[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2488 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2488

To provide for small business concerns located in Puerto Rico, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2017

  Ms. Velazquez (for herself, Miss Gonzalez-Colon of Puerto Rico, Mr. 
    Serrano, Mr. MacArthur, Mr. Soto, Mr. Duffy, and Mrs. Murphy of 
   Florida) introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To provide for small business concerns located in Puerto Rico, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Puerto Rico Small Business 
Assistance Act of 2017''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

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

Sec. 101. Microloan program for Puerto Rico small business concerns.
Sec. 102. Fee reductions.
Sec. 103. Economic stimulus lending program for small businesses.
Sec. 104. Contribution percentages for 504 projects.
Sec. 105. Independent subsidy calculation.
                         TITLE II--PROCUREMENT

Sec. 201. Contracting preference for Puerto Rico businesses.
Sec. 202. Priority for surplus property transfers.
Sec. 203. Subcontracting incentives for protege firms that are Puerto 
                            Rico businesses.
Sec. 204. Additional mentor-protege relationships for protege firms 
                            that are Puerto Rico businesses.
                 TITLE III--ENTREPRENEURIAL DEVELOPMENT

Sec. 301. Veteran Business Outreach Center in Puerto Rico.
Sec. 302. FAST grant program for Puerto Rico.
           TITLE IV--SMALL BUSINESS ADMINISTRATION OVERSIGHT

Sec. 401. Requirement for the District Director of Puerto Rico.

SEC. 3. DEFINITIONS.

    (a) This Act.--In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Oversight board termination date.--The term ``Oversight 
        Board termination date'' means the date on which the Oversight 
        Board established under section 101 of the Puerto Rico 
        Oversight, Management, and Economic Stability Act (48 U.S.C. 
        2121) terminates.
            (3) Puerto rico.--The term ``Puerto Rico'' means the 
        Commonwealth of Puerto Rico.
            (4) Puerto rico business.--The term ``Puerto Rico 
        business'' means a small business concern that has its 
        principal office located in the Commonwealth of Puerto Rico.
            (5) Small business concern.--The term ``small business 
        concern'' has the meaning given such term under section 3 of 
        the Small Business Act (15 U.S.C. 632).
    (b) Small Business Act.--Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following:
    ``(ee) Puerto Rico Business.--In this Act, the term `Puerto Rico 
business' means a small business concern that has its principal office 
located in the Commonwealth of Puerto Rico.''.

                            TITLE I--LENDING

SEC. 101. MICROLOAN PROGRAM FOR PUERTO RICO SMALL BUSINESS CONCERNS.

    (a) Increase in Access to Capital for Certain Intermediaries.--
Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) 
is amended--
            (1) by inserting ``and except as provided in clause (ii)'' 
        after ``subsection (a)(3)'';
            (2) by striking ``Notwithstanding'' and inserting the 
        following:
                            ``(i) In general.--Notwithstanding''; and
            (3) by adding at the end the following:
                            ``(ii) Exception for certain puerto rico 
                        businesses.--
                                    ``(I) In general.--No loan shall be 
                                made under this subsection if the total 
                                amount outstanding and committed to 1 
                                covered intermediary (excluding 
                                outstanding grants) from the business 
                                loan and investment fund established by 
                                this Act would, as a result of such 
                                loan, exceed $6,000,000 in the 
                                remaining years of the covered 
                                intermediary's participation in the 
                                program.
                                    ``(II) Definition.--In this clause, 
                                the term `covered intermediary' means 
                                an intermediary that--
                                            ``(aa) is participating in 
                                        the program; and
                                            ``(bb) submits to the 
                                        Administrator a certification 
                                        that not less than 20 percent 
                                        of the microloans made by the 
                                        intermediary under this 
                                        subsection, during such period 
                                        as the Administrator may 
                                        specify, will be made to Puerto 
                                        Rico businesses.''.
    (b) Waiver of 25/75 Rule for Microloans to Puerto Rico Small 
Business Concerns.--
            (1) Waiver authorized.--Section 7(m)(4)(E) of the Small 
        Business Act (15 U.S.C. 636(m)(4)(E)) is amended--
                    (A) in clause (i), by striking ``Each'' and 
                inserting ``Except as provided in clause (iii), each''; 
                and
                    (B) by adding at the end the following:
                            ``(iii) Exception for certain 
                        intermediaries.--The Administrator shall waive 
                        the requirements of clause (i) for an 
                        intermediary for which not less than 25 percent 
                        of the loans made by the intermediary are made 
                        to Puerto Rico businesses.''.
            (2) Study.--Not later than 18 months after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report on the impact of waiving the requirements of 
        section 7(m)(4)(E)(i) of the Small Business Act for all 
        intermediaries receiving grant funds under section 
        7(m)(1)(B)(ii) of the Small Business Act, which shall include 
        an analysis of the effectiveness and feasibility of expanding 
        the waiver to small business concerns nationwide.
    (c) Prospective Repeal.--Subsections (a) and (b) shall be repealed, 
and the provisions of law amended by such subsections shall be restored 
as if such subsections had not been enacted, on the Oversight Board 
termination date.
    (d) GAO Study.--Not later than 180 days after the date of enactment 
of this Act, the Comptroller General of the United States shall 
complete a study and submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report on the following:
            (1) The operations (including services provided, structure, 
        size, and area of operation) of a representative sample of--
                    (A) intermediaries that are eligible for 
                participation in the microloan program under section 
                7(m) of the Small Business Act (15 U.S.C. 636(m)) and 
                that participate in the microloan program; and
                    (B) intermediaries (including those operated for 
                profit, operated as nonprofit organizations, and 
                affiliated with a United States institution of higher 
                learning (as defined in section 3452 of title 38, 
                United States Code) that are so eligible and that do 
                not participate in the microloan program.
            (2) The reasons why intermediaries described in paragraph 
        (1)(B) choose not to participate in the microloan program.
            (3) Recommendations on how to encourage increased 
        participation in the microloan program by intermediaries 
        described in paragraph (1)(B).
            (4) Recommendations for increasing the number of 
        intermediaries located in the territories of the United States 
        or in economically distressed areas (as defined in section 
        7(m)(11)(D) of the Small Business Act (15 U.S.C. 636(m)(11)(D)) 
        that are eligible for participation in the microloan program 
        under section 7(m) of such Act.
            (5) Recommendations on how to decrease the costs associated 
        with participation in the microloan program for eligible 
        intermediaries.

SEC. 102. FEE REDUCTIONS.

    (a) Administrative Provisions for the Small Business 
Administration.--
            (1) Definition.--In this subsection, the term ``covered 
        business loan'' means a loan--
                    (A) of not more than $2,000,000;
                    (B) that is guaranteed by the Administrator under 
                section 7(a) of the Small Business Act (15 U.S.C. 
                636(a));
                    (C) for which the application is approved on or 
                after the date of enactment of this Act; and
                    (D) that is made to a Puerto Rico business.
            (2) Fees.--During the period beginning on the date of 
        enactment of this Act and ending on the Oversight Board 
        termination date, and to the extent that the cost of such 
        elimination or reduction of fees is offset by appropriations, 
        with respect to each covered business loan, the Administrator 
        shall--
                    (A) in lieu of the fee otherwise applicable under 
                section 7(a)(23)(A) of the Small Business Act, collect 
                no fee or reduce fees to the maximum extent possible; 
                and
                    (B) in lieu of the fee otherwise applicable under 
                section 7(a)(18)(A) of the Small Business Act, collect 
                no fee or reduce fees to the maximum extent possible.
    (b) Temporary Fee Elimination for the 504 Loan Program.--
            (1) In general.--During the period beginning on the date of 
        enactment of this Act and ending on the Oversight Board 
        termination date, and to the extent the cost of such 
        elimination in fees is offset by appropriations, with respect 
        to each loan of not more than $2,000,000 guaranteed by the 
        Administrator under title V of the Small Business Investment 
        Act of 1958 (15 U.S.C. 695 et seq.) with respect to a 
        development company that has its principal office located in 
        Puerto Rico and for which an application is approved or pending 
        approval on or after the date of enactment of this Act--
                    (A) the Administrator shall, in lieu of the fee 
                otherwise applicable under section 503(d)(2) of the 
                Small Business Investment Act of 1958 (15 U.S.C. 
                697(d)(2)), collect no fee; and
                    (B) a development company shall, in lieu of the 
                processing fee under section 120.971(a)(1) of title 13, 
                Code of Federal Regulations (relating to fees paid by 
                borrowers), or any successor thereto, collect no fee.
            (2) Reimbursement for waived fees.--
                    (A) In general.--To the extent that the cost of 
                such payments is offset by appropriations, the 
                Administrator shall reimburse each development company 
                that does not collect a processing fee under paragraph 
                (1)(B).
                    (B) Amount.--The reimbursement to a development 
                company under subparagraph (A) shall be in an amount 
                equal to 1.5 percent of the net debenture proceeds for 
                which the development company does not collect a 
                processing fee under paragraph (1)(B).
    (c) Application of Fee Eliminations.--To the extent that amounts 
are made available to the Administrator for the purpose of fee 
eliminations or reductions under subsection (a), the Administrator 
shall--
            (1) first use any amounts provided to eliminate or reduce 
        fees paid by borrowers under clauses (i), (ii), and (iii) of 
        section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 
        636(a)(18)(A)), to the maximum extent possible;
            (2) to the extent amounts provided remain after use in 
        accordance with paragraph (1), use any amounts provided to 
        eliminate or reduce fees under section 7(a)(23)(A) of the Small 
        Business Act (15 U.S.C. 636(a)(23)(A)) paid by lenders with 
        assets of not more than $1,000,000,000, as of the date of 
        enactment of this Act; and
            (3) to the extent amounts provided remain after use in 
        accordance with paragraphs (1) and (2), use any remaining 
        amounts provided to reduce fees under section 7(a)(23)(A) of 
        the Small Business Act paid by lenders other than those 
        described under paragraph (2).

SEC. 103. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES.

    (a) Authority.--Notwithstanding section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)), for a qualifying small business loan the 
Administrator may guarantee not more than 90 percent of the balance of 
the financing outstanding at the time of disbursement of the loan, if 
such balance is less than or equal to $2,000,000.
    (b) Qualifying Small Business Loan Defined.--For purposes of this 
section, the term ``qualifying small business loan'' means any loan to 
a Puerto Rico business made pursuant to section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)), except for such loans made under 
section 7(a)(31) of such Act (15 U.S.C. 636(a)(31)).
    (c) Qualified Borrowers.--
            (1) Aliens unlawfully present in the united states.--The 
        Administrator may not guarantee a loan made under this section 
        to a small business concern if an individual who is an alien 
        unlawfully present in the United States--
                    (A) has an ownership interest in that concern; or
                    (B) has an ownership interest in another concern 
                that itself has an ownership interest in that concern.
            (2) Firms in violation of immigration laws.--The 
        Administrator may not guarantee a loan made under this section 
        to any entity, based on a determination by the Secretary of 
        Homeland Security or the Attorney General, found to have 
        engaged in a pattern or practice of hiring, recruiting, or 
        referring for a fee for employment in the United States an 
        alien, if such entity knows that the person is an unauthorized 
        alien.
    (d) Criminal Background Checks.--Prior to guaranteeing a loan made 
under this section, the Administrator may verify the applicant's 
criminal background, or lack thereof, through the best available means, 
including, if possible, use of the National Crime Information Center 
computer system at the Federal Bureau of Investigation.
    (e) Application of Other Law.--Nothing in this section shall be 
construed to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990.
    (f) Small Business Act Provisions.--Except as otherwise provided in 
this section, the requirements of section 7 of the Small Business Act 
(and regulations promulgated thereunder) applicable to loan guarantees 
on or before the date of enactment of this Act shall apply to loan 
guarantees made under this section.
    (g) Sunset.--The Administrator may not guarantee a loan made under 
this section after the Oversight Board termination date.

SEC. 104. CONTRIBUTION PERCENTAGES FOR 504 PROJECTS.

    Notwithstanding section 502(3) of the Small Business Investment Act 
of 1958 (15 U.S.C. 696(3)), during the period beginning on the date of 
enactment of this Act and ending on the Oversight Board termination 
date, the Administrator may guarantee a debenture issued by a 
development company that has its principal office located in Puerto 
Rico if, of the total cost of the project financed--
            (1) 50 percent is derived from a loan from a private sector 
        lender;
            (2) 45 percent is derived from a loan made from the 
        proceeds of such debenture issued by the development company; 
        and
            (3) 5 percent is provide by the borrower of such loans.

SEC. 105. INDEPENDENT SUBSIDY CALCULATION.

    In making calculations under section 7(a)(26) of the Small Business 
Act (15 U.S.C. 636(a)(26)) or section 503(g) of the Small Business 
Investment Act of 1958 (15 U.S.C. 697(g)), the Director of the Office 
of Management and Budget shall make such calculations separately for 
loans purchased or guaranteed under the authority under section 102, 
103, or 104 of this Act.

                         TITLE II--PROCUREMENT

SEC. 201. CONTRACTING PREFERENCE FOR PUERTO RICO BUSINESSES.

    Section 15 of the Small Business Act (15 U.S.C. 644) is amended by 
adding at the end the following:
    ``(u) Contracting Preference for Puerto Rico Businesses.--
            ``(1) Contracting preference.--An agency shall provide a 
        contracting preference for a Puerto Rico business during the 
        period beginning on the date of enactment of this subsection 
        and ending on the date on which the Oversight Board established 
        under section 101 of the Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2121) terminates. The 
        preference under this subsection shall take priority over any 
        preference for purchasing from the procurement list established 
        pursuant to section 8503 of title 41, United States Code, or 
        the Federal Prison Industries catalog described under section 
        4124(d) of title 18, United States Code.
            ``(2) Credit for meeting contracting goals.--If an agency 
        awards a contract to a Puerto Rico business as described in 
        paragraph (1), the value of the contract shall be doubled for 
        purposes of determining compliance with the goals for 
        procurement contracts under subsection (g)(1)(A).''.

SEC. 202. PRIORITY FOR SURPLUS PROPERTY TRANSFERS.

    Section 7(j)(13)(F) of the Small Business Act (15 U.S.C. 
636(j)(13)(F)) is amended by adding at the end the following:
            ``(iii)(I) In this clause, the term `covered period' means 
        the period beginning on the date of enactment of this clause 
        and ending on the date on which the Oversight Board established 
        under section 101 of the Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2121) terminates.
            ``(II) The Administrator may transfer technology or surplus 
        property under clause (i) on a priority basis to a Puerto Rico 
        business if the Puerto Rico business meets the requirements for 
        such a transfer, without regard to whether the Puerto Rico 
        business is a Program Participant.''.

SEC. 203. SUBCONTRACTING INCENTIVES FOR PROTEGE FIRMS THAT ARE PUERTO 
              RICO BUSINESSES.

    Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is 
amended by adding at the end the following:
            ``(3) Puerto rico businesses.--
                    ``(A) In general.--During the period beginning on 
                the date of enactment of this paragraph and ending on 
                the date on which the Oversight Board established under 
                section 101 of the Puerto Rico Oversight, Management, 
                and Economic Stability Act (48 U.S.C. 2121) terminates, 
                the Administrator shall provide additional incentives 
                to covered mentors, including providing additional 
                credit for subcontracts awarded to covered proteges and 
                costs incurred for providing training to covered 
                proteges.
                    ``(B) Definitions.--In this paragraph--
                            ``(i) the term `covered mentor' means a 
                        mentor that enters into an agreement under this 
                        Act, or under any mentor-protege program 
                        approved under subsection (b)(1), with a 
                        covered protege; and
                            ``(ii) the term `covered protege' means a 
                        protege--
                                    ``(I) of a covered mentor; and
                                    ``(II) that has its principal 
                                office located in the Commonwealth of 
                                Puerto Rico.''.

SEC. 204. ADDITIONAL MENTOR-PROTEGE RELATIONSHIPS FOR PROTEGE FIRMS 
              THAT ARE PUERTO RICO BUSINESSES.

    Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 
657r(b)(3)(A)) is amended by inserting ``, except that such 
restrictions shall not apply to a relationship that was entered into 
before the date on which the Oversight Board established under section 
101 of the Puerto Rico Oversight, Management, and Economic Stability 
Act (48 U.S.C. 2121) terminates and in which the principal office of 
the protege is located in the Commonwealth of Puerto Rico'' after 
``each participant''.

                 TITLE III--ENTREPRENEURIAL DEVELOPMENT

SEC. 301. VETERAN BUSINESS OUTREACH CENTER IN PUERTO RICO.

    (a) In General.--Section 32 of the Small Business Act (15 U.S.C. 
657b) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) Veteran Business Outreach Center in Puerto Rico.--The 
Administrator shall partner with an organization to establish a Veteran 
Business Outreach Center in the Commonwealth of Puerto Rico to provide 
entrepreneurial development services to small business concerns owned 
and controlled by service-disabled veterans and small business concerns 
owned and controlled by veterans located in the Commonwealth of Puerto 
Rico. If the Administrator cannot partner with an organization, the 
Administrator shall use amounts appropriated to carry out this 
subsection to provide such services to veterans who own or are 
considering starting a Puerto Rico business.''.
    (b) Prospective Repeal.--Subsection (a) shall be repealed, and the 
provisions of law amended by such subsection shall be restored as if 
such subsection had not been enacted, on the Oversight Board 
termination date.

SEC. 302. FAST GRANT PROGRAM FOR PUERTO RICO.

    (a) In General.--Section 34 of the Small Business Act (15 U.S.C. 
657d) is amended by adding at the end the following:
    ``(j) FAST Grant Program for Puerto Rico.--
            ``(1) Establishment.--The Administrator shall establish a 
        program that shall be part of the FAST program to make awards 
        to, or enter into cooperative agreements with, a Puerto Rico 
        business.
            ``(2) Technical assistance.--If no applicant is selected to 
        receive assistance under this subsection, the Administrator 
        shall use amounts appropriated to carry out this subsection to 
        provide business advice and counseling to a Puerto Rico 
        business.
            ``(3) Waiver of matching requirements.--The Administrator 
        may, upon application, waive the matching requirements under 
        subsection (e)(2) for an applicant that receives an award or 
        has in effect a cooperative agreement under this subsection.
            ``(4) Funding.--There is authorized to be appropriated 
        $100,000 for fiscal year 2017, and each fiscal year thereafter, 
        to carry out this subsection.''.
    (b) Prospective Repeal.--Subsection (a) shall be repealed, and the 
provisions of law amended by such subsection shall be restored as if 
such subsection had not been enacted, on the Oversight Board 
termination date.

           TITLE IV--SMALL BUSINESS ADMINISTRATION OVERSIGHT

SEC. 401. REQUIREMENT FOR THE DISTRICT DIRECTOR OF PUERTO RICO.

    (a) In General.--During the period beginning on the date of 
enactment of this Act and ending on the Oversight Board termination 
date, the director of the district office of the Small Business 
Administration located in Puerto Rico shall submit directly to Congress 
and the Administrator an annual report on the activities of the Small 
Business Administration in Puerto Rico.
    (b) Coordination.--In preparing each report described in subsection 
(a), the director described in such subsection shall consult with other 
Federal agencies to collect data on grants, programs, and outreach 
activities carried out by such agencies that affect any Puerto Rico 
business.
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