2) competitive with regard to the quality and delivery of 
        the good or service being purchased.
  (b) Consideration of Timely Offers.--In carrying out subsection (a), 
a contracting officer shall consider a responsive offer timely received 
from an eligible small business concern offeror.
  (c) Effect of Section.--Nothing in this section precludes an award of 
a contract with a value not greater than $100,000 under--
          (1) division B of this subtitle;
          (2) section 2323 of title 10;
          (3) section 24903 of this title; or
          (4) section 25106(a)(4) of this title.
Sec. 25109. Offices of Small and Disadvantaged Business Utilization
  (a) Definitions.--In this section:
          (1) Director.--The term ``Director'' means the Director of 
        Small and Disadvantaged Business Utilization of a Federal 
        agency appointed under subsection (c).
          (2) Office.--The term ``Office'' means the Office of Small 
        and Disadvantaged Business Utilization of a Federal agency 
        established by subsection (b).
  (b) Establishment of Offices.--There is established in each Federal 
agency having procurement powers an office to be known as the Office of 
Small and Disadvantaged Business Utilization.
  (c) Director.--
          (1) In general.--The management of an Office shall be vested 
        in an officer or employee of the Federal agency, appointed by 
        the head of the Federal agency, who shall be known as the 
        Director of Small and Disadvantaged Business Utilization for 
        the Federal agency.
          (2) Line of authority.--The Director for a Federal agency 
        shall be responsible only to, and report directly to, the head 
        or deputy head of the Federal agency, except that the Director 
        in the Department of Defense shall be responsible only to, and 
        report directly to, the Secretary of Defense or any other 
        designee of the Secretary.
  (d) General Responsibilities.--The Director for a Federal agency 
shall be responsible for the implementation and execution of the 
functions and duties under this chapter and divisions E and F that 
relate to the Federal agency.
  (e) Duties.--The Director for a Federal agency shall--
          (1)(A) identify proposed solicitations that involve 
        significant bundling of contract requirements; and
          (B) work with the agency acquisition officials and the 
        Administrator to revise the procurement strategies for such 
        proposed solicitations where appropriate to increase the 
        probability of participation by small business concerns as 
        prime contractors or to facilitate small business concern 
        participation as subcontractors and suppliers, if a 
        solicitation for a bundled contract is to be issued; and
          (2) assist small business concerns in obtaining payments, 
        required late payment interest penalties, or information 
        regarding payments due to small business concerns from an 
        executive agency or a contractor, in conformity with chapter 39 
        of title 31 or any other protection for contractors or 
        subcontractors (including suppliers) that is included in the 
        Federal Acquisition Regulation or any individual agency 
        supplement to the Governmentwide regulation.
  (f) Supervisory Authority.--The Director for a Federal agency shall 
have supervisory authority over personnel of the Federal agency to the 
extent that the functions and duties of those personnel relate to 
functions and duties under this chapter and divisions E and F.
  (g) Small Business Technical Advisers.--
          (1) Assignment.--The Director for a Federal agency shall 
        assign a small business technical adviser to each office to 
        which the Administrator assigns a procurement center 
        representative.
          (2) Qualifications.--A small business technical adviser--
                  (A) shall be a full-time employee of the procurement 
                activity; and
                  (B) shall be well qualified, technically trained, and 
                familiar with the goods or services purchased at the 
                procurement activity.
          (3) Principal duty.--The principal duty of a small business 
        technical adviser shall be to assist the Administration 
        procurement center representative in carrying out duties and 
        functions relating to this chapter and divisions E and F.
  (h) Cooperation and Consultation.--The Director for a Federal agency 
shall cooperate, and consult on a regular basis, with the Administrator 
with respect to carrying out the functions and duties described in 
subsection (d).
  (i) Recommendations Concerning Award of Contracts.--
          (1) In general.--The Director for a Federal agency shall make 
        recommendations to contracting officers concerning whether a 
        particular contract requirement should be awarded pursuant to 
        section 25101 of this title, division E of this subtitle, or 
        section 2323 of title 10.
          (2) Considerations.--A recommendation under paragraph (1) 
        shall be made with due regard to the requirements of sections 
        25111 and 25112 of this title.
          (3) Documentation of failure to accept recommendation.--The 
        failure of a contracting officer to accept a recommendation 
        under paragraph (1) shall be documented and included within the 
        appropriate contract file.
  (j) Applicability of Section.--This section does not apply to the 
Administration.
Sec. 25110. Breakout procurement center representatives
  (a) Definition of Major Procurement Center.--In this section, the 
term ``major procurement center'' means a procurement center that--
          (1) in the opinion of the Administrator, purchases 
        substantial dollar amounts of other than commercial items; and
          (2) has the potential to incur significant savings as the 
        result of the assignment of a breakout procurement center 
        representative.
  (b) Assignment of Breakout Procurement Center Representatives.--
          (1) In general.--The Administration shall assign to each 
        major procurement center a breakout procurement center 
        representative with such assistance as may be appropriate.
          (2) Additional position.--A breakout procurement center 
        representative shall be in addition to the procurement center 
        representative referred to in section 25109(g)(1) of this 
        title.
  (c) Advocacy.--A breakout procurement center representative shall be 
an advocate for--
          (1) the breakout of items for procurement through full and 
        open competition, whenever appropriate, while maintaining the 
        integrity of the system in which items are used; and
          (2) the use of full and open competition, whenever 
        appropriate, for the procurement of goods and services by a 
        major procurement center.
  (d) Functions.--In addition to carrying out the responsibilities 
assigned by the Administrator, a breakout procurement center 
representative may--
          (1)(A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        concerning whether requirements are to be procured through 
        other than full and open competition; and
          (B) make recommendations with respect to those requirements 
        to the members of the conference or session;
          (2)(A) review, at any time, restrictions on competition 
        previously imposed on items through acquisition method coding 
        or similar procedures; and
          (B) recommend to personnel of the appropriate activity the 
        prompt reevaluation of such limitations;
          (3)(A) review restrictions on competition arising out of 
        restrictions on the rights of the United States in technical 
        data; and
          (B) when appropriate, recommend that personnel of the 
        appropriate activity initiate a review of the validity of such 
        an asserted restriction;
          (4) obtain from any governmental source, and make available 
        to personnel of the appropriate activity, technical data 
        necessary for the preparation of a competitive solicitation 
        package for any item of a good or service previously procured 
        noncompetitively due to the unavailability of such technical 
        data;
          (5) have access to procurement records and other data of the 
        major procurement center commensurate with the level of the 
        breakout procurement center representative's approved security 
        clearance classification;
          (6)(A) receive unsolicited engineering proposals; and
          (B) when appropriate--
                  (i)(I) conduct a value analysis of a proposal to 
                determine whether the proposal, if adopted, will result 
                in lower costs to the United States without 
                substantially impeding legitimate acquisition 
                objectives; and
                  (II) forward to personnel of the appropriate activity 
                recommendations with respect to the proposal; or
                  (ii) forward a proposal without analysis to personnel 
                of the activity responsible for reviewing such 
                proposals, which personnel shall furnish the breakout 
                procurement center representative with information 
                regarding the disposition of the proposal; and
          (7) review the systems that account for the acquisition and 
        management of technical data within the major procurement 
        center to ensure that the systems provide the maximum 
        availability and access to data that--
                  (A) are needed for the preparation of offers to sell 
                to the United States the goods and services to which 
                the data pertain; and
                  (B) potential offerors are entitled to receive.
  (e) Appeal of Failure To Act Favorably on Recommendation.--
          (1) In general.--A breakout procurement center representative 
        may appeal the failure to act favorably on any recommendation 
        made under subsection (d).
          (2) Procedure.--An appeal under paragraph (1) shall be filed 
        and processed in the same manner and shall be subject to the 
        same conditions and limitations as an appeal filed by the 
        Administrator under section 25101(f)(5) of this title.
  (f) Small Business Technical Advisers.--
          (1) In general.--The Administrator shall assign and co-locate 
        at least 2 small business technical advisers to each major 
        procurement center in addition to such other advisers as may be 
        authorized from time to time.
          (2) Duties.--The sole duties of small business technical 
        advisers assigned under paragraph (1) shall be--
                  (A) to assist the breakout procurement center 
                representative for the center to which the small 
                business technical advisers are assigned in carrying 
                out the functions described in subsection (d); and
                  (B) to assist the procurement center representative 
                for each office to which the Administrator assigns a 
                procurement center representative.
  (g) Status; Qualifications.--
          (1) In general.--A breakout procurement center representative 
        and a small business technical adviser--
                  (A) shall be full-time employees of the 
                Administration; and
                  (B) shall be fully qualified, technically trained, 
                and familiar with the goods and services procured by 
                the major procurement center to which the individual is 
                assigned.
          (2) Accredited engineer.--In addition to the requirements of 
        paragraph (1), a breakout procurement center representative and 
        at least one small business technical adviser assigned under 
        this section shall be accredited engineers.
  (h) Personnel Positions.--The Administrator shall establish personnel 
positions for breakout procurement representatives and small business 
technical advisers assigned under this section that are classified at a 
grade level of the General Schedule sufficient to attract and retain 
highly qualified personnel.
  (i) Familiarization Sessions.--
          (1) In general.--At such times as the Administrator considers 
        appropriate, a breakout procurement center representative shall 
        conduct familiarization sessions for contracting officers and 
        other appropriate personnel of the major procurement center to 
        which the breakout procurement center representative is 
        assigned.
          (2) Purpose.--A familiarization session shall acquaint the 
        participants with, and instruct the participants in methods 
        designed to further the purposes of, this section.
  (j) Briefing and Report.--
          (1) In general.--A breakout procurement center representative 
        shall prepare and personally deliver an annual briefing and 
        report to the head of the major procurement center to which the 
        breakout procurement center representative is assigned.
          (2) Contents.--A briefing and report under paragraph (1) 
        shall--
                  (A) detail the past and planned activities of the 
                breakout procurement center representative; and
                  (B) contain such recommendations for improvement in 
                the operation of the major procurement center as may be 
                appropriate.
          (3) Response.--The head of the major procurement center 
        shall--
                  (A) personally receive the briefing and report; and
                  (B) not later than 60 calendar days after receipt, 
                respond, in writing, to each recommendation made by the 
                breakout procurement center representative.
  (k) Standards for Measuring Cost Savings From Breakout Procurement 
Center Representatives.--The Administrator and the Comptroller General 
shall jointly establish standards for measuring--
          (1) cost savings achieved through the efforts of breakout 
        procurement center representatives; and
          (2) the extent to which competition has been increased as a 
        result of those efforts.
Sec. 25111. Department of Defense, Coast Guard, and National 
                    Aeronautics and Space Administration contract goals
  A Federal agency subject to the requirements of section 2323 of title 
10 shall, when implementing those requirements--
          (1) establish policies and procedures that ensure that there 
        will be no reduction in the number or dollar value of contracts 
        awarded under this chapter or division E to achieve any goal or 
        other program objective; and
          (2) ensure that those requirements will not alter or change 
        the procurement process used to implement this chapter or 
        division E.
Sec. 25112. Actions by procurement center representatives to ensure 
                    compliance
  A procurement center representative assigned under section 25109 or 
25110 of this title, in addition to such other duties as the 
Administrator may assign, shall--
          (1) monitor the performance of the procurement activities to 
        which the procurement center representative is assigned to 
        ascertain the degree of compliance with the requirements of 
        section 25111 of this title;
          (2) report to the procurement center representative's 
        immediate supervisors all instances of noncompliance with those 
        requirements; and
          (3) increase, insofar as possible, the number and dollar 
        value of procurements that may be used for the programs 
        established under this chapter, division E of this subtitle, 
        and section 2323 of title 10.
Sec. 25113. Percentages of contract performance
  (a) In General.--A concern may not be awarded a contract under 
section 25101 of this title as a small business concern unless the 
concern agrees that--
          (1) in the case of a contract for services (except 
        construction), at least 50 percent of the cost of contract 
        performance incurred for personnel shall be expended for 
        employees of the concern;
          (2) in the case of a contract for procurement of goods (other 
        than procurement from a regular dealer in such goods), the 
        concern will perform work for at least 50 percent of the cost 
        of manufacturing the goods (not including the cost of 
        materials).
  (b) Change in Percentage.--The Administrator may change the 
percentage under paragraph (1) or (2) of subsection (a) if the 
Administrator determines that a change is necessary to reflect 
conventional industry practices among business concerns that are below 
the numerical size standard for businesses in that industry category.
  (c) Requirements Applicable to Other Contracts.--The Administrator 
shall establish, through public rulemaking, requirements similar to 
those specified in subsection (a) to be applicable to contracts for 
general and specialty construction and to contracts for any other 
industry category not otherwise subject to the requirements of that 
subsection. The percentage applicable to any such requirement shall be 
determined in accordance with subsection (b).

                      CHAPTER 253--HUBZONE PROGRAM

Sec.
25301.  Definitions.
25302.  Establishment of HUBZone program.
25303.  Sole source contracts.
25304.  Restricted competition.
25305.  Appeal of decision not to award contract.
25306.  Price evaluation preference in full and open competition.
25307.  Relationship to other contracting preferences.
25308.  Verification of eligibility.
25309.  Regulations.
25310.  List of qualified HUBZone small business concerns.
25311.  Penalties.
Sec. 25301. Definitions
  In this chapter:
          (1) Base closure area.--The term ``base closure area'' means 
        land within the external boundaries of a military installation 
        that was closed through a privatization process under--
                  (A) the Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of division B of Public Law 
                101-510; 10 U.S.C. 2687 note);
                  (B) title II of the Defense Authorization Amendments 
                and Base Closure and Realignment Act (Public Law 100-
                526; 10 U.S.C. 2687 note);
                  (C) section 2687 of title 10; or
                  (D) any other provision of law authorizing or 
                directing the Secretary of Defense or the Secretary of 
                a military department to dispose of real property at 
                the military installation for purposes relating to base 
                closures or redevelopment, while retaining the 
                authority to enter into a leaseback of all or a portion 
                of the property for military use.
          (2) Full and open competition.--The term ``full and open 
        competition'' has the meaning given the term in section 4 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 403).
          (3) Historically underutilized business zone.--The term 
        ``historically underutilized business zone'' means an area 
        located within one or more--
                  (A) qualified census tracts;
                  (B) qualified nonmetropolitan counties;
                  (C) areas of land within the external boundaries of 
                an Indian reservation;
                  (D) redesignated areas; or
                  (E) base closure areas (until the date that is 5 
                years after the date of final closure of a base closure 
                area).
          (4) HUBZone.--The term ``HUBZone'' means a historically 
        underutilized business zone.
          (5) HUBZone small business concern.--The term ``HUBZone small 
        business concern'' means--
                  (A) a small business concern that is at least 51 
                percent owned and controlled by United States citizens;
                  (B) a small business concern that is--
                          (i) an Alaska Native Corporation owned and 
                        controlled by Natives (as determined under 
                        section 29(e)(1) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1626(e)(1))); or
                          (ii) a direct or indirect subsidiary 
                        corporation, joint venture, or partnership of 
                        an Alaska Native Corporation qualifying under 
                        section 29(e)(1) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1626(e)(1)), if that 
                        subsidiary, joint venture, or partnership is 
                        owned and controlled by Natives (as determined 
                        under section 29(e)(2) of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 1626(e)(2)));
                  (C) a small business concern--
                          (i) that is wholly owned by one or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by one or more Indian 
                        tribal governments; or
                          (ii) that is owned in part by one or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by one or more Indian 
                        tribal governments, if all other owners are 
                        either United States citizens or small business 
                        concerns;
                  (D) a small business concern that is--
                          (i) wholly owned by a community development 
                        corporation that has received financial 
                        assistance under part 1 of subchapter A of the 
                        Community Economic Development Act of 1981 (42 
                        U.S.C. 9805 et seq.); or
                          (ii) owned in part by one or more community 
                        development corporations, if all other owners 
                        are either United States citizens or small 
                        business concerns; or
                  (E) a small business concern that is--
                          (i) a small agricultural cooperative 
                        organized or incorporated in the United States;
                          (ii) wholly owned by one or more small 
                        agricultural cooperatives organized or 
                        incorporated in the United States; or
                          (iii) owned in part by one or more small 
                        agricultural cooperatives organized or 
                        incorporated in the United States, if all 
                        owners are small business concerns or United 
                        States citizens.
          (6) Program.--The term ``program'' means the HUBZone program.
          (7) Qualified hubzone small business concern.--
                  (A) In general.--The term ``qualified HUBZone small 
                business concern'' means a small business concern--
                          (i) that certifies in writing to the 
                        Administrator (or with respect to which the 
                        Administrator otherwise determines, based on 
                        information submitted to the Administrator by 
                        the small business concern, or based on 
                        certification procedures established under 
                        section 25309 of this title) that--
                                  (I) it is a HUBZone small business 
                                concern--
                                          (aa) under subparagraph (A), 
                                        (B), (C), (D), or (E) of 
                                        paragraph (5), and its 
                                        principal office is located in 
                                        a HUBZone and not fewer than 35 
                                        percent of its employees reside 
                                        in a HUBZone; or
                                          (bb) under paragraph (5)(C), 
                                        and not fewer than 35 percent 
                                        of its employees engaged in 
                                        performing a contract awarded 
                                        to the small business concern 
                                        on the basis of a preference 
                                        provided under the HUBZone 
                                        program reside within any 
                                        Indian reservation governed by 
                                        one or more of the tribal 
                                        government owners, or reside 
                                        within any HUBZone adjoining 
                                        any such Indian reservation;
                                  (II) the small business concern will 
                                attempt to maintain the applicable 
                                employment percentage under subclause 
                                (I) during the performance of any 
                                contract awarded to the small business 
                                concern on the basis of a preference 
                                provided this chapter; and
                                  (III) with respect to any subcontract 
                                entered into by the small business 
                                concern under a contract awarded to the 
                                small business concern under this 
                                chapter, the small business concern 
                                will ensure that--
                                          (aa) in the case of a 
                                        contract for a service (except 
                                        construction), not less than 50 
                                        percent of the cost of contract 
                                        performance incurred for 
                                        personnel will be expended for 
                                        its employees or for employees 
                                        of other HUBZone small business 
                                        concerns;
                                          (bb) in the case of a 
                                        contract for procurement of a 
                                        supply (other than procurement 
                                        from a regular dealer in the 
                                        supply), not less than 50 
                                        percent of the cost of 
                                        manufacturing the supply (not 
                                        including the cost of material) 
                                        will be incurred in connection 
                                        with the performance of the 
                                        contract in a HUBZone by one or 
                                        more HUBZone small business 
                                        concerns;
                                          (cc) in the case of a 
                                        contract for general or 
                                        specialty construction or a 
                                        contract for any other industry 
                                        category that is not otherwise 
                                        subject to the requirements of 
                                        item (aa) or (bb), the small 
                                        business concern meets 
                                        requirements established by 
                                        regulation under section 
                                        25309(b) of this title; and
                                          (dd) in the case of a 
                                        contract for the procurement by 
                                        the Secretary of Agriculture of 
                                        an agricultural commodity, none 
                                        of the commodity being procured 
                                        will be obtained by the prime 
                                        contractor through a 
                                        subcontract for the purchase of 
                                        the commodity in substantially 
                                        the final form in which it is 
                                        to be supplied to the 
                                        Government; and
                          (ii) with respect to which no certification 
                        made or information provided by the small 
                        business concern under clause (i) has been, in 
                        accordance with the procedures established 
                        under section 25308 of this title--
                                  (I) successfully challenged by an 
                                interested party; or
                                  (II) otherwise determined by the 
                                Administrator to be materially false.
                  (B) Change in percentages.--The Administrator may 
                utilize a percentage other than the percentage 
                specified in item (aa) or (bb) of subparagraph 
                (A)(i)(III) if the Administrator determines that such 
                action is necessary to reflect conventional industry 
                practices among small business concerns that are below 
                the numerical size standard for businesses in that 
                industry category.
          (8) Qualified nonmetropolitan county.--The term ``qualified 
        nonmetropolitan county'' means a county--
                  (A) that was not located in a metropolitan 
                statistical area (as defined in section 143(k)(2)(B) of 
                the Internal Revenue Code of 1986 (26 U.S.C. 
                143(k)(2)(B))) at the time of the most recent census 
                taken for purposes of selecting qualified census tracts 
                under section 42(d)(5)(C)(ii) of the Internal Revenue 
                Code of 1986 (26 U.S.C. 42(d)(5)(C)(ii)); and
                  (B) in which--
                          (i) the median household income is less than 
                        80 percent of the nonmetropolitan State median 
                        household income, based on the most recent data 
                        available from the Bureau of the Census of the 
                        Department of Commerce;
                          (ii) the unemployment rate is not less than 
                        140 percent of the average unemployment rate 
                        for the United States or for the State in which 
                        the county is located, whichever is less, based 
                        on the most recent data available from the 
                        Secretary of Labor; or
                          (iii) there is located a difficult 
                        development area, as designated by the 
                        Secretary of Housing and Urban Development in 
                        accordance with section 42(d)(5)(C)(iii) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)(5)(C)(iii)), within Alaska, Hawaii, or 
                        any territory or possession of the United 
                        States outside the 48 contiguous States.
          (9) Redesignated area.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``redesignated area'' means--
                          (i) a census tract that was, but ceases to 
                        be, a qualified census tract; and
                          (ii) a nonmetropolitan county that was, but 
                        ceases to be, a qualified nonmetropolitan 
                        county.
                  (B) Limitation.--A census tract or nonmetropolitan 
                county described in subparagraph (A) shall cease to be 
                a redesignated area on the later of--
                          (i) the date on which the Bureau of the 
                        Census publicly releases the first results from 
                        the 2010 decennial census; or
                          (ii) 3 years after the date on which the 
                        census tract or nonmetropolitan county ceases 
                        to be a qualified census tract or qualified 
                        nonmetropolitan county.
Sec. 25302. Establishment of HUBZone program
  There is established within the Administration a program to be 
carried out by the Administrator, to be known as the HUBZone program, 
to provide for Federal contracting assistance to qualified HUBZone 
small business concerns in accordance with this chapter.
Sec. 25303. Sole source contracts
  Notwithstanding any other provision of law, a contracting officer may 
award a sole source contract under the program to a qualified HUBZone 
small business concern if--
          (1) the contracting officer or the Administrator determines 
        that the qualified HUBZone small business concern is a 
        responsible contractor with respect to performance of the 
        contract opportunity;
          (2) the contracting officer does not have a reasonable 
        expectation that 2 or more qualified HUBZone small business 
        concerns will submit offers for the contracting opportunity;
          (3) the anticipated award price of the contract (including 
        options) will not exceed--
                  (A) $5,500,000 (subject to adjustment under section 
                35A of the Office of Federal Procurement Policy Act (41 
                U.S.C. 431a)), in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $3,500,000 (subject to adjustment under section 
                35A of the Office of Federal Procurement Policy Act (41 
                U.S.C. 431a)), in the case of all other contract 
                opportunities; and
          (4) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price.
Sec. 25304. Restricted competition
  Notwithstanding any other law, a contract opportunity shall be 
awarded under the program on the basis of competition restricted to 
qualified HUBZone small business concerns if the contracting officer 
has a reasonable expectation that--
          (1) not fewer than 2 qualified HUBZone small business 
        concerns will submit offers; and
          (2) the award can be made at a fair market price.
Sec. 25305. Appeal of decision not to award contract
  Notwithstanding any other law, not later than 5 days after the date 
on which the Administrator is notified of a decision by a contracting 
officer of a Federal agency not to award a contract opportunity under 
the program to a qualified HUBZone small business concern, the 
Administrator may notify the contracting officer of the intent to 
appeal the contracting officer's decision, and within 15 days after 
that date the Administrator may file a written request for 
reconsideration of the contracting officer's decision with the head of 
the Federal agency.
Sec. 25306. Price evaluation preference in full and open competition
  (a) In General.--Subject to subsection (b), in a case in which a 
contract is to be awarded on the basis of full and open competition, 
the price offered by a qualified HUBZone small business concern shall 
be deemed to be lower than the price offered by another offeror (other 
than another small business concern) if the price offered by the 
qualified HUBZone small business concern is not more than 10 percent 
higher than the price offered by the otherwise lowest, responsive, and 
responsible offeror.
  (b) Agricultural Commodities.--
          (1) In general.--In the case of a purchase by the Secretary 
        of Agriculture of agricultural commodities, the price 
        evaluation preference shall be--
                  (A) 10 percent for the portion of a contract to be 
                awarded that is not greater than 25 percent of the 
                total volume being procured for each agricultural 
                commodity in a single invitation;
                  (B) 5 percent for the portion of a contract to be 
                awarded that is greater than 25 percent, but not 
                greater than 40 percent, of the total volume being 
                procured for each agricultural commodity in a single 
                invitation; and
                  (C) zero, for the portion of a contract to be awarded 
                that is greater than 40 percent of the total volume 
                being procured for each agricultural commodity in a 
                single invitation.
          (2) Treatment of preference.--A contract awarded to a 
        qualified HUBZone small business concern under a preference 
        described in paragraph (1) shall not be counted toward the 
        fulfillment of any requirement partially set aside for 
        competition restricted to small business concerns.
          (3) International food aid export operations.--The price 
        evaluation preference for a purchase of an agricultural 
        commodity by the Secretary of Agriculture for export operations 
        through an international food aid program administered by the 
        Farm Service Agency shall be 5 percent on the first portion of 
        a contract to be awarded that is not greater than 20 percent of 
        the total volume of each agricultural commodity being procured 
        in a single invitation.
Sec. 25307. Relationship to other contracting preferences
  A procurement may not be made from a source on the basis of a 
preference under the program if the procurement would otherwise be made 
from a different source under--
          (1) section 4124 or 4125 of title 18; or
          (2) the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
Sec. 25308. Verification of eligibility
  (a) In General.--In carrying out this chapter, the Administrator 
shall establish procedures relating to--
          (1) the filing, investigation, and disposition by the 
        Administrator of any challenge to the eligibility of a small 
        business concern to receive assistance under the program 
        (including a challenge, filed by an interested party, relating 
        to the veracity of a certification made or information provided 
        to the Administrator by a small business concern under section 
        25301(7) of this title); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the 
        Administration by a small business concern under section 
        25301(7) of this title.
  (b) Examinations.--The procedures established under subsection (a) 
may provide for program examinations (including random program 
examinations) by the Administrator of any small business concern making 
a certification or providing information to the Administrator under 
section 25301(7) of this title.
  (c) Provision of Data.--On the request of the Administrator, the 
Secretary of Labor, the Secretary of Housing and Urban Development, and 
the Secretary of the Interior (or the Assistant Secretary for Indian 
Affairs) shall promptly provide to the Administrator such information 
as the Administrator determines to be necessary to carry out this 
section.
Sec. 25309. Regulations
  (a) Certification Procedures.--The Administrator shall by regulation 
establish procedures for the certification of a small business concern 
as a qualified HUBZone small business concern.
  (b) Construction Contracts and Other Contracts.--The Administrator 
shall by regulation establish requirements that are similar to the 
requirements specified in items (aa) and (bb) of section 
25301(7)(A)(i)(III) of this title on contracts for general and 
specialty construction and contracts for any other industry category 
that would not otherwise be subject to those requirements. The 
percentage applicable to any such requirement shall be determined in 
accordance with section 25301(7)(B) of this title.
Sec. 25310. List of qualified HUBZone small business concerns
  The Administrator shall establish and maintain a list of qualified 
HUBZone small business concerns, which list, to the extent 
practicable--
          (1) after the Administrator makes the certification required 
        by section 25301(7)(A)(i) of this title regarding a qualified 
        HUBZone small business concern and determines that subparagraph 
        section 25301(7)(A)(ii) of this title does not apply to that 
        qualified HUBZone small business concern, shall include the 
        name, address, and type of business with respect to each such 
        small business concern;
          (2) shall be updated by the Administrator not less than 
        annually; and
          (3) on request, shall be provided to any Federal agency or 
        other entity.
Sec. 25311. Penalties
  In addition to the penalties described in section 10504 of this 
title, a small business concern that is determined by the Administrator 
to have misrepresented the status of that small business concern as a 
HUBZone small business concern for purposes of this section shall be 
subject to--
          (1) section 1001 of title 18; and
          (2) sections 3729 to 3733 of title 31.

 CHAPTER 255--SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY SERVICE-
                           DISABLED VETERANS

Sec.
25501.  Sole source contracts.
25502.  Restricted competition.
25503.  Relationship to other contracting preferences.
25504.  Provision of data.
25505.  Verification of eligibility.
25506.  Penalties.
Sec. 25501. Sole source contracts
  A contracting officer may award a sole source contract to any small 
business concern owned and controlled by service-disabled veterans if--
          (1) the Administrator determines that the small business 
        concern owned and controlled by service-disabled veterans is a 
        responsible contractor with respect to performance of the 
        contract opportunity;
          (2) the contracting officer does not have a reasonable 
        expectation that 2 or more small business concerns owned and 
        controlled by service-disabled veterans will submit offers for 
        the contracting opportunity;
          (3) the anticipated award price of the contract (including 
        options) will not exceed--
                  (A) $5,000,000, in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $3,000,000, in the case of any other contract 
                opportunity; and
          (4) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price.
Sec. 25502. Restricted competition
  A contracting officer may award a contract on the basis of 
competition restricted to small business concerns owned and controlled 
by service-disabled veterans if the contracting officer has a 
reasonable expectation that--
          (1) not fewer than 2 small business concerns owned and 
        controlled by service-disabled veterans will submit offers; and
          (2) the award can be made at a fair market price.
Sec. 25503. Relationship to other contracting preferences
  A procurement may not be made from a source on the basis of a 
preference provided under section 25501 or 25502 of this title if the 
procurement would otherwise be made from a different source under--
          (1) section 4124 or 4125 of title 18; or
          (2) the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
Sec. 25504. Provision of data
  On the request of the Administrator, the head of any Federal agency 
shall promptly provide to the Administrator such information as the 
Administrator determines to be necessary to carry out this chapter.
Sec. 25505. Verification of eligibility
  (a) In General.--In carrying out this chapter, the Administrator 
shall establish procedures relating to--
          (1) the filing, investigation, and disposition by the 
        Administrator of any challenge to the eligibility of a small 
        business concern to receive assistance under this subsection 
        (including a challenge, filed by an interested party, relating 
        to the veracity of a certification made or information provided 
        to the Administration by a small business concern); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the 
        Administration by a small business concern.
  (b) Examinations.--The procedures established under subsection (a) 
may provide for program examinations (including random program 
examinations) by the Administrator of any small business concern making 
a certification or providing information to the Administrator.
Sec. 25506. Penalties
  In addition to the penalties described in section 10504 of this 
title, a small business concern that is determined by the Administrator 
to have misrepresented the status of the small business concern as a 
small business concern owned and controlled by service-disabled 
veterans for purposes of this chapter shall be subject to--
          (1) section 1001 of title 18; and
          (2) sections 3729 to 3733 of title 31.

   CHAPTER 257--SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY WOMEN

Sec.
25701.  Definition of small business concern owned and controlled by 
          women.
25702.  Restricted competition.
25703.  Identification of industries.
25704.  Provision of data.
25705.  Verification of eligibility.
25706.  Penalties.
Sec. 25701. Definition of small business concern owned and controlled 
                    by women
  In this chapter, the term ``small business concern owned and 
controlled by women'' has the meaning given the term in section 10101 
of this title, except that ownership shall be determined without regard 
to any community property law.
Sec. 25702. Restricted competition
  (a) In General.--A contracting officer may restrict competition for 
any contract for the procurement of a good or service by the Federal 
Government to small business concerns owned and controlled by women 
if--
          (1) each of the small business concerns owned and controlled 
        by women is not less than 51 percent owned by one or more women 
        who are economically disadvantaged (for which purpose ownership 
        shall be determined without regard to any community property 
        law);
          (2) the contracting officer has a reasonable expectation that 
        2 or more small business concerns owned and controlled by 
        economically disadvantaged women will submit offers for the 
        contract;
          (3) the contract is for the procurement of a good or service 
        with respect to an industry identified by the Administrator 
        under section 25703 of this title;
          (4) the anticipated award price of the contract (including 
        options) does not exceed--
                  (A) $5,000,000, in the case of a contract assigned a 
                North American Industry Classification System code for 
                manufacturing; or
                  (B) $3,000,000, in the case of any other contract;
          (5) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price; and
          (6) each of the small business concerns owned and controlled 
        by women--
                  (A) is certified by a Federal agency, a State 
                government, or a national certifying entity approved by 
                the Administrator, as a small business concern owned 
                and controlled by women; or
                  (B)(i) certifies to the contracting officer that it 
                is a small business concern owned and controlled by 
                women; and
                  (ii) provides adequate documentation, in accordance 
                with standards established by the Administrator, to 
                support the certification.
  (b) Waiver.--The Administrator may waive subsection (a)(1) with 
respect to a small business concern owned and controlled by women if 
the Administrator determines that the small business concern owned and 
controlled by women is in an industry in which small business concerns 
owned and controlled by women are substantially underrepresented.
Sec. 25703. Identification of industries
  The Administrator shall conduct a study to identify industries in 
which small business concerns owned and controlled by women are 
underrepresented with respect to Federal procurement contracting.
Sec. 25704. Provision of data
  On the request of the Administrator, the head of a Federal agency 
shall promptly provide to the Administrator such information as the 
Administrator determines to be necessary to carry out this chapter.
Sec. 25705. Verification of eligibility
  (a) In General.--In carrying out this chapter, the Administrator 
shall establish procedures relating to--
          (1) the filing, investigation, and disposition by the 
        Administrator of any challenge to the eligibility of a small 
        business concern to receive assistance under this chapter 
        (including a challenge, filed by an interested party, relating 
        to the veracity of a certification made or information provided 
        to the Administrator by a small business concern under section 
        25702(a)(6) of this title); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the Administrator 
        by a small business concern under section 25702(a)(6) of this 
        title.
  (b) Examinations.--The procedures established under subsection (a) 
may provide for program examinations (including random program 
examinations) by the Administrator of any small business concern making 
a certification or providing information to the Administrator under 
section 25702(a)(6) of this title.
Sec. 25706. Penalties
  In addition to the penalties described in section 10504 of this 
title, a small business concern that is determined by the Administrator 
to have misrepresented the status of the small business concern as a 
small business concern owned and controlled by women for purposes of 
this chapter shall be subject to--
          (1) section 1001 of title 18; and
          (2) sections 3729 to 3733 of title 31.

                  DIVISION H--RESEARCH AND DEVELOPMENT

                    CHAPTER 261--GENERAL PROVISIONS

Sec.
26101.  Definitions.
26102.  Assistance to small business concerns.
26103.  Federal agency cooperation.
26104.  Joint research and development programs.
Sec. 26101. Definitions
  In this division:
          (1) Commercial application.--The term ``commercial 
        application'' includes testing and evaluation of products, 
        services, or technologies for use in technical or weapons 
        systems.
          (2) Cooperative research and development.--The term 
        ``cooperative research and development'' means research or 
        research and development conducted jointly by a small business 
        concern and a research institution in which not less than 40 
        percent of the work is performed by the small business concern 
        and not less than 30 percent of the work is performed by the 
        research institution.
          (3) Extramural budget.--
                  (A) In general.--The term ``extramural budget'', in 
                reference to the extramural budget of a Federal agency, 
                means the sum of the total obligations minus amounts 
                obligated for research or research and development by 
                employees of the Federal agency in or through 
                Government-owned, Government-operated facilities.
                  (B) Applicability to department of energy.--As 
                applied with respect to the Department of Energy, the 
                term ``extramural budget'' does not include amounts 
                obligated for atomic energy defense programs solely for 
                weapons activities or for naval reactor programs.
                  (C) Applicability to agency for international 
                development.--As applied to the Agency for 
                International Development, the term ``extramural 
                budget'' does not include amounts obligated solely for 
                general institutional support of international research 
                centers or for grants to foreign countries.
          (4) Federal agency.--
                  (A) In general.--The term ``Federal agency'' means--
                          (i) an executive agency (as defined in 
                        section 105 of title 5); or
                          (ii) a military department.
                  (B) Exclusion.--The term ``Federal agency'' does not 
                include an agency within the Intelligence Community (as 
                defined in section 3.4(f) of Executive Order 12333 (50 
                U.S.C. 401 note) (or any successor Executive order)).
          (5) Federally funded research and development center.--The 
        term ``Federally funded research and development center'' means 
        a federally funded research and development center identified 
        by the National Scientific Foundation in accordance with the 
        Governmentwide Federal Acquisition Regulation issued under 
        section 25(c)(1) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 421(c)(1)) (or any successor regulation).
          (6) First phase.--The term ``first phase''--
                  (A) with respect to an SBIR, means the phase 
                described in paragraph (13)(A); and
                  (B) with respect to an STTR, means the phase 
                described in paragraph (14)(A).
          (7) Funding agreement.--The term ``funding agreement'' means 
        a contract, grant, or cooperative agreement entered into 
        between a Federal agency and a small business concern for the 
        performance of experimental, developmental, or research work 
        funded in whole or in part by the Federal Government.
          (8) Research institution.--
                  (A) In general.--The term ``research institution'' 
                means a nonprofit institution (as defined in section 4 
                of the Stevenson-Wydler Technology Innovation Act of 
                1980 (15 U.S.C. 3703)).
                  (B) Inclusion.--The term ``research institution'' 
                includes a federally funded research and development 
                center.
          (9) Research or research and development.--The term 
        ``research or research and development'' means an activity that 
        is--
                  (A) a systematic, intensive study directed toward 
                greater knowledge or understanding of the subject 
                studied;
                  (B) a systematic study directed specifically toward 
                applying new knowledge to meet a recognized need; or
                  (C) a systematic application of knowledge toward the 
                production of useful materials, devices, and systems or 
                methods, including design, development, and improvement 
                of prototypes and new processes to meet specific 
                requirements.
          (10) SBIR.--The term ``SBIR'' means a small business 
        innovation research program.
          (11) SBIR agency.--The term ``SBIR agency'' means a Federal 
        agency that is required by section 26301 of this title to have 
        an SBIR.
          (12) Second phase.--The term ``second phase''--
                  (A) with respect to an SBIR, means the phase 
                described in paragraph (13)(B); and
                  (B) with respect to an STTR, means the phase 
                described in paragraph (14)(B).
          (13) Small business innovation research program.--The term 
        ``small business innovation research program'' means a program 
        under which a portion of a Federal agency's research or 
        research and development effort is reserved for award to small 
        business concerns through a uniform process having--
                  (A) a first phase for determining, insofar as 
                possible, the scientific and technical merit and 
                feasibility of ideas that appear to have commercial 
                potential, as described in subparagraph (B), submitted 
                pursuant to SBIR solicitations;
                  (B) a second phase, to further develop proposals that 
                meet particular program needs, in which awards shall be 
                made based on the scientific and technical merit and 
                feasibility of the proposals, as evidenced by the first 
                phase, considering, among other things, the proposal's 
                commercial potential, as evidenced by--
                          (i) the small business concern's record of 
                        successfully commercializing SBIR or other 
                        research;
                          (ii) the existence of second phase funding 
                        commitments from private sector or non-SBIR 
                        funding sources;
                          (iii) the existence of third phase, follow-on 
                        commitments for the subject of the research; 
                        and
                          (iv) the presence of other indicators of the 
                        commercial potential of the idea; and
                  (C) where appropriate, a third phase--
                          (i) in which commercial applications of SBIR-
                        funded research or research and development are 
                        funded--
                                  (I) by non-Federal sources of 
                                capital; or
                                  (II) for products or services 
                                intended for use by the Federal 
                                Government, by follow-on non-SBIR 
                                Federal funding awards; or
                          (ii) for which awards from non-SBIR Federal 
                        funding sources are used for the continuation 
                        of research or research and development that 
                        has been competitively selected using peer 
                        review or scientific review criteria.
          (14) Small business technology transfer program.--The term 
        ``small business technology transfer program'' means a program 
        under which a portion of a Federal agency's extramural research 
        or research and development effort is reserved for award to 
        small business concerns for cooperative research and 
        development through a uniform process having--
                  (A) a first phase, to determine, to the extent 
                possible, the scientific, technical, and commercial 
                merit and feasibility of ideas submitted pursuant to 
                STTR solicitations;
                  (B) a second phase, to further develop proposed ideas 
                to meet particular program needs, in which awards shall 
                be made based on the scientific, technical, and 
                commercial merit and feasibility of the idea, as 
                evidenced by the first phase and by other relevant 
                information; and
                  (C) where appropriate, a third phase--
                          (i) in which commercial applications of STTR-
                        funded research or research and development are 
                        funded--
                                  (I) by non-Federal sources of 
                                capital; or
                                  (II) for products or services 
                                intended for use by the Federal 
                                Government, by follow-on non-STTR 
                                Federal funding awards; and
                          (ii) for which awards from non-STTR Federal 
                        funding sources are used for the continuation 
                        of research or research and development that 
                        has been competitively selected using peer 
                        review or scientific review criteria.
          (15) STTR.--The term ``STTR'' means a small business 
        technology transfer program.
          (16) STTR agency.--The term ``STTR agency'' means a Federal 
        agency that is required by section 26321 of this title to have 
        an STTR.
          (17) Third phase.--The term ``third phase''--
                  (A) with respect to an SBIR, means the phase 
                described in paragraph (13)(C); and
                  (B) with respect to an STTR, means the phase 
                described in paragraph (14)(C).
          (18) Third phase agreement.--The term ``third phase 
        agreement'' means a follow-on, non-SBIR-funded contract or non-
        STTR-funded contract described in paragraph (13)(C) or (14)(C).
Sec. 26102. Assistance to small business concerns
  The Administrator shall--
          (1) assist small business concerns in obtaining Government 
        contracts for research and development;
          (2) assist small business concerns in obtaining the benefits 
        of research and development performed under Government 
        contracts or at Government expense;
          (3) provide technical assistance to small business concerns 
        to accomplish the purposes of this division;
          (4) develop and maintain a source file and an information 
        program to assure each qualified and interested small business 
        concern the opportunity to participate in Federal agency SBIRs 
        and STTRs;
          (5) coordinate with participating Federal agencies a schedule 
        for release of SBIR and STTR solicitations, and prepare a 
        master release schedule so as to maximize the opportunity of 
        small business concerns to respond to solicitations;
          (6) independently survey and monitor the operation of SBIRs 
        and STTRs within participating Federal agencies; and
          (7) provide for and fully implement the tenets of Executive 
        Order No. 13329 (Encouraging Innovation in Manufacturing).
Sec. 26103. Federal agency cooperation
  The Administrator may consult and cooperate with, and make studies 
and recommendations to, all Federal agencies and the Government 
Accountability Office, and a Federal agency or the Government 
Accountability Office shall cooperate with the Administrator in order 
to carry out and to accomplish the purposes of this division.
Sec. 26104. Joint research and development programs
  (a) In General.--The Administrator may consult with representatives 
of small business concerns with a view to assisting and encouraging 
small business concerns in undertaking joint programs for research and 
development carried out through such corporate or other mechanism as 
may be most appropriate for the purpose.
  (b) Purposes.--A joint program under subsection (a) may, among other 
things, include the purposes of--
          (1) constructing, acquiring, or establishing a laboratory or 
        other facility for the conduct of research;
          (2) undertaking and utilizing applied research;
          (3) collecting research information related to a particular 
        industry and disseminating the information to participating 
        members;
          (4) conducting applied research on a protected, proprietary, 
        and contractual basis with member or nonmember concerns, 
        Government agencies, and others;
          (5) prosecuting applications for patents and rendering patent 
        services for participating members; and
          (6) negotiating and granting licenses under patents held 
        under the joint program and establishing corporations designed 
        to exploit particular patents obtained by the joint venture.
  (c) Approval of Agreements.--After consultation with the Attorney 
General and the Chairman of the Federal Trade Commission, and with the 
prior written approval of the Attorney General, the Administrator may 
approve an agreement between small business concerns providing for a 
joint program of research and development if the Administrator 
determines that the joint program proposed will maintain and strengthen 
the free enterprise system and the economy of the Nation.
  (d) Withdrawal of Approval.--The Administrator or the Attorney 
General may at any time withdraw approval of the agreement and the 
joint program of research and development covered by the agreement if 
the Administrator or Attorney General determines that the agreement or 
the joint program is no longer in the best interests of the competitive 
free enterprise system and the economy of the Nation.
  (e) Publication in Federal Register.--A copy of an approval or 
disapproval and of any determination made under subsection (c) or (d) 
shall be published in the Federal Register.
  (f) Nondelegability.--The authority of the Administrator under this 
section may not be delegated.
  (g) No Violation of Antitrust Laws or Federal Trade Commission Act.--
          (1) In general.--Subject to paragraph (2), no act or omission 
        to act pursuant to and within the scope of a joint program for 
        research and development under an agreement approved by the 
        Administrator under this section shall be within the 
        prohibitions of the antitrust laws or the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
          (2) Withdrawal of approval.--On publication in the Federal 
        Register of the notice of withdrawal of approval of an 
        agreement granted under this section, by the Administrator or 
        by the Attorney General, this section shall not apply to any 
        subsequent act or omission to act by reason of the agreement or 
        the approval.

                      CHAPTER 263--SBIRs AND STTRs

                          Subchapter I--SBIRs

Sec.
26301.  Federal agency SBIRs.
26302.  Administration of SBIRs by Federal agencies.
26303.  Funding agreement goals.
26304.  SBIR policy directives.
26305.  Discretionary technical assistance.
26306.  Coordination of technology development programs.
26307.  Purchase of American-made equipment and products.
26308.  Use of Department of Agriculture extramural budget funds.
26309.  Commercialization pilot program.
26310.  Reports by Federal agencies.
26311.  Termination.

                          Subchapter II--STTRs

26321.  Federal agency STTRs.
26322.  Administration of STTRs by Federal agencies.
26323.  STTR policy directive.
26324.  STTR model agreement for intellectual property rights.

      Subchapter III--Provisions Relating to Both SBIRs and STTRs

26341.  Database.
26342.  Third phase agreements.
26343.  Inclusion of SBIR and STTR information in strategic plans.
26344.  Simplified reporting requirements.
26345.  Federal and State Technology Partnership program.
26346.  Second phase and third phase awards for testing and evaluation 
          of products, services, and technologies for use in a technical 
          or weapons system.
26347.  Innovation in energy efficiency

                          Subchapter I--SBIRs

Sec. 26301. Federal agency SBIRs
  (a) SBIR Budget.--A Federal agency that has an extramural budget for 
research or research and development in excess of $100,000,000 for any 
fiscal year shall expend with small business concerns not less than 2.5 
percent of the extramural budget specifically in connection with an 
SBIR that meets the requirements of this division (including policy 
directives under section 26304 of this title).
  (b) Limitations.--An SBIR agency shall not--
          (1) use any of its SBIR budget established under subsection 
        (a) for the purpose of funding administrative costs of the 
        program, including costs associated with salaries and expenses; 
        or
          (2) make available for the purpose of meeting the 
        requirements of subsection (a) an amount of its extramural 
        budget for basic research that exceeds the percentage specified 
        in subsection (a).
  (c) Exclusion of Certain Funding Agreements.--A funding agreement 
with a small business concern for research or research and development 
that results from a competitive or single source selection other than 
an SBIR shall not be considered to meet any portion of the percentage 
requirement of subsection (a).
Sec. 26302. Administration of SBIRs by Federal agencies
  (a) In General.--An SBIR agency shall, in accordance with this 
division (including policy directives under section 26304 of this 
title)--
          (1) unilaterally determine categories of projects to be in 
        its SBIR;
          (2) issue SBIR solicitations in accordance with a schedule 
        determined cooperatively with the Administrator;
          (3) unilaterally determine research topics within the SBIR 
        agency's SBIR solicitations, giving special consideration to 
        broad research topics and to topics that further one or more 
        critical technologies, as identified by--
                  (A) the National Critical Technologies Panel in the 
                reports required under section 603 of the National 
                Science and Technology Policy, Organization, and 
                Priorities Act of 1976 (42 U.S.C. 6683) (as in effect 
                before January 1, 2001); or
                  (B) the Secretary of Defense, in the reports required 
                under section 2522 of title 10 (as in effect before 
                February 10, 1996);
          (4) unilaterally receive and evaluate proposals resulting 
        from SBIR proposals;
          (5) subject to section 26310(b) of this title--
                  (A) unilaterally select awardees for its SBIR funding 
                agreements; and
                  (B) inform each awardee under a funding agreement, to 
                the extent possible, of the expenses of the awardee 
                that will be allowable under the funding agreement;
          (6) administer its own SBIR funding agreements (or delegate 
        such administration to another Federal agency);
          (7)(A) make payments to recipients of SBIR funding agreements 
        on the basis of progress toward or completion of the funding 
        agreement requirements; and
          (B) in all cases, make payment to recipients under such 
        agreements in full, subject to audit, on or before the last day 
        of the 12-month period beginning on the date of completion of 
        the funding agreement requirements;
          (8)(A) include a section on its SBIR in its annual 
        performance plan required by subsections (a) and (b) of section 
        1115 of title 31; and
          (B) submit that section to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Science 
        and Committee on Small Business of the House of 
        Representatives;
          (9) collect, and maintain in a common format in accordance 
        with section 26344 of this title, such information from 
        awardees as is necessary to assess the SBIR, including 
        information necessary to maintain the database under section 
        26341 of this title; and
          (10) provide for and fully implement the tenets of Executive 
        Order No. 13329 (Encouraging Innovation in Manufacturing).
  (b) Research and Development Focus.--
          (1) Revision and update of criteria and procedures of 
        identification.--In carrying out subsection (a), the Secretary 
        of Defense shall, not less often than once every 4 years, 
        revise and update the criteria and procedures used to identify 
        areas of the research and development efforts of the Department 
        of Defense that are suitable for the provision of funds under 
        the SBIR and the STTR of the Department of Defense.
          (2) Use of plans.--The criteria and procedures described in 
        paragraph (1) shall be developed through the use of the most 
        current versions of the following plans:
                  (A) The Joint Warfighting Science and Technology Plan 
                required under section 270 of the National Defense 
                Authorization Act for Fiscal Year 1997 (10 U.S.C. 2501 
                note; Public Law 104-201).
                  (B) The Defense Technology Area Plan of the 
                Department of Defense.
                  (C) The Basic Research Plan of the Department of 
                Defense.
          (3) Input in identification of areas of effort.--The criteria 
        and procedures described in paragraph (1) shall include input 
        in the identification of areas of research and development 
        efforts described in that paragraph from Department of Defense 
        program managers and program executive officers.
Sec. 26303. Funding agreement goals
  (a) In General.--A Federal agency that has a budget for research or 
research and development in excess of $20,000,000 for any fiscal year 
shall establish goals specifically for funding agreements for research 
or research and development to small business concerns.
  (b) No Backsliding.--No goal established by a Federal agency under 
subsection (a) shall be less than the percentage of the Federal 
agency's research or research and development budget expended under 
funding agreements with small business concerns in the immediately 
preceding fiscal year.
Sec. 26304. SBIR policy directives
  (a) In General.--The Administrator, after consultation with the 
Administrator of the Office of Federal Procurement Policy, the Director 
of the Office of Science and Technology Policy, and the 
Intergovernmental Affairs Division of the Office of Management and 
Budget, shall issue policy directives for the general conduct of the 
SBIRs within the Federal Government.
  (b) Matters To Be Provided For.--Policy directives under subsection 
(a) shall provide for--
          (1) simplified, standardized, and timely SBIR solicitations;
          (2) a simplified, standardized funding process that provides 
        for--
                  (A) the timely receipt and review of proposals;
                  (B) outside peer review for at least phase two 
                proposals, if appropriate;
                  (C) protection of proprietary information provided in 
                proposals;
                  (D) selection of awardees;
                  (E) retention by a small business concern of the 
                rights to data generated by the small business concern 
                in the performance of an SBIR award for a period of not 
                less than 4 years;
                  (F) transfer of title to property provided by a 
                Federal agency to a small business concern if such a 
                transfer would be more cost effective than recovery of 
                the property by the Federal agency;
                  (G) cost sharing; and
                  (H) cost principles and payment schedules;
          (3) exemptions from the policy directives under paragraph (2) 
        if national security or intelligence functions clearly would be 
        jeopardized;
          (4) minimizing the regulatory burden associated with 
        participation in an SBIR for a small business concern so as to 
        stimulate the cost-effective conduct of Federal research and 
        development and the likelihood of commercialization of the 
        results of research and development conducted under the SBIR;
          (5) the submission by a Federal agency to the Administrator 
        and the Office of Science and Technology Policy of a 
        simplified, standardized, and timely annual report on its SBIR;
          (6) standardized and orderly withdrawal from SBIR 
        participation by a Federal agency;
          (7) the voluntary participation in an SBIR by a Federal 
        agency not required by section 26301 of this title to have an 
        SBIR;
          (8) continued use by a small business concern participating 
        in the third phase of an SBIR, as a directed bailment, of any 
        property transferred by a Federal agency to the small business 
        concern in the second phase of an SBIR for a period of not less 
        than 2 years, beginning on the initial date of the small 
        business concern's participation in the third phase of an SBIR;
          (9) procedures to ensure, to the extent practicable, that a 
        Federal agency that intends to pursue research, development, or 
        production of a technology developed by a small business 
        concern under an SBIR enters into a follow-on, non-SBIR funding 
        agreement with the small business concern for the research, 
        development, or production;
          (10) limits in the amounts of funds that a Federal agency may 
        award of $100,000 in the first phase of an SBIR and $750,000 in 
        the second phase of an SBIR, adjusted once every 5 years to 
        reflect economic adjustments and programmatic considerations;
          (11) a process for notifying SBIR agencies and potential SBIR 
        participants of the critical technologies, as identified--
                  (A) by the National Critical Technologies Panel in 
                accordance with section 603 of the National Science and 
                Technology Policy, Organization, and Priorities Act of 
                1976 (42 U.S.C. 6683) (as in effect before January 1, 
                2001); or
                  (B) by the Secretary of Defense in accordance with 
                section 2522 of title 10 (as in effect before February 
                10, 1996);
          (12)(A) enhanced outreach efforts to increase the 
        participation of small business concerns owned and controlled 
        by socially and economically disadvantaged individuals and the 
        participation of small business concerns owned and controlled 
        by women in technological innovation and in SBIRs, including 
        the third phase of SBIRs; and
          (B) the collection of data to document that participation;
          (13) technical and programmatic guidance to encourage Federal 
        agencies to develop gap-funding programs to address the delay 
        between an award for the first phase of an SBIR and the 
        application for and extension of an award for the second phase 
        of the SBIR;
          (14) procedures to ensure that a small business concern that 
        submits a proposal for a funding agreement for the first phase 
        of an SBIR and that has received more than 15 second phase SBIR 
        awards during the preceding 5 fiscal years is able to 
        demonstrate the extent to which the small business concern was 
        able to secure third phase funding to develop concepts 
        resulting from previous second phase SBIR awards;
          (15) the requirement of a succinct commercialization plan 
        with each application for a second phase SBIR award that is 
        moving toward commercialization;
          (16) a requirement that a Federal agency report to the 
        Administrator, not less frequently than annually, all instances 
        in which the Federal agency pursued research, development, or 
        production of a technology developed by a small business 
        concern using an award made under the SBIR of the Federal 
        agency and determined that it was not practicable to enter into 
        a follow-on non-SBIR funding agreement with the small business 
        concern; and
          (17) implementation of section 26344 of this title, including 
        establishing standardized procedures for the provision of 
        information under section 26341(c) of this title.
  (c) Phased Withdrawal From SBIR Program.--At the discretion of the 
Administrator, the policy directive under subsection (b)(6) may require 
a phased withdrawal over a period of time sufficient in duration to 
minimize any adverse impact on small business concerns.
  (d) Rights to Data.--The rights provided for under subsection 
(b)(1)(E) shall apply to all Federal funding awards under this 
division, including first phase, second phase, and third phase awards.
  (e) Reports on Impracticability of Follow-on Agreements.--A report 
under subsection (b)(16) shall include, at a minimum--
          (1) the reasons why the follow-on funding agreement with the 
        small business concern was not practicable;
          (2) the identity of the entity with which the Federal agency 
        contracted to perform the research, development, or production; 
        and
          (3) a description of the type of funding agreement under 
        which the research, development, or production was obtained.
Sec. 26305. Discretionary technical assistance
  (a) In General.--An SBIR agency may enter into an agreement with a 
vendor selected under subsection (b) to provide small business concerns 
engaged in SBIR projects with technical assistance services, such as 
access to a network of scientists and engineers engaged in a wide range 
of technologies or access to technical and business literature 
available through on-line data bases, for the purpose of assisting the 
small business concerns in--
          (1) making better technical decisions concerning the 
        projects;
          (2) solving technical problems that arise during the conduct 
        of the projects;
          (3) minimizing technical risks associated with the projects; 
        and
          (4) developing and commercializing new commercial products 
        and processes resulting from the projects.
  (b) Vendor Selection.--
          (1) In general.--An SBIR agency may select a vendor to assist 
        small business concerns in meeting the goals listed in 
        subsection (a) for a term not to exceed 3 years.
          (2) Competition.--Selection of a vendor shall be competitive 
        and shall use merit-based criteria.
  (c) Additional Technical Assistance.--
          (1) First phase.--An SBIR agency may provide services 
        described in subsection (a) to first phase SBIR award 
        recipients in an amount equal to not more than $4,000, which 
        shall be in addition to the amount of the recipient's award.
          (2) Second phase.--An SBIR agency described in subsection (a) 
        may authorize any second phase SBIR award recipient to 
        purchase, with funds available from its SBIR awards, services 
        described in subsection (a), in an amount equal to not more 
        than $4,000 per year.
Sec. 26306. Coordination of technology development programs
  (a) Definition of Technology Development Program.--In this section, 
the term ``technology development program'' means--
          (1) the Experimental Program to Stimulate Competitive 
        Research of the National Science Foundation, as established 
        under section 113 of the National Science Foundation 
        Authorization Act of 1988 (42 U.S.C. 1862g);
          (2) the Defense Experimental Program to Stimulate Competitive 
        Research of the Department of Defense;
          (3) the Experimental Program to Stimulate Competitive 
        Research of the Department of Energy;
          (4) the Experimental Program to Stimulate Competitive 
        Research of the Environmental Protection Agency;
          (5) the Experimental Program to Stimulate Competitive 
        Research of the National Aeronautics and Space Administration;
          (6) the Institutional Development Award Program of the 
        National Institutes of Health; and
          (7) the National Research Initiative Competitive Grants 
        Program of the Department of Agriculture.
  (b) Coordination Requirements.--A Federal agency that is subject to 
section 26301 of this title and that has established a technology 
development program may, in each fiscal year, review for funding under 
the technology development program--
          (1) a proposal to provide outreach and assistance to one or 
        more small business concerns interested in participating in the 
        Federal agency's SBIR (including a proposal to make a grant or 
        loan to a business concern to pay a portion or all of the cost 
        of developing an SBIR proposal) from an entity, organization, 
        or individual located in--
                  (A) a State that is eligible to participate in the 
                technology development program; or
                  (B) a State described in subsection (c); or
          (2) a proposal for the first phase of the SBIR program (if 
        the proposal, though meritorious, is not funded through the 
        SBIR program for that fiscal year due to funding restraints) 
        from a small business concern located in--
                  (A) a State that is eligible to participate in the 
                technology development program; or
                  (B) a State described in subsection (c).
  (c) Additionally Eligible State.--A State referred to in paragraph 
(1)(B) or (2)(B) of subsection (b) is a State in which the total value 
of contracts awarded to small business concerns under all SBIRs is less 
than the total value of contracts awarded to small business concerns in 
a majority of other States, as determined by the Administrator in even-
numbered fiscal years, based on the most recent statistics compiled by 
the Administrator.
Sec. 26307. Purchase of American-made equipment and products
  (a) Purchase of American-Made Equipment and Products.--It is the 
sense of Congress that an entity that is awarded a funding agreement 
under the SBIR of a Federal agency should, when purchasing any 
equipment or a product with funds provided through the funding 
agreement, purchase only American-made equipment and products, to the 
extent possible in keeping with the overall purposes of the SBIR.
  (b) Notice to SBIR Awardees.--A Federal agency that awards a funding 
agreement under an SBIR shall provide to each recipient of such an 
award a notice describing the sense of the Congress stated in 
subsection (a).
Sec. 26308. Use of Department of Agriculture extramural budget funds
  All funds appropriated that are determined to be part of the 
extramural budget of the Department of Agriculture for any fiscal year 
for purposes of meeting the requirements of this division shall be 
available for funding agreements with small business concerns for any 
purpose in furtherance of the SBIR of the Department of Agriculture. 
Such funds may be transferred for that purpose from one appropriation 
account to another or to a single account.
Sec. 26309. Commercialization pilot program
  (a) In General.--The Secretary of Defense and each Secretary of a 
military department may create and administer a commercialization pilot 
program to accelerate the transition of technologies, products, and 
services developed under the SBIR of the Department of Defense or of 
the military department to the third phase, including the acquisition 
process.
  (b) Identification of Research Programs for Accelerated Transition to 
Acquisition Process.--In carrying out a commercialization pilot 
program, the Secretary of Defense and the Secretary of each military 
department shall identify research programs of an SBIR that have the 
potential for rapid transitioning to the third phase and into the 
acquisition process.
  (c) Limitation.--No research program of a military department may be 
identified under subsection (b) unless the Secretary of the military 
department certifies in writing that the successful transition of the 
research program to the third phase and into the acquisition process is 
expected to meet high priority military requirements of the military 
department.
  (d) Funding.--
          (1) In general.--For payment of expenses incurred to 
        administer the commercialization pilot program under this 
        subsection, the Secretary of Defense and a Secretary of a 
        military department may use not more than an amount equal to 
        one percent of the funds available to the Department of Defense 
        or the military department under an SBIR.
          (2) Use of funds.--Funds used as described in paragraph (1)--
                  (A) shall not be subject to the limitations on the 
                use of funds in section 26301(b) of this title; and
                  (B) shall not be used to make third phase awards.
  (e) Evaluative Report.--
          (1) In general.--At the end of each fiscal year, the 
        Secretary of Defense shall submit to the Committee on Armed 
        Services and Committee on Small Business and Entrepreneurship 
        of the Senate and the Committee on Armed Services and Committee 
        on Small Business of the House of Representatives an evaluative 
        report regarding activities under the commercialization pilot 
        program.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A) an accounting of the funds used in the 
                commercialization pilot program;
                  (B) a detailed description of the commercialization 
                pilot program, including incentives and activities 
                undertaken by acquisition program managers, program 
                executive officers, and prime contractors; and
                  (C) a detailed compilation of results achieved by the 
                commercialization pilot program, including the number 
                of small business concerns assisted and the number of 
                projects commercialized.
  (f) Sunset.--A commercialization pilot program under this section 
shall terminate at the end of fiscal year 2009.
Sec. 26310. Reports by Federal agencies
  (a) Annual Report.--An SBIR agency shall annually submit to the 
Administrator and the Office of Science and Technology Policy a report 
on the Federal agency's SBIR.
  (b) Reporting of Awards Made From Single Proposals, Awards to 
Multiple Award Winners, and Awards to Critical Technology Topics.--
          (1) Single proposal.--If an SBIR agency makes an award with 
        respect to an SBIR solicitation topic or subtopic for which the 
        Federal agency received only one proposal, the SBIR agency 
        shall provide written justification for making the award in its 
        next quarterly report to the Administrator and in the SBIR 
        agency's next annual report required under subsection (a).
          (2) Multiple awards.--An SBIR agency shall include in its 
        next annual report required under subsection (a) an accounting 
        of the awards that the SBIR agency has made for the first phase 
        of its SBIR during the reporting period to entities that have 
        received more than 15 awards for the second phase of the SBIR 
        during the preceding 5 fiscal years.
          (3) Critical technology awards.--
                  (A) In general.--An SBIR agency shall include in its 
                next annual report required under subsection (a) an 
                accounting of the number of awards that the SBIR agency 
                has made to critical technology topics described in 
                section 26302(3) of this title.
                  (B) Contents.--An accounting under subparagraph (A) 
                shall--
                          (i) include an identification of the specific 
                        critical technologies topics; and
                          (ii) disclose the percentage by number and 
                        dollar amount of the SBIR agency's total SBIR 
                        awards to critical technology topics.
  (c) Number and Dollar Amount of Awards.--
          (1) In general.--A Federal agency required by section 26301 
        of this title to have an SBIR or to establish goals shall 
        annually submit to the Administrator a report that discloses--
                  (A) the number of awards pursuant to grants, 
                contracts, or cooperative agreements over $10,000 in 
                amount; and
                  (B) the dollar value of all such awards.
          (2) Contents.--A report under paragraph (1) shall identify 
        SBIR awards and compare the number and amount of those awards 
        with awards to other than small business concerns.
          (3) Calculation of extramural budget.--
                  (A) Methodology.--Not later than 4 months after the 
                date of enactment of each appropriations Act for an 
                SBIR agency, the SBIR agency shall submit to the 
                Administrator a report that includes a description of 
                the methodology used for calculating the amount of the 
                extramural budget of that SBIR agency.
                  (B) Administrator's analysis.--The Administrator 
                shall include an analysis of the methodology received 
                from each SBIR agency in the report required by section 
                10710(a) of this title.
Sec. 26311. Termination
  The authorization to carry out an SBIR under this chapter terminates 
on September 30, 2008.

                          Subchapter II--STTRs

Sec. 26321. Federal agency STTRs
  (a) STTR Budget.--With respect to each fiscal year through fiscal 
year 2009, a Federal agency that has an extramural budget for research 
or research and development in excess of $1,000,000,000 for the fiscal 
year shall expend with small business concerns not less than 0.3 
percent, specifically in connection with an STTR that meets the 
requirements of this division (including any policy directive under 
section 26323 of this title).
  (b) Limitations.--A Federal agency shall not--
          (1) use any of its STTR budget established under subsection 
        (a) for the purpose of funding--
                  (A) administrative costs of the STTR program, 
                including costs associated with salaries and expenses; 
                or
                  (B) in the case of a small business concern or a 
                research institution, costs associated with salaries, 
                expenses, and administrative overhead (other than 
                direct or indirect costs allowable under guidelines of 
                the Office of Management and Budget and the 
                Governmentwide Federal Acquisition Regulation issued 
                under section 25(c)(1) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 421(c)(1))); or
          (2) make available for the purpose of meeting the 
        requirements of subsection (a) an amount of its extramural 
        budget for basic research that exceeds the percentage specified 
        in subsection (a).
  (c) Exclusion of Certain Funding Agreements.--A funding agreement 
with a small business concern for research or research and development 
that results from a competitive or single source selection other than 
an STTR shall not be considered to meet any portion of the percentage 
requirement of subsection (a).
Sec. 26322. Administration of STTRs by Federal agencies
  An STTR agency shall--
          (1) unilaterally determine categories of projects to be 
        included in its STTR;
          (2) issue STTR solicitations in accordance with a schedule 
        determined cooperatively with the Administrator;
          (3) unilaterally determine research topics within the Federal 
        agency's STTR solicitations, giving special consideration to 
        broad research topics and to topics that further one or more 
        critical technologies, as identified by--
                  (A) the National Critical Technologies Panel in the 
                reports required under section 603 of the National 
                Science and Technology Policy, Organization, and 
                Priorities Act of 1976 (42 U.S.C. 6683) (as in effect 
                before January 1, 2001); or
                  (B) the Secretary of Defense, in the reports required 
                under section 2522 of title 10 (as in effect before 
                February 10, 1996);
          (4) unilaterally receive and evaluate proposals resulting 
        from STTR solicitations;
          (5)(A) unilaterally select awardees for its STTR funding 
        agreements; and
          (B) inform each awardee under a funding agreement, to the 
        extent possible, of the expenses of the awardee that will be 
        allowable under the funding agreement;
          (6) administer its own STTR funding agreements (or delegate 
        such administration to another Federal agency);
          (7)(A) make payments to recipients of STTR funding agreements 
        on the basis of progress toward or completion of the funding 
        agreement requirements; and
          (B) in all cases, make payment to recipients under funding 
        agreements in full, subject to audit, on or before the last day 
        of the 12-month period beginning on the date of the completion 
        of the funding agreement requirements;
          (8)(A) include as part of its annual performance plan as 
        required by subsections (a) and (b) of section 1115 of title 31 
        a section on its STTR; and
          (B) submit that section to the Committee on Small Business of 
        the Senate and the Committee on Science and the Committee on 
        Small Business of the House of Representatives;
          (9) collect such information from awardees as is necessary to 
        assess STTR outputs and outcomes;
          (10) adopt the agreement developed by the Administrator under 
        section 26324 of this title as the STTR agency's model 
        agreement for allocating between small business concerns and 
        research institutions--
                  (A) intellectual property rights; and
                  (B) rights, if any, to carry out follow-on research, 
                development, or commercialization;
          (11) develop, in consultation with the Office of Federal 
        Procurement Policy and the Office of Government Ethics, 
        procedures to ensure that federally funded research and 
        development centers that participate in STTR agreements--
                  (A) are free from organizational conflicts of 
                interests relative to the program;
                  (B) do not use privileged information gained through 
                work performed for an STTR agency or private access to 
                STTR agency personnel in the development of an STTR 
                proposal; and
                  (C) use outside peer review, as appropriate;
          (12) develop procedures for assessing the commercial merit 
        and feasibility of STTR proposals, as evidenced by--
                  (A) the small business concern's record of 
                successfully commercializing STTR or other research;
                  (B) the existence of second phase funding commitments 
                from private sector or non-STTR funding sources;
                  (C) the existence of third phase follow-on 
                commitments for the subject of the research; and
                  (D) the presence of other indicators of the 
                commercial potential of the idea;
          (13) implement an outreach program to research institutions 
        and small business concerns for the purpose of enhancing its 
        STTR, in conjunction with any such outreach done for purposes 
        of the STTR agency's SBIR;
          (14) collect, and maintain in a common format in accordance 
        with section 26344 of this title, such information from 
        awardees as is necessary to assess its STTR, including 
        information necessary to maintain the database under section 
        26341 of this title;
          (15) annually submit to the Administrator and the Office of 
        Science and Technology Policy a report on its STTR; and
          (16) provide for and fully implement the tenets of Executive 
        Order No. 13329 (Encouraging Innovation in Manufacturing).
Sec. 26323. STTR policy directive
  (a) Issuance.--The Administrator shall issue a policy directive for 
the general conduct of the STTRs within the Federal Government.
  (b) Consultation.--The STTR policy directive shall be issued after 
consultation with--
          (1) the heads of each of the STTR agencies;
          (2) the Under Secretary of Commerce for Intellectual Property 
        and Director of the United States Patent and Trademark Office; 
        and
          (3) the Director of the Office of Federal Procurement Policy.
  (c) Contents.--The policy directive required by subsection (a) shall 
provide for--
          (1) simplified, standardized, and timely STTR solicitations;
          (2) a simplified, standardized funding process that provides 
        for--
                  (A) the timely receipt and review of proposals;
                  (B) outside peer review, if appropriate;
                  (C) protection of proprietary information provided in 
                proposals;
                  (D) selection of awardees;
                  (E) retention by a small business concern of the 
                rights to data generated by the small business concern 
                in the performance of an STTR award for a period of not 
                less than 4 years;
                  (F) continued use by a small business concern, as a 
                directed bailment, of any property transferred by a 
                Federal agency to the small business concern in the 
                second phase of the Federal agency's STTR for a period 
                of not less than 2 years, beginning on the initial date 
                of the small business concern's participation in the 
                third phase of the STTR;
                  (G) cost sharing;
                  (H) cost principles and payment schedules; and
                  (I)(i) one-year awards for the first phase of an 
                STTR, generally not to exceed $100,000, greater or 
                lesser amounts to be awarded at the discretion of the 
                awarding Federal agency, and shorter or longer periods 
                of time to be approved at the discretion of the 
                awarding agency where appropriate for a particular 
                project; and
                  (ii) 2-year awards for the second phase of the STTR, 
                generally not to exceed $750,000, greater or lesser 
                amounts to be awarded at the discretion of the awarding 
                Federal agency, and shorter or longer periods of time 
                to be approved at the discretion of the awarding agency 
                where appropriate for a particular project;
          (3) minimizing the regulatory burdens associated with 
        participation in an STTR;
          (4) guidelines for a model agreement, to be used by all 
        Federal agencies, for allocating between small business 
        concerns and research institutions--
                  (A) intellectual property rights; and
                  (B) rights, if any, to carry out follow-on research, 
                development, or commercialization;
          (5) procedures to ensure that--
                  (A) a recipient of an STTR award is a small business 
                concern; and
                  (B) the small business concern exercises management 
                and control of the performance of the STTR funding 
                agreement under a business plan providing for the 
                commercialization of the technology that is the subject 
                matter of the award; and
          (6) procedures to ensure, to the extent practicable, that a 
        Federal agency that intends to pursue research, development, or 
        production of a technology developed by a small business 
        concern under an STTR enters into a follow-on, non-STTR funding 
        agreement with the small business concern for the research, 
        development, or production.
  (d) Rights to Data.--The rights provided for under subsection 
(c)(2)(E) shall apply to all Federal funding awards under this 
division, including first phase, second phase, and third phase awards.
Sec. 26324. STTR model agreement for intellectual property rights
  (a) In General.--The Administrator shall promulgate regulations 
establishing a single model agreement for use in an STTR that allocates 
between small business concerns and research institutions--
          (1) intellectual property rights; and
          (2) rights, if any, to carry out follow-on research, 
        development, or commercialization.
  (b) Opportunity for Comment.--In promulgating regulations under 
subsection (a), the Administrator shall provide to affected Federal 
agencies, small business concerns, research institutions, and other 
interested parties the opportunity to submit written comments.

      Subchapter III--Provisions Relating to Both SBIRs and STTRs

Sec. 26341. Database
  (a) Public Database.--The Administrator shall develop, maintain, and 
make available to the public a searchable, up-to-date, electronic 
database that includes--
          (1) the name, size, location, and an identifying number 
        assigned by the Administrator of each small business concern 
        that has received a first phase or second phase SBIR or STTR 
        award from a Federal agency;
          (2) a description of each first phase or second phase SBIR or 
        STTR award received by that small business concern, including--
                  (A) an abstract of the project funded by the award, 
                excluding any information identified by the small 
                business concern as proprietary information;
                  (B) the Federal agency making the award; and
                  (C) the date and amount of the award;
          (3) an identification of any business concern or subsidiary 
        established for the commercial application of a product or 
        service for which an SBIR or STTR award is made;
          (4) information regarding mentors and mentoring networks, as 
        required by section 26345(f)(3) of this title; and
          (5) with respect to assistance under STTR--
                  (A) whether the small business concern or the 
                research institution initiated their collaboration on 
                each assisted STTR project;
                  (B) whether the small business concern or the 
                research institution originated any technology relating 
                to the assisted STTR project;
                  (C) the length of time it took to negotiate any 
                licensing agreement between the small business concern 
                and the research institution under each assisted STTR 
                project; and
                  (D) how the proceeds from commercialization, 
                marketing, or sale of technology resulting from each 
                assisted STTR project were allocated (by percentage) 
                between the small business concern and the research 
                institution.
  (b) Government Database.--
          (1) In general.--The Administrator, in consultation with SBIR 
        agencies and STTR agencies, shall develop and maintain a 
        database that--
                  (A) contains for each second phase award made by a 
                Federal agency--
                          (i) information collected in accordance with 
                        subsection (c) on revenue from the sale of new 
                        products or services resulting from the 
                        research conducted under the award;
                          (ii) information collected in accordance with 
                        subsection (c) on additional investment from 
                        any source, other than first phase or second 
                        phase SBIR or STTR awards, to further the 
                        research and development conducted under the 
                        award; and
                          (iii) any other information received in 
                        connection with the award that the 
                        Administrator, in conjunction with the SBIR and 
                        STTR managers of Federal agencies, considers 
                        relevant and appropriate;
                  (B) includes any narrative information that a small 
                business concern receiving a second phase award 
                voluntarily submits to further describe the outputs and 
                outcomes of its awards;
                  (C) includes for each applicant for a first phase or 
                second phase award that does not receive such an 
                award--
                          (i) the name, size, and location, and an 
                        identifying number assigned by the 
                        Administration;
                          (ii) an abstract of the project; and
                          (iii) the Federal agency to which the 
                        application was made; and
                  (D) includes any other data collected by or available 
                to any Federal agency that the Federal agency considers 
                may be useful for SBIR or STTR evaluation.
          (2) Use.--The database under paragraph (1) shall be available 
        for use solely--
                  (A) for program evaluation purposes by the Federal 
                Government; or
                  (B) in accordance with policy directives issued by 
                the Administrator, by other authorized persons that are 
                subject to a use and nondisclosure agreement with the 
                Federal Government covering the use of the database.
  (c) Updating of Information.--
          (1) In general.--A small business concern applying for a 
        second phase award under this division shall be required to 
        update information in the database established under this 
        section for any prior second phase award received by that small 
        business concern.
          (2) Apportionment.--In complying with this subsection, a 
        small business concern may apportion sales or additional 
        investment information relating to more than one second phase 
        award among those awards, if the small business concern notes 
        the apportionment for each award.
          (3) Updates at termination.--
                  (A) In general.--A small business concern receiving a 
                second phase award under this division shall update 
                information in the database concerning that award at 
                the termination of the award period.
                  (B) Voluntary updates.--The Administrator shall 
                request a small business concern described in 
                subparagraph (A) to voluntarily update such information 
                described in subparagraph (A) annually after 
                termination for a period of 5 years.
  (d) Protection of Information.--Information provided under subsection 
(b) or (c) shall be considered privileged and confidential and not 
subject to disclosure under section 552 of title 5.
  (e) Effect of Inclusion of Information in Database.--Inclusion of 
information in the database under this section shall not be considered 
to be publication for purposes of subsection (a) or (b) of section 102 
of title 35.
Sec. 26342. Third phase agreements
  (a) In General.--In the case of a small business concern that is 
awarded a funding agreement for the second phase of an SBIR or STTR, a 
Federal agency may enter into a third phase agreement with the small 
business concern for additional work to be performed during or after 
the second phase period.
  (b) Procedures.--The second phase funding agreement with the small 
business concern may, at the discretion of the Federal agency awarding 
the agreement, set out the procedures applicable to third phase 
agreements with that Federal agency or any other Federal agency.
  (c) Intellectual Property Rights.--A funding agreement under an SBIR 
or STTR shall include provisions setting forth the respective rights of 
the United States and the small business concern with respect to--
          (1) intellectual property rights; and
          (2) any right to carry out follow-on research.
Sec. 26343. Inclusion of SBIR and STTR information in strategic plans
  Program information relating to SBIRs and STTRs shall be included by 
a Federal agency in any update or revision required of the Federal 
agency under section 306(b) of title 5.
Sec. 26344. Simplified reporting requirements
  (a) In General.--The Administrator shall work with SBIR agencies and 
STTR agencies to standardize reporting requirements for the collection 
of data from SBIR or STTR applicants and awardees, including data for 
inclusion in the database under section 26341 of this title, taking 
into consideration the unique needs of each Federal agency, and to the 
extent possible, permitting the updating of previously reported 
information by electronic means.
  (b) Minimization of Burden.--The reporting requirements described in 
subsection (a) shall be designed to minimize the burden on small 
business concerns.
Sec. 26345. Federal and State Technology Partnership program
  (a) Definitions.--In this section:
          (1) Applicant.--The term ``applicant'' means an entity, 
        organization, or individual that submits a proposal for an 
        award or a cooperative agreement under this section.
          (2) Business advice and counseling.--The term ``business 
        advice and counseling'' means advice and assistance on matters 
        described in subsection (f) to small business concerns to guide 
        small business concerns through the SBIR and STTR process, from 
        application to award and successful completion of each phase of 
        an SBIR or STTR.
          (3) FAST program.--The term ``FAST program'' means the 
        Federal and State Technology Partnership program established 
        under subsection (b).
          (4) Mentor.--The term ``mentor'' means an individual 
        described in subsection (f).
          (5) Mentoring network.--The term ``mentoring network'' means 
        an association, organization, coalition, or other entity 
        (including an individual) that meets the requirements of 
        subsection (f).
          (6) Recipient.--The term ``recipient'' means a person that 
        receives an award or becomes party to a cooperative agreement 
        under this section.
          (7) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, and American 
        Samoa.
  (b) Establishment of FAST Program.--The Administrator shall establish 
a program to be known as the Federal and State Technology Partnership 
program or FAST program, the purpose of which shall be to strengthen 
the technological competitiveness of small business concerns in the 
States.
  (c) Grants and Cooperative Agreements.--
          (1) Joint review.--In carrying out the FAST program under 
        this section, the Administrator and the SBIR managers at the 
        National Science Foundation and the Department of Defense shall 
        jointly review proposals submitted by applicants and may make 
        awards or enter into cooperative agreements under this section 
        based on the factors for consideration specified in paragraph 
        (2), to enhance or develop in a State--
                  (A) technology research and development by small 
                business concerns;
                  (B) technology transfer from university research to 
                technology-based small business concerns;
                  (C) technology deployment and diffusion benefiting 
                small business concerns;
                  (D) the technological capabilities of small business 
                concerns through the establishment or operation of 
                consortia comprised of entities, organizations, or 
                individuals, including--
                          (i) State and local development agencies and 
                        entities;
                          (ii) representatives of technology-based 
                        small business concerns;
                          (iii) industries and emerging companies;
                          (iv) universities; and
                          (v) small business development centers; and
                  (E) outreach, financial support, and technical 
                assistance to technology-based small business concerns 
                participating in or interested in participating in an 
                SBIR, including initiatives--
                          (i) to make grants or loans to companies to 
                        pay a portion or all of the cost of developing 
                        SBIR proposals;
                          (ii) to establish or operate a mentoring 
                        network within the FAST program to provide 
                        business advice and counseling that will assist 
                        small business concerns that have been 
                        identified by FAST program participants, 
                        program managers of participating SBIR 
                        agencies, the Administrator, or other entities 
                        that--
                                  (I) are knowledgeable about the SBIRs 
                                and STTRs as good candidates for SBIRs 
                                and STTRs; and
                                  (II) would benefit from mentoring, in 
                                accordance with subsection (f);
                          (iii) to create or participate in a training 
                        program for individuals providing SBIR outreach 
                        and assistance at the State and local levels; 
                        and
                          (iv) to encourage the commercialization of 
                        technology developed through SBIR funding.
          (2) Selection considerations.--In making awards or entering 
        into cooperative agreements under this section, the 
        Administrator and the SBIR managers at the National Science 
        Foundation and the Department of Defense--
                  (A) may consider only proposals by applicants that 
                intend to use a portion of the Federal assistance 
                provided under this section to provide outreach, 
                financial support, or technical assistance to 
                technology-based small business concerns participating 
                in or interested in participating in an SBIR; and
                  (B) shall consider, at a minimum--
                          (i) whether the applicant has demonstrated 
                        that the assistance to be provided would 
                        address unmet needs of small business concerns 
                        in the community, and whether it is important 
                        to use Federal funding for the proposed 
                        activities;
                          (ii) whether the applicant has demonstrated 
                        that a need exists to increase the number or 
                        success of small high-technology businesses in 
                        the State, as measured by the number of first 
                        phase and second phase SBIR awards that have 
                        historically been received by small business 
                        concerns in the State;
                          (iii) whether the projected costs of the 
                        proposed activities are reasonable;
                          (iv) whether the proposal integrates and 
                        coordinates the proposed activities with other 
                        State and local programs assisting small high-
                        technology firms in the State;
                          (v) the manner in which the applicant will 
                        measure the results of the activities to be 
                        conducted; and
                          (vi) whether the proposal addresses the needs 
                        of--
                                  (I) small business concerns owned and 
                                controlled by women;
                                  (II) small business concerns owned 
                                and controlled by minorities; and
                                  (III) small business concerns located 
                                in areas that have historically not 
                                participated in the SBIR and STTR 
                                programs.
          (3) Proposal limit.--Not more than one proposal may be 
        submitted for inclusion in the FAST program under this section 
        to provide services in any one State in any one fiscal year.
          (4) Process.--
                  (A) Proposals and application.--A proposal or 
                application for assistance under this section shall be 
                in such form and subject to such procedures as the 
                Administrator shall establish.
                  (B) Regulations.--The Administrator shall promulgate 
                regulations establishing standards for the 
                consideration of proposals under paragraph (2), 
                including standards regarding each of the 
                considerations described in paragraph (2)(B).
  (d) Cooperation and Coordination.--In carrying out the FAST program, 
the Administrator shall cooperate and coordinate with--
          (1) SBIR agencies; and
          (2) entities, organizations, and individuals actively engaged 
        in enhancing or developing the technological capabilities of 
        small business concerns, including--
                  (A) State and local development agencies and 
                entities;
                  (B) State committees established under the 
                Experimental Program to Stimulate Competitive Research 
                of the National Science Foundation established under 
                section 113 of the National Science Foundation Act of 
                1988 (42 U.S.C. 1862g);
                  (C) State science and technology councils; and
                  (D) representatives of technology-based small 
                business concerns.
  (e) Requirements.--
          (1) Competitive basis.--An award under this section shall be 
        made or a cooperative agreement under this section shall be 
        entered into on a competitive basis.
          (2) Matching requirements.--
                  (A) Amount of non-federal share.--
                          (i) In general.--The non-Federal share of the 
                        cost of an activity (other than a planning 
                        activity) carried out using an award or under a 
                        cooperative agreement under this section shall 
                        be--
                                  (I) one-third, in the case of a 
                                recipient that will serve small 
                                business concerns located in one of the 
                                18 States receiving the fewest SBIR 
                                first phase awards;
                                  (II) except as provided in 
                                subparagraph (B), one-half, in the case 
                                of a recipient that will serve small 
                                business concerns located in one of the 
                                16 States receiving the greatest number 
                                of SBIR first phase awards; and
                                  (III) except as provided in 
                                subparagraph (B), three-sevenths, in 
                                the case of a recipient that will serve 
                                small business concerns located in a 
                                State not described in subclause (I) or 
                                (II) that is receiving SBIR first phase 
                                awards.
                          (ii) Rankings.--For purposes of clause (i), 
                        the Administrator shall reevaluate the ranking 
                        of a State once every 2 fiscal years, based on 
                        the most recent statistics compiled by the 
                        Administrator.
                  (B) Low-income areas.--To the extent that the Federal 
                contribution to the cost of the activity will be 
                directly allocated by a recipient described in 
                subparagraph (A) to serve small business concerns 
                located in a qualified census tract, the non-Federal 
                share of the cost of an activity carried out using an 
                award or under a cooperative agreement under this 
                section shall be one-third.
                  (C) Types of funding.--
                          (i) In general.--The non-Federal share of the 
                        cost of an activity carried out by a recipient 
                        shall be comprised of not less than 50 percent 
                        cash and not more than 50 percent of indirect 
                        costs and in-kind contributions.
                          (ii) Non-federal source.--None of the non-
                        Federal share of costs or contributions may be 
                        derived from funds from any other Federal 
                        program.
          (3) Duration.--An award may be made or a cooperative 
        agreement may be entered into under this section for multiple 
        years, not to exceed 5 years in total.
  (f) Mentoring Networks.--
          (1) In general.--A recipient of an award or participant in a 
        cooperative agreement under this section may use a reasonable 
        amount of the assistance for the establishment of a mentoring 
        network under this section.
          (2) Criteria.--A mentoring network established using 
        assistance under this section shall--
                  (A) provide business advice and counseling to high 
                technology small business concerns located in the State 
                or region served by the mentoring network and 
                identified under subsection (c)(1)(E)(ii) as potential 
                candidates for an SBIR or STTR;
                  (B) identify volunteer mentors who--
                          (i) are persons associated with a small 
                        business concern that has successfully 
                        completed one or more SBIR or STTR funding 
                        agreements; and
                          (ii) have agreed to guide small business 
                        concerns through all stages of the SBIR or STTR 
                        process, including providing assistance 
                        relating to--
                                  (I) proposal writing;
                                  (II) marketing;
                                  (III) Government accounting;
                                  (IV) Government audits;
                                  (V) project facilities and equipment;
                                  (VI) human resources;
                                  (VII) third phase partners;
                                  (VIII) commercialization;
                                  (IX) venture capital networking; and
                                  (X) other matters relevant to the 
                                SBIRs and STTRs;
                  (C) have experience working with small business 
                concerns participating in the SBIRs and STTRs;
                  (D) contribute information to the national database 
                referred to in paragraph (3); and
                  (E) agree to reimburse volunteer mentors for out-of-
                pocket expenses related to service as a mentor under 
                this section.
          (3) Mentoring database.--The Administrator, directly or by 
        contract, shall--
                  (A) include in the database required by section 26341 
                of this title, in cooperation with the SBIR program, 
                STTR program, and FAST program, information on 
                mentoring networks and mentors participating under this 
                subsection, including a description of their areas of 
                expertise;
                  (B) work cooperatively with mentoring networks to 
                maintain and update the database; and
                  (C) take such action as is necessary to aggressively 
                promote mentoring networks under this subsection.
  (g) Termination.--The authority to carry out the FAST program under 
this section terminates on September 30, 2005.
Sec. 26346. Second phase and third phase awards for testing and 
                    evaluation of products, services, and technologies 
                    for use in a technical or weapons system
  An award for testing and evaluation of a product, service, or 
technology for use in a technical or weapons system may be made in the 
second or third phase of an SBIR or STTR.
Sec. 26347. Innovation in energy efficiency
  (a) Federal Agency Energy-Related Priority.--In carrying out its 
duties under this division relating to SBIR and STTR solicitations by 
Federal agencies, the Administrator shall--
          (1) ensure that Federal agencies give high priority to small 
        business concerns that participate in or conduct energy 
        efficiency or renewable energy system research and development 
        projects; and
          (2) include in the annual report to Congress under section 
        10710(a) of this title a determination of whether the priority 
        described in paragraph (1) is being carried out.
  (b) Consultation.--The Administrator shall consult with the heads of 
other Federal agencies in determining whether priority has been given 
to small business concerns that participate in or conduct energy 
efficiency or renewable energy system research and development 
projects, as required by this section.
  (c) Guidelines.--The Administrator shall, as soon as practicable 
after December 19, 2007, issue guidelines and directives to assist 
Federal agencies in meeting the requirements of this section.

         DIVISION I--SMALL BUSINESS DEVELOPMENT CENTER PROGRAM

         CHAPTER 271--SMALL BUSINESS DEVELOPMENT CENTER PROGRAM

Sec.
27101.  Definitions.
27102.  Financial assistance agreements.
27103.  Plans.
27104.  Services.
27105.  Export enhancement plans.
27106.  Assistance from Federal laboratories.
27107.  Assistance from the National Science Foundation.
27108.  Assistance from the National Aeronautics and Space 
          Administration.
27109.  National Small Business Development Center Advisory Board.
27110.  Small business development center advisory boards.
27111.  Program examination and accreditation.
27112.  Limitations on authority.
27113.  Prohibition of fees for counseling service.
27114.  Veterans assistance and services program
Sec. 27101. Definitions
  In this chapter:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Small 
        Business Development Centers.
          (2) Financial assistance.--The term ``financial assistance'' 
        means financial assistance under a grant, contract, or 
        cooperative agreement.
          (3) Financial assistance agreement.--The term ``financial 
        assistance agreement'' means a grant agreement, contract, or 
        cooperative agreement under which financial assistance is 
        provided under this chapter.
          (4) Program.--The term ``program'' means the small business 
        development center program under this chapter.
          (5) Qualified entity.--The term ``qualified entity'' means--
                  (A) a public or private institution of higher 
                education (including a land-grant college or 
                university, a college or school of business, 
                engineering, commerce, or agriculture, and a community 
                college or junior college);
                  (B) a women's business center operating under chapter 
                273; and
                  (C) any other entity if the entity, on December 31, 
                1990, was receiving a grant or was a party to a 
                contract or cooperative agreement under this chapter.
          (7) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, and American 
        Samoa.
Sec. 27102. Financial assistance agreements
  (a) In General.--Under a program to be known as the small business 
development center program, the Administrator may provide financial 
assistance to a qualified entity to assist in establishing a small 
business development center project for the purpose of providing--
          (1) a small business oriented employment or natural resources 
        development program;
          (2) studies, research, and counseling concerning the 
        managing, financing, and operation of small business concerns;
          (3) management and technical assistance regarding 
        participation by small business concerns in international 
        markets, export promotion, and technology transfer;
          (4) delivery or distribution of services and information in 
        connection with an activity described in paragraph (1), (2), or 
        (3); and
          (5) providing access to business analysts that can refer 
        small business concerns to available experts.
  (b) Requirements.--The Administrator shall require an applicant for 
financial assistance under this chapter with performance commencing on 
or after January 1, 1992, to--
          (1) have its own budget; and
          (2) primarily use institutions of higher education and 
        women's business centers operating under chapter 273 to provide 
        services to the small business community.
  (c) Term.--The term of a financial assistance agreement under 
subsection (a) shall be made on a calendar year basis or to coincide 
with the Federal fiscal year.
  (d) Cooperation.--A small business development center shall work in 
close cooperation with the Administration's regional and local offices, 
the Department of Commerce, appropriate Federal, State, and local 
agencies and the small business community to serve as an active 
information dissemination and service delivery mechanism for existing 
trade promotion, trade finance, trade adjustment, trade remedy, and 
trade data collection programs of particular utility for small business 
concerns.
  (e) Management.--
          (1) In general.--The program shall be under the general 
        management and oversight of the Administrator for the delivery 
        of programs and services to the small business community.
          (2) Programs and services.--Programs and services referred to 
        in paragraph (1) shall be jointly developed, negotiated, and 
        agreed on, with full participation of a qualified entity and 
        the Administrator, under an executed financial assistance 
        agreement between the qualified entity and the Administrator.
  (f) Association of Small Business Development Centers.--
          (1) In general.--Small business development centers may form 
        an Association to pursue matters of common concern.
          (2) Recognition; documents.--
                  (A) In general.--If more than a majority of the small 
                business development centers that are operating under 
                agreements with the Administrator are members of an 
                Association formed under paragraph (1), the 
                Administrator shall--
                          (i) recognize the existence and activities of 
                        the Association; and
                          (ii) consult with the Association and develop 
                        documents--
                                  (I) announcing the annual scope of 
                                activities under this chapter;
                                  (II) requesting proposals to deliver 
                                assistance as provided in this chapter; 
                                and
                                  (III) governing the general 
                                operations and administration of the 
                                program, specifically including the 
                                development of regulations and a 
                                uniform negotiated financial assistance 
                                agreement for use on an annual basis 
                                when entering into individual 
                                negotiated financial assistance 
                                agreements with small business 
                                development centers.
                  (B) Incorporation of certain provisions.--In 
                regulations under subparagraph (A)(ii)((III), 
                provisions governing audits, cost principles and 
                administrative requirements for financial assistance 
                that are included in uniform requirements of Office of 
                Management and Budget Circulars shall be incorporated 
                by reference and shall not be set forth in summary or 
                other form.
          (3) Leveraging of resources.--On an annual basis, a small 
        business development center shall review and coordinate public 
        and private partnerships and cosponsorships with the 
        Administrator for the purpose of more efficiently leveraging 
        available resources on a national and a State basis.
  (g) Funding.--
          (1) Matching amount.--
                  (A) In general.--The Administrator shall require as a 
                condition of any financial assistance agreement (or 
                amendment or modification of a financial assistance 
                agreement) made to a qualified entity under this 
                chapter that a matching amount (excluding any fees 
                collected from recipients of such assistance) equal to 
                the amount of the financial assistance be provided from 
                sources other than the Federal Government, to be 
                comprised of not less than 50 percent cash and not more 
                than 50 percent of indirect costs and in-kind 
                contributions.
                  (B) Restriction.--The matching amount described in 
                subparagraph (A) shall not include any indirect costs 
                or in-kind contributions derived from any Federal 
                program.
          (2) Funding formula.--
                  (A) In general.--Subject to subparagraph (C), the 
                total amount of financial assistance received by 
                recipients of financial assistance in a State under 
                this section shall be equal to an amount determined in 
                accordance with the following formula:
                          (i) Pro rata basis.--The annual amount made 
                        available under section 10903(a) of this title 
                        for the small business development center 
                        program, less any reductions made for expenses 
                        authorized by subparagraph (E), shall be 
                        divided on a pro rata basis, based on the 
                        percentage of the population of each State, as 
                        compared with the population of the United 
                        States.
                          (ii) Minimum funding level.--If the pro rata 
                        amount calculated under clause (i) for any 
                        State is less than the minimum funding level 
                        under subparagraph (C), the Administrator shall 
                        determine the aggregate amount necessary to 
                        achieve that minimum funding level for each 
                        such State.
                          (iii) Deduction.--The aggregate amount 
                        calculated under clause (ii) shall be deducted 
                        from the amount calculated under clause (i) for 
                        States eligible to receive more than the 
                        minimum funding level. The deductions shall be 
                        made on a pro rata basis, based on the 
                        population of each such State, as compared with 
                        the total population of all such States.
                          (iv) Addition.--The aggregate amount deducted 
                        under clause (iii) shall be added to the amount 
                        of financial assistance of the States that are 
                        not eligible to receive more than the minimum 
                        funding level in order to achieve the minimum 
                        funding level for each such State, except that 
                        the eligible amount of financial assistance to 
                        any State shall not be reduced to an amount 
                        below the minimum funding level.
                  (B) Determination of amount of financial 
                assistance.--The amount of financial assistance for 
                which a State is eligible to apply under this paragraph 
                shall be the amount determined under subparagraph (A), 
                subject to any modifications required under 
                subparagraph (C), and shall be based on the amount 
                available for the fiscal year in which performance of 
                the financial assistance agreement commences, but not 
                including amounts distributed in accordance with 
                subparagraph (D). The total amount of financial 
                assistance received by recipients of financial 
                assistance in a State under any provision of this 
                paragraph shall not exceed the amount of matching funds 
                from sources other than the Federal Government, as 
                required under paragraph (1).
                  (C) Minimum funding level.--The amount of the minimum 
                funding level for each State shall be determined for 
                each fiscal year based on the amount made available for 
                that fiscal year to carry out this chapter, as follows:
                          (i) Not less than $81,500,000 and not more 
                        than $90,000,000 made available.--If the amount 
                        made available is not less than $81,500,000 and 
                        not more than $90,000,000, the minimum funding 
                        level shall be $500,000.
                          (ii) Less than $81,500,000 made available.--
                        If the amount made available is less than 
                        $81,500,000, the minimum funding level shall be 
                        the remainder of $500,000 minus a percentage of 
                        $500,000 equal to the percentage amount by 
                        which the amount made available is less than 
                        $81,500,000.
                          (iii) More than $90,000,000 made available.--
                        If the amount made available is more than 
                        $90,000,000, the minimum funding level shall be 
                        the sum of $500,000 plus a percentage of 
                        $500,000 equal to the percentage amount by 
                        which the amount made available exceeds 
                        $90,000,000.
                  (D) Distributions.--Subject to subparagraph (C), if 
                qualified entities in any State do not apply for, or 
                use the full funding eligibility for the State for a 
                fiscal year, the Administrator shall distribute the 
                remaining funds as follows:
                          (i) Amount less than the amount received in 
                        fiscal year 2000.--If the amount of financial 
                        assistance to any State is less than the amount 
                        received by recipients of financial assistance 
                        in that State in fiscal year 2000, the 
                        Administrator shall distribute the remaining 
                        funds, on a pro rata basis, based on the 
                        percentage of shortage of each such State, as 
                        compared with the total amount of such 
                        remaining funds available, to the extent 
                        necessary to increase the amount of the 
                        financial assistance to the amount received by 
                        recipients of financial assistance in that 
                        State in fiscal year 2000, or until such funds 
                        are exhausted, whichever first occurs.
                          (ii) Remaining amount.--If any funds remain 
                        after application of clause (i), the remaining 
                        amount may be distributed as supplemental 
                        financial assistance to applicants in any 
                        State, as the Administrator determines, in the 
                        discretion of the Administrator, to be 
                        appropriate, after consultation with the 
                        Association.
                  (E) Use of amounts.--
                          (i) In general.--Of the amounts made 
                        available in any fiscal year to carry out this 
                        chapter--
                                  (I) not more than $500,000 may be 
                                used by the Administrator to pay 
                                expenses described in paragraphs (2) to 
                                (4) of section 10903(a) of this title; 
                                and
                                  (II) not more than $500,000 may be 
                                used by the Administrator to pay the 
                                examination expenses described in 
                                section 10903(a)(5) of this title.
                          (ii) Limitation.--No funds described in 
                        clause (i) may be used for examination expenses 
                        under section 10903(a)(5) of this title if the 
                        use would reduce the amount of financial 
                        assistance made available under subparagraph 
                        (A)(i) to less than $85,000,000 (after 
                        excluding any amounts provided in 
                        appropriations Acts, or accompanying report 
                        language, for specific institutions or for 
                        purposes other than the general program) or 
                        would further reduce the amount of such 
                        financial assistance below that amount.
                  (F) Exclusions.--Financial assistance provided to 
                grant recipients in a State by the Administrator or 
                another Federal agency to carry out subsection (j) or 
                section 27104(b)(7) of this title, or for supplemental 
                financial assistance under subparagraph (D)(ii) of this 
                paragraph, shall not be included in the calculation of 
                maximum funding for a State under subparagraph (B) of 
                this paragraph.
  (h) Portable Assistance for Startup and Sustainability Non-Matching 
Financial Assistance Programs.--
          (1) In general.--From the funds appropriated under section 
        10903(h) of this title, the Administrator shall reserve not 
        less than $1,000,000 for each fiscal year to develop portable 
        assistance for startup and sustainability non-matching 
        financial assistance programs to be conducted by eligible small 
        business development centers in communities that are 
        economically challenged as a result of a business or government 
        facility downsizing or closing that has resulted in the loss of 
        jobs or small business instability.
          (2) Maximum amount.--Non-matching financial assistance under 
        this subsection shall not exceed $100,000.
          (3) Use.--Non-matching financial assistance under this 
        subsection shall be used for small business development center 
        personnel expenses and related small business programs and 
        services.
  (i) Federal Contracts With Small Business Development Centers.--
          (1) In general.--Subject to paragraph (2), a small business 
        development center may enter into a contract with a Federal 
        agency to provide specific assistance to small business 
        concerns.
          (2) Contract prerequisites.--
                  (A) In general.--Before bidding on a contract under 
                paragraph (1), a small business development center 
                shall receive approval from the Associate Administrator 
                of the subject and general scope of the contract.
                  (B) Approval.--Approval of a contract under paragraph 
                (1) shall be based on a determination that--
                          (i) the contract will provide assistance to 
                        small business concerns; and
                          (ii) performance of the contract will not 
                        hinder the small business development center in 
                        carrying out the terms of the financial 
                        assistance agreement received by the small 
                        business development center from the 
                        Administrator.
          (3) Exemption from matching requirement.--A contract under 
        this subsection shall not be subject to the matching funds or 
        eligibility requirements of subsection (g).
          (4) Nonapplicability to certain contracting goals.--
        Notwithstanding any other provision of law, a contract for 
        assistance under this subsection shall not be applied to a 
        Federal agency's contracting goal under section 25106 of this 
        title for small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, small 
        business concerns owned and controlled by women, or other small 
        business concerns.
  (j) Additional Financial Assistance.--
          (1) In general.--A qualified entity that is funded by the 
        Administrator as a small business development center may apply 
        to the Administrator for additional financial assistance to be 
        used solely to assist, as provided in paragraphs (2) to (7) of 
        section 27104(b), in--
                  (A) the development and enhancement of exports by 
                small business concerns;
                  (B) technology transfer; and
                  (C) outreach, development, and enhancement of 
                minority-owned small business startups or expansions, 
                HUBZone small business concerns, veteran-owned small 
                business startups or expansions, and women-owned small 
                business startups or expansions, in communities 
                affected by base closings or military or corporate 
                downsizing or in rural or underserved communities.
          (2) Compliance requirement.--An applicant applying for 
        additional financial assistance under paragraph (1) shall 
        comply with all of the provisions of this chapter, including 
        providing matching funds.
          (3) Funding.--Funding under this subsection shall be 
        effective for any fiscal year to the extent provided in advance 
        in appropriations Acts.
          (4) Limitation on amount of grant.--No recipient of funds 
        under this subsection shall receive financial assistance that 
        would exceed its pro rata share of a $15,000,000 program based 
        on the populations to be served by the small business 
        development center as compared with the total population of the 
        United States.
          (5) Minimum state eligibility amount.--The minimum amount of 
        eligibility for recipients of financial assistance in any State 
        shall be $100,000.
          (6) Financial assistance to nonprofit entities.--
                  (A) In general.--In a State described in subparagraph 
                (B), the Administrator may provide financial assistance 
                to a nonprofit entity in the State to carry out the 
                activities specified in this subsection.
                  (B) States.--A State referred to in subparagraph (A) 
                is a State in which--
                          (i) the Administrator has not provided 
                        financial assistance under subsection (a); or
                          (ii) no application for financial assistance 
                        has been made by a small business development 
                        center under this subsection within 60 days 
                        after the later of--
                                  (I) the effective date of a financial 
                                assistance agreement under subsection 
                                (a) to the small business development 
                                center; or
                                  (II) the date on which the 
                                Administrator notifies the financial 
                                assistance recipient funded under 
                                subsection (a) that funds are available 
                                for applications for financial 
                                assistance under this subsection.
                  (C) Matching funds.--A nonprofit entity that receives 
                financial assistance under this paragraph shall comply 
                with the matching funds requirement of subsection (g).
                  (D) Appropriations.--Financial assistance under this 
                paragraph shall be effective for any fiscal year only 
                to the extent provided in advance in an appropriations 
                Act.
                  (E) Pro rata share.--The amount of financial 
                assistance provided under this paragraph in a State 
                shall be limited to the pro rata share provisions of 
                paragraph (4).
  (k) Privacy Requirements.--
          (1) In general.--A small business development center, 
        consortium of small business development centers, or contractor 
        or agent of a small business development center may not 
        disclose the name, address, or telephone number of any 
        individual or small business concern receiving assistance under 
        this chapter without the consent of the 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 agency or 
                State agency; or
                  (B) the Administrator considers such a disclosure to 
                be necessary for the purpose of conducting a financial 
                audit of a small business development center.
          (2) Limitation.--A disclosure under this paragraph (1)(B) 
        shall be limited to the information necessary for an audit.
          (3) Use of information by the administrator.--This chapter 
        does not--
                  (A) restrict access by the Administrator to program 
                activity data; or
                  (B) preclude the Administrator from using client 
                information to conduct client surveys.
          (4) 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 
                        (3)(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 of the Administration, who shall 
                include such approval in a semiannual report.
Sec. 27103. Plans
  (a) Provision of Financial Assistance Consistent With Area Plan.--
Financial assistance shall not be made available to a qualified entity 
if approving the assistance would be inconsistent with a plan for the 
area of a State in which service is to be provided that has been 
adopted by an agency recognized by the State as authorized to adopt an 
area plan and approved by the Administrator in accordance with 
standards and requirements established under this chapter.
  (b) Plan.--
          (1) In general.--A qualified entity may apply to participate 
        in the small business development center program by submitting 
        to the Administrator for approval a plan that--
                  (A) identifies the entities authorized under this 
                chapter to participate in the small business 
                development center program;
                  (B) identifies the geographic area to be served;
                  (C) describes the services that the applicant would 
                provide and the method for delivering the services;
                  (D) includes a budget; and
                  (E) includes any other information and assurances 
                that the Administrator may require to ensure that the 
                qualified entity will carry out the activities eligible 
                for assistance.
          (2) Action by the administrator.--
                  (A) In general.--The Administrator may approve, 
                conditionally approve, or reject a qualified entity 
                plan or combination of plans submitted.
                  (B) Review.--In all cases, the Administrator shall 
                review a qualified entity plan--
                          (i) for conformity with an area plan approved 
                        under subsection (a); and
                          (ii) with a view toward providing small 
                        business concerns with the most comprehensive 
                        and coordinated assistance in the State or part 
                        of a State to be served.
  (c) Assistance Outside the State.--The Administrator may permit a 
small business development center to provide advice, information, and 
assistance, as described in section 27104 of this title, to small 
business concerns located outside the State in which the small business 
development center is located, but only to the extent that the small 
business concerns are located within close geographical proximity to 
the small business development center, as determined by the 
Administrator.
Sec. 27104. Services
  (a) In General.--A small business development center shall assist 
small business concerns in solving problems concerning operations, 
manufacturing, engineering, technology exchange and development, 
personnel administration, marketing, sales, merchandising, finance, 
accounting, business strategy development, and other disciplines 
required for small business growth and expansion, innovation, increased 
productivity, and management improvement, and for decreasing industry 
economic concentrations.
  (b) Services To Be Provided.--Services provided by a small business 
development center shall include--
          (1) furnishing one-to-one individual counseling to small 
        business concerns, including--
                  (A) working with individuals to increase awareness of 
                basic credit practices and credit requirements;
                  (B) working with individuals to develop business 
                plans, financial packages, credit applications, and 
                contract proposals;
                  (C) working with the Administrator to develop and 
                provide informational tools for use in working with 
                individuals on pre-business startup planning, existing 
                business expansion, and export planning; and
                  (D) working with individuals referred by the local 
                offices of the Administration and participating 
                lenders;
          (2) assisting in technology transfer, research and 
        development (including applied research), and coupling from 
        existing sources to small business concerns, including--
                  (A) working to increase the access of small business 
                concerns to the capabilities of automated flexible 
                manufacturing systems;
                  (B) working through existing networks and developing 
                new networks for technology transfer that encourage 
                partnership between the small business and academic 
                communities to help commercialize university-based 
                research and development and introduce university-based 
                engineers and scientists to their counterparts in small 
                technology-based firms; and
                  (C) exploring the viability of developing shared 
                production facilities, under appropriate circumstances;
          (3)(A) in cooperation with the Department of Commerce and 
        other relevant Federal agencies, actively assisting small 
        business concerns in exporting by--
                  (i) identifying and developing potential export 
                markets for small business concerns;
                  (ii) facilitating export transactions for small 
                business concerns;
                  (iii) developing linkages between small business 
                concerns and prescreened foreign buyers;
                  (iv) assisting small business concerns in 
                participating in international trade shows;
                  (v) assisting small business concerns in obtaining 
                export financing; and
                  (vi) facilitating the development or reorientation of 
                marketing and production strategies; and
          (B) where appropriate, working with the Administrator in 
        cooperation with the State to establish a State international 
        trade center for the purposes described in subparagraph (A);
          (4)(A) developing a program in conjunction with the Export-
        Import Bank of the United States and local and regional 
        Administration offices that will enable the small business 
        development center to serve as an information network and to 
        assist small business concern applicants for financing programs 
        of the Export-Import Bank of the United States; and
          (B) otherwise identifying and helping to make available 
        export financing programs to small business concerns;
          (5) working closely with the small business community, small 
        business consultants, State agencies, universities, and other 
        appropriate groups to make translation services more readily 
        available to small business concerns doing business, or 
        attempting to develop business, in foreign markets;
          (6) cooperating with the Department of Commerce and other 
        relevant Federal agencies to increase access to available 
        export market information systems, including the Commercial 
        Information Management System;
          (7) assisting small business concerns in developing and 
        implementing strategic business plans to timely and effectively 
        respond to the planned closure (or reduction) of a Department 
        of Defense facility within the community, or actual or 
        projected reductions in small business concerns' business base 
        due to the actual or projected termination (or reduction) of a 
        Department of Defense program or a contract in support of a 
        Department of Defense program by--
                  (A) developing broad economic assessments of the 
                adverse impacts of--
                          (i) the closure (or reduction) of the 
                        Department of Defense facility on the small 
                        business concerns providing goods or services 
                        to the facility or to the military and civilian 
                        personnel stationed or working at the facility; 
                        and
                          (ii) the termination (or reduction) of a 
                        Department of Defense program (or contracts 
                        under a Department of Defense program) on the 
                        small business concerns participating in the 
                        program as a prime contractor, subcontractor, 
                        or supplier at any tier;
                  (B) developing, in conjunction with appropriate 
                Federal, State, and local governmental entities and 
                private sector organizations, the parameters of a 
                transition adjustment program adaptable to the needs of 
                individual small business concerns;
                  (C) conducting appropriate programs to inform the 
                affected small business community regarding the 
                anticipated adverse impacts identified under 
                subparagraph (A) and the economic adjustment assistance 
                available to small business concerns; and
                  (D) assisting small business concerns in developing 
                and implementing an individualized transition business 
                plan;
          (8)(A) maintaining current information concerning Federal, 
        State, and local regulations that affect small business 
        concerns and counsel small business concerns on methods of 
        compliance; and
          (B) providing counseling and technology development when 
        necessary to help small business concerns find solutions for 
        complying with environmental, energy, health, safety, and other 
        Federal, State, and local regulations;
          (9) coordinating and conducting research into technical and 
        general small business problems for which there are no ready 
        solutions;
          (10) providing and maintaining a comprehensive library that 
        contains current information and statistical data needed by 
        small business concerns;
          (11) maintaining a working relationship and open 
        communications with the financial and investment communities, 
        legal associations, local and regional private consultants, and 
        local and regional small business groups and associates to help 
        address the various needs of the small business community;
          (12) conducting in-depth surveys for local small business 
        groups to develop general information regarding the local 
        economy and general small business strengths and weaknesses in 
        the locality;
          (13) in cooperation with the Department of Commerce, the 
        Administrator, and relevant Federal agencies, actively 
        assisting rural small business concerns in exporting by--
                  (A) identifying and developing potential export 
                markets for rural small business concerns;
                  (B) facilitating export transactions for rural small 
                business concerns;
                  (C) developing linkages between rural small business 
                concerns and prescreened foreign buyers;
                  (D) assisting rural small business concerns in 
                participating in international trade shows; and
                  (E) assisting rural small business concerns in 
                obtaining export financing and developing marketing and 
                production strategies;
          (14) assisting rural small business concerns in developing 
        marketing and production strategies that will enable rural 
        small business concerns to better compete in the domestic 
        market;
          (15) assisting rural small business concerns by--
                  (A) providing technical assistance needed by rural 
                small business concerns;
                  (B) making available managerial assistance to rural 
                small business concerns; and
                  (C) providing information and assistance in obtaining 
                financing for business startups and expansion;
          (16) in conjunction with the United States National Tourism 
        Organization, assist rural small business concerns in 
        developing the tourism potential of rural communities by--
                  (A) identifying the cultural, historic, recreational, 
                and scenic resources of rural communities;
                  (B) providing assistance to small business concerns 
                in developing tourism marketing and promotion plans 
                relating to tourism in rural areas; and
                  (C) assisting small business concerns in obtaining 
                capital for starting or expanding businesses primarily 
                serving tourists;
          (17) maintaining lists of local and regional private 
        consultants to whom small business concerns can be referred;
          (18) providing information to small business concerns 
        regarding compliance with regulatory requirements;
          (19) developing informational publications, establishing 
        resource centers of reference materials, and distributing 
        compliance guides published under section 212(a) of the Small 
        Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 
        601 note, Public Law 104-121);
          (20) providing small business concern owners with access to a 
        wide variety of export-related information by establishing on-
        line computer linkages between small business development 
        centers and an international trade data information network 
        with ties to the United States Export Assistance Center 
        program; and
          (21) providing information and assistance to small business 
        concerns with respect to establishing drug-free workplace 
        programs on or before October 1, 2006.
  (c) Upgrading and Modification of Services.--A small business 
development center shall continue to upgrade and modify its services, 
as needed, in order to meet the changing and evolving needs of the 
small business community.
  (d) Location.--
          (1) Proximity of service.--A small business development 
        center shall provide service as close as possible to small 
        business concerns by providing extension services and using 
        satellite locations when necessary.
          (2) Facilities and staff.--The facilities and staff of a 
        small business development center shall be located in such 
        places as to provide maximum accessibility and benefits to the 
        small business concerns that the small business development 
        center is intended to serve.
  (e) Other Programs.--To the extent possible, a small business 
development center shall make full use of other Federal and State 
government programs that are concerned with aiding small business 
concerns.
  (f) Staff.--A small business development center shall have a full-
time staff, including a full-time director who shall have the authority 
to make expenditures under the small business development center's 
budget and who shall manage the program activities.
  (g) Access.--A small business development center shall have access 
to--
          (1) business analysts to counsel, assist, and inform small 
        business clients;
          (2) technology transfer agents to provide state-of-art 
        technology to small business concerns through coupling with 
        national and regional technology data sources;
          (3) information specialists to assist in providing 
        information searches and referrals to small business;
          (4) part-time professional specialists to conduct research or 
        to provide counseling assistance whenever the need arises; and
          (5) laboratory facilities and adaptive engineering 
        facilities.
  (h) Use of Small Business Vendors.--A small business development 
center shall use and compensate as one of its resources qualified 
vendors that are small business concerns, including private management 
consultants, private consulting engineers, and private testing 
laboratories, to provide services as described in this section to small 
business concerns on behalf of the small business development center.
  (i) Cooperation in the Provision of Services.--In performing the 
services described in subsection (b), a small business development 
center shall work in close cooperation with the Administration's 
regional and local offices, the local small business community, and 
appropriate State and local agencies.
  (j) Information Sharing System.--
          (1) In general.--The Associate Administrator, in consultation 
        with the small business development centers, shall develop and 
        implement an information sharing system.
          (2) Financial assistance.--
                  (A) In general.--Subject to amounts approved in 
                advance in appropriations Acts, the Administrator may 
                provide grants or enter into cooperative agreements to 
                one or more small business development centers to carry 
                out this subsection.
                  (B) Duration.--Financial assistance under 
                subparagraph (A) shall be awarded for a period of not 
                more than 5 years.
                  (C) Matching funds.--The matching funds provisions of 
                section 27102 of this title shall not be applicable to 
                a grant or cooperative agreement under subparagraph 
                (A).
          (3) Functions.--The information sharing system shall--
                  (A) allow small business development centers 
                participating in the small business development center 
                program to exchange information about their programs; 
                and
                  (B) provide information central to technology 
                transfer.
Sec. 27105. Export enhancement plans
  (a) In General.--Where appropriate, a small business development 
center shall work in conjunction with the relevant State agency and the 
Department of Commerce to develop a comprehensive plan for enhancing 
the export potential of small business concerns located in the State.
  (b) State Office of International Trade.--An export enhancement plan 
may provide for--
          (1) the cofunding and staffing of a State office of 
        international trade within a small business development center, 
        using joint Federal and State funding; and
          (2) any other appropriate measures directed at improving the 
        export performance of small business concerns in the State.
Sec. 27106. Assistance from Federal laboratories
  (a) In General.--A laboratory that is operated and funded by the 
Federal Government shall cooperate with the Administrator in developing 
and establishing programs to support small business development centers 
by--
          (1) making facilities and equipment available;
          (2) providing experiment station capabilities in adaptive 
        engineering;
          (3) providing library and technical information processing 
        capabilities; and
          (4) providing professional staff for consulting.
  (b) Reimbursement.--The Administrator may reimburse a laboratory for 
the provision of services described in subsection (a).
Sec. 27107. Assistance from the National Science Foundation
  The National Science Foundation shall cooperate with the 
Administrator and with small business development centers in developing 
and establishing programs to support small business development 
centers.
Sec. 27108. Assistance from the National Aeronautics and Space 
                    Administration
  The National Aeronautics and Space Administration and regional 
technology transfer centers supported by the National Aeronautics and 
Space Administration shall cooperate with small business development 
centers participating in the small business development center program.
Sec. 27109. National Small Business Development Center Advisory Board
  (a) Establishment.--There is established a National Small Business 
Development Center Advisory Board (referred to in this section as the 
``Board'').
  (b) Membership.--
          (1) In general.--The Board shall consist of 9 members 
        appointed from civilian life by the Administrator.
          (2) Qualifications.--A member of the Board shall be a person 
        of outstanding qualifications known to be familiar and 
        sympathetic with small business needs and problems.
          (3) Representation.--Not more than 3 members of the Board 
        shall be from universities or their affiliates, and 6 members 
        shall be from small business concerns or associations 
        representing small business concerns.
          (4) Term.--A member of the Board shall serve a term of 3 
        years, with one-third of the members changing each year.
  (c) Chairman.--The Board shall elect a chairman.
  (d) Duties.--The Board shall advise, counsel, and confer with the 
Associate Administrator in carrying out the duties described in this 
chapter.
  (e) Meetings.--The Board shall meet at least semiannually and at the 
call of the Chairman of the Board.
  (f) Compensation.--A member of the Board shall be entitled to be 
compensated at the rate not in excess of the per diem equivalent of the 
maximum rate payable under section 5376 of title 5 for each day engaged 
in activities of the Board and shall be entitled to be reimbursed for 
expenses as a member of the Board.
Sec. 27110. Small business development center advisory boards
  (a) Establishment.--A small business development center shall 
establish an advisory board.
  (b) Chairman.--A small business development center advisory board 
shall elect a chairman.
  (c) Duties.--A small business development center advisory board shall 
advise, counsel, and confer with the director of the small business 
development center on all policy matters pertaining to the operation of 
the small business development center, including the persons that may 
be eligible to receive assistance from, and how local and regional 
private consultants may participate with, the small business 
development center.
Sec. 27111. Program examination and accreditation
  (a) Examination.--The Administrator shall conduct a biennial 
programmatic and financial examination of each small business 
development center.
  (b) Accreditation.--The Administrator may provide financial support, 
by contract or otherwise, to the Association for the purpose of 
developing a small business development center accreditation program.
  (c) Extension or Renewal of Financial Agreements.--
          (1) In general.--In extending or renewing a financial 
        assistance agreement of a small business development center, 
        the Administrator shall consider the results of the examination 
        and accreditation program conducted under subsections (a) and 
        (b).
          (2) Accreditation requirement.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Administrator may not renew or extend a 
                financial assistance agreement with a small business 
                development center unless the small business 
                development center has been approved under the 
                accreditation program conducted under this section.
                  (B) Waiver.--The Associate Administrator may waive 
                the accreditation requirement on a showing that the 
                small business development center is making a good 
                faith effort to obtain accreditation.
Sec. 27112. Limitations on authority
  (a) Appropriations.--The authority to enter into financial assistance 
agreements under this chapter shall be in effect for a fiscal year only 
to the extent and in such amounts as are provided in advance in 
appropriations Acts.
  (b) Suspension, Termination, or Failure To Renew or Extend Financial 
Assistance Agreement.--After the Administrator enters into a financial 
assistance agreement with a qualified entity under this chapter, the 
Administrator shall not suspend, terminate, or fail to renew or extend 
the financial assistance agreement unless the Administrator provides 
the qualified entity with written notification stating the reasons for 
the suspension, termination, or failure to renew or extend and 
affording the qualified entity an opportunity for a hearing, appeal, or 
other administrative proceeding under chapter 5 of title 5.
  (c) Competition for Successor Financial Assistance Agreements.--If a 
financial assistance agreement with a qualified entity under this 
chapter is not renewed or extended, any award of a successor financial 
assistance agreement to another qualified entity under this chapter 
shall be made on a competitive basis.
  (d) No Other Funding.--The Administrator shall not fund any small 
business development center or variation of a small business 
development center except as authorized by this chapter.
Sec. 27113. Prohibition of fees for counseling service
  A small business development center shall not impose or otherwise 
collect a fee or other compensation in connection with the provision of 
counseling service under this chapter.
Sec. 27114. Veterans assistance and services program
  (a) In General.--A small business development center may apply for a 
grant under this section to carry out a veterans assistance and 
services program.
  (b) Elements of Program.--Under a program carried out with a grant 
under this subsection, a small business development center shall--
          (1) create a marketing campaign to promote awareness and 
        education of the services of the small business development 
        center that are available to veterans, and to target the 
        campaign toward veterans, service-disabled veterans, military 
        units, Federal agencies, and veterans organizations;
          (2) use technology-assisted online counseling and distance 
        learning technology to overcome the impediments to 
        entrepreneurship faced by veterans and members of the Armed 
        Forces; and
          (3) increase coordination among organizations that assist 
        veterans, including by establishing virtual integration of 
        service providers and offerings for a one-stop point of contact 
        for veterans who are entrepreneurs or owners of small business 
        concerns.
  (c) Amount of Grants.--A grant under this section shall be for not 
less than $75,000 and not more than $250,000.
  (d) Funding.--Subject to amounts approved in advance in 
appropriations Acts, the Administration may make grants or enter into 
cooperative agreements to carry out this section.

              DIVISION J--WOMEN'S BUSINESS CENTER PROGRAM

              CHAPTER 273--WOMEN'S BUSINESS CENTER PROGRAM

Sec.
27301.  Definitions.
27302.  Financial assistance.
27303.  Conditions of participation.
27304.  Contract authority.
27305.  5-year period.
27306.  Criteria.
27307.  Program examination.
27308.  Suspension, termination, or failure to renew or extend financial 
          assistance.
27309.  Continued funding for women's business centers.
27310.  Privacy requirements.
27311.  Expedited acquisition.
Sec. 27301. Definitions
  In this chapter:
          (1) Assistant administrator.--The term ``Assistant 
        Administrator'' means the Assistant Administrator of the Office 
        of Women's Business Ownership.
          (2) Private nonprofit organization.--The term ``private 
        nonprofit organization'' means an entity that is described in 
        section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. 
        501(c)) and exempt from taxation under section 501(a) of the 
        Code (26 U.S.C. 501(a)).
          (3) Women's business center site.--The term ``women's 
        business center site'' means the location of--
                  (A) a women's business center; or
                  (B) one or more women's business centers, established 
                in conjunction with another women's business center in 
                another location in a State or region--
                          (i) that reach a distinct population that 
                        would otherwise not be served;
                          (ii) the services of which are targeted to 
                        women; and
                          (iii) the scope, function, and activities of 
                        which are similar to those of the primary 
                        women's business center or centers in 
                        conjunction with which it was established.
Sec. 27302. Financial assistance
  (a) In General.--The Administrator may provide financial assistance 
to a private nonprofit organization to conduct a 5-year project for the 
benefit of small business concerns owned and controlled by women.
  (b) Forms of Assistance.--A project under subsection (a) shall 
provide--
          (1) assistance in matters relating to financing, including 
        training and counseling in--
                  (A) how to apply for and secure business credit and 
                investment capital;
                  (B) preparing and presenting financial statements; 
                and
                  (C) managing cash flow and other financial operations 
                of a business concern;
          (2) management assistance, including training and counseling 
        in how to plan, organize, staff, direct, and control each major 
        activity and function of a small business concern; and
          (3) marketing assistance, including training and counseling 
        in--
                  (A) identifying and segmenting domestic and 
                international market opportunities;
                  (B) preparing and executing marketing plans;
                  (C) developing pricing strategies;
                  (D) locating contract opportunities;
                  (E) negotiating contracts; and
                  (F) using varying public relations and advertising 
                techniques.
  (c) Appropriations.--The authority of the Administrator to agree to 
provide financial assistance shall be in effect for each fiscal year 
only to the extent and in the amounts as are provided in advance in 
appropriations Acts.
Sec. 27303. Conditions of participation
  (a) Non-Federal Contributions.--As a condition of receiving financial 
assistance under this chapter, a recipient organization shall agree to 
obtain, after its application has been approved and notice of award has 
been issued, cash contributions from non-Federal sources as follows:
          (1) In the first and second years, one non-Federal dollar for 
        each 2 Federal dollars.
          (2) In the third, fourth, and fifth years, one non-Federal 
        dollar for each Federal dollar.
  (b) Form of Non-Federal Contributions.--Not more than one-half of the 
non-Federal sector matching assistance may be in the form of in-kind 
contributions that are budget line items only, including office 
equipment and office space.
  (c) Form of Federal Contributions.--
          (1) In general.--Financial assistance under this chapter--
                  (A) may be made by grant, contract, or cooperative 
                agreement; and
                  (B) may be provided--
                          (i) in a lump sum or in installments; and
                          (ii) in advance or by reimbursement.
          (2) Partial disbursement before non-federal funds are 
        obtained.--The Administrator may disburse up to 25 percent of 
        each year's Federal share awarded to a recipient organization 
        after notice of the award has been issued and before the non-
        Federal sector matching funds are obtained.
          (3) Failure to obtain non-federal funding.--If a recipient of 
        assistance fails to obtain the required non-Federal 
        contribution during a project--
                  (A) the recipient shall not be eligible thereafter 
                for advance disbursements--
                          (i) during the remainder of that project; or
                          (ii) for any other project for which the 
                        recipient is or may be funded by the 
                        Administrator; and
                  (B) before approving assistance to the recipient for 
                any other project, the Administrator shall--
                          (i) specifically determine whether the 
                        Administrator believes that the recipient will 
                        be able to obtain the requisite non-Federal 
                        funding; and
                          (ii) make a written finding stating the 
                        reasons for making the determination.
Sec. 27304. Contract authority
  (a) In General.--A women's business center may enter into a contract 
with a Federal agency to provide specific assistance to women and other 
underserved small business concerns.
  (b) Limitation.--Performance of a contract under subsection (a) 
should not hinder a women's business center in carrying out the terms 
of the grant, contract, or cooperative agreement received by the 
women's business center from the Administrator.
Sec. 27305. 5-year period
  (a) Submission of Plan.--An organization that applies for financial 
assistance under this chapter initially shall submit a 5-year plan to 
the Administrator on proposed fundraising and training activities.
  (b) Assistance Period.--An organization may receive financial 
assistance under this chapter for any one women's business center site 
for a maximum of 5 years.
Sec. 27306. Criteria
  (a) In General.--The Administrator shall evaluate and rank applicants 
in accordance with predetermined selection criteria that shall be 
stated in terms of relative importance.
  (b) Availability.--The criteria and their relative importance shall 
be made publicly available and stated in each solicitation for 
applications made by the Administrator.
  (c) Criteria Included.--The criteria shall include--
          (1) the experience of the applicant in conducting programs or 
        ongoing efforts designed to impart or upgrade the business 
        skills of women business owners or potential owners;
          (2) the present ability of the applicant to commence a 
        project within a minimum amount of time;
          (3) the ability of the applicant to provide training and 
        services to a representative number of women who are both 
        socially and economically disadvantaged; and
          (4) the location for the women's business center site 
        proposed by the applicant.
Sec. 27307. Program examination
  (a) In General.--The Administrator shall--
          (1) conduct an annual programmatic and financial examination 
        of each women's business center under which a women's business 
        center shall provide to the Administrator--
                  (A) an itemized cost breakdown of actual expenditures 
                for costs incurred during the preceding year; and
                  (B)(i) documentation regarding the amount of matching 
                assistance from non-Federal sources obtained and 
                expended by the women's business center during the 
                preceding year to meet the requirements of section 
                27303 of this title; and
                  (ii) with respect to any in-kind contributions 
                described in section 27303(b) of this title that were 
                used to satisfy the requirements of section 27303 of 
                this title, verification of the existence and valuation 
                of those contributions; and
          (2) analyze the results of each such examination and, based 
        on that analysis, make a determination regarding the 
        programmatic and financial viability of each women's business 
        center.
  (b) Conditions for Continued Funding.--In determining whether to 
award a sustainability grant or renew financial assistance to a women's 
business center, the Administrator--
          (1) shall consider the results of the most recent examination 
        of the women's business center under subsection (a); and
          (2) may withhold the award or renewal if the Administration 
        determines that--
                  (A)(i) the women's business center has failed to 
                provide any information required to be provided under 
                subparagraph (A) or (B) of subsection (a)(1); or
                  (ii) the information provided by the women's business 
                center is inadequate; or
                  (B)(i) the women's business center has failed to 
                provide any information required to be provided by the 
                women's business center for purposes of the report of 
                the Administrator under section 10711 of this title; or
                  (ii) the information provided by the women's business 
                center is inadequate.
Sec. 27308. Suspension, termination, or failure to renew or extend 
                    financial assistance
  After the Administrator agrees to provide financial assistance to an 
applicant under this chapter, the Administrator shall not suspend, 
terminate, or fail to renew or extend the financial assistance unless 
the Administrator--
          (1) provides the applicant with written notification stating 
        the reasons for suspension, termination, or failure to renew or 
        extend; and
          (2) affords the applicant an opportunity for a hearing, 
        appeal, or other administrative proceeding under chapter 5 of 
        title 5.
Sec. 27309. Continued funding for women's business centers
  (a) In General.--A nonprofit organization described in subsection (b) 
shall be eligible to receive, subject to subsection (c), a 3-year grant 
under this subsection.
  (b) Applicability.--A nonprofit organization described in this 
subsection is a nonprofit organization that has received funding under 
section 27302 of this title.
  (c) Application and Approval Criteria.--
          (1) Criteria.--Subject to paragraph (2), the Administrator 
        shall develop and publish criteria for the consideration and 
        approval of applications by nonprofit organizations under this 
        section.
          (2) Contents.--Except as otherwise provided in this section, 
        the conditions for participation in the grant program under 
        this section shall be the same as the conditions for 
        participation in the program under section 29(l) of the Small 
        Business Act (15 U.S.C. 656(l)) (as in effect on May 25, 2007).
          (3) 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 
        section and notify the applicant for each such application.
  (d) Award of Grants.--
          (1) In general.--Subject to the availability of 
        appropriations, the Administrator shall make a grant for the 
        Federal share of the cost of activities described in the 
        application to each applicant approved under this section.
          (2) Amount.--A grant under this section shall be for not more 
        than $150,000 for each year of the grant.
          (3) Federal share.--The Federal share of the cost of 
        activities funded under this section shall be not more than 50 
        percent.
          (4) Priority.--In allocating funds made available for grants 
        under this chapter, the Administrator shall give applications 
        under this section priority over first-time applications under 
        27302 of this title.
  (e) Renewal.--
          (1) In general.--The Administrator may renew a grant under 
        this section for additional 3-year periods, if the nonprofit 
        organization submits an application for renewal at such time, 
        in such manner, and accompanied by such information as the 
        Administrator may establish.
          (2) Unlimited renewals.--There shall be no limitation on the 
        number of times that a grant may be renewed under paragraph 
        (1).
Sec. 27310. Privacy requirements
  (a) In General.--A women's business center may not disclose the name, 
address, or telephone number of any individual or small business 
concern receiving assistance under this chapter without the consent of 
the individual or small business concern, unless--
          (1) the Administrator is ordered to make such a disclosure by 
        a court in any civil or criminal enforcement action initiated 
        by a Federal agency or State agency; or
          (2) the Administrator considers such a disclosure to be 
        necessary for the purpose of conducting a financial audit of a 
        women's business center, but a disclosure under this paragraph 
        shall be limited to the information necessary for the audit.
  (b) Use of Information by the Administrator.--This section does not--
          (1) restrict access by the Administrator to program activity 
        data; or
          (2) preclude the Administrator from using client information 
        (other than the information described in paragraph (1)) to 
        conduct client surveys.
  (c) Regulations.--The Administrator shall issue regulations to 
establish standards for requiring disclosures during a financial audit 
under subsection (a)(2).
Sec. 27311. Expedited acquisition
  Notwithstanding any other provision of law, the Administrator, acting 
through the Assistant Administrator, may use such expedited acquisition 
methods as the Administrator determines to be appropriate to carry out 
this chapter, except that the Administrator shall ensure that all small 
business sources are provided a reasonable opportunity to submit 
proposals.

                  DIVISION K--VETERANS AND RESERVISTS

                  CHAPTER 275--VETERANS AND RESERVISTS

Sec.
27501.  Definitions.
27502.  Veterans business development interagency task force.
27503.  Advisory Committee on Veterans Business Affairs.
27504.  Participation in transition assistance program workshops.
27505.  Women veterans business training
27506.  Information collection.
27507.  Entrepreneurial training, counseling, and management assistance.
27508.  Outreach.
27509.  Memorandum of understanding with SCORE.
27510.  Memorandum of understanding with the Secretary of Veterans 
          Affairs and the Association.
27511.  Dissemination of information.
27512.  Memorandum of understanding with the Secretary of Labor and the 
          Secretary of Veterans Affairs.
27513.  Data collection.
27514.  National Veterans Business Development Corporation.
27515.  Relief from time limitations.
Sec. 27501. Definitions
  In this chapter:
          (1) Associate Administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Veterans 
        Business Development under section 10304(b) of this title.
          (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Veterans Business Development Advisory Committee 
        established under section 27503.
          (3) Corporation.--The term ``Corporation'' means the National 
        Veterans Business Development Corporation established under 
        section 27514.
          (4) Interagency Task force.--The term ``Interagency Task 
        Force'' means the veterans business development interagency 
        task force established under section 27502.
Sec. 27502. Veterans business development interagency task force
  (a) Establishment.--The President shall establish an interagency task 
force to coordinate the efforts of Federal agencies necessary to 
improve capital and business development opportunities for, and ensure 
achievement of the pre-established Federal contracting goals for, small 
business concerns owned and controlled by service-disabled veterans and 
small business concerns owned and controlled by veterans.
  (b) Membership.--The members of the Interagency Task Force shall 
include--
          (1) the Administrator, who shall serve as chairperson of the 
        Interagency Task Force;
          (2) a senior level representative from--
                  (A) the Department of Veterans Affairs;
                  (B) the Department of Defense;
                  (C) the Administration (in addition to the 
                Administrator);
                  (D) the Department of Labor;
                  (E) the Department of the Treasury;
                  (F) the General Services Administration;
                  (G) the Office of Management and Budget; and
          (3) 4 representatives from a veterans service organization or 
        military organization or association, selected by the 
        President.
  (c) Duties.--The Interagency Task Force shall--
          (1) consult regularly with veterans service organizations and 
        military organizations in performing the duties of the 
        Interagency Task Force; and
          (2) coordinate administrative and regulatory activities and 
        develop proposals relating to--
                  (A) improving capital access and capacity of small 
                business concerns owned and controlled by service-
                disabled veterans and small business concerns owned and 
                controlled by veterans through loans, surety bonding, 
                and franchising;
                  (B) ensuring achievement of the pre-established 
                Federal contracting goals for small business concerns 
                owned and controlled by service-disabled veterans and 
                small business concerns owned and controlled by 
                veterans through expanded mentor-protege assistance and 
                matching such small business concerns with contracting 
                opportunities;
                  (C) increasing the integrity of certifications of 
                status as a small business concern owned and controlled 
                by service-disabled veterans or a small business 
                concern owned and controlled by veterans;
                  (D) reducing paperwork and administrative burdens on 
                veterans in accessing business development and 
                entrepreneurship opportunities;
                  (E) increasing and improving training and counseling 
                services provided to small business concerns owned and 
                controlled by veterans; and
                  (F) making other improvements relating to the support 
                for veterans business development by the Federal 
                Government.
Sec. 27503. Advisory Committee on Veterans Business Affairs
  (a) In General.--There is established an advisory committee to be 
known as the Advisory Committee on Veterans Business Affairs, which 
shall serve as an independent source of advice and policy 
recommendations to--
          (1) the Administrator;
          (2) the Associate Administrator;
          (3) Congress;
          (4) the President; and
          (5) other United States policymakers.
  (b) Membership.--
          (1) In general.--The Committee shall be composed of 15 
        members appointed by the Administrator, of whom--
                  (A) 8 shall be veterans who are owners of small 
                business concerns; and
                  (B) 7 shall be representatives of veterans 
                organizations.
          (2) Political affiliation.--Not more than 8 members of the 
        Committee shall be of the same political party as the 
        President.
          (3) Prohibition of federal employment.--
                  (A) In general.--Except as provided in subparagraph 
                (B), no member of the Advisory Committee may serve as 
                an officer or employee of the United States.
                  (B) Exception.--A member of the Advisory Committee 
                who accepts a position as an officer or employee of the 
                United States after the date of the member's 
                appointment to the Advisory Committee may continue to 
                serve on the Advisory Committee for not more than 30 
                days after accepting the position.
          (4) Term of service.--The term of service of a member of the 
        Advisory Committee shall be 3 years.
          (5) Vacancies.--The Administrator shall fill any vacancies on 
        the membership of the Advisory Committee not later than 30 days 
        after the date on which the vacancy occurs.
          (6) Chairperson.--
                  (A) In general.--The members of the Advisory 
                Committee shall elect one of the members to be 
                Chairperson of the Advisory Committee.
                  (B) Vacancies in office of chairperson.--Any vacancy 
                in the office of the Chairperson of the Advisory 
                Committee shall be filled by the Advisory Committee at 
                the first meeting of the Advisory Committee following 
                the date on which the vacancy occurs.
  (c) Duties.--The duties of the Advisory Committee shall be to--
          (1) review, coordinate, and monitor plans and programs, 
        developed in the public and private sectors, that affect the 
        ability of small business concerns owned and controlled by 
        veterans to obtain capital and credit and to access markets;
          (2) promote the collection of business information and survey 
        data as they relate to veterans and small business concerns 
        owned and controlled by veterans;
          (3) monitor and promote plans, programs, and operations of 
        Federal agencies that may contribute to the formation and 
        growth of small business concerns owned and controlled by 
        veterans;
          (4) develop and promote initiatives, policies, programs, and 
        plans designed to foster small business concerns owned and 
        controlled by veterans; and
          (5) in cooperation with the Corporation, develop a 
        comprehensive plan, to be updated annually, for joint public-
        private sector efforts to facilitate growth and development of 
        small business concerns owned and controlled by veterans.
  (d) Powers.--
          (1) Hearings.--Subject to subsection (e), the Advisory 
        Committee may hold such hearings, sit and act at such times and 
        places, take such testimony, and receive such evidence as the 
        Advisory Committee considers advisable to carry out its duties.
          (2) Information from federal agencies.--On request of the 
        Chairperson of the Advisory Committee, the head of any Federal 
        agency or the Government Accountability Office shall furnish 
        such information to the Advisory Committee as the Advisory 
        Committee considers to be necessary to carry out its duties.
          (3) Use of mails.--The Advisory Committee may use the United 
        States mails in the same manner and under the same conditions 
        as other Federal agencies.
          (4) Gifts.--The Advisory Committee may accept, use, and 
        dispose of gifts or donations of services or property.
  (e) Meetings.--
          (1) In general.--The Advisory Committee shall meet, not less 
        than 3 times per year, at the call of the Chairperson or at the 
        request of the Administrator.
          (2) Location.--Each meeting of the full Advisory Committee 
        shall be held at the headquarters of the Small Business 
        Administration in Washington, District of Columbia. The 
        Administrator shall provide suitable meeting facilities and 
        such administrative support as is necessary for each full 
        meeting of the Advisory Committee.
          (3) Task groups.--The Advisory Committee may from time to 
        time establish temporary task groups as may be necessary in 
        order to carry out the duties of the Advisory Committee.
  (f) Compensation and Expenses.--
          (1) No compensation.--Members of the Advisory Committee shall 
        serve without compensation for their service to the Advisory 
        Committee.
          (2) Expenses.--The members of the Advisory Committee shall be 
        reimbursed for travel and subsistence expenses in accordance 
        with section 5703 of title 5.
  (g) Report.--Not later than 30 days after the end of each fiscal 
year, the Committee shall submit to Congress and the President a report 
describing the activities of the Advisory Committee and any 
recommendations developed by the Advisory Committee for the promotion 
of small business concerns owned and controlled by veterans.
Sec. 27504. Participation in transition assistance program workshops
  (a) In General.--The Associate Administrator shall increase veteran 
outreach by ensuring that veteran business outreach centers regularly 
participate, on a nationwide basis, in the workshops of the transition 
assistance program of the Department of Labor.
  (b) Presentations.--In carrying out subsection (a), a veteran 
business outreach center may provide grants to entities located in 
transition assistance program locations to make presentations on the 
opportunities available from the Administrator for recently separating 
or separated veterans. A presentation under this subsection shall 
include, at a minimum, a description of the entrepreneurial and 
business training resources available from the Administrator.
  (c) Written Materials.--The Associate Administrator shall--
          (1) create written materials that provide comprehensive 
        information on self-employment and veterans entrepreneurship, 
        including information on resources available from the 
        Administrator on such topics; and
          (2) make the materials created under paragraph (1) available 
        to the Secretary of Labor for inclusion in the transition 
        assistance program manual.
  (d) Reports.--The Associate Administrator shall submit to Congress 
progress reports on the implementation of this section.
Sec. 27505. Women veterans business training
  The Associate Administrator shall--
          (1) compile information on existing resources available to 
        women veterans for business training, including resources for--
                  (A) vocational and technical education;
                  (B) general business skills, such as marketing and 
                accounting; and
                  (C) business assistance programs targeted to women 
                veterans; and
          (2) disseminate the information compiled under paragraph (1) 
        through veteran business outreach centers and women's business 
        centers.
Sec. 27506. Information collection
  (a) Identification.--The Secretary of Veterans Affairs, in 
consultation with the Assistant Secretary for Veterans' Employment and 
Training and the Administrator, shall engage in efforts each year to 
identify small business concerns owned and controlled by disabled 
veterans in the United States.
  (b) Provision of Information.--The Secretary of Veterans Affairs 
shall inform each small business concern identified under this section 
that information on Federal procurement is available from the 
Administrator.
Sec. 27507. Entrepreneurial training, counseling, and management 
                    assistance
  The Administrator shall take such actions as are necessary to ensure 
that small business concerns owned and controlled by disabled veterans 
have access to programs established under this subtitle that provide 
entrepreneurial training, business development assistance, counseling, 
and management assistance to small business concerns, including, among 
others, the small business development center program and the SCORE 
program.
Sec. 27508. Outreach
  (a) In General.--The Administrator, the Secretary of Veterans 
Affairs, and the Assistant Secretary of Labor for Veterans' Employment 
and Training shall develop and implement a program of comprehensive 
outreach to assist disabled veterans.
  (b) Activities.--The program under subsection (a) shall include 
business training and management assistance, employment and relocation 
counseling, and dissemination of information on veterans' benefits and 
veterans' entitlements.
Sec. 27509. Memorandum of understanding with the SCORE
  (a) In General.--The Administrator shall enter into a memorandum of 
understanding with SCORE to provide for--
          (1) the appointment by SCORE in its national office of an 
        individual to act as National Veterans Business Coordinator, 
        whose duties shall relate exclusively to veterans business 
        matters, and who shall be responsible for the establishment and 
        administration of a program to coordinate counseling and 
        training regarding entrepreneurship to veterans through the 
        chapters of SCORE throughout the United States;
          (2) the provision of assistance by SCORE in maintaining a 
        toll-free telephone number and an internet website to provide 
        access for veterans to information about the counseling and 
        training regarding entrepreneurship available to veterans 
        through SCORE; and
          (3) the collection of statistics concerning services provided 
        by SCORE to service-disabled veterans and other veterans for 
        inclusion in each annual report published by the Administrator 
        under section 10713 of this title.
  (b) Resources.--The Administrator shall provide SCORE such resources 
as the Administrator determines to be necessary for SCORE to carry out 
the requirements of the memorandum of understanding specified under 
subsection (a).
Sec. 27510. Memorandum of understanding with the Secretary of Veterans 
                    Affairs and the Association
  (a) In General.--The Secretary of Veterans Affairs, the 
Administrator, and the head of the Association shall enter into a 
memorandum of understanding with respect to entrepreneurial assistance 
to service-disabled veterans and other veterans through small business 
development centers and facilities of the Department of Veterans 
Affairs.
  (b) Forms of Assistance.--Assistance provided under the memorandum of 
understanding shall include--
          (1) conducting of studies and research, and the distribution 
        of information generated by such studies and research, on the 
        formation, management, financing, marketing, and operation of 
        small business concerns by veterans;
          (2) provision of training and counseling to veterans 
        concerning the formation, management, financing, marketing, and 
        operation of small business concerns;
          (3) provision of management and technical assistance to the 
        owners and operators of small business concerns regarding 
        international markets, the promotion of exports, and the 
        transfer of technology;
          (4) provision of assistance and information to veterans 
        regarding procurement opportunities with Federal, State, and 
        local agencies, especially such agencies funded in whole or in 
        part with Federal funds;
          (5) establishment of an information clearinghouse to collect 
        and distribute information, including by electronic means, on 
        the assistance programs of Federal, State, and local 
        governments, and of the private sector, including information 
        on office locations, key personnel, telephone numbers, mail and 
        electronic addresses, and contracting and subcontracting 
        opportunities;
          (6) provision of internet or other distance learning academic 
        instruction for veterans in business subjects, including 
        accounting, marketing, and business fundamentals; and
          (7) compilation of a list of small business concerns owned 
        and controlled by service-disabled veterans that provide 
        products or services that could be procured by the United 
        States, and delivery of the list to each Federal agency.
  (c) List of Small Business Concerns.--The list described in 
subsection (b)(7)--
          (1) shall be delivered in hard copy and electronic form; and
          (2) shall include the name and address of each small business 
        concern owned and controlled by service-disabled veterans and 
        the products or services that it provides.
Sec. 27511. Dissemination of information
  Each fiscal year, the Secretary of Veterans Affairs shall--
          (1) in consultation with the Assistant Secretary of Labor for 
        Veterans' Employment and Training and the Administrator, 
        identify small business concerns owned and controlled by 
        veterans in the United States; and
          (2) inform each small business concern owned and controlled 
        by veterans identified under paragraph (1) that information on 
        Federal procurement is available from the Administrator, as 
        provided in section 24115(b) of this title.
Sec. 27512. Memorandum of understanding with the Secretary of Labor and 
                    the Secretary of Veterans Affairs
  (a) In General.--The Secretary of Labor, the Secretary of Veterans 
Affairs, and the Administrator shall enter into a memorandum of 
understanding to provide for coordination of vocational rehabilitation 
services, technical and managerial assistance, and financial assistance 
to veterans (including service-disabled veterans) seeking to employ 
themselves by forming or expanding small business concerns.
  (b) Contents.--The memorandum of understanding shall include 
recommendations for expanding existing programs or establishing new 
programs to provide services described in subsection (a) or assistance 
to veterans (including service-disabled veterans).
Sec. 27513. Data collection
  The Federal Procurement Data System described in section 6(d)(4)(A) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
405(d)(4)(A)) shall collect data regarding the percentage and dollar 
value of prime contracts and subcontracts awarded to small business 
concerns owned and controlled by veterans (including small business 
concerns owned and controlled by service-disabled veterans).
Sec. 27514. National Veterans Business Development Corporation
  (a) Definitions.--In this section:
          (1) Advisory board.--The term ``Advisory Board'' means the 
        Professional Certification Advisory Board established under 
        subsection (i).
          (2) Board of directors.--The term ``Board of Directors'' 
        means the board of directors of the Corporation.
          (3) Corporation.--The term ``Corporation'' means the National 
        Veterans Business Development Corporation established by 
        subsection (b).
  (b) Establishment.--
          (1) In general.--There is established a federally chartered 
        corporation to be known as the National Veterans Business 
        Development Corporation, which shall be incorporated under the 
        laws of the District of Columbia and which shall have the 
        powers granted in this section.
          (2) Status.--Notwithstanding any other provision of law, the 
        Corporation is a private entity and not an agency, 
        instrumentality, authority, entity, or establishment of the 
        United States Government.
  (c) Purposes of the Corporation.--The purposes of the Corporation 
shall be--
          (1) to expand the provision of and improve access to 
        technical assistance regarding entrepreneurship for the 
        Nation's veterans; and
          (2) to assist veterans with the formation and expansion of 
        small business concerns by working with and organizing public 
        and private resources, including those of--
                  (A) the Administration;
                  (B) the Department of Veterans Affairs, Department of 
                Labor, Department of Commerce, and Department of 
                Defense;
                  (C) SCORE;
                  (D) small business development centers; and
                  (E) the business development staffs of each Federal 
                agency.
  (d) Board of Directors.--
          (1) In general.--The management of the Corporation shall be 
        vested in a Board of Directors composed of 9 voting members and 
        3 nonvoting ex officio members.
          (2) Appointment of voting members.--The President shall, 
        after considering recommendations proposed by the Chairmen and 
        Ranking Members of the Committee on Small Business and 
        Entrepreneurship and Committee on Veterans Affairs of the 
        Senate and the Committee on Small Business and Committee on 
        Veterans Affairs of the House of Representatives, appoint 
        United States citizens to be voting members of the Board of 
        Directors, not more than 5 of whom shall be members of the same 
        political party.
          (3) Ex officio members.--The Administrator, the Secretary of 
        Defense, and the Secretary of Veterans Affairs shall serve as 
        the nonvoting ex officio members of the Board of Directors.
          (4) Chairperson.--The voting members of the Board of 
        Directors shall elect one such member to serve as chairperson 
        of the Board of Directors for a term of 2 years.
          (5) Terms of voting members.--
                  (A) In general.--A voting member of the Board of 
                Directors shall serve a term of 6 years.
                  (B) Unexpired terms.--A member of the Board of 
                Directors appointed to fill a vacancy occurring before 
                the expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of the term. A member may serve after the 
                expiration of that member's term until a successor 
                takes office.
          (6) Vacancies.--A vacancy on the Board of Directors shall be 
        filled in the manner in which the original appointment was 
        made. In the case of a vacancy in the office of the 
        Administrator or the Secretary of Veterans Affairs, and pending 
        the appointment of a successor, an acting appointee for the 
        vacancy may serve as an ex officio member.
          (7) Ineligibility for other offices.--No voting member of the 
        Board of Directors may be an officer or employee of the United 
        States while serving as a member of the Board of Directors or 
        during the 2-year period preceding that service.
          (8) Fairness, impartiality, and nondiscrimination.--The Board 
        of Directors shall administer the affairs of the Corporation 
        fairly, impartially, and without discrimination.
          (9) Obligations and expenses.--The Board of Directors shall 
        prescribe the manner in which the obligations of the 
        Corporation may be incurred and in which its expenses shall be 
        allowed and paid.
          (10) Quorum.--Five voting members of the Board of Directors 
        shall constitute a quorum, but a lesser number may hold 
        hearings.
  (e) Corporate Powers.--The Corporation shall have the authority--
          (1) to adopt and use a corporate seal;
          (2) to have succession until dissolved by Act of Congress;
          (3) to make contracts or grants;
          (4) to sue and be sued and to file and defend against 
        lawsuits in Federal or State court;
          (5) to appoint, through the actions of the Board of 
        Directors, officers and employees of the Corporation, to define 
        their duties and responsibilities and fix their compensation, 
        and to dismiss at will such officers or employees;
          (6) to prescribe, through the actions of the Board of 
        Directors, bylaws not inconsistent with Federal law and the law 
        of the District of Columbia, regulating the manner in which its 
        general business may be conducted and the manner in which the 
        privileges granted to it by law may be exercised;
          (7) to exercise, through the actions of the Board of 
        Directors or duly authorized officers, all powers specifically 
        granted by this section, and such incidental powers as are 
        necessary;
          (8) to solicit, receive, and disburse funds from private, 
        Federal, State, and local organizations;
          (9) to accept and employ or dispose of in furtherance of the 
        purposes of this section any money or property, real, personal, 
        or mixed, tangible or intangible, received by gift, devise, 
        bequest, or otherwise;
          (10) to accept voluntary and uncompensated services; and
          (11) to use the United States mails in the same manner and 
        under the same conditions as the Federal agencies.
  (f) Corporate Funds.--
          (1) Deposit of funds.--The Board of Directors shall deposit 
        all funds of the Corporation in federally chartered and insured 
        depository institutions until the funds are disbursed under 
        paragraph (2).
          (2) Disbursement of funds.--Funds of the Corporation may be 
        disbursed only for purposes that--
                  (A) are approved by the Board of Directors by a 
                recorded vote with a quorum present; and
                  (B) are in accordance with the purposes of the 
                Corporation as specified in subsection (c).
  (g) Network of Information and Assistance Centers.--In carrying out 
the purposes of the Corporation specified in subsection (c), the 
Corporation shall establish and maintain a network of information and 
assistance centers for use by veterans and the public.
  (h) Professional Certification Advisory Board.--
          (1) In general.--Acting through the Board of Directors, the 
        Corporation shall establish a Professional Certification 
        Advisory Board to create uniform guidelines and standards for 
        the professional certification of members of the Armed Services 
        to aid in their efficient and orderly transition to civilian 
        occupations and professions and to remove potential barriers in 
        the areas of licensure and certification.
          (2) Membership.--
                  (A) In general.--The members of the Advisory Board--
                          (i) shall serve without compensation;
                          (ii) shall meet in the District of Columbia 
                        not less than quarterly; and
                          (iii) shall be appointed by the Board of 
                        Directors as provided in subparagraphs (B) and 
                        (C).
                  (B) Private sector members.--The Board of Directors 
                shall appoint not fewer than 7 members for terms of 2 
                years to represent private sector organizations and 
                associations, including the American Association of 
                Community Colleges, the Society for Human Resource 
                Managers, the Coalition for Professional Certification, 
                the Council on Licensure and Enforcement, and the 
                American Legion.
                  (C) Public sector members.--The Board of Directors 
                shall--
                          (i) invite public sector members to serve at 
                        the discretion of Federal agencies;
                          (ii) encourage the participation of the Under 
                        Secretary of Defense for Personnel and 
                        Readiness;
                          (iii) encourage the participation of two 
                        officers from each branch of the Armed Forces 
                        to represent the Training Commands of their 
                        branch; and
                          (iv) seek the participation and guidance of 
                        the Assistant Secretary of Labor for Veterans' 
                        Employment and Training.
  (i) Annual Reports.--On or before October 1 of each year, the Board 
of Directors shall submit to the President and Congress a report that--
          (1) describes the activities and accomplishments of the 
        Corporation for the preceding year;
          (2) includes the Corporation's findings regarding the efforts 
        of Federal, State, and private organizations to assist veterans 
        in the formation and expansion of small business concerns; and
          (3) includes any recommendations by the Corporation for the 
        promotion of small business concerns owned and controlled by 
        veterans.
Sec. 27515. Relief from time limitations
  (a) In General.--Any time limitation on any qualification, 
certification, or period of participation imposed under this subtitle 
or subtitle I on any program that is available to small business 
concerns shall be extended for a small business concern that--
          (1) is owned and controlled by--
                  (A) a veteran who was called or ordered to active 
                duty on or after September 11, 2001, under a provision 
                of law specified in section 101(a)(13)(B) of title 10; 
                or
                  (B) a service-disabled veteran who became such a 
                veteran due to an injury or illness incurred or 
                aggravated in the active military, naval, or air 
                service during a period of active duty pursuant to a 
                call or order to active duty on or after September 11, 
                2001, under a provision of law specified in section 
                101(a)(13)(B) of title 10; and
          (2) was subject to the time limitation during that period of 
        active duty.
  (b) Duration.--On submission of proper documentation to the 
Administrator, the extension of a time limitation under subsection (a) 
shall be equal to the period of time that the veteran who owned or 
controlled a small business concern was on active duty as described in 
subsection (a).
  (c) Exception for Programs Subject to Federal Credit Reform Act of 
1990.--Subsections (a) and (b) do not apply to any program subject to 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

                       DIVISION X--MISCELLANEOUS

                       CHAPTER 291--MISCELLANEOUS

Sec.
51101.  Management assistance for small business concerns affected by 
          military operations.
51102.  Business grants and cooperative agreements.
51103.  Voluntary agreements and programs.
51104.  Paul D. Coverdell drug-free workplace program.
Sec. 29101. Management assistance for small business concerns affected 
                    by military operations
  (a) Definition of Period of Military Conflict.--In this section, the 
term ``period of military conflict'' means--
          (1) a period of war declared by Congress;
          (2) a period of national emergency declared by Congress or by 
        the President; or
          (3) a period of a contingency operation (as defined in 
        section 101(a) of title 10).
  (b) Assistance.--The Administrator shall use, as appropriate, the 
entrepreneurial development and management assistance programs of the 
Administration, including programs involving State or private sector 
partners, to provide business counseling and training to any small 
business concern adversely affected by the deployment of units of the 
Armed Forces of the United States in support of a period of military 
conflict.
Sec. 29102. Business grants and cooperative agreements
  (a) In General.--The Administrator may make grants to and enter into 
cooperative agreements with a coalition of private or public entities 
(or combination of private and public entities)--
          (1) to expand business-to-business relationships between 
        small business concerns and large business concerns; and
          (2) to provide businesses, directly or indirectly, with 
        online information and a database of companies that are 
        interested in mentor-protege programs or community-based, 
        statewide, or local business development programs.
  (b) Matching Requirement.--The Administrator may make a grant to a 
coalition of private entities under subsection (a) only if the 
coalition provides for activities described in paragraph (1) or (2) of 
subsection (a) in an amount (in kind or in cash) equal to the grant 
amount.
Sec. 29103. Voluntary agreements and programs
  (a) Consultation.--The President may consult with representatives of 
small business concerns with a view to encouraging the making by small 
business concerns with the approval of the President of voluntary 
agreements and programs to further the objectives of this subtitle.
  (b) Exemption From Certain Laws.--
          (1) In general.--No act or omission to act pursuant to this 
        subtitle that occurs while this subtitle is in effect, if 
        requested by the President pursuant to a voluntary agreement or 
        program approved under subsection (a) and determined by the 
        President to be in the public interest as contributing to the 
        national defense, shall be construed to be within the 
        prohibitions of the antitrust laws or the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
          (2) Requests.--A copy of a request intended to be within the 
        coverage of this section, and any modification or withdrawal of 
        such a request--
                  (A) shall be furnished to the Attorney General and 
                the Chairman of the Federal Trade Commission when made; 
                and
                  (B) shall be published in the Federal Register unless 
                publication of the request would, in the opinion of the 
                President, endanger the national security.
  (c) Delegation of Authority.--The authority granted in subsection (b) 
shall be delegated only--
          (1) to an official who for the purpose of the delegation 
        shall be required to be appointed by the President by and with 
        the advice and consent of the Senate;
          (2) on the condition that the official consult with the 
        Attorney General and the Chairman of the Federal Trade 
        Commission not less than 10 days before making any request or 
        finding under subsection (b); and
          (3) on the condition that the official obtain the approval of 
        the Attorney General to any request under subsection (b) before 
        making the request.
  (d) Withdrawal of Request or Finding by the President or of Approval 
by the Attorney General.--On withdrawal of any request or finding under 
this section, or on withdrawal by the Attorney General of approval of 
the voluntary agreement or program on which the request or finding is 
based, this section shall not apply to any subsequent act, or omission 
to act, by reason of the finding or request.
Sec. 29104. Paul D. Coverdell drug-free workplace program
  (a) Definitions.--In this section:
          (1) Drug-free workplace program.--The term ``drug-free 
        workplace program'' means a program that includes--
                  (A) a written policy, including a clear statement 
                of--
                          (i) expectations for workplace behavior;
                          (ii) prohibitions against reporting to work 
                        or working under the influence of illegal drugs 
                        or alcohol;
                          (iii) prohibitions against the use or 
                        possession of illegal drugs in the workplace; 
                        and
                          (iv) the consequences of violating those 
                        expectations and prohibitions;
                  (B)(i) drug and alcohol abuse prevention training for 
                a total of not less than 2 hours for each employee; and
                  (ii) additional voluntary drug and alcohol abuse 
                prevention training for employees who are parents;
                  (C)(i) testing of employees of a small business 
                concern for illegal drugs, with analysis conducted by a 
                drug testing laboratory certified by the Substance 
                Abuse and Mental Health Services Administration, or 
                approved by the College of American Pathologists for 
                forensic drug testing; and
                  (ii) a review of each positive test result by a 
                medical review officer who is not--
                          (I) an employee of that small business 
                        concern; or
                          (II) an employee or agent of, or any person 
                        having a financial interest in, the laboratory 
                        for which the illegal drug test results are 
                        reviewed;
                  (D) employee access to an employee assistance 
                program, including confidential assessment, referral, 
                and short-term problem resolution; and
                  (E) continuing alcohol and drug abuse prevention 
                education.
          (2) Eligible intermediary.--The term ``eligible 
        intermediary'' means an organization--
                  (A) that has not less than 2 years of experience in 
                carrying out drug-free workplace programs;
                  (B) that has a drug-free workplace policy in effect;
                  (C) that is located in a State, the District of 
                Columbia, or a territory of the United States; and
                  (D)(i) the purpose of which is--
                          (I) to develop comprehensive drug-free 
                        workplace programs or to supply drug-free 
                        workplace services; or
                          (II) to provide other forms of assistance and 
                        services to small business concerns; or
                  (ii) that is eligible to receive a grant under 
                chapter 2 of the National Narcotics Leadership Act of 
                1988 (21 U.S.C. 1521 et seq.).
          (3) Employee.--The term ``employee'' includes--
                  (A) an applicant for employment;
                  (B) an employee;
                  (C) a supervisor;
                  (D) a manager;
                  (E) an officer of a small business concern who is 
                active in management of the small business concern; and
                  (F) an owner of a small business concern who is 
                active in management of the small business concern.
          (4) Medical review officer.--The term ``medical review 
        officer'' means a licensed physician with knowledge of 
        substance abuse disorders.
  (b) Establishment.--
          (1) In general.--There is established a drug-free workplace 
        demonstration program, under which the Administrator may make 
        grants to, or enter into cooperative agreements or contracts 
        with, eligible intermediaries for the purpose of providing 
        financial and technical assistance to small business concerns 
        seeking to establish a drug-free workplace program.
          (2) Additional grants for technical assistance.--In addition 
        to grants under paragraph (1), the Administrator may make 
        grants to, or enter into cooperative agreements or contracts 
        with, any grantee for the purpose of providing, in cooperation 
        with one or more small business development centers, technical 
        assistance to small business concerns seeking to establish a 
        drug-free workplace program.
          (3) 2-year grants.--A grant made under this subsection shall 
        be for a period of 2 years, subject to an annual performance 
        review by the Administrator.
  (c) Promotion of Effective Practices of Eligible Intermediaries.--
          (1) Technical assistance and information.--The Administrator, 
        after consultation with the Director of the Center for 
        Substance Abuse and Prevention, shall provide technical 
        assistance and information to each eligible intermediary under 
        subsection (b) regarding the most effective practices in 
        establishing and carrying out drug-free workplace programs.
          (2) Evaluation of program.--
                  (A) Data collection and analysis.--
                          (i) In general.--An eligible intermediary 
                        receiving a grant under this section shall 
                        establish a system to collect and analyze 
                        information regarding the effectiveness of 
                        drug-free workplace programs established with 
                        assistance provided under this section through 
                        the intermediary, including information 
                        regarding any increase or decrease among 
                        employees in drug use, awareness of the adverse 
                        consequences of drug use, and absenteeism, 
                        injury, and disciplinary problems related to 
                        drug use.
                          (ii) Requirements.--The system shall conform 
                        to such requirements as the Administrator, 
                        after consultation with the Director of the 
                        Center for Substance Abuse and Prevention, may 
                        prescribe.
                          (iii) Limitation.--Not more than 5 percent of 
                        the amount of a grant made under subsection (b) 
                        shall be used by the eligible intermediary to 
                        carry out this paragraph.
                  (B) Method of evaluation.--
                          (i) In general.--The Administrator, after 
                        consultation with the Director of the Center 
                        for Substance Abuse and Prevention, shall 
                        provide technical assistance and guidance to 
                        each eligible intermediary receiving a grant 
                        under subsection (b) regarding the collection 
                        and analysis of information to evaluate the 
                        effectiveness of drug-free workplace programs 
                        established with assistance provided under this 
                        section, including the information referred to 
                        in paragraph (1).
                          (ii) Forms of assistance.--Assistance under 
                        clause (i) shall include--
                                  (I) the identification of additional 
                                information suitable for measuring the 
                                benefits of drug-free workplace 
                                programs to the small business concern 
                                and to the small business concern's 
                                employees; and
                                  (II) the identification of methods 
                                suitable for analyzing such 
                                information.
  (d) Contract Authority.--In carrying out this section, the 
Administrator may--
          (1) contract with public and private entities to provide 
        assistance related to carrying out the program under this 
        section; and
          (2) compensate those entities for provision of that 
        assistance.
  (e) Effect of Section.--Nothing in this section requires an employer 
that attends a program offered by an eligible intermediary to contract 
for any service offered by the eligible intermediary.

                   Subtitle III--Investment Division

                     DIVISION A--GENERAL PROVISIONS

                    CHAPTER 301--GENERAL PROVISIONS

Sec.
30101.  Definitions.
30102.  Implementation of subtitle.
Sec. 30101. Definitions
  In this subtitle:
          (1) Articles.--The term ``articles''--
                  (A) with respect to an incorporated body, means the 
                articles of incorporation if the incorporated body; and
                  (B) with respect to any other business entity, means 
                the functional equivalent of the articles of 
                incorporation of an incorporated body or other similar 
                documents specified by the Administrator.
          (2) Employee welfare benefit plan.--
                  (A) In general.--The term ``employee welfare benefit 
                plan'' has the meaning given the term in section 3 of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1002).
                  (B) Inclusions.--The term ``employee welfare benefit 
                plan'' includes any similar plan not covered by the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.) that has been established and that 
                is maintained by the Federal Government or any State or 
                political subdivision, or any agency or instrumentality 
                thereof, for the benefit of employees.
          (3) Energy saving debenture.--The term ``energy saving 
        debenture'' means a deferred interest debenture that--
                  (A) is issued at a discount;
                  (B) has a 5-year maturity or a 10-year maturity;
                  (C) requires no interest payment or annual charge for 
                the first 5 years;
                  (D) is restricted to energy saving qualified 
                investments; and
                  (E) is issued at no cost (as defined in section 502 
                of the Credit Reform Act of 1990 (2 U.S.C. 661a)) with 
                respect to purchasing and guaranteeing the debenture.
          (4) Energy saving qualified investment.--The term ``energy 
        saving qualified investment'' means an investment in a small 
        business concern that is primarily engaged in researching, 
        manufacturing, developing, or providing products, goods, or 
        services that reduce the use or consumption of nonrenewable 
        energy resources.
          (5) Leverage.--The term ``leverage'' includes--
                  (A) a debenture purchased or guaranteed by the 
                Administrator;
                  (B) a participating security purchased or guaranteed 
                by the Administrator; and
                  (C) a preferred security outstanding as of October 1, 
                1995.
          (6) License.--The term ``license'' means a license to operate 
        as a small business investment company issued by the 
        Administrator to a company under section 30302 of this title.
          (7) Licensee.--
                  (A) In general.--The term ``licensee'' means a 
                company that is issued a license.
                  (B) Inclusion.--The term ``licensee'' includes a 
                specialized small business investment company.
          (8) Limited liability company.--The term ``limited liability 
        company'' means a business entity that is organized and 
        operating in accordance with a State limited liability company 
        statute approved by the Administrator.
          (9) Long-term.--The term ``long-term'', used in connection 
        with equity capital or loan funds invested in a small business 
        concern or smaller enterprise, means a period of time of not 
        less than one year.
          (10) Low-income geographic area.--The term ``low-income 
        geographic area'' means--
                  (A) a population census tract (or in the case of an 
                area that is not tracted for population census tracts, 
                the equivalent county division, as defined by the 
                Bureau of the Census of the Department of Commerce for 
                purposes of defining poverty areas), if--
                          (i) the poverty rate for the population 
                        census tract is not less than 20 percent;
                          (ii)(I) in the case of a population census 
                        tract that is located within a metropolitan 
                        area, 50 percent or more of the households in 
                        the population census tract have an income 
                        equal to less than 60 percent of the area 
                        median gross income; or
                          (II) in the case of a population census tract 
                        that is not located within a metropolitan area, 
                        the median household income for the census 
                        tract does not exceed 80 percent of the 
                        statewide median household income; or
                          (iii) as determined by the Administrator 
                        based on objective criteria, a substantial 
                        population of low-income individuals reside, an 
                        inadequate access to investment capital exists, 
                        or other indications of economic distress exist 
                        in the population census tract; or
                  (B) an area located within--
                          (i) a HUBZone;
                          (ii) an urban empowerment zone or urban 
                        enterprise community (as designated by the 
                        Secretary of Housing and Urban Development); or
                          (iii) a rural empowerment zone or rural 
                        enterprise community (as designated by the 
                        Secretary of Agriculture).
          (11) Management official.--The term ``management official'' 
        means an officer, director, general partner, manager, employee, 
        agent, or other participant in the management or conduct of the 
        affairs of a licensee.
          (12) Member.--The term ``member'', with respect to a licensee 
        that is a limited liability company, means--
                  (A) a holder of an ownership interest in the limited 
                liability company; or
                  (B) a person otherwise admitted to membership in the 
                limited liability company.
          (13) Participating security.--The term ``participating 
        security'' includes--
                  (A) preferred stock, a preferred limited partnership 
                interest, or a similar instrument; and
                  (B) a debenture under the terms of which interest is 
                payable only to the extent of earnings.
          (14) Pension plan.--
                  (A) In general.--The term ``pension plan'' has the 
                meaning given the term in section 3 of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1002).
                  (B) Inclusions.--The term ``pension plan'' includes--
                          (i) a public or private pension or retirement 
                        plan subject to the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1001 et seq.); 
                        and
                          (ii) any similar plan not covered by that Act 
                        that is established and maintained by the 
                        Federal Government or any State or political 
                        subdivision, or any agency or instrumentality 
                        thereof, for the benefit of employees.
          (15) Private capital.--
                  (A) In general.--The term ``private capital'' means 
                the sum of--
                          (i)(I) the paid-in capital and paid-in 
                        surplus of a corporate licensee;
                          (II) the contributed capital of the partners 
                        of a partnership licensee; or
                          (III) the equity investment of the members of 
                        a limited liability company licensee; and
                          (ii) subject to subparagraph (B), unfunded 
                        binding commitments, from investors that meet 
                        criteria established by the Administrator, to 
                        contribute capital to the licensee.
                  (B) Limitation.--An unfunded commitment described in 
                subparagraph (A)(ii) may be counted as private capital 
                for purposes of approval by the Administrator of a 
                request for leverage, but leverage shall not be funded 
                based on such a commitment.
                  (C) Exclusions.--The term ``private capital'' does 
                not include--
                          (i) funds borrowed by a licensee from any 
                        source;
                          (ii) funds obtained through the issuance of 
                        leverage; or
                          (iii) funds obtained directly or indirectly 
                        from a Federal, State, or local government, or 
                        any government agency or instrumentality, 
                        except for--
                                  (I) funds obtained from the business 
                                revenues (excluding any governmental 
                                appropriation) of a federally chartered 
                                or government-sponsored corporation 
                                established before October 1, 1987;
                                  (II) funds invested by an employee 
                                welfare benefit plan or pension plan; 
                                and
                                  (III) qualified nonprivate funds (if 
                                the investors of the qualified 
                                nonprivate funds do not control, 
                                directly or indirectly, the management, 
                                board of directors, general partners, 
                                or members of the licensee).
          (16) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given the term in section 10101 of this title, except that the 
        exception stated in paragraph (18)(B) of this section applies.
          (17) Qualified nonprivate funds.--The term ``qualified 
        nonprivate funds'' means--
                  (A) funds directly or indirectly invested in an 
                applicant or licensee on or before August 16, 1982, by 
                any Federal agency, other than the Administration, 
                under a provision of law that explicitly requires the 
                inclusion of such funds in the definition of the term 
                ``private capital'';
                  (B) funds directly or indirectly invested in an 
                applicant or licensee by a Federal agency under a 
                provision of law enacted after September 4, 1992, that 
                explicitly requires the inclusion of those funds in the 
                definition of the term ``private capital''; and
                  (C) funds invested in an applicant or licensee by one 
                or more State or local government entities (including 
                any guarantee extended by such an entity) in an 
                aggregate amount that does not exceed 33 percent of the 
                private capital of the applicant or licensee.
          (18) Small business concern.--
                  (A) In general.--The term ``small business concern'' 
                has the meaning given the term in section 10101 of this 
                title, except as provided in subparagraph (B).
                  (B) Exception.--For purposes of this subtitle, in 
                determining whether a business concern is a small 
                business concern--
                          (i) an investment by a venture capital firm, 
                        investment company (including a small business 
                        investment company), employee welfare benefit 
                        plan, pension plan, trust, foundation, or 
                        endowment that is exempt from Federal income 
                        taxation--
                                  (I) shall not cause a business 
                                concern to be considered not 
                                independently owned and operated 
                                regardless of the allocation of control 
                                during the investment period under any 
                                investment agreement between the 
                                business concern and the entity making 
                                the investment;
                                  (II) shall be disregarded in 
                                determining whether a business concern 
                                satisfies size standards established 
                                under section 10101(70) of this title; 
                                and
                                  (III) shall be disregarded in 
                                determining whether a small business 
                                concern is a smaller enterprise; and
                          (ii) in determining whether a business 
                        concern satisfies net income standards 
                        established under section 10101(70) of this 
                        title, if the business concern is not required 
                        by law to pay Federal income taxes at the 
                        enterprise level, but is required to pass 
                        income through to the shareholders, partners, 
                        beneficiaries, or other equitable owners of the 
                        business concern, the net income of the 
                        business concern shall be determined by 
                        allowing a deduction in an amount equal to the 
                        sum of--
                                  (I) if the business concern is not 
                                required by law to pay State (and 
                                local, if any) income taxes at the 
                                enterprise level, the net income 
                                (determined without regard to this 
                                subparagraph), multiplied by the 
                                marginal State income tax rate (or by 
                                the combined State and local income tax 
                                rates, as applicable) that would apply 
                                if the business concern were a 
                                corporation; and
                                  (II) the net income (so determined) 
                                less any deduction for State (and 
                                local) income taxes calculated under 
                                subclause (I), multiplied by the 
                                marginal Federal income tax rate that 
                                would apply if the business concern 
                                were a corporation.
          (19) Small business concern owned and controlled by service-
        disabled veterans.--The term ``small business concern owned and 
        controlled by service-disabled veterans'' has the meaning given 
        the term in section 10101 of this title, except that the 
        exception stated in paragraph (18)(B) of this section applies.
          (20) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--The term ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the meaning given 
        the term in section 10101 of this title, except that the 
        exception stated in paragraph (18)(B) of this section applies.
          (21) Small business concern owned and controlled by 
        veterans.--The term ``small business concern owned and 
        controlled by veterans'' has the meaning given the term in 
        section 10101 of this title, except that the exception stated 
        in paragraph (18)(B) of this section applies.
          (22) Small business investment company.--The term ``small 
        business investment company'' means a licensee.
          (23) Smaller enterprise.--
                  (A) In general.--The term ``smaller enterprise'' 
                means a small business concern that, together with its 
                affiliates--
                          (i) has--
                                  (I) a net financial worth of not more 
                                than $6,000,000, as of the date on 
                                which assistance is provided under this 
                                subtitle to that small business 
                                concern; and
                                  (II) an average net income, for the 
                                2-year period preceding the date on 
                                which assistance is provided under this 
                                subtitle to that small business 
                                concern, of not more than $2,000,000, 
                                after Federal income taxes (excluding 
                                any carryover losses); or
                          (ii) satisfies the North American Industry 
                        Classification System size standards 
                        established by the Administrator for the 
                        industry in which the small business concern is 
                        primarily engaged.
                  (B) Determination of net income.--For purposes of 
                subparagraph (A)(i)(II), if a small business concern is 
                not required by law to pay Federal income tax at the 
                enterprise level, but is required to pass income 
                through to the shareholders, partners, beneficiaries, 
                or other equitable owners of the small business 
                concern, the net income of the small business concern 
                shall be determined by deducting from the gross income 
                of the small business concern--
                          (i) in the case of a small business concern 
                        that is required by law to pay State (and 
                        local, if any) income taxes at the enterprise 
                        level, the amount that is equal to the net 
                        income of the small business concern determined 
                        without regard to this clause, multiplied by 
                        the marginal Federal income tax rate that would 
                        apply if the small business concern were a 
                        corporation; or
                          (ii) in the case of a small business concern 
                        that is not required by law to pay State (and 
                        local, if any) income taxes at the enterprise 
                        level, the amount that is equal to the sum of--
                                  (I) the net income of the small 
                                business concern determined without 
                                regard to this clause, multiplied by 
                                the marginal State income tax rate (or 
                                by the combined State and local income 
                                tax rates, as applicable) that would 
                                apply if the small business concern 
                                were a corporation; and
                                  (II) the net income of the small 
                                business concern determined without 
                                regard to this clause, less any 
                                deduction for State (and local) income 
                                taxes calculated under subclause (I), 
                                multiplied by the marginal Federal 
                                income tax rate that would apply if the 
                                business concern were a corporation.
          (24) Specialized small business investment company.--The term 
        ``specialized small business investment company'' means a 
        company that--
                  (A) invests solely in small business concerns that 
                contribute to a well-balanced national economy by 
                facilitating ownership in small business concerns by 
                persons whose participation in the free enterprise 
                system is hampered because of social or economic 
                disadvantages;
                  (B) is organized or chartered under a State business 
                or nonprofit corporations statute or formed as a 
                limited partnership; and
                  (C) was licensed under subsection (d) of section 301 
                of the Small Business Act (15 U.S.C. 681(d)), as in 
                effect before September 30, 1996.
          (25) State.--The term ``State'' includes a State, the 
        territories and possessions of the United States, Puerto Rico, 
        and the District of Columbia.
          (26) Third party debt.--The term ``third party debt'' means 
        any indebtedness for borrowed money, other than indebtedness 
        owed to the Administrator.
Sec. 30102. Implementation of subtitle
  The Administrator--
          (1) shall carry out this subtitle so as to improve and 
        stimulate the national economy in general and the small 
        business segment of the economy in particular by establishing a 
        program to stimulate and supplement the flow of private equity 
        capital and long-term loan funds that--
                  (A) small business concerns need for the sound 
                financing of their business operations and for their 
                growth, expansion, and modernization; and
                  (B) are not available in adequate supply; and
          (2) in doing so--
                  (A) shall ensure the maximum participation of private 
                financing sources;
                  (B) shall ensure that any financial assistance 
                provided under this subtitle does not result in a 
                substantial increase of unemployment in any area of the 
                country; and
                  (C) in the award of financial assistance under this 
                subtitle, when practicable, shall accord priority to 
                small business concerns that lease or purchase 
                equipment and supplies produced in the United States 
                and encourage small business concerns that receive 
                assistance under this subtitle to continue to lease or 
                purchase equipment and supplies produced in the United 
                States.

                    DIVISION B--INVESTMENT PROGRAMS

         CHAPTER 303--SMALL BUSINESS INVESTMENT COMPANY PROGRAM

Sec.
30301.  Requirements for licensing.
30302.  Licensing procedure.
30303.  Financial institution investments.
30304.  Borrowing power.
30305.  Equity capital for small business concerns.
30306.  Long-term loans to small business concerns.
30307.  Limitation on amount of financing.
30308.  Cooperation with banks and other investors or lenders.
30309.  Advisory services; Federal Reserve Banks as depositories or 
          fiscal agents; investment of funds.
30310.  Nonliability of the United States.
30311.  Certifications of eligibility.
30312.  Interest rates.
30313.  Conflicts of interest.
30314.  Ineligibility of guaranteed obligations for purchase by Federal 
          Financing Bank.
30315.  Trust certificates.
30316.  Regulations.
30317.  Unlawful acts and omissions.
30318.  Investigations; examinations; valuations.
30319.  Revocation and suspension of licenses; cease and desist orders.
30320.  Removal or suspension of, or prohibition of participation by, 
          management officials.
30321.  Direct civil enforcement actions.
30322.  Jurisdiction; service of process.
Sec. 30301. Requirements for licensing
  (a) In General.--To receive or hold a license to operate as a small 
business investment company under this chapter, a company shall meet 
the requirements of this section.
  (b) Organization.--The company shall be an incorporated body, limited 
liability company, or limited partnership organized and chartered or 
otherwise existing under State law solely for the purpose of performing 
the functions and conducting the activities contemplated under this 
chapter.
  (c) Succession.--The company--
          (1) if it is an incorporated body, shall have succession for 
        a period of not less than 30 years unless it is sooner 
        dissolved by its shareholders; and
          (2) if it is a limited partnership, shall have succession for 
        a period of not less than 10 years.
  (d) Powers.--The company shall possess the powers reasonably 
necessary to perform the functions and conducting the activities 
contemplated under this chapter.
  (e) Area of Operation.--The area in which the company is to conduct 
its operations, and the establishment of branch offices or agencies (if 
authorized by the articles), shall be subject to the approval of the 
Administrator.
  (f) Articles.--
          (1) In general.--The articles of the company shall specify in 
        general terms--
                  (A) the purposes for which the company is formed;
                  (B) the name of the company;
                  (C) the area or areas in which its operations are to 
                be carried on;
                  (D) the place where its principal office is to be 
                located; and
                  (E) the amount and classes of its shares of capital 
                stock.
          (2) Other provisions.--The articles of the company may 
        contain any other provisions not inconsistent with this chapter 
        that the company may see fit to adopt for the regulation of its 
        business and the conduct of its affairs.
          (3) Approval.--The articles of the company and any amendments 
        to the articles adopted from time to time shall be subject to 
        the approval of the Administrator.
  (g) Capital Requirements.--
          (1) In general.--Except as provided in paragraph (2), the 
        private capital of the company shall be not less than--
                  (A) $5,000,000; or
                  (B) $10,000,000, with respect to a company that seeks 
                authority to issue participating securities to be 
                purchased or guaranteed by the Administrator under this 
                chapter.
          (2) Exceptions.--
                  (A) No unreasonable risk of default or loss.--
                          (i) In general.--The Administrator may, on a 
                        showing of special circumstances and good 
                        cause, permit the private capital of a company 
                        described in paragraph (1)(B) to be less than 
                        $10,000,000, but not less than $5,000,000, if 
                        the Administrator determines that doing so 
                        would not create or otherwise contribute to an 
                        unreasonable risk of default or loss to the 
                        Federal Government.
                          (ii) Companies licensed before september 30, 
                        1996.--The Administrator may continue the 
                        licensing of a licensee licensed under 
                        subsection (c) or (d) of section 301 of the 
                        Small Business Act (15 U.S.C. 681(c), (d)) 
                        before September 30, 1996, that does not meet 
                        the requirements of paragraph (1) if--
                                  (I) the licensee certifies in writing 
                                that not less than 50 percent of the 
                                aggregate dollar amount of its 
                                financings will be provided to smaller 
                                enterprises; and
                                  (II) the Administrator determines 
                                that doing so would not create or 
                                otherwise contribute to an unreasonable 
                                risk of default or loss to the Federal 
                                Government.
                  (B) Viable business plan and reasonable timetable.--
                          (i) In general.--Notwithstanding any other 
                        provision of this chapter, the Administrator 
                        may, on a showing of special circumstances and 
                        good cause, issue a license with respect to a 
                        company that would otherwise be issued a 
                        license, except that the company does not 
                        satisfy the requirements of paragraph (1), if 
                        the company--
                                  (I) has private capital of not less 
                                than $3,000,000; and
                                  (II) has a viable business plan 
                                reasonably projecting profitable 
                                operations and a reasonable timetable 
                                for achieving a level of private 
                                capital that satisfies the requirements 
                                of paragraph (1).
                          (ii) Leverage.--A company that is licensed 
                        pursuant to the exception provided in clause 
                        (i) shall not be eligible to receive leverage 
                        as a licensee until the company satisfies the 
                        requirements of paragraph (1).
          (3) Adequacy.--In addition to the requirements of paragraph 
        (1), the Administrator shall--
                  (A) determine whether the private capital of the 
                company is adequate to ensure a reasonable prospect 
                that the company will be operated soundly and 
                profitably and managed actively and prudently in 
                accordance with its articles;
                  (B) determine that the company, both prior to 
                licensing and prior to approving any request for 
                financing, will be able to make periodic payments on 
                any debt of the company that is interest-bearing; and
                  (C) take into consideration--
                          (i) the income that the company anticipates 
                        on its contemplated investments;
                          (ii) the experience of the company's owners 
                        and managers;
                          (iii) the history of the company as an 
                        entity, if any; and
                          (iv) the company's financial resources.
  (h) Diversification of Ownership.--The Administrator shall ensure 
that the management of a licensee licensed after September 30, 1996, is 
sufficiently diversified from and unaffiliated with the ownership of 
the licensee in a manner that ensures independence and objectivity in 
the financial management and oversight of the investments and 
operations of the licensee.
Sec. 30302. Licensing procedure
  (a) Submission of Application.--An applicant for a license to operate 
as a small business investment company under this chapter shall submit 
to the Administrator an application, in such form and including such 
documentation as the Administrator may prescribe.
  (b) Status.--Not later than 90 days after receipt by the 
Administrator of an application under this section, the Administrator 
shall provide the applicant with a written report detailing the status 
of the application and any requirements remaining for completion of the 
application.
  (c) Approval or Disapproval.--Within a reasonable time after 
receiving a completed application submitted in accordance with this 
section (including such requirements as the Administrator may prescribe 
by regulation), the Administrator shall--
          (1) approve the application and issue a license to the 
        applicant if the requirements of this section are satisfied; or
          (2) disapprove the application and notify the applicant in 
        writing of the disapproval.
  (d) Matters To Be Considered.--In reviewing and processing an 
application under this section, the Administrator--
          (1) shall determine whether--
                  (A) the applicant meets the requirements of 
                subsections (g) and (h) of section 30301 of this title; 
                and
                  (B) the management of the applicant is qualified and 
                has the knowledge, experience, and capability necessary 
                to comply with this chapter;
          (2) shall take into consideration--
                  (A) the need for and availability of financing for 
                small business concerns in the geographic area in which 
                the applicant is to commence business;
                  (B) the general business reputation of the owners and 
                management of the applicant; and
                  (C) the probability of successful operations of the 
                applicant, including adequate profitability and 
                financial soundness; and
          (3) shall not take into consideration any projected shortage 
        or unavailability of leverage.
  (e) Fees.--
          (1) In general.--The Administrator may prescribe fees to be 
        paid by an applicant for a license.
          (2) Use of amounts.--Fees collected under this subsection--
                  (A) shall be deposited in the account for salaries 
                and expenses of the Administration; and
                  (B) are authorized to be appropriated solely to cover 
                the costs of licensing examinations.
Sec. 30303. Financial institution investments
  (a) Certain Banks.--Notwithstanding section 23A of the Federal 
Reserve Act (12 U.S.C. 371c), a national bank, or a member bank of the 
Federal Reserve System or nonmember insured bank to the extent 
permitted under applicable State law, may invest in one or more 
licensees, or in an entity established to invest solely in licensees, 
except that in no event shall the total amount of such investments of 
any such bank exceed 5 percent of the capital and surplus of the bank.
  (b) Federal Savings Associations.--Notwithstanding any other 
provision of law, a Federal savings association may invest in one or 
more licensees, or in an entity established to invest solely in 
licensees, except that in no event shall the total amount of such 
investments by a Federal savings association exceed 5 percent of the 
capital and surplus of the Federal savings association.
Sec. 30304. Borrowing power
  (a) Authority To Issue Obligations.--A licensee shall have authority 
to borrow money and to issue its securities, promissory notes, or other 
obligations under such general conditions and subject to such 
limitations and regulations as the Administrator may prescribe.
  (b) Debentures and Participating Securities.--
          (1) Authority to purchase or guarantee.--To encourage the 
        formation and growth of small business investment companies, 
        the Administrator may, when authorized in an appropriation Act, 
        purchase, or guarantee the timely payment of all principal and 
        interest as scheduled on, debentures or participating 
        securities issued by a licensee.
          (2) Terms and conditions.--A purchase or guarantee under 
        paragraph (1) may be made on such terms and conditions as the 
        Administrator considers appropriate, under regulations 
        prescribed by the Administrator.
          (3) Full faith and credit of the united states.--The full 
        faith and credit of the United States is pledged to the payment 
        of all amounts that may be required to be paid under any 
        guarantee under this subsection.
          (4) Debentures.--
                  (A) Subordination.--A debenture purchased or 
                guaranteed by the Administrator under this subsection 
                shall be subordinate to any other debenture bond, 
                promissory note, or other debt or obligation of a 
                licensee, unless the Administrator, in the exercise of 
                reasonable investment prudence and in consideration of 
                the financial soundness of the licensee, determines 
                otherwise.
                  (B) Term; interest.--A debenture purchased or 
                guaranteed by the Administrator under this subsection--
                          (i) may be issued for a term of not to exceed 
                        15 years; and
                          (ii) shall bear interest at a rate not less 
                        than--
                                  (I) a rate determined by the 
                                Secretary of the Treasury taking into 
                                consideration the current average 
                                market yield on outstanding marketable 
                                obligations of the United States with 
                                remaining periods to maturity 
                                comparable to the average maturities on 
                                such debentures, adjusted to the 
                                nearest 0.125 percent; plus
                                  (II) in the case of a debenture 
                                obligated after September 30, 2001, an 
                                additional charge in an amount 
                                established annually by the 
                                Administrator as necessary to reduce to 
                                zero the cost (as defined in section 
                                502 of the Federal Credit Reform Act of 
                                1990 (2 U.S.C. 661a)) to the 
                                Administrator of purchasing and 
                                guaranteeing debentures under this 
                                chapter, which amount--
                                          (aa) may not exceed 1.38 
                                        percent per year; and
                                          (bb) which shall be paid to 
                                        and retained by the 
                                        Administrator.
          (5) Other terms and conditions.--A debenture or participating 
        security purchased or guaranteed under this subsection shall 
        also contain such other terms as the Administrator may 
        determine.
          (6) Total amount.--The total amount of debentures and 
        participating securities of a licensee that may be guaranteed 
        by the Administrator and outstanding shall not exceed 300 
        percent of the private capital of the licensee.
          (7) Maximum leverage.--
                  (A) In general.--The maximum amount of outstanding 
                leverage made available to a licensee shall be 
                determined by the amount of the licensee's private 
                capital as follows:
                          (i) If the company has private capital of not 
                        more than $15,000,000, the total amount of 
                        leverage shall not exceed 300 percent of the 
                        amount of the licensee's private capital.
                          (ii) If the licensee has private capital of 
                        more than $15,000,000 but not more than 
                        $30,000,000, the total amount of leverage shall 
                        not exceed--
                                  (I) $45,000,000; plus
                                  (II) 200 percent of the amount of 
                                private capital over $15,000,000.
                          (iii) If the company has private capital of 
                        more than $30,000,000, the total amount of 
                        leverage shall not exceed--
                                  (I) $75,000,000; plus
                                  (II) the lesser of--
                                          (aa) 100 percent of the 
                                        amount of private capital over 
                                        $30,000,000; or
                                          (bb) $15,000,000.
                  (B) Adjustments.--The dollar amounts in clauses (i), 
                (ii), and (iii) of subparagraph (A) shall be adjusted 
                annually to reflect increases in the Consumer Price 
                Index established by the Bureau of Labor Statistics of 
                the Department of Labor.
                  (C) Investments in low-income geographic areas.--In 
                calculating the outstanding leverage of a licensee for 
                the purposes of subparagraph (A), the Administrator 
                shall not include the amount of the cost basis of any 
                equity investment made by the licensee in a smaller 
                enterprise located in a low-income geographic area, to 
                the extent that the total of such amounts does not 
                exceed 50 percent of the licensee's private capital.
                  (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), the 
                        Administrator shall exclude the amount of the 
                        cost basis of any energy saving qualified 
                        investment in a smaller enterprise made in 
                        fiscal year 2009 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 the 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 the 
                                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 defined in section 
                                502 of the Credit Reform Act of 1990 (2 
                                U.S.C. 661a)) with respect to 
                                purchasing or guaranteeing any 
                                debenture involved.
          (8) Authority to have outstanding both guaranteed debentures 
        and guaranteed participating securities.--Subject to the dollar 
        and percentage limits stated in paragraphs (6) and (7), a 
        licensee may issue and have outstanding both guaranteed 
        debentures and guaranteed participating securities so long as 
        the total amount of participating securities outstanding does 
        not exceed 200 percent of the amount of the licensee's private 
        capital.
          (9) Maximum aggregate amount of leverage.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the aggregate amount of outstanding leverage 
                issued to any licensee or licensees that are commonly 
                controlled (as determined by the Administrator) shall 
                not exceed $90,000,000, as adjusted annually for 
                increases in the Consumer Price Index.
                  (B) Exceptions.--The Administrator may, on a case-by-
                case basis--
                          (i) approve an amount of leverage that 
                        exceeds the amount described in subparagraph 
                        (A) for licensees under common control; and
                          (ii) impose such additional terms and 
                        conditions as the Administrator determines to 
                        be appropriate to minimize the risk of loss to 
                        the Administration in the event of default.
                  (C) Applicability of other provisions.--Any leverage 
                that is issued to a licensee or licensees commonly 
                controlled in an amount that exceeds $90,000,000, 
                whether as a result of an increase in the Consumer 
                Price Index or a decision of the Administrator, is 
                subject to subsection (d).
                  (D) Investments in low-income geographic areas.--In 
                calculating the aggregate outstanding leverage of a 
                licensee for purposes of subparagraph (A), the 
                Administrator shall not include the amount of the cost 
                basis of any equity investment made by the licensee in 
                a smaller enterprise located in a low-income geographic 
                area, to the extent that the total of such amounts does 
                not exceed 50 percent of the amount of the licensee's 
                private capital.
                  (E) Investments in energy saving small businesses.--
                          (i) In general.--Subject to clause (ii), in 
                        calculating the aggregate outstanding leverage 
                        of a company for purposes of subparagraph (A), 
                        the Administrator shall exclude the amount of 
                        the cost basis of any energy saving qualified 
                        investment in a smaller enterprise made in 
                        fiscal year 2009 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 the 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 the 
                                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 defined in section 
                                502 of the Credit Reform Act of 1990 (2 
                                U.S.C. 661a)) with respect to 
                                purchasing or guaranteeing any 
                                debenture involved.
  (c) Third Party Debt.--The Administrator--
          (1) shall not permit a licensee having outstanding leverage 
        to incur third party debt that would create or contribute to an 
        unreasonable risk of default or loss to the Federal Government; 
        and
          (2) shall permit a licensee having outstanding leverage to 
        incur third party debt only on such terms and subject to such 
        conditions as the Administrator may establish by regulation or 
        otherwise.
  (d) Required Certifications.--
          (1) In general.--The Administrator shall require a licensee, 
        as a condition of approval of an application for leverage, to 
        certify in writing--
                  (A) in the case of a licensee with leverage less than 
                or equal to $90,000,000, that not less than 20 percent 
                of the licensee's aggregate dollar amount of financings 
                will be provided to smaller enterprises; and
                  (B) in the case of a licensee with leverage in excess 
                of $90,000,000, that, in addition to satisfying the 
                requirements of subparagraph (A), 100 percent of the 
                licensee's aggregate dollar amount of financings made 
                in whole or in part with leverage in excess of 
                $90,000,000 will be provided to smaller enterprises.
          (2) Licensees under common control.--Licensees under common 
        control (as determined by the Administrator) shall be 
        considered to be a single licensee for purposes of determining 
        both the applicability of and compliance with the investment 
        percentage requirements of this subsection.
  (e) Capital Impairment.--
          (1) In general.--Before approving an application for leverage 
        submitted by a licensee, the Administrator--
                  (A) shall determine that the private capital of the 
                licensee meets the requirements of section 30301(g) of 
                this title; and
                  (B) shall determine (taking into account the nature 
                of the assets of the licensee, the amount and terms of 
                any third party debt owed by the licensee, and any 
                other factors determined to be relevant by the 
                Administrator) that the private capital of the licensee 
                has not been impaired to such an extent that the 
                issuance of additional leverage would create or 
                otherwise contribute to an unreasonable risk of default 
                or loss to the Federal Government.
          (2) Uniform applicability.--Any regulation issued by the 
        Administrator to implement this subsection that applies to any 
        licensee with outstanding leverage obtained before the 
        effective date of the regulation shall apply uniformly to all 
        licensees with outstanding leverage obtained before that 
        effective date.
  (f) Redemption or Repurchase of Preferred Stock.--Notwithstanding any 
other provision of law--
          (1) the Administrator may allow the issuer of any preferred 
        stock sold to the Administrator before November 1, 1989, to 
        redeem or repurchase the stock, on payment to the Administrator 
        of an amount less than the par value of the stock, for a 
        repurchase price determined by the Administrator after 
        consideration of all relevant factors, including--
                  (A) the market value of the stock;
                  (B) the value of benefits provided and anticipated to 
                accrue to the issuer;
                  (C) the amount of dividends paid, accrued, and 
                anticipated; and
                  (D) the estimate of the Administrator of any 
                anticipated redemption; and
          (2) any amounts received by the Administrator from the 
        repurchase of preferred stock shall be available solely to 
        provide debenture leverage to licensees having 50 percent or 
        more in aggregate dollar amount of their financings invested in 
        smaller enterprises.
  (g) Guarantee of Payment of, and Authority To Purchase, Participating 
Securities.--
          (1) Definitions.--In this subsection:
                  (A) Combined capital.--The term ``combined capital'' 
                means the aggregate amount of private capital and 
                outstanding leverage.
                  (B) Equity capital.--
                          (i) In general.--The term ``equity capital'' 
                        means common or preferred stock or a similar 
                        instrument.
                          (ii) Inclusions.--The term ``equity capital'' 
                        includes subordinated debt that has equity 
                        features, is not amortized, and provides for 
                        interest payments from appropriate sources, as 
                        determined by the Administrator.
                  (C) Management expense.--
                          (i) In general.--The term ``management 
                        expense'' includes--
                                  (I) salaries;
                                  (II) office expenses; and
                                  (III) the costs of travel, business 
                                development, office and equipment 
                                rental, bookkeeping, and the 
                                development, investigation and 
                                monitoring of investments.
                          (ii) Exclusions.--The term ``management 
                        expense'' does not include--
                                  (I) the cost of services provided by 
                                specialized outside consultants, 
                                outside lawyers, and outside auditors 
                                that perform services not generally 
                                expected of a venture capital company; 
                                or
                                  (II) the cost of services provided by 
                                any affiliate of a licensee that are 
                                not part of the normal process of 
                                making and monitoring venture capital 
                                investments.
                  (D) Maximum tax liability.--The term ``maximum tax 
                liability'' means the amount of income allocated to 
                each partner, shareholder, or member of a licensee 
                (including an allocation to the Administrator as if the 
                Administrator were a taxpayer) for Federal income tax 
                purposes in the income tax return filed or to be filed 
                by the licensee with respect to the fiscal year of the 
                licensee immediately preceding a distribution described 
                in clause (i) or (ii) of paragraph (10)(A), multiplied 
                by the highest combined marginal Federal and State 
                income tax rates for corporations or individuals, 
                whichever is higher, on each type of income included in 
                the return.
                  (E) Prioritized payment.--The term ``prioritized 
                payment'' includes--
                          (i) a dividend on stock;
                          (ii) interest on a debenture described in 
                        section 30101(11)(B) of this title; and
                          (iii) a priority return on a preferred 
                        limited partnership interest that is paid only 
                        to the extent of earnings.
                  (F) State income tax.--The term ``State income tax'', 
                in reference to the State income tax liability of a 
                licensee, means the income tax of the State in which a 
                licensee's principal place of business is located.
          (2) Authority.--
                  (A) In general.--To encourage licensees to provide 
                equity capital to small business concerns, the 
                Administrator may guarantee the payment of the 
                redemption price and prioritized payments on 
                participating securities issued by licensees.
                  (B) Purchase by trust or pool.--A trust or a pool 
                acting on behalf of the Administrator may purchase 
                participating securities under subparagraph (A).
          (3) Terms and conditions.--A guarantee or purchase under 
        paragraph (2) shall be made on such terms and conditions as the 
        Administrator shall establish by regulation.
          (4) Redemption of participating securities.--
                  (A) In general.--A participating security shall be 
                redeemed not later than 15 years after its date of 
                issuance for an amount equal to 100 percent of the 
                original issue price plus the amount of any accrued 
                prioritized payment.
                  (B) Continued obligation.--
                          (i) In general.--If, at the time at which a 
                        participating security is redeemed, whether as 
                        scheduled or in advance, the issuing licensee--
                                  (I) has not paid all accrued 
                                prioritized payments in full as 
                                provided in paragraph (5); and
                                  (II) has not sold or otherwise 
                                disposed of all investments subject to 
                                profit distributions under paragraph 
                                (11);
                        the licensee's obligation to pay accrued and 
                        unpaid prioritized payments shall continue, and 
                        payment shall be made from the realized gain, 
                        if any, on the disposition of such investments, 
                        but if on disposition there is no realized 
                        gain, the obligation to pay accrued and unpaid 
                        prioritized payments shall be extinguished.
                          (ii) Limitation.--Between the date on which a 
                        participating security is redeemed and the date 
                        on which the licensee has paid all accrued 
                        prioritized payments in full and has sold or 
                        otherwise disposed of all investments subject 
                        to profit distributions, the licensee shall not 
                        make any in-kind distributions of such 
                        investments unless the licensee pays to the 
                        Administrator such sums, up to the amount of 
                        the unrealized appreciation on such 
                        investments, as are necessary to pay in full 
                        the accrued prioritized payments.
          (5) Prioritized payments.--Prioritized payments on a 
        participating security shall be preferred and cumulative and 
        payable out of the retained earnings available for distribution 
        (as defined by the Administrator) of the issuing licensee at--
                  (A) a rate determined by the Secretary of the 
                Treasury taking into consideration the current average 
                market yield on outstanding marketable obligations of 
                the United States with remaining periods to maturity 
                comparable to the average maturities on such 
                securities, adjusted to the nearest 0.125 percent; plus
                  (B) in the case of a participating security obligated 
                after September 30, 2001, an additional charge, in an 
                amount established annually by the Administrator, as 
                necessary to reduce to zero the cost (as defined in 
                section 502 of the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661a)) to the Administrator of purchasing and 
                guaranteeing participating securities under this 
                chapter, which amount may not exceed 1.46 percent per 
                year, and which shall be paid to and retained by the 
                Administrator.
          (6) Seniority of participating securities on liquidation of 
        licensee.--In the event of liquidation of a licensee, a 
        participating security issued by the licensee shall be senior 
        in priority for all purposes to any other equity interest in 
        the licensee without regard to whether the participating 
        security was issued before, on, or after the date on which the 
        other equity interest was issued.
          (7) Investment in equity capital.--A licensee that issues a 
        participating security shall commit to invest or shall invest 
        an amount equal to the outstanding face value of the 
        participating security solely in equity capital.
          (8) Limitation on amount of debt.--The only debt (other than 
        leverage obtained under this chapter) that a licensee that 
        issues a participating security may have outstanding shall be 
        temporary debt in an amount that is equal to not more than 50 
        percent of the amount of private capital of the licensee.
          (9) Use of proceeds to pay principal on debentures.--The 
        Administrator may permit the proceeds of a participating 
        security issued by a licensee to be used to pay the principal 
        amount due on an outstanding debenture guaranteed by the 
        Administrator if--
                  (A) the licensee has outstanding equity capital 
                invested in an amount equal to the amount of the 
                debenture being refinanced; and
                  (B) the Administrator receives profit participation 
                on such terms and conditions as the Administrator may 
                determine, but not to exceed the percentages specified 
                in paragraph (11).
          (10) Distributions; return of capital.--
                  (A) Distributions to partners, shareholders, and 
                members.--
                          (i) Annual distributions.--Notwithstanding 
                        subparagraph (B), if a licensee is operating as 
                        a limited partnership or as a subchapter S 
                        corporation or an equivalent pass-through 
                        entity for tax purposes and if there are no 
                        accumulated and unpaid prioritized payments, 
                        the licensee may make annual distributions to 
                        the partners, shareholders, or members in 
                        amounts not greater than each partner's, 
                        shareholder's, or member's maximum tax 
                        liability.
                          (ii) Interim distributions.--In addition to 
                        an annual distribution, a licensee may make a 
                        distribution under this subparagraph at any 
                        time during any calendar quarter based on an 
                        estimate of the maximum tax liability.
                          (iii) Excess distribution.--If a licensee 
                        makes one or more interim distributions for a 
                        calendar year, and the aggregate amount of 
                        those distributions exceeds the maximum amount 
                        that the licensee could have distributed based 
                        on a single annual computation, any subsequent 
                        distribution by the licensee under this 
                        subparagraph shall be reduced by an amount 
                        equal to the excess amount distributed.
                  (B) Distributions to investors.--After making any 
                distributions as provided in subparagraph (A), a 
                licensee with participating securities outstanding may 
                distribute the balance of income to its investors 
                (including the Administrator, in the percentages 
                specified in paragraph (11)) if there are no 
                accumulated and unpaid prioritized payments and if all 
                amounts due the Administrator under paragraph (11) have 
                been paid in full, subject to the following conditions:
                          (i) As of the date of the proposed 
                        distribution, if the amount of leverage 
                        outstanding is more than 200 percent of the 
                        amount of private capital, any amounts 
                        distributed shall be made to private investors 
                        and to the Administrator in the ratio of 
                        leverage to private capital.
                          (ii) As of the date of the proposed 
                        distribution, if the amount of leverage 
                        outstanding is more than 100 percent but not 
                        more than 200 percent of the amount of private 
                        capital, 50 percent of any amounts distributed 
                        shall be made to the Administrator and 50 
                        percent shall be made to the private investors.
                          (iii) If the amount of leverage outstanding 
                        is 100 percent, or less, of the amount of 
                        private capital, the ratio shall be that for 
                        distribution of profits as provided in 
                        paragraph (11).
                          (iv) Any amount received by the Administrator 
                        under clause (i) or (ii) shall be applied first 
                        as profit participation as provided in 
                        paragraph (11), and any remainder shall be 
                        applied as a prepayment of the principal amount 
                        of the participating securities or debentures.
                  (C) Return of capital to investors.--
                          (i) In general.--After making any 
                        distributions under subparagraph (A), a 
                        licensee with participating securities 
                        outstanding may return capital to its investors 
                        (including the Administrator) if there are no 
                        accumulated and unpaid prioritized payments and 
                        if all amounts due the Administrator under 
                        paragraph (11) have been paid in full.
                          (ii) Ratio.--Except as provided in clause 
                        (iii), any distribution under this subparagraph 
                        shall be made to private investors and to the 
                        Administrator in the ratio of private capital 
                        to leverage as of the date of the proposed 
                        distribution.
                          (iii) No required distribution to 
                        administrator.--If a licensee's amount of 
                        leverage outstanding is less than 50 percent of 
                        the amount of private capital or $10,000,000, 
                        whichever is less, no distribution shall be 
                        required to be made to the Administrator unless 
                        the Administrator determines, on a case by case 
                        basis, to require a distribution to the 
                        Administrator to reduce the amount of 
                        outstanding leverage to an amount less than 
                        $10,000,000.
          (11) Administrator's profit participation.--
                  (A) In general.--A licensee that issues participating 
                securities shall agree to allocate to the Administrator 
                a share of its profits determined by the relationship 
                of its private capital to the amount of participating 
                securities guaranteed by the Administrator in 
                accordance with the following:
                          (i) If the total amount of participating 
                        securities is 100 percent of private capital or 
                        less, the licensee shall allocate to the 
                        Administrator a percentage share computed as 
                        follows:
                                  (I)(aa) the amount of participating 
                                securities; divided by
                                  (bb) the amount of private capital; 
                                multiplied by
                                  (II) 9 percent.
                          (ii) If the total amount of participating 
                        securities is more than 100 percent but not 
                        greater than 200 percent of private capital, 
                        the licensee shall allocate to the 
                        Administrator a percentage share computed as 
                        follows:
                                  (I) 9 percent; plus
                                  (II)(aa) 3 percent of the amount of 
                                participating securities minus the 
                                amount of private capital; divided by
                                  (bb) the amount of private capital.
                  (B) Management expenses.--For purposes of computing 
                profit participation under this paragraph, except as 
                otherwise determined by the Administrator, the 
                management expenses of a licensee that issues 
                participating securities shall not be greater than 2.5 
                percent per year of the combined capital of the 
                company, plus $125,000 if the licensee's combined 
                capital is less than $20,000,000.
                  (C) Maximum percentage.--
                          (i) In general.--Notwithstanding any other 
                        provision of this paragraph, unless required by 
                        operation of clause (ii), the total percentage 
                        required by this paragraph shall not exceed 12 
                        percent.
                          (ii) Adjustment.--If, on the date on which a 
                        participating security is marketed, the 
                        interest rate on Treasury bonds with a maturity 
                        of 10 years is a rate other than 8 percent, the 
                        Administrator shall adjust the rate specified 
                        in subparagraph (A), either higher or lower, by 
                        the same percentage by which the Treasury bond 
                        rate is higher or lower than 8 percent.
                  (D) Effect of paragraph.--This paragraph does not 
                create any ownership interest of the Administrator in a 
                licensee.
          (12) In-kind distributions.--
                  (A) In general.--A licensee may make an in-kind 
                distribution of securities only if the securities are 
                publicly traded and marketable.
                  (B) Administrator's share.--
                          (i) In general.--A licensee shall deposit the 
                        Administrator's share of an in-kind 
                        distribution of securities for disposition with 
                        a trustee designated by the Administrator, or, 
                        at the option of the Administrator and with the 
                        agreement of the licensee, the Administrator 
                        may direct the licensee to retain the 
                        Administrator's share.
                          (ii) Trustee.--A trustee designated by the 
                        Administrator under clause (i) shall be a 
                        person that is knowledgeable about and 
                        proficient in the marketing of thinly traded 
                        securities.
                          (iii) Sale.--If the licensee retains the 
                        Administrator's share, the licensee shall sell 
                        the Administrator's share and promptly remit 
                        the proceeds to the Administrator.
          (13) Additional restrictions and limitations.--Participating 
        securities guaranteed under this subsection shall be subject to 
        such restrictions and limitations, in addition to restrictions 
        and limitations specified in this subsection, as the 
        Administrator may determine.
  (h) Computation of Amounts Due Under Participating Securities.--The 
computation of amounts due the Administrator under participating 
securities shall be subject to the following terms and conditions:
          (1) The formula in subsection (g)(11) shall be computed 
        annually, and the Administrator shall receive distributions of 
        the Administrator's profit participation at the same time as 
        other investors in a licensee.
          (2) The formula shall not be modified due to an increase in 
        the private capital unless the increase is provided for in a 
        proposed business plan submitted to and approved by the 
        Administrator.
          (3) After a distribution is made, the Administrator's share 
        of the distribution shall not be recomputed or reduced.
          (4) If a licensee prepays or repays a participating security, 
        the Administrator shall receive the requisite participation on 
        the distribution of profits due to any investments held by the 
        licensee on the date of the prepayment or repayment.
          (5) A licensee that was licensed on or before March 31, 1993, 
        may exclude from profit participation all investments held on 
        that date. If such a licensee does so, the Administrator shall 
        determine the amount of the future expenses attributable to the 
        prior investment. If the licensee issues participating 
        securities to refinance debentures as authorized in subsection 
        (g)(9), the licensee may not exclude profits on existing 
        investments under this paragraph.
  (i) Leverage Fee.--With respect to leverage granted by the 
Administrator to a licensee, the Administrator shall collect from the 
licensee a nonrefundable fee in an amount equal to 3 percent of the 
face amount of the leverage in the following manner:
          (1) One percent on the date on which the Administrator enters 
        into a commitment for leverage with the licensee.
          (2) The balance of 2 percent (or 3 percent if no commitment 
        has been entered into by the Administrator) on the date on 
        which the leverage is drawn by the licensee.
  (j) Calculation of Subsidy Rate.--All fees, interest, and profits 
received and retained by the Administrator under this section shall be 
included in the calculations made by the Director of the Office of 
Management and Budget to offset the cost (as defined in section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the 
Administrator of purchasing and guaranteeing debentures and 
participating securities under this chapter.
  (k) Periodic Issuance of Guarantees.--The Administrator shall issue 
guarantees under this section--
          (1) at periodic intervals of not less than every 12 months; 
        and
          (2) at such shorter intervals as the Administrator considers 
        appropriate, taking into consideration the amount and number of 
        guarantees.
  (l) Energy Saving Debentures.--In addition to any other authority 
under this subtitle, a small business investment company licensed in 
fiscal year 2009 or any fiscal year thereafter may issue energy saving 
debentures.
Sec. 30305. Equity capital for small business concerns
  (a) Function of Licensees.--It shall be a function of a licensee to 
provide a source of equity capital for small business concerns in such 
manner and under such terms as the licensee may determine in accordance 
with the regulations of the Administrator.
  (b) Conditions.--Before a licensee provides any capital to a small 
business concern under this section--
          (1) the licensee may require the small business concern to 
        refinance any or all of its outstanding indebtedness so that 
        the licensee is the only holder of any evidence of indebtedness 
        of the small business concern; and
          (2) except as provided in regulations issued by the 
        Administrator, the small business concern shall agree that the 
        small business concern will not thereafter incur any 
        indebtedness without first securing the approval of the 
        licensee and giving the licensee the first opportunity to 
        finance the indebtedness.
  (c) Direct or Cooperative Provision of Capital.--Equity capital 
provided to an incorporated small business concern under this section 
may be provided directly or in cooperation with other investors, 
incorporated or unincorporated, through agreements to participate on an 
immediate basis.
Sec. 30306. Long-term loans to small business concerns
  (a) Authorization.--A licensee may make a loan, in the manner and 
subject to the conditions described in this section, to a small 
business concern to provide the small business concern with funds 
needed for sound financing, growth, modernization, and expansion.
  (b) Direct Loans; Loans on Participation Basis.--A loan made under 
this section may be made directly or in cooperation with one or more 
other lenders through an agreement to participate on an immediate or 
deferred basis.
  (c) Maximum Rate of Interest.--
          (1) In general.--The maximum rate of interest for a 
        licensee's share of a loan made under this section shall be 
        determined by the Administrator.
          (2) Basis of maximum rate.--The Administrator shall permit a 
        licensee that has issued debentures under this chapter to 
        charge a maximum rate of interest based on--
                  (A) the coupon rate of interest on the outstanding 
                debentures, determined on an annual basis; plus
                  (B) such other expenses of the licensee as may be 
                approved by the Administrator.
  (d) Maturity.--A loan made under this section shall have a maturity 
not exceeding 20 years.
  (e) Soundness of Loan; Security.--A loan made under this section 
shall be of such sound value, or so secured, as reasonably to ensure 
repayment.
  (f) Extension or Renewal.--A licensee that has made a loan to a small 
business concern under this section may extend the maturity of or renew 
the loan for additional periods, not exceeding 10 years, if the 
licensee finds that the extension or renewal will aid in the orderly 
liquidation of the loan.
Sec. 30307. Limitation on amount of financing
  If a licensee has obtained financing from the Administrator and the 
financing remains outstanding, the aggregate amount of obligations and 
securities acquired and for which commitments may be issued by the 
licensee under this chapter for any single small business concern shall 
not exceed 20 percent of the amount of private capital of the licensee, 
without the approval of the Administrator.
Sec. 30308. Cooperation with banks and other investors or lenders
  (a) In General.--Under any circumstances in which it is practicable, 
the operations of a licensee (including the generation of business) may 
be undertaken in cooperation with banks or other investors or lenders, 
and any servicing or initial investigation required for loans or 
acquisitions of securities by the licensee under this chapter may be 
handled through such banks or other investors or lenders on a fee 
basis.
  (b) Fees.--A licensee may receive fees for services rendered to banks 
and other investors and lenders.
Sec. 30309. Advisory services; Federal Reserve Banks as depositories or 
                    fiscal agents; investment of funds
  (a) Advisory Services.--A licensee, under any circumstances in which 
it is practicable, may--
          (1) use the advisory services of the Federal Reserve System 
        and of the Department of Commerce that are available for and 
        useful to industrial and commercial businesses; and
          (2) provide consulting and advisory services on a fee basis 
        and have on its staff persons competent to provide such 
        services.
  (b) Federal Reserve Bank as Depository or Fiscal Agent.--A Federal 
Reserve bank may act as a depository or fiscal agent for a licensee.
  (c) Investment of Funds.--A licensee that was licensed before October 
1, 2004, and has outstanding financings may invest funds not needed for 
its operations--
          (1) in direct obligations of, or obligations guaranteed as to 
        principal and interest by, the United States;
          (2) in certificates of deposit or other accounts of federally 
        insured banks or other federally insured depository 
        institutions, if the certificates or other accounts mature or 
        are otherwise fully available not more than one year after the 
        date of the investment; or
          (3) in mutual funds, securities, or other instruments that 
        consist of, or represent pooled assets of, investments 
        described in paragraph (1) or (2).
Sec. 30310. Nonliability of the United States
  Except as expressly provided otherwise in this subtitle, nothing in 
this subtitle or in any other provision of law shall be deemed to 
impose any liability on the United States with respect to any 
obligation entered into, or stocks issued, or commitments made, by a 
licensee.
Sec. 30311. Certifications of eligibility
  (a) Certification by Small Business Concern.--Before receiving 
financial assistance from a licensee, a small business concern shall 
certify in writing that the small business concern meets the applicable 
eligibility requirements of this chapter.
  (b) Certification by Licensee.--Before providing financial assistance 
to a small business concern under this chapter, a licensee shall 
certify in writing that--
          (1) the licensee has reviewed the application for assistance 
        of the small business concern; and
          (2) all documentation and other information supports the 
        eligibility of the applicant.
  (c) Retention of Certifications.--A certificate made under subsection 
(a) or (b) shall be retained by a licensee for the duration of the 
financial assistance covered by the certificate.
Sec. 30312. Interest rates
  (a) Definition of Interest.--In this section:
          (1) In general.--The term ``interest'' means the maximum 
        mandatory sum, expressed in dollars or as a percentage rate, 
        that is payable with respect to a business loan amount received 
        by a small business concern.
          (2) Exclusion.--The term ``interest'' does not include the 
        value, if any, of a contingent obligation (including a warrant, 
        royalty, or conversion right) granting a licensee an ownership 
        interest in the equity or increased future revenue of a small 
        business concern receiving the business loan.
  (b) Interest Rate.--A licensee may charge interest on a loan at a 
rate that does not exceed the maximum rate prescribed by regulation by 
the Administrator for loans made by any licensee (determined without 
regard to any State rate incorporated by the regulation).
  (c) Preemption of State Law.--A State law (including a constitutional 
provision) shall be preempted for purposes of subsection (a) with 
respect to a loan if the loan is made before the date, on or after 
April 1, 1980, on which the State adopts a law, or certifies that the 
voters of the State have voted in favor of any provision, 
constitutional or otherwise, that states explicitly and by its terms 
that the State does not want this section to apply with respect to 
loans made in the State.
  (d) Excessive Interest.--
          (1) Forfeiture.--If the maximum rate of interest authorized 
        under subsection (a) on a loan made by a licensee exceeds the 
        rate that would be authorized by applicable State law if the 
        State law were not preempted under subsection (a), the charging 
        of interest at a rate in excess of the rate authorized by 
        subsection (a) shall be deemed a forfeiture of the greater of--
                  (A) all interest that the loan carries with it; or
                  (B) all interest that has been agreed to be paid on 
                the loan.
          (2) Double recovery.--In the case of a loan with respect to 
        which there is a forfeiture of interest under paragraph (1), 
        the person that paid the interest may recover from the licensee 
        that made the loan, in a civil action commenced in a court of 
        appropriate jurisdiction not later than 2 years after the most 
        recent payment of interest, an amount equal to twice the amount 
        of the interest paid on the loan.
Sec. 30313. Conflicts of interest
  (a) In General.--For the purpose of controlling conflicts of interest 
that may be detrimental to small business concerns, to licensees, to 
the shareholders, partners, or members of small business concerns or 
licensees, or to the purposes of this subtitle, the Administrator shall 
adopt regulations to govern transactions with--
          (1) any officer, director, shareholder, partner, or member of 
        a licensee; or
          (2) any person or concern in which any interest, direct or 
        indirect, financial or otherwise, is held by any officer, 
        director, shareholder, partner, or member of--
                  (A) a licensee; or
                  (B) any person or concern with an interest, direct or 
                indirect, financial or otherwise, in a licensee.
  (b) Contents.--The regulations under subsection (a) shall include 
appropriate requirements for public disclosure necessary to the 
purposes of this section.
Sec. 30314. Ineligibility of guaranteed obligations for purchase by 
                    Federal Financing Bank
  No provision of law authorizes the Federal Financing Bank to 
acquire--
          (1) any obligation the payment of principal or interest on 
        which has at any time been guaranteed in whole or in part under 
        this chapter;
          (2) any obligation that is an interest in an obligation 
        described in paragraph (1); or
          (3) any obligation that is secured by, or substantially all 
        of the value of which is attributable to, an obligation 
        described in paragraph (1) or (2).
Sec. 30315. Trust certificates
  (a) Issuance.--
          (1) In general.--The Administrator may issue trust 
        certificates representing ownership of all or a fractional part 
        of--
                  (A) debentures issued by a licensee and guaranteed by 
                the Administrator under this chapter; or
                  (B) participating securities issued by a licensee and 
                purchased and guaranteed under section 30304 of this 
                title.
          (2) Trust or pool.--A trust certificate issued under 
        paragraph (1) shall be based on and backed by a trust or pool 
        approved by the Administrator and composed solely of guaranteed 
        debentures or guaranteed participating securities.
  (b) Guarantee.--
          (1) In general.--The Administrator may, on such terms and 
        conditions as the Administrator considers appropriate, 
        guarantee the timely payment of the principal of and interest 
        on trust certificates issued by the Administrator (or an agent 
        of the Administrator) for purposes of this section.
          (2) Limitation.--A guarantee shall be limited to the extent 
        of principal and interest on the guaranteed debentures or the 
        redemption price of and priority payments on the participating 
        securities that compose the trust or pool.
          (3) Prepayment or redemption.--
                  (A) Reduction of guarantee.--If a debenture in a 
                trust or pool is prepaid or a participating security is 
                redeemed, voluntarily or involuntarily, or in the event 
                of default of a debenture or voluntary or involuntary 
                redemption of a participating security, the guarantee 
                of timely payment of principal and interest on the 
                related trust certificates shall be reduced in 
                proportion to the amount of principal and interest that 
                the prepaid debenture or redeemed participating 
                security and priority payments represent in the trust 
                or pool.
                  (B) Limitation on guarantee of interest.--Interest on 
                a prepaid or defaulted debenture or a priority payment 
                on a participating security shall accrue and be 
                guaranteed by the Administrator only through the date 
                of payment on the guarantee.
                  (C) Call of trust certificate.--During the term of a 
                trust certificate, the trust certificate may be called 
                for redemption due to prepayment or default of all 
                debentures or redemption, voluntary or involuntary, of 
                all participating securities residing in the trust or 
                pool.
  (c) Full Faith and Credit of the United States.--The full faith and 
credit of the United States is pledged to the payment of all amounts 
that may be required to be paid under any guarantee of a trust 
certificate issued by the Administrator (or an agent of the 
Administrator) under this section.
  (d) Fees.--
          (1) Administrator.--The Administrator shall not collect a fee 
        for a guarantee under this section.
          (2) Agent of the administrator.--This subsection does not 
        preclude an agent of the Administrator from collecting a fee 
        approved by the Administrator for performing the functions 
        described in subsection (f)(2).
  (e) Subrogation; Ownership Rights in Debentures and Participating 
Securities.--
          (1) Subrogation.--If the Administrator pays a claim under a 
        guarantee issued under this section, the Administrator shall be 
        subrogated fully to the rights satisfied by the payment.
          (2) Ownership rights in debentures and participating 
        securities.--No Federal, State or local law shall preclude or 
        limit the exercise by the Administrator of the Administrator's 
        ownership rights in the debentures or participating securities 
        residing in a trust or pool against which trust certificates 
        are issued.
  (f) Central Registration; Regulation of Brokers and Dealers.--
          (1) Central registration.--The Administrator shall provide 
        for a central registration of all trust certificates sold under 
        this section.
          (2) Agent.--
                  (A) In general.--The Administrator shall contract 
                with one or more agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions of this section including, notwithstanding 
                any other provision of law--
                          (i) maintenance on behalf of and under the 
                        direction of the Administrator, such commercial 
                        bank accounts or investments in obligations of 
                        the United States as may be necessary to 
                        facilitate trusts or pools backed by debentures 
                        or participating securities guaranteed under 
                        this chapter; and
                          (ii) the issuance of trust certificates to 
                        facilitate such poolings.
                  (B) Bond or insurance.--An agent under subparagraph 
                (A) shall provide a fidelity bond or insurance in such 
                amounts as the Administrator determines to be necessary 
                to fully protect the interests of the Government.
          (3) Disclosure.--The Administrator shall require a seller of 
        a trust certificate issued under this section to disclose to 
        the purchaser, before the sale, information on the terms, 
        conditions, and yield of the trust certificate.
          (4) Regulation of brokers and dealers.--The Administrator may 
        regulate brokers and dealers in trust certificates sold under 
        this section.
          (5) Effect of subsection.--This subsection does not preclude 
        the use of a book-entry or other electronic form of 
        registration for trust certificates.
  (g) Periodic Issuance of Trust Certificates.--The Administrator shall 
issue trust certificates under this section--
          (1) at periodic intervals of not less than every 12 months; 
        and
          (2) at such shorter intervals as the Administrator considers 
        appropriate, taking into consideration the amount and number of 
        trust certificates.
Sec. 30316. Regulations
  The Administrator may prescribe regulations governing the operations 
of licensees, and regulations to carry out this subtitle, in accordance 
with the purposes of this subtitle.
Sec. 30317. Unlawful acts and omissions
  (a) Violation by Licensee Deemed Violation by Person Participating.--
If a licensee violates any provision of this subtitle (including a 
regulation issued under this subtitle) by reason of its failure to 
comply with the terms of the provision (or regulation) or by reason of 
its engaging in any act or practice that constitutes or will constitute 
a violation of the provision (or regulation), the violation shall also 
be a violation and an unlawful act on the part of any person who, 
directly or indirectly, authorizes, orders, participates in, or causes, 
brings about, counsels, aids, or abets in the commission of any act, 
practice, or transaction that constitutes or will constitute, in whole 
or in part, the violation.
  (b) Breach of Fiduciary Duty.--It shall be unlawful for an officer, 
director, employee, agent, or other participant in the management or 
conduct of the affairs of a licensee to engage in any act or practice, 
or to omit any act, in breach of the fiduciary duty of the officer, 
director, employee, agent, or participant if, as a result of engaging 
in the act or practice or of the omission to act, the licensee suffers 
or is in imminent danger of suffering financial loss or other damage.
  (c) Disqualification of Officers and Employees for Dishonesty, Fraud, 
or Breach of Trust.--Except with the written consent of the 
Administrator, it shall be unlawful--
          (1) for any person to take office as an officer, director, or 
        employee of a licensee, or to become an agent or participant in 
        the conduct of the affairs or management of a licensee, if the 
        person--
                  (A) has been convicted of--
                          (i) a felony; or
                          (ii) any other criminal offense involving 
                        dishonesty or breach of trust; or
                  (B) has been found civilly liable in damages, or is 
                permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust; or
          (2) for any person to continue to serve in any of the above-
        described capacities, if the person, after November 6, 1966--
                  (A) is convicted of--
                          (i) a felony; or
                          (ii) any other criminal offense involving 
                        dishonesty or breach of trust; or
                  (B) is found civilly liable in damages, or is 
                permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust.
Sec. 30318. Investigations; examinations; valuations
  (a) Investigation of Violations.--
          (1) In general.--The Administrator may make such 
        investigations as the Administrator considers necessary to 
        determine whether a licensee or any other person has engaged or 
        is about to engage in an act or practice that constitutes or 
        will constitute a violation of any provision of this subtitle 
        (including a regulation under this subtitle) or of an order 
        issued under this subtitle.
          (2) Statements.--The Administrator shall permit any person to 
        file with the Administrator a statement in writing, under oath 
        or otherwise as the Administrator shall determine, as to all 
        the facts and circumstances concerning the matter to be 
        investigated.
          (3) Powers.--For the purpose of any investigation, the 
        Administrator may administer oaths and affirmations, subpoena 
        witnesses, compel the attendance of witnesses, take evidence, 
        and require the production of any records that are relevant to 
        the inquiry. The attendance of witnesses and the production of 
        any such records may be required from any place in the United 
        States.
          (4) Contumacy or refusal to obey order of the 
        administrator.--
                  (A) In general.--In case of contumacy by, or refusal 
                to obey a subpoena issued to, any person (including a 
                licensee), the Administrator may invoke the aid of any 
                court of the United States within the jurisdiction of 
                which the investigation or proceeding is carried on, or 
                in which the person resides or carries on business, in 
                requiring the attendance and testimony of witnesses and 
                the production of records, and the court may issue an 
                order requiring the person to appear before the 
                Administrator, to produce records, or to give testimony 
                touching the matter under investigation.
                  (B) Failure to obey court order.--A failure to obey 
                an order of the court may be punished by the court as a 
                contempt of court.
                  (C) Process.--Process in a case under this paragraph 
                may be served in the judicial district of which the 
                person is an inhabitant or wherever the person may be 
                found.
  (b) Examinations of and Reports by Licensees.--
          (1) In general.--A licensee shall be subject to examinations 
        made by direction of the Investment Division of the 
        Administration, which may be conducted with the assistance of a 
        private sector entity that has the qualifications to conduct 
        and expertise in conducting such examinations.
          (2) Examination fee.--The Administrator may assess against a 
        licensee that is examined, as an examination fee, the cost of 
        the examination (including compensation of the examiners), and 
        the licensee shall pay the examination fee.
          (3) Use of examination fees.--Examination fees collected 
        under this subsection shall be deposited in the account for 
        salaries and expenses of the Administration, and are authorized 
        to be appropriated solely to cover the costs of examinations 
        and other program oversight activities.
          (4) Reports.--
                  (A) In general.--A licensee shall make such reports 
                to the Administrator at such times and in such form as 
                the Administrator may require.
                  (B) Exemption.--The Administrator may exempt from a 
                requirement to make a report a licensee that is 
                registered under the Investment Company Act of 1940 (15 
                U.S.C. 80a-1 et seq.) to the extent necessary to avoid 
                duplication in reporting requirements.
                  (C) Violation.--
                          (i) In general.--Except as provided in clause 
                        (ii), a licensee that violates any regulation 
                        or written directive issued by the 
                        Administrator requiring the filing of any 
                        regular or special report under subparagraph 
                        (A) shall pay to the United States a civil 
                        penalty of not more than $100 for each day of 
                        the continuance of the licensee's failure to 
                        file the report, unless it is shown that the 
                        failure is due to reasonable cause and not due 
                        to willful neglect.
                          (ii) Exemption from reporting requirements.--
                                  (I) In general.--If the Administrator 
                                determines that granting an exemption 
                                would not be inconsistent with the 
                                public interest or the protection of 
                                the Administration, the Administrator 
                                may exempt a licensee from clause (i)--
                                          (aa) in whole or in part; and
                                          (bb) on such terms and 
                                        conditions and for such period 
                                        of time as the Administrator 
                                        considers necessary and 
                                        appropriate.
                                  (II) Procedure.--The Administrator 
                                may grant an exemption under subclause 
                                (I)--
                                          (aa) by regulation; or
                                          (bb) on application of an 
                                        interested party, at any time 
                                        previous to a violation 
                                        described in clause (i), by 
                                        order, after notice and 
                                        opportunity for hearing.
                          (iii) Alternative requirements.--The 
                        Administrator may for purposes of this 
                        subparagraph make any alternative requirement 
                        that the Administrator considers to be 
                        appropriate to a situation.
                          (iv) Civil action.--The civil penalty 
                        provided for in this subparagraph may be 
                        recovered in a civil action brought by the 
                        Administrator.
          (5) Scope of examination.--An examination shall be conducted 
        in such detail as to determine whether the licensee--
                  (A) has engaged solely in lawful activities and those 
                contemplated by this chapter;
                  (B) has engaged in prohibited conflicts of interest;
                  (C) has acquired or exercised illegal control of an 
                assisted small business;
                  (D) has made investments in small business concerns 
                for not less than one year;
                  (E) has invested more than 20 percent of its capital 
                in any individual small business, if that restriction 
                is applicable;
                  (F) has engaged in relending, foreign investments, or 
                passive investments; or
                  (G) has charged an interest rate in excess of the 
                maximum permitted by law.
          (6) Frequency of examination.--
                  (A) In general.--A licensee shall be examined at 
                least every 2 years.
                  (B) Waiver.--The Administrator may waive an 
                examination of a licensee--
                          (i) for up to one additional year if, the 
                        Administrator determines that such a delay 
                        would be appropriate, based on the amount of 
                        debentures being issued by the licensee and the 
                        repayment record of the licensee, the prior 
                        operating experience of the licensee, the 
                        contents and results of the last examination of 
                        the licensee, and the management expertise of 
                        the licensee; or
                          (ii) if the licensee's operations have been 
                        suspended while the licensee is involved in 
                        litigation or is in receivership.
  (c) Valuations.--
          (1) Frequency of valuations.--
                  (A) In general.--A licensee shall submit to the 
                Administrator a written valuation of the loans and 
                investments of the licensee not less often than 
                semiannually, or otherwise on the request of the 
                Administrator, except that a licensee with no leverage 
                outstanding shall submit a valuation annually unless 
                the Administrator determines otherwise.
                  (B) Material adverse changes.--Not later than 30 days 
                after the end of a fiscal quarter of a licensee during 
                which a material adverse change in the aggregate 
                valuation of the loans and investments or operations of 
                the licensee occurs, the licensee shall notify the 
                Administrator in writing of the nature and extent of 
                that change.
                  (C) Independent certification.--
                          (i) In general.--Not less than once during 
                        each fiscal year, a licensee shall submit to 
                        the Administrator the financial statements of 
                        the licensee, audited by an independent 
                        certified public accountant approved by the 
                        Administrator.
                          (ii) Audit requirements.--An audit conducted 
                        under clause (i) shall include--
                                  (I) a review of the procedures and 
                                documentation used by the licensee in 
                                preparing the valuations required by 
                                this section; and
                                  (II) a statement by the independent 
                                certified public accountant that the 
                                valuations were prepared in conformity 
                                with the valuation criteria applicable 
                                to the licensee established in 
                                accordance with paragraph (2).
          (2) Valuation criteria.--A valuation submitted under this 
        subsection shall be prepared by the licensee in accordance with 
        valuation criteria that--
                  (A) shall be established or approved by the 
                Administrator; and
                  (B) shall include appropriate safeguards to ensure 
                that the noncash assets of a licensee are not 
                overvalued.
Sec. 30319. Revocation and suspension of licenses; cease and desist 
                    orders
  (a) Grounds for Revocation or Suspension.--The Administrator may 
revoke or suspend a license--
          (1) for a false statement knowingly made in a written 
        statement required under this chapter (including a regulation 
        under this chapter);
          (2) for failure, in a written statement required under this 
        chapter (including a regulation under this chapter), to state a 
        material fact necessary to make the statement not misleading in 
        the light of the circumstances under which the statement is 
        made;
          (3) for willful or repeated violation of, or willful or 
        repeated failure to observe, any provision of this chapter 
        (including a regulation under this chapter); or
          (4) for violation of, or failure to observe, a cease and 
        desist order issued by the Administrator under this section.
  (b) Grounds for Cease and Desist Order.--If a licensee or any other 
person has not complied with any provision of this subtitle (including 
a regulation issued under this subtitle) or is engaging or is about to 
engage in any act or practice that constitutes or will constitute a 
violation of this subtitle (including a regulation), the Administrator 
may--
          (1) order such licensee or other person--
                  (A) to cease and desist from the action or failure to 
                act; and
                  (B) to take such action or to refrain from such 
                action as the Administrator considers necessary to 
                ensure compliance with this subtitle (including 
                regulations); and
          (2) suspend the license of a licensee against which an order 
        has been issued until the licensee complies with the order.
  (c) Procedure.--
          (1) Order to show cause.--
                  (A) In general.--Before revoking or suspending a 
                license under subsection (a) or issuing a cease and 
                desist order under subsection (b), the Administrator 
                shall serve on the licensee and any other person 
                involved an order to show cause why an order revoking 
                or suspending the license or a cease and desist order 
                should not be issued.
                  (B) Contents.--An order to show cause shall--
                          (i) contain a statement of the matters of 
                        fact and law asserted by the Administrator and 
                        the legal authority and jurisdiction under 
                        which a hearing is to be held; and
                          (ii) state that a hearing will be held before 
                        the Administrator at a time and place stated in 
                        the order.
          (2) Determination.--
                  (A) In general.--If, after hearing (or waiver of 
                hearing), the Administrator determines on the record 
                that an order revoking or suspending the license or a 
                cease and desist order should issue, the Administrator 
                shall promptly issue such an order.
                  (B) Contents.--An order revoking or suspending a 
                license or cease and desist order shall--
                          (i) include a statement of the findings of 
                        the Administrator and the grounds and reasons 
                        for the order; and
                          (ii) state the effective date of the order.
                  (C) Service.--The Administrator shall cause an order 
                revoking or suspending a license or cease and desist 
                order to be served on the licensee and any other person 
                involved.
  (d) Subpoenas.--
          (1) In general.--The Administrator may require by subpoena 
        the attendance and testimony of witnesses and the production of 
        all records relating to a hearing from any place in the United 
        States.
          (2) Fees and mileage.--A witness summoned before the 
        Administrator shall be paid by the party at whose instance the 
        witness is called the same fees and mileage that are paid 
        witnesses in the courts of the United States.
          (3) Disobedience of subpoena.--In case of disobedience to a 
        subpoena, the Administrator, or any party to a proceeding 
        before the Administrator, may invoke the aid of any court of 
        the United States in requiring the attendance and testimony of 
        a witness and the production of a record.
  (e) Petition To Modify or Set Aside Order.--
          (1) Filing.--
                  (A) Petition by right.--An order issued by the 
                Administrator under this section shall be final and 
                conclusive unless, within 30 days after service of the 
                order, the licensee or other person against which the 
                order is issued appeals to the United States court of 
                appeals for the circuit in which the licensee has its 
                principal place of business by filing with the clerk of 
                the court a petition praying that the Administrator's 
                order be set aside or modified in the manner stated in 
                the petition.
                  (B) Petition by leave of court.--After the expiration 
                of the 30-day period described in subparagraph (A), a 
                petition may be filed only by leave of court on a 
                showing of reasonable grounds for failure to file the 
                petition within the 30-day period.
          (2) Transcript.--The clerk of the court shall immediately 
        cause a copy of the petition to be delivered to the 
        Administrator, and the Administrator shall certify and file in 
        the court a transcript of the record on which the order 
        complained of was entered. If, before the transcript is filed, 
        the Administrator amends or sets aside the order, in whole or 
        in part, the petitioner may amend the petition within such time 
        as the court may determine, on notice to the Administrator.
          (3) Stay or suspension.--The filing of a petition for review 
        shall not of itself stay or suspend the operation of the order 
        of the Administrator, but the court of appeals may restrain or 
        suspend, in whole or in part, the operation of the order 
        pending the final hearing and determination of the petition.
          (4) Court action.--The court may affirm, modify, or set aside 
        the order of the Administrator.
          (5) Additional evidence.--
                  (A) Reopening of hearing.--If the court determines 
                that the just and proper disposition of the case 
                requires the taking of additional evidence, the court 
                shall order the Administrator to reopen the hearing for 
                the taking of such evidence, in such manner and on such 
                terms and conditions as the court considers proper.
                  (B) Modified or new findings.--The Administrator--
                          (i) may modify the findings as to the facts, 
                        or make new findings, by reason of the 
                        additional evidence so taken; and
                          (ii) shall file any modified or new findings 
                        and the amendments, if any, of the order, with 
                        the record of such additional evidence.
          (6) Limitation on consideration of objections.--No objection 
        to an order of the Administrator shall be considered by the 
        court unless the objection was urged before the Administrator 
        or, if it was not so urged, unless there were reasonable 
        grounds for failure to do so.
          (7) Review of judgment.--A judgment of the court affirming, 
        modifying, or setting aside an order of the Administrator shall 
        be subject only to review by the Supreme Court on certification 
        or certiorari as provided in section 1254 of title 28.
  (f) Enforcement of Order.--
          (1) In general.--If a licensee or other person against which 
        an order is issued under this section fails to obey the order, 
        the Administrator--
                  (A) may apply to the United States court of appeals 
                for the circuit in which the licensee has its principal 
                place of business for the enforcement of the order; and
                  (B) shall file a transcript of the record on which 
                the order complained of was entered.
          (2) Notice.--On filing of an application under paragraph (1), 
        the court shall cause notice of the application to be served on 
        the licensee or other person.
          (3) Evidence, procedure, and jurisdiction.--The evidence to 
        be considered, the procedure to be followed, and the 
        jurisdiction of the court shall be the same as is provided in 
        subsection (e) for an application to set aside or modify an 
        order.
Sec. 30320. Removal or suspension of, or prohibition of participation 
                    by, management officials
  (a) Removal.--
          (1) Notice of removal.--The Administrator may serve on a 
        management official a written notice of the Administrator's 
        intention to remove the management official if, in the opinion 
        of the Administrator--
                  (A) the management official--
                          (i) has willfully and knowingly committed a 
                        substantial violation of--
                                  (I) this subtitle (including a 
                                regulation issued under this subtitle); 
                                or
                                  (II) a cease and desist order that 
                                has become final; or
                          (ii) has willfully and knowingly committed or 
                        engaged in an act, omission, or practice that 
                        constitutes a substantial breach of a fiduciary 
                        duty of the management official as a management 
                        official; and
                  (B) the violation or breach of fiduciary duty is one 
                involving personal dishonesty on the part of the 
                management official.
          (2) Contents of notice.--A notice under paragraph (1) shall--
                  (A) contain a statement of the facts constituting 
                grounds for the notice; and
                  (B) establish a time and place at which a hearing 
                will be held on the proposed removal.
          (3) Hearing.--
                  (A) Timing.--A hearing on the notice shall be 
                established for a date not earlier than 30 days nor 
                later than 60 days after the date of service of the 
                notice under paragraph (2), unless an earlier or a 
                later date is set by the Administrator at the request 
                of--
                          (i) the management official, for good cause; 
                        or
                          (ii) the Attorney General.
                  (B) Consent.--Unless the management official appears 
                at a hearing under this paragraph in person or by an 
                authorized representative, the management official 
                shall be deemed to have consented to the issuance of an 
                order of removal under paragraph (4).
          (4) Issuance of order of removal.--
                  (A) In general.--In the event of consent under 
                paragraph (3)(B), or if on the record made at a hearing 
                under this subsection the Administrator finds that any 
                of the grounds specified in the notice of removal has 
                been established, the Administrator may issue such 
                orders of removal from office as the Administrator 
                considers appropriate.
                  (B) Effectiveness.--An order under subparagraph (A) 
                shall--
                          (i) become effective on the expiration of 30 
                        days after the date of service on the 
                        management official and the licensee (except in 
                        the case of an order issued on consent as 
                        described in paragraph (3)(B), which shall 
                        become effective at the time specified in the 
                        order); and
                          (ii) remain effective and enforceable, except 
                        to such extent as the order is stayed, 
                        modified, terminated, or set aside by action of 
                        the Administrator or a reviewing court in 
                        accordance with this section.
  (b) Suspension or Prohibition of Participation.--
          (1) In general.--The Administrator may, if the Administrator 
        considers it necessary for the protection of the licensee or 
        the interests of the Administration, suspend from office or 
        prohibit from further participation in any manner in the 
        management or conduct of the affairs of a licensee, or both, a 
        management official described in subsection (a)(1) by written 
        notice to that effect served on the management official and the 
        licensee.
          (2) Effectiveness.--A suspension or prohibition under 
        paragraph (1)--
                  (A) shall become effective on service of notice under 
                paragraph (1); and
                  (B) unless stayed by a court in proceedings under 
                paragraph (3), shall remain in effect--
                          (i) until completion of the administrative 
                        proceedings pursuant to a notice of intention 
                        to remove served under subsection (a); and
                          (ii) until such time as the Administrator 
                        dismisses the charges specified in the notice, 
                        or, if an order of removal or prohibition is 
                        issued against the management official, until 
                        the effective date of any such order.
          (3) Judicial review.--Not later than 10 days after a 
        management official is suspended from office or prohibited from 
        participation in the management or conduct of the affairs of a 
        licensee under paragraph (1), the management official may apply 
        to the United States district court for the judicial district 
        in which the principal place of business of the licensee is 
        located, or the United States District Court for the District 
        of Columbia, for a stay of the suspension or prohibition 
        pending the completion of the administrative proceedings 
        pursuant to a notice of intention to remove served on the 
        management official under subsection (a), and the court shall 
        have jurisdiction to stay the suspension or prohibition.
  (c) Suspension, or Prohibition of Participation, on Criminal 
Charges.--
          (1) In general.--If a management official is charged, in an 
        information, indictment, or complaint authorized by a United 
        States attorney, with the commission of or participation in a 
        felony involving dishonesty or breach of trust, the 
        Administrator may, by written notice served on the management 
        official, suspend the management official from office or 
        prohibit the management official from further participation in 
        any manner in the management or conduct of the affairs of the 
        licensee, or both.
          (2) Effectiveness.--A suspension or prohibition under 
        paragraph (1) shall remain in effect--
                  (A) until the subject information, indictment, or 
                complaint is finally disposed of; or
                  (B) until it is terminated by the Administrator.
          (3) Conviction.--If a judgment of conviction with respect to 
        an offense described in paragraph (1) is entered against a 
        management official, at such time as the judgment is not 
        subject to further appellate review, the Administrator may 
        issue and serve on the management official an order removing 
        the management official from office, which removal shall become 
        effective on service of a copy of the order on the licensee.
          (4) Dismissal or other disposition.--A finding of not guilty 
        or other disposition of charges described in paragraph (1) 
        shall not preclude the Administrator from thereafter 
        instituting proceedings to suspend or remove the management 
        official from office, or to prohibit the management official 
        from participation in the management or conduct of the affairs 
        of the licensee, or both, under subsection (a) or (b).
  (d) Procedure.--
          (1) Hearing venue.--A hearing under this section shall be--
                  (A) held in the Federal judicial district or in the 
                territory in which the principal office of the licensee 
                is located, unless the party afforded the hearing 
                consents to another place; and
                  (B) conducted in accordance with chapter 5 of title 
                5.
          (2) Issuance of orders.--After a hearing under this section, 
        and not later than 90 days after the Administrator notifies the 
        parties that the case has been submitted for final decision, 
        the Administrator shall--
                  (A) render a decision in the matter (which shall 
                include findings of fact on which the decision is 
                predicated); and
                  (B) serve on each party to the proceeding an order or 
                orders consistent with this section.
          (3) Modification of order.--The Administrator may modify, 
        terminate, or set aside an order issued under this section--
                  (A) at any time, on such notice, and in such manner 
                as the Administrator considers proper, unless a 
                petition for review is timely filed in a court of 
                appeals of the United States, as provided in paragraph 
                (4)(B), and thereafter until the record in the 
                proceeding has been filed in accordance with paragraph 
                (4)(C); and
                  (B) on such filing of the record, with permission of 
                the court.
          (4) Judicial review.--
                  (A) In general.--Judicial review of an order issued 
                under this section shall be exclusively as provided in 
                this subsection.
                  (B) Petition for review.--A party to a hearing under 
                this section may obtain a review of an order issued 
                under paragraph (2) (other than an order issued with 
                the consent of the management official concerned or an 
                order issued under subsection (c)) by filing in the 
                court of appeals of the United States for the circuit 
                in which the principal office of the licensee is 
                located, or in the United States Court of Appeals for 
                the District of Columbia Circuit, not later than 30 
                days after the date of service of the order, a written 
                petition praying that the order of the Administrator be 
                modified, terminated, or set aside.
                  (C) Notification to the administrator.--A copy of a 
                petition filed under subparagraph (B) shall be 
                forthwith transmitted by the clerk of the court to the 
                Administrator, and thereupon the Administrator shall 
                file in the court the record in the proceeding, as 
                provided in section 2112 of title 28.
                  (D) Court jurisdiction.--On the filing of a petition 
                under subparagraph (B)--
                          (i) the court shall have jurisdiction, which, 
                        on the filing of the record under subparagraph 
                        (C), shall be exclusive, to affirm, modify, 
                        terminate, or set aside, in whole or in part, 
                        the order of the Administrator;
                          (ii) review of the proceedings shall be had 
                        as provided in chapter 7 of title 5; and
                          (iii) the judgment and decree of the court 
                        shall be final, except that the judgment and 
                        decree shall be subject to review by the 
                        Supreme Court on certiorari as provided in 
                        section 1254 of title 28.
                  (E) Judicial review not a stay.--The commencement of 
                proceedings for judicial review under this paragraph 
                shall not, unless specifically ordered by the court, 
                operate as a stay of any order issued by the 
                Administrator under this section.
Sec. 30321. Direct civil enforcement actions
  (a) Forfeiture of rights, privileges, and franchises.--
          (1) In general.--If a licensee violates or fails to comply 
        with any provision of this subtitle (including a regulation 
        prescribed under this subtitle), all of the licensee's rights, 
        privileges, and franchises derived from this subtitle may be 
        forfeited.
          (2) Civil action.--Before a licensee is declared dissolved, 
        or its rights, privileges, and franchises forfeited, any 
        noncompliance with or violation of this subtitle shall be 
        determined by a court of the United States of competent 
        jurisdiction in a civil action brought in the district, 
        territory, or other place subject to the jurisdiction of the 
        United States in which the principal office of the licensee is 
        located. Any such civil action shall be brought by the United 
        States at the instance of the Administrator or the Attorney 
        General.
  (b) Injunctions and Other Orders.--
          (1) In general.--If a licensee or any other person engages or 
        is about to engage in an act or practice that constitutes or 
        will constitute a violation of any provision of this subtitle 
        (including a regulation under this subtitle) or of any order 
        issued under this subtitle, the Administrator may bring a civil 
        action in a district court of the United States or a United 
        States court of any place subject to the jurisdiction of the 
        United States for an order enjoining the act or practice, or 
        for an order enforcing compliance with the provision, 
        regulation, or order, and the court shall have jurisdiction 
        over the civil action and, on a showing by the Administrator 
        that the licensee or other person has engaged or is about to 
        engage in any such act or practice, a permanent or temporary 
        injunction, restraining order, or other order shall be granted 
        without bond.
          (2) Jurisdiction over licensee and assets of the licensee.--
        In a civil action under subsection (a), the court may, to such 
        extent as the court considers necessary, take exclusive 
        jurisdiction of the licensee and the assets of the licensee, 
        wherever located, and the court shall have jurisdiction to 
        appoint a trustee or receiver to hold or administer the assets 
        of the licensee under the direction of the court.
          (3) Trusteeship or receivership over licensee.--On request of 
        the Administrator, the court may appoint the Administrator to 
        act as trustee or receiver of the licensee unless the court 
        considers that such an appointment would be inequitable or 
        otherwise inappropriate by reason of special circumstances 
        involved in the civil action.
Sec. 30322. Jurisdiction; service of process
  A civil action or other proceeding brought under section 
30318(b)(4)(C), 30319, 30320, or 30321 of this title by the 
Administrator to enforce any liability or duty created by, or to enjoin 
any violation of, this subtitle, or any regulation or order promulgated 
under this subtitle shall be brought in the district in which the 
licensee maintains its principal office, and process in such cases may 
be served in any district in which the defendant maintains its 
principal office or transacts business, or wherever the defendant may 
be found.

        CHAPTER 305--NEW MARKETS VENTURE CAPITAL COMPANY PROGRAM

Sec.
30501.  Definitions.
30502.  Establishment of program.
30503.  Approval of new markets venture capital companies.
30504.  Guarantee of new markets venture capital company debentures.
30505.  Trust certificates.
30506.  Fees.
30507.  Operational assistance grants.
30508.  Bank participation.
30509.  Reporting requirement.
30510.  Regulations.
30511.  Unlawful acts and omissions.
30512.  Examinations.
30513.  Removal or suspension of directors or officers.
30514.  Direct civil enforcement actions.
Sec. 30501. Definitions
  In this chapter:
          (1) Developmental venture capital.--
                  (A) In general.--The term ``developmental venture 
                capital'' means capital in the form of an equity 
                capital investment in a smaller enterprise made with a 
                primary objective of fostering economic development in 
                a low-income geographic area.
                  (B) Equity capital.--In subparagraph (A), the term 
                ``equity capital'' has the meaning given the term in 
                section 30304(g)(1)(B) of this title.
          (2) Eligible company.--The term ``eligible company'' means a 
        company that--
                  (A) is a newly formed for-profit entity or a newly 
                formed for-profit subsidiary of an existing entity;
                  (B) has a management team with experience in 
                community development financing or relevant venture 
                capital financing; and
                  (C) has a primary objective of economic development 
                of one or more low-income geographic areas.
          (3) Low-income individual.--The term ``low-income 
        individual'' means an individual whose income (adjusted for 
        family size) does not exceed--
                  (A) in the case of an individual residing in a 
                metropolitan area, 80 percent of the median income of 
                all individuals residing in the metropolitan area; and
                  (B) in the case of an individual residing in a 
                nonmetropolitan area, the greater of--
                          (i) 80 percent of the median income of all 
                        individuals residing in the nonmetropolitan 
                        area; or
                          (ii) 80 percent of the median income of all 
                        individuals residing in all of the 
                        nonmetropolitan areas in the State in which the 
                        individual resides.
          (4) New markets venture capital company.--The term ``new 
        markets venture capital company'' means a company that--
                  (A) has been granted final approval by the 
                Administrator under section 30503(c) of this title; and
                  (B) has entered into a participation agreement with 
                the Administrator.
          (5) Operational assistance.--The term ``operational 
        assistance'' means management, marketing, and other technical 
        assistance that assists a smaller enterprise with business 
        development.
          (6) Participation agreement.--The term ``participation 
        agreement'' means a participation agreement under section 
        30503(b)(4)(D) of this title.
          (7) Program.--The term ``program'' means the new markets 
        venture capital company program.
          (8) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, American 
        Samoa, the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.
Sec. 30502. Establishment of program
  (a) In General.--The Administrator shall establish a developmental 
venture capital program to be known as the new markets venture capital 
company program--
          (1) with the purpose of promoting economic development and 
        creating wealth and job opportunities in low-income geographic 
        areas and among individuals living in low-income geographic 
        areas by encouraging developmental venture capital investments 
        in smaller enterprises primarily located in low-income 
        geographic areas; and
          (2) with the mission of addressing the unmet equity 
        investment needs of smaller enterprises located in low-income 
        geographic areas.
  (b) Activities.--Under the program, the Administrator may--
          (1) enter into participation agreements with new markets 
        venture capital companies under section 30503(b)(4)(D) of this 
        title for the purposes described in subsection (a);
          (2) guarantee debentures issued by new markets venture 
        capital companies under section 30504 of this title; and
          (3) make grants to new markets venture capital companies and 
        specialized small business investment companies under section 
        30507 of this title.
Sec. 30503. Approval of new markets venture capital companies
  (a) Application.--To participate in the program as a new markets 
venture capital company, an eligible company shall submit to the 
Administrator an application that includes--
          (1) a business plan describing how the applicant intends to 
        make successful developmental venture capital investments in 
        identified low-income geographic areas;
          (2) information regarding the community development finance 
        or relevant venture capital qualifications and general 
        reputation of the applicant's management;
          (3) a description of how the applicant intends to work with 
        community organizations and to seek to address the unmet 
        capital needs of the communities served;
          (4) a proposal describing how the applicant intends to use 
        the grant funds provided under this chapter to provide 
        operational assistance to smaller enterprises financed by the 
        applicant, including information regarding whether the 
        applicant intends to use licensed professionals, when 
        necessary, on the applicant's staff or from an outside entity;
          (5) with respect to binding commitments to be made to the 
        applicant under this chapter, an estimate of the ratio of cash 
        to in-kind contributions;
          (6) a description of the criteria to be used to evaluate 
        whether and to what extent the applicant meets the objectives 
        of the program;
          (7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the applicant's business plan; and
          (8) such other information as the Administrator may require.
  (b) Conditional Approval.--
          (1) In general.--From among eligible companies submitting 
        applications under subsection (a), the Administrator shall 
        conditionally approve applicants to participate in the program.
          (2) Selection criteria.--In conditionally approving eligible 
        companies under paragraph (1), the Administrator shall 
        consider--
                  (A) the likelihood that an applicant will meet the 
                goal of its business plan;
                  (B) the experience and background of an applicant's 
                management team;
                  (C) the need for developmental venture capital 
                investments in the geographic areas in which an 
                applicant intends to invest;
                  (D) the extent to which an applicant will concentrate 
                its activities on serving the geographic areas in which 
                the applicant intends to invest;
                  (E) the likelihood that an applicant will be able to 
                satisfy the conditions under paragraph (4);
                  (F) the extent to which the activities proposed by an 
                applicant will expand economic opportunities in the 
                geographic areas in which the applicant intends to 
                invest;
                  (G) the strength of the applicant's proposal to 
                provide operational assistance as the proposal relates 
                to the ability of the applicant to meet applicable cash 
                requirements and properly use in-kind contributions, 
                including the use of resources for the services of 
                licensed professionals, when necessary, whether 
                provided by employees or by contractors; and
                  (H) any other factor that the Administrator considers 
                appropriate.
          (3) Nationwide distribution.--The Administrator shall select 
        applicants under paragraph (1) in a manner that promotes 
        investment nationwide.
          (4) Requirements for final approval.--
                  (A) Specification of date.--On granting conditional 
                approval of an applicant, the Administrator shall 
                specify a date, not to exceed the date that is 2 years 
                after the date of conditional approval, by which the 
                conditionally approved applicant shall satisfy the 
                requirements stated in this paragraph.
                  (B) Capital requirement.--A conditionally approved 
                applicant shall raise not less than $5,000,000 of 
                private capital or binding capital commitments from one 
                or more investors (other than Federal agencies) that 
                meet criteria established by the Administrator.
                  (C) Nonadministration resources for operational 
                assistance.--
                          (i) In general.--To provide operational 
                        assistance to smaller enterprises expected to 
                        be financed by a conditionally approved 
                        applicant, the conditionally approved 
                        applicant--
                                  (I) shall have binding commitments 
                                (for contribution in cash or in kind)--
                                          (aa) from any sources other 
                                        than the Administrator that 
                                        meet criteria established by 
                                        the Administrator;
                                          (bb) payable or available 
                                        over a multiyear period that 
                                        the Administrator considers 
                                        appropriate (not to exceed 10 
                                        years); and
                                          (cc) in an amount that is not 
                                        less than 30 percent of the 
                                        total amount of capital and 
                                        commitments raised under 
                                        subparagraph (B);
                                  (II) shall have purchased from an 
                                insurance company acceptable to the 
                                Administrator, using funds (other than 
                                the funds raised under subparagraph 
                                (B)) from any source other than the 
                                Administrator, an annuity that yields 
                                cash payments over a multiyear period 
                                acceptable to the Administrator (not to 
                                exceed 10 years) in an amount that is 
                                not less than 30 percent of the total 
                                amount of capital and commitments 
                                raised under subparagraph (B); or
                                  (III) shall have binding commitments 
                                (for contributions in cash or in kind) 
                                of the type described in subclause (I) 
                                and shall have purchased an annuity of 
                                the type described in subclause (II), 
                                which in the aggregate make available, 
                                over a multiyear period acceptable to 
                                the Administrator (not to exceed 10 
                                years), an amount that is not less than 
                                30 percent of the total amount of 
                                capital and commitments raised under 
                                subparagraph (B).
                          (ii) Exception.--On a showing of special 
                        circumstances and good cause, the Administrator 
                        may consider an applicant to satisfy the 
                        requirements of clause (i) if the applicant 
                        has--
                                  (I) a viable plan that reasonably 
                                projects the capacity of the applicant 
                                to raise the amount (in cash or in-
                                kind) required under clause (i); and
                                  (II) binding commitments in an amount 
                                that is equal to not less than 20 
                                percent of the amount required under 
                                clause (i).
                          (iii) Limitation.--To comply with the 
                        requirements of clauses (i) and (ii), the 
                        amount of in-kind contributions made by a 
                        conditionally approved applicant shall not 
                        exceed 50 percent of the total contributions 
                        made by the conditionally approved applicant.
                  (D) Participation agreement.--A conditionally 
                approved applicant shall enter into a participation 
                agreement with the Administrator that--
                          (i) details the conditionally approved 
                        applicant's operating plan and investment 
                        criteria; and
                          (ii) requires the conditionally approved 
                        applicant, after final approval under 
                        subsection (c), to make investments in smaller 
                        enterprises at least 80 percent of which are 
                        located in low-income geographic areas.
  (c) Final Approval.--The Administrator shall--
          (1) grant final approval to a conditionally approved 
        applicant to operate as a new markets venture capital company 
        if the conditionally approved applicant satisfies the 
        requirements of paragraph (4) of subsection (b) on or before 
        the expiration of the date specified under subparagraph (A) of 
        that paragraph; or
          (2) if the conditionally approved applicant fails to satisfy 
        those requirements on or before the expiration of that date, 
        revoke the conditional approval granted under subsection (b).
Sec. 30504. Guarantee of new markets venture capital company debentures
  (a) In General.--To enable a new markets venture capital company to 
make developmental venture capital investments in smaller enterprises 
in a low-income geographic area, the Administrator may guarantee the 
timely payment of principal and interest, as scheduled, on debentures 
issued by the new markets venture capital company.
  (b) Terms and Conditions.--The Administrator may make a guarantee 
under this section on such terms and conditions as the Administrator 
considers appropriate, except that the term of any debenture guaranteed 
under this section shall not exceed 15 years.
  (c) Full faith and Credit of the United States.--The full faith and 
credit of the United States is pledged to pay all amounts that may be 
required to be paid under any guarantee under this chapter.
  (d) Maximum Amount of Guarantee.--
          (1) In general.--The Administrator may guarantee the 
        debentures issued by a new markets venture capital company only 
        to the extent that the total face amount of outstanding 
        guaranteed debentures of the new markets venture capital 
        company does not exceed 150 percent of the private capital of 
        the new markets venture capital company, as determined by the 
        Administrator.
          (2) Treatment of certain federal funds.--For purposes of 
        paragraph (1), private capital may include capital that is 
        considered to be Federal funds (within the meaning of section 
        30101(15)(C)(iii) of this title) if the capital is contributed 
        by an investor other than a Federal agency.
Sec. 30505. Trust certificates
  (a) Issuance.--
          (1) In general.--The Administrator, acting directly or 
        through an agent, may issue trust certificates representing 
        ownership of all or a fractional part of debentures issued by a 
        new markets venture capital company and guaranteed by the 
        Administrator under section 30504 of this title.
          (2) Trust or pool.--Trust certificates issued under paragraph 
        (1) shall be based on and backed by a trust or pool approved by 
        the Administrator and composed solely of guaranteed debentures.
  (b) Guarantee.--
          (1) In general.--The Administrator may, under such terms and 
        conditions as the Administrator considers appropriate, 
        guarantee the timely payment of the principal of and interest 
        on trust certificates issued by the Administrator or an agent 
        of the Administrator under this section.
          (2) Limitation.--A guarantee under this subsection shall be 
        limited to the extent of principal and interest on the 
        guaranteed debentures that compose the trust or pool.
          (3) Prepayment or default.--
                  (A) In general.--In the event that a debenture in a 
                trust or pool is prepaid, or in the event of default of 
                such a debenture, the guarantee of timely payment of 
                principal and interest on the trust certificates shall 
                be reduced in proportion to the amount of principal and 
                interest that the prepaid debenture represents in the 
                trust or pool.
                  (B) Interest period.--Interest on a prepaid or 
                defaulted debenture shall accrue and be guaranteed by 
                the Administrator only through the date of payment of 
                the guarantee.
                  (C) Call.--At any time during the term of a trust 
                certificate, a trust certificate may be called for 
                redemption due to prepayment or default of all 
                debentures that compose the trust or pool.
  (c) Full Faith and Credit of the United States.--The full faith and 
credit of the United States is pledged to pay all amounts that may be 
required to be paid under any guarantee of a trust certificate issued 
by the Administrator or an agent of the Administrator under this 
section.
  (d) Fees.--The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but an agent of 
the Administrator may collect a fee approved by the Administrator for 
the functions described in subsection (f)(2).
  (e) Subrogation and Ownership Rights.--
          (1) Subrogation.--If the Administrator pays a claim under a 
        guarantee issued under this section, the Administrator shall be 
        subrogated fully to the rights satisfied by the payment.
          (2) Ownership rights.--No Federal, State, or local law shall 
        preclude or limit the exercise by the Administrator of the 
        ownership rights of the Administrator in the debentures 
        residing in a trust or pool against which trust certificates 
        are issued under this section.
  (f) Management and Administration.--
          (1) Registration.--The Administrator may provide for a 
        central registration of all trust certificates issued under 
        this section.
          (2) Contracting of functions.--
                  (A) In general.--The Administrator may contract with 
                one or more agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions provided for in this section including, 
                notwithstanding any other provision of law--
                          (i) maintenance, on behalf of and under the 
                        direction of the Administrator, of such 
                        commercial bank accounts or investments in 
                        obligations of the United States as may be 
                        necessary to facilitate the creation of trusts 
                        or pools backed by debentures guaranteed under 
                        section 30504 of this title; and
                          (ii) the issuance of trust certificates to 
                        facilitate the creation of such trusts or 
                        pools.
                  (B) Fidelity bond or insurance requirement.--An agent 
                performing functions on behalf of the Administrator 
                under this paragraph shall provide a fidelity bond or 
                insurance in such amounts as the Administrator 
                determines to be necessary to fully protect the 
                interests of the United States.
          (3) Regulation of brokers and dealers.--The Administrator may 
        regulate brokers and dealers in trust certificates issued under 
        this section.
          (4) Form of registration.--This subsection does not preclude 
        the use of a book-entry or other electronic form of 
        registration for trust certificates issued under this section.
Sec. 30506. Fees
  Except as provided in section 30505(d) of this title, the 
Administrator may charge such fees as the Administrator considers 
appropriate with respect to any guarantee or grant issued under this 
chapter.
Sec. 30507. Operational assistance grants
  (a) In General.--
          (1) Authority.--The Administrator may make a grant to a new 
        markets venture capital company or specialized small business 
        investment company to enable the new markets venture capital 
        company or specialized small business investment company to 
        provide operational assistance to smaller enterprises financed, 
        or expected to be financed, by the new markets venture capital 
        company or specialized small business investment company.
          (2) Terms.--A grant under this subsection shall be made over 
        a multiyear period not to exceed 10 years, under such other 
        terms as the Administrator may require.
          (3) Specialized small business investment companies.--
                  (A) Submission of plan.--A specialized small business 
                investment company shall be eligible for a grant under 
                this section only if the specialized small business 
                investment company submits to the Administrator, in 
                such form and manner as the Administrator may require, 
                a plan for use of the grant.
                  (B) Use of funds.--The proceeds of a grant made to a 
                specialized small business investment company under 
                this subsection shall be used by the specialized small 
                business investment company only to provide operational 
                assistance in connection with an equity investment made 
                with capital raised after December 21, 2000, in a 
                smaller enterprise located in a low-income geographic 
                area.
          (4) Grant amount.--
                  (A) New markets venture capital companies.--The 
                amount of a grant made under this subsection to a new 
                markets venture capital company shall be equal to the 
                amount of resources (in cash or in kind) raised by the 
                new markets venture capital company under section 
                30503(b)(4)(B) of this title.
                  (B) Specialized small business investment 
                companies.--The amount of a grant made under this 
                subsection to a specialized small business investment 
                company shall be equal to the resources (in cash or in 
                kind) raised by the entity in accordance with the 
                requirements applicable to new markets venture capital 
                companies under section 305053(b)(4)(C) of this title.
          (5) Pro rata reductions.--If the amount made available to 
        carry out this section is insufficient for the Administrator to 
        provide grants in the amounts provided for in paragraph (4), 
        the Administrator shall make pro rata reductions in the amounts 
        otherwise payable to each new markets venture capital company 
        and specialized small business investment company under that 
        paragraph.
  (b) Supplemental Grants.--
          (1) In general.--The Administrator may make a supplemental 
        grant to a new markets venture capital company or specialized 
        small business investment company under such terms as the 
        Administrator may require, to provide additional operational 
        assistance to smaller enterprises financed, or expected to be 
        financed, by the new markets venture capital company or 
        specialized small business investment company.
          (2) Matching requirement.--The Administrator may require, as 
        a condition of a supplemental grant under this subsection, that 
        the new markets venture capital company or specialized small 
        business investment company receiving the grant provide from 
        resources (in cash or in kind), other than those provided by 
        the Administrator, a matching contribution equal to the amount 
        of the supplemental grant.
  (c) Limitation.--None of the assistance made available under this 
section may be used for any overhead or general and administrative 
expense of a new markets venture capital company or a specialized small 
business investment company.
Sec. 30508. Bank participation
  (a) In General.--Except as provided in subsection (b), a national 
bank, a member bank of the Federal Reserve System, and (to the extent 
permitted under applicable State law) an insured bank that is not a 
member of the Federal Reserve System may invest in a new markets 
venture capital company or in an entity established to invest solely in 
new markets venture capital companies.
  (b) Limitation.--A bank described in subsection (a) shall not make 
investments described in that subsection in a total amount that is 
greater than 5 percent of the capital and surplus of the bank.
Sec. 30509. Reporting requirement
  A new markets venture capital company that participates in the 
program shall provide the Administrator such information as the 
Administrator may require, including--
          (1) information relating to the measurement criteria that the 
        new markets venture capital company proposed in its program 
        application; and
          (2) in each case in which the new markets venture capital 
        company makes, under this chapter, an investment in, or a loan 
        or grant to, a business that is not located in a low-income 
        geographic area, a report on the number and percentage of 
        employees of the business who reside in a low-income geographic 
        area.
Sec. 30510. Regulations
  The Administrator may issue such regulations as the Administrator 
considers necessary to carry out this chapter.
Sec. 30511. Unlawful acts and omissions
  (a) Persons Deemed To Commit Violation.--If a new markets venture 
capital company violates any provision of this subtitle (including a 
regulation issued under this subtitle) or of a participation agreement 
by reason of the new markets venture capital company's failure to 
comply with terms of this subtitle (including a regulation) or of the 
participation agreement, or by reason of the new markets venture 
capital company's engaging in any act or practice that constitutes or 
will constitute a violation of this subtitle (including a regulation) 
or of the participation agreement, the violation shall also be deemed 
to be a violation and an unlawful act committed by any person that, 
directly or indirectly, authorizes, orders, participates in, causes, 
brings about, counsels, aids, or abets in the commission of the act, 
practice, or transaction that constitutes or will constitute, in whole 
or in part, the violation.
  (b) Breach of Fiduciary Duty.--It shall be unlawful for an officer, 
director, employee, agent, or other participant in the management or 
conduct of the affairs of a new markets venture capital company to 
engage in any act or practice, or to omit any act or practice, in 
breach of the person's fiduciary duty as officer, director, employee, 
agent, or participant if, as a result of the act, practice, or 
omission, the new markets venture capital company suffers or is in 
imminent danger of suffering financial loss or other damage.
  (c) Other Unlawful Acts.--Except with the written consent of the 
Administrator, it shall be unlawful--
          (1) for any person to take office as an officer, director, or 
        employee of a new markets venture capital company, or to become 
        an agent or participant in the conduct of the affairs or 
        management of a new markets venture capital company, if the 
        person--
                  (A) has been convicted of--
                          (i) a felony; or
                          (ii) any other criminal offense involving 
                        dishonesty or breach of trust; or
                  (B) has been found civilly liable in damages, or has 
                been permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust; or
          (2) for any person to continue to serve in any of the 
        capacities described in paragraph (1), if--
                  (A) the person is convicted of--
                          (i) a felony; or
                          (ii) any other criminal offense involving 
                        dishonesty or breach of trust; or
                  (B) the person is found civilly liable in damages, or 
                is permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice 
                involving fraud or breach of trust.
Sec. 30512. Examinations
  (a) In General.--A new markets venture capital company that 
participates in the program shall be subject to examinations made at 
the direction of the Investment Division of the Administration in 
accordance with this section and modeled after oversight developed for 
the small business investment company program.
  (b) Assistance of Private Sector Entities.--An examination under this 
section may be conducted with the assistance of a private sector entity 
that has both the qualifications and the expertise necessary to conduct 
such an examination.
  (c) Costs.--
          (1) In general.--The Administrator may assess the cost of an 
        examination under this section (including compensation of an 
        examiner) against the new markets venture capital company 
        examined.
          (2) Payment.--A new markets venture capital company against 
        which the Administrator assesses costs under this paragraph 
        shall pay the costs.
  (d) Deposit of Amounts.--Amounts collected under this section shall 
be deposited in the account for salaries and expenses of the 
Administration.
Sec. 30513. Removal or suspension of directors or officers
  Using the procedures for removing or suspending a director or an 
officer of a licensee under section 30320 of this title (to the extent 
that those procedures are not inconsistent with the requirements of 
this chapter), the Administrator may remove or suspend a director or 
officer of a new markets venture capital company.
Sec. 30514. Direct civil enforcement actions
  (a) Forfeiture of rights and privileges.--
          (1) In general.--With respect to a new markets venture 
        capital company that violates or fails to comply with any of 
        the provisions of this subtitle (including a regulation issued 
        under this subtitle) or of any participation agreement, the 
        Administrator may--
                  (A) void the participation agreement between the 
                Administrator and the new markets venture capital 
                company; and
                  (B) cause the new markets venture capital company to 
                forfeit all of the rights and privileges derived by the 
                new markets venture capital company from this subtitle.
          (2) Adjudication of noncompliance.--
                  (A) In general.--Before the Administrator may cause a 
                new markets venture capital company to forfeit rights 
                or privileges under paragraph (1), a court of the 
                United States of competent jurisdiction shall find that 
                the new markets venture capital company committed a 
                violation, or failed to comply, in a civil action 
                brought for that purpose in the district, territory, or 
                other place subject to the jurisdiction of the United 
                States in which the principal office of the new markets 
                venture capital company is located.
                  (B) Parties authorized to bring civil action.--A 
                civil action brought by the United States under this 
                subsection shall be brought by the Administrator or by 
                the Attorney General.
  (b) Injunctions and other orders.--
          (1) In general.--If a new markets venture capital company or 
        any other person engages or is about to engage in an act or 
        practice that constitutes or will constitute a violation of any 
        provision of this subtitle (including a regulation under this 
        subtitle) or of any order issued under this subtitle, the 
        Administrator may bring a civil action in a district court of 
        the United States or a United States court of any place subject 
        to the jurisdiction of the United States for an order enjoining 
        the act or practice, or for an order enforcing compliance with 
        the provision, regulation, or order, and the court shall have 
        jurisdiction over the civil action and, on a showing by the 
        Administrator that the new markets venture capital company or 
        other person has engaged or is about to engage in any such act 
        or practice, a permanent or temporary injunction, restraining 
        order, or other order shall be granted without bond.
          (2) Jurisdiction over new markets venture capital company and 
        its assets.--In a civil action under paragraph (1), the court 
        may, to such extent as the court considers necessary, take 
        exclusive jurisdiction of the new markets venture capital 
        company and the assets of the new markets venture capital 
        company, wherever located, and the court shall have 
        jurisdiction to appoint a trustee or receiver to hold or 
        administer the assets of the new markets venture capital 
        company under the direction of the court.
          (3) Trusteeship or receivership over new markets venture 
        capital company.--On request of the Administrator, the court 
        may appoint the Administrator to act as trustee or receiver of 
        the new markets venture capital company unless the court 
        considers that such an appointment would be inequitable or 
        otherwise inappropriate by reason of special circumstances 
        involved in the civil action.

      CHAPTER 307--RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM

Sec.
30701.  Definitions.
30702.  Establishment of program.
30703.  Approval of renewable fuel capital investment companies.
30704.  Guarantee of renewable fuel capital investment company 
          debentures.
30705.  Trust certificates.
30706.  Fees.
30707.  Operational assistance grants.
30708.  Bank participation.
30709.  Reporting requirement.
30710.  Regulations.
30711.  Examinations.
30712.  Conflicts of interest; unlawful acts and omissions by officers, 
          directors, employees, and agents; revocation and suspensions 
          of licenses; cease and desist orders; injunctions and other 
          orders.
30713.  Removal or suspension of directors or officers.
30714.  Termination.
Sec. 30701. Definitions
  In this chapter:
          (1) Eligible company.--The term ``eligible company'' means a 
        company that--
                  (A) is a newly formed for-profit entity or a newly 
                formed for-profit subsidiary of an existing entity;
                  (B) has a management team with experience in 
                alternative energy financing or relevant venture 
                capital financing; and
                  (C) has a primary objective of investment in smaller 
                enterprises that research, manufacture, develop, 
                produce, or bring to market goods, products, or 
                services that generate or support the production of 
                renewable energy.
          (2) Operational assistance.--The term ``operational 
        assistance'' means management, marketing, and other technical 
        assistance that assists a smaller enterprise with business 
        development.
          (3) Participation agreement.--The term ``participation 
        agreement'' means a participation agreement under section 
        30703(b)(4)(D) of this title.
          (4) Program.--The term ``program'' means the renewable fuel 
        capital investment pilot program.
          (5) Renewable energy.--The term `renewable energy' means 
        energy derived from resources that are regenerative or that 
        cannot be depleted, including solar, wind, ethanol, and 
        biodiesel fuels.
          (6) Renewable fuel capital investment company.--The term 
        ``renewable fuel capital investment company'' means a company--
                  (A) that--
                          (i) has been granted final approval by the 
                        Administrator under section 30703(e) of this 
                        title; and
                          (ii) has entered into a participation 
                        agreement with the Administrator; or
                  (B) that has received conditional approval under 
                section 30703(b) of this title.
          (7) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, American 
        Samoa, the Northern Mariana Islands, and any other 
        commonwealth, territory, or possession of the United States.
          (8) Venture capital.--The term ``venture capital'' means 
        capital in the form of equity capital (as defined in section 
        30304(g)(1)(B) of this title) investments.
Sec. 30702. Establishment of program
  (a) In General.--The Administrator shall establish a renewable fuel 
capital investment program--
          (1) with the purpose of promoting the research, development, 
        manufacture, production, and bringing to market of goods, 
        products, or services that generate or support the production 
        of renewable energy by encouraging venture capital investments 
        in smaller enterprises primarily engaged such activities; and
          (2) with the mission of addressing the unmet equity 
        investment needs of smaller enterprises engaged in researching, 
        developing, manufacturing, producing, and bringing to market 
        goods, products, or services that generate or support the 
        production of renewable energy.
  (b) Activities.--Under the program, the Administrator may--
          (1) enter into participation agreements with renewable fuel 
        capital investment companies under section 30703(b)(4)(D) of 
        this title for the purposes described in subsection (a);
          (2) guarantee debentures issued by renewable fuel capital 
        investment companies under section 30704 of this title; and
          (3) make grants to renewable fuel investment capital 
        companies under section 30707 of this title.
Sec. 30703. Approval of renewable fuel capital investment companies
  (a) Application.--An eligible company desiring to be designated as a 
renewable fuel capital investment company shall submit to the 
Administrator an application that includes--
          (1) a business plan describing how the applicant intends to 
        make successful venture capital investments in smaller 
        enterprises primarily engaged in the research, manufacture, 
        development, production, or bringing to market of goods, 
        products, or services that generate or support the production 
        of renewable energy;
          (2) information regarding the relevant venture capital 
        qualifications and general reputation of the applicant's 
        management;
          (3) a description of how the applicant intends to seek to 
        address the unmet capital needs of the smaller enterprises 
        served;
          (4) a proposal describing how the applicant intends to use 
        the grant funds provided under this chapter to provide 
        operational assistance to smaller enterprises financed by the 
        applicant, including information regarding whether the 
        applicant has employees with appropriate professional licenses 
        or will contract with another entity when the services of such 
        an individual are necessary;
          (5) with respect to binding commitments to be made to the 
        applicant under this chapter, an estimate of the ratio of cash 
        to in-kind contributions;
          (6) a description of whether and to what extent the applicant 
        meets the criteria under subsection (b)(2) and the objectives 
        of the program;
          (7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the applicant's business plan; and
          (8) such other information as the Administrator may require.
  (b) Conditional Approval.--
          (1) In general.--From among eligible companies submitting 
        applications under subsection (a), the Administrator shall 
        conditionally approve applicants to operate as renewable fuel 
        capital investment companies.
          (2) Selection criteria.--In conditionally approving companies 
        under paragraph (1), the Administrator shall consider--
                  (A) the likelihood that an applicant will meet the 
                goal of its business plan;
                  (B) the experience and background of an applicant's 
                management team;
                  (C) the need for venture capital investments in the 
                geographic areas in which an applicant intends to 
                invest;
                  (D) the extent to which an applicant will concentrate 
                its activities on serving the geographic areas in which 
                the applicant intends to invest;
                  (E) the likelihood that an applicant will be able to 
                satisfy the conditions under paragraph (4);
                  (F) the extent to which the activities proposed by 
                the applicant will expand economic opportunities in the 
                geographic areas in which the company intends to 
                invest;
                  (G) the strength of the applicant's proposal to 
                provide operational assistance as the proposal relates 
                to the ability of the applicant to meet applicable cash 
                requirements and properly use in-kind contributions, 
                including the use of resources for the services of 
                licensed professionals, when necessary, whether 
                provided by employees or by contractors; and
                  (H) any other factor that the Administrator considers 
                appropriate.
          (3) Nationwide distribution.--From among eligible companies 
        submitting applications under subsection (a), the Administrator 
        shall consider the selection criteria under paragraph (2) and 
        shall, to the maximum extent practicable, approve at least one 
        applicant from each geographic region of the Administration.
          (4) Requirements for final approval.--
                  (A) In general.--On granting conditional approval of 
                an applicant, the Administrator shall grant each 
                conditionally approved applicant 2 years to satisfy the 
                requirements stated in this paragraph.
                  (B) Capital requirement.--A conditionally approved 
                applicant shall raise not less than $3,000,000 of 
                private capital or binding capital commitments from one 
                or more investors (other than Federal agencies) that 
                meet criteria established by the Administrator.
                  (C) Nonadministration resources for operational 
                assistance.--
                          (i) In general.--To provide operational 
                        assistance to smaller enterprises expected to 
                        be financed by the applicant, a conditionally 
                        approved applicant shall have binding 
                        commitments (for contribution in cash or in-
                        kind)--
                                  (I) from any source other than the 
                                Administrator that meet criteria 
                                established by the Administrator; and
                                  (II) payable or available over a 
                                multiyear period that the Administrator 
                                considers appropriate (not to exceed 10 
                                years).
                          (ii) Exception.--On a showing of special 
                        circumstances and good cause, the Administrator 
                        may consider an applicant to satisfy the 
                        requirements of clause (i) if the applicant 
                        has--
                                  (I) a viable plan that reasonably 
                                projects the capacity of the applicant 
                                to raise the amount (in cash or in-
                                kind) required under clause (i); and
                                  (II) binding commitments in an amount 
                                that is equal to not less than 20 
                                percent of the amount required under 
                                clause (i).
                          (iii) Limitation.--To comply with the 
                        requirements of clauses (i) and (ii), the 
                        amount of in-kind contributions made by a 
                        conditionally approved applicant shall not 
                        exceed 50 percent of the total contributions 
                        made by the conditionally approved applicant.
                  (D) Participation agreement.--A conditionally 
                approved applicant shall enter into a participation 
                agreement with the Administrator that--
                          (i) details the conditionally approved 
                        applicant's operating plan and investment 
                        criteria; and
                          (ii) requires the conditionally approved 
                        applicant, after final approval under 
                        subsection (c), to make investments in smaller 
                        enterprises primarily engaged in researching, 
                        manufacturing, developing, producing, or 
                        bringing to market goods, products, or services 
                        that generate or support the production of 
                        renewable energy.
  (c) Final Approval.--The Administrator shall, with respect to each 
applicant conditionally approved under subsection (c)--
          (1) grant final approval to the conditionally approved 
        applicant to operate as a renewable fuel capital investment 
        company if the conditionally approved applicant satisfies the 
        requirements of paragraph (4) of subsection (b) on or before 
        the expiration of the time period described in that subsection; 
        or
          (2) if the conditionally approved applicant fails to satisfy 
        those requirements on or before the expiration of that time 
        period, revoke the conditional approval granted under 
        subsection (b).
Sec. 30704. Guarantee of renewable fuel capital investment company 
                    debentures
  (a) In General.--To enable a renewable fuel capital investment 
company to make venture capital investments in smaller enterprises 
engaged in the research, development, manufacture, production, and 
bringing to market of goods, products, or services that generate or 
support the production of renewable energy, the Administrator may 
guarantee the timely payment of principal and interest, as scheduled, 
on debentures issued by the renewable fuel capital investment company.
  (b) Terms and Conditions.--The Administrator may make a guarantee 
under this section on such terms and conditions as the Administrator 
considers appropriate, except that--
          (1) the term of any debenture guaranteed under this section 
        shall not exceed 15 years; and
          (2) a debenture guaranteed under this section--
                  (A) shall carry no front-end or annual fees;
                  (B) shall be issued at a discount;
                  (C) shall require no interest payments during the 5-
                year period beginning on the date on which the 
                debenture is issued;
                  (D) shall be prepayable without penalty after the end 
                of the one-year period beginning on the date on which 
                the debenture is issued; and
                  (E) shall require semiannual interest payments after 
                the period described in subparagraph (C).
  (c) Full Faith and Credit of the United States.--The full faith and 
credit of the United States is pledged to pay all amounts that may be 
required to be paid under any guarantee under this chapter.
  (d) Maximum Amount of Guarantee.--
          (1) In general.--The Administrator may guarantee the 
        debentures issued by a renewable fuel capital investment 
        company only to the extent that the total face amount of 
        outstanding guaranteed debentures of the renewable fuel capital 
        investment company does not exceed 150 percent of the private 
        capital of the renewable fuel capital investment company, as 
        determined by the Administrator.
          (2) Treatment of certain federal funds.--For purposes of 
        paragraph (1), private capital may include capital that is 
        considered to be Federal funds (within the meaning of section 
        30101(15)(C)(iii) of this title) if the capital is contributed 
        by an investor other than a Federal agency.
Sec. 30705. Trust certificates
  (a) Issuance.--
          (1) In general.--The Administrator, acting directly or 
        through an agent, may issue trust certificates representing 
        ownership of all or a fractional part of debentures issued by a 
        renewable fuel capital investment company and guaranteed by the 
        Administrator under section 30704 of this title.
          (2) Trust or pool.--Trust certificates issued under paragraph 
        (1) shall be based on and backed by a trust or pool approved by 
        the Administrator and composed solely of guaranteed debentures.
  (b) Guarantee.--
          (1) In general.--The Administrator may, under such terms and 
        conditions as the Administrator considers appropriate, 
        guarantee the timely payment of the principal of and interest 
        on trust certificates issued by the Administrator or an agent 
        of the Administrator under this section.
          (2) Limitation.--A guarantee under this subsection shall be 
        limited to the extent of principal and interest on the 
        guaranteed debentures that compose the trust or pool.
          (3) Prepayment or default.--
                  (A) In general.--In the event that a debenture in a 
                trust or pool is prepaid, or in the event of default of 
                such a debenture, the guarantee of timely payment of 
                principal and interest on the trust certificates shall 
                be reduced in proportion to the amount of principal and 
                interest that the prepaid debenture represents in the 
                trust or pool.
                  (B) Interest period.--Interest on a prepaid or 
                defaulted debenture shall accrue and be guaranteed by 
                the Administrator only through the date of payment of 
                the guarantee.
                  (C) Call.--At any time during the term of a trust 
                certificate, a trust certificate may be called for 
                redemption due to prepayment or default of all 
                debentures that compose the trust or pool.
  (c) Full Faith and Credit of the United States.--The full faith and 
credit of the United States is pledged to pay all amounts that may be 
required to be paid under any guarantee of a trust certificate issued 
by the Administrator or an agent of the Administrator under this 
section.
  (d) Fees.--The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but an agent of 
the Administrator may collect a fee approved by the Administrator for 
the functions described in subsection (f)(2).
  (e) Subrogation and Ownership Rights.--
          (1) Subrogation.--If the Administrator pays a claim under a 
        guarantee issued under this section, the Administrator shall be 
        subrogated fully to the rights satisfied by the payment.
          (2) Ownership rights.--No Federal, State, or local law shall 
        preclude or limit the exercise by the Administrator of the 
        ownership rights of the Administrator in the debentures 
        residing in a trust or pool against which trust certificates 
        are issued under this section.
  (f) Management and Administration.--
          (1) Registration.--The Administrator may provide for a 
        central registration of all trust certificates issued under 
        this section.
          (2) Contracting of functions.--
                  (A) In general.--The Administrator may contract with 
                one or more agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions provided for in this section including, 
                notwithstanding any other provision of law--
                          (i) maintenance, on behalf of and under the 
                        direction of the Administrator, of such 
                        commercial bank accounts or investments in 
                        obligations of the United States as may be 
                        necessary to facilitate the creation of trusts 
                        or pools backed by debentures guaranteed under 
                        section 30704 of this title; and
                          (ii) the issuance of trust certificates to 
                        facilitate the creation of such trusts or 
                        pools.
                  (B) Fidelity bond or insurance requirement.--An agent 
                performing functions on behalf of the Administrator 
                under this paragraph shall provide a fidelity bond or 
                insurance in such amounts as the Administrator 
                determines to be necessary to fully protect the 
                interests of the United States.
          (3) Regulation of brokers and dealers.--The Administrator may 
        regulate brokers and dealers in trust certificates issued under 
        this section.
          (4) Form of registration.--This subsection does not preclude 
        the use of a book-entry or other electronic form of 
        registration for trust certificates issued under this section.
Sec. 30706. Fees
  (a) In General.--Except as provided in section 30705(d) of this 
title, the Administrator may charge such fees as the Administrator 
considers appropriate with respect to any guarantee or grant issued 
under this chapter, in an amount established annually by the 
Administrator, as necessary to reduce to zero the cost (as defined in 
section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
to the Administrator of purchasing and guaranteeing debentures under 
this chapter, which amounts shall be paid to and retained by the 
Administrator.
  (b) Offset.--The Administrator may, as provided by subsection (c), 
offset fees charged and collected under subsection (a).
  (c) Fee Contribution.--
          (1) In general.--To the extent that amounts are made 
        available to the Administrator for the purpose of fee 
        contributions, the Administrator shall contribute to fees paid 
        by the renewable fuel capital investment companies under 
        subsection (a).
          (2) Annual adjustment.--Each fee contribution under paragraph 
        (1) shall be effective for one fiscal year and shall be 
        adjusted as necessary for each fiscal year thereafter to ensure 
        that amounts under paragraph (1) are fully used. The fee 
        contribution for a fiscal year shall be based on the 
        outstanding commitments made and the guarantees and grants that 
        the Administrator projects will be made during the fiscal year, 
        given the program level authorized by law for that fiscal year 
        and any other factors that the Administrator considers 
        appropriate.
Sec. 30707. Operational assistance grants
  (a) In General.--
          (1) Authority.--The Administrator may make a grant to a 
        renewable fuel capital investment company to enable the 
        renewable fuel capital investment company to provide 
        operational assistance to smaller enterprises financed, or 
        expected to be financed, by the renewable fuel capital 
        investment company.
          (2) Terms.--A grant under this subsection shall be made over 
        a multiyear period not to exceed 10 years, under such other 
        terms as the Administrator may require.
          (3) Grant amount.--The amount of a grant made under this 
        subsection to a renewable fuel capital investment company shall 
        be equal to the lesser of--
                  (A) 10 percent of the resources (in cash or in kind) 
                raised by the renewable fuel capital investment company 
                under section 30703(b)(4)(B) of this title; or
                  (B) $1,000,000.
          (4) Pro rata reductions.--If the amount made available to 
        carry out this section is insufficient for the Administrator to 
        provide grants in the amounts provided for in paragraph (3), 
        the Administrator shall make pro rata reductions in the amounts 
        otherwise payable to each renewable fuel capital investment 
        company under that paragraph.
          (5) Grants to conditionally approved companies.--
                  (A) In general.--Subject to subparagraphs (B) and 
                (C), on the request of a renewable fuel capital 
                investment company conditionally approved under section 
                30703(b) of this title, the Administrator shall make a 
                grant to the renewable fuel capital investment company 
                under this subsection.
                  (B) Repayment by renewable fuel capital investment 
                companies not finally approved.--If a renewable fuel 
                capital investment company receives a grant under this 
                paragraph and does not enter into a participation 
                agreement for final approval, the renewable fuel 
                capital investment company shall, subject to 
                controlling Federal law, repay the amount of the grant 
                to the Administrator.
                  (C) Deduction of grant to approved company.--If a 
                renewable fuel capital investment company receives a 
                grant under this paragraph and receives final approval 
                under section 30703(c) of this title, the Administrator 
                shall deduct the amount of the grant from the total 
                grant amount that the renewable fuel capital investment 
                company receives for operational assistance.
                  (D) Amount of grant.--No renewable fuel capital 
                investment company may receive a grant of more than 
                $100,000 under this paragraph.
  (b) Supplemental Grants.--
          (1) In general.--The Administrator may make a supplemental 
        grant to a renewable fuel capital investment company under such 
        terms as the Administrator may require, to provide additional 
        operational assistance to smaller enterprises financed, or 
        expected to be financed, by the renewable fuel capital 
        investment company.
          (2) Matching requirement.--The Administrator may require, as 
        a condition of a supplemental grant under this subsection, that 
        the renewable fuel capital investment company receiving the 
        grant provide from resources (in cash or in kind), other than 
        those provided by the Administrator, a matching contribution 
        equal to the amount of the supplemental grant.
  (c) Limitation.--None of the assistance made available under this 
section may be used for any overhead or general and administrative 
expense of a renewable fuel capital investment company.
Sec. 30708. Bank participation
  (a) In General.--Except as provided in subsection (b), a national 
bank, a member bank of the Federal Reserve System, and (to the extent 
permitted under applicable State law) an insured bank that is not a 
member of the Federal Reserve System may invest in any renewable fuel 
capital investment company or in any entity established to invest 
solely in renewable fuel capital investment companies.
  (b) Limitation.--A bank described in subsection (a) shall not make 
investments described in that subsection in a total amount that is 
greater than 5 percent of the capital and surplus of the bank.
Sec. 30709. Reporting requirement
  A renewable fuel capital investment company that participates in the 
program shall provide the Administrator such information as the 
Administrator may require, including--
          (1) information relating to the measurement criteria that the 
        renewable fuel capital investment company proposed in its 
        program application; and
          (2) in each case in which the renewable fuel capital 
        investment company makes, under this chapter, an investment in, 
        or a loan or a grant to, a business that is not primarily 
        engaged in the research, development, manufacture, or bringing 
        to market or renewable energy sources, a report on the nature, 
        origin, and revenues of the business in which investments are 
        made.
Sec. 30710. Regulations
  The Administrator may issue such regulations as the Administrator 
considers necessary to carry out this chapter.
Sec. 30711. Examinations
  (a) In General.--A renewable fuel capital investment company that 
participates in the program shall be subject to examinations made at 
the direction of the Investment Division of the Administration in 
accordance with this section and modeled after oversight developed for 
the small business investment company program.
  (b) Assistance of Private Sector Entities.--An examination under this 
section may be conducted with the assistance of a private sector entity 
that has both the qualifications and the expertise necessary to conduct 
such an examination.
  (c) Costs.--
          (1) In general.--The Administrator may assess the cost of an 
        examination under this section (including compensation of an 
        examiner) against the renewable fuel capital investment company 
        examined.
          (2) Payment.--A renewable fuel capital investment company 
        against which the Administrator assesses costs under this 
        paragraph shall pay the costs.
  (d) Deposit of Amounts.--Amounts collected under this section shall 
be deposited in the account for salaries and expenses of the 
Administration.
Sec. 30712. Conflicts of interest; unlawful acts and omissions; 
                    revocation and suspensions of licenses; cease and 
                    desist orders; injunctions and other orders
  (a) Actions and procedures Under Other Provisions.--To the extent 
that the actions and procedures described in sections 30313, 30317, 
30319, and 30321(b) of this title are not inconsistent with the 
requirements of this chapter, the Administrator may take those actions 
under those procedures in carrying out this chapter.
  (b) Applicability of Requirements Under Other Provisions.--To the 
extent that the requirements described in sections 30313, 30317, 30319, 
and 30321(b) of this title are not inconsistent with the requirements 
of this chapter, an officer, director, employee, agent, or other 
participant in the management or conduct of the affairs of a renewable 
fuel capital investment company shall be subject to the requirements of 
sections 30313, 30317, 30319, and 30321(b) of this title.
Sec. 30713. Removal or suspension of directors or officers
  Using the procedures for removing or suspending a director or an 
officer of a licensee under section 30320 of this title (to the extent 
that those procedures are not inconsistent with the requirements of 
this chapter), the Administrator may remove or suspend a director or 
officer of a renewable fuel capital investment company.
Sec. 30714. Termination
  The program shall terminate at the end of the second full fiscal year 
after the date on which the Administrator establishes the program.

               DIVISION C--SURETY BOND GUARANTEE PROGRAM

               CHAPTER 321--SURETY BOND GUARANTEE PROGRAM

Sec.
32101.  Definitions.
32102.  Surety bond guarantees and indemnification agreements.
32103.  Surety bond guarantee fund.
Sec. 32101. Definitions
  In this chapter:
          (1) Bid bond.--The term ``bid bond'' means a bond conditioned 
        on the bidder on a contract--
                  (A) entering into the contract, if the bidder 
                receives the award of the contract; and
                  (B) furnishing the prescribed payment bond and 
                performance bond.
          (2) Bond.--Except in paragraphs (1), (7), and (8), the term 
        ``bond'' means--
                  (A) a bid bond;
                  (B) a payment bond;
                  (C) a performance bond; and
                  (D) a bond that is ancillary to a bid bond, payment 
                bond, or performance bond.
          (3) Guarantee.--The term ``guarantee'' means a guarantee of a 
        bond issued under section 32102(a) of this title.
          (4) Indemnification agreement.--The term ``indemnification 
        agreement'' means an agreement entered into between the 
        Administrator and a participating surety under section 32102(b) 
        of this title.
          (5) Obligee.--The term ``obligee'' means--
                  (A) in the case of a bid bond, the person requesting 
                bids for the performance of a contract; or
                  (B) in the case of a payment bond or performance 
                bond, the person that has contracted with a principal 
                for the completion of the contract and to which the 
                obligation of the surety runs in the event of a breach 
                by the principal of a condition of a payment bond or 
                performance bond.
          (6) Participating surety.--
                  (A) In general.--The term ``participating surety'' 
                means a surety to which a guarantee or commitment to 
                guarantee is issued under section 32102(a)(1) of this 
                title.
                  (B) Inclusion.--The term ``participating surety'' 
                includes a preferred surety.
          (7) Payment bond.--The term ``payment bond'' means a bond 
        conditioned on the payment by the principal of money to persons 
        under contract with the principal.
          (8) Performance bond.--The term ``performance bond'' means a 
        bond conditioned on the completion by the principal of a 
        contract in accordance with the terms of the contract.
          (9) Preferred surety.--The term ``preferred surety'' means a 
        participating surety that is a participant in the preferred 
        surety bond guarantee program.
          (10) Preferred surety bond guarantee program.--The term 
        ``preferred surety bond guarantee program'' means the program 
        under section 32102(a)(4) of this title.
          (11) Prime contractor.--The term ``prime contractor'' means 
        the person with whom the obligee has contracted to perform the 
        contract.
          (12) Principal.--
                  (A) In general.--The term ``principal'' means--
                          (i) in the case of a bid bond, a person that 
                        bids for the award of a contract; or
                          (ii) the person--
                                  (I) that is primarily liable to 
                                complete a contract for the obligee or 
                                to make a payment to another person in 
                                respect of the contract; and
                                  (II) for whose performance of the 
                                person's obligation the surety is bound 
                                under the terms of a payment bond or 
                                performance bond.
                  (B) Prime contractor or subcontractor.--A principal 
                may be a prime contractor or a subcontractor.
          (13) Program.--The term ``program'' means the surety bond 
        guarantee program.
          (14) Subcontractor.--The term ``subcontractor'' means a 
        person that contracts with a prime contractor or with another 
        subcontractor to perform a contract.
          (15) Surety.--The term ``surety'' means a person that--
                  (A) under the terms of a bid bond, undertakes to pay 
                a sum of money to the obligee if the principal breaches 
                the conditions of the bond;
                  (B) under the terms of a performance bond, undertakes 
                to incur the cost of fulfilling the terms of a contract 
                if the principal breaches the conditions of the 
                contract;
                  (C) under the terms of a payment bond, undertakes to 
                make payment to all persons supplying labor and 
                material in the prosecution of the work provided for in 
                the contract if the principal fails to make prompt 
                payment; or
                  (D) is an agent, independent agent, underwriter, or 
                any other person authorized to act on behalf of a 
                person described in subparagraph (A), (B), or (C).
Sec. 32102. Surety bond guarantees and indemnification agreements
  (a) Guarantee of Surety Against Loss From Principal's Breach of 
Bond.--
          (1) In general.--The Administrator may, on such terms and 
        conditions as the Administrator may prescribe, guarantee and 
        enter into commitments to guarantee a surety against loss 
        resulting from a breach of the terms of a bond by a principal 
        on any total work order or contract amount that at the time of 
        bond execution does not exceed $2,000,000.
          (2) Terms and conditions.--The terms and conditions of 
        guarantees and commitments under paragraph (1) may vary from 
        surety to surety on the basis of the Administrator's experience 
        with the particular surety.
          (3) Eligibility.--A guarantee of a bond shall not be issued 
        under paragraph (1) unless--
                  (A) the person that would be principal under the bond 
                is a small business concern;
                  (B) the bond is required for the person to bid on a 
                contract or to serve as a prime contractor or 
                subcontractor on a contract;
                  (C) the person is not able to obtain the bond on 
                reasonable terms and conditions without a guarantee 
                under this section; and
                  (D)(i) there is a reasonable expectation that the 
                principal will perform the covenants and conditions of 
                the contract with respect to which the bond is 
                required; and
                  (ii) the terms and conditions of the bond are 
                reasonable in the light of the risks involved and the 
                extent of the surety's participation.
          (4) Preferred surety bond guarantee program.--
                  (A) In general.--The Administrator may authorize a 
                surety, without further approval by the Administrator, 
                to issue, monitor, and service bonds that are subject 
                to a guarantee under paragraph (1).
                  (B) Action by the administrator.--The Administrator 
                shall promptly act on an application from a surety to 
                participate in the preferred surety bond guarantee 
                program, in accordance with criteria and procedures 
                established in regulations under subsection (d).
                  (C) Reduction of allotment; termination.--The 
                Administrator may reduce the allotment of bond 
                guarantee authority or terminate the participation of a 
                preferred surety based on the rate of participation of 
                the preferred surety during the 4 most recent fiscal 
                year quarters compared with the median rate of 
                participation by the other preferred sureties.
  (b) Indemnification of Participating Surety Against Loss From 
Avoiding Breach.--
          (1) In general.--In connection with the issuance of a 
        guarantee to a surety, the Administrator may enter into an 
        indemnification agreement with a participating surety to 
        indemnify the participating surety against a loss sustained by 
        the participating surety in avoiding or attempting to avoid a 
        breach of the terms of a bond guaranteed by the Administrator 
        under subsection (a).
          (2) Determination.--Before making any payment under this 
        subsection, the Administrator shall determine that a breach of 
        the terms of the bond was imminent.
          (3) Approval.--A participating surety shall obtain approval 
        from the Administrator before making any payments under this 
        subsection unless the participating surety is a preferred 
        surety.
          (4) Limitation on amount of payment.--
                  (A) In general.--Subject to subparagraph (B), no 
                payment by the Administrator under this subsection 
                shall exceed 10 percent of the contract price unless 
                the Administrator determines that a greater payment 
                should be made as a result of a finding by the 
                Administrator that the participating surety's loss 
                sustained in avoiding or attempting to avoid the breach 
                was necessary and reasonable.
                  (B) Maximum amount.--In no event shall the 
                Administrator pay a participating surety under this 
                subsection an amount exceeding the guaranteed share of 
                the bond available to the participating surety under 
                subsection (a).
  (c) Amount of Liability of the Administrator.--A guarantee or 
indemnification agreement shall obligate the Administrator to pay to 
the participating surety--
          (1) in the case of a preferred surety, an amount not to 
        exceed 70 percent of the amount of the loss incurred and paid 
        by the preferred surety; or
          (2) in the case of a participating surety other than a 
        preferred surety--
                  (A) an amount not to exceed 90 percent of the amount 
                of the loss incurred and paid by the participating 
                surety (but in no event may the Administrator make a 
                duplicate payment under subsection (b) or any other 
                provision of this section); or
                  (B) the amount that is equal to 90 percent of the 
                loss incurred and paid by the participating surety, 
                if--
                          (i) the total amount of the contract at the 
                        time of execution of the bond or bonds is 
                        $100,000 or less; or
                          (ii) the bond was issued to a small business 
                        concern owned and controlled by socially and 
                        economically disadvantaged individuals or to a 
                        qualified HUBZone small business concern.
  (d) Regulations.--
          (1) In general.--The Administrator may prescribe regulations 
        for participating sureties.
          (2) Contents.--The regulations under paragraph (1) shall 
        require a participating surety to meet standards established by 
        the Administrator for underwriting, claim practices, and loss 
        ratios.
  (e) Reimbursement of Surety.--
          (1) In general.--Except as provided in paragraph (2), the 
        Administrator shall reimburse a participating surety as 
        provided in a guarantee or indemnification agreement.
          (2) No liability.--The Administrator shall be relieved of all 
        liability under a guarantee or indemnification agreement if--
                  (A) the participating surety obtained the guarantee 
                or indemnification agreement, or applied for 
                reimbursement, by fraud or material misrepresentation;
                  (B) the total contract amount at the time of 
                execution of the bond or bonds exceeds $2,000,000;
                  (C) the participating surety has breached a material 
                term or condition of the guarantee or indemnification 
                agreement; or
                  (D) the participating surety has substantially 
                violated the regulations prescribed under subsection 
                (d).
  (f) Reimbursement Procedure.--The Administrator may, on such terms 
and conditions as the Administrator may prescribe, establish a 
procedure for reimbursing a participating surety for the paid losses of 
the participating surety billed each month, based on prior monthly 
payments to the participating surety, with subsequent adjustments after 
such reimbursement.
  (g) Reporting by Participating Sureties; Audits.--
          (1) Reporting by participating sureties.--A participating 
        surety shall submit reports to the Administrator at such times 
        and in such form as the Administrator may require.
          (2) Audits.--
                  (A) In general.--The Administrator may at all 
                reasonable times audit, in the offices of a 
                participating surety, all records relevant to the 
                Administration's guarantee, commitments to guarantee, 
                and indemnification agreements issued to or entered 
                into with the participating surety under this section.
                  (B) Preferred surety bond guarantee program 
                participants.--A preferred surety shall be audited at 
                least once every 3 years by examiners selected and 
                approved by the Administrator.
  (h) Administrative Provisions.--The Administrator shall--
          (1) administer the program on a prudent and economically 
        justifiable basis; and
          (2) establish such fees for small business concerns and 
        premiums for participating sureties as the Administrator 
        considers reasonable and necessary, to be payable at such times 
        and under such conditions as the Administrator may determine.
Sec. 32103. Surety bond guarantee fund
  (a) In General.--There is created in the Treasury a separate fund for 
guarantees, which shall be available to the Administrator without 
fiscal year limitation as a revolving fund for the purposes of the 
program.
  (b) Deposit of Amounts Received by the Administrator.--All amounts 
received by the Administrator (including any money, property, or assets 
derived by the Administrator from operations in connection with the 
program) shall be deposited in the fund.
  (c) Use of Fund.--All expenses and payments, excluding administrative 
expenses, pursuant to operations of the Administrator under the program 
shall be paid from the fund.
  (d) Appropriations.--Such sums as may be appropriated to the Fund to 
carry out the programs authorized by this chapter shall be without 
fiscal year limitation.

           DIVISION D--CERTIFIED DEVELOPMENT COMPANY PROGRAM

           CHAPTER 331--CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec.
33101.  Definitions.
33102.  Establishment of program.
33103.  Debenture guarantees.
33104.  Private debenture sales.
33105.  Pooling of debentures.
33106.  Prohibition of acceptance of funding with certain conditions, 
          priorities, restrictions, or requirements.
33107.  Accredited lenders program.
33108.  Premier certified lenders program.
33109.  Foreclosure and liquidation of loans.
Sec. 33101. Definitions
  In this chapter:
          (1) Accredited lender.--The term ``accredited lender'' means 
        a qualified development company that is designated as an 
        accredited lender under section 33107 of this title.
          (2) Certified development company.--The term ``certified 
        development company'' means a qualified development company 
        that the Administrator certifies as meeting criteria 
        established under this chapter to receive assistance under the 
        program.
          (3) Commercial loan.--The term ``commercial loan'' means a 
        loan from a private source.
          (4) Development company.--The term ``development company'' 
        means an enterprise that is incorporated under State law with 
        the authority to promote and assist the growth and development 
        of small business concerns in the area covered by the 
        operations of the enterprise.
          (5) Guaranteed debenture.--The term ``guaranteed debenture'' 
        means a debenture that is guaranteed by the Administrator under 
        the program.
          (6) Premier certified lender.--The term ``premier certified 
        lender'' means a certified development company that is 
        designated as a premier certified lender under section 33108 of 
        this title.
          (7) Program.--The term ``program'' means the certified 
        development company program.
          (8) Project.--The term ``project'' means a project described 
        in section 33103(a)(1) of this title.
          (9) Qualified development company.--
                  (A) In general.--The term ``qualified development 
                company'' means a development company that, as 
                determined by the Administrator, has--
                          (i) a full-time professional staff;
                          (ii) professional management ability 
                        (including adequate accounting, legal, and 
                        business-servicing abilities); and
                          (iii) a board of directors, or membership, 
                        that meets on a regular basis to make 
                        management decisions for the development 
                        company, including decisions relating to the 
                        making and servicing of loans by the 
                        development company.
                  (B) Development companies in a rural area.--A 
                development company in a rural area that does not 
                satisfy the requirements of clauses (i) and (ii) of 
                subparagraph (A) shall be deemed to satisfy those 
                requirements if the development company contracts with 
                a certified development company that does satisfy those 
                requirements and is located in the same general area to 
                provide the services described in those clauses.
          (10) Small manufacturer.--The term ``small manufacturer'' 
        means a small business concern--
                  (A) the primary business of which is classified in 
                sector 31, 32, or 33 of the North American Industry 
                Classification System; and
                  (B) all of the production facilities of which are 
                located in the United States.
Sec. 33102. Establishment of program
  There is established within the Administration a certified 
development company program for the purpose of fostering economic 
development and creating and preserving job opportunities in both urban 
and rural areas by providing long-term financing for small business 
concerns.
Sec. 33103. Debenture guarantees
  (a) In General.--
          (1) Authority.--The Administrator may guarantee the timely 
        payment of all principal and interest as scheduled on a 
        debenture issued by a certified development company the 
        proceeds of which are used to make a loan to a small business 
        concern to be used for a project for a sound business purpose, 
        approved by the Administrator, of plant acquisition, 
        construction, conversion, or expansion (including land 
        acquisition).
          (2) Limitation.--The Administrator shall not guarantee a 
        debenture for the purposes of making a loan described in 
        paragraph (1) unless necessary funds for making the loan are 
        not available to the certified development company from a 
        private source on reasonable terms.
          (3) Terms and conditions.--A debenture guarantee may be made 
        on such terms and conditions as the Administrator may by 
        regulation determine to be appropriate.
          (4) Full faith and credit of the united states.--The full 
        faith and credit of the United States is pledged to the payment 
        of all amounts guaranteed under this subsection.
          (5) Subordination.--A guaranteed debenture may be 
        subordinated by the Administrator to any other debenture, 
        promissory note, or other debt or obligation of the certified 
        development company that issues the debenture.
  (b) Eligibility for Assistance.--
          (1) Economic development objectives.--
                  (A) Definitions.--In subclauses (IX) and (X) of 
                subparagraph (B)(iii), terms have the meanings given 
                the terms under the Leadership in Energy and 
                Environmental Design standard for green building 
                certification, as determined by the Administrator.
                  (B) Eligibility.--To be eligible for assistance under 
                the program, a certified development company shall 
                demonstrate that the project to be funded with the 
                proceeds of a guaranteed debenture is directed toward 
                at least one of the following economic development 
                objectives:
                          (i) Job creation or retention objective.--The 
                        creation of job opportunities within 2 years 
                        after completion of the project, or the 
                        retention of jobs attributable to the project, 
                        as provided in paragraph (3).
                          (ii) Community economic improvement 
                        objective.--Improvement of the economy of the 
                        local community, such as stimulating other 
                        business development in the community, bringing 
                        new income into the area, or assisting the 
                        community in diversifying and stabilizing its 
                        economy.
                          (iii) Public policy objective.--The 
                        achievement of one or more of the following 
                        public policy objectives:
                                  (I) Business district revitalization.
                                  (II) Expansion of exports.
                                  (III) Expansion of minority business 
                                development or women-owned business 
                                development.
                                  (IV) Rural development.
                                  (V) Expansion of small business 
                                concerns owned and controlled by 
                                veterans, especially small business 
                                concerns owned and controlled by 
                                service-disabled veterans.
                                  (VI) Enhancement of economic 
                                competition, including the advancement 
                                of technology, plan retooling, 
                                conversion to robotics, and competition 
                                with imports.
                                  (VII) Changes necessitated by Federal 
                                budget cutbacks, including cutbacks in 
                                defense-related industries.
                                  (VIII) Business restructuring arising 
                                from Federally mandated standards or 
                                policies affecting the environment or 
                                the safety and health of employees.
                                  (IX) Reduction of energy consumption 
                                by at least 10 percent.
                                  (X) Increased use of sustainable 
                                design, including--
                                          (aa) designs that reduce the 
                                        use of greenhouse gas emitting 
                                        fossil fuels; and
                                          (bb) low-impact designs to 
                                        produce buildings that reduce 
                                        the use of nonrenewable 
                                        resources and minimize 
                                        environmental impact.
                                  (XI) Plant, equipment, and process 
                                upgrades of renewable energy sources 
                                such as--
                                          (aa) the small-scale 
                                        production of energy for 
                                        individual buildings or 
                                        communities consumption, 
                                        commonly known as micropower; 
                                        and
                                          (bb) renewable fuels 
                                        producers, including biodiesel 
                                        and ethanol producers.
          (2) Community economic improvement objective; public policy 
        objective.--If eligibility is based on the criteria stated in 
        clause (ii) or (iii) of paragraph (1)(B), the project need not 
        meet the job creation or job preservation criteria developed by 
        the Administrator if the overall portfolio of the development 
        company meets or exceeds those job creation or retention 
        criteria.
          (3) Job creation or retention objective.--
                  (A) Project standard.--A project meets the job 
                creation or retention objective under paragraph 
                (1)(B)(i)) if the project creates or retains--
                          (i) one job for every $50,000 guaranteed by 
                        the Administrator; or
                          (ii) in the case of a project of a small 
                        manufacturer, one job for every $100,000 
                        guaranteed by the Administrator.
                  (B) Portfolio standard.--A project need not meet the 
                project standard under subparagraph (A) if--
                          (i) eligibility of the project is based on 
                        the community economic improvement objective 
                        under paragraph (1)(B)(ii) or one or more of 
                        the public policy objectives under paragraph 
                        (1)(B)(iii); and
                          (ii) after the loan is made for the project, 
                        the certified development company's portfolio 
                        of outstanding guaranteed debentures, excluding 
                        guaranteed debentures for loans to small 
                        manufacturers, creates or retains--
                                  (I) one job for every $50,000 
                                guaranteed by the Administrator; or
                                  (II) in the case of a project in 
                                Alaska, Hawaii, a State-designated 
                                enterprise zone, an empowerment zone, 
                                an enterprise community, or labor 
                                surplus area, as determined by the 
                                Secretary of Labor, or in any other 
                                area designated by the Administrator, 
                                one job for every $75,000 guaranteed by 
                                the Administrator.
          (4) Waiver of requirements.--
                  (A) In general.--Under regulations prescribed by the 
                Administrator, the Administrator may waive, on a case-
                by-case basis or by regulation, any requirement of 
                paragraph (3) (other than the requirement that a 
                calculation under paragraph (3)(B)(ii)(II) exclude 
                debentures for loans to small manufacturers).
                  (B) Dollar amounts.--The Administrator may not, in 
                connection with any waiver under subparagraph (A), 
                adopt any dollar amount that is lower than a dollar 
                amount specified in paragraph (3).
  (c) Criteria for Assistance.--
          (1) In general.--A certified development company shall meet 
        criteria established by the Administrator, including such an 
        extent of participation to be required or amount of paid-in 
        capital to be used in each instance as the Administrator 
        determines to be reasonable.
          (2) Small business concern funds.--In the case of any project 
        of a small business concern financed under the program, the 
        small business concern (or its owners, stockholders, or 
        affiliates) receiving assistance through a body authorized by 
        this chapter shall provide--
                  (A) at least 15 percent of the total financed cost of 
                the project if the small business concern has been in 
                operation for a period of 2 years or less or if the 
                project involves the construction of a limited-purpose 
                or single-purpose building or other structure;
                  (B) at least 20 percent of the total financed cost of 
                the project if the project involves both of the 
                conditions described in subparagraph (A); or
                  (C) an amount specified by the certified development 
                company, which shall be at least 10 percent of the 
                total financed cost of the project, if the project 
                involves neither of the conditions described in 
                subparagraph (A).
          (3) Third-party funds.--
                  (A) Third-party sources.--Third-party funds for a 
                project of a small business concern financed under the 
                program may be derived, in whole or in part, from--
                          (i) a State or local government;
                          (ii) a bank or other financial institution;
                          (iii) a foundation or other nonprofit 
                        institution; or
                          (iv) the small business concern (or its 
                        owners, stockholders, or affiliates).
                  (B) Third-party funding requirement.--Not less than 
                50 percent of the total financed cost of a project 
                described in subparagraph (A) of (B) of paragraph (2) 
                shall come from one or more third-party sources 
                described in clauses (i), (ii), and (iii) of 
                subparagraph (A).
                  (C) Seller financing.--Financing provided by a seller 
                of property to a small business concern for a project 
                may be used to meet the requirements of this paragraph 
                if the seller subordinates the interest of the seller 
                in the property to the debenture guaranteed by the 
                Administrator.
          (4) Collateral.--
                  (A) In general.--The collateral provided by a small 
                business concern--
                          (i) shall generally include a subordinate 
                        lien position on the property being financed 
                        under the program; and
                          (ii) is only one of the factors to be 
                        evaluated in the credit determination.
                  (B) Additional collateral.--Additional collateral 
                shall be required only if the Administrator determines, 
                on a case-by-case basis, that additional security is 
                necessary to protect the interest of the Government.
                  (C) Appraisals.--With respect to commercial real 
                property provided by a small business concern as 
                collateral, an appraisal of the property by a State-
                licensed or State-certified appraiser--
                          (i) shall be required by the Administrator 
                        before disbursement of the loan if the 
                        estimated value of the property is more than 
                        $250,000; and
                          (ii) may be required by the Administrator or 
                        the certified development company before 
                        disbursement of the loan, if--
                                  (I) the estimated value of the 
                                property is $250,000 or less; and
                                  (II) an appraisal is necessary for 
                                appropriate evaluation of 
                                creditworthiness.
          (5) Leasing.--
                  (A) In general.--In the case of a project to 
                construct a new facility for a small business concern, 
                up to 33 percent of the total project may be leased, if 
                reasonable projections of growth demonstrate that the 
                small business concern--
                          (i) will need additional space within 3 years 
                        after the date of completion of the facility; 
                        and
                          (ii) will fully utilize the additional space 
                        within 10 years after the date of completion of 
                        the facility.
                  (B) Limitation on leasing.--In addition to any 
                portion of a project of a small business concern 
                permitted to be leased under subparagraph (A), not to 
                exceed 20 percent of the project may be leased by the 
                small business concern to one or more other tenants if 
                the small business occupies permanently and uses not 
                less than a total of 60 percent of the space in the 
                project after the execution of any leases authorized 
                under this section.
          (6) Ownership requirements.--
                  (A) Ownership by spouse under community property 
                law.--Ownership requirements to determine the 
                eligibility of a small business concern that applies 
                for assistance under the program shall be determined 
                without regard to any ownership interest of a spouse 
                arising solely from the application of the community 
                property law of a State for purposes of determining 
                marital interests.
                  (B) Ownership by relatives.--
                          (i) In general.--The Administrator shall not 
                        decline to issue a debenture guarantee for a 
                        project of a small business concern on the 
                        ground that the ownership interests of the 
                        small business concern and the ownership 
                        interests of the property to be financed with 
                        the proceeds of a loan made with the proceeds 
                        of the guaranteed debenture are not identical 
                        because one or more of the classes of relatives 
                        described in clause (ii) have an ownership 
                        interest in the small business concern or the 
                        property if the Administrator determines, on a 
                        case-by-case basis, that the ownership 
                        interest, the guarantee, and the proceeds of 
                        the loan will substantially benefit the small 
                        business concern.
                          (ii) Classes of relatives.--The classes of 
                        relatives referred to in clause (i) are father, 
                        mother, son, daughter, wife, husband, brother, 
                        or sister.
  (d) Debenture Amount and Interest.--
          (1) Maximum debenture amount.--The amount of a guaranteed 
        debenture shall not exceed the aggregate amount of the loans to 
        be made from the proceeds of the guaranteed debenture (other 
        than any excess attributable to the administrative costs of the 
        loans).
          (2) Minimum interest rate.--The interest rate on a guaranteed 
        debenture shall be not less than the rate of interest 
        determined by the Secretary of the Treasury for purposes of 
        section 30304(b) of this title.
  (e) Loan Approval, Amount, and Interest Rate.--
          (1) Approval by the administrator.--The Administrator shall 
        approve each loan made with the proceeds of a guaranteed 
        debenture.
          (2) Maximum loan amount.--
                  (A) Percentage of project cost.--The amount of a loan 
                made with the proceeds of a guaranteed debenture shall 
                not exceed the amount that is equal to 50 percent of 
                the cost of the project with respect to which the loan 
                is made.
                  (B) Dollar amount.--
                          (i) In general.--Except as provided in clause 
                        (ii), the amount of a loan made with the 
                        proceeds of a guaranteed debenture shall not 
                        exceed $1,500,000.
                          (ii) Exceptions.--
                                  (I) Public policy objectives.--The 
                                amount of a loan for a project directed 
                                toward one or more of the public policy 
                                objectives described in subsection 
                                (b)(1)(B)(iii) shall not exceed 
                                $2,000,000.
                                  (II) Small manufacturers.--The amount 
                                of a loan to a small manufacturer shall 
                                not exceed $4,000,000.
                                  (III) Reduction of energy 
                                consumption.--The amount of a loan for 
                                a project that reduces the borrower's 
                                energy consumption by at least 10 
                                percent shall not exceed $4,000,000.
                                  (IV) Generation of renewable energy 
                                or renewable fuel.--The amount of a 
                                loan for a project that generates 
                                renewable energy or renewable fuel 
                                (such as biodiesel or ethanol 
                                production) shall not exceed 
                                $4,000,000.
  (f) Commercial Loan Interest Rate.--
          (1) Purpose.--The purpose of this subsection is to facilitate 
        the orderly and necessary flow of long-term loans from 
        certified development companies to small business concerns.
          (2) Maximum interest rate.--Notwithstanding the provisions of 
        the constitution or laws of any State limiting the rate or 
        amount of interest that may be charged, taken, received, or 
        reserved, the maximum legal rate of interest on any commercial 
        loan that funds any portion of the cost of the project financed 
        under the program that is not funded by a guaranteed debenture 
        shall be a rate established by the Administrator under 
        paragraph (3).
          (3) Establishment by the administrator.--The Administrator 
        shall establish and publish quarterly a maximum legal interest 
        rate for any commercial loan that funds any portion of the cost 
        of a project financed under the program that is not funded by a 
        guaranteed debenture.
  (g) Fees and Charges.--
          (1) Loan fees.--
                  (A) In general.--With respect to each loan made with 
                the proceeds of a guaranteed debenture, the 
                Administrator shall assess and collect a fee, which 
                shall be payable by the borrowing small business 
                concern, in an amount established annually by the 
                Administrator.
                  (B) Amount.--
                          (i) In general.--Except as provided in clause 
                        (ii), the amount of a loan fee shall not exceed 
                        the lesser of--
                                  (I) 0.9375 percent per year of the 
                                outstanding balance of the loan; or
                                  (II) the minimum amount necessary to 
                                reduce to zero the cost (as defined in 
                                section 502 of the Federal Credit 
                                Reform Act of 1990 (2 U.S.C. 661a)) to 
                                the Administrator of purchasing and 
                                guaranteeing debentures under the 
                                program.
                          (ii) Exception.--
                                  (I) In general.--In the case of a 
                                loan made during the 2-year period 
                                beginning on October 1, 2002, the 
                                amount of a loan fee shall be 50 
                                percent of the amount established under 
                                clause (i), for the life of the loan.
                                  (II) Limitation.--Subclause (I) shall 
                                be effective only to the extent that 
                                funds are made available under 
                                appropriations Acts, which funds shall 
                                be used by the Administrator to offset 
                                the cost (as defined in section 502 of 
                                the Federal Credit Reform Act of 1990 
                                (2 U.S.C. 661a)) of that subclause.
                  (C) Use of proceeds.--The Administrator shall use the 
                proceeds of loan fees collected to offset the cost (as 
                defined in section 502 of the Federal Credit Reform Act 
                of 1990 (2 U.S.C. 661a)) to the Administrator of making 
                guarantees under the program.
          (2) Administrative expense charges.--The Administrator may 
        impose a charge for administrative expenses with respect to a 
        guaranteed debenture.
          (3) Participation fees.--
                  (A) In general.--The Administrator shall collect a 
                one-time fee in an amount equal to 50 basis points on 
                the total participation in a project by an entity 
                described in clause (i), (ii), or (iii) of subsection 
                (c)(3)(A) if the participation will occupy a senior 
                credit position to that of the certified development 
                company.
                  (B) Use of proceeds.--All proceeds of the 
                participation fee shall be used to offset the cost (as 
                defined in section 502 of the Federal Credit Reform Act 
                of 1990 (2 U.S.C. 661a)) to the Administrator of making 
                guarantees under the program.
          (4) Certified development company fees.--
                  (A) In general.--The Administrator shall collect 
                annually from a certified development company a fee of 
                0.125 percent of the outstanding principal balance of 
                any guaranteed debenture approved by the Administrator 
                on or after October 1, 1996.
                  (B) Derivation.--The fee under subparagraph (A) shall 
                be derived from the servicing fees collected by the 
                certified development company pursuant to regulation 
                and not from any additional fee imposed on a small 
                business concern.
                  (C) Use of proceeds.--All proceeds of the certified 
                development company fee shall be used to offset the 
                cost (as defined in section 502 of the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661a)) to the 
                Administrator of making guarantees under the program.
          (5) Applicability.--The fees authorized by this subsection 
        apply to financings approved by the Administrator on or after 
        October 1, 1996.
  (h) Calculation of Subsidy Rate.--All fees, interest, and profits 
received and retained by the Administrator under the program shall be 
included in the calculations made by the Director of the Office of 
Management and Budget to offset the cost (as defined in section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the 
Administrator of purchasing and guaranteeing debentures under the 
program.
  (i) Required Actions on Default.--
          (1) Initial actions.--Not later than the 45th day after the 
        date on which a payment on a loan funded through a guaranteed 
        debenture is due and not received, the Administrator shall--
                  (A) take all necessary steps to bring the loan 
                current; or
                  (B) implement a formal written deferral agreement.
          (2) Purchase or acceleration of debenture.--Not later than 
        the 65th day after the date on which a payment on a loan 
        described in paragraph (1) is due and not received, and absent 
        a formal written deferral agreement, the Administrator shall 
        take all necessary steps to purchase or accelerate the 
        guaranteed debenture.
          (3) Prepayment penalties.--With respect to the portion of a 
        project derived from funds described in subsection (c)(3), the 
        Administration--
                  (A) shall negotiate the elimination of any prepayment 
                penalties or late fees on a defaulted loan made before 
                September 30, 1996;
                  (B) shall not pay any prepayment penalty or late fee 
                on the default-based purchase of a loan issued after 
                September 30, 1996; and
                  (C) for any project financed after September 30, 
                1996, shall not pay any default interest rate higher 
                than the interest rate on the note prior to the date of 
                default.
Sec. 33104. Private debenture sales
  (a) In General.--Notwithstanding any other law (including a 
regulation), all guaranteed debentures shall be sold to investors, 
publicly or by private placement.
  (b) Federal Financing Bank.--Nothing in any provision of law 
authorizes the Federal Financing Bank to acquire--
          (1) any obligation the payment of principal or interest on 
        which at any time has been guaranteed in whole or in part under 
        the program that is being sold under subsection (a);
          (2) any obligation that is an interest in an obligation 
        described in paragraph (1); or
          (3) any obligation that is secured by, or substantially all 
        of the value of which is attributable to, an obligation 
        described in paragraph (1) or (2).
Sec. 33105. Pooling of debentures
  (a) Issuance.--
          (1) In general.--The Administrator may issue trust 
        certificates representing ownership of all or a fractional part 
        of a guaranteed debenture.
          (2) Trust or pool.--A trust certificate issued under 
        paragraph (1) shall be based on and backed by a trust or pool 
        approved by the Administrator and composed solely of guaranteed 
        debentures.
  (b) Guarantee.--
          (1) In general.--The Administrator may, on such terms and 
        conditions as the Administrator considers appropriate, 
        guarantee the timely payment of the principal of and interest 
        on trust certificates issued by the Administrator (or an agent 
        of the Administrator) for purposes of this section.
          (2) Limitation.--A guarantee shall be limited to the extent 
        of principal and interest on the guaranteed debentures that 
        compose the trust or pool.
          (3) Prepayment on redemption.--
                  (A) Reduction of guarantee.--If a guaranteed 
                debenture in a trust or pool is prepaid, voluntarily or 
                in the event of default, the guarantee of timely 
                payment of principal and interest on the trust 
                certificates shall be reduced in proportion to the 
                amount of principal and interest that the prepaid 
                guaranteed debenture represents in the trust or pool.
                  (B) Limitation on guarantee of interest.--Interest on 
                a prepaid or defaulted guaranteed debenture shall 
                accrue and be guaranteed by the Administrator only 
                through the date of payment on the guarantee.
                  (C) Call of trust certificate.--During the term of a 
                trust certificate, the trust certificate may be called 
                for redemption due to prepayment or default of all 
                guaranteed debentures constituting the trust or pool.
  (c) Full Faith and Credit of the United States.--The full faith and 
credit of the United States is pledged to the payment of all amounts 
that may be required to be paid under any guarantee of a trust 
certificate issued by the Administrator (or an agent of the 
Administrator) under this section.
  (d) Fees.--
          (1) Administrator.--The Administrator shall not collect any 
        fee for a guarantee under this section.
          (2) Agent of the administrator.--This subsection does not 
        preclude an agent of the Administrator from collecting a fee 
        approved by the Administrator for performing the functions 
        described in subsection (f)(2).
  (e) Subrogation Rights; Ownership Rights in Guaranteed Debentures.--
          (1) Subrogation.--If the Administrator pays a claim under a 
        guarantee issued under this section, the Administrator shall be 
        subrogated fully to the rights satisfied by the payment.
          (2) Ownership rights in guaranteed debentures.--No Federal, 
        State, or local law shall preclude or limit the exercise by the 
        Administrator of the Administrator's ownership rights in the 
        guaranteed debentures constituting the trust or pool against 
        which the trust certificates are issued.
  (f) Central Registration; Regulation of Brokers and Dealers.--
          (1) Central registration.--The Administrator shall provide 
        for a central registration of all trust certificates sold 
        pursuant to this section.
          (2) Agent.--
                  (A) In general.--The Administrator shall contract 
                with an agent to carry out on behalf of the 
                Administrator--
                          (i) the central registration functions under 
                        this section; and
                          (ii) the issuance of trust certificates to 
                        facilitate poolings.
                  (B) Bond or insurance.--The agent under subparagraph 
                (A) shall provide a fidelity bond or insurance in such 
                amounts as the Administrator determines to be necessary 
                to fully protect the interests of the Government.
          (3) Disclosure.--The Administrator shall require a seller to 
        disclose to a purchaser of a trust certificate issued under 
        this section, before the sale, information on the terms, 
        conditions, and yield of the trust certificate.
          (4) Regulation of brokers and dealers.--The Administrator may 
        regulate brokers and dealers in trust certificates sold under 
        this section.
          (5) Form of registration.--This subsection does not preclude 
        the use of a book-entry or other electronic form of 
        registration for trust certificates.
Sec. 33106. Prohibition of acceptance of funding with certain 
                    conditions, priorities, restrictions, or 
                    requirements
  Notwithstanding any other provision of law, a certified development 
company shall not accept funding from any source (including a Federal 
agency) if the funding--
          (1) includes any condition, priority, or restriction on the 
        type of small business concern to which the certified 
        development company may provide financial assistance under the 
        program; or
          (2) includes any condition or imposes any requirement, 
        directly or indirectly, on any recipient of assistance under 
        the program.
Sec. 33107. Accredited lenders program
  (a) Establishment of Program.--The Administrator may establish as 
part of the program an accredited development company program for 
qualified development companies that meet the requirements of 
subsection (b).
  (b) Requirements.--The Administrator may designate a qualified 
development company as an accredited lender if the qualified 
development company--
          (1) has been an active participant in the program for not 
        less than the preceding 12 months;
          (2) has well-trained, qualified personnel who are 
        knowledgeable in the Administration's lending policies and 
        procedures for the program;
          (3) has the ability to process, close, and service financing 
        for plant and equipment under the program;
          (4) has a loss rate on the qualified development company's 
        debentures that is reasonable and acceptable to the 
        Administrator;
          (5) has a history of submitting to the Administrator complete 
        and accurate debenture guarantee application packages; and
          (6) has demonstrated the ability to serve small business 
        credit needs for financing plant and equipment through the 
        program.
  (c) Expedited Processing of Loan Applications.--The Administrator 
shall develop an expedited procedure for processing a loan application 
or servicing action submitted by an accredited lender.
  (d) Suspension or Revocation of Designation.--
          (1) In general.--The Administrator may suspend or revoke the 
        designation of a qualified development company as an accredited 
        lender if the Administrator determines that--
                  (A) the qualified development company has not 
                continued to meet the criteria for eligibility under 
                subsection (b); or
                  (B) the qualified development company has failed to 
                adhere to the Administrator's regulations or is 
                violating any other applicable provision of law.
          (2) Effect.--A suspension or revocation under paragraph (1) 
        shall not affect any outstanding debenture guarantee.
Sec. 33108. Premier certified lenders program
  (a) Establishment of Program.--The Administrator may establish as 
part of the program a premier certified lenders program for certified 
development companies that meet the requirements of subsection (b).
  (b) Requirements.--
          (1) Application.--To be eligible to participate in the 
        premier certified lenders program, a certified development 
        company shall submit to the Administrator an application at 
        such time, in such manner, and containing such information as 
        the Administrator may require.
          (2) Designation.--The Administrator may designate a certified 
        development company as a premier certified lender if--
                  (A) the certified development company is an active 
                certified development company in good standing;
                  (B) the certified development company has been an 
                active participant in the accredited lenders program 
                during the entire 12-month period preceding the date on 
                which the certified development company submits an 
                application under paragraph (1);
                  (C) the certified development company has a history 
                of--
                          (i) submitting to the Administrator 
                        adequately analyzed debenture guarantee 
                        application packages; and
                          (ii) properly closing loans under the program 
                        and servicing its loan portfolio;
                  (D) the certified development company agrees to 
                assume and to reimburse the Administrator--
                          (i) for 10 percent of any loss sustained by 
                        the Administrator as a result of default by the 
                        certified development company in the payment of 
                        principal or interest on a guaranteed debenture 
                        issued by the certified development company; or
                          (ii) for 15 percent of the loss, if the loss 
                        is attributable to a guaranteed debenture 
                        issued by the certified development company 
                        during any period for which an election is in 
                        effect under subsection (c)(8) for the 
                        certified development company; and
                  (E) the Administrator determines, with respect to the 
                certified development company, that the loss reserve 
                established under subsection (c) is sufficient for the 
                certified development company to meet its obligations 
                to protect the Federal Government from risk of loss.
          (3) Waiver of requirement.--The Administrator may waive the 
        requirement of paragraph (2)(B) with respect to a certified 
        development company if the certified development company is 
        qualified to participate in the accredited lenders program.
          (4) Applicability of criteria after designation.--The 
        Administrator may revoke the designation of a certified 
        development company as a premier certified lender under this 
        section at any time, if the Administrator determines that the 
        certified development company does not meet any requirement 
        described in subparagraphs (A) to (E) of paragraph (2).
  (c) Loss Reserve.--
          (1) In general.--A premier certified lender shall establish a 
        loss reserve for financing approved under this section.
          (2) Amount.--The amount of a loss reserve under paragraph (1) 
        shall be 10 percent of the amount of the premier certified 
        lender's exposure, as determined under subsection (b)(2)(D).
          (3) Assets.--A loss reserve under paragraph (1) shall be 
        comprised of--
                  (A) segregated funds on deposit in one or more 
                accounts with one or more federally insured depository 
                institutions selected by the premier certified lender, 
                subject to a collateral assignment in favor of, and in 
                a format acceptable to, the Administrator;
                  (B) one or more irrevocable letters of credit, with a 
                collateral assignment in favor of, and a commercially 
                reasonable format acceptable to, the Administrator; or
                  (C) any combination of the assets described in 
                subparagraphs (A) and (B).
          (4) Contributions.--A premier certified lender shall make 
        contributions to a loss reserve under paragraph (1) in the 
        following amounts and at the following intervals:
                  (A) 50 percent when a debenture is closed.
                  (B) 25 percent additional not later than one year 
                after a debenture is closed.
                  (C) 25 percent additional not later than 2 years 
                after a debenture is closed.
          (5) Reimbursement of the administrator for loss.--If a loss 
        is sustained by the Administrator, any portion of the loss 
        reserve, and other funds provided by the premier certified 
        lender as necessary, may be used to reimburse the Administrator 
        for the premier certified lender's share of the loss as 
        provided in subsection (b)(2)(D) of this section.
          (6) Replacement of used funds.--If a premier certified lender 
        uses funds in its loss reserve, the premier certified lender 
        shall replace an equivalent amount of funds in the loss reserve 
        not later than 30 days after the date of the use.
          (7) Withdrawals.--
                  (A) In general.--The Administrator shall allow a 
                premier certified lender to withdraw from its loss 
                reserve amounts attributable to any debenture that is 
                repaid.
                  (B) Temporary reduction based on outstanding 
                balance.--
                          (i) In general.--Notwithstanding subparagraph 
                        (A), during the 2-year period beginning on 
                        August 26, 2004, the Administrator shall allow 
                        a premier certified lender to withdraw from its 
                        loss reserve such amounts as are in excess of 
                        one percent of the aggregate outstanding 
                        balances of debentures to which the loss 
                        reserve relates.
                          (ii) Applicability.--Clause (i) does not 
                        apply with respect to a debenture before 100 
                        percent of the contribution described in 
                        paragraph (4) with respect to the debenture is 
                        made.
          (8) Alternative loss reserve.--
                  (A) Definitions.--In this paragraph:
                          (i) Calendar quarter.--The term ``calendar 
                        quarter'' means--
                                  (I) the period that begins on January 
                                1 and ends on March 31 of a year;
                                  (II) the period that begins on April 
                                1 and ends on June 30 of a year;
                                  (III) the period that begins on July 
                                1 and ends on September 30 of a year; 
                                and
                                  (IV) the period that begins on 
                                October 1 and ends on December 31 of a 
                                year.
                          (ii) Eligible calendar quarter.--The term 
                        ``eligible calendar quarter'' means--
                                  (I) the first calendar quarter that 
                                begins after August 26, 2004; and
                                  (II) each of the 7 succeeding 
                                calendar quarters.
                          (iii) PCLP loan.--The term ``PCLP loan'' 
                        means a loan guaranteed under this section.
                          (iv) Qualified high loss reserve pcl.--The 
                        term ``qualified high loss reserve PCL'' means, 
                        with respect to any calendar year, a premier 
                        certified lender that the Administrator 
                        designates as a qualified high loss reserve PCL 
                        for that year under subparagraph (B).
                          (v) Qualified independent auditor.--The term 
                        ``qualified independent auditor'', with respect 
                        to any year, means an auditor that--
                                  (I) is compensated by a qualified 
                                high loss reserve PCL;
                                  (II) is independent of the qualified 
                                high loss reserve PCL; and
                                  (III) was approved by the 
                                Administrator during the preceding 
                                year.
                          (vi) Specified risk management benchmark.--
                        The term ``specified risk management 
                        benchmark'' means the following rates, as 
                        determined by the Administrator:
                                  (I) Currency rate.
                                  (II) Delinquency rate.
                                  (III) Default rate.
                                  (IV) Liquidation rate.
                                  (V) Loss rate.
                  (B) Designation of qualified high loss reserve 
                pcls.--The Administrator may designate a premier 
                certified lender as a qualified high loss reserve PCL 
                if the Administrator determines that--
                          (i) the amount of the loss reserve of the 
                        premier certified lender is not less than 
                        $100,000;
                          (ii) the premier certified lender has 
                        established and is using an appropriate and 
                        effective process for analyzing the risk of 
                        loss associated with its portfolio of PCLP 
                        loans and for grading each PCLP loan made by 
                        the premier certified lender on the basis of 
                        the risk of loss associated with the loan; and
                          (iii)(I) the premier certified lender meets 
                        or exceeds 4 or more of the specified risk 
                        management benchmarks as of the most recent 
                        assessment by the Administrator; or
                          (II) the Administrator issues a waiver with 
                        respect to the requirement of subclause (I).
                  (C) Election.--With respect to any eligible calendar 
                quarter, a qualified high loss reserve PCL may elect to 
                have the requirements of this paragraph apply in lieu 
                of the requirements of paragraphs (2) and (4) for that 
                eligible calendar quarter.
                  (D) Contributions.--
                          (i) Ordinary rules inapplicable.--Except as 
                        provided under clause (ii) and paragraph (6), a 
                        qualified high loss reserve PCL that makes the 
                        election described in subparagraph (C) with 
                        respect to an eligible calendar quarter shall 
                        not be required to make contributions to its 
                        loss reserve during that eligible calendar 
                        quarter.
                          (ii) Contribution based on loss.--A qualified 
                        high loss reserve PCL that makes the election 
                        described in subparagraph (C) with respect to 
                        an eligible calendar quarter shall, before the 
                        last day of that eligible calendar quarter, 
                        make such contributions to its loss reserve as 
                        are necessary to ensure that the amount of the 
                        loss reserve of the qualified high loss reserve 
                        PCL is--
                                  (I) not less than $100,000; and
                                  (II) sufficient, as determined by a 
                                qualified independent auditor, for the 
                                qualified high loss reserve PCL to meet 
                                its obligations to protect the Federal 
                                Government from risk of loss.
                          (iii) Certification.--Before the end of any 
                        eligible calendar quarter for which an election 
                        is in effect under subparagraph (C), the head 
                        of the qualified high loss reserve PCL shall 
                        submit to the Administrator a certification 
                        that the loss reserve of the qualified high 
                        loss reserve PCL is sufficient to meet the 
                        qualified high loss reserve PCL's obligation to 
                        protect the Federal Government from risk of 
                        loss. The certification shall be in such form 
                        and submitted in such manner as the 
                        Administrator may require and shall be signed 
                        by the head of the qualified high loss reserve 
                        PCL and the auditor making the determination 
                        under clause (ii)(II).
                  (E) Withdrawals.--
                          (i) Ordinary rule inapplicable.--Paragraph 
                        (7) shall not apply with respect to any 
                        qualified high loss reserve PCL for any 
                        calendar quarter for which an election is in 
                        effect under subparagraph (C).
                          (ii) Excess funds.--At the end of each 
                        calendar quarter for which an election is in 
                        effect under subparagraph (C), the 
                        Administrator shall allow the qualified high 
                        loss reserve PCL to withdraw from its loss 
                        reserve the excess of the amount of the loss 
                        reserve over the greater of--
                                  (I) $100,000; or
                                  (II) the amount that is determined 
                                under subparagraph (D)(ii)(II) to be 
                                sufficient to meet the PCL's obligation 
                                to protect the Federal Government from 
                                risk of loss.
                  (F) Recontribution.--
                          (i) In general.--If the requirements of this 
                        paragraph apply to a qualified high loss 
                        reserve PCL for any eligible calendar quarter 
                        and cease to apply to that qualified high loss 
                        reserve PCL for any subsequent eligible 
                        calendar quarter, the qualified high loss 
                        reserve PCL shall make a contribution to its 
                        loss reserve in such amount as the 
                        Administrator may determine, subject to clause 
                        (ii).
                          (ii) Amount.--The amount determined under 
                        clause (i) shall not exceed the amount that 
                        would result in the total amount in the loss 
                        reserve being equal to the amount that would 
                        have been in the loss reserve had this 
                        paragraph never applied to the qualified high 
                        loss reserve PCL.
                          (iii) Form.--The Administrator may require 
                        that a contribution under clause (i) be made as 
                        a single payment or as a series of payments.
                  (G) Risk management.--
                          (i) In general.--If a qualified high loss 
                        reserve PCL fails to meet the requirement of 
                        subparagraph (B)(iii) during any period for 
                        which an election is in effect under 
                        subparagraph (C) and the failure continues for 
                        180 days--
                                  (I) the requirements of paragraphs 
                                (2), (4), and (7) shall apply to the 
                                qualified high loss reserve PCL as of 
                                the end of that 180-day period; and
                                  (II) the qualified high loss reserve 
                                PCL shall make the contribution to its 
                                loss reserve described in subparagraph 
                                (F).
                          (ii) Waiver.--The Administrator may waive the 
                        requirements of clause (i).
                  (H) Regulations.--
                          (i) In general.--The Administrator shall 
                        prescribe regulations to carry out this 
                        paragraph.
                          (ii) Contents.--The regulations shall include 
                        provisions relating to--
                                  (I) the approval of auditors under 
                                subparagraph (A)(v); and
                                  (II) the designation of qualified 
                                high loss reserve PCLs under 
                                subparagraph (B), including the 
                                determination of whether a process for 
                                analyzing risk of loss is appropriate 
                                and effective for purposes of 
                                subparagraph (B)(ii).
  (d) Sale of Certain Defaulted Loans.--
          (1) Notice.--
                  (A) In general.--If, on default in repayment, the 
                Administrator acquires a loan guaranteed under this 
                section and identifies the loan for inclusion in a bulk 
                asset sale of defaulted or repurchased loans or other 
                financings, the Administrator shall give prior notice 
                of the inclusion of the loan in the bulk asset sale to 
                any certified development company that has a contingent 
                liability under this section.
                  (B) Timing.--The notice shall be given to the 
                certified development company as soon as possible after 
                the financing is identified, but not less than 90 days 
                before the date on which the Administrator first makes 
                any records on the financing available for examination 
                by prospective purchasers prior to its offering in a 
                package of loans for bulk sale.
          (2) Limitation.--The Administration shall not offer a loan 
        described in paragraph (1) as part of a bulk sale unless the 
        Administrator--
                  (A) provides prospective purchasers with the 
                opportunity to examine the Administrator's records with 
                respect to the loan; and
                  (B) provides the notice required by paragraph (1).
  (e) Loan Approval Authority.--
          (1) In general.--Notwithstanding section 33103(e)(1) of this 
        title, and subject to such terms and conditions as the 
        Administrator may establish, the Administrator may--
                  (A) permit a premier certified lender to approve, 
                authorize, close, service, foreclose, litigate (except 
                that the Administrator may monitor the conduct of any 
                such litigation to which a premier certified lender is 
                a party), and liquidate loans that are funded with the 
                proceeds of a debenture issued by the premier certified 
                lender; and
                  (B) authorize the guarantee of such a debenture.
          (2) Scope of review.--The approval of a loan by a premier 
        certified lender shall be subject to final approval as to 
        eligibility of any guarantee by the Administrator under section 
        33103 of this title, but such final approval shall not include 
        review of decisions by the lender involving creditworthiness, 
        loan closing, or compliance with legal requirements imposed by 
        law (including a regulation).
  (f) Review.--
          (1) In general.--After the issuance and sale of debentures 
        under this section, the Administrator, at intervals of not 
        greater than 12 months, shall review the financings made by 
        each premier certified lender.
          (2) Matters to be reviewed.--A review shall include a premier 
        certified lender's credit decisions and general compliance with 
        the eligibility requirements for each financing approved under 
        the premier certified lenders program.
          (3) Consideration of findings.--The Administrator shall 
        consider the findings of the review in carrying out subsection 
        (g), but the review shall not affect any outstanding debenture 
        guarantee.
  (g) Suspension or Revocation.--
          (1) In general.--The designation of a certified development 
        company as a premier certified lender may be suspended or 
        revoked if the Administrator determines that the certified 
        development company--
                  (A) has not continued to meet the criteria for 
                eligibility under subsection (b);
                  (B) has not established or maintained the loss 
                reserve required under subsection (c);
                  (C) is failing to adhere to the Administrator's 
                regulations; or
                  (D) is violating any other applicable provision of 
                law.
          (2) Effect of suspension or revocation.--A suspension or 
        revocation under this subsection shall not affect any 
        outstanding debenture guarantee.
  (h) Program Goals.--A certified development company that is 
designated as a premier certified lender shall establish a goal of 
processing a minimum of not less than 50 percent of the loan 
applications that the certified development company receives for 
assistance under the premier certified lenders program.
Sec. 33109. Foreclosure and liquidation of loans
  (a) Delegation of Authority.--The Administrator shall delegate to a 
qualified development company that meets the eligibility requirements 
of subsection (b)(1) the authority to foreclose and liquidate, or to 
otherwise treat in accordance with this section, defaulted loans in its 
portfolio that are funded with the proceeds of guaranteed debentures.
  (b) Eligibility for Delegation.--
          (1) Requirements.--A qualified development company shall be 
        eligible for a delegation of authority under subsection (a) 
        if--
                  (A) the qualified development company--
                          (i) participated in the loan liquidation 
                        pilot program under section 204 of the Small 
                        Business Programs Improvement Act of 1996 (15 
                        U.S.C. 695 note; 110 Stat. 3009-736), as in 
                        effect on the day before promulgation of final 
                        regulations by the Administrator implementing 
                        this section;
                          (ii) is participating in the premier 
                        certified lenders program; or
                          (iii) during the 3 fiscal years immediately 
                        prior to seeking such a delegation, has made an 
                        average of not less than 10 loans per year that 
                        are funded with the proceeds of guaranteed 
                        debentures; and
                  (B) the qualified development company--
                          (i) has one or more employees--
                                  (I) who have not less than 2 years of 
                                substantive decisionmaking experience 
                                in administering the liquidation and 
                                workout of problem loans secured in a 
                                manner substantially similar to loans 
                                funded with the proceeds of guaranteed 
                                debentures; and
                                  (II) who have completed a training 
                                program on loan liquidation developed 
                                by the Administrator in conjunction 
                                with qualified development companies 
                                that meet the requirements of this 
                                paragraph; or
                          (ii) submits to the Administrator 
                        documentation demonstrating that the qualified 
                        development company has contracted with a 
                        qualified third party to perform any 
                        liquidation activities and secures the approval 
                        of the contract by the Administrator with 
                        respect to the qualifications of the contractor 
                        and the terms and conditions of liquidation 
                        activities.
          (2) Confirmation.--
                  (A) Examination.--On request, the Administrator shall 
                examine the qualifications of a qualified development 
                company described in subsection (a) to determine 
                whether the qualified development company is eligible 
                for the delegation of authority under subsection (a).
                  (B) Determination of ineligibility.--If the 
                Administrator determines that a qualified development 
                company is not eligible, the Administrator shall 
                provide the qualified development company with the 
                reasons for ineligibility.
  (c) Scope of Delegated Authority.--
          (1) In general.--A qualified development company to which the 
        Administrator delegates authority under subsection (a) may, 
        with respect to any loan described in subsection (a)--
                  (A) perform all liquidation and foreclosure 
                functions, including the purchase in accordance with 
                this subsection of any other indebtedness secured by 
                the property securing the loan, in a reasonable and 
                sound manner according to commercially accepted 
                practices, pursuant to a liquidation plan approved in 
                advance by the Administrator under paragraph (2)(A);
                  (B) litigate any matter relating to the performance 
                of the functions described in subparagraph (A), except 
                that the Administrator may--
                          (i) defend or bring any claim if--
                                  (I) the outcome of the litigation may 
                                adversely affect the Administrator's 
                                management of the program; or
                                  (II) the Administrator is entitled to 
                                legal remedies not available to a 
                                qualified development company, and 
                                those remedies will benefit the 
                                Administrator or the qualified 
                                development company; or
                          (ii) oversee the conduct of any such 
                        litigation; and
                  (C) take other appropriate actions to mitigate loan 
                losses in lieu of total liquidation or foreclosures, 
                including the restructuring of a loan in accordance 
                with prudent loan servicing practices and pursuant to a 
                workout plan approved in advance by the Administrator 
                under paragraph (2)(C).
          (2) Approval by the administrator.--
                  (A) Liquidation plan.--
                          (i) Submission.--Before carrying out 
                        functions described in paragraph (1)(A), a 
                        qualified development company shall submit to 
                        the Administrator a proposed liquidation plan.
                          (ii) Action by the administrator on proposed 
                        liquidation plan.--
                                  (I) Timing.--Not later than 15 
                                business days after a liquidation plan 
                                is received by the Administrator under 
                                clause (i), the Administrator shall 
                                approve or reject the liquidation plan.
                                  (II) Notice of no decision.--With 
                                respect to any liquidation plan that 
                                cannot be approved or denied within the 
                                15-day period required by subclause 
                                (I), the Administrator shall within 
                                that period provide in accordance with 
                                subparagraph (E) notice to the 
                                qualified development company that 
                                submitted the liquidation plan.
                          (iii) Routine actions.--In carrying out 
                        functions described in paragraph (1)(A), a 
                        qualified development company may undertake 
                        routine actions not addressed in a liquidation 
                        plan without obtaining additional approval from 
                        the Administrator.
                  (B) Purchase of indebtedness.--
                          (i) In general.--In carrying out functions 
                        described in paragraph (1)(A), a qualified 
                        development company shall submit to the 
                        Administrator a request for written approval 
                        before committing the Administrator to the 
                        purchase of any other indebtedness secured by 
                        the property securing a defaulted loan.
                          (ii) Action by the administrator on 
                        request.--
                                  (I) Timing.--Not later than 15 
                                business days after receiving a request 
                                under clause (i), the Administrator 
                                shall approve or deny the request.
                                  (II) Notice of no decision.--With 
                                respect to any request that cannot be 
                                approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administrator shall within that period 
                                provide in accordance with subparagraph 
                                (E) notice to the qualified development 
                                company that submitted the request.
                  (C) Workout plan.--
                          (i) In general.--In carrying out functions 
                        described in paragraph (1)(C), a qualified 
                        development company shall submit to the 
                        Administrator a proposed workout plan.
                          (ii) Action by the administrator on proposed 
                        workout plan.--
                                  (I) Timing.--Not later than 15 
                                business days after a workout plan is 
                                received by the Administrator under 
                                clause (i), the Administrator shall 
                                approve or reject the workout plan.
                                  (II) Notice of no decision.--With 
                                respect to any workout plan that cannot 
                                be approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administrator shall, within that 
                                period, provide in accordance with 
                                subparagraph (E) notice to the 
                                qualified development company that 
                                submitted the workout plan.
                  (D) Compromise of indebtedness.--In carrying out 
                functions described in paragraph (1)(A), a qualified 
                development company may--
                          (i) consider an offer made by an obligor to 
                        compromise the debt for less than the full 
                        amount owing; and
                          (ii) pursuant to such an offer, release any 
                        obligor or other party contingently liable, if 
                        the qualified development company secures the 
                        written approval of the Administrator.
                  (E) Contents of notice of no decision.--A notice 
                provided by the Administrator under subparagraph 
                (A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)--
                          (i) shall be in writing;
                          (ii) shall state the specific reason for the 
                        Administrator's inability to act on a 
                        liquidation plan, request, or workout plan;
                          (iii) shall include an estimate of the 
                        additional time required by the Administrator 
                        to act on the liquidation plan, request, or 
                        workout plan; and
                          (iv) if the Administrator cannot act because 
                        insufficient information or documentation was 
                        provided by the qualified development company 
                        that submitted the liquidation plan, request, 
                        or workout plan, shall specify the nature of 
                        such additional information or documentation.
          (3) Conflict of interest.--In carrying out functions 
        described in paragraph (1), a qualified development company 
        shall take no action that would result in an actual or apparent 
        conflict of interest between the qualified development company 
        (or any employee of the qualified development company) and any 
        third party lender, associate of a third party lender, or any 
        other person participating in a liquidation, foreclosure, or 
        loss mitigation action.
  (d) Suspension or Revocation of Authority.--The Administrator may 
revoke or suspend a delegation of authority under this section to a 
qualified development company if the Administration determines that the 
qualified development company--
          (1) does not meet the requirements of subsection (b)(1);
          (2) has violated any applicable regulation of the 
        Administrator or any other applicable law; or
          (3) fails to comply with any reporting requirement that may 
        be established by the Administrator relating to the carrying 
        out of functions described in this section.

                       Subtitle IV--Miscellaneous

                       CHAPTER 401--PRIME PROGRAM

Sec.
40101.  Definitions.
40102.  Establishment of program.
40103.  Uses of assistance.
40104.  Allocation of assistance; subgrants.
40105.  Matching requirement.
40106.  Applications for assistance.
40107.  Recordkeeping.
40108.  Implementation.
40109.  Authorization of appropriations.
Sec. 40101. Definitions
  In this chapter:
          (1) Capacity building service.--The term ``capacity building 
        service'' means a service 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 the program.
          (3) Disadvantaged entrepreneur.--The term ``disadvantaged 
        entrepreneur'' means a microentrepreneur that is--
                  (A) a low-income person;
                  (B) a very low-income person; or
                  (C) an entrepreneur that lacks adequate access to 
                capital or other resources essential for business 
                success, or is economically disadvantaged, as 
                determined by the Administrator.
          (4) Indian tribe.--The term ``Indian tribe'' has the meaning 
        given the term in section 103 of the Community Development 
        Banking and Financial Institutions Act of 1994 (12 U.S.C. 
        4702).
          (5) Intermediary.--The term ``intermediary'' means a private, 
        nonprofit entity that seeks to serve qualified organizations.
          (6) Low-income person.--The term ``low-income person'' has 
        the meaning given the term in section 103 of the Community 
        Development Banking and Financial Institutions Act of 1994 (12 
        U.S.C. 4702).
          (7) 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.
          (8) Microenterprise development organization or program.--The 
        term ``microenterprise development organization or program'' 
        means a nonprofit entity (including a community development 
        corporation or other nonprofit development organization or a 
        social service organization), or a program administered by such 
        an entity, that provides services to disadvantaged 
        entrepreneurs.
          (9) Microentrepreneur.--The term ``microentrepreneur'' means 
        the owner or developer of a microenterprise.
          (10) Program.--The term ``program'' means the PRIME program.
          (11) Qualified organization.--The term ``qualified 
        organization'' means--
                  (A) 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;
                  (B) an intermediary;
                  (C) 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
                  (D) an Indian tribe acting on its own, if the Indian 
                tribe certifies that no private organization or program 
                referred to in this paragraph exists within its 
                jurisdiction.
          (12) Training and technical assistance.--The term ``training 
        and technical assistance'' means service and support provided 
        to a disadvantaged entrepreneur, such as assistance for the 
        purpose of enhancing business planning, marketing, management, 
        financial management skills, and assistance for the purpose of 
        accessing financial services.
          (13) Very low-income person.--The term ``very low-income 
        person'' means a person having an income, adjusted for family 
        size, of not more than 150 percent of the poverty line (as 
        defined in section 673 of the Community Services Block Grant 
        Act (42 U.S.C. 9902), including any revision required by that 
        section).
Sec. 40102. Establishment of program
  The Administrator shall establish a microenterprise technical 
assistance and capacity building grant program, to be known as the 
program for investment in microenterprise or the PRIME program, to 
provide assistance in the form of grants to qualified organizations in 
accordance with this chapter.
Sec. 40103. Uses of assistance
  A qualified organization shall use a grant made under the program--
          (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 the organizations and 
        programs in developing microenterprise training and services;
          (3) to aid in researching and developing the best practices 
        in the field of microenterprise and technical assistance 
        programs for disadvantaged entrepreneurs; and
          (4) for such other activities as the Administrator determines 
        are consistent with the purposes of the program.
Sec. 40104. Allocation of assistance; subgrants
  (a) Allocation of Assistance.--
          (1) In general.--The Administrator shall allocate assistance 
        under the program to ensure that--
                  (A) activities described in section 40103(1) of this 
                title are funded using not less than 75 percent of 
                amounts made available for such assistance; and
                  (B) activities described in section 40103(2) of this 
                title are funded using not less than 15 percent of 
                amounts made available for such assistance.
          (2) Limit on individual assistance.--No single person may 
        receive more than 10 percent of the total funds appropriated 
        for the program in a single fiscal year.
  (b) Targeted Assistance.--The Administrator shall ensure that not 
less than 50 percent of the grants made under the program are used to 
benefit very low-income persons, including those residing on Indian 
reservations.
  (c) Subgrants.--
          (1) In general.--A qualified organization receiving 
        assistance under the program may provide grants using that 
        assistance to qualified small and emerging microenterprise 
        organizations and programs, subject to such regulations as the 
        Administrator determines to be appropriate.
          (2) Limit on administrative expenses.--Not more than 7.5 
        percent of the amount of assistance received by a qualified 
        organization under the program may be used for administrative 
        expenses in connection with the making of subgrants under 
        paragraph (1).
  (d) Diversity.--In making grants under the program, the Administrator 
shall ensure that grant recipients include both large and small 
microenterprise organizations, serving urban, rural, and Indian tribal 
communities with diverse populations.
  (e) Prohibition of Preferential Consideration of Certain SBA Program 
Participants.--In making grants under the program, the Administrator 
shall ensure that any application made by a qualified organization that 
is a participant in the microloan program does not receive preferential 
consideration over applications from other qualified organizations that 
are not participants in the microloan program.
Sec. 40105. Matching requirement
  (a) In General.--Financial assistance under the program shall be 
matched with funds from sources other than the Federal Government in 
the amount of not less than 50 cents for each dollar provided by the 
Administration.
  (b) 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 
under subsection (a).
  (c) Exception.--
          (1) In general.--In the case of an applicant for assistance 
        under the program with severe constraints on available sources 
        of matching funds, the Administrator may reduce or eliminate 
        the matching requirement under subsection (a).
          (2) Limitation.--Not more than 10 percent of the total funds 
        made available to carry out the program for any fiscal year may 
        be excepted under paragraph (1) from the matching requirement 
        under subsection (a).
Sec. 40106. Applications for assistance
  An application for assistance under the program shall be submitted in 
such form and in accordance with such procedures as the Administrator 
shall establish.
Sec. 40107. Recordkeeping
  The requirements of section 115 of the Community Development Banking 
and Financial Institutions Act of 1994 (12 U.S.C. 4714) shall apply to 
a qualified organization receiving assistance from the Administrator 
under the program as if the qualified organization were a community 
development financial institution receiving assistance from the Fund 
under subtitle A of that Act (12 U.S.C. 4701 et seq.).
Sec. 40108. Implementation
  The Administrator shall by regulation establish such requirements as 
are necessary to carry out this chapter.
Sec. 40109. Authorization of appropriations
  There are authorized to be appropriated to the Administrator to carry 
out this chapter--
        (1) $15,000,000 for fiscal year 2000;
        (2) $15,000,000 for fiscal year 2001;
        (3) $15,000,000 for fiscal year 2002; and
        (4) $15,000,000 for fiscal year 2003.

          CHAPTER 403--WOMEN'S BUSINESS ENTERPRISE DEVELOPMENT

Sec.
40301.  Definitions.
40302.  Establishment of the Interagency Committee.
40303.  Duties of the Interagency Committee.
40304.  Membership of the Interagency Committee.
40305.  Reports from the Interagency Committee.
40306.  Establishment of the National Women's Business Council.
40307.  Duties of the Council.
40308.  Membership and staff of the Council.
40309.  Studies and other research.
40310.  Authorization of appropriations.
Sec. 40301. Definitions
  In this chapter:
          (1) Control.--The term ``control'' means to exercise the 
        power to make policy decisions concerning a business.
          (2) Council.--The term ``Council'' means the National Women's 
        Business Council established under section 40306 of this title.
          (3) Interagency committee.--The term ``Interagency 
        Committee'' means the Interagency Committee on Women's Business 
        Enterprise established under section 40302 of this title.
          (4) Operate.--The term ``operate'' means to be actively 
        involved in the day-to-day management of a business.
          (5) Women's business enterprise.--The term ``women's business 
        enterprise'' means--
                  (A) a business or businesses owned by a woman or a 
                group of women; or
                  (B) the establishment, maintenance, or development of 
                a business or businesses by a woman or a group of 
                women.
          (6) Women-owned business.--The term ``women-owned business'' 
        means a small business--
                  (A) that a woman or a group of women controls and 
                operates; and
                  (B) of which not less than 51 percent is owned by a 
                woman or a group of women.
Sec. 40302. Establishment of the Interagency Committee
  There is established an interagency committee to be known as the 
Interagency Committee on Women's Business Enterprise.
Sec. 40303. Duties of the Interagency Committee
  (a) In General.--The Interagency Committee shall--
          (1) monitor, coordinate, and promote the plans, programs, and 
        operations of the Federal agencies that may contribute to the 
        establishment and growth of women's business enterprises;
          (2) develop and promote new public sector initiatives, 
        policies, programs, and plans designed to foster women's 
        business enterprises;
          (3) review, monitor, and coordinate plans and programs, 
        developed in the public sector, that affect the ability of 
        women-owned businesses to obtain capital and credit; and
          (4) promote and assist, as appropriate, in the development of 
        surveys of women-owned businesses.
  (b) Meetings.--
          (1) In general.--The Interagency Committee shall meet not 
        less than biannually at such times as the Interagency Committee 
        determines to be necessary to perform the duties under 
        subsection (a).
          (2) Quorum.--A majority of the members of the Interagency 
        Committee shall constitute a quorum for the approval of 
        recommendations or reports issued under this section.
  (c) Interaction With Council.--
          (1) Consultation.--In performing its duties under subsection 
        (a), the Interagency Committee shall consult with the Council.
          (2) Joint meetings.--The Interagency Committee--
                  (A) shall meet jointly with the Council not less 
                frequently than biannually; and
                  (B) may meet jointly with the Council more frequently 
                at the discretion of the chairperson of the Interagency 
                Committee and the chairperson of the Council.
          (3) Chairperson.--The chairperson of the Interagency 
        Committee shall serve as chairperson of any joint meeting of 
        the Interagency Committee and the Council.
Sec. 40304. Membership of the Interagency Committee
  (a) In General.--
          (1) Participants.--The Interagency Committee shall be 
        composed of one representative from each of the following:
                  (A) The Department of Commerce.
                  (B) The Department of Defense.
                  (C) The Department of Health and Human Services.
                  (D) The Department of Labor.
                  (E) The Administration.
                  (F) The Department of Transportation.
                  (G) The Department of the Treasury.
                  (H) The General Services Administration.
                  (I) The Board of Governors of the Federal Reserve.
                  (J) The Executive staff of the President engaged in 
                policymaking activities.
          (2) Appointments.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the head of each entity listed in paragraph (1) 
                shall designate a representative who--
                          (i) shall be a policymaking official within 
                        the entity; and
                          (ii) shall report directly to the head of the 
                        entity on the status of the activities of the 
                        Interagency Committee.
                  (B) Small business administration.--With respect to 
                the Administration, the representative shall be the 
                Assistant Administrator of the Office of Women's 
                Business Ownership, who shall--
                          (i) serve as the vice chairperson of the 
                        Interagency Committee;
                          (ii) report directly to the Administrator on 
                        the status of the activities on the Interagency 
                        Committee; and
                          (iii) serve as the Interagency Committee 
                        Liaison to the Council.
          (3) Other participation.--Representatives of the Federal 
        Government not listed in paragraph (1) may participate in the 
        meetings and functions of the Interagency Committee on a 
        temporary basis as needed to carry out specific Interagency 
        Committee goals.
  (b) Appointment of Chairperson.--The President, in consultation with 
the Administrator, shall appoint one of the members of the Interagency 
Committee to serve as chairperson.
  (c) Noncompensation.--A member of the Interagency Committee shall 
serve without additional pay for such membership.
  (d) Detail of Federal Employees.--On request by the chairperson of 
the Interagency Committee, the head of any Federal agency may detail 
any of the personnel of the Federal agency to assist the Interagency 
Committee in carrying out its duties under this chapter without regard 
to section 3341 of title 5.
Sec. 40305. Reports from the Interagency Committee
  The Interagency Committee, through the Administrator, shall annually 
submit to the President, the Committee on Small Business and 
Entrepreneurship of the Senate, and the Committee on Small Business of 
the House of Representatives a report that contains--
          (1) a detailed description of the activities of the 
        Interagency Committee, including a verbatim report on the 
        status of progress of the Interagency Committee in meeting its 
        responsibilities and duties under section 40303(a) of this 
        title;
          (2) the findings and conclusions of the Interagency 
        Committee; and
          (3) the Interagency Committee's recommendations for such 
        legislation and administrative actions as the Interagency 
        Committee considers appropriate to promote the development of 
        small business concerns owned and controlled by women.
Sec. 40306. Establishment of the National Women's Business Council
  There is established a council to be known as the National Women's 
Business Council, which shall serve as an independent source of advice 
and policy recommendations to--
          (1) the Interagency Committee;
          (2) the Administrator (through the Assistant Administrator of 
        the Office of Women's Business Ownership);
          (3) Congress; and
          (4) the President.
Sec. 40307. Duties of the Council
  (a) In General.--The Council shall advise and consult with the 
Interagency Committee on matters relating to the activities, functions, 
and policies of the Interagency Committee, as provided in this chapter.
  (b) Meetings.--
          (1) In general.--The Council--
                  (A) shall meet jointly with the Interagency Committee 
                as provided in section 40303(c) of this title; and
                  (B) shall meet separately at such times as the 
                Council considers necessary.
          (2) Quorum.--A majority of the members of the Council shall 
        constitute a quorum for the approval of recommendations or 
        reports issued under this section.
  (c) Recommendations and Reports.--The Council shall--
          (1) make annual recommendations for consideration by the 
        Interagency Committee; and
          (2) provide reports and make such other recommendations as 
        the Council considers appropriate to--
                  (A) the Interagency Committee;
                  (B) the President;
                  (C) the Administrator (through the Assistant 
                Administrator of the Office of Women's Business 
                Ownership); and
                  (D) the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives.
  (d) Other Duties.--The Council shall--
          (1) review, coordinate, and monitor plans and programs 
        developed in the public and private sectors that affect the 
        ability of women-owned business enterprises to obtain capital 
        and credit;
          (2) promote and assist in the development of a women's 
        business census and other surveys of women-owned businesses;
          (3) monitor and promote the plans, programs, and operations 
        of Federal agencies that may contribute to the establishment 
        and growth of women's business enterprise;
          (4) develop and promote new initiatives, policies, programs, 
        and plans designed to foster women's business enterprises;
          (5) advise and consult with the Interagency Committee in the 
        design of a comprehensive plan for a joint public-private 
        sector effort to facilitate growth and development of women's 
        business enterprises; and
          (6) not later than 90 days after the last day of each fiscal 
        year, submit to the President, the Committee on Small Business 
        and Entrepreneurship of the Senate, and the Committee on Small 
        Business of the House of Representatives, a report that 
        contains--
                  (A) a detailed description of the activities of the 
                Council, including a status report on the Council's 
                progress toward meeting its duties under this 
                subsection and subsection (a);
                  (B) the findings, conclusions, and recommendations of 
                the Council; and
                  (C) the Council's recommendations for such 
                legislation and administrative actions as the Council 
                considers appropriate to promote the development of 
                small business concerns owned and controlled by women.
  (e) Form of Information.--The information described in subparagraphs 
(A) to (C) of subsection (d)(6) shall be reported in a report under 
subsection (d) verbatim, with any separate additional, concurring, or 
dissenting views of the Administrator.
Sec. 40308. Membership and staff of the Council
  (a) Chairperson.--
          (1) In General.--The President shall appoint an individual to 
        serve as chairperson of the Council, in consultation with the 
        Administrator.
          (2) Qualifications.--The chairperson of the Council shall be 
        a prominent business woman who is qualified to head the Council 
        by virtue of her education, training, and experience.
  (b) Other Members.--The Administrator shall, after receiving the 
recommendations of the Chairman and the Ranking Member of the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives, appoint, in 
consultation with the chairperson of the Council, 14 members of the 
Council, of whom--
          (1) 4 shall be--
                  (A) owners of small business concerns; and
                  (B) members of the same political party as the 
                President;
          (2) 4 shall--
                  (A) be owners of small business concerns; and
                  (B) not be members of the same political party as the 
                President; and
          (3) 6 shall be representatives of women's business 
        organizations, including representatives of women's business 
        center sites.
  (c) Diversity.--In appointing members of the Council, the 
Administrator shall, to the extent possible, ensure that the members 
appointed reflect geographic (including both urban and rural areas), 
racial, economic, and public-private sectoral diversity.
  (d) Terms.--A member of the Council shall be appointed for a term of 
3 years.
  (e) Other Federal Service.--If, after appointment to the Council, a 
member of the Council becomes an officer or employee of the Federal 
Government, the member may continue as a member of the Council for not 
longer than the 30-day period beginning on the date on which the member 
becomes such an officer or employee.
  (f) Vacancies.--
          (1) In general.--A vacancy on the Council shall be filled not 
        later than 30 days after the date on which the vacancy occurs, 
        in the manner in which the original appointment was made, and 
        shall be subject to any conditions that applied to the original 
        appointment.
          (2) Unexpired term.--An individual chosen to fill a vacancy 
        shall be appointed for the unexpired term of the member 
        replaced.
  (g) Reimbursements.--A member of the Council shall serve without pay 
for such membership, except that a member shall be entitled to 
reimbursement for travel, subsistence, and other necessary expenses 
incurred by the member in carrying out the functions of the Council, in 
the same manner as a person serving on an advisory committee under 
section 10315 of this title.
  (h) Executive Director and Additional Employees.--
          (1) Executive director.--The Administrator, in consultation 
        with the chairperson of the Council, shall appoint an executive 
        director of the Council.
          (2) Additional employees.--On recommendation by the executive 
        director, the chairperson of the Council may appoint and fix 
        the pay of 4 additional employees of the Council, at a rate of 
        pay not to exceed the maximum rate of pay payable for a 
        position at GS-15 of the General Schedule.
          (3) Appropriations.--An appointment under paragraph (1) or 
        (2) shall be subject to the appropriation of funds.
  (i) Rates of Pay.--The executive director and staff of the Council 
may be appointed without regard to the provisions of title 5 governing 
appointments in the competitive service, and except as provided in 
subsection (e), may be paid without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that the 
executive director may not receive pay in excess of the annual rate of 
basic pay payable for a position at ES-3 of the Senior Executive Pay 
Schedule under section 5382 of title 5.
Sec. 40309. Studies and other research
  (a) In General.--The Council may conduct such studies and other 
research relating to the award of Federal prime contracts and 
subcontracts to women-owned businesses, to access to credit and 
investment capital by women entrepreneurs, or to other issues relating 
to women-owned businesses, as the Council determines to be appropriate.
  (b) Contract Authority.--In conducting any study or other research 
under this section, the Council may contract with one or more public or 
private entities.
Sec. 40310. Authorization of appropriations
  (a) In General.--There is authorized to be appropriated to carry out 
this chapter $1,000,000 for each of fiscal years 2001 through 2003, of 
which $550,000 shall be available in each such fiscal year to carry out 
section 40309 of this title.
  (b) Budget Review.--No amount made available under this section for 
any fiscal year may be obligated or expended by the Council before the 
date on which the Council reviews and approves the operating budget of 
the Council to carry out the responsibilities of the Council for that 
fiscal year.

                       CHAPTER 451--MISCELLANEOUS

Sec.
45101.  Small business economic policy.
45102.  Small Business Manufacturing Task Force.
45103.  Test program for negotiation of comprehensive small business 
          subcontracting plans.
45104.  Coordination of Federal assistance for small business concerns 
          adversely affected by NAFTA.
45105.  Disaster aid to major sources of employment.
45106.  Background check policy; fingerprinting.
45107.  Expedited resolution of contract dispute matters.
45108.  Small Business Procurement Advisory Council.
45109.  Small business energy efficiency.
45110.  Information regarding, and marketing of, programs for veterans 
          and reservists.
45111.  Outreach regarding health insurance options available to 
          children.
Sec. 45101. Small business economic policy
  (a) Declaration of Small Business Policy.--
          (1) Preservation and promotion of competitive free enterprise 
        system.--For the purpose of preserving and promoting a 
        competitive free enterprise economic system, Congress declares 
        that it is the continuing policy and responsibility of the 
        Federal Government to use all practical means and to take such 
        actions as are necessary, consistent with its needs and 
        obligations and other essential considerations of national 
        policy, to implement and coordinate all Federal agency 
        policies, programs, and activities to--
                  (A) foster the economic interests of small 
                businesses;
                  (B) ensure the existence of a competitive economic 
                climate conducive to the development, growth, and 
                expansion of small businesses;
                  (C) establish incentives to ensure that adequate 
                capital and other resources at competitive prices are 
                available to small businesses;
                  (D) reduce the concentration of economic resources 
                and expand competition; and
                  (E) provide an opportunity for entrepreneurship, 
                inventiveness, and the creation and growth of small 
                businesses.
          (2) Availability of adequate capital to small businesses.--
        Congress declares that the Federal Government is committed to a 
        policy of utilizing all reasonable means, consistent with the 
        overall economic policy goals of the Nation and the 
        preservation of the competitive free enterprise system of the 
        Nation, to establish private sector incentives that will help 
        ensure that adequate capital at competitive prices is available 
        to small businesses.
  (b) Promotion of Investment.--To fulfill the policy stated in 
subsection (a), each Federal agency shall use all reasonable means to 
coordinate, create, and sustain policies and programs that promote 
investment in small businesses, including the investments that expand 
employment opportunities and foster the effective and efficient use of 
human and natural resources in the national economy.
  (c) Report on Small Business and Competition.--
          (1) In general.--Not later than January 20 of each year, the 
        President shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report on small 
        business and competition.
          (2) Contents.--A report under paragraph (1) shall--
                  (A) examine the current role of small business in the 
                economy on an industry-by-industry basis;
                  (B) present current and historical data on 
                production, employment, investment, population, job 
                creation and retention, annual business failures, 
                annual business startups, and other economic variables 
                for small business in the economy as a whole and for 
                small business in each sector of the economy, with, to 
                the extent practicable, specific statistics divided as 
                to urban, suburban, and rural areas;
                  (C) identify economic trends that may affect the 
                small business sector and the state of competition;
                  (D)(i) examine the effects on small business and 
                competition of policies, programs, and activities, 
                including--
                          (I) the Internal Revenue Code of 1986 (26 
                        U.S.C. 1 et seq.);
                          (II) the Employee Retirement Income Security 
                        Act of 1974 (29 U.S.C. 1001 et seq.);
                          (III) the Securities Act of 1933 (15 U.S.C. 
                        77a et seq.); and
                          (IV) the Securities Exchange Act of 1934 (15 
                        U.S.C. 78a et seq.);
                  (ii) identify problems generated by such policies, 
                programs, and activities; and
                  (iii) recommend legislative and administrative 
                solutions to such problems;
                  (E) recommend a program for carrying out the policy 
                declared in subsection (a), including such 
                recommendations for legislation as the President 
                considers necessary or desirable; and
                  (F) include an appendix that discloses, for each 
                Federal agency--
                          (i) the total dollar value of all Federal 
                        contracts (including subcontracts) exceeding 
                        $10,000 in amount; and
                          (ii) the dollar amount of those contracts 
                        awarded to--
                                  (I) small businesses;
                                  (II) minority-owned businesses;
                                  (III) female-owned businesses; and
                                  (IV) veteran-owned businesses.
          (3) Detailing of information.--The information required to be 
        contained in the report under paragraph (1) shall separately 
        detail the portions of the information that are relevant to--
                  (A) small business concerns owned and controlled by 
                socially and economically disadvantaged individuals, by 
                gender;
                  (B) small business concerns owned and controlled by 
                women;
                  (C) qualified HUBZone small business concerns; and
                  (D) small business concerns owned and controlled by 
                veterans and small business concerns owned and 
                controlled by service-disabled veterans.
          (4) Supplementary reports.--The President may from time to 
        time submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives reports supplementary 
        to a report under paragraph (1) that includes such 
        supplementary or revised recommendations as the President 
        considers necessary or desirable to achieve the policy declared 
        in subsection (a).
Sec. 45102. Small Business Manufacturing Task Force
  (a) Establishment.--The Administrator shall establish a Small 
Business Manufacturing Task Force (referred to in this section as the 
``Task Force'') to address the concerns of small manufacturers.
  (b) Chair.--The Administrator shall assign a member of the Task Force 
to serve as chair of the Task Force.
  (c) Duties.--The Task Force shall--
          (1) evaluate and identify whether programs and services are 
        sufficient to serve the needs of small manufacturers;
          (2) actively promote the programs and services of the 
        Administration that serve small manufacturers; and
          (3) identify and study the unique conditions facing small 
        manufacturers and develop and propose policy initiatives to 
        support and assist small manufacturers.
  (d) Meetings.--
          (1) Frequency.--The Task Force shall meet not less than 4 
        times a year, and more frequently if necessary to perform its 
        duties.
          (2) Quorum.--A majority of the members of the Task Force 
        shall constitute a quorum to approve recommendations or 
        reports.
  (e) Personnel Matters.--
          (1) Compensation of members.--A member of the Task Force 
        shall serve without compensation in addition to that received 
        for services rendered as an officer or employee of the United 
        States.
          (2) Detail of sba employees.--Any employee of the 
        Administration may be detailed to the Task Force without 
        reimbursement and without interruption or loss of civil service 
        status or privilege.
  (f) Report.--The Task Force shall annually submit a report containing 
the findings and recommendations of the Task Force to--
          (1) the President;
          (2) the Committee on Small Business and Entrepreneurship of 
        the Senate; and
          (3) the Committee on Small Business of the House of 
        Representatives.
Sec. 45103. Test program for negotiation of comprehensive small 
                    business subcontracting plans
  (a) Test Program.--
          (1) In general.--The Secretary of Defense shall establish a 
        test program under which contracting activities in the military 
        departments and the defense agencies are authorized to 
        undertake one or more demonstration projects to determine 
        whether the negotiation and administration of comprehensive 
        subcontracting plans will reduce administrative burdens on 
        contractors while enhancing opportunities provided under 
        Department of Defense contracts for small business concerns and 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals.
          (2) Broad range of supplies and services.--In selecting the 
        contracting activities to undertake demonstration projects, the 
        Secretary of Defense shall take such action as is necessary to 
        ensure that a broad range of the supplies and services acquired 
        by the Department of Defense are included in the test program.
          (3) Consultation; public comment.--In developing the test 
        program, the Secretary of Defense shall--
                  (A) consult with the Administrator; and
                  (B) provide an opportunity for public comment on the 
                test program.
  (b) Comprehensive Small Business Subcontracting Plan.--
          (1) In general.--In a demonstration project under the test 
        program, the Secretary of a military department or head of a 
        defense agency shall negotiate, monitor, and enforce compliance 
        with a comprehensive subcontracting plan with a Department of 
        Defense contractor described in paragraph (3).
          (2) Scope.--The comprehensive subcontracting plan of a 
        contractor--
                  (A) shall apply to the entire business organization 
                of the contractor or to one or more of the contractor's 
                divisions or operating elements, as specified in the 
                subcontracting plan; and
                  (B) shall cover each Department of Defense contract 
                that is entered into by the contractor and each 
                subcontract that is entered into by the contractor as 
                the subcontractor under a Department of Defense 
                contract.
          (3) Department of defense contractor.--A Department of 
        Defense contractor referred to in paragraph (1) is, with 
        respect to a comprehensive subcontracting plan negotiated in 
        any fiscal year, a business concern that, during the 
        immediately preceding fiscal year, furnished the Department of 
        Defense with goods or services (including professional 
        services, research and development services, and construction 
        services) under at least 3 Department of Defense contracts 
        having an aggregate value of at least $5,000,000.
  (c) Waiver of Certain Subcontracting Plan Requirements.--A Department 
of Defense contractor is not required to negotiate or submit a 
subcontracting plan under section 24302(a) or 24303(c) of this title 
with respect to a Department of Defense contract if--
          (1) the contractor has negotiated a comprehensive 
        subcontracting plan under the test program that includes the 
        matters specified in section 24303(d) of this title;
          (2) such matters have been determined to be acceptable by the 
        Secretary of the military department or head of a Defense 
        Agency negotiating the comprehensive subcontracting plan; and
          (3) the comprehensive subcontracting plan applies to the 
        contract.
  (d) Failure To Make a Good Faith Effort To Comply With a Company-Wide 
Subcontracting Plan.--A contractor that has negotiated a comprehensive 
subcontracting plan under the test program shall be subject to section 
24305 of this title regarding the assessment of liquidated damages for 
failure to make a good faith effort to comply with its company-wide 
plan and the goals specified in the plan.
  (e) Termination.--The test program shall terminate on September 30, 
2010.
Sec. 45104. Coordination of Federal assistance for small business 
                    concerns adversely affected by NAFTA
  The Administrator shall coordinate Federal assistance to provide 
counseling to small business concerns adversely affected by the North 
American Free Trade Agreement.
Sec. 45105. Disaster aid to major sources of employment
  (a) In General.--The Administrator may provide any nonagricultural 
enterprise that has constituted a major source of employment in an area 
suffering a major disaster and that is no longer in substantial 
operation as a result of the disaster a loan in such amount as is 
necessary to enable the enterprise to resume operations in order to 
assist in restoring the economic viability of the disaster area.
  (b) Loan Amount.--A loan under this section shall be made without 
regard to any limitation on the amount of a loan that may otherwise be 
imposed by any other provision of law (including a regulation).
  (c) Additional Assistance.--Assistance under this section shall be in 
addition to any other Federal disaster assistance, except that such 
other assistance may be adjusted or modified to the extent that the 
Under Secretary of Emergency Preparedness and Response considers 
appropriate.
  (d) Interest.--A loan made under this section shall bear interest at 
a rate determined by the Secretary of the Treasury, taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States with remaining periods to 
maturity of 10 to 12 years, reduced by not to exceed 2 percent per 
year. In no event shall a loan made under this section bear interest at 
a rate in excess of 6 percent per year.
  (e) Deferral of Payment of Principal and Interest.--The President, if 
the President considers it necessary, may defer payments of principal 
and interest on a loan under this section for a period not to exceed 3 
years after the date of the loan. Any such deferred payments shall bear 
interest at the rate determined under subsection (d).
Sec. 45106. Background check policy; fingerprinting
  The Administrator shall not require fingerprints to be obtained for 
background check purposes from any participant in any Administration 
program who is serving on a voluntary basis and without compensation 
unless the Administrator has reasonable grounds to believe that the 
participant's record or background is such as to make the participant 
ineligible to participate in the program.
Sec. 45107. Expedited resolution of contract dispute matters
  (a) Required FAR Provision.--The Federal Acquisition Regulation shall 
include provisions that require a contracting officer--
          (1) to make every reasonable effort to respond in writing 
        within 30 days to any written request made to a contracting 
        officer with respect to a matter relating to the administration 
        of a contract that is received from a small business concern; 
        and
          (2) if the contracting officer is unable to reply within the 
        30-day period, to transmit to the contractor within that period 
        a written notification of a specific date by which the 
        contracting officer expects to respond.
  (b) Applicability.--The provision required under subsection (a) shall 
not apply to a request for a contracting officer's decision under the 
Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.).
  (c) Effect of Section.--This section does not create any right under 
the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.).
Sec. 45108. Small Business Procurement Advisory Council
  (a) Establishment.--There is established an interagency council to be 
known as the Small Business Procurement Advisory Council (referred to 
in this section as the ``Council'').
  (b) Duties.--The duties of the Council are--
          (1) to develop positions on proposed procurement regulations 
        affecting the small business community; and
          (2) to submit comments reflecting such positions to 
        appropriate regulatory authorities.
  (c) Membership.--The Council shall be composed of the following 
members:
          (1) The Administrator (or the designee of the Administrator).
          (2) The Director of the Minority Business Development Agency.
          (3) The head of each office of small and disadvantaged 
        business utilization established under section 25109 of this 
        title for each procuring agency.
  (d) Chairman.--The Council shall be chaired by the Administrator.
  (e) Meetings.--The Council shall meet at the call of the chairman as 
necessary to consider proposed procurement regulations affecting the 
small business community.
  (f) Consideration of Council Comments.--The Federal Acquisition 
Regulatory Council and other appropriate regulatory authorities shall 
consider comments submitted in a timely manner under subsection (b)(2).
Sec. 45109. Small business energy efficiency
  (a) Definitions.--In this section:
          (1) Disability.--The term ``disability'' has the meaning 
        given the term in section 3 of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12102).
          (2) Efficiency program.--the term ``efficiency program'' 
        means the small business energy efficiency program established 
        under subsection (c).
          (3) Electric utility.--The term ``electric utility'' has the 
        meaning given the term in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602).
          (4) Governmentwide program.--The term ``Governmentwide 
        program'' means the program established under subsection (b).
          (5) High-performance green building.--The term ``high-
        performance green building'' has the meaning given the term in 
        section 401 of the Energy Independence and Security Act of 2007 
        (42 U.S.C. 17061).
          (6) On-bill financing.--The term ``on-bill financing'' means 
        a low interest or no interest financing agreement between a 
        small business concern and an electric utility for the purchase 
        or installation of equipment under which--
                  (A) the regularly scheduled payment of the small 
                business concern to the electric utility is not reduced 
                by the amount of the reduction in cost attributable to 
                the new equipment; and
                  (B) that amount is credited to the electric utility 
                until the cost of the purchase or installation is 
                repaid.
          (7) Telecommuting.--The term ``telecommuting'' means the use 
        of telecommunications to perform work functions under 
        circumstances that reduce or eliminate the need to commute.
          (8) Telecommuting pilot program.--The term ``telecommuting 
        pilot program'' means the pilot program established under 
        subsection (d).
  (b) Governmentwide Program.--
          (1) In general.--The Administrator shall promulgate final 
        rules establishing the Governmentwide program authorized under 
        subsection (d) of section 337 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6307) that ensure compliance with 
        that subsection.
          (2) Assistance.--The Administrator shall develop and 
        coordinate a Governmentwide program, building on the Energy 
        Star for Small Business program, to assist small business 
        concerns in--
                  (A) becoming more energy efficient;
                  (B) understanding the cost savings from improved 
                energy efficiency; and
                  (C) identifying financing options for energy 
                efficiency upgrades.
          (3) Consultation and cooperation.--The Governmentwide program 
        shall be developed and coordinated--
                  (A) in consultation with the Secretary of Energy and 
                the Administrator of the Environmental Protection 
                Agency; and
                  (B) in cooperation with any entities that the 
                Administrator considers appropriate, such as industry 
                trade associations, industry members, and energy 
                efficiency organizations.
          (4) Availability of information.--The Administrator shall 
        make available the information and materials developed under 
        the Governmentwide program to--
                  (A) small business concerns, including smaller 
                design, engineering, and construction firms; and
                  (B) other Federal programs for energy efficiency, 
                such as the Energy Star for Small Business program.
          (5) Strategy and report.--
                  (A) Strategy required.--The Administrator shall 
                develop a strategy to educate, encourage, and assist 
                small business concerns in adopting energy efficient 
                building fixtures and equipment.
                  (B) Report.--Not later than December 31, 2008, the 
                Administrator shall submit to Congress a report 
                containing a plan to implement the strategy developed 
                under subparagraph (A).
  (c) Efficiency Program.--
          (1) Authority.--The Administrator shall establish a small 
        business energy efficiency program to provide energy efficiency 
        assistance to small business concerns through small business 
        development centers.
          (2) Small business development centers.--
                  (A) In general.--In carrying out the efficiency 
                program, the Administrator shall enter into agreements 
                with small business development centers under which 
                small business development centers shall--
                          (i) provide access to information and 
                        resources on energy efficiency practices, 
                        including on-bill financing options;
                          (ii) conduct training and educational 
                        activities;
                          (iii) offer confidential, free, one-on-one, 
                        in-depth energy audits to owners and operators 
                        of small business concerns regarding energy 
                        efficiency practices;
                          (iv) give referrals to certified 
                        professionals and other providers of energy 
                        efficiency assistance that meet such standards 
                        for educational, technical, and professional 
                        competency as the Administrator shall 
                        establish;
                          (v) to the extent not inconsistent with 
                        controlling State public utility regulations, 
                        act as a facilitator between small business 
                        concerns, electric utilities, lenders, and the 
                        Administrator to facilitate on-bill financing 
                        arrangements;
                          (vi) provide necessary support to small 
                        business concerns to--
                                  (I) evaluate energy efficiency 
                                opportunities and opportunities to 
                                design or construct high-performance 
                                green buildings;
                                  (II) evaluate renewable energy 
                                sources, such as the use of solar and 
                                small wind energy to supplement power 
                                consumption;
                                  (III) secure financing to achieve 
                                energy efficiency or to design or 
                                construct high-performance green 
                                buildings; and
                                  (IV) implement energy efficiency 
                                projects;
                          (vii) assist owners and operators of small 
                        business concerns with the development and 
                        commercialization of clean technology products, 
                        goods, services, and processes that use 
                        renewable energy sources, dramatically reduce 
                        the use of natural resources, and cut or 
                        eliminate greenhouse gas emissions through--
                                  (I) technology assessment;
                                  (II) intellectual property;
                                  (III) small business innovation 
                                research submissions under division H 
                                of subtitle II;
                                  (IV) strategic alliances;
                                  (V) business model development; and
                                  (VI) preparation for investors; and
                          (viii) help small business concerns improve 
                        environmental performance by shifting to less 
                        hazardous materials and reducing waste and 
                        emissions, including by providing assistance 
                        for small business concerns to adapt the 
                        materials they use, the processes they operate, 
                        and the products and services they produce.
                  (B) Reports.--A small business development center 
                participating in the efficiency program shall submit to 
                the Administrator and the Administrator of the 
                Environmental Protection Agency an annual report that 
                includes--
                          (i) a summary of the energy efficiency 
                        assistance provided by the small business 
                        development center under the efficiency 
                        program;
                          (ii) the number of small business concerns 
                        assisted by the small business development 
                        center under the efficiency program;
                          (iii) statistics on the total amount of 
                        energy saved as a result of assistance provided 
                        by that center under the efficiency program; 
                        and
                          (iv) any additional information that the 
                        Administrator, in consultation with the 
                        Association, determines to be necessary.
                  (C) Reports to congress.--Not later than 60 days 
                after the date on which all reports under subparagraph 
                (B) relating to a year are submitted, the Administrator 
                shall submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives a report 
                summarizing the information regarding the efficiency 
                program submitted by small business development centers 
                participating in the efficiency program.
          (3) Eligibility.--A small business development center shall 
        be eligible to participate in the efficiency program only if 
        the small business development center is accredited under 
        section 27111(b) of this title.
          (4) Selection of participating state programs.--From among 
        small business development centers submitting applications to 
        participate in the efficiency program, the Administrator--
                  (A) shall, to the maximum extent practicable, select 
                small business development centers in such a manner as 
                to promote a nationwide distribution of small business 
                development centers participating in the efficiency 
                program; and
                  (B) may not select more than one small business 
                development center in a State to participate in the 
                efficiency program.
          (5) Matching requirement.--Section 27102(g)(1) of this title 
        shall apply to assistance made available under the efficiency 
        program.
          (6) Grant amounts.--A small business development center 
        selected to participate in the efficiency program under 
        paragraph (4) shall be eligible to receive a grant in an amount 
        equal to not less than $100,000 nor more than $300,000 in each 
        fiscal year.
          (7) Evaluation and report.--The Comptroller General shall--
                  (A) not later than 30 months after the date of 
                disbursement of the first grant under the efficiency 
                program, initiate an evaluation of the efficiency 
                program; and
                  (B) not later than 6 months after the date of the 
                initiation of the evaluation under subparagraph (A), 
                submit to the Administrator, the Committee on Small 
                Business and Entrepreneurship of the Senate, and the 
                Committee on Small Business of the House of 
                Representatives a report containing--
                          (i) the results of the evaluation; and
                          (ii) any recommendations regarding whether 
                        the efficiency program, with or without 
                        modification, should be extended to include the 
                        participation of all small business development 
                        centers.
          (8) Guarantee.--To the extent not inconsistent with State 
        law, the Administrator may guarantee the timely payment of a 
        loan made to a small business concern through an on-bill 
        financing agreement on such terms and conditions as the 
        Administrator shall establish through a formal rulemaking, 
        after providing notice and an opportunity for comment.
          (9) Implementation.--Subject to amounts approved in advance 
        in appropriations Acts and separate from amounts approved to 
        carry out section 27102(a) of this title, the Administrator may 
        make grants or enter into cooperative agreements to carry out 
        this subsection.
          (10) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to make grants 
        and enter into cooperative agreements to carry out this 
        subsection.
          (11) Termination.--The authority under this subsection shall 
        terminate 4 years after the date of disbursement of the first 
        grant under the efficiency program.
  (d) Telecommuting pilot program.--
          (1) In general.--The Administrator shall conduct, in not more 
        than 5 regions of the Administration, a pilot program to 
        provide information regarding telecommuting to small business 
        concerns and to encourage small business concerns to offer 
        telecommuting options to their employees.
          (2) Special outreach to individuals with disabilities.--In 
        carrying out the telecommuting pilot program, the Administrator 
        shall make a concerted effort to provide information to--
                  (A) small business concerns owned by or employing 
                individuals with disabilities, particularly veterans 
                who are individuals with disabilities;
                  (B) Federal, State, and local agencies having 
                knowledge and expertise in assisting individuals with 
                disabilities, including veterans who are individuals 
                with disabilities; and
                  (C) any group or organization the primary purpose of 
                which is to aid individuals with disabilities or 
                veterans who are individuals with disabilities.
          (3) Permissible activities.--In carrying out the 
        telecommuting pilot program, the Administrator may--
                  (A) produce educational materials and conduct 
                presentations designed to raise awareness in the small 
                business community of the benefits and the ease of 
                telecommuting;
                  (B)(i) conduct outreach to small business concerns 
                that are considering offering telecommuting options; 
                and
                  (ii) conduct outreach as provided in paragraph (2); 
                and
                  (C) acquire telecommuting technologies and equipment 
                to be used for demonstration purposes.
          (4) Selection of regions.--In determining which regions will 
        participate in the telecommuting pilot program, the 
        Administrator shall give priority consideration to regions in 
        which Federal agencies and private-sector employers have 
        demonstrated a strong regional commitment to telecommuting.
          (5) Report.--Not later than 2 years after the date on which 
        funds are first appropriated to carry out this subsection, the 
        Administrator shall submit to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report containing 
        the results of an evaluation of the telecommuting pilot program 
        and any recommendations regarding whether the pilot program, 
        with or without modification, should be extended to include the 
        participation of all regions of the Administration.
          (6) Authorization of appropriations.--There is authorized to 
        be appropriated to the Administration $5,000,000 to carry out 
        this subsection.
          (7) Termination.--The telecommuting pilot program shall 
        terminate 4 years after the date on which funds are first 
        appropriated to carry out this subsection.
Sec. 45110. Information regarding, and marketing of, programs for 
                    veterans and reservists
  (a) In General.--The Administrator and the Secretary of Defense shall 
develop a joint website and printed materials providing information 
regarding any program for small business concerns that is available to 
veterans or reservists.
  (b) Marketing.--The Administrator may--
          (1) advertise and promote the program under section 21303 of 
        this title jointly with the Secretary of Defense and veterans' 
        service organizations; and
          (2) advertise and promote participation by lenders in the 
        program jointly with trade associations for banks or other 
        lending institutions.
Sec. 45111. Outreach regarding health insurance options available to 
                    children
  (a) Definitions.--In this section:
          (1) Medicaid program.--The term ``Medicaid program'' means 
        the program established under title XIX of the Social Security 
        Act (42 U.S.C. 1396 et seq.).
          (2) State.--The term ``State'' has the meaning given the term 
        for purposes of title XXI of the Social Security Act (42 U.S.C. 
        1397aa et seq.).
          (3) State children's health insurance program.--The term 
        ``State children's health insurance program'' means the State 
        children's health insurance program established under title XXI 
        of the Social Security Act (42 U.S.C. 1397aa et seq.).
          (4) Task force.--The term ``task force'' means the task force 
        established under subsection (b)(1).
  (b) Establishment of Task Force.--
          (1) Establishment.--There is established a task force to 
        conduct a nationwide campaign of education and outreach for 
        small business concerns regarding the availability of coverage 
        for children through private insurance options, the Medicaid 
        program, and the State children's health insurance program.
          (2) Membership.--The task force shall consist of the 
        Administrator, the Secretary of Health and Human Services, the 
        Secretary of Labor, and the Secretary of the Treasury.
          (3) Responsibilities.--The campaign conducted under this 
        subsection shall include--
                  (A) efforts to educate the owners of small business 
                concerns about the value of health coverage for 
                children;
                  (B) information regarding options available to the 
                owners and employees of small business concerns to make 
                insurance more affordable, including Federal and State 
                tax deductions and credits for health care-related 
                expenses and health insurance expenses and Federal tax 
                exclusion for health insurance options available under 
                employer-sponsored cafeteria plans under section 125 of 
                the Internal Revenue Code of 1986 (26 U.S.C. 125);
                  (C) efforts to educate the owners of small business 
                concerns about assistance available through public 
                programs; and
                  (D) efforts to educate the owners and employees of 
                small business concerns regarding the availability of 
                the hotline operated as part of the Insure Kids Now 
                program of the Department of Health and Human Services.
          (4) Implementation.--In carrying out this subsection, the 
        task force may--
                  (A) use any business partner of the Administration, 
                including--
                          (i) a small business development center;
                          (ii) a certified development company;
                          (iii) a women's business center; and
                          (iv) SCORE;
                  (B) enter into--
                          (i) a memorandum of understanding with a 
                        chamber of commerce; and
                          (ii) a partnership with any appropriate small 
                        business concern or health advocacy group; and
                  (C) designate outreach programs at regional offices 
                of the Department of Health and Human Services to work 
                with district offices of the Administration.
          (5) Website.--The Administrator shall ensure that links to 
        information on the eligibility and enrollment requirements for 
        the Medicaid program and State children's health insurance 
        program of each State are prominently displayed on the website 
        of the Administration.
          (6) Report.--
                  (A) In general.--Not later than February 4, 2011, and 
                every 2 years thereafter, the Administrator shall 
                submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives a report 
                on the status of the nationwide campaign conducted 
                under paragraph (1).
                  (B) Contents.--A report under subparagraph (A) shall 
                include a status update on all efforts made to educate 
                owners and employees of small business concerns on 
                options for providing health insurance for children 
                through public and private alternatives.

SEC. 4. CONFORMING AMENDMENTS TO POSITIVE LAW PROVISIONS OF THE UNITED 
                    STATES CODE.

  (a) Title 5.--Title 5, United States Code, is amended--
          (1) in section 601(3), by striking ``section 3 of the Small 
        Business Act'' and inserting ``section 10101 of title 53''; and
          (2) in section 3703(e)(2)(A), by striking ``section 3(a)(2) 
        of the Small Business Act'' and inserting ``section 10101 of 
        title 53''.
  (b) Title 10.--Title 10, United States Code, is amended--
          (1) in section 144--
                  (A) in subsection (b), by striking ``section 15(k) of 
                the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``section 25109 of title 53''; and
                  (B) in subsection (c)(2), by striking ``Section 15(k) 
                of the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``Section 25109 of title 53'';
          (2) in section 2225(f)--
                  (A) in paragraph (3), by striking ``section 3(a) of 
                the Small Business Act (15 U.S.C. 632(a))'' and 
                inserting ``section 10101 of title 53'';
                  (B) in paragraph (4), by striking ``section 
                8(d)(3)(C) of the Small Business Act (15 U.S.C. 
                637(d)(3)(C))'' and inserting ``section 10101 of title 
                53''; and
                  (C) in paragraph (5), by striking ``section 
                8(d)(3)(D) of the Small Business Act (15 U.S.C. 
                637(d)(3)(D))'' and inserting ``section 10101 of title 
                53'';
          (3) in section 2302(2)--
                  (A) in subparagraph (D), by striking ``section 15 of 
                the Small Business Act (15 U.S.C. 644)'' and inserting 
                ``chapter 251 of title 53,''; and
                  (B) in subparagraph (E), by striking ``section 9 of 
                the Small Business Act (15 U.S.C. 638)'' and inserting 
                ``chapters 261 and 263 of title 53'';
          (4) in section 2304--
                  (A) in subsection (b)(2), by striking ``sections 9 
                and 15 of the Small Business Act (15 U.S.C. 638, 644)'' 
                and inserting ``chapters 251, 261, and 263 of title 
                53''; and
                  (B) in subsection (f)(2)(D)(ii), by striking 
                ``section 8(a) of the Small Business Act (15 U.S.C. 
                637(a))'' and inserting ``chapters 231 to 235 of title 
                53'';
          (5) in subsections (c) and (f)(3) of section 2304b, by 
        striking ``section 8(e) of the Small Business Act (15 U.S.C. 
        637(e))'' and inserting ``section 24501 of title 53'';
          (6) in section 2304c(a)(1), by striking ``section 8(e) of the 
        Small Business Act (15 U.S.C. 637(e))'' and inserting ``section 
        24501 of title 53'';
          (7) in section 2304e(b)(1), by striking ``section 8 or 15 of 
        the Small Business Act (15 U.S.C. 637 or 644)'' and inserting 
        ``chapter 231, 233, 235, 241, 243, 245, 247, 251, or 257 of 
        title 53'';
          (8) in section 2319--
                  (A) in subsection (c)(4), by striking ``section 
                8(b)(7) of the Small Business Act (15 U.S.C. 
                637(b)(7))'' and inserting ``section 24108 of title 
                53''; and
                  (B) in subsection (d)(2), by striking ``section 3 of 
                the Small Business Act (15 U.S.C. 632)'' and inserting 
                ``section 10101 of title 53'';
          (9) in section 2320(a)(2)--
                  (A) in subparagraph (A), by striking ``section 
                9(j)(2) of the Small Business Act (15 U.S.C. 
                638(j)(2))'' and inserting ``paragraph (2)(E), (8), 
                (9), (10), (11), (12), (13), or (14) of subsection (b) 
                of section 26304 of title 53''; and
                  (B) in subparagraph (E)(i)--
                          (i) by striking ``(15 U.S.C. 638 note)''; and
                          (ii) by striking ``(15 U.S.C. 631)'';
          (10) in section 2323--
                  (A) in subsection (a)--
                          (i) in paragraph (1)(A)--
                                  (I) by striking ``section 8(d) of the 
                                Small Business Act (15 U.S.C. 637(d))'' 
                                and inserting ``chapter 221 of title 
                                53,''; and
                                  (II) by striking ``section 3(p) of 
                                the Small Business Act'' and inserting 
                                ``section 10101 of title 53''; and
                          (ii) in paragraph (3), by striking ``section 
                        8(d)(4)(B) of the Small Business Act (15 U.S.C. 
                        637(d)(4)(B))'' and inserting ``section 
                        24303(b) of title 53'';
                  (B) in subsection (e)--
                          (i) in the first sentence of paragraph 
                        (3)(A), by striking ``section 8(a) of the Small 
                        Business Act'' and inserting ``chapters 231 to 
                        235 of title 53''; and
                          (ii) in paragraph (5)--
                                  (I) in subparagraph (C)--
                                          (aa) in clause (ii), by 
                                        striking ``section 8(a) of the 
                                        Small Business Act (15 U.S.C. 
                                        637(a))'' and inserting 
                                        ``chapters 231 to 235 of title 
                                        53''; and
                                          (bb) in clause (iii), by 
                                        striking ``section 15(a) of the 
                                        Small Business Act (15 U.S.C. 
                                        644(a))'' and inserting 
                                        ``section 25101 of title 53'';
                                  (II) in subparagraph (E), by striking 
                                ``under section 8(a) of the Small 
                                Business Act (15 U.S.C. 637(a)) and 
                                under the small business set-aside 
                                program established under section 15(a) 
                                of the Small Business Act (15 U.S.C. 
                                644(a))'' and inserting ``under 
                                chapters 231 to 235 of title 53 and 
                                under the small business set-aside 
                                program established under section 25101 
                                of title 53''; and
                                  (III) in subparagraph (F), by 
                                striking ``section 8(a) of the Small 
                                Business Act (15 U.S.C. 637(a))'' and 
                                inserting ``chapters 231 to 235 of 
                                title 53'';
                  (C) in subsection (f)--
                          (i) in paragraph (1), by striking ``section 
                        3(p) of the Small Business Act'' and inserting 
                        ``section 10101 of title 53''; and
                          (ii) in paragraph (2), by striking ``section 
                        15(o)(1) of the Small Business Act (15 U.S.C. 
                        644(o)(1))'' and inserting ``section 25113 of 
                        title 53''; and
                  (D) in subsection (h), by striking ``section 8(d) of 
                the Small Business Act (15 U.S.C. 637(d))'' each place 
                it appears and inserting ``chapter 243 of title 53'';
          (11) in section 2323a, in the matter preceding paragraph (1), 
        by striking ``section 8(d) of the Small Business Act (15 U.S.C. 
        637(d))'' and inserting ``chapter 243 of title 53'';
          (12) in section 2382(c)(4), by striking ``section 3(a) of the 
        Small Business Act (15 U.S.C. 632(a))'' and inserting ``section 
        10101 of title 53'';
          (13) in section 2410d(b)(1), by striking ``section 8(d) of 
        the Small Business Act (15 U.S.C. 637(d))'' and inserting 
        ``chapter 243 of title 53'';
          (14) in section 2500, by striking paragraphs (11) and (12) 
        and inserting the following:
          ``(11) The term `Small Business Innovation Research Program' 
        means the program established under section 10710(a), 
        paragraphs (4) to (6) of section 26102, sections 26301 to 
        26304, section 26310, and section 26341 of title 53.
          ``(12) The term `Small Business Technology Transfer Program' 
        means the program established under section 10710(a), 
        paragraphs (4) to (6) of section 26102, and sections 26321 to 
        26323 of title 53.'';
          (15) in section 2855(b)--
                  (A) in paragraph (1)(B), by striking ``the Small 
                Business Act (15 U.S.C. 631 et seq.)'' and inserting 
                ``subtitle II of title 53''; and
                  (B) in paragraph (3), by striking ``section 8(a) of 
                the Small Business Act (15 U.S.C. 637(a))'' and 
                inserting ``chapters 231 to 235 of title 53'';
          (16) in section 3024--
                  (A) in subsection (b), by striking ``section 15(k) of 
                the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``section 25109 of title 53''; and
                  (B) in subsection (c)(2), by striking ``Section 15(k) 
                of the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``Section 25109 of title 53'';
          (17) in section 5028--
                  (A) in subsection (b), by striking ``section 15(k) of 
                the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``section 25109 of title 53''; and
                  (B) in subsection (c)(2), by striking ``Section 15(k) 
                of the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``Section 25109 of title 53''; and
          (18) in section 8024--
                  (A) in subsection (b), by striking ``section 15(k) of 
                the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``section 25109 of title 53''; and
                  (B) in subsection (c)(2), by striking ``Section 15(k) 
                of the Small Business Act (15 U.S.C. 644(k))'' and 
                inserting ``Section 25109 of title 53''.
  (c) Title 11.--Title 11, United States Code, is amended--
          (1) in section 109(b)(2), by striking ``a New Markets Venture 
        Capital company as defined in section 351 of the Small Business 
        Investment Act of 1958, a small business investment company 
        licensed by the Small Business Administration under subsection 
        (c) or (d) of section 301 of the Small Business Investment Act 
        of 1958'' and inserting ``a new markets venture capital company 
        (as defined in section 30501 of title 53), a small business 
        investment company (as defined in section 30501 of title 53)''; 
        and
          (2) in section 1102(a)(4), by striking ``section 3(a)(1) of 
        the Small Business Act'' and inserting ``subparagraphs (A) and 
        (B) of section 10101(70) of title 53''.
  (d) Title 13.--Title 13, United States Code, is amended in section 
91(d)(4)(A) by striking ``section 3(a) of the Small Business Act'' and 
inserting ``section 10101 of title 53''.
  (e) Title 14.--Title 14, United States Code, is amended--
          (1) in section 681(a), by striking ``section 8(a) of the 
        Small Business Act (15 U.S.C. 637(a))'' and inserting 
        ``chapters 231 to 235 of title 53''; and
          (2) in section 687(g)(3), by striking ``section 8(a) of the 
        Small Business Act (15 U.S.C. 637(a))'' and inserting 
        ``chapters 231 to 235 of title 53''.
  (f) Title 18.--Title 18, United States Code, is amended--
          (1) in section 20(5), by striking ``section 103 of the Small 
        Business Investment Act of 1958 (15 U.S.C. 662)'' and inserting 
        ``section 30101 of title 53''; and
          (2) in section 1014, by striking ``section 103 of the Small 
        Business Investment Act of 1958 (15 U.S.C. 662)'' and inserting 
        ``section 30101 of title 53''.
  (g) Title 23.--Title 23, United States Code, is amended in section 
505(b)(3) by striking ``section 9 of the Small Business Act (15 U.S.C. 
638)'' and inserting ``chapters 261 and 263 of title 53''.
  (h) Title 31.--Title 31, United States Code, is amended--
          (1) in section 3554(c)(2), by striking ``(within the meaning 
        of section 3(a) of the Small Business Act)'' and inserting 
        ``(as defined in section 10101 of title 53)'';
          (2) in section 3718(b)--
                  (A) in paragraph (1)(B), by striking ``(as defined in 
                section 3(p) of the Small Business Act)'' and inserting 
                ``(as defined in section 10101 of title 53)''; and
                  (B) by striking paragraph (3) and inserting the 
                following:
          ``(3) Each agency shall use its best efforts to assure that 
        not less than 10 percent of the amounts of all claims referred 
        to private counsel by that agency under paragraph (2) are 
        referred to law firms owned and controlled by socially and 
        economically disadvantaged individuals and law firms that are 
        qualified HUBZone small business concerns. For purposes of this 
        paragraph--
                  ``(A) the term `law firm owned and controlled by 
                socially and economically disadvantaged individuals' 
                means a law firm that meets the requirements set forth 
                in clauses (i) and (ii) of section 10101(72)(A) of 
                title 53 and regulations issued under those clauses;
                  ``(B) `socially and economically disadvantaged 
                individuals' shall be presumed to include the groups 
                and individuals described in subclause (1)(B) of the 
                contract clause described in section 24301(c) of title 
                53; and
                  ``(C) the term `qualified HUBZone small business 
                concern' has the meaning given the term in section 
                10101 of title 53.''; and
          (3) in section 6701(f)(3)--
                  (A) in subparagraph (A), by striking ``section 3 of 
                the Small Business Act'' and inserting ``section 10101 
                of title 53'';
                  (B) in subparagraph (B), by striking ``has the 
                meaning such term has under section 8(d) of the Small 
                Business Act and relevant subcontracting regulations 
                promulgated pursuant to that section'' and inserting 
                ``has the meaning that the term has for purposes of 
                chapter 243 of title 53 (including relevant regulations 
                promulgated under that chapter)''; and
                  (C) in subparagraph (C), by striking ``section 3(p) 
                of the Small Business Act (15 U.S.C. 632(o))'' and 
                inserting ``section 10101 of title 53''.
  (i) Title 35.--Title 35, United States Code, is amended--
          (1) in section 41(h)(1), by striking ``as defined under 
        section 3 of the Small Business Act'' and inserting ``(as 
        defined in section 10101 of title 53)''; and
          (2) in section 201(h), by striking ``as defined at section 2 
        of Public Law 85-536 (15 U.S.C. 632)'' and inserting ``as 
        defined in section 10101 of title 53''.
  (j) Title 38.--Title 38, United States Code, is amended--
          (1) in section 3117(b)(1), by striking ``section 8 of the 
        Small Business Act (15 U.S.C. 633(b))'' and inserting ``section 
        10321(o) of title 53'';
          (2) in section 3452--
                  (A) in the third sentence of subsection (b), by 
                striking ``section 7(i)(1) of the Small Business Act 
                (15 U.S.C. 636(i)(1))'' and inserting ``section 20504 
                of title 53'';
                  (B) in subsection (h)--
                          (i) in paragraph (1), by striking ``section 
                        21 of the Small Business Act (15 U.S.C. 648)'' 
                        and inserting ``chapter 271 of title 53''; and
                          (ii) in paragraph (2), by striking ``section 
                        33 of the Small Business Act (15 U.S.C. 
                        657c))'' and inserting ``section 27514 of title 
                        53''; and
                  (C) in paragraphs (1) and (2) of section 3742(d), by 
                striking ``the Small Business Act (15 U.S.C. 631 et 
                seq.)'' and inserting ``subtitle II of title 53''; and
          (3) in section 3675(c)(2), by striking ``(as defined pursuant 
        to section 3(a) of the Small Business Act (15 U.S.C. 632(a)))'' 
        and inserting ``(as defined in section 10101 of title 53)''.
  (k) Title 39.--Section 3641(h) of title 39, United States Code, is 
amended by striking ``section 3 of the Small Business Act'' and 
inserting ``section 10101 of title 53''.
  (l) Title 44.--Title 44, United States Code, is amended--
          (1) in subsections (c)(4) and (i)(1) of section 3506, by 
        striking ``section 3 of the Small Business Act (15 U.S.C. 
        632)'' and inserting ``section 10101 of title 53''; and
          (2) in section 3520--
                  (A) in subsections (c)(2) and (h), by striking 
                ``section 3 of the Small Business Act (15 U.S.C. 632)'' 
                and inserting ``section 10101 of title 53''; and
                  (B) in subsections (e)(3) and (f)(3), by striking 
                ``section 30(b) of the Small Business Act (15 U.S.C. 
                657(b))'' and inserting ``section 10312(b) of title 
                53''.
  (m) Title 46.--Section 54101(h)(1) of title 46, United States Code, 
is amended by striking ``(within the meaning of section 3 of the Small 
Business Act (15 U.S.C. 632))'' and inserting ``(as defined in section 
10101 of title 53)''.
  (n) Title 49.--Title 49, United States Code, is amended--
          (1) in section 13709(h)(1)(A), by striking ``small-business 
        concern under the Small Business Act (15 U.S.C. 631 et seq.)'' 
        and inserting ``small business concern under subtitles I and II 
        of title 53'';
          (2) in section 40110(d)(2)(D), by striking ``The Small 
        Business Act (15 U.S.C. 631 et seq.)'' and inserting 
        ``Subtitles I and II of title 53'';
          (3) in section 46301(i), by striking ``section 3 of the Small 
        Business Act (15 U.S.C. 632)'' and inserting ``section 10101 of 
        title 53'';
          (4) in paragraphs (2), (4)(B), and (6) of section 47107(e), 
        by striking ``(as defined in section 3(p) of the Small Business 
        Act)'' and inserting ``(as defined in section 10101 of title 
        53)''; and
          (5) in section 47113(a)--
                  (A) in paragraph (1)(A), by striking ``section 3 of 
                the Small Business Act (15 U.S.C. 632)'' and inserting 
                ``section 10101 of title 53'';
                  (B) in paragraph (2), by striking ``in section 8(d) 
                of the Act (15 U.S.C. 637(d)) and relevant 
                subcontracting regulations prescribed under section 
                8(d)'' and inserting ``for purposes of chapter 221 of 
                title 53 (including relevant subcontracting regulations 
                prescribed under that chapter)''; and
                  (C) in paragraph (3), by striking ``section 3(p) of 
                the Small Business Act (15 U.S.C. 632(o))'' and 
                inserting ``section 10101 of title 53''.

SEC. 5. CONFORMING AMENDMENTS TO NON-POSITIVE LAW PROVISIONS OF THE 
                    UNITED STATES CODE.

  (a) Title 6.--
          (1) Section 853(c) of the Homeland Security Act of 2002 (6 
        U.S.C. 423(c)) is amended by striking ``section 15(j) of the 
        Small Business Act (15 U.S.C. 644(j))'' and inserting ``section 
        25108 of title 53, United States Code,''.
          (2) Section 856(b) of the Homeland Security Act of 2002 (6 
        U.S.C. 426(b)) is amended by striking ``Subclause (II) of 
        section 8(a)(1)(D)(i) of the Small Business Act (15 U.S.C. 
        637(a)(1)(D)(i)) and clause (ii) of section 31(b)(2)(A) of such 
        Act (15 U.S.C. 657a(b)(2)(A))'' and inserting ``sections 
        23305(a)(2) and 25303(3) of title 53, United States Code,''.
  (b) Title 7.--
          (1) Section 623(a) of the Agricultural Credit Act of 1987 (7 
        U.S.C. 1985 note, Public Law 100-233) is amended by striking 
        ``section 8(a)(5) of the Small Business Act (15 U.S.C. 
        637(a)(5))'' and inserting ``section 10101 of title 53, United 
        States Code,''.
          (2) Section 352 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2000) is amended--
                  (A) in subsection (a)(3), by striking ``the Small 
                Business Act (15 U.S.C. 631 et seq.)'' and inserting 
                ``subtitle II of title 53, United States Code,''; and
                  (B) in subsection (b)(1)(B), by striking ``the Small 
                Business Act (15 U.S.C. 631 et seq.)'' and inserting 
                ``subtitle II of title 53, United States Code''.
          (3) Section 1462(b) of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310(b)) 
        is amended by striking ``section 9 of the Small Business Act 
        (15 U.S.C. 638)'' and inserting ``chapters 261 and 263 of title 
        53, United States Code''.
          (4) Section 203(f)(4)(B) of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5623(f)(4)(B)) is amended by striking ``small-
        business concern described in section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a))'' and inserting ``small 
        business concern (as defined in section 10101 of title 53, 
        United States Code)''.
          (5) Section 1670(a)(5) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5923(a)(5)) is 
        amended by striking ``the term `small-business concern' by 
        section 3(a) of the Small Business Act'' and inserting ``the 
        term `small business concern' in section 10101 of title 53, 
        United States Code''.
          (6) Section 404(d)(3) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7624(d)(3)) is amended by striking ``section 9 of the Small 
        Business Act (15 U.S.C. 638)'' and inserting ``chapters 261 and 
        263 of title 53, United States Code''.
  (c) Title 10.--
          (1) Section 817(a)(2)(D)(ii) of the National Defense 
        Authorization Act for Fiscal Year 2006 (10 U.S.C. 2302 note, 
        Public Law 109-163) is amended by striking ``section 8(a) of 
        the Small Business Act (15 U.S.C. 637(a))'' and inserting 
        ``chapters 231 to 235 of title 53, United States Code''.
          (2) Section 853(c) of the National Defense Authorization Act 
        for Fiscal Year 2004 (10 U.S.C. 2302 note, Public Law 108-136) 
        is amended by striking ``section 15(g)(1) of the Small Business 
        Act (15 U.S.C. 644(g)(1))'' and inserting ``section 25106(a) of 
        title 53, United States Code''.
          (3) Section 812(e) of the National Defense Authorization Act 
        for Fiscal Year 2000 (10 U.S.C. 2302 note, Public Law 106-65) 
        is amended by striking ``the same meaning as the meaning of 
        such term as used in the Small Business Act (15 U.S.C. 631 et 
        seq.)'' and inserting ``the meaning given the term `small 
        business concern' in section 10101 of title 53, United States 
        Code''.
          (4) Section 831 of the National Defense Authorization Act for 
        Fiscal Year 1991 (10 U.S.C. 2302 note, Public Law 101-510) is 
        amended--
                  (A) in subsection (f)(7)(A), by striking ``section 21 
                of the Small Business Act (15 U.S.C. 648)'' and 
                inserting ``chapter 271 of title 53, United States 
                Code'';
                  (B) in subsection (h)--
                          (i) in paragraph (1), by striking ``the Small 
                        Business Act'' and inserting ``subtitles I and 
                        II of title 53, United States Code''; and
                          (ii) in paragraph (2)--
                                  (I) by striking ``section 8 of the 
                                Small Business Act (15 U.S.C. 637)'' 
                                and inserting ``chapters 231 to 235 of 
                                title 53, United States Code''; and
                                  (II) by striking ``the Small Business 
                                Act'' and inserting ``subtitle I or II 
                                of title 53, United States Code'';
                  (C) in subsection (k), by striking ``section 8(d) of 
                the Small Business Act (15 U.S.C. 637(d))'' and 
                inserting ``chapter 243 of title 53, United States 
                Code,''; and
                  (D) in subsection (m)--
                          (i) in paragraph (1), by striking ``section 
                        3(a) of the Small Business Act (15 U.S.C. 
                        632(a))'' and inserting ``section 10101(70) of 
                        title 53, United States Code,'';
                          (ii) in paragraph (2)--
                                  (I) in subparagraph (B), by striking 
                                ``section 8(a)(13) of the Small 
                                Business Act (15 U.S.C. 637(a)(13))'' 
                                and inserting ``section 23101 of title 
                                53, United States Code,'';
                                  (II) in subparagraph (C), by striking 
                                ``section 8(a)(15) of the Small 
                                Business Act (15 U.S.C. 637(a)(15))'' 
                                and inserting ``section 10101 of title 
                                53, United States Code'';
                                  (III) in subparagraph (E), by 
                                striking ``section 8(d)(3)(D) of the 
                                Small Business Act (15 U.S.C. 
                                637(d)(3)(D))'' and inserting ``section 
                                10101 of title 53, United States 
                                Code'';
                                  (IV) in subparagraph (F), by striking 
                                ``section 8(d)(3) of the Small Business 
                                Act'' and inserting ``section 10101 of 
                                title 53, United States Code''; and
                                  (V) in subparagraph (G), by striking 
                                ``section 3(p) of the Small Business 
                                Act'' and inserting ``section 10101 of 
                                title 53, United States Code'';
                          (iii) in paragraph (3), by striking ``in 
                        section 8(d)(3)(C) of the Small Business Act 
                        (15 U.S.C. 637(d)(3)(C))'' and inserting ``for 
                        purposes of chapter 243 of title 53, United 
                        States Code''; and
                          (iv) in paragraph (6), by striking ``section 
                        8(d) of the Small Business Act (15 U.S.C. 
                        637(d))'' and inserting ``chapter 221 of title 
                        53, United States Code''.
          (5) Section 2723(c) of Public Law 98-369 (10 U.S.C. 2304 
        note) is amended by striking ``section 8(a) of the Small 
        Business Act (15 U.S.C. 637(a))'' and inserting ``chapters 231 
        to 235 of title 53, United States Code''.
          (6) Section 8025(b) of the Department of Defense 
        Appropriations Act, 2004 (10 U.S.C. 2410d note, Public Law 108-
        87), is amended by striking ``section 8(d) of the Small 
        Business Act (15 U.S.C. 637(d))'' and inserting ``chapter 243 
        of title 53, United States Code,''.
          (7) Section 2912(b) of the National Defense Authorization Act 
        for Fiscal Year 1994 (10 U.S.C. 2687 note, Public Law 103-160) 
        is amended--
                  (A) in paragraph (1), by striking ``means a business 
                concern meeting the requirements of section 3 of the 
                Small Business Act (15 U.S.C. 632)'' and inserting 
                ``has the meaning given the term in section 10101 of 
                title 53, United States Code''; and
                  (B) in paragraph (2), by striking ``the business 
                concerns referred to in section 8(d)(1) of such Act'' 
                and inserting ``a qualified HUBZone small business 
                concern, small business concern owned and operated by 
                service-disabled veterans, small business concern owned 
                and operated by socially and economically disadvantaged 
                individuals, small business concern owned and operated 
                by veterans, small business concern owned and operated 
                by women, or other small business concern (as those 
                terms are defined in section 10101 of title 53, United 
                States Code)''.
  (d) Title 12.--
          (1) Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 
        U.S.C. 635(b)(1)) is amended--
                  (A) in subparagraph (E)--
                          (i) in clause (iii)(II), by striking 
                        ``socially and economically disadvantaged small 
                        business concerns (as defined in section 
                        8(a)(4) of the Small Business Act), small 
                        business concerns (as defined in section 3(a) 
                        of the Small Business Act) owned by women, and 
                        small business concerns (as defined in section 
                        3(a) of the Small Business Act)'' and inserting 
                        ``small business concerns owned and controlled 
                        by socially and economically disadvantaged 
                        individuals (as defined in section 10101 of 
                        title 53, United States Code), small business 
                        concerns (as defined in section 10101 of title 
                        53, United States Code) owned by women, and 
                        other small business concerns (as defined in 
                        section 10101 of title 53, United States 
                        Code),'';
                          (ii) in clause (v), by striking ``(as defined 
                        under section 3 of the Small Business Act)'' 
                        and inserting ``(as defined in section 10101 of 
                        title 53, United States Code),''; and
                          (iii) in clause (vii)(I), by striking 
                        ``section 103 of the Small Business Investment 
                        Act of 1958'' and inserting ``section 30101 of 
                        title 53, United States Code,''; and
                  (B) in subparagraph (H)(iii), by striking ``(as such 
                term is defined in section 3 of the Small Business 
                Act)'' and inserting ``(as defined in section 10101 of 
                title 53, United States Code),''.
          (2) Section 8 of the Export-Import Bank Act of 1945 (12 
        U.S.C. 635g) is amended--
                  (A) in subsection (c), by striking ``(as defined in 
                section 3(a) of the Small Business Act)'' and inserting 
                ``(as defined in section 10101 of title 53, United 
                States Code)'';
                  (B) in subsection (d), by striking ``(as defined in 
                section 3(a) of the Small Business Act)'' and inserting 
                ``(as defined in section 10101 of title 53, United 
                States Code)''; and
                  (C) in subsection (e), by striking ``socially and 
                economically disadvantaged small business concerns (as 
                defined in section 8(a)(4) of the Small Business Act), 
                small business concerns (as defined in section 3(a) of 
                the Small Business Act) owned by women, and small 
                business concerns (as defined in section 3(a) of the 
                Small Business Act)'' and inserting ``small business 
                concerns owned and controlled by socially and 
                economically disadvantaged individuals (as defined in 
                section 10101 of title 53, United States Code), small 
                business concerns (as defined in section 10101 of title 
                53, United States Code) owned by women, and other small 
                business concerns (as defined in section 10101 of title 
                53, United States Code)''.
          (3) Section 11(h) of the Federal Home Loan Bank Act (12 
        U.S.C. 1431(h)) is amended by striking ``formed pursuant to 
        section 301 of the Small Business Investment Act of 1958'' and 
        inserting ``(as defined in section 30301 of title 53, United 
        States Code)''.
          (4) Section 21A(b)(13) of the Federal Home Loan Bank Act (12 
        U.S.C. 1441a(b)(13)) is amended by striking ``(as defined in 
        section 3(p) of the Small Business Act)'' and inserting ``(as 
        defined in section 10101 of title 53, United States Code),''.
          (5) Section 5(c)(4) of the Home Owners' Loan Act (12 U.S.C. 
        1464(c)(4)) is amended--
                  (A) in subparagraph (D), by striking ``small business 
                investment company formed pursuant to section 301(d) of 
                the Small Business Investment Act of 1958'' and 
                inserting ``specialized small business investment 
                company (as defined in section 30301 of title 53, 
                United States Code)''; and
                  (B) in subparagraph (F), by striking ``New Markets 
                Venture Capital company as defined in section 351 of 
                the Small Business Investment Act of 1958'' and 
                inserting ``new markets venture company (as defined in 
                section 30301 of title 53, United States Code)''.
          (6) Section 951(c)(3) of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833a(c)(3)) 
        is amended by striking ``section 16(a) of the Small Business 
        Act (15 U.S.C. 645(a))'' and inserting ``section 10501 of title 
        53, United States Code''.
          (7) Section 208(i)(8) of the Small Business Loan 
        Securitization and Secondary Market Enhancement Act of 1994 (12 
        U.S.C. 1835(i)(8)) is amended by striking ``section 3(a) of the 
        Small Business Act'' and inserting ``section 10101 of title 53, 
        United States Code''.
          (8) Section 103(b)(1)(A) of the National Consumer Cooperative 
        Bank Act (12 U.S.C. 3013(b)(1)(A)) is amended by striking 
        ``section 3 of the Small Business Act'' and inserting ``section 
        10101 of title 53, United States Code''.
          (9) Section 103(6) of the Community Development Banking and 
        Financial Institutions Act of 1994 (12 U.S.C. 4702(6)) is 
        amended by striking ``the Small Business Investment Act of 
        1958'' and inserting ``subtitle III of title 53, United States 
        Code''.
  (e) Title 15.--
          (1) Section 3(c) of the Securities Act of 1933 (15 U.S.C. 
        77c(c)) is amended by striking ``the Small Business Investment 
        Act of 1958'' and inserting ``subtitle III of title 53, United 
        States Code,''.
          (2) Section 304(e) of the Trust Indenture Act of 1939 (15 
        U.S.C. 77ddd(e)) is amended by striking ``the Small Business 
        Investment Act of 1958'' and inserting ``subtitle III of title 
        53, United States Code,''.
          (3) Section 3(a) of the Securities Exchange Act of 1934 (15 
        U.S.C. 78c(a)) is amended--
                  (A) in paragraph (53)(B)(ii), by striking ``section 
                3(a) of the Small Business Act'' and inserting 
                ``section 10101 of title 53, United States Code''; and
                  (B) in paragraph (54)(A)(iv), by striking ``licensed 
                by the United States Small Business Administration 
                under section 301(c) or (d) of the Small Business 
                Investment Act of 1958'' and inserting ``(as defined in 
                section 30101 of title 53, United States Code)''.
          (4) Section 2(a) of the Investment Company Act of 1940 (15 
        U.S.C. 80a-2(a)) is amended--
                  (A) in paragraph (46)(B), by striking ``the Small 
                Business Investment Act of 1958'' and inserting 
                ``subtitle III of title 53, United States Code,''; and
                  (B) in paragraph (47)(C), by striking ``the Small 
                Business Investment Act of 1958'' and inserting 
                ``subtitle III of title 53, United States Code''.
          (5) Section 18(k) of the Investment Company Act of 1940 (15 
        U.S.C. 80a-18(k)) is amended by striking ``the Small Business 
        Investment Act of 1958'' and inserting ``subtitle III of title 
        53, United States Code''.
          (6) Section 61(a)(4) of the Investment Company Act of 1940 
        (15 U.S.C. 80a-60(a)(4)) is amended by striking ``the Small 
        Business Investment Act of 1958'' and inserting ``subtitle III 
        of title 53, United States Code,''.
          (7) Section 234 of the Disaster Relief Act of 1970 (15 U.S.C. 
        636b) is amended in the second sentence by striking ``sections 
        231, 232, 236(b) and 237'' and inserting ``section 236(b)''.
          (8) Section 235 of the Disaster Relief Act of 1970 (15 U.S.C. 
        636c) is amended by striking ``section 231, 232, or 233'' and 
        inserting ``section 233''.
          (9) Section 237(a) of the Disaster Relief Act of 1970 (15 
        U.S.C. 636d(a)) is amended in the first sentence by striking 
        ``The Small Business Administration in the case of a 
        nonagricultural enterprise, and the Farmers Home Administration 
        in the case of an agricultural enterprise, are authorized to 
        provide any industrial, commercial, agricultural, or other 
        enterprise, which'' and inserting ``The Secretary of 
        Agriculture may provide an agricultural enterprise that''.
          (10) Section 704(a)(9) of the Consumer Credit Protection Act 
        (15 U.S.C. 1691c(a)(9)) is amended by striking ``The Small 
        Business Investment Act of 1958'' and inserting ``subtitle III 
        of title 53, United States Code''.
  (f) Title 16.--
          (1) Section 14(i)(1) of the National Forest Management Act of 
        1976 (16 U.S.C. 472a(i)(1)) is amended by striking ``the Small 
        Business Act, as amended'' and inserting ``subtitles I and II 
        of title 53, United States Code''.
          (2) Section 329(c)(1) of the Department of the Interior and 
        Related Agencies Appropriations Act, 1999 (16 U.S.C. 
        535a(c)(1)), is amended by striking ``the Small Business Act 
        (15 U.S.C. 631 et seq.)'' and inserting ``subtitles I and II of 
        title 53, United States Code''.
          (3) Section 705(f) of the Alaska National Interest Lands 
        Conservation Act (16 U.S.C. 539d(f)) is amended by striking 
        ``the Small Business Act as amended (15 U.S.C. 631 et seq.)'' 
        and inserting ``subtitles I and II of title 53, United States 
        Code''.
  (g) Title 19.--
          (1) Section 254(c) of the Trade Act of 1974 (19 U.S.C. 
        2344(c)) is amended by ``striking section 7(a) of the Small 
        Business Act'' and inserting ``division B of subtitle II of 
        title 53, United States Code''.
          (2) Section 255(d)(1) of the Trade Act of 1974 (19 U.S.C. 
        2345(d)(1)) is amended by striking ``the Small Business Act'' 
        and inserting ``subtitles I and II of title 53, United States 
        Code,''.
          (3) Section 256(a) of the Trade Act of 1974 (19 U.S.C. 
        2346(a)) is amended by striking ``the Small Business Act'' and 
        inserting ``subtitles I and II of title 53, United States 
        Code''.
  (h) Title 20.--Section 142 of the Higher Education Act of 1965 (20 
U.S.C. 1018a) is amended--
          (1) in subsection (d)(2)(A), by striking ``subsections (e), 
        (f), and (g) of section 8 of the Small Business Act (15 U.S.C. 
        637)'' and inserting ``section 24501 of title 53, United States 
        Code'';
          (2) in subsection (g)(6), by striking ``section 8(h) of the 
        Small Business Act (15 U.S.C. 637(h))'' and inserting ``section 
        24701 of title 53, United States Code,''; and
          (3) in subsection (h)(1)(B), by striking ``section 15(a) of 
        the Small Business Act (15 U.S.C. 644(a))'' and inserting 
        ``section 25101 of title 53, United States Code''.
  (i) Title 22.--Section 310(c)(1) of the Chemical Weapons Convention 
Implementation Act of 1998 (22 U.S.C. 6729(c)(1)) is amended by 
striking ``section 3 of the Small Business Act'' and inserting 
``section 10101 of title 53, United States Code''.
  (j) Title 23.--
          (1) Section 1101(b)(1) of the Safe, Accountable, Flexible, 
        Efficient Transportation Equity Act: A Legacy for Users (23 
        U.S.C. 101 note, Public Law 109-59) is amended--
                  (A) in subparagraph (A), by striking ``section 3 of 
                the Small Business Act (15 U.S.C. 632)'' and inserting 
                ``section 10101 of title 53, United States Code''; and
                  (B) in subparagraph (B), by striking ``section 8(d) 
                of the Small Business Act (15 U.S.C. 637(d))'' and 
                inserting ``chapter 243 of title 53, United States 
                Code,''.
          (2) Section 1101(b) of the Transportation Equity Act for the 
        21st Century (23 U.S.C. 101 note, Public Law 105-178) is 
        amended--
                  (A) in subparagraph (A), by striking ``section 3 of 
                the Small Business Act (15 U.S.C. 632)'' and inserting 
                ``section 10101 of title 53, United States Code''; and
                  (B) in subparagraph (B), by striking ``section 8(d) 
                of the Small Business Act (15 U.S.C. 637(d))'' and 
                inserting ``chapter 243 of title 53, United States 
                Code,''.
  (k) Title 25.--
          (1) Section 105(a)(3)(C)(ii)(X) of the Indian Self-
        Determination Act (25 U.S.C. 450j(a)(3)(C)(ii)(X)) is amended 
        by striking ``The Small Business Act (15 U.S.C. 631 et seq.)'' 
        and inserting ``Subtitles I and II of title 53, United States 
        Code''.
          (2) Section 3 of the Indian Financing Act of 1974 (25 U.S.C. 
        1452) is amended in subsections (h) and (i) by striking 
        ``section 410 of the Small Business Investment Act of 1958, as 
        amended (15 U.S.C. 661, 694a)'' and inserting ``section 32101 
        of title 53, United States Code''.
          (3) Section 218(b)(1) of the Indian Financing Act of 1974 (25 
        U.S.C. 1497a(b)(1)) is amended by striking ``section 411 of the 
        Small Business Investment Act of 1958, as amended (15 U.S.C. 
        661, 694b)'' and inserting ``section 32102 of title 53, United 
        States Code''.
  (l) Title 29.--Section 211 of the Assistive Technology Act of 1998 
(29 U.S.C. 3031) is amended--
          (1) in subsection (a), by striking ``small-business concern, 
        as described in section 3(a) of the Small Business Act (15 
        U.S.C. 632(a))'' and inserting ``small business concern (as 
        defined in section 10101 of title 53, United States Code)''; 
        and
          (2) in subsection (b)--
                  (A) in the first sentence, by striking ``section 9(g) 
                of the Small Business Act (15 U.S.C. 638(g))'' and 
                inserting ``section 26302 of title 53, United States 
                Code''; and
                  (B) in the second sentence, by striking ``section 
                9(f) of such Act (15 U.S.C. 638(g))'' and inserting 
                ``section 26301 of title 53, United States Code''.
  (m) Title 26.--
          (1) Section 243(a)(2) of the Internal Revenue Code of 1986 
        (26 U.S.C. 243(a)(2)) is amended by striking ``the Small 
        Business Investment Act of 1958 (15 U.S.C. 661 and following)'' 
        and inserting ``subtitle III of title 53, United States Code''.
          (2) Section 246A(b)(2) of the Internal Revenue Code of 1986 
        (26 U.S.C. 246A(b)(2)) is amended by striking ``the Small 
        Business Investment Act of 1958'' and inserting ``subtitle III 
        of title 53, United States Code''.
          (3) Section 514(c)(6)(A)(ii) of the Internal Revenue Code of 
        1986 (26 U.S.C. 514(c)(6)(A)(ii)) is amended--
                  (A) in the matter preceding subclause (I), by 
                striking ``the Small Business Investment Act of 1958'' 
                and inserting ``subtitle III of title 53, United States 
                Code,''; and
                  (B) in subclause (I), by striking ``section 303(a) of 
                such Act'' and inserting ``section 30304 of that 
                title''.
          (4) Section 542(c)(8) of the Internal Revenue Code of 1986 
        (26 U.S.C. 542(c)(8)) is amended by striking ``the Small 
        Business Investment Act of 1958 (15 U.S.C. 661 and following)'' 
        and inserting ``subtitle III of title 53, United States 
        Code,''.
          (5) Section 582(c)(2)(A)(iii) of the Internal Revenue Code of 
        1986 (26 U.S.C. 582(c)(2)(A)(iii)) is amended by striking ``the 
        Small Business Investment Act of 1958'' and inserting 
        ``subtitle III of title 53, United States Code''.
          (6) Section 1242(1) of the Internal Revenue Code of 1986 (26 
        U.S.C. 1242(1)) is amended by striking ``the Small Business 
        Investment Act of 1958'' and inserting ``subtitle III of title 
        53, United States Code''.
          (7) Section 1243 of the Internal Revenue Code of 1986 (26 
        U.S.C. 1243) is amended--
                  (A) in the matter preceding paragraph (1), by 
                striking ``the Small Business Investment Act of 1958'' 
                and inserting ``subtitle III of title 53, United States 
                Code''; and
                  (B) in paragraph (1), by striking ``section 304 of 
                the Small Business Act of 1958'' and inserting 
                ``section 30305 of title 53, United States Code''.
  (n) Title 33.--Section 5(b)(3)(A) of the Act of August 18, 1941 (33 
U.S.C. 701n(b)(3)(A)), is amended by striking ``section 7(b)(2) of the 
Small Business Act'' and inserting ``section 21302 of title 53, United 
States Code''.
  (o) Title 41.--
          (1) Section 303 of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 253) is amended--
                  (A) in subsection (b)(2), by striking ``sections 9 
                and 15 of the Small Business Act'' and inserting 
                ``chapters 251, 261, and 263 of title 53, United States 
                Code''; and
                  (B) in subsection (f)(2)(D), by striking ``section 
                8(a) of the Small Business Act'' and inserting 
                ``chapters 231 to 235 of title 53, United States 
                Code''.
          (2) Section 303C of the Federal Property and Administrative 
        Services Act (41 U.S.C. 253c) is amended--
                  (A) in subsection (c)(5), by striking ``section 
                8(b)(7) of the Small Business Act'' and inserting 
                ``section 24108 of title 53, United States Code,''.
                  (B) in subsection (d)(2), by striking ``section 3 of 
                the Small Business Act'' and inserting ``section 10101 
                of title 53, United States Code''.
          (3) Section 303I of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 253i) is amended--
                  (A) in subsection (c), by striking ``section 8(e) of 
                the Small Business Act (15 U.S.C. 637(e))'' and 
                inserting ``section 24501 of title 53, United States 
                Code,''; and
                  (B) in subsection (f)(3), by striking ``section 8(e) 
                of the Small Business Act (15 U.S.C. 637(e))'' and 
                inserting ``section 24501 of title 53, United States 
                Code''.
          (4) Section 303J(a)(1) of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253j(a)(1)) is 
        amended by striking ``section 8(e) of the Small Business Act 
        (15 U.S.C. 637(e))'' and inserting ``section 24501 of title 53, 
        United States Code''.
          (5) Section 309(b) of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 259(b)) is amended--
                  (A) in paragraph (4), by striking ``section 15 of the 
                Small Business Act'' and inserting ``chapter 251 of 
                title 53, United States Code,''; and
                  (B) in paragraph (5), by striking ``section 9 of the 
                Small Business Act'' and inserting ``chapters 261 and 
                263 of title 53, United States Code''.
          (6) Section 8304(4) of the Federal Acquisition Streamlining 
        Act of 1964 (41 U.S.C. 264 note, Public Law 103-355) is amended 
        by striking ``subsections (a) and (d) of section 8 of the Small 
        Business Act (15 U.S.C. 637 (a) and (d))'' and inserting 
        ``chapters 231 to 235 and 243 of title 53, United States 
        Code''.
          (7) Section 6(d) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 405(d)) is amended in paragraphs (11) and (12) 
        by striking ``(as defined in section 3(p) of the Small Business 
        Act)'' and inserting ``(as defined in section 10101 of title 
        53, United States Code)''.
          (8) Section 18(c)(1)(C)(ii) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 416(c)(1)(C)(ii)) is amended 
        by striking ``section 9 of the Small Business Act'' and 
        inserting ``chapters 261 and 263 of title 53, United States 
        Code''.
          (9) Section 502 of the Women's Business Ownership Act of 1988 
        (41 U.S.C. 417a) is amended by striking subsection (b) and 
        inserting the following:
  ``(b) Definitions.--In this section, the terms `qualified HUBZone 
small business concern', `small business concern owned and controlled 
by socially and economically disadvantaged individuals', and `small 
business concern owned and controlled by women' have the meanings given 
the terms in section 10101 of title 53, United States Code.''.
          (10) Section 22(c)(2) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 418a(c)(2)) is amended by striking 
        ``section 2(b) of the Small Business Innovation Development Act 
        of 1982 (Public Law 97-219; 15 U.S.C. 638 note), and the 
        declaration of policy in section 2 of the Small Business Act 
        (15 U.S.C. 631)'' and inserting ``section 2(b) of the Small 
        Business Innovation Development Act of 1982 (Public Law 97-
        219), and the declaration of policy in section 2 of the Small 
        Business Act (Public Law 85-536)''.
          (11) Section 32 of the Federal Procurement Policy Act (41 
        U.S.C. 428) is amended--
                  (A) in subsection (a)(1), by striking ``section 8(a) 
                of the Small Business Act (15 U.S.C. 637(a))'' and 
                inserting ``chapters 231 to 235 of title 53, United 
                States Code''; and
                  (B) in subsection (b), by striking ``section 15(j) of 
                the Small Business Act (15 U.S.C. 644(j))'' and 
                inserting ``section 25108 of title 53, United States 
                Code,''.
          (12) Section 35(a)(3)(A) of the Federal Procurement Policy 
        Act (41 U.S.C. 431(a)(3)(A)) is amended by striking ``section 
        15 of the Small Business Act (15 U.S.C. 644)'' and inserting 
        ``chapter 251 of title 53, United States Code''.
  (p) Title 42.--
          (1) Section 1701(a)(7)(A) of the Public Health Service Act 
        (42 U.S.C. 300u(a)(7)(A)) is amended by striking ``small 
        businesses (as defined in section 3 of the Small Business 
        Act)'' and inserting ``small business concerns (as defined in 
        section 10101 of title 53, United States Code)''.
          (2) The matter under the heading ``small and disadvantaged 
        business'' under the heading ``administrative provisions'' 
        under the heading ``National Aeronautics and Space 
        Administration'' in title III of the Departments of Veterans 
        Affairs and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1990 (42 U.S.C. 2473b), is amended 
        by striking ``(within the meaning of section 637(a) (5) and (6) 
        of the Small Business Act (15 U.S.C. 637(a) (5) (6))'' and 
        inserting ``(as defined in section 10101 of title 53, United 
        States Code)''.
          (3) Section 808(f)(7) of Public Law 90-284 (42 U.S.C. 
        3608(f)(7)) is amended by striking ``section 8(a) of the Small 
        Business Act'' and inserting ``chapters 231 to 235 of title 53, 
        United States Code''.
          (4) The first undesignated paragraph under the heading 
        ``administrative provisions'' under the heading ``Environmental 
        Protection Agency'' in title III of the Departments of Veterans 
        Affairs and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1993 (42 U.S.C. 4370d), is amended 
        by striking ``(within the meaning of section 8(a) (5) and (6) 
        of the Small Business Act (15 U.S.C. 637(a) (5) and (6)))'' and 
        inserting ``(as defined in section 10101 of title 53, United 
        States Code)''.
          (5) Section 406(a)(3)(A)(ii)(I) of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5172(a)(3)(A)(ii)(I)) is amended by striking ``section 7(b) of 
        the Small Business Act (15 U.S.C. 636(b))'' and inserting 
        ``chapter 213 of title 53, United States Code''.
          (6) Section 622(c) of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5197h(c)) is amended by 
        striking ``(as defined in section 3(p) of the Small Business 
        Act (15 U.S.C. 632(p))) and inserting ``(as defined in section 
        10101 of title 53, United States Code)''.
          (7) Section 102(a)(23) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5302(a)(23)) is amended by 
        striking ``a business that meets the criteria set forth in 
        section 3(a) of the Small Business Act'' and inserting ``a 
        small business concern (as defined in section 10101 of title 
        53, United States Code)''.
          (8) Section 105(a)(15) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5305(a)(15)) is amended by 
        striking ``entities organized under section 301(d) of the Small 
        Business Investment Act of 1958'' and inserting ``specialized 
        small business investment companies (as defined in section 
        30301 of title 53, United States Code) organized''.
          (9) Section 362(f)(5)(B) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6322(f)(5)(B)) is amended by 
        striking ``section 3(a) of the Small Business Act (15 U.S.C. 
        632(a))'' and inserting ``section 10101 of title 53, United 
        States Code,''.
          (10) Section 3159(a)(1) of the National Defense Authorization 
        Act for Fiscal Year 1994 (42 U.S.C. 7256 note, Public Law 103-
        1956) is amended by striking ``section 8(d) of the Small 
        Business Act (15 U.S.C. 637(d)) and regulations issued under 
        that section'' and inserting ``chapter 243 of title 53, United 
        States Code, and regulations issued under that chapter''.
          (11) Section 3135(b)(2) of the National Defense Authorization 
        Act for Fiscal Year 1993 (42 U.S.C. 7261b(b)(2)) is amended by 
        striking ``prescribed pursuant to section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a))'' and inserting ``prescribed 
        for a small business concern under section 10101 of title 53, 
        United States Code''.
          (12) Section 507(c)(1)(B) of the Clean Air Act (42 U.S.C. 
        7661f(c)(1)(B)) is amended by striking ``the Small Business 
        Act'' and inserting ``section 10101 of title 53, United States 
        Code''.
          (13) Section 107(p)(1) of the Comprehensive Environmental 
        Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
        9607(p)(1)) is amended--
                  (A) in subparagraph (B), by striking ``(within the 
                meaning of the Small Business Act (15 U.S.C. 631 et 
                seq.))'' and inserting ``(as defined in section 10101 
                of title 53, United States Code)''; and
                  (B) in the matter following subparagraph (C), by 
                striking ``the Small Business Act (15 U.S.C. 631 et 
                seq.)'' and inserting ``subtitles I and II of title 53, 
                United States Code''.
          (14) Section 626(a) of the Community Economic Development Act 
        of 1981 (42 U.S.C. 9815(a)) is amended--
                  (A) by striking paragraph (1) and inserting ``(1) 
                Funds that are invested directly or indirectly in a 
                small business investment company (as defined in 
                section 30301 of title 53, United States Code) shall be 
                included as--
          ``(A) private capital for purposes of the definition of that 
        term in section 30301 of title 53, United States Code; and
          ``(B) paid-in capital for purposes of section 33103(c)(1) of 
        title 53, United States Code.''; and
                  (B) in paragraph (2), by striking ``section 8(a) of 
                the Small Business Act'' and inserting ``chapters 231 
                to 235 of title 53, United States Code''.
          (15) Section 3(4) of the Renewable Energy and Energy 
        Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 
        12002(4)) is amended by striking ``under section 3(a) of the 
        Small Business Act'' and inserting ``for a small business 
        concern under section 10101 of title 53, United States Code,''.
          (16) Section 3021(b) of the Energy Policy Act of 1992 (42 
        U.S.C. 13556(b)) is amended--
                  (A) in paragraph (1), by striking ``such term has 
                under section 3 of the Small Business Act (15 U.S.C. 
                632)'' and inserting ``given the term in section 10101 
                of title 53, United States Code'';
                  (B) in paragraph (2), by striking ``such term has 
                under section 8(d) of the Small Business Act (15 U.S.C. 
                637(d))'' and inserting ``that that term has under the 
                contract clause described in section 24301(c) of title 
                52, United States Code,''; and
                  (C) in paragraph (3), by striking ``section 3(p) of 
                the Small Business Act (15 U.S.C. 632(o))'' and 
                inserting ``section 10101 of title 53, United States 
                Code''.
          (17) Section 2(5) of the Energy Policy Act of 2005 (42 U.S.C. 
        15801(2)) is amended by striking ``section 3 of the Small 
        Business Act (15 U.S.C. 632)'' and inserting ``section 10101 of 
        title 53, United States Code''.
          (18) Section 988(f)(3) of the Energy Policy Act of 2005 (42 
        U.S.C. 16352(f)(3)) is amended--
                  (A) in subparagraph (A), by striking ``section 9 of 
                the Small Business Act (15 U.S.C. 638)'' and inserting 
                ``division H of subtitle II of title 53, United States 
                Code''; and
                  (B) in subparagraph (B), by striking ``that section'' 
                and inserting ``that division''.
          (19) Section 1003(a)(1) of the Energy Policy Act of 2005 (42 
        U.S.C. 16393(a)(1)) is amended by striking ``socially and 
        economically disadvantaged small business concerns (as defined 
        in section 8(a)(4) of the Small Business Act (15 U.S.C. 
        63y(a)(4)))'' and inserting ``small business concerns owned and 
        operated by socially and economically disadvantaged individuals 
        (as defined in section 10101 of title 53, United States 
        Code)''.
  (q) Title 43.--Section 29(e)(4)(C) of the Alaska Native Claims 
Settlement Act (43 U.S.C. 1626(e)(4)(C)) is amended by striking 
``section 8 of Public Law 85-536'' and inserting ``chapters 231 to 235 
of title 53, United States Code,''.
  (r) Title 50.--Section 702 of the Defense Production Act of 1950 (50 
App. U.S.C. 2152) is amended--
          (1) in paragraph (17), by striking ``section 3(a) of the 
        Small Business Act'' and inserting ``section 10101 of title 53, 
        United States Code,''; and
          (2) in paragraph (18), by striking ``section 8(d)(3)(C) of 
        the Small Business Act'' and inserting ``section 10101 of title 
        53, United States Code''.

SEC. 6. TRANSITIONAL AND SAVINGS PROVISIONS.

  (a) Definitions.--In this section:
          (1) Source provision.--The term ``source provision'' means a 
        provision of law that is replaced by a title 53 provision.
          (2) Title 53 provision.--The term ``title 53 provision'' 
        means a provision of title 53, United States Code, that is 
        enacted by section 3.
  (b) Cutoff Date.--The title 53 provisions replace certain provisions 
of law enacted on or before February 4, 2009. If a law enacted after 
that date amends or repeals a source provision, that law is deemed to 
amend or repeal, as the case may be, the corresponding title 53 
provision. If a law enacted after that date is otherwise inconsistent 
with a title 53 provision or a provision of this Act, that law 
supersedes the title 53 provision or provision of this Act to the 
extent of the inconsistency.
  (c) Original Date of Enactment Unchanged.--For purposes of 
determining whether one provision of law supersedes another based on 
enactment later in time, a title 53 provision is deemed to have been 
enacted on the date of enactment of the source provision that the title 
53 provision replaces.
  (d) References to Title 53 Provisions.--A reference to a title 53 
provision is deemed to refer to the corresponding source provision.
  (e) References to Source Provisions.--A reference to a source 
provision, including a reference in a regulation, order, or other law, 
is deemed to refer to the corresponding title 53 provision.
  (f) Regulations, Orders, and Other Administrative Actions.--A 
regulation, order, or other administrative action in effect under a 
source provision continues in effect under the corresponding title 53 
provision.
  (g) Actions Taken and Offenses Committed.--An action taken or an 
offense committed under a source provision is deemed to have been taken 
or committed under the corresponding title 53 provision.

SEC. 7. REPEALS.

  The following provisions of law are repealed, except with respect to 
rights and duties that matured, penalties that were incurred, or 
proceedings that were begun before the date of enactment of this Act:

                                            Schedule of Laws Repealed
----------------------------------------------------------------------------------------------------------------
                                                                                     United States Code Former
                        Act                                    Section                     Classification
----------------------------------------------------------------------------------------------------------------
 
Small Business Act (Public Law 85-536, Sec. 2)....        2(d)(1), (g), (i), (j)      15 U.S.C. 631(d)(1), (g),
 
                                                                               3                  15 U.S.C. 632
                                                                               4                  15 U.S.C. 633
                                                                               5                  15 U.S.C. 634
                                                                               6                  15 U.S.C. 635
                                                                               7                  15 U.S.C. 636
                                                                               8                  15 U.S.C. 637
                                                                               9                  15 U.S.C. 638
                                                                              10                  15 U.S.C. 639
                                                                              11                  15 U.S.C. 640
                                                                              12                  15 U.S.C. 641
                                                                              13                  15 U.S.C. 642
                                                                              14                  15 U.S.C. 643
                                                                              15                  15 U.S.C. 644
                                                                              16                  15 U.S.C. 645
                                                                              17                  15 U.S.C. 646
                                                                              18                  15 U.S.C. 647
                                                                              19                  15 U.S.C. 631
                                                      20(a)(1), (2), (4), (b) to             15 U.S.C. 631 note
                                                                        (e), (j)
                                                                              21                  15 U.S.C. 648
                                                                              22                  15 U.S.C. 649
                                                                              23                  15 U.S.C. 650
                                                                              24                  15 U.S.C. 651
                                                                              25                  15 U.S.C. 652
                                                                              26                  15 U.S.C. 653
                                                                              27                  15 U.S.C. 654
                                                                              28                  15 U.S.C. 655
                                                                              29                  15 U.S.C. 656
                                                                              30                  15 U.S.C. 657
                                                                              31                 15 U.S.C. 657a
                                                                              32                 15 U.S.C. 657b
                                                                              33                 15 U.S.C. 657c
                                                                              34                 15 U.S.C. 657d
                                                                              35                 15 U.S.C. 657e
                                                                              36                 15 U.S.C. 657f
                                                                              37                 15 U.S.C. 657i
                                                                              38                 15 U.S.C. 657j
                                                                              39                 15 U.S.C. 657k
                                                                              40                 15 U.S.C. 657l
                                                                              41                 15 U.S.C. 657m
                                                                              42                 15 U.S.C. 657n
                                                                              43                 15 U.S.C. 657o
                                                                              44             15 U.S.C. 631 note
 
Small Business Investment Act of 1958 (Public Law                            101             15 U.S.C. 631 note
 85-699)..........................................
                                                                             102                  15 U.S.C. 661
                                                                             103                  15 U.S.C. 662
                                                                             201                  15 U.S.C. 671
                                                                             301                  15 U.S.C. 681
                                                                             302                  15 U.S.C. 682
                                                                             303                  15 U.S.C. 683
                                                                             304                  15 U.S.C. 684
                                                                             305                  15 U.S.C. 685
                                                                             306                  15 U.S.C. 686
                                                                             308                  15 U.S.C. 687
                                                                             309                 15 U.S.C. 687a
                                                                             310                 15 U.S.C. 687b
                                                                             311                 15 U.S.C. 687c
                                                                             312                 15 U.S.C. 687d
                                                                             313                 15 U.S.C. 687e
                                                                             314                 15 U.S.C. 687f
                                                                             315                 15 U.S.C. 687g
                                                                             316                 15 U.S.C. 687h
                                                                             318                 15 U.S.C. 687k
                                                                             319                 15 U.S.C. 687l
                                                                             320                 15 U.S.C. 687m
                                                                             351                  15 U.S.C. 689
                                                                             352                 15 U.S.C. 689a
                                                                             353                 15 U.S.C. 689b
                                                                             354                 15 U.S.C. 689c
                                                                             355                 15 U.S.C. 689d
                                                                             356                 15 U.S.C. 689e
                                                                             357                 15 U.S.C. 689f
                                                                             358                 15 U.S.C. 689g
                                                                             359                 15 U.S.C. 689h
                                                                             360                 15 U.S.C. 689i
                                                                             361                 15 U.S.C. 689j
                                                                             362                 15 U.S.C. 689k
                                                                             363                 15 U.S.C. 689l
                                                                             364                 15 U.S.C. 689m
                                                                             365                 15 U.S.C. 689n
                                                                             366                 15 U.S.C. 689o
                                                                             367                 15 U.S.C. 689p
                                                                             368                 15 U.S.C. 689q
                                                                             381                  15 U.S.C. 690
                                                                             382                 15 U.S.C. 690a
                                                                             383                 15 U.S.C. 689b
                                                                             384                 15 U.S.C. 690c
                                                                             385                 15 U.S.C. 690d
                                                                             386                 15 U.S.C. 690e
                                                                             387                 15 U.S.C. 690f
                                                                             388                 15 U.S.C. 690g
                                                                             389                 15 U.S.C. 690h
                                                                             390                 15 U.S.C. 690i
                                                                             391                 15 U.S.C. 690j
                                                                             392                 15 U.S.C. 690k
                                                                             393                 15 U.S.C. 690l
                                                                             394                 15 U.S.C. 690m
                                                                             395                 15 U.S.C. 690n
                                                                             396                 15 U.S.C. 690o
                                                                             397                 15 U.S.C. 690p
                                                                             398                 15 U.S.C. 690q
                                                                             401                  15 U.S.C. 692
                                                                             402                  15 U.S.C. 693
                                                                             404                15 U.S.C. 694-1
                                                                             405                15 U.S.C. 694-2
                                                                             410                 15 U.S.C. 694a
                                                                             411                 15 U.S.C. 694b
                                                                             412                 15 U.S.C. 694c
                                                                             501                  15 U.S.C. 695
                                                                             502                  15 U.S.C. 696
                                                                             503                  15 U.S.C. 697
                                                                             504                 15 U.S.C. 697a
                                                                             505                 15 U.S.C. 697b
                                                                             506                 15 U.S.C. 697c
                                                                             507                 15 U.S.C. 697d
                                                                             508                 15 U.S.C. 697e
                                                                             509                 15 U.S.C. 697f
                                                                             510                 15 U.S.C. 697g
 
Public Law 91-151.................................                           301             15 U.S.C. 633 note
 
Disaster Relief Act of 1970 (Public Law 91-606)...                           234          15 U.S.C. 636b (first
                                                                                                      sentence)
 
Public Law 93-24..................................                             9             15 U.S.C. 636 note
 
Public Law 94-305.................................                           201                 15 U.S.C. 634a
                                                                             202                 15 U.S.C. 634b
                                                                             203                 15 U.S.C. 634c
                                                                             204                 15 U.S.C. 634d
                                                                             205                 15 U.S.C. 634e
                                                                             206                 15 U.S.C. 634f
                                                                             207                 15 U.S.C. 634g
 
Public Law 95-507.................................                           223                 15 U.S.C. 637b
                                                                          224(a)                 15 U.S.C. 637c
 
Small Business Economic Policy Act of 1980 (Public                           302                 15 U.S.C. 631a
 Law 96-302)......................................
                                                                             303                 15 U.S.C. 632b
 
Public Law 96-481.................................                           301                 15 U.S.C. 649a
                                                                             302                 15 U.S.C. 649b
                                                                             303                 15 U.S.C. 649c
                                                                             304                 15 U.S.C. 649d
 
Small Business and Federal Procurement Competition                        403(b)             15 U.S.C. 644 note
 Enhancement Act of 1984 (Public Law 98-577)......
                                                                          404(c)             15 U.S.C. 637 note
 
Public Law 99-500.................................  101(a) [title VI, Sec. 630],             15 U.S.C. 638 note
                                                         100 Stat. 1783, 1783-30
 
Public Law 99-591.................................  101(a) [title VI, Sec. 630],             15 U.S.C. 638 note
                                                         100 Stat. 3341, 3341-30
 
Public Law 100-71.................................   title I, chapter I, proviso             15 U.S.C. 633 note
                                                         in the matter under the
                                                          heading ``salaries and
                                                    expenses'' under the heading
                                                                ``Small Business
                                                      Administration'' under the
                                                                    heading ``RELATED AGENCIES''
                                                                 (101 Stat. 396)
 
Women's Business Ownership Act of 1988 (Public Law                           401                 15 U.S.C. 7101
 100-533).........................................
                                                                             402                 15 U.S.C. 7102
                                                                             403                 15 U.S.C. 7103
                                                                             404                 15 U.S.C. 7104
                                                                             405                 15 U.S.C. 7105
                                                                             406                 15 U.S.C. 7106
                                                                             407                 15 U.S.C. 7107
                                                                             408                 15 U.S.C. 7108
                                                                             409                 15 U.S.C. 7109
                                                                             410                 15 U.S.C. 7110
 
Small Business Administration Reauthorization and                         133(c)             15 U.S.C. 644 note
 Amendment Act of 1988 (Public Law 100-590).......
                                                                             132             15 U.S.C. 637 note
 
Business Opportunity Development Reform Act of                                 2             15 U.S.C. 636 note
 1988 (Public Law 100-656)........................
                                                                          303(f)             15 U.S.C. 637 note
                                                                          304(b)             15 U.S.C. 636 note
                                                                          401(b)             15 U.S.C. 633 note
                                                                             410             15 U.S.C. 636 note
                                                                          602(a)             15 U.S.C. 637 note
                                                                             711             15 U.S.C. 644 note
                                                                             712             15 U.S.C. 644 note
                                                                             713             15 U.S.C. 644 note
                                                                             714             15 U.S.C. 644 note
                                                                             715             15 U.S.C. 644 note
                                                                             717             15 U.S.C. 644 note
                                                                             718             15 U.S.C. 644 note
                                                                             741             15 U.S.C. 644 note
                                                                             711             15 U.S.C. 644 note
 
Public Law 101-189................................                           834                 15 U.S.C. 631c
 
Small Business Administration Reauthorization and                            203             15 U.S.C. 637 note
 Amendments Act of 1990 (Public Law 101-574)......
                                                                             311             15 U.S.C. 653 note
 
Women's Business Development Act of 1991 (Public             3 (second sentence)             15 U.S.C. 637 note
 Law 102-191).....................................
 
Small Business Credit and Business Opportunity                            202(h)             15 U.S.C. 644 note
 Enhancement Act of 1992 (Public Law 102-366).....
                                                                             221             15 U.S.C. 636 note
                                                                             226             15 U.S.C. 634 note
 
Public Law 102-484................................                          4237             15 U.S.C. 638 note
 
Small Business Research and Development                                      306             15 U.S.C. 638 note
 Enhancement Act of 1992 (Public Law 102-564).....
 
Small Business Guaranteed Credit Enhancement Act                               6             15 U.S.C. 634 note
 of 1993 (Public Law 103-81)......................
 
Riegle Community Development and Regulatory                                  172                 15 U.S.C. 6901
 Improvement Act of 1994 (Public Law 103-325).....
                                                                             173                 15 U.S.C. 6902
                                                                             174                 15 U.S.C. 6903
                                                                             175                 15 U.S.C. 6904
                                                                             176                 15 U.S.C. 6905
                                                                             177                 15 U.S.C. 6906
                                                                             178                 15 U.S.C. 6907
                                                                             179                 15 U.S.C. 6908
                                                                             180                 15 U.S.C. 6909
                                                                             181                 15 U.S.C. 6910
 
Federal Acquisition Streamlining Act of 1994                                2353             15 U.S.C. 644 note
 (Public Law 103-355).............................
                                                                            7102             15 U.S.C. 644 note
                                                                            7104             15 U.S.C. 644 note
 
Small Business Administration Reauthorization and                         212(c)            15 U.S.C. 697d note
 Amendments Act of 1994 (Public Law 103-403)......
 
Small Business Programs Improvement Act of 1996     div. D, title I, Sec. 103(h)             15 U.S.C. 634 note
 (Public Law 104-208).............................
 
Public Law 105-85.................................                     850(e)(3)             15 U.S.C. 637 note
 
Small Business Reauthorization Act of 1997 (Public                        202(b)             15 U.S.C. 636 note
 Law 105-135).....................................
                                                                          416(b)             15 U.S.C. 637 note
                                                                       501(b)(2)             15 U.S.C. 636 note
                                                                             505             15 U.S.C. 634 note
                                                                             507             15 U.S.C. 636 note
                                                                             509             15 U.S.C. 636 note
                                                                             704             15 U.S.C. 631 note
                                                                             707             15 U.S.C. 631 note
                                                                             709             15 U.S.C. 631 note
 
Veterans Entrepreneurship and Small Business                                 203            15 U.S.C. 657b note
 Development Act of 1999 (Public Law 106-50)......
                                                                             301            15 U.S.C. 657b note
                                                                             302            15 U.S.C. 657b note
                                                                             603            15 U.S.C. 657b note
                                                                             604            15 U.S.C. 657b note
 
Small Business Investment Company Amendments Act                            6(d)             15 U.S.C. 697 note
 of 2001 (Public Law 107-100).....................
 
Public Law 108-447................................     div. K, title I, Sec. 147                 15 U.S.C. 631c
                                                           div. K, title I, Sec.             15 U.S.C. 632 note
                                                                       152(a)(2)
                                                       div. K, title I, Sec. 155                 15 U.S.C. 657g
 
Public Law 109-59.................................                         10201            15 U.S.C. 657g note
 
Public Law 109-289................................  div. A, title VIII, Sec. 8018            15 U.S.C. 637 note
                                                                  (last proviso)
 
Public Law 110-140................................                          1203                 15 U.S.C. 657h
 
Military Reservist and Veteran Small Business                                  3             15 U.S.C. 636 note
 Reauthorization and Opportunity Act of 2008
 (Public Law 110-186).............................
                                                                             105             15 U.S.C. 637 note
                                                                     201(b), (c)             15 U.S.C. 636 note
                                                                             202             15 U.S.C. 636 note
 
Small Business Disaster Response and Loan                                  12052                 15 U.S.C. 636e
 Improvements Act of 2008 (Public Law 110-246)....
                                                                        12063(b)             15 U.S.C. 636 note
                                                                        12066(b)                 15 U.S.C. 636f
                                                                           12072                 15 U.S.C. 636g
                                                                           12073                 15 U.S.C. 636h
                                                                           12079                 15 U.S.C. 636i
                                                                           12085                 15 U.S.C. 636j
                                                                           12091                 15 U.S.C. 636k
 
Public Law 111-3..................................                           621                 15 U.S.C. 657p
----------------------------------------------------------------------------------------------------------------

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