[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6389 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 6389

 To enact certain laws relating to small business as title 57, United 
                    States Code, ``Small Business''.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2018

Mr. Chabot (for himself, Ms. Velazquez, Mr. Goodlatte, and Mr. Nadler) 
 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 57, 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; restatement does not change meaning or effect of 
          existing law.
Sec. 3.  Enactment of title 57, United States Code.
Sec. 4.  Conforming amendments.
Sec. 5.  Transitional and savings provisions.
Sec. 6.  Repeals.

SEC. 2. PURPOSE; RESTATEMENT DOES NOT CHANGE MEANING OR EFFECT OF 
                    EXISTING LAW.

  (a) Purpose.--The purpose of this Act is to enact a restatement of 
certain existing law relating to small business as a positive law title 
of the United States Code.
  (b) Restatement Does Not Change Meaning or Effect of Existing Law.--
          (1) In general.--The restatement of existing law enacted by 
        this Act does not change the meaning or effect of the existing 
        law. The restatement consolidates various provisions that were 
        enacted separately over a period of many years, reorganizing 
        them, conforming style and terminology, modernizing obsolete 
        language, and correcting drafting errors. These changes serve 
        to remove ambiguities, contradictions, and other imperfections, 
        but they do not change the meaning or effect of the existing 
        law or impair the precedential value of earlier judicial 
        decisions or other interpretations.
          (2) Rule of construction.--
                  (A) In general.--Notwithstanding the plain meaning 
                rule or other rules of statutory construction, a change 
                in wording made in the restatement of existing law 
                enacted by this Act serves to clarify the existing law 
                as indicated in paragraph (1), but not to change the 
                meaning or effect of the existing law.
                  (B) Revision notes.--Subparagraph (A) applies whether 
                or not a change in wording is explained by a revision 
                note appearing in a congressional report accompanying 
                this Act. If such a revision note does appear, a court 
                shall consider the revision note in interpreting the 
                change.

SEC. 3. ENACTMENT OF TITLE 57, UNITED STATES CODE.

  (a) Title 57.--Title 57, United States Code, ``Small Business'', is 
enacted as follows:

                        TITLE 57--SMALL BUSINESS

Subtitle I--General Provisions

Chap.                                                               Sec.

Declarations; Definitions; Small Business Concerns................101101
Small Business Administration.....................................103101
Penalties.........................................................105101
Periodic Reports..................................................107101
Funding...........................................................109101

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

    Division A--General Provisions
General Provisions................................................201101

    Division B--General Business Loan Program
General Purpose Loans.............................................203101
Special Purpose Loans.............................................205101
Small Business Lending Companies and Non-Federally Regulated Lende207101

    Division C--Intermediary Lending Pilot Program
Intermediary Lending Pilot Program................................211101

    Division D--Microloan Program
Microloan Program.................................................213101

    Division E--Disaster Assistance Programs
Disaster Loan Program.............................................221101
Private Disaster Assistance Program...............................223101
Immediate Disaster Assistance Program.............................225101
Expedited Disaster Assistance Business Loan Guarantee Program.....227101

    Division F--Business Development Program
General Provisions................................................231101
Contracting.......................................................233101
Technical and Management Assistance...............................235101

    Division G--Procurement Assistance
General Provisions................................................241101
Subcontracting Provisions.........................................243101
Notice Provisions.................................................245101
Noncompetitive Procedures.........................................247101

    Division H--Contract Reservation Programs
General Provisions................................................251101
HUBZone Program...................................................253101
Small Business Concerns Owned and Controlled by Service-Disabled 
Veterans..........................................................255101
Small Business Concerns Owned and Controlled by Women.............257101

    Division I--Research and Development
General Provisions................................................261101
SBIR Programs and STTR Programs...................................263101

    Division J--Small Business Development Center Program
Small Business Development Center Program.........................271101

    Division K--Women's Business Center Program
Women's Business Center Program...................................273101

    Division L--Veterans and Reservists
Veterans and Reservists...........................................275101

    Division M--International Trade
International Trade...............................................277101

    Divisions N Through Y--Reserved
through 297. reserved

    Division Z--Miscellaneous
Miscellaneous.....................................................299101

Subtitle III--Investment Division

    Division A--General provisions
General Provisions................................................301101

    Division B--Investment Programs
Small Business Investment Company Program.........................303101
New Markets Venture Capital Company Program.......................305101
Renewable Fuel Capital Investment Pilot Program...................307101

    Division C--Surety Bond Guarantee Program
Surety Bond Guarantee Program.....................................321101

    Division D--Certified Development Company Program
Certified Development Company Program.............................331101

Subtitle IV--Miscellaneous
PRIME Program.....................................................401101
Women's Business Enterprise Development...........................403101
through 489. reserved
Miscellaneous.....................................................491101

                     Subtitle I--General Provisions

    Chapter 101--Declarations; Definitions; Small Business Concerns

Sec.
101101.  Declarations.
101102.  Definitions.
101103.  Small business concerns.
Sec. 101101. Declarations
  (a) In General.--
          (1) Free competition.--The essence of the American economic 
        system of private enterprise is free competition. Only through 
        full and free competition can free markets, free entry into 
        business, and opportunities for the expression and growth of 
        personal initiative and individual judgment be assured. The 
        preservation and expansion of such competition is basic not 
        only to the economic well-being but to the security of this 
        Nation. National security and well-being cannot be realized 
        unless the actual and potential capacity of small business is 
        encouraged and developed.
          (2) Policy.--It is the policy of Congress that the Government 
        should aid, counsel, assist, and protect, insofar as is 
        possible, the interests of small business concerns in order 
        to--
                  (A) preserve free competitive enterprise;
                  (B) ensure that a fair proportion of the total 
                purchases and contracts or subcontracts for property 
                and services for the Government (including contracts or 
                subcontracts for maintenance, repair, and construction) 
                be placed with small business concerns;
                  (C) ensure that a fair proportion of the total sales 
                of Government property be made to small business 
                concerns; and
                  (D) maintain and strengthen the overall economy of 
                the Nation.
  (b) International Trade.--
          (1) Policy.--It is the policy of Congress that the Federal 
        Government, through the Administrator, acting through the 
        Associate Administrator for International Trade and in 
        cooperation with the Department of Commerce and other relevant 
        State and Federal agencies, should assist small businesses to 
        increase their ability to compete in international markets by--
                  (A) enhancing their ability to export;
                  (B) facilitating technology transfers;
                  (C) enhancing their ability to compete effectively 
                and efficiently against imports;
                  (D) increasing the access of small business concerns 
                to long-term capital for the purchase of new plant and 
                equipment used in the production of goods and services 
                involved in international trade;
                  (E) disseminating information concerning State, 
                Federal, and private programs and initiatives to 
                enhance the ability of small business concerns to 
                compete in international markets; and
                  (F) ensuring that the interests of small business 
                concerns are adequately represented in bilateral and 
                multilateral trade negotiations.
          (2) Respective agency roles.--Congress recognizes that the 
        Department of Commerce is the principal Federal agency for 
        trade development and export promotion and that the Department 
        of Commerce and the Small Business Administration work together 
        to advance joint interests. It is the purpose of this subtitle 
        and subtitle II to enhance, not alter, their respective roles.
  (c) Agriculture and Related Industries.--It is the policy of Congress 
that the Government, through the Small Business Administration, should 
assist small business concerns that are engaged in--
          (1) the production of food and fiber;
          (2) ranching;
          (3) raising of livestock;
          (4) aquaculture; or
          (5) any other industry relating to agriculture.
  (d) Business Development Program.--
          (1) 1978.--
                  (A) Findings.--With respect to the business 
                development program, Congress finds that--
                          (i) ownership and control of productive 
                        capital are concentrated in the economy of the 
                        United States, and therefore, certain groups 
                        own and control little productive capital;
                          (ii) certain groups in the United States own 
                        and control little productive capital because 
                        they have limited opportunities for small 
                        business ownership;
                          (iii) the broadening of small business 
                        ownership among groups that, on October 24, 
                        1978, owned and controlled little productive 
                        capital is essential to provide for the well-
                        being of this Nation by promoting their 
                        increased participation in the free enterprise 
                        system of the United States;
                          (iv) such development of business ownership 
                        among groups that, on October 24, 1978, owned 
                        and controlled little productive capital will 
                        be greatly facilitated through the creation of 
                        a small business ownership development program, 
                        which shall provide services including 
                        financial, management, and technical 
                        assistance;
                          (v) the power to let Federal contracts under 
                        the business development program can be an 
                        effective procurement assistance tool for 
                        development of business ownership among groups 
                        that own and control little productive capital;
                          (vi) the opportunity for full participation 
                        in our free enterprise system by socially and 
                        economically disadvantaged persons is essential 
                        if we are to obtain social and economic 
                        equality for such persons and improve the 
                        functioning of our national economy;
                          (vii) many such persons are socially 
                        disadvantaged because of their identification 
                        as members of certain groups that have suffered 
                        the effects of discriminatory practices or 
                        similar invidious circumstances over which they 
                        have no control;
                          (viii) those groups include Black Americans, 
                        Hispanic Americans, Native Americans, Indian 
                        tribes, Asian Pacific Americans, Native 
                        Hawaiian Organizations, and other minorities;
                          (ix) it is in the national interest to 
                        expeditiously ameliorate the conditions of 
                        socially and economically disadvantaged groups;
                          (x) those conditions can be improved by 
                        providing the maximum practicable opportunity 
                        for the development of small business concerns 
                        owned by members of socially and economically 
                        disadvantaged groups;
                          (xi) that development can be materially 
                        advanced through the procurement by the United 
                        States of articles, equipment, supplies, 
                        services, materials, and construction work from 
                        those concerns; and
                          (xii) those procurements also benefit the 
                        United States by encouraging the expansion of 
                        suppliers for the procurements, thereby 
                        encouraging competition among the suppliers and 
                        promoting economy in the procurements.
                  (B) Purpose.--The purpose of the business development 
                program is to--
                          (i) foster business firm ownership and 
                        development by individuals in groups that own 
                        and control little productive capital;
                          (ii) promote the competitive viability of 
                        those firms in the marketplace by providing 
                        such available financial, technical, and 
                        management assistance as may be necessary;
                          (iii) promote the business development of 
                        small business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals so that those concerns can compete 
                        on an equal basis in the American economy;
                          (iv) promote the competitive viability of 
                        those concerns in the marketplace by providing 
                        such available contract, financial, technical, 
                        and management assistance as may be necessary; 
                        and
                          (v) clarify and expand the program for the 
                        procurement by the United States of articles, 
                        supplies, services, materials, and construction 
                        work from small business concerns owned by 
                        socially and economically disadvantaged 
                        individuals.
          (2) 1988.--
                  (A) Findings.--Congress finds that--
                          (i) the business development program and the 
                        award of contracts under chapter 233 remain a 
                        primary tool for improving opportunities for 
                        small business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals in the Federal procurement process 
                        and bringing those concerns into the Nation's 
                        economic mainstream;
                          (ii) although some progress has resulted from 
                        the business development program, it has 
                        generally failed to meet its objectives, which 
                        remain as valid on November 15, 1988, as when 
                        the program was initiated;
                          (iii) too few concerns that have exited the 
                        business development program have been prepared 
                        to compete successfully in the open marketplace 
                        on competitive procurements, and many concerns 
                        have developed an unhealthy dependency on sole-
                        source contracts by the time the concerns are 
                        required to leave the program;
                          (iv) the application and certification 
                        process for admitting new participants to the 
                        business development program is inordinately 
                        lengthy and burdensome;
                          (v) the Administrator has often not 
                        efficiently and equitably administered and 
                        managed the business development program in a 
                        manner that provided clear lines of 
                        responsibility for implementing and monitoring 
                        many of the administrative duties under the 
                        program;
                          (vi) the Administrator and some program 
                        participants have given insufficient attention 
                        and support to the business development goals 
                        of the business development program and instead 
                        have focused almost entirely on the size of 
                        contract awards or the number of concerns 
                        certified to participate in the program;
                          (vii) many Federal procuring agencies have 
                        failed to identify and offer the amount of 
                        contract support necessary to allow for 
                        diversification and growth of disadvantaged 
                        businesses participating in the business 
                        development program;
                          (viii) contract support and business 
                        development expenses have been misused by both 
                        the Administrator and participants in the 
                        business development program and have not been 
                        equitably distributed pursuant to objective 
                        criteria;
                          (ix) the widespread perception of undue 
                        political influence in the operation and 
                        administration of the business development 
                        program has significantly contributed to the 
                        program's poor image and has deterred 
                        utilization of the program by socially and 
                        economically disadvantaged concerns and by 
                        Federal procuring agencies; and
                          (x) it is imperative that increased 
                        competition and other substantial reforms be 
                        accomplished in the business development 
                        program to promote the congressionally mandated 
                        business development objectives and purposes.
                  (B) Purposes.--The purposes of Public Law 100-656 
                (102 Stat. 3853) are--
                          (i) to affirm that the business development 
                        program and chapter 233 shall be used 
                        exclusively for business development purposes 
                        to help small businesses owned and controlled 
                        by socially and economically disadvantaged 
                        individuals compete on an equal basis in the 
                        mainstream of the American economy;
                          (ii) to affirm that the measure of success of 
                        the business development program, including the 
                        authority under chapter 233, shall be the 
                        number of competitive firms that--
                                  (I) exit the business development 
                                program without being unreasonably 
                                reliant on contracts under chapter 233; 
                                and
                                  (II) are able to compete on an equal 
                                basis in the mainstream of the American 
                                economy;
                          (iii) to ensure that program benefits accrue 
                        to individuals who are both socially and 
                        economically disadvantaged;
                          (iv) to increase the number of small 
                        businesses owned and controlled by socially and 
                        economically disadvantaged individuals from 
                        which the United States may purchase products 
                        and services (including construction work); and
                          (v) to ensure integrity, competence, and 
                        efficiency in the administration of business 
                        development services and the Federal 
                        contracting opportunities made available to 
                        small business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals.
  (e) Victims of Floods and Other Catastrophes; Small Business Concerns 
That Are Displaced as a Result of Federally Aided Construction 
Programs.--It is the policy of Congress that the Government should 
assist--
          (1) victims of floods and other catastrophes; and
          (2) small business concerns that are displaced as a result of 
        federally aided construction programs.
  (f) Women's Business Ownership.--
          (1) Findings.--With respect to the programs and activities 
        authorized by this subtitle and subtitle II, Congress finds 
        that--
                  (A) women-owned business has become a major 
                contributor to the American economy by providing goods 
                and services, revenues, and jobs;
                  (B) over the 2 decades preceding October 25, 1988, 
                there were substantial gains in the social and economic 
                status of women as women sought economic equality and 
                independence;
                  (C) despite that progress, women, as a group, are 
                subjected to discrimination in entrepreneurial 
                endeavors due to their gender;
                  (D) that discrimination takes many overt and subtle 
                forms having an adverse impact on the ability to raise 
                or secure capital, to acquire managerial talents, and 
                to capture market opportunities;
                  (E) it is in the national interest to expeditiously 
                remove discriminatory barriers to the creation and 
                development of small business concerns owned and 
                controlled by women;
                  (F) the removal of those barriers is essential to 
                provide a fair opportunity for full participation in 
                the free enterprise system by women and to further 
                increase the economic vitality of the Nation;
                  (G) increased numbers of small business concerns 
                owned and controlled by women will directly benefit the 
                United States Government by expanding the potential 
                number of suppliers of goods and services to the 
                Government; and
                  (H) programs and activities designed to assist small 
                business concerns owned and controlled by women must be 
                implemented in such a way as to remove those 
                discriminatory barriers while not adversely affecting 
                the rights of socially and economically disadvantaged 
                individuals.
          (2) Purpose.--The purpose of the programs and activities 
        conducted under this subtitle and subtitle II that assist women 
        entrepreneurs is to--
                  (A) vigorously promote the legitimate interests of 
                small business concerns owned and controlled by women;
                  (B) remove, insofar as possible, the discriminatory 
                barriers that are encountered by women in accessing 
                capital and other factors of production; and
                  (C) require that--
                          (i) the Government engage in a systematic and 
                        sustained effort to identify, define, and 
                        analyze the discriminatory barriers facing 
                        women; and
                          (ii) that effort directly involve the 
                        participation of women business owners in the 
                        public/private sector partnership.
  (g) Subcontracting.--
          (1) Participation in performance of contracts.--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).
          (2) Timely payment of amounts due.--It is 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.
  (h) Research and Development.--Research and development are major 
factors in the growth and progress of industry and the national 
economy. The expense of carrying on research and development programs 
is beyond the means of many small business concerns, and small business 
concerns are handicapped in obtaining the benefits of research and 
development programs conducted at Government expense. Small business 
concerns are thereby placed at a competitive disadvantage. This weakens 
the competitive free enterprise system and prevents the orderly 
development of the national economy. It is the policy of Congress that 
assistance be given to small business concerns to enable small business 
concerns to undertake and to obtain the benefits of research and 
development in order to maintain and strengthen the competitive free 
enterprise system and the national economy.
  (i) Mentoring Networks.--Congress finds that--
          (1) the SBIR program and STTR program create jobs, increase 
        capacity for technological innovation, and boost international 
        competitiveness;
          (2) increasing the quantity of applications from all States 
        to the SBIR program and STTR program would enhance competition 
        for awards under the FAST program and the quality of the 
        completed projects; and
          (3) mentoring is a natural complement to the FAST program of 
        reaching out to new companies regarding the SBIR program and 
        STTR program as an effective and low cost way to improve the 
        likelihood that the companies will succeed in the SBIR program 
        and STTR program in developing and commercializing their 
        research.
  (j) Interest Rates Charged by Small Business Investment Companies.--
The purpose of section 303112 of this title is to facilitate the 
orderly and necessary flow of long-term loans and equity funds from 
small business investment companies to small business concerns.
  (k) SBIR Programs.--
          (1) 1982 findings and purposes.--
                  (A) Findings.--Congress finds that--
                          (i) technological innovation--
                                  (I) creates jobs;
                                  (II) increases productivity, 
                                competition, and economic growth; and
                                  (III) is a valuable counterforce to 
                                inflation and the United States 
                                balance-of-payments deficit;
                          (ii) while small business is the principal 
                        source of significant innovations in the 
                        Nation, the vast majority of federally funded 
                        research and development is conducted by large 
                        businesses, universities, and Government 
                        laboratories; and
                          (iii) small businesses--
                                  (I) are among the most cost-effective 
                                performers of research and development; 
                                and
                                  (II) are particularly capable of 
                                developing research and development 
                                results into new products.
                  (B) Purposes.--The purposes of Public Law 97-219 (96 
                Stat. 217) are--
                          (i) to stimulate technological innovation;
                          (ii) to use small business to meet Federal 
                        research and development needs;
                          (iii) to foster and encourage participation 
                        by minority and disadvantaged persons in 
                        technological innovation; and
                          (iv) to increase private sector 
                        commercialization innovations derived from 
                        Federal research and development.
          (2) 1992 findings and purposes.--
                  (A) Findings.--Congress finds that--
                          (i) the SBIR programs have been a successful 
                        method of involving small business concerns in 
                        Federal research and development;
                          (ii) the SBIR programs have been an effective 
                        catalyst for the development of technological 
                        innovations by small business concerns;
                          (iii) SBIR program participants have provided 
                        high quality research and development in a 
                        cost-effective manner;
                          (iv) the innovative products and services 
                        developed by small business concerns 
                        participating in SBIR programs have been 
                        important to the national defense and to the 
                        missions of the other participating Federal 
                        agencies;
                          (v) SBIR programs have effectively stimulated 
                        the commercialization of technology developed 
                        through Federal research and development, 
                        benefiting the public and private sectors of 
                        the Nation;
                          (vi) by encouraging the development and 
                        commercialization of technological innovations, 
                        the SBIR program have created jobs, expanded 
                        business opportunities for small firms, 
                        stimulated the development of new products and 
                        services, and improved the competitiveness of 
                        the Nation's high technology industries;
                          (vii) SBIR programs have helped increase 
                        exports from small business concerns;
                          (viii) despite the general success of the 
                        SBIR programs, the proportion of Federal 
                        research and development funds received by 
                        small business concerns has not increased over 
                        the life of the programs, but has remained at 3 
                        percent; and
                          (ix) although the participating Federal 
                        agencies have successfully implemented most 
                        aspects of the SBIR programs, additional 
                        outreach efforts are necessary to stimulate 
                        increased participation of socially and 
                        economically disadvantaged small business 
                        concerns.
                  (B) Purposes.--The purposes of title I of Public Law 
                102-564 (106 Stat. 4249) are--
                          (i) to expand and improve the SBIR programs;
                          (ii) to emphasize the SBIR programs' goal of 
                        increasing private sector commercialization of 
                        technology developed through Federal research 
                        and development;
                          (iii) to increase small business 
                        participation in Federal research and 
                        development; and
                          (iv) to improve the Federal Government's 
                        dissemination of information concerning the 
                        SBIR programs, particularly with regard to 
                        program participation by small business 
                        concerns owned and controlled by women and by 
                        small business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals.
          (3) 2000 findings.--Congress finds that--
                  (A) SBIR programs are highly successful in involving 
                small businesses in federally funded research and 
                development;
                  (B) SBIR programs made the cost-effective and unique 
                research and development capabilities possessed by the 
                small businesses of the Nation available to Federal 
                agencies;
                  (C) the innovative goods and services developed by 
                small businesses that participated in SBIR programs 
                have produced innovations of critical importance in a 
                wide variety of high-technology fields, including 
                biology, medicine, education, and defense;
                  (D) SBIR programs are a catalyst in--
                          (i) the promotion of research and 
                        development;
                          (ii) the commercialization of innovative 
                        technology;
                          (iii) the development of new products and 
                        services; and
                          (iv) the continued excellence of the Nation's 
                        high-technology industries; and
                  (E) the continuation of SBIR programs will--
                          (i) provide expanded opportunities for 1 of 
                        the Nation's vital resources, its small 
                        businesses;
                          (ii) foster invention, research, and 
                        technology;
                          (iii) create jobs; and
                          (iv) increase this Nation's competitiveness 
                        in international markets.
Sec. 101102. Definitions
  In this title:
          (1) 1st tier subcontractor.--The term ``1st tier 
        subcontractor'', with respect to a contract, means a 
        subcontractor that has a subcontract directly with the prime 
        contractor on the contract.
          (2) Accredited lenders program.--The term ``accredited 
        lenders program'' means the program under section 331107 of 
        this title.
          (3) Activated.--The term ``activated'', with respect to a 
        reservist, means having received an order placing the reservist 
        on active duty.
          (4) Active duty.--The term ``active duty'' has the meaning 
        given the term in section 101 of title 10.
          (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 small business concern 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 271102(f) of this title.
          (11) Base closure area.--The term ``base closure area'' has 
        the meaning given the term in section 253101 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 1 or more small 
                        business concerns; or
                          (ii) was suitable for award to 1 or more 
                        small business concerns.
          (15) Business development program.--The term ``business 
        development program'' means the program under division F of 
        subtitle II.
          (16) Certified development company program.--The term 
        ``certified development company program'' means the program 
        under division D of subtitle III.
          (17) Chief acquisition officer.--The term ``Chief Acquisition 
        Officer'' means the employee of a Federal agency appointed or 
        designated as the Chief Acquisition Officer for the Federal 
        agency under section 1702 of title 41.
          (18) 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.
          (19) Consolidated contract.--The term ``consolidated 
        contract'' means a contract resulting from the consolidation of 
        contract requirements.
          (20) Consolidation of contract requirements.--The term 
        ``consolidation of contract requirements'', with respect to 
        contract requirements of a Federal agency, means a use of a 
        solicitation to obtain offers for a single contract or a 
        multiple award contract--
                  (A) to satisfy 2 or more requirements of the Federal 
                agency for goods or services that have been provided to 
                or performed for the Federal agency under 2 or more 
                separate contracts lower in cost than the total cost of 
                the contract for which the offers are solicited; or
                  (B) to satisfy requirements of the Federal agency for 
                construction projects to be performed at 2 or more 
                discrete sites.
          (21) Contracting officer.--The term ``contracting officer'' 
        has the meaning given the term in section 2101 of title 41.
          (22) 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.
          (23) Defense agency.--The term ``defense agency'' has the 
        meaning given the term in section 101 of title 10.
          (24) 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.
          (25) Disabled veteran.--The term ``disabled veteran'' has the 
        meaning given the term in section 4211 of title 38.
          (26) Disadvantaged owner.--The term ``disadvantaged owner'' 
        has the meaning given the term in section 231101 of this title.
          (27) 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.
          (28) Disaster area.--The term ``disaster area'' means an area 
        affected by a natural or other disaster, as determined for 
        purposes of section 221101 or 221102 of this title, during the 
        period of the declaration.
          (29) 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.
          (30) Disaster loan program.--The term ``disaster loan 
        program'' means the program under chapter 221.
          (31) Economically disadvantaged indian tribe.--The term 
        ``economically disadvantaged Indian tribe'' has the meaning 
        given the term in section 231101 of this title.
          (32) Energy efficiency project.--The term ``energy efficiency 
        project'' means the installation or upgrading of equipment that 
        results in a significant reduction in energy usage.
          (33) 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).
          (34) ESOP.--Effective on and after the date the Administrator 
        and the Secretary of Veterans Affairs jointly issue 
        implementing regulations described in section 1832(e) of the 
        National Defense Authorization Act for Fiscal Year 2017 (Public 
        Law 114-328, 130 Stat. 2660), the term ``ESOP'' has the meaning 
        given the term ``employee stock ownership plan'' in section 
        4975(e)(7) of the Internal Revenue Code of 1986 (26 U.S.C. 
        4975(e)(7)).
          (35) Expedited disaster assistance business loan guarantee 
        program.--The term ``expedited disaster assistance business 
        loan guarantee program'' means the program under chapter 227.
          (36) Export assistance center.--The term ``export assistance 
        center'' means a 1-stop shop for United States exporters 
        established by the United States and Foreign Commercial Service 
        of the Department of Commerce pursuant to section 2301(b)(8) of 
        the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 
        4721(b)(8)).
          (37) Export development activity.--The term ``export 
        development activity'' includes--
                  (A) obtaining a standby letter of credit when 
                required as a bid bond, performance bond, or advance 
                payment guarantee;
                  (B) participation in a trade show that takes place 
                outside the United States;
                  (C) translation of product brochures or catalogues 
                for use in markets outside the United States;
                  (D) obtaining a general line of credit for export 
                purposes;
                  (E) performing a service contract from buyers located 
                outside the United States;
                  (F) obtaining transaction-specific financing 
                associated with completing export orders;
                  (G) purchasing real estate or equipment to be used in 
                the production of a good or service for export;
                  (H) providing a term loan or other financing to 
                enable a small business concern, including an export 
                trading company and an export management company, to 
                develop a market outside the United States; and
                  (I) acquiring, constructing, renovating, modernizing, 
                improving, or expanding a production facility or 
                equipment to be used in the United States in the 
                production of a good or service for export.
          (38) Export express program.--The term ``export express 
        program'' means the program under section 205114 of this title.
          (39) Export finance specialist.--The term ``export finance 
        specialist'' means a full-time equivalent employee of the 
        Office of International Trade assigned to an export assistance 
        center to carry out the duties described in section 277105 of 
        this title.
          (40) Export working capital program.--The term ``export 
        working capital program'' means the program established under 
        section 205108 of this title.
          (41) Express lender.--The term ``express lender'' means a 
        lender authorized by the Administrator to participate in the 
        express loan program.
          (42) Express loan.--
                  (A) Export express program.--For purposes of the 
                export express program, the term ``express loan'' means 
                a loan in which a lender uses to the maximum extent 
                practicable the loan analyses, procedures, and 
                documentation of the lender to provide expedited 
                processing of a loan application.
                  (B) Express loan.--For purposes of the express loan 
                program, the term ``express loan'' means a loan made 
                pursuant to section 203120 of this title in which a 
                lender utilizes to the maximum extent practicable its 
                own loan analyses, procedures, and documentation.
          (43) 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.
          (44) Extraordinary disaster.--The term ``extraordinary 
        disaster'' means a major disaster that the Administrator 
        declares to be an extraordinary disaster under section 221108 
        of this title.
          (45) Extraordinary disaster-related substantial economic 
        injury.--The term ``extraordinary disaster-related substantial 
        economic injury'' means economic injury to a small business 
        concern that results in the inability of the small 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 small 
                business concern;
        because the small business concern relies on materials from the 
        extraordinary disaster area or sells or markets in the 
        extraordinary disaster area.
          (46) FAST program.--The term ``FAST program'' means the 
        program under section 263305 of this title.
          (47) 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.
          (48) General business loan program.--The term ``general 
        business loan program'' means the program under division B of 
        subtitle II.
          (49) Hedge fund.--The term ``hedge fund'' has the meaning 
        given the term in section 13(h)(2) of the Bank Holding Company 
        Act of 1956 (12 U.S.C. 1851(h)(2)).
          (50) Historically underutilized business zone.--The term 
        ``historically underutilized business zone'' has the meaning 
        given the term in section 253101 of this title.
          (51) Homeowner.--The term ``homeowner'' includes an owner or 
        lessee of residential property (including personal property of 
        the owner or lessee of the residential property).
          (52) HUBZone.--The term ``HUBZone'' has the meaning given the 
        term in section 253101 of this title.
          (53) HUBZone program.--The term ``HUBZone program'' means the 
        program under chapter 253.
          (54) HUBZone small business concern.--The term ``HUBZone 
        small business concern'' has the meaning given the term in 
        section 253101 of this title.
          (55) Immediate disaster assistance program.--The term 
        ``immediate disaster assistance program'' means the program 
        under chapter 225.
          (56) 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).
          (57) Lower tier subcontractor.--The term ``lower tier 
        subcontractor'' means a subcontractor other than a 1st tier 
        subcontractor.
          (58) 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).
          (59) Major disaster area.--The term ``major disaster area'' 
        means the area for which a major disaster is declared.
          (60) Microloan program.--The term ``microloan program'' means 
        the program under chapter 213.
          (61) Military department.--The term ``military department'' 
        has the meaning given the term in section 101 of title 10.
          (62) Multiple award contract.--The term ``multiple award 
        contract'' means--
                  (A) a multiple award task order contract or delivery 
                order contract that is entered into under chapter 41 of 
                title 41; and
                  (B) any other indefinite delivery, indefinite 
                quantity contract that is entered into by the head of a 
                Federal agency with 2 or more sources pursuant to the 
                same solicitation.
          (63) 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.
          (64) New markets venture capital company program.--The term 
        ``new markets venture capital company program'' means the 
        program under chapter 305.
          (65) 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.
          (66) Preferred lender.--The term ``preferred lender'' means a 
        lender participating in the preferred lenders program.
          (67) Preferred lenders program.--The term ``preferred lenders 
        program'' means the preferred lenders program carried out under 
        section 103202(f)(3) of this title.
          (68) Premier certified lenders program.--The term ``premier 
        certified lenders program'' means the program under section 
        331108 of this title.
          (69) PRIME program.--The term ``PRIME program'' means the 
        program under chapter 401.
          (70) Private disaster assistance program.--The term ``private 
        disaster assistance program'' means the program under chapter 
        223.
          (71) Private equity firm.--The term ``private equity firm'' 
        has the meaning given the term ``private equity fund'' in 
        section 13(h)(2) of the Bank Holding Company Act of 1956 (12 
        U.S.C. 1851(h)(2)).
          (72) Procuring agency.--The term ``procuring agency'' means a 
        Federal agency that has procurement power.
          (73) 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.
          (74) Qualified census tract.--
                  (A) In general.--The term ``qualified census tract'' 
                has the meaning given the term in section 
                42(d)(5)(B)(ii) of the Internal Revenue Code of 1986 
                (26 U.S.C. 42(d)(5)(B)(ii)).
                  (B) Exception for puerto rico.--
                          (i) In general.--For a metropolitan 
                        statistical area in Puerto Rico, the term 
                        ``qualified census tract'' has the meaning 
                        given the term in clause (ii) of section 
                        42(d)(5)(B) of the Internal Revenue Code of 
                        1986 (26 U.S.C. 42(d)(5)(B)(ii)) as applied 
                        without regard to subclause (II) of that 
                        clause.
                          (ii) Applicability.--This subparagraph 
                        applies on the earlier of--
                                  (I) the date that is 10 years after 
                                the date on which the Administrator 
                                implements this subparagraph; or
                                   (II) the date on which the Financial 
                                Oversight and Management Board for 
                                Puerto Rico established by section 101 
                                of the Puerto Rico Oversight, 
                                Management, and Economic Stability Act 
                                (48 U.S.C. 2121) ceases to exist.
          (75) Qualified employee trust.--The term ``qualified employee 
        trust'' has the meaning given the term in section 205109(a) of 
        this title.
          (76) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given the term in section 253101 of this title.
          (77) 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.
          (78) Qualified nonmetropolitan county.--The term ``qualified 
        nonmetropolitan county'' has the meaning given the term in 
        section 253101 of this title.
          (79) Redesignated area.--The term ``redesignated area'' has 
        the meaning given the term in section 253101 of this title.
          (80) 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).
          (81) Renewable fuel capital investment pilot program.--The 
        term ``renewable fuel capital investment pilot program'' means 
        the program under chapter 307.
          (82) Reservist.--The term ``reservist'' means a member of a 
        reserve component of the Armed Forces, as described in section 
        10101 of title 10.
          (83) SBA.--The term ``SBA'' means the Small Business 
        Administration.
          (84) SBA district.--The term ``SBA district'' means a part of 
        an SBA region designated by the Administrator as a district.
          (85) SBA district office.--The term ``SBA district office'' 
        means a district office of SBA established under section 
        103101(c) of this title.
          (86) SBA region.--The term ``SBA region'' means a geographic 
        region served by an SBA regional office.
          (87) SBA regional office.--The term ``SBA regional office'' 
        means a regional office of SBA established under section 
        103101(c) of this title.
          (88) SBIR agency.--The term ``SBIR agency'' has the meaning 
        given the term in section 261101 of this title.
          (89) SBIR program.--The term ``SBIR program'' has the meaning 
        given the term in section 261101 of this title.
          (90) SCORE.--The term ``SCORE'' means a service corps of 
        retired executives established under section 241103(b) of this 
        title.
          (91) Senior procurement executive.--The term ``senior 
        procurement executive'' means an official designated under 
        section 1702 of title 41 as the senior procurement executive 
        for a Federal agency.
          (92) 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).
          (93) Simplified acquisition threshold.--The term ``simplified 
        acquisition threshold'' has the meaning given the term in 
        section 134 of title 41.
          (94) 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. 1141 et seq.) 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.
          (95) Small business concern.--The term ``small business 
        concern'' has the meaning given the term under section 101103 
        of this title.
          (96) Small business concern owned and controlled by service-
        disabled veterans.--
                  (A) Effective prior to joint issuance of implementing 
                regulations.--Effective prior to the date on which the 
                Administrator and the Secretary of Veterans Affairs 
                jointly issue implementing regulations described in 
                section 1832(e) of the National Defense Authorization 
                Act for Fiscal Year 2017 (Public Law 114-328, 130 Stat. 
                2660), the term ``small business concern owned and 
                controlled by service-disabled veterans'' means a small 
                business concern--
                          (i) not less than 51 percent of which is 
                        owned by 1 or more service-disabled veterans 
                        or, in the case of any publicly owned business, 
                        not less than 51 percent of the stock of which 
                        is owned by 1 or more service-disabled 
                        veterans; and
                          (ii) the management and daily business 
                        operations of which are controlled by 1 or more 
                        service-disabled veterans or, in the case of a 
                        veteran with permanent and severe disability, 
                        the spouse or permanent caregiver of the 
                        veteran.
                  (B) Effective with joint issuance of implementing 
                regulations.--Effective on and after the date on which 
                the Administrator and the Secretary of Veterans Affairs 
                jointly issue implementing regulations described in 
                section 1832(e) of the National Defense Authorization 
                Act for Fiscal Year 2017 (Public Law 114-328, 130 Stat. 
                2660), the term ``small business concern owned and 
                controlled by service-disabled veterans'' means any of 
                the following:
                          (i) A small business concern--
                                  (I) not less than 51 percent of which 
                                is owned by 1 or more service-disabled 
                                veterans or, in the case of any 
                                publicly owned business, not less than 
                                51 percent of the stock (not including 
                                any stock owned by an ESOP) of which is 
                                owned by 1 or more service-disabled 
                                veterans; and
                                  (II) the management and daily 
                                business operations of which are 
                                controlled by 1 or more service-
                                disabled veterans or, in the case of a 
                                veteran with permanent and severe 
                                disability, the spouse or permanent 
                                caregiver of the veteran.
                          (ii) A small business concern--
                                  (I) not less than 51 percent of which 
                                is owned by 1 or more service-disabled 
                                veterans with a disability that is 
                                rated by the Secretary of Veterans 
                                Affairs as a permanent and total 
                                disability who are unable to manage the 
                                daily business operations of such 
                                concern; or
                                  (II) in the case of a publicly owned 
                                business, not less than 51 percent of 
                                the stock (not including any stock 
                                owned by an ESOP) of which is owned by 
                                1 or more such veterans.
                          (iii)(I) During the time period described in 
                        subclause (II), a small business concern that 
                        was a small business concern described in 
                        clause (i) or (ii) immediately prior to the 
                        death of a service-disabled veteran who was the 
                        owner of the concern, the death of whom causes 
                        the concern to be less than 51 percent owned by 
                        1 or more service-disabled veterans, if--
                                  (aa) the surviving spouse of the 
                                deceased veteran acquires such 
                                veteran's ownership interest in such 
                                concern;
                                  (bb) such veteran had a service-
                                connected disability (as defined in 
                                section 101(16) of title 38) rated as 
                                100 percent disabling under the laws 
                                administered by the Secretary of 
                                Veterans Affairs or such veteran died 
                                as a result of a service-connected 
                                disability; and
                                  (cc) immediately prior to the death 
                                of such veteran, and during the period 
                                described in subclause (II), the small 
                                business concern is included in the 
                                database described in section 8127(f) 
                                of title 38.
                          (II) The time period described in this 
                        subclause is the time period beginning on the 
                        date of the veteran's death and ending on the 
                        earliest of--
                                  (aa) the date on which the surviving 
                                spouse remarries;
                                  (bb) the date on which the surviving 
                                spouse relinquishes an ownership 
                                interest in the small business concern; 
                                or
                                  (cc) the date that is 10 years after 
                                the date of the death of the veteran.
          (97) 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 231101 of this title.
          (98) 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 1 
                or more veterans; and
                  (B) the management and daily business operations of 
                which are controlled by 1 or more veterans.
          (99) Small business concern owned and controlled by women.--
        The term ``small business concern owned and controlled by 
        women'' means a small business concern--
                  (A) at least 51 percent of which is owned by 1 or 
                more women; and
                  (B) the management and daily business operations of 
                the business of which are controlled by 1 or more 
                women.
          (100) Small business development center.--The term ``small 
        business development center'' means a small business 
        development center that receives financial assistance under 
        chapter 271.
          (101) Small business development center program.--The term 
        ``small business development center program'' means the small 
        business development center program under chapter 271.
          (102) Small business investment company program.--The term 
        ``small business investment company program'' means the program 
        under chapter 303.
          (103) 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.
          (104) Socially and economically disadvantaged individual.--
        The term ``socially and economically disadvantaged individual'' 
        has the meaning given the term in section 231101 of this title.
          (105) Socially disadvantaged individual.--The term ``socially 
        disadvantaged individual'' has the meaning given the term in 
        section 231101 of this title.
          (106) STTR agency.--The term ``STTR agency'' has the meaning 
        given the term in section 261101 of this title.
          (107) STTR program.--The term ``STTR program'' has the 
        meaning given the term in section 261101 of this title.
          (108) Subcontract.--The term ``subcontract'' means a binding 
        agreement between a contractor and a person for the person to 
        perform all or part of the work that the contractor undertakes 
        to perform under a contract with another person.
          (109) Subcontractor.--The term ``subcontractor'' means a 
        person that enters into a subcontract with a contractor as 
        described in paragraph (107).
          (110) Subcontractor at any tier.--The term ``subcontractor at 
        any tier'' means--
                  (A) a 1st tier subcontractor; and
                  (B) a lower tier subcontractor.
          (111) Surety bond guarantee program.--The term ``surety bond 
        guarantee program'' means the program under chapter 321.
          (112) Surviving spouse.--Effective on and after the date the 
        Administrator and the Secretary of Veterans Affairs jointly 
        issue implementing regulations described in section 1832(e) of 
        the National Defense Authorization Act for Fiscal Year 2017 
        (Public Law 114-328, 130 Stat. 2660), the term ``surviving 
        spouse'' has the meaning given the term in section 101(3) of 
        title 38.
          (113) United states.--The term ``United States'' includes the 
        States, the District of Columbia, Puerto Rico, and any other 
        territory (including a possession) of the United States.
          (114) Venture capital operating company.--The term ``venture 
        capital operating company'' means an entity described in clause 
        (i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of 
        Federal Regulations (or any successor regulation).
          (115) Veteran.--The term ``veteran'' has the meaning given 
        the term in section 101 of title 38.
          (116) Women's business center.--The term ``women's business 
        center'' means a women's business center operating under 
        chapter 273.
          (117) Women's business center program.--The term ``women's 
        business center program'' means the women's business center 
        program under chapter 273.
Sec. 101103. Small business concerns
  (a) In General.--In this title, the term ``small business concern'' 
means a business concern (including an agricultural enterprise) that--
          (1) is independently owned and operated; and
          (2) is not dominant in its field of operation.
  (b) Size Standards.--
          (1) In general.--In addition to the criteria specified in 
        subsection (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.
          (2) Additional criteria.--The standards described in 
        paragraph (1) may use--
                  (A) number of employees, dollar volume of business, 
                net worth, net income, or a combination thereof; or
                  (B) other appropriate factors.
          (3) 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--
                  (A) is proposed after an opportunity for public 
                notice and comment;
                  (B) provides for determining--
                          (i) 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;
                          (ii) 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;
                          (iii) the size of other business concerns on 
                        the basis of data over a period of not less 
                        than 3 years; or
                          (iv) other appropriate factors; and
                  (C) is approved by the Administrator.
          (4) Variation by industry; consideration of other factors.--
        In establishing or approving a size standard under this 
        subsection, the Administrator shall--
                  (A) ensure that the size standard varies from 
                industry to industry to the extent necessary to reflect 
                the differing characteristics of the various 
                industries; and
                  (B) consider other factors that the Administrator 
                considers to be relevant.
          (5) Alternative size standards.--
                  (A) In general.--The Administrator shall establish an 
                alternative size standard for applicants for business 
                loans under the general business loan program and 
                applicants for development company loans under the 
                certified development company program.
                  (B) Use of maximum tangible net worth and average net 
                income.--The alternative size standard under 
                subparagraph (A) shall use maximum tangible net worth 
                and average net income as an alternative to the use of 
                industry standards.
          (6) Proposed rulemaking.--In conducting rulemaking to revise, 
        modify, or establish a size standard under this section, the 
        Administrator shall consider, address, and make publicly 
        available as part of the notice of proposed rulemaking and 
        notice of final rule--
                  (A) a detailed description of the industry for which 
                the new size standard is proposed;
                  (B) an analysis of the competitive environment for 
                that industry;
                  (C) the approach that the Administrator used to 
                develop the proposed standard, including the source of 
                all data used to develop the proposed rulemaking; and
                  (D) the anticipated effect of the proposed rulemaking 
                on the industry, including--
                          (i) the number of concerns that do not 
                        currently qualify as a small business concern 
                        that would qualify as a small business concern 
                        under the proposed rulemaking; and
                          (ii) the number of concerns that currently 
                        qualify as a small business concern that would 
                        not qualify as a small business concern under 
                        the proposed rulemaking.
          (7) Common size standards.--In carrying out this subsection, 
        the Administrator may establish or approve a single size 
        standard for a grouping of 4-digit North American Industry 
        Classification System codes only if the Administrator makes 
        publicly available, not later than the date on which the size 
        standard is established or approved, a justification 
        demonstrating that the size standard is appropriate for each 
        individual industry classification included in the grouping.
          (8) Number of size standards.--The Administrator shall not 
        limit the number of size standards established under this 
        subsection, but shall assign the appropriate size standard to 
        each North American Industry Classification System code.
          (9) Listing of additional size standards.--The Administrator 
        shall prescribe regulations to carry out this subsection. 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.
          (10) Updated size standards.--
                  (A) Rolling review.--
                          (i) In general.--The Administrator shall--
                                  (I) during every 18-month period, 
                                conduct a detailed review of not less 
                                than \1/3\ of the size standards for 
                                small business concerns established 
                                under this subsection, which shall 
                                include holding not less than 2 public 
                                forums located in different geographic 
                                regions of the United States;
                                  (II) after completing a review under 
                                subclause (I) make appropriate 
                                adjustments to the size standards to 
                                reflect market conditions;
                                  (III) make publicly available--
                                          (aa) information regarding 
                                        the factors evaluated as part 
                                        of each review conducted under 
                                        subclause (I); and
                                          (bb) information regarding 
                                        the criteria used for any 
                                        revised size standards 
                                        promulgated under subclause 
                                        (II); and
                                  (IV) not later than 30 days after the 
                                date on which the Administrator 
                                completes a review under subclause (I), 
                                submit to the Committee on Small 
                                Business and Entrepreneurship of the 
                                Senate and the Committee on Small 
                                Business of the House of 
                                Representatives and make publicly 
                                available a report regarding the 
                                review, including why the 
                                Administrator--
                                          (aa) used the factors and 
                                        criteria described in subclause 
                                        (III); and
                                          (bb) adjusted or did not 
                                        adjust any size standard that 
                                        was reviewed.
                          (ii) Complete review of size standards.--The 
                        Administrator shall ensure that each size 
                        standard for small business concerns 
                        established under this subsection is reviewed 
                        under clause (i) not less frequently than once 
                        every 5 years.
                  (B) Regulations.--The Administrator shall promulgate 
                regulations for conducting the reviews required under 
                subparagraph (A).
                  (C) Agricultural enterprises.--Size standards 
                established for agricultural enterprises under this 
                subsection shall be subject to the rolling review 
                procedures established under this paragraph.
          (11) Petitions for reconsideration of size standards.--
                  (A) In general.--A person may file a petition for 
                reconsideration with the Office of Hearings and Appeals 
                of a size standard revised, modified, or established by 
                the Administrator under this subsection.
                  (B) Time limit.--A person filing a petition for 
                reconsideration of a size standard under subparagraph 
                (A) shall file the petition not later than 30 days 
                after the publication in the Federal Register of the 
                notice of final rule to revise, modify, or establish 
                the size standard.
                  (C) Process for agency review.--In deciding a 
                petition for reconsideration under this paragraph, the 
                Office of Hearings and Appeals shall use the same 
                process that it uses to decide challenges to the size 
                of a small business concern.
                  (D) Judicial review.--The publication of a final rule 
                in the Federal Register described in subparagraph (B) 
                shall be considered final agency action for purposes of 
                seeking judicial review. The filing of a petition for 
                reconsideration under subparagraph (A) shall not be a 
                condition precedent to judicial review of a size 
                standard.
                  (E) Rules or guidance.--The Office of Hearings and 
                Appeals shall begin accepting petitions for 
                reconsideration described in subparagraph (A) after the 
                date on which the Administrator issues a rule or other 
                guidance implementing this paragraph. Notwithstanding 
                the provisions of subparagraph (B), petitions for 
                reconsideration of size standards revised, modified, or 
                established in a Federal Register final rule published 
                between November 25, 2015, and the effective date of 
                such rule or other guidance shall be considered timely 
                if filed within 30 days of such effective date.
  (c) Size and Status Integrity.--
          (1) Recovery of loss from misrepresentation.--
                  (A) In general.--In a case in which it is established 
                that a business concern other than a small business 
                concern, by misrepresentation concerning the small 
                business size and status of the business concern, 
                willfully sought and received an award of a contract, 
                subcontract, cooperative agreement, cooperative 
                research and development agreement, or grant that was 
                set aside, reserved, or otherwise classified as 
                intended for award to small business concerns, the 
                United States, in addition to any other remedy 
                available to the United States, shall recover from the 
                business concern the amount that is equal to the amount 
                expended by the United States on the contract, 
                subcontract, cooperative agreement, cooperative 
                research and development agreement, or grant.
                  (B) Deemed certifications.--The following actions 
                shall be deemed affirmative, willful, and intentional 
                certifications of small business size and status:
                          (i) Submission of a bid or proposal for a 
                        Federal contract, subcontract, cooperative 
                        agreement, cooperative research and development 
                        agreement, or grant that is reserved, set 
                        aside, or otherwise classified as intended for 
                        award to, small business concerns.
                          (ii) Submission of a bid or proposal for a 
                        Federal contract, subcontract, cooperative 
                        agreement, cooperative research and development 
                        agreement reserved, or grant that in any way 
                        encourages a Federal agency to classify the bid 
                        or proposal, if awarded, as an award to a small 
                        business concern.
                          (iii) Registration on a Federal electronic 
                        database for the purpose of being considered 
                        for award of a Federal contract, subcontract, 
                        cooperative agreement, cooperative research and 
                        development agreement, or grant as a small 
                        business concern.
                  (C) Certification by signature of responsible 
                official.--
                          (i) In general.--A solicitation, bid, or 
                        application for a Federal contract, 
                        subcontract, or grant shall contain a 
                        certification concerning the small business 
                        size and status of a business concern seeking 
                        the Federal contract, subcontract, or grant.
                          (ii) Content of certification.--A 
                        certification that a business concern qualifies 
                        as a small business concern of the exact size 
                        and status claimed by the business concern for 
                        purposes of bidding on a Federal contract or 
                        subcontract, or applying for a Federal grant, 
                        shall contain the signature of an authorized 
                        official on the same page on which the 
                        certification is contained.
                  (D) Regulations.--The Administrator shall promulgate 
                regulations to provide adequate protections to 
                individuals and business concerns from liability under 
                this paragraph in cases of unintentional errors, 
                technical malfunctions, and other similar situations.
          (2) Annual Certification.--
                  (A) In general.--A business certified as a small 
                business concern under this title and subtitle II shall 
                annually certify its small business size and, if 
                appropriate, its small business status, by means of a 
                confirming entry on SBA's Online Representations and 
                Certifications Application database, or any successor 
                to the database.
                  (B) Regulations.--The Administrator, in consultation 
                with the Inspector General and the Chief Counsel for 
                Advocacy of SBA, shall promulgate regulations to ensure 
                that--
                          (i) no business concern continues to be 
                        certified as a small business concern on SBA's 
                        Online Representations and Certifications 
                        Application database, or any successor to the 
                        database, without fulfilling the requirements 
                        for annual certification under this paragraph; 
                        and
                          (ii) the requirements of this paragraph are 
                        implemented in a manner presenting the least 
                        possible regulatory burden on small business 
                        concerns.
          (3) Policy on prosecutions of small business size and status 
        fraud.--The Administrator, in consultation with the Attorney 
        General, shall issue a Governmentwide policy on prosecution of 
        small business size and status fraud, which shall direct 
        Federal agencies to appropriately publicize the policy.
  (d) Compliance Guide.--Pursuant to section 212(a) of the Small 
Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 
note, Public Law 104-121), the Administrator shall issue a compliance 
guide to assist business concerns in accurately determining their 
status as a small business concern.

               Chapter 103--Small Business Administration

Subchapter I--Organization
Sec.
103101.  Establishment.
103102.  Administrator.
103103.  Deputy Administrator.
103104.  Associate Administrators.
103105.  Personnel.
103106.  Small Business Investment Division.
103107.  Office of Advocacy.
103108.  Division of Program Certification and Eligibility.
103109.  Office of International Trade.
103110.  Office of Rural Affairs.
103111.  Office of Women's Business Ownership.
103112.  Small Business and Agriculture Regulatory Enforcement 
          Ombudsman; regional small business regulatory fairness boards.
103113.  Office of Veterans Business Development.
103114.  Task force on purchases from people who are blind or severely 
          disabled.
103115.  Advisory committees.
103116.  Bureau of PCLP Oversight.
103117.  Office of Hearings and Appeals.

Subchapter II--Functions
103201.  General powers.
103202.  Financial management.
103203.  Small business economic database.
103204.  Small business computer security and education program.
103205.  General policies governing the granting and denial of 
          applications.
103206.  Retention of records.
103207.  Consultation and cooperation with other Federal agencies.
103208.  Representation of status as small business concern.
103209.  Criminal background checks.

                       Subchapter I--Organization

Sec. 103101. 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.--SBA 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.--SBA's principal office shall be located in the District 
of Columbia. The Administrator may establish such regional, district, 
and branch offices in other places in the United States as the 
Administrator may determine.
Sec. 103102. Administrator
  (a) In General.--The management of SBA 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. 103103. Deputy Administrator
  (a) In General.--The President may appoint a Deputy Administrator of 
SBA, by and with the advice and consent of the Senate.
  (b) Duties.--The Deputy Administrator shall be Acting Administrator 
of SBA during the absence or disability of the Administrator or in the 
event of a vacancy in the office of Administrator.
Sec. 103104. Associate Administrators
  (a) In General.--The Administrator may appoint Associate 
Administrators (including the Associate Administrator specified in 
section 103106 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 103113 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 205104 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 231101 
                of this title and sections 233110, 233112(a)(1), and 
                233118(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 1 
                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 SBA 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 SBA officials described in subparagraph (A).
  (e) Associate Administrator for International Trade.--One of the 
Associate Administrators shall be the Associate Administrator for 
International Trade, who shall be the head of the Office of 
International Trade established under section 103109 of this title.
  (f) Chief Hearing Officer.--One of the Associate Administrators shall 
be the Chief Hearing Officer, who shall administer the Office of 
Hearings and Appeals established under section 103117 of this title.
Sec. 103105. 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 SBA 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 1 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 6101 of title 41.
          (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. 103106. Small Business Investment Division
  (a) Establishment of Division.--There is established in SBA 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 SBA Associate 
Administrators.
Sec. 103107. 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 of Office.--There is established in SBA the 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 SBA 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 this subtitle and 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.
          (7) Regulatory analysis.--The Chief Counsel shall carry out 
        the responsibilities of the Office under chapter 6 of title 5.
  (f) Outreach and Input From Small Businesses on Trade Promotion 
Authority.--
          (1) Definitions.--In this subsection:
                  (A) Agency.--The term ``agency'' has the meaning 
                given the term in section 551 of title 5.
                  (B) Covered trade agreement.--The term ``covered 
                trade agreement'' means a trade agreement that at any 
                time on or after February 24, 2016, is being negotiated 
                pursuant to section 103(b) of the Bipartisan 
                Congressional Trade Priorities and Accountability Act 
                of 2015 (19 U.S.C. 4202(b)).
                  (C) Working group.--The term ``working group'' means 
                the interagency working group convened under paragraph 
                (2)(A).
          (2) Working group.--
                  (A) In general.--Not later than 30 days after the 
                date on which the President submits the notification 
                required under section 105(a) of the Bipartisan 
                Congressional Trade Priorities and Accountability Act 
                of 2015 (19 U.S.C. 4204(a)), the Chief Counsel shall 
                convene an interagency working group, which shall 
                consist of an employee from each of the following 
                agencies, as selected by the head of the agency or an 
                official delegated by the head of the agency:
                          (i) The Office of the United States Trade 
                        Representative.
                          (ii) The Department of Commerce.
                          (iii) The Department of Agriculture.
                          (iv) Any other agency that the Chief Counsel, 
                        in consultation with the United States Trade 
                        Representative, determines to be relevant with 
                        respect to the subject of the covered trade 
                        agreement.
                  (B) Views of small businesses.--Not later than 30 
                days after the date on which the Chief Counsel convenes 
                the working group under subparagraph (A), the Chief 
                Counsel shall identify a diverse group of small 
                businesses, representatives of small businesses, or a 
                combination thereof, to provide to the working group 
                the views of small businesses in the manufacturing, 
                services, and agriculture industries on the potential 
                economic effects of the covered trade agreement.
          (3) Report.--
                  (A) In general.--Not later than 180 days after the 
                date on which the Chief Counsel convenes the working 
                group under paragraph (2)(A), the Chief Counsel shall 
                submit to the Committee on Small Business and 
                Entrepreneurship and Committee on Finance of the Senate 
                and the Committee on Small Business and Committee on 
                Ways and Means of the House of Representatives a report 
                on the economic impacts of the covered trade agreement 
                on small businesses.
                  (B) Contents.--The report shall--
                          (i) identify the most important priorities, 
                        opportunities, and challenges to various 
                        industries from the covered trade agreement;
                          (ii) assess the impact for new small 
                        businesses to start exporting, or increase 
                        their exports, to markets in countries that are 
                        parties to the covered trade agreement;
                          (iii) analyze the competitive position of 
                        industries likely to be significantly affected 
                        by the covered trade agreement;
                          (iv) identify--
                                  (I) any State-owned enterprises in 
                                each country participating in 
                                negotiations for the covered trade 
                                agreement that could pose a threat to 
                                small businesses; and
                                  (II) any steps to take to create a 
                                level playing field for those small 
                                businesses;
                          (v) identify any rule of an agency that 
                        should be modified to become compliant with the 
                        covered trade agreement; and
                          (vi) include an overview of the methodology 
                        used to develop the report, including the 
                        number of small business participants by 
                        industry, how those small businesses were 
                        selected, and any other factors that the Chief 
                        Counsel considers appropriate.
                  (C) Delayed submission.--To ensure that negotiations 
                for the covered trade agreement are not disrupted, the 
                President may require that the Chief Counsel delay 
                submission of the report until after the negotiations 
                for the covered trade agreement are concluded, so long 
                as the delay allows the Chief Counsel to submit the 
                report to Congress not later than 45 days before the 
                Senate or the House of Representatives acts to approve 
                or disapprove the covered trade agreement.
                  (D) Avoidance of duplication.--The Chief Counsel 
                shall, to the extent practicable, coordinate the 
                submission of the report with the United States 
                International Trade Commission, the United States Trade 
                Representative, other agencies, and trade advisory 
                committees to avoid unnecessary duplication of 
                reporting requirements.
  (g) Rural Tourism Training Program.--In conjunction with the Office 
of Rural Affairs and appropriate personnel designated by each SBA 
district office, 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.
  (h) 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 1 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 103115 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.
  (i) 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.
  (j) Administrative Operations.--The Administrator shall--
          (1) provide the Office with appropriate and adequate office 
        space at central office and field office locations, together 
        with such equipment, operating budget, and communications 
        facilities and services as are necessary; and
          (2) provide necessary maintenance services for the central 
        office and field offices and the equipment and facilities 
        located in the offices.
  (k) Reports.--The Chief Counsel may from time to time prepare and 
publish such reports as the Chief Counsel considers appropriate.
Sec. 103108. 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 of Division.--There is established, in the Office 
of Minority Small Business and Capital Ownership Development, the 
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 SBA regional offices 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 233126 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. 103109. Office of International Trade
  (a) Establishment of Office.--There is established in SBA the Office 
of International Trade, which shall implement the programs under 
chapter 277 for the primary purposes of increasing--
          (1) the number of small business concerns that export; and
          (2) the volume of exports by small business concerns.
  (b) Associate Administrator.--The head of the Office shall be the 
Associate Administrator for International Trade, who shall be 
responsible to the Administrator.
Sec. 103110. 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 SBA the 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 SBA 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 SBA 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. 103111. 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 in SBA the 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 SBA's programs for the development of women's 
        business enterprises (as defined in section 403101 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 SBA officials in areas served by the 
women's business centers.
Sec. 103112. 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 SBA personnel 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 SBA.--
          (1) Actions to ensure compliance.--Federal agencies other 
        than SBA 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 SBA regional office.
          (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 1 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. 103113. 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 103104(b) of this title.
  (b) Establishment of Office.--There is established in SBA the 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 SBA policies and programs 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 SBA programs.
Sec. 103114. Task force on purchases from people who are blind or 
                    severely disabled
  (a) Establishment of Task Force.--There is established in SBA a task 
force on purchases from people who are blind or severely disabled.
  (b) Membership.--The task force shall consist of 1 representative of 
the small business community appointed by the Administrator and 1 
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 People Who Are Blind or Severely Disabled 
established under section 8502 of title 41.
  (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 251103 of 
        this title; and
          (2) recommending to the Administrator such administrative or 
        statutory changes as the task force considers appropriate.
Sec. 103115. 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. 103116. Bureau of PCLP Oversight
  (a) Establishment of Bureau.--There is established in SBA the Bureau 
of PCLP Oversight.
  (b) Purpose.--The Bureau of PCLP Oversight shall carry out such 
functions of the Administrator under section 331108(c) of this title as 
the Administrator may designate.
Sec. 103117. Office of Hearings and Appeals
  (a) Establishment.--
          (1) In general.--There is established in the SBA an Office of 
        Hearings and Appeals (referred to in this section as the 
        ``Office'').
          (2) Office included.--There shall be included within the 
        Office the office of SBA that handles requests under section 
        552 of title 5 and maintains records under section 552a of that 
        title.
          (3) Duties.--The Office shall decide matters relating to 
        program decisions of the Administrator--
                  (A) for which an Act of Congress requires a hearing 
                on the record; or
                  (B) that the Administrator by regulation designates 
                for hearing.
          (4) Jurisdiction.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Office shall hear appeals of agency actions 
                under or pursuant to this subtitle, subtitles II and 
                III of this title, and title 13 of the Code of Federal 
                Regulations, and shall hear such other matters as the 
                Administrator may determine appropriate.
                  (B) Exception.--The Office shall not adjudicate 
                disputes that require a hearing on the record, except 
                disputes pertaining to the small business programs 
                described in this subtitle and subtitle II of this 
                title.
          (5) Associate administrator.--The head of the Office shall be 
        the Chief Hearing Officer appointed under section 103104(f) of 
        this title, who shall be responsible to the Administrator.
  (b) Chief Hearing Officer.--
          (1) Qualifications.--The Chief Hearing Officer shall be--
                  (A) a career appointee in the Senior Executive 
                Service; and
                  (B) an attorney licensed by a State, the District of 
                Columbia, or a territory (including a possession) of 
                the United States.
          (2) Duties.--The Chief Hearing Officer shall be responsible 
        for the operation and management of the Office.
          (3) Alternative dispute resolution.--The Chief Hearing 
        Officer may assign a matter for mediation or other means of 
        alternative dispute resolution.
  (c) Hearing Officers.--
          (1) In general.--The Chief Hearing Officer shall appoint 
        hearing officers to carry out the duties described in 
        subsection (a)(3).
          (2) Qualifications.--A hearing officer shall be an attorney 
        licensed by a State, the District of Columbia, or a territory 
        (including a possession) of the United States.
          (3) Status.--A hearing officer appointed under paragraph 
        (1)--
                  (A) shall serve in the excepted service as an 
                employee of SBA under section 2103 of title 5 and under 
                the supervision of the Chief Hearing Officer;
                  (B) shall be classified at a position to which 
                section 5376 of title 5 applies; and
                  (C) shall be compensated at a rate not exceeding the 
                maximum rate payable under that section.
          (4) Authority; powers.--Notwithstanding section 556(b) of 
        title 5--
                  (A) a hearing officer may hear cases arising under 
                section 554 of that title;
                  (B) a hearing officer shall have the powers described 
                in section 556(c) of that title; and
                  (C) the relevant provisions of subchapter II of 
                chapter 5 of that title (except for section 556(b) of 
                that title) shall apply to a hearing officer.

                        Subchapter II--Functions

Sec. 103201. 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 SBA property.
  (d) Limitation on Advertising Requirement.--Section 6101 of title 41 
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 
        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. 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, the private disaster 
        assistance program, the intermediary lending pilot 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 SBA, 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 1 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 SBA.
  (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. 103202. 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 SBA notes 
                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 SBA 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 
                        SBA on financing functions performed under this 
                        subtitle, subtitle II, and divisions B and D 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) SBA moneys.--
                  (A) Deposit in treasury.--All moneys of SBA 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 SBA 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 SBA, 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 SBA.
          (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 3d 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 205108 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 1 or more loans guaranteed by the 
        Administrator under subtitle II or section 331103 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 SBA 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 SBA, the assessment and collection of the 
                        annual fee established under section 203114 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 SBA of its 
        ownership rights in the portions of loans constituting the 
        trust or pool against which a trust certificate is issued.
          (8) Division of loan guarantee into increments.--
                  (A) In general.--If the amount of the guaranteed 
                portion of a loan under the general business loan 
                program is more than $500,000, the Administrator shall, 
                on request of a pool assembler, divide the loan 
                guarantee into increments of $500,000 and 1 increment 
                of any remaining amount less than $500,000, to permit 
                the maximum amount of any loan in a pool to be not more 
                than $500,000.
                  (B) Limitation.--Only 1 increment of any loan 
                guarantee divided under subparagraph (A) may be 
                included in the same pool.
                  (C) Increments to different borrowers.--Increments of 
                loan guarantees to different borrowers that are divided 
                under subparagraph (A) may be included in the same 
                pool.
  (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.--SBA 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) Export-import bank lenders.--A lender that is 
                participating in the delegated authority lender program 
                of the Export-Import Bank of the United States (or any 
                successor to the program) shall be eligible to 
                participate in the preferred lenders program.
                  (C) 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 1 percent of the amount of 
                requested financings under chapter 303 for which the 
                applicant requests a commitment from SBA 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 203109 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, disaster loan program, private disaster 
loan program, intermediary lending pilot program, or microloan 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 SBA district 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, SBA district, and SBA 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. 103203. 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 Administrator 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. 103204. 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. 103205. 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 Administrator 
with other activities and policies of the Government), which shall 
govern the granting and denial of applications for financial assistance 
by the Administrator.
Sec. 103206. Retention of records
  The Administrator and the Inspector General of SBA shall--
          (1) retain all correspondence, records of inquiries, 
        memoranda, reports, books, and other records, including 
        memoranda as to all investigations conducted by or for SBA, for 
        a period of at least 1 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. 103207. 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. 103208. 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 
        243103 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. 103209. 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.
105101.  Criminal penalties.
105102.  Misrepresentation of status as small business concern.
105103.  False certification of past compliance.
105104.  Subcontracting requirements and limitations.
Sec. 105101. Criminal penalties
  Criminal penalties for offenses relating to this title are provided 
under chapter 124 of title 18.
Sec. 105102. 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 
        243103 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 subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (2) shall be subject to suspension and debarment as specified 
        in subpart 9.4 of title 48, Code of Federal Regulations (or any 
        successor regulation); and
          (3) 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.
  (c) Suspension or Debarment.--
          (1) Guidance.--The Administrator shall issue guidance 
        regarding the basis on which a person that violates subsection 
        (a) may be suspended or debarred under subsection (b)(3) or 
        under section 105105(3) or 105106(3) of this title.
          (2) Website.--The Administrator shall maintain on the SBA 
        website--
                  (A) the current standard operating procedures of SBA 
                for suspension and debarment; and
                  (B) the name of and contact information for the 
                individual designated by the Administrator as the 
                senior officer responsible for suspension and debarment 
                proceedings.
  (d) Limitation on Liability.--
          (1) In general.--This section does not apply to any conduct 
        in violation of subsection (a) if the violator acts in good 
        faith reliance on a written advisory opinion issued by a Small 
        Business Development Center or an entity participating in a 
        procurement technical assistance cooperative agreement program 
        under chapter 142 of title 10.
          (2) No obligation to issue advisory opinion.--Nothing in this 
        subtitle or subtitle II obligates a Small Business Development 
        Center or an entity participating in a procurement technical 
        assistance cooperative agreement program to issue an advisory 
        opinion, nor shall the issuance of an advisory opinion by such 
        an entity render the entity liable to the business concern to 
        which the advisory letter is issued if the Administrator later 
        determines that the business concern is not a small business 
        concern.
          (3) Rejection of advisory opinion by sba general counsel.--
                  (A) Remission to SBA General Counsel.--On issuance of 
                an advisory opinion under this subsection, the entity 
                that issues the advisory opinion shall remit a copy of 
                the opinion to the General Counsel of SBA, who may 
                reject the advisory opinion.
                  (B) Notification of rejection.--If the SBA General 
                Counsel rejects the advisory opinion, the Administrator 
                shall notify the entity that issued the advisory 
                opinion and the recipient of the advisory opinion.
                  (C) No reliance.--After the recipient of an advisory 
                opinion receives a notification of rejection of the 
                advisory opinion by the SBA General Counsel, the 
                recipient shall not be entitled to rely on the advisory 
                opinion.
          (4) Rules.--The Administrator shall issue rules defining what 
        constitutes an adequate advisory opinion for purposes of this 
        subsection.
Sec. 105103. False certification of past compliance
  A person that falsely certifies past compliance with the requirements 
of section 233128 of this title--
          (1) shall be subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (2) 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
          (3) 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. 105104. Subcontracting requirements and limitations
  (a) Subcontracting Requirement.--A person that fails to supply the 
product of a domestic manufacturer or processor that is a small 
business concern as required under section 299107(b)(4) of this title--
          (1) shall be subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (2) 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
          (3) shall be ineligible for participation in any program or 
        activity conducted under this subtitle or subtitle II or III 
        for a period not more than 3 years.
  (b) Subcontracting Limitation.--A person that expends on 
subcontractors an amount in excess of the amount permitted under 
paragraph (1), (2), or (3) of subsection (b) of section 299107 of this 
title or in excess of an amount established by the Administrator under 
subsection (e) of that section shall be subject to the penalties 
prescribed by subsection (a) of this section.

                     Chapter 107--Periodic Reports

Sec.
107101.  Comprehensive annual report on the state of small business and 
          on SBA operations.
107102.  Annual report on expenditures.
107103.  Annual report on secondary market operations.
107104.  Annual report on impact of authority to impose secondary market 
          fees.
107105.  Annual report on needs of small business concerns owned and 
          controlled by veterans and small business concerns owned and 
          controlled by service-disabled veterans.
107106.  Annual report on contract bundling.
107107.  Annual report on business development program.
107108.  Annual report on contract participation goals.
107109.  Annual report on cost savings from procurement center 
          representatives.
107110.  Reports on SBIR programs, STTR programs, and the FAST program.
107111.  Annual report on women's business center program.
107112.  Annual report of the Associate Administrator for International 
          Trade.
107113.  Biennial report on filling gaps in high-and-low-export volume 
          areas.
107114.  Annual report on historical trends of the small business 
          sector.
107115.  Biennial report on accredited lenders program.
107116.  Annual report on premier certified lenders program.
107117.  Annual report on foreclosure and liquidation of loans under the 
          certified development company program.
107118.  Reports on disaster assistance.
107119.  Annual report on subcontracting goals.
107120.  Annual report on suspensions and debarments.
107121.  Annual report on training and travel by Directors of Small and 
          Disadvantaged Business Utilization.
107122.  Triennial report regarding procurement center representatives 
          and commercial market representatives.
107123.  Quinquennial report on representation of women.
107124.  Annual report on mentor-protege programs.
107125.  Annual report on State trade expansion program.
Sec. 107101. Comprehensive annual report on the state of small business 
                    and on SBA 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 SBA's operations 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 SBA 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 
                301101 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, SBA, 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 301101 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 301101 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 301101 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. 107102. 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 SBA that the Administrator has expended in the conduct 
of each of the principal activities of SBA 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 205103 to 205109 
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. 107103. 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. 107104. 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 1 of the designated 
groups listed in subclause (1)(C) of the contract clause described in 
section 243101(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 103202(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 103202(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. 107105. 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 SBA 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 275113 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. 107106. Annual report on contract bundling
  (a) In General.--In March of each year, using information maintained 
under section 251105(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. 107107. 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 SBA 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 205111 and 233127 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. 107108. Annual report on contract participation goals
  (a) Reporting by Federal Agencies.--At the end of each fiscal year, 
the head of a Federal agency shall submit to the Administrator a report 
that--
          (1) describes the extent of participation in procurement 
        contracts of the Federal agency during the fiscal year by--
                  (A) small business concerns (excluding categories of 
                small business concern listed in subparagraphs (B) 
                through (E));
                  (B) small business concerns owned and controlled by 
                veterans (including small business concerns owned and 
                controlled by service-disabled veterans);
                  (C) qualified HUBZone small business concerns;
                  (D) small business concerns owned and controlled by 
                socially and economically disadvantaged individuals; 
                and
                  (E) small business concerns owned and controlled by 
                women;
          (2) states whether the Federal agency achieved the goals 
        established for the Federal agency under subsection (b) of 
        section 251106 of this title for the fiscal year;
          (3) describes any justifications for failure to meet the 
        goals; and
          (4) includes a remediation plan with proposed new practices 
        to better meet the goals, including an analysis of the factors 
        that led to any failure to achieve the goals.
  (b) Report by the Administrator.--Not later than 60 days after all 
Federal agencies have submitted their reports under subsection (a) with 
respect to a fiscal year, the Administrator shall submit to the 
President and Congress and make available on a public website a report 
that--
          (1) includes a copy of each report submitted to the 
        Administrator under subsection (a);
          (2) makes a determination whether each goal established by 
        the President under section 251106(a) of this title for the 
        fiscal year was achieved;
          (3) makes a determination whether each goal established by 
        the head of a Federal agency under section 251106(b) of this 
        title for the fiscal year was achieved;
          (4)(A) states the reasons for any failure to achieve a goal 
        established under subsection (a) or (b) of section 251106 of 
        this title for the fiscal year; and
          (B) describes actions planned by the Federal agency in 
        question to address the failure under subsection (b) of section 
        251106 of this title, including the Administrator's comments 
        and recommendations on the proposed remediation plan;
          (5) for the Federal Government and each Federal agency, 
        includes an analysis of the number and dollar amount of prime 
        contracts awarded during the fiscal year to--
                  (A) small business concerns (excluding categories of 
                small business concern listed in subparagraphs (B) 
                through (E))--
                          (i) in the aggregate;
                          (ii) through sole source contracts;
                          (iii) through competitions restricted to 
                        small business concerns; and
                          (iv) through unrestricted competition;
                  (B) small business concerns owned and controlled by 
                service-disabled veterans--
                          (i) in the aggregate;
                          (ii) through sole source contracts;
                          (iii) through competitions restricted to 
                        small business concerns;
                          (iv) through competitions restricted to small 
                        business concerns owned and controlled by 
                        service-disabled veterans; and
                          (v) through unrestricted competition;
                  (C) qualified HUBZone small business concerns--
                          (i) in the aggregate;
                          (ii) through sole source contracts;
                          (iii) through competitions restricted to 
                        small business concerns;
                          (iv) through competitions restricted to 
                        qualified HUBZone small business concerns;
                          (v) through unrestricted competition in which 
                        a price evaluation preference was used; and
                          (vi) through unrestricted competition in 
                        which a price evaluation preference was not 
                        used;
                  (D)(i) small business concerns owned and controlled 
                by socially and economically disadvantaged 
                individuals--
                          (I) in the aggregate;
                          (II) through sole source contracts;
                          (III) through competitions restricted to 
                        small business concerns;
                          (IV) through competitions restricted to small 
                        business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals;
                          (V) through unrestricted competition; and
                          (VI) by reason of that concern's 
                        certification as a small business owned and 
                        controlled by socially and economically 
                        disadvantaged individuals;
                  (ii) small business concerns owned by an Indian tribe 
                (as defined in section 231101 of this title) other than 
                an Alaska Native Corporation--
                          (I) in the aggregate;
                          (II) through sole source contracts;
                          (III) through competitions restricted to 
                        small business concerns;
                          (IV) through competitions restricted to small 
                        business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals; and
                          (V) through unrestricted competition;
                  (iii) small business concerns owned by a Native 
                Hawaiian Organization--
                          (I) in the aggregate;
                          (II) through sole source contracts;
                          (III) through competitions restricted to 
                        small business concerns;
                          (IV) through competitions restricted to small 
                        business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals; and
                          (V) through unrestricted competition;
                  (iv) small business concerns owned by an Alaska 
                Native Corporation--
                          (I) in the aggregate;
                          (II) through sole source contracts;
                          (III) through competitions restricted to 
                        small business concerns;
                          (IV) through competitions restricted to small 
                        business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals; and
                          (V) through unrestricted competition; and
                  (E) small business concerns owned and controlled by 
                women--
                          (i) in the aggregate;
                          (ii) through competitions restricted to small 
                        business concerns;
                          (iii) through competitions restricted using 
                        the authority under section 257102 of this 
                        title;
                          (iv) through competitions restricted using 
                        the authority under subsection (a) of section 
                        257102 of this title and in which the waiver 
                        authority under subsection (b) of that section 
                        was used;
                          (v) through sole source contracts awarded 
                        using the authority under section 257106 of 
                        this title;
                          (vi) through sole source contracts awarded 
                        using the authority under section 257107 of 
                        this title;
                          (vii) by industry for contracts described in 
                        clause (iii), (iv), (v), or (vi); and
                          (viii) through unrestricted competition; and
          (6) for the Federal Government, to the extent that the 
        information is publicly available through data systems 
        developed under the Federal Funding Accountability and 
        Transparency Act of 2006 (Public Law 109-282, 31 U.S.C. 6101 
        note) or is otherwise available under subsection (c), the 
        number, dollar amount, and distribution with respect to the 
        North American Industry Classification System of subcontracts 
        awarded during the fiscal year to--
                  (A) small business concerns (excluding categories of 
                small business concern listed in subparagraphs (B) 
                through (E));
                  (B) small business concerns owned and controlled by 
                service-disabled veterans (including small business 
                concerns owned and controlled by service-disabled 
                veterans);
                  (C) qualified HUBZone small business concerns;
                  (D) small business concerns owned and controlled by 
                socially and economically disadvantaged individuals; 
                and
                  (E) small business concerns owned and controlled by 
                women.
  (c) Procurement Data.--
          (1) Federal procurement data system.--
                  (A) In general.--To assist in the implementation of 
                this section, sections 107106, 107121, and 107122 of 
                this title, and chapter 251 of this title, the 
                Administrator shall have access to information 
                collected through the Federal Procurement Data System, 
                Federal Subcontracting Reporting System, or any new or 
                successor system.
                  (B) GSA report.--On the date that the Administrator 
                makes available the report required under subsection 
                (b), the Administrator of the General Services 
                Administration shall submit to the President and 
                Congress, and shall make available on a public website, 
                a report in the same form and manner, and including the 
                same information, as the report required under 
                subsection (b). The report shall include all 
                procurements made for the period covered by the report 
                and may not exclude any contract awarded.
          (2) Agency procurement data sources.--To assist in the 
        implementation of this section, sections 107106, 107121, and 
        107122 of this title, and chapter 251 of this title, the head 
        of each contracting agency shall provide, upon request of the 
        Administrator, procurement information collected through agency 
        data collection sources in existence at the time of the 
        request. Contracting agencies shall not be required to 
        establish new data collection systems to provide such data.
Sec. 107109. Annual report on cost savings from 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 procurement center 
        representatives assigned to major procurement centers under 
        section 251110 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 procurement 
        center representatives as the Administrator considers 
        appropriate.
Sec. 107110. Reports on SBIR programs, STTR programs, and the FAST 
                    program
  (a) SBIR Programs and STTR Programs.--
          (1) Administrator.--
                  (A) 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 SBIR 
                programs and STTR programs of the Federal agencies and 
                the Administrator's information and monitoring efforts 
                relating to the SBIR programs and STTR programs.
                  (B) Contents.--A report under subparagraph (A) shall 
                include--
                          (i) the data on output and outcomes collected 
                        under sections 263102(a)(8) and 263202(9) of 
                        this title;
                          (ii) the number of proposals received from, 
                        and the number and total amount of awards to, 
                        HUBZone small business concerns and firms with 
                        venture capital, hedge fund, or private equity 
                        firm investment (including those that are 
                        majority-owned by multiple venture capital 
                        operating companies, hedge funds, or private 
                        equity firms) under each of the SBIR programs 
                        and STTR programs;
                          (iii) a description of the extent to which 
                        each Federal agency is increasing outreach and 
                        awards to firms owned and controlled by women 
                        or by socially or economically disadvantaged 
                        individuals under each of the SBIR programs and 
                        STTR programs;
                          (iv) general information about the 
                        implementation of, and compliance with the 
                        allocation of funds required under, section 
                        263109 of this title for firms owned that are 
                        majority-owned by venture capital operating 
                        companies, hedge funds, or private equity firms 
                        and participating in the SBIR program;
                          (v) a detailed description of appeals of 
                        phase III awards and notices of noncompliance 
                        with the SBIR policy directive and the STTR 
                        policy directive filed by the Administrator 
                        with Federal agencies;
                          (vi) an accounting of funds, initiatives, and 
                        outcomes under the commercialization readiness 
                        program under section 263314(a) of this title;
                          (vii) a description of the extent to which 
                        Federal agencies are providing in a timely 
                        manner information needed to maintain the 
                        database under section 263301 of this title;
                          (viii) for each phase III award--
                                  (I) the name of the agency or 
                                component of the agency or the non-
                                Federal source of capital that made the 
                                phase III award;
                                  (II) the name of the small business 
                                concern or individual that received the 
                                phase III award; and
                                  (III) the dollar amount of the phase 
                                III award;
                          (ix) the manufacturing activity information 
                        contained in reports under paragraph (3);
                          (x) any data submitted under section 
                        263109(d) of this title and a discussion of the 
                        compliance of each Federal agency that makes an 
                        award under this section 263109 of this title 
                        during the fiscal year with the maximum 
                        percentages under 263109(a) of this title;
                          (xi) the information on award amounts 
                        exceeding guidelines described in section 
                        263308(b) of this title;
                          (xii) the information on technology 
                        transition submitted under section 
                        263314(a)(6)(C) of this title; and
                          (xiii) the information on timing of final 
                        decisions on proposals and releases of funding 
                        described in section 263316 of this title.
          (2) SBIR agency heads and sttr agency heads.--
                  (A) Metrics.--The head of an SBIR agency or STTR 
                agency shall develop metrics to evaluate the 
                effectiveness and the benefit to the people of the 
                United States of the SBIR program and the STTR program 
                of the Federal agency that--
                          (i) are science-based and statistically 
                        driven;
                          (ii) reflect the mission of the Federal 
                        agency; and
                          (iii) include factors relating to the 
                        economic impact of the SBIR program or STTR 
                        program.
                  (B) Evaluation.--The head of an SBIR agency or STTR 
                agency shall conduct an annual evaluation using the 
                metrics developed under subparagraph (A) of--
                          (i) the SBIR program and STTR program of the 
                        SBIR agency or STTR agency; and
                          (ii) the benefits to the people of the United 
                        States of the SBIR program and the STTR program 
                        of the Federal agency.
                  (C) Report.--
                          (i) In general.--The head of an SBIR agency 
                        or STTR agency shall submit to the Committee on 
                        Small Business and Entrepreneurship of the 
                        Senate and the Committee on Small Business and 
                        Committee on Science, Space, and Technology of 
                        the House of Representatives and to the 
                        Administrator an annual report describing in 
                        detail the results of an evaluation conducted 
                        under subparagraph (B).
                          (ii) Public availability of report.--The head 
                        of an SBIR agency or STTR agency shall make a 
                        report submitted under clause (i) available to 
                        the public online.
          (3) Heads of agencies that make more than $50,000,000 in 
        awards.--Not later than October 1 of each year, the head of a 
        Federal agency that makes more than $50,000,000 in awards under 
        the SBIR program and STTR program of the agency combined shall 
        submit to the Administrator, for inclusion in the annual report 
        under paragraph (1), information that includes--
                  (A) a description of efforts undertaken by the agency 
                head to enhance United States manufacturing activities;
                  (B) a comprehensive description of the actions 
                undertaken each year by the agency head in carrying out 
                the SBIR program or STTR program of the agency in 
                support of Executive Order 13329 (69 Fed. Reg. 9181);
                  (C) an assessment of the effectiveness of the actions 
                described in subparagraph (B) at enhancing the research 
                and development of United States manufacturing 
                technologies and processes;
                  (D) a description of efforts by vendors selected to 
                provide discretionary technical assistance under 
                section 263313 of this title to help small business 
                concerns that participate in the SBIR program or STTR 
                program manufacture in the United States; and
                  (E) recommendations that the program managers of the 
                SBIR program or STTR program consider appropriate for 
                additional actions to increase the effectiveness of 
                enhancing manufacturing activities.
          (4) Inspectors general.--Not later than October 1 of each 
        year, the Inspector General of an SBIR participating agency or 
        STTR participating agency shall submit to the Committee on 
        Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business and the Committee on Science, 
        Space, and Technology of the House of Representatives a report 
        that--
                  (A) states the number of cases referred to the 
                Inspector General in the preceding year that related to 
                fraud, waste, or abuse with respect to the SBIR program 
                or STTR program;
                  (B) describes the actions taken in each case referred 
                to in subparagraph (A) if fraud, waste, or abuse was 
                determined to have occurred;
                  (C) if no action was taken in a case referred to 
                subparagraph (A) and fraud, waste, or abuse was 
                determined to have occurred, states the justification 
                for not taking taken; and
                  (D) makes an accounting of the funds used to address 
                fraud, waste, and abuse, including a description of 
                personnel and resources funded and funds that were 
                recovered or saved.
          (5) Comptroller General.--
                  (A) Impact of requirements relating to venture 
                capital operating company, hedge fund, and private 
                equity firm involvement.--Not later than December 31, 
                2014, and every 3 years thereafter, the Comptroller 
                General shall--
                          (i) conduct a study of the impact of 
                        requirements relating to venture capital 
                        operating company, hedge fund, and private 
                        equity firm involvement under this division; 
                        and
                          (ii) submit to Congress a report regarding 
                        the study conducted under clause (i).
                  (B) Fraud, waste, and abuse.--To establish a baseline 
                of changes made to the program to fight fraud, waste, 
                and abuse, and, every 4 years, to evaluate the 
                effectiveness of the agency strategies, the Comptroller 
                General shall--
                          (i) conduct a study that evaluates--
                                  (I) the implementation by each SBIR 
                                participating agency and STTR 
                                participating agency of the amendments 
                                to the SBIR policy directives and the 
                                STTR policy directive made pursuant to 
                                section 263318 of this title;
                                  (II) the effectiveness of the 
                                management information system of each 
                                SBIR participating agency and STTR 
                                participating agency in identifying 
                                duplicative SBIR projects and STTR 
                                projects;
                                  (III) the effectiveness of the risk 
                                management strategies of each SBIR 
                                participating agency and STTR 
                                participating agency in identifying 
                                areas of the SBIR program or the STTR 
                                program that are at high risk for 
                                fraud;
                                  (IV) technological tools that may be 
                                used to detect patterns of behavior 
                                that may indicate fraud by applicants 
                                to the SBIR program or the STTR 
                                program;
                                  (V) the success of each SBIR 
                                participating agency and STTR 
                                participating agency in reducing fraud, 
                                waste, and abuse in the SBIR program or 
                                the STTR program of the Federal agency;
                                  (VI) the extent to which the 
                                Inspector General of each SBIR 
                                participating agency and STTR 
                                participating agency effectively 
                                conducts investigations, audits, 
                                inspections, and outreach relating to 
                                the SBIR program and STTR program of 
                                the SBIR participating agency or STTR 
                                participating agency; and
                                  (VII) the effectiveness of the 
                                Government and public databases 
                                described in section 263301 of this 
                                title in reducing vulnerabilities of 
                                the SBIR program and STTR program to 
                                fraud, waste, and abuse, particularly 
                                with respect to Federal agencies 
                                funding duplicative proposals and 
                                business concerns falsifying 
                                information in proposals; and
                          (ii) submit to the Committee on Small 
                        Business and Entrepreneurship of the Senate, 
                        the Committee on Small Business and Committee 
                        on Science, Space, and Technology of the House 
                        of Representatives, and the head of each SBIR 
                        participating agency and STTR participating 
                        agency a report on the results of the study 
                        conducted under clause (i).
          (6) National research council.--
                  (A) Study and recommendations.--The head of each 
                agency with a budget of more than $50,000,000 for its 
                SBIR program for fiscal year 1999, in consultation with 
                the Administrator, shall cooperatively enter into an 
                agreement with the National Academy of Sciences for the 
                National Research Council to--
                          (i) conduct a comprehensive study of how the 
                        SBIR program has stimulated technological 
                        innovation and used small businesses to meet 
                        Federal research and development needs, 
                        including--
                                  (I) a review of the value to the 
                                Federal research agencies of the 
                                research projects being conducted under 
                                the SBIR program, and of the quality of 
                                research being conducted by small 
                                businesses participating under the SBIR 
                                program, including a comparison of the 
                                value of projects conducted under the 
                                SBIR program with those funded by other 
                                Federal research and development 
                                expenditures;
                                  (II) to the extent practicable, an 
                                evaluation of the economic benefits 
                                achieved by the SBIR program, including 
                                the economic rate of return, and a 
                                comparison of the economic benefits, 
                                including the economic rate of return, 
                                achieved by the SBIR program with the 
                                economic benefits, including the 
                                economic rate of return, of other 
                                Federal research and development 
                                expenditures;
                                  (III) an evaluation of the 
                                noneconomic benefits achieved by the 
                                SBIR program over the life of the 
                                program;
                                  (IV) a comparison of the allocation 
                                for fiscal year 2000 of Federal 
                                research and development funds to small 
                                businesses with that allocation for 
                                fiscal year 1983, and an analysis of 
                                the factors that have contributed to 
                                the allocation; and
                                  (V) an analysis of whether Federal 
                                agencies, in fulfilling their 
                                procurement needs, are making 
                                sufficient effort to use small 
                                businesses that have completed a phase 
                                II award under the SBIR program; and
                          (ii) make recommendations with respect to--
                                  (I) measures of outcomes for 
                                strategic plans submitted under section 
                                306 of title 5 and performance plans 
                                submitted under section 1115 of title 
                                31 of each SBIR participating agency;
                                  (II) whether companies that can 
                                demonstrate project feasibility, but 
                                that have not received a phase I award, 
                                should be eligible for phase II awards, 
                                and the potential impact of such awards 
                                on the competitive selection process of 
                                the program;
                                  (III) whether the Federal Government 
                                should be permitted to recoup some or 
                                all of its expenses if a controlling 
                                interest in a company receiving an SBIR 
                                award is sold to a foreign company or 
                                to a company that is not a small 
                                business concern;
                                  (IV) how to increase the use by the 
                                Federal Government in its programs and 
                                procurements of technology-oriented 
                                small business concerns; and
                                  (V) improvements to the SBIR program, 
                                if any are considered appropriate.
                  (B) Participation by small business concerns.--
                           (i) In general.--In a manner consistent with 
                        law and with National Research Council study 
                        guidelines and procedures, knowledgeable 
                        individuals from small business concerns with 
                        experience in the SBIR program shall be 
                        included--
                                  (I) in any panel established by the 
                                National Research Council for the 
                                purpose of performing the study 
                                conducted under this paragraph; and
                                  (II) among those who are asked by the 
                                National Research Council to peer 
                                review the study.
                          (ii) Consultation.--To ensure that the 
                        concerns of small business concerns are 
                        appropriately considered under this 
                        subparagraph, the National Research Council 
                        shall consult with and consider the views of 
                        the Office of Technology and the Office of 
                        Advocacy of the SBA and other interested 
                        parties, including entities, organizations, and 
                        individuals actively engaged in enhancing or 
                        developing the technological capabilities of 
                        small business concerns.
                  (C) Report.--The National Research Council shall 
                submit to the heads of agencies entering into an 
                agreement under this paragraph and to the Committee on 
                Science, Space, and Technology and Committee on Small 
                Business of the House of Representatives and the 
                Committee on Small Business and Entrepreneurship of the 
                Senate--
                          (i) not later than December 21, 2003, a 
                        report including the results of the study 
                        conducted under subparagraph (A)(i) and 
                        recommendations made under subparagraph 
                        (A)(ii); and
                          (ii) not later than December 21, 2006, an 
                        update of the report.
                  (D) Extensions and enhancements of authority.--
                          (i) In general.--In consultation with the 
                        Administrator, the head of each agency with a 
                        budget of more than $50,000,000 for its SBIR 
                        program for fiscal year 1999 shall 
                        cooperatively enter into an agreement with the 
                        National Academy of Sciences for the National 
                        Research Council to, not later than December 
                        31, 2014, and every 4 years thereafter--
                                  (I) continue the most recent study 
                                under this paragraph relating to the 
                                issues described in subclauses (I), 
                                (II), (III), and (V) of subparagraph 
                                (A)(i);
                                  (II) conduct a comprehensive study of 
                                how the STTR program has stimulated 
                                technological innovation and technology 
                                transfer, including--
                                          (aa) a review of the 
                                        collaborations created between 
                                        small business concerns and 
                                        research institutions, 
                                        including an evaluation of the 
                                        effectiveness of the STTR 
                                        program in stimulating new 
                                        collaborations and any 
                                        obstacles that may prevent or 
                                        inhibit the creation of such 
                                        collaborations;
                                          (bb) an evaluation of the 
                                        effectiveness of the STTR 
                                        program at transferring 
                                        technology and capabilities 
                                        developed through Federal 
                                        funding;
                                          (cc) to the extent 
                                        practicable, an evaluation of 
                                        the economic benefits achieved 
                                        by the STTR program, including 
                                        the economic rate of return;
                                          (dd) an analysis of how 
                                        Federal agencies are using 
                                        small business concerns that 
                                        have completed phase II under 
                                        the STTR program to fulfill 
                                        their procurement needs;
                                          (ee) an analysis of whether 
                                        additional funds could be 
                                        employed effectively by the 
                                        STTR program; and
                                          (ff) an assessment of the 
                                        systems and minimum performance 
                                        standards relating to 
                                        commercialization success 
                                        established under section 
                                        263321 of this title;
                                  (III) make recommendations with 
                                respect to the issues described in 
                                subclauses (I), (IV), and (V) of 
                                subparagraph (A)(ii) and subclause (II) 
                                of this clause; and
                                  (IV) estimate, to the extent 
                                practicable, the number of jobs created 
                                by the SBIR program or STTR program of 
                                the agency.
                          (ii) Consultation.--An agreement under clause 
                        (i) shall require the National Research Council 
                        to ensure that there is participation by and 
                        consultation with small business concerns, the 
                        Administrator, and other interested parties as 
                        described in subparagraph (B).
                          (iii) Reporting.--An agreement under clause 
                        (i) shall require that not later than December 
                        31, 2015, and every 4 years thereafter, the 
                        National Research Council shall submit to the 
                        head of the agency entering into the agreement, 
                        the Committee on Small Business and 
                        Entrepreneurship of the Senate, and the 
                        Committee on Small Business and the Committee 
                        on Science, Space, and Technology of the House 
                        of Representatives a report regarding the study 
                        conducted under clause (i) and containing the 
                        recommendations described in clause (i).
  (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 during the 
        preceding year;
          (2) a list of recipients under section 263305 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 263305(f) of this title, including--
                  (A) the status of the inclusion of mentoring 
                information in the database required by section 263301 
                of this title; and
                  (B) the status of the implementation and description 
                of the usage of the mentoring networks.
Sec. 107111. 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 273107(a)(2) of this title.
Sec. 107112. Annual report of the Associate Administrator for 
                    International Trade
  The Associate Administrator for 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 contains--
          (1) a description of the progress of the Office in 
        implementing the requirements of chapter 277;
          (2) a detailed account of the results of export growth 
        activities of the Administrator, including the activities of 
        each SBA district office and SBA regional office, based on the 
        performance measures described in section 277108 of this title;
          (3) an estimate of the total number of jobs created or 
        retained as a result of export assistance provided by the 
        Administrator and resource partners of the Administrator;
          (4) for any travel by the staff of the Office of 
        International Trade, the destination of the travel and the 
        benefits to SBA and to small business concerns resulting from 
        the travel; and
          (5) a description of the participation by the Office of 
        International Trade in trade negotiations.
Sec. 107113. Biennial report on filling gaps in high-and-low-export 
                    volume areas
  Every 2 years, the Administrator shall--
          (1) conduct a study of--
                  (A) the volume of exports for each State;
                  (B) the availability of export finance specialists in 
                each State;
                  (C) the number of exporters in each State that are 
                small business concerns;
                  (D) the percentage of exporters in each State that 
                are small business concerns;
                  (E) the change, if any, in the number of exporters 
                that are small business concerns in each State--
                          (i) for the 1st study conducted under this 
                        paragraph, during the 10-year period ending on 
                        September 27, 2010; and
                          (ii) for each subsequent study, during the 
                        10-year period ending on the date on which the 
                        study is commenced;
                  (F) the total value of the exports in each State by 
                small business concerns;
                  (G) the percentage of the total volume of exports in 
                each State that is attributable to small business 
                concerns; and
                  (H) the change, if any, in the percentage of the 
                total volume of exports in each State that is 
                attributable to small business concerns--
                          (i) for the 1st study conducted under this 
                        paragraph, during the 10-year period ending on 
                        September 27, 2010; and
                          (ii) for each subsequent study, during the 
                        10-year period ending on the date on which the 
                        study is commenced; and
          (2) 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--
                  (A) the results of the study under paragraph (1);
                  (B) to the extent practicable, a recommendation 
                regarding how to eliminate gaps between the supply of 
                and demand for export finance specialists in the 15 
                States that have the greatest volume of exports, based 
                on the most recent data available from the Department 
                of Commerce;
                  (C) to the extent practicable, a recommendation 
                regarding how to eliminate gaps between the supply of 
                and demand for export finance specialists in the 15 
                States that have the lowest volume of exports, based on 
                the most recent data available from the Department of 
                Commerce; and
                  (D) such additional information as the Administrator 
                determines is appropriate.
Sec. 107114. 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 
103203 of this title.
Sec. 107115. 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 331107 of this title that includes data on the number of 
qualified development companies (as defined in section 331101 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. 107116. Annual report on premier certified lenders 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 implementation of section 331108 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 
        331107 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. 107117. 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 331101 of this title) and 
SBA, 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 331109 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 
        331109 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 331109 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 331109 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 section 331109(c)(2)(A)(ii) of this 
                title or a workout plan in accordance with section 
                331109(c)(2)(C)(ii) of this title; or
                  (ii) approve or deny a request for purchase of 
                indebtedness under section 331109(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. 107118. 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 extraordinary disaster) 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 5th 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 SBA 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 SBA 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) 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 221108 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 SBA for the 
        fiscal year.
          (2) Contents.--A report under paragraph (1) shall--
                  (A) specify the number of SBA personnel involved in 
                disaster assistance operations;
                  (B) describe any material changes to disaster 
                assistance operations, such as changes to technologies 
                used or to personnel responsibilities;
                  (C) 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
                  (D) describe the plans of the Administrator for 
                preparing to respond to disasters during the next 
                fiscal year.
Sec. 107119. Annual report on subcontracting goals
  Not later than March 31 of each year, the Administrator 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, based on data available through systems in existence on January 
2, 2013, that discloses, for each Federal agency (and to the extent 
practicable, by type of goal or plan)--
          (1)(A) the percentage of offerors and bidders that were 
        required to submit reports under section 243103(d)(5) of this 
        title during the preceding fiscal year that filed the required 
        reports; and
          (B) the percentage of those offerors and bidders that failed 
        to file the required reports;
          (2) the percentage of offerors and bidders that filed the 
        required reports that met, exceeded, or failed to meet goals 
        set forth in their subcontracting plans during the preceding 
        fiscal year; and
          (3) the aggregate value by which offerors and bidders that 
        filed the required reports exceeded, or failed to meet, their 
        subcontracting goals during the preceding fiscal year.
Sec. 107120. Annual report on suspensions and debarments
  (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 suspension and debarment actions taken by the Administrator during 
the year preceding the year of submission of the report.
  (b) Contents.--A report under subsection (a) shall include the 
following information for the year covered by the report:
          (1) Number proposed.--The number of contractors proposed for 
        suspension or debarment.
          (2) Source of proposal.--The office within a Federal agency 
        that originated each proposal for suspension or debarment.
          (3) Reasons for proposals.--The reason for each proposal for 
        suspension or debarment.
          (4) Results.--The result of each proposal for suspension or 
        debarment, and the reason for the result.
          (5) Referrals.--The number of suspensions or debarments 
        referred to the Inspector General of SBA or of another Federal 
        agency or to the Attorney General.
  (c) Redaction of Identifying Information.--For purposes of subsection 
(b)(5), the Administrator may redact identifying information on names 
of companies or other information to protect the integrity of any 
ongoing criminal or civil investigation.
Sec. 107121. Annual report on training and travel by Directors of Small 
                    and Disadvantaged Business Utilization
  At the end of each fiscal year, the Director of Small and 
Disadvantaged Business Utilization of a Federal agency 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 
that--
          (1) describes the training provided by the Director under 
        section 251109(e)(5) of this title during the fiscal year;
          (2) discloses the percentage of the budget of the Director 
        used for that training;
          (3) discloses the percentage of the budget of the Director 
        used for travel during the fiscal year; and
          (4) discloses any failure of the agency to comply with 
        chapter 231, 233, 241 (except section 241119), 243, or 245 of 
        this title or division H of subtitle II of this title.
Sec. 107122. Triennial report regarding procurement center 
                    representatives and commercial market 
                    representatives
  (a) In General.--Every 3 years, 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 procurement center representatives and commercial market 
representatives.
  (b) Contents.--A report under subsection (a) shall--
          (1) identify each area for which the Administrator has 
        assigned a procurement center representative or a commercial 
        market representative;
          (2) explain why the Administrator selected the areas 
        identified under paragraph (1); and
          (3) describe the activities performed by procurement center 
        representatives and commercial market representatives.
Sec. 107123. Quinquennial report on representation of women
  (a) Study.--The Administrator shall periodically conduct a study to 
identify industries (as defined under the North American Industry 
Classification System) that are underrepresented by small business 
concerns owned and controlled by women.
  (b) Report.--Not later than January 2, 2016, and every 5 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 results of 
each study under subsection (a) conducted during the 5-year period 
ending on the date of the report.
Sec. 107124. Annual report on mentor-protege programs
  (a) In General.--Not later than January 2, 2015, and annually 
thereafter, the Administrator 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 that--
          (1) identifies each Federal mentor-protege program under 
        section 299106 of this title;
          (2) discloses the number of participants in each mentor-
        protege program, including the number of participants that 
        are--
                  (A) small business concerns;
                  (B) qualified HUBZone small business concerns;
                  (C) small business concerns owned and controlled by 
                service-disabled veterans;
                  (D) small business concerns owned and controlled by 
                socially and economically disadvantaged individuals; or
                  (E) small business concerns owned and controlled by 
                women;
          (3) describes the type of assistance provided to proteges 
        under each mentor-protege program;
          (4) describes the benefits provided to mentors under each 
        mentor-protege program; and
          (5) describes the progress of proteges under each mentor-
        protege program with respect to competing for Federal prime 
        contracts and subcontracts.
  (b) Provision of Information.--The head of a Federal agency that 
carries out a mentor-protege program under section 299106 of this title 
shall annually provide the Administrator the information necessary for 
the Administrator to submit a report under subsection (a).
Sec. 107125.  Annual report on State trade expansion program
  (a) In General.-- The Associate Administrator for International Trade 
shall publish on the SBA website an annual report regarding the State 
trade expansion program under section 277110 of this title.
  (b) Contents.--The report shall--
          (1) disclose the number and amount of grants made under the 
        program during the preceding year;
          (2) include a list of the States receiving a grant under the 
        program during the preceding year, including the activities 
        being performed with each grant;
          (3) describe the effect of each grant on the eligible small 
        business concerns in the State receiving the grant;
          (4) disclose the total return on investment for each State; 
        and
          (5) describe best practices by States that showed high 
        returns on investment and significant progress in helping more 
        eligible small business concerns.
  (c) Notice to Congress.--On the date on which the Associate 
Administrator publishes a report under subsection (a), the Associate 
Administrator shall notify the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives that the report has been published.

                          Chapter 109--Funding

Sec.
109101.  Commitments in full amounts provided by law.
109102.  Program levels.
109103.  Authorization of appropriations.
109104.  TARP funds and tax increases.
109105.  Annual budget request.
Sec. 109101. 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 1 fiscal 
year and disbursed or guaranteed in any 1 or more of the 4 subsequent 
fiscal years.
Sec. 109102. 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 213; and
                  (B) $105,000,000 in direct loans, as provided in 
                chapter 213.
          (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 205107 of this title 
                and chapter 331;
                  (C) $500,000,000 in loans, as provided in section 
                205112 of this title; and
                  (D) $50,000,000 in loans, as provided in chapter 213.
          (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 321102(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 213; and
                  (B) $110,000,000 in direct loans, as provided in 
                chapter 213.
          (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 205107 of this title 
                and chapter 331;
                  (C) $500,000,000 in loans, as provided in section 
                205112 of this title; and
                  (D) $50,000,000 in loans, as provided in chapter 213.
          (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 321102(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. 109103. 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 271102 of this title;
          (2) to pay the expenses of the National Small Business 
        Development Center Advisory Board under section 271109 of this 
        title;
          (3) to pay the expenses of the information sharing system 
        under section 271104(j) of this title;
          (4) to pay the expenses of the Association for conducting the 
        accreditation program under section 271111 of this title;
          (5) to pay SBA's expenses, 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 
109102.--
          (1) In general.--There are authorized to be appropriated to 
        SBA 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 SBA 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 
                205112 of this title except by transfer from another 
                Federal agency to SBA, unless the program level 
                authorized for general business loans under subsection 
                (a)(2)(A) or (b)(2)(A) of section 109102 of this title 
                is fully funded; and
                  (B) the Administrator may not approve loans on behalf 
                of SBA 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 205112 of this title in 
                gross amounts of not more than $2,000,000.
  (c) Office of Advocacy.--
          (1) Appropriation requests.--Each budget of the United States 
        Government submitted by the President under section 1105 of 
        title 31 shall include a separate statement of the amount of 
        appropriations requested for the Office of Advocacy of SBA, 
        which shall be designated in a separate account in the general 
        fund of the Treasury.
          (2) Authorization of appropriations.--There are authorized to 
        be appropriated such sums as are necessary to carry out section 
        103107 of this title. Any amount appropriated under this 
        paragraph shall remain available, without fiscal year 
        limitation, until expended.
  (d) Office of Veterans Business Development.--There are authorized to 
be appropriated to carry out section 103113 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 
103202(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) 
        $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 263305(f)(3) of 
        this title.
  (h) Small Business Development Center Program.--
          (1) In general.--There are authorized to be appropriated to 
        carry out chapter 271--
                  (A) $130,000,000 for fiscal year 2005; and
                  (B) $135,000,000 for fiscal year 2006.
          (2) Grants.--There is authorized to be appropriated 
        $50,000,000 to carry out section 271115 of this title.
  (i) State Trade Expansion Program.--There is authorized to be 
appropriated to carry out the State trade expansion program under 
section 277110 of this title $30,000,000 for each of fiscal years 2016 
through 2020.
  (j) Business Grants and Cooperative Agreements.--There is authorized 
to be appropriated to carry out section 299102 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 299104 of this title (other than section 
        299104(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 271104(b)(21) of this 
        title.
          (3) Additional authorization for technical assistance 
        grants.--There are authorized to be appropriated to carry out 
        section 299104(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 305112(d) of this title are authorized to be 
        appropriated only for the costs of examinations under section 
        305112 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 307107 of this 
        title for each of fiscal years 2008 and 2009.
          (2) Funds collected for examinations.--Funds deposited under 
        section 307111(d) of this title are authorized to be 
        appropriated only for the costs of examinations under section 
        307111 of this title and for the costs of other oversight 
        activities with respect to the renewable fuel capital 
        investment company program.
Sec. 109104. TARP funds and tax increases
  (a) Definition of Covered Amount.--In this section, the term 
``covered amount'' means--
          (1) an amount made available to the Secretary of the Treasury 
        under title I of the Emergency Economic Stabilization Act of 
        2008 (12 U.S.C. 5211 et seq.) to purchase (under section 101 of 
        that Act (12 U.S.C. 5211)) or guarantee (under section 102 of 
        that Act (12 U.S.C. 5212)) assets under that Act; and
          (2) a revenue increase attributable to any amendment to the 
        Internal Revenue Code of 1986 made during the period beginning 
        on September 27, 2010, and ending on December 31, 2010.
  (b) Prohibition.--No covered amount shall be used to carry out the 
provisions described in subsection (c) (as restated in this title, in 
the case of the provisions described in paragraphs (1) to (3), (5) to 
(7), and (9) to (13)).
  (c) Provisions.--The provisions referred to in subsection (b) are--
          (1) the amendments made by section 1111 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2507);
          (2) the amendments made by section 1112 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2508);
          (3) the amendments made by section 1113 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2508);
          (4) the amendments made by section 1114 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2508);
          (5) the amendment made by section 1115 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2508);
          (6) the amendment made by section 1116 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2509);
          (7) the amendment made by section 1117 of the Small Business 
        Job Creation and Access to Capital Act of 2010 (124 Stat. 
        2509);
          (8) section 1118 of the Small Business Job Creation and 
        Access to Capital Act of 2010 (124 Stat. 2509);
          (9) the amendment made by section 1122(a) of the Small 
        Business Job Creation and Access to Capital Act of 2010 (124 
        Stat. 2510);
          (10) section 1122(b) of the Small Business Job Creation and 
        Access to Capital Act of 2010 (124 Stat. 2512);
          (11) the amendment made by section 1122(c) of the Small 
        Business Job Creation and Access to Capital Act of 2010 (124 
        Stat. 2512);
          (12) the amendment made by section 1131(a) of the Small 
        Business Job Creation and Access to Capital Act of 2010 (124 
        Stat. 2512); and
          (13) subsections (b) and (c) of section 1131 of the Small 
        Business Job Creation and Access to Capital Act of 2010 (124 
        Stat. 2514).
Sec. 109105. Annual budget request
  (a) In General.--For each fiscal year, the budget request for SBA 
shall provide a detailed justification of any proposed changes from the 
enacted level by individual appropriation.
  (b) Contents.--The detailed justification shall include at a minimum 
a description of each credit program and noncredit program, including 
the amount of funding and the amount of costs by appropriation account 
and fiscal year.
  (c) Multiple Appropriations.--For activities funded in multiple 
appropriations, the budget justification shall--
          (1) specify the amount included in each enacted 
        appropriation;
          (2) specify the amount proposed for the budget year; and
          (3) provide a justification for any proposed changes.

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

                     Division A--General Provisions

                    Chapter 201--General Provisions

Sec.
201101.  Certification of compliance with child support obligations.
201102.  Certification requirements for business opportunity 
          specialists.
201103.  Certification requirements for commercial market 
          representatives.
201104.  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.
201105.  Extension or renewal of loans.
201106.  Deferral of repayment for active duty reservists.
201107.  Ownership interest arising from community property law.
201108.  Use of financial assistance programs.
Sec. 201101. 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. 201102. Certification requirements for business opportunity 
                    specialists
  (a) In General.--Consistent with the requirements of subsection (b), 
a business opportunity specialist described (as defined in section 
231101 of this title) shall have a Level I Federal Acquisition 
Certification in Contracting (or any successor certification) or the 
equivalent Department of Defense certification, except that a business 
opportunity specialist who was serving on or before January 3, 2013, 
may continue to serve as a business opportunity specialist for a period 
of 5 years beginning on that date without such a certification.
  (b) Delay of Certification Requirement.--
          (1) Timing.--A certification described in subsection (a) is 
        not required for any person serving as a business opportunity 
        specialist until the date that is 1 calendar year after the 
        date on which the person is appointed as a business opportunity 
        specialist.
          (2) Applicability.--The requirements of paragraph (1)--
                  (A) shall be included in any initial job posting for 
                the position of a business opportunity specialist; and
                  (B) shall apply to any person appointed as a business 
                opportunity specialist after January 3, 2013.
Sec. 201103. Certification requirements for commercial market 
                    representatives
  (a) In General.--Consistent with the requirements of subsection (b), 
a commercial market representative referred to in section 107122 of 
this title shall have a Level I Federal Acquisition Certification in 
Contracting (or any successor certification) or the equivalent 
Department of Defense certification, except that a commercial market 
representative who was serving on or before November 25, 2015, may 
continue to serve as a commercial market representative for a period of 
5 years beginning on that date without such a certification.
  (b) Delay of Certification Requirement.--
          (1) Timing.--A certification described in subsection (a) is 
        not required for any person serving as a commercial market 
        representative until the date that is 1 calendar year after the 
        date on which the person is appointed as a commercial market 
        representative.
          (2) Applicability.--The requirements of paragraph (1)--
                  (A) shall be included in any initial job posting for 
                the position of a commercial market representative; and
                  (B) shall apply to any person appointed as a 
                commercial market representative after November 25, 
                2015.
Sec. 201104. 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 205104 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 SBA, 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. 201105. 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, private disaster loan program, intermediary lending pilot 
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. 201106. 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 221103 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 
                        221103 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. 201107. 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.
Sec. 201108. Use of financial assistance programs
  The financial assistance programs authorized by this subtitle and 
subtitle I shall be used to assist small business concerns that are 
engaged in--
          (1) the production of food or fiber;
          (2) ranching;
          (3) livestock raising;
          (4) aquaculture; or
          (5) any other industry relating to agriculture.

               Division B--General Business Loan Program

                   Chapter 203--General Purpose Loans

Sec.
203101.  Loan authority.
203102.  Methods of participation.
203103.  No credit elsewhere.
203104.  Sound and secure requirement.
203105.  Level of participation in guaranteed loans.
203106.  Maximum loan amounts.
203107.  Interest rates.
203108.  Prepayment charges.
203109.  Maximum term.
203110.  Deferment of payments.
203111.  Guarantee fees.
203112.  Certified lenders program.
203113.  Penalty fee on late payment.
203114.  Yearly fee.
203115.  Notification to Congress of significant policy or 
          administrative changes.
203116.  Pilot programs.
203117.  Calculation of subsidy rate.
203118.  Leasing.
203119.  Real estate appraisals.
203120.  Express loan program.
203121.  Loan application preparation and loan servicing by qualified 
          development companies.
203122.  Increased veteran/reservist participation program.
Sec. 203101. 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. 203102. Methods of participation
  (a) In General.--The Administrator may make a loan under section 
203101 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.
  (b) Lending Limits of Lenders.--The Administrator shall not guarantee 
a loan under the general business loan program if the sole purpose for 
requesting the guarantee is to allow the lender to exceed the legal 
lending limit of the lender.
Sec. 203103. 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.
  (d) Liquidity.--The Administrator shall not guarantee a loan under 
the general business loan program if the lender determines that the 
borrower is unable to obtain credit elsewhere solely because the 
liquidity of the lender depends on the sale of the guaranteed portion 
of the loan on the secondary market.
Sec. 203104. 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 205103 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 205105 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.
Sec. 203105. Level of participation in guaranteed loans
  (a) In General.--Except as provided in subsections (b), (c), and (d), 
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 be 90 percent.
  (d) Participation in International Trade Loan.--In an agreement to 
participate in a loan on a deferred basis under section 205110 of this 
title, the participation by the Administrator shall not exceed 90 
percent.
Sec. 203106. Maximum loan amounts
  (a) Total Amount Outstanding and Committed.--A loan shall not be made 
to a borrower under the general business loan program--
          (1) 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 $3,750,000 (or if the gross loan amount 
        would exceed $5,000,000); or
          (2) in the case of a loan solely for the purposes provided in 
        section 205110 of this title, if the total amount outstanding 
        and committed (on a deferred basis) to the borrower under the 
        general business loan program would not exceed $4,500,000 (or 
        if the gross loan amount would not exceed $5,000,000), of which 
        not more than $4,000,000 may be used for working capital, 
        supplies, or financings under section 205108 of this title for 
        export purposes.
  (b) Loan Amount.--A loan shall not be made under the general business 
loan program, directly or in cooperation with a bank or other lending 
institution through an agreement to participate on an immediate basis, 
if the amount of the loan would exceed $350,000.
Sec. 203107. 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 1 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 205103 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 1 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 1 percent.
          (3) Applicability.--Paragraphs (1) and (2) do not apply to 
        loans made on or after October 1, 2000.
Sec. 203108. 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 1st 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 1st year after disbursement;
          (2) 3 percent of the amount of prepayment, if the borrower 
        prepays during the 2d year after disbursement; and
          (3) 1 percent of the amount of prepayment, if the borrower 
        prepays during the 3d year after disbursement.
Sec. 203109. 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. 203110. 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. 203111. 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 1 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. 203112. Certified lenders program
  (a) In General.--The Administrator may establish a certified lenders 
program for lenders that establish their knowledge of the 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. 203113. 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. 203114. 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 203111(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. 203115. 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. 203116. 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. 203117. 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. 203118. Leasing
  In addition to such other lease arrangements as the Administrator may 
authorize, a borrower may permanently lease to 1 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. 203119. 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. 203120. 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 203115 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.
  (g) Guarantee Fee Waiver for Veterans.--
          (1) Definition of veteran or spouse of a veteran.--In this 
        subsection, the term ``veteran or spouse of a veteran'' means--
                  (A) a veteran (as defined in section 101102 of this 
                title);
                  (B) an individual who is eligible to participate in 
                the transition assistance program under section 1144 of 
                title 10;
                  (C) a member of a reserve component of the Armed 
                Forces named in section 10101 of title 10;
                  (D) the spouse of an individual described in 
                subparagraph (A), (B), or (C); and
                  (E) the surviving spouse (as defined in section 101 
                of title 38) of an individual described in subparagraph 
                (A), (B), or (C) who died while serving on active duty 
                or as a result of a disability that is service-
                connected (as defined in that section).
          (2) Guarantee fee waiver.--The Administrator shall not 
        collect a guarantee fee described in section 203111 of this 
        title in connection with a loan made under this section to a 
        veteran or spouse of a veteran on or after October 1, 2015.
          (3) Exception.--If the President's budget for a fiscal year 
        submitted to Congress pursuant to section 1105(a) of title 31 
        includes a cost for the program established under this section 
        that is above zero, paragraph (2) shall not apply to loans made 
        during the fiscal year.
  (h) Recovery Opportunity Loans.--
          (1) In general.--During the 5-year period beginning on the 
        date on which the President declares a major disaster, the 
        Administrator may guarantee an express loan to a small business 
        concern located in a disaster area in accordance with this 
        subsection.
          (2) Maximums.--For a loan guaranteed under paragraph (1)--
                  (A) the maximum loan amount is $150,000; and
                  (B) the guarantee rate shall be not more than 85 
                percent.
          (3) Overall cap.--A loan guaranteed under paragraph (1) shall 
        not be counted in determining the amount of loans made to a 
        borrower for purposes of subsection (d).
          (4) Operations.--A small business concern receiving a loan 
        guaranteed under paragraph (1) shall certify that the small 
        business concern was in operation on the date on which the 
        applicable major disaster occurred as a condition of receiving 
        the loan.
          (5) Repayment ability.--A loan guaranteed under paragraph (1) 
        may be made only to a small business concern that demonstrates, 
        to the satisfaction of the Administrator, sufficient capacity 
        to repay the loan.
          (6) Timing of payment of guarantees.--
                  (A) In general.--Not later than 90 days after the 
                date on which a request for purchase is filed with the 
                Administrator, the Administrator shall determine 
                whether to pay the guaranteed portion of the loan.
                  (B) Recapture.--Notwithstanding any other provision 
                of law, unless there is a subsequent finding of fraud 
                by a court of competent jurisdiction relating to a loan 
                guaranteed under paragraph (1), on and after the date 
                that is 6 months after the date on which the 
                Administrator determines to pay the guaranteed portion 
                of the loan, the Administrator shall not attempt to 
                recapture the paid guarantee.
          (7) Fees.--
                  (A) In general.--Unless the Administrator waives the 
                guarantee fee that would otherwise be collected by the 
                Administrator under section 203111 of this title for a 
                loan guaranteed under paragraph (1), and except as 
                provided in subparagraph (B), the guarantee fee for the 
                loan shall be equal to the guarantee fee that the 
                Administrator would collect if the guarantee rate for 
                the loan were 50 percent.
                  (B) Exception.--Subparagraph (A) shall not apply if--
                          (i) the cost of carrying out the general 
                        business loan program in a fiscal year is more 
                        than zero; and
                          (ii) that cost is directly attributable to 
                        the cost of guaranteeing loans under paragraph 
                        (1).
          (8) Regulations.--Not later than 270 days after November 25, 
        2015, the Administrator shall promulgate regulations to carry 
        out this subsection.
Sec. 203121. Loan application preparation and loan servicing by 
                    qualified development companies
  Notwithstanding any other provision of law, a qualified development 
company (as defined in section 331101 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. 203122. 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 2d 
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 203111 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 203111 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 1 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.
205101.  Applicability of chapter 203.
205102.  Residential or commercial construction or rehabilitation for 
          sale.
205103.  The disabled.
205104.  Unemployed or low-income individuals.
205105.  Energy measures.
205106.  Pollution control facilities.
205107.  Certified development companies.
205108.  Export working capital program.
205109.  Qualified employee trusts.
205110.  International trade.
205111.  Business development.
205112.  Closure of defense installations; termination of defense 
          programs; veterans and certain other individuals associated 
          with defense.
205113.  Loans for energy efficient technologies.
205114.  Export express program.
Sec. 205101. 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. 205102. 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. 205103. 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. 205104. 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. 205105. 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. 205106. 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 of more than 
$1,000,000.
Sec. 205107. 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. 205108. Export working capital program
  (a) In General.--Under a program to be known as the export working 
capital program, the Administrator may provide an extension of credit, 
standby letter of credit, revolving line of credit for export purposes, 
or other financing to enable a small business concern (including a 
small business export trading company and a small business export 
management company) to develop a foreign market.
  (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) Amount.--The amount of a financing under subsection (a) shall be 
not more than $5,000,000.
  (d) Fees.--
          (1) In general.--For a financing under subsection (a), the 
        Administrator shall collect the fee assessed under section 
        203114 of this title not more frequently than once each year.
          (2) Untapped credit.--The Administrator shall not assess a 
        fee on capital that is not accessed by the small business 
        concern.
  (e) Considerations.--When considering an application for financing 
under subsection (a), the Administrator shall give weight to export-
related benefits, including--
          (1) the opening of new markets for United States goods and 
        services abroad; and
          (2) encouragement of the involvement of small business 
        concerns (including agricultural concerns) in the export 
        market.
  (f) Marketing.--The Administrator shall aggressively market the 
export working capital program to small business concerns.
Sec. 205109. 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 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. 205110. 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--
          (1) in 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;
          (2) in the refinancing of existing indebtedness that is not 
        structured with reasonable terms and conditions, including any 
        debt that qualifies for refinancing under any other provision 
        of this division; or
          (3) by providing working capital.
  (b) Security.--
          (1) In general.--Except as provided in paragraph (2), a loan 
        under this section shall be secured by a 1st lien position or 
        1st mortgage on the property or equipment financed by the loan 
        or on other assets of the small business concern.
          (2) Exception.--A loan under this section may be secured by a 
        2d lien position on the property or equipment financed by the 
        loan or on other assets of the small business concern if the 
        Administrator determines that the lien provides adequate 
        assurance of the payment of the loan.
  (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.).
  (f) List of export finance lenders.--
          (1) Publication.--The Administrator shall publish an annual 
        list of the banks and participating lending institutions that, 
        during the 1-year period ending on the date of publication of 
        the list, have made loans guaranteed by the Administrator 
        under--
                  (A) this section;
                  (B) section 205108 of this title; or
                  (C) section 205114 of this title.
          (2) Availability.--The Administrator shall--
                  (A) post the list published under paragraph (1) on 
                the SBA website; and
                  (B) make the list available, on request, at each SBA 
                district office.
Sec. 205111. 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. 205112. 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 at any 
        tier, 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, subcontractor 
                at any tier, 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 203104, 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. 205113. 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 2d 
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 203111 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 203111 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 1 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.
Sec. 205114. Export express program
  (a) In General.--The Administrator may guarantee the timely payment 
of an express loan to a small business concern made for an export 
development activity.
  (b) Level of Participation.--
          (1) Maximum amount.--The maximum amount of an express loan 
        guaranteed under this section shall be $500,000.
          (2) Percentage.--For an express loan guaranteed under this 
        section, the Administrator shall guarantee--
                  (A) 90 percent of a loan that is not more than 
                $350,000; and
                  (B) 75 percent of a loan that is more than $350,000 
                and not more than $500,000.

    Chapter 207--Small Business Lending Companies and Non-Federally 
                           Regulated Lenders

Sec.
207101.  Authority to regulate.
207102.  Capital directive.
207103.  Civil action.
207104.  Revocation or suspension of loan authority; cease and desist 
          orders.
207105.  Removal or suspension of management officials.
207106.  Appointment of receiver.
207107.  Taking of possession of assets.
207108.  Reports.
Sec. 207101. 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. 207102. 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. 207103. 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. 207104. 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. 207105. 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 SBA 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 207104 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. 207106. 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. 207107. 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 3d party by means of a receiver appointed under 
section 207106 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 3d party by means 
of a receiver appointed under section 207106 of this title.
Sec. 207108. 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) Inapplicability 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 SBA, 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--Intermediary Lending Pilot Program

            Chapter 211--Intermediary Lending Pilot Program

Sec.
211101.  Definitions.
211102.  Establishment.
211103.  Purposes.
211104.  Loans to eligible intermediaries.
211105.  Loans to small business concerns.
211106.  Regulations.
211107.  Availability of funds.
211108.  Termination of authority.
Sec. 211101. Definitions
  In this chapter:
          (1) Eligible intermediary.--
                  (A) In general.--The term ``eligible intermediary'' 
                means a private, nonprofit entity that--
                          (i) seeks or has been awarded a loan from the 
                        Administrator to make loans to small business 
                        concerns under this chapter; and
                          (ii) has not less than 1 year of experience 
                        making loans to startup, newly established, or 
                        growing small business concerns.
                  (B) Inclusions.--The term ``eligible intermediary'' 
                includes--
                          (i) a private, nonprofit community 
                        development corporation;
                          (ii) a consortium of private, nonprofit 
                        organizations or nonprofit community 
                        development corporations; and
                          (iii) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government.
          (2) Program.--The term ``program'' means the small business 
        intermediary lending pilot program established under section 
        211102 of this title.
Sec. 211102. Establishment
  There is established a 3-year small business intermediary lending 
pilot program under which the Administrator may make direct loans to 
eligible intermediaries for the purpose of making loans to startup, 
newly established, and growing small business concerns.
Sec. 211103. Purposes
  The purposes of the program are--
          (1) to assist small business concerns in areas suffering from 
        a lack of credit due to poor economic conditions or changes in 
        the financial market; and
          (2) to establish a loan program under which the Administrator 
        may provide loans to eligible intermediaries to enable the 
        eligible intermediaries to provide loans to startup, newly 
        established, and growing small business concerns for working 
        capital, real estate, or the acquisition of materials, 
        supplies, or equipment.
Sec. 211104. Loans to eligible intermediaries
  (a) Application.--An eligible intermediary desiring a loan under the 
program shall submit an application to the Administrator that 
describes--
          (1) the type of small business concerns to be assisted;
          (2) the size and range of loans to be made;
          (3) the interest rate and terms of loans to be made;
          (4) the geographic area to be served and the economic, 
        poverty, and unemployment characteristics of the area;
          (5) the status of small business concerns in the area to be 
        served and an analysis of the availability of credit; and
          (6) the qualifications of the applicant to carry out this 
        chapter.
  (b) Loan Limit.--No loan may be made to an eligible intermediary 
under the program if the total amount outstanding and committed to the 
eligible intermediary by the Administrator would, as a result of the 
loan, exceed $1,000,000 during the participation of the eligible 
intermediary in the program.
  (c) Loan Term.--A loan made by the Administrator under the program 
shall be for a term of 20 years.
  (d) Interest Rate.--A loan made by the Administrator to an eligible 
intermediary under the program shall bear an annual interest rate equal 
to 1.00 percent.
  (e) No Fee or Collateral.--The Administrator shall not charge any fee 
or require collateral with respect to any loan made to an eligible 
intermediary under the program.
  (f) Delayed Payment.--The Administrator shall not require the payment 
of principal or interest on a loan made to an eligible intermediary 
under the program during the 2-year period beginning on the date of the 
initial disbursement of funds under the loan.
Sec. 211105. Loans to small business concerns
  (a) In General.--The Administrator, through an eligible intermediary, 
shall make loans to startup, newly established, and growing small 
business concerns for working capital, real estate, and the acquisition 
of materials, supplies, furniture, fixtures, and equipment.
  (b) Maximum Amount.--An eligible intermediary shall not make a loan 
under the program of more than $200,000 to any 1 small business 
concern.
  (c) Interest rate.--A loan made by an eligible intermediary to a 
small business concern under the program--
          (1) may have a fixed or a variable interest rate; and
          (2) shall bear an interest rate specified by the eligible 
        intermediary in the application of the eligible intermediary 
        for a loan under the program.
  (d) Review Restrictions.--The Administrator shall not review 
individual loans made by an eligible intermediary to a small business 
concern before approval of the loan by the eligible intermediary.
Sec. 211106. Regulations
  The Administrator shall issue regulations to carry out this chapter.
Sec. 211107. Availability of funds
  Any amount provided to the Administrator for the purposes of carrying 
out this chapter shall remain available until expended.
Sec. 211108. Termination of authority
  The authority of the Administrator to make loans under the program 
shall terminate on September 27, 2013.

                     Division D--Microloan Program

                     Chapter 213--Microloan Program

Sec.
213101.  Definitions.
213102.  Establishment of microloan program.
213103.  Purposes of microloan program.
213104.  Eligibility for participation.
213105.  Loans to intermediaries; loans by intermediaries to small 
          business concerns.
213106.  Marketing, management, and technical assistance grants to 
          intermediaries.
213107.  Private sector borrowing technical assistance grants.
213108.  Grants for management, marketing, technical assistance, and 
          related services.
Sec. 213101. 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 $50,000, 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. 213102. Establishment of microloan program
  There is established within SBA a microloan program.
Sec. 213103. 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 213106 and 213107 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. 213104. Eligibility for participation
  An intermediary shall be eligible to receive loans and grants under 
sections 213105 and 213106 of this title if the intermediary has at 
least 1 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. 213105. 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 1 
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 1st year of the intermediary's participation in 
the microloan program or $5,000,000 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 1st 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 1st 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 $50,000; or
                          (ii) have outstanding or committed to any 1 
                        borrower more than $50,000.
          (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 3d 
                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 1 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. 213106. Marketing, management, and technical assistance grants to 
                    intermediaries
  (a) In General.--In conjunction with a loan to an intermediary under 
section 213105 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 213105 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 213108 of 
        this title.
          (2) Technical assistance.--An intermediary may provide 
        technical assistance under paragraph (1) through a 3d party 
        contract.
Sec. 213107. 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 $50,000 
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. 213108. 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 SBA's Salaries and Expense Account for the specific purpose 
of providing 1 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 
213103(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 E--Disaster Assistance Programs

                   Chapter 221--Disaster Loan Program

Sec.
221101.  Physical loss disaster loans.
221102.  Economic injury disaster loans.
221103.  Loans to assist small business concerns that suffer injury as a 
          result of an essential employee's being ordered to active 
          military duty.
221104.  Public awareness of disaster declaration and application 
          periods.
221105.  Disaster loan processing.
221106.  Disaster assistance employees.
221107.  Maximum loan amount.
221108.  Additional disaster assistance in cases of extraordinary 
          disaster.
221109.  Reduction of approval delays and disbursement delays.
221110.  Transparency in loan approvals.
221111.   Awards to small business development centers, women's business 
          centers, and SCORE for disaster recovery.
221112.   Supplemental assistance for contractor malfeasance.
221113.  Business recovery centers.
221114.  Oversight of economic injury disaster loans.
221115.  Interest rates.
221116.  Maximum term.
221117.  Deferment of repayment.
221118.  Suspension of payments.
221119.  Participation in loans on deferred basis.
221120.  Assistance and counseling for disaster victims.
221121.  Priority in allocating funds.
221122.  Prohibition of cancellation of certain disaster loans.
221123.  Prohibition of net earnings clauses.
221124.  Biennial disaster simulation exercise.
221125.  Disaster planning responsibilities.
221126.  Disaster response plan.
221127.  Coordination of disaster assistance programs with FEMA.
221128.  Plans to secure sufficient office space.
221129.  Bond guarantees in procurements relating to a major disaster.
221130.  Civil penalty.
Sec. 221101. 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.--
                  (A) In general.--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 appropriate to protect the damaged 
                or destroyed property from future disasters by taking 
                mitigating measures.
                  (B) Mitigating measures.--In subparagraph (A), the 
                term ``mitigating measures'' includes--
                          (i) the construction of a retaining wall or 
                        sea wall;
                          (ii) the grading or contouring of land; and
                          (iii) the relocation of a utility or 
                        modification of a structure, including the 
                        construction of a safe room or similar storm 
                        shelter designed to protect property and 
                        occupants from tornadoes or other natural 
                        disasters, if the safe room or similar storm 
                        shelter is constructed in accordance with 
                        applicable standards issued by the Federal 
                        Emergency Management Agency.
          (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 1 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 1 
                        disaster; or
                          (ii) for any homeowner or lessee on account 
                        of loss of personal property to less than 
                        $20,000 for any 1 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.--
          (1) No collateral to be required for loan below a certain 
        amount.--The Administrator shall not require collateral for a 
        loan of $25,000 (or such greater amount as the Administrator 
        determines to be appropriate in the event of a disaster) or 
        less that is made under this section.
          (2) Primary residence.--
                  (A) In general.--In obtaining the best available 
                collateral for a loan of not more than $200,000 under 
                this section, the Administrator shall not require the 
                owner of a small business concern to use the primary 
                residence of the owner as collateral if the 
                Administrator determines that the owner has other 
                assets that are of equal quality and have a value equal 
                to or greater than the amount of the loan that could be 
                used as collateral for the loan.
                  (B) No reduction of amount or modification of 
                standards.--Nothing in subparagraph (A) shall be 
                construed to--
                          (i) reduce the amount of collateral required 
                        by the Administrator in connection with a loan 
                        described in subparagraph (A); or
                          (ii) modify the standards used to evaluate 
                        the quality (rather than the type) of the 
                        collateral.
Sec. 221102. 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 1 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 other than 
businesses engaged in aquaculture, 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 farm-related or nonfarm-related 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 1 
        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) Collateral.--
          (1) Primary residence.--In obtaining the best available 
        collateral for a loan of not more than $200,000 under this 
        section, the Administrator shall not require the owner of a 
        small business concern to use the primary residence of the 
        owner as collateral if the Administrator determines that the 
        owner has other assets that are of equal quality and have a 
        value equal to or greater than the amount of the loan that 
        could be used as collateral for the loan.
          (2) No reduction of amount or modification of standards.--
        Nothing in paragraph (1) shall be construed to--
                  (A) reduce the amount of collateral required by the 
                Administrator in connection with a loan described in 
                paragraph (1); or
                  (B) modify the standards used to evaluate the quality 
                (rather than the type) of the collateral.
  (f) Nurseries.--The Administrator shall not withhold disaster 
assistance under this section to a nursery that is a victim of a 
drought disaster.
  (g) Disaster Loans for Superstorm Sandy.--
          (1) In general.--Notwithstanding any other provision of law, 
        and subject to the same requirements and procedures that are 
        used to make loans under the disaster loan program, a small 
        business concern, homeowner, nonprofit entity, or renter that 
        was located within an area and during the time period with 
        respect to which a major disaster was declared by the President 
        under section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) by reason of 
        Superstorm Sandy may apply to the Administrator--
                  (A) for a loan to repair, rehabilitate, or replace 
                property damaged or destroyed by reason of Superstorm 
                Sandy; or
                  (B) if such a small business concern has suffered 
                substantial economic injury by reason of Superstorm 
                Sandy, for a loan to assist such a small business 
                concern.
          (2) Timing.--The Administrator shall select loan recipients 
        and make available loans for a period of not less than 1 year 
        after the date on which the Administrator carries out paragraph 
        (1).
          (3) Inspector general review.--Not later than 6 months after 
        the date on which the Administrator begins carrying out 
        paragraph (1), the SBA Inspector General shall initiate a 
        review of the controls for ensuring applicant eligibility for 
        loans made under this subsection.
Sec. 221103. 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 
        201106(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 1 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 1 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 
disaster loan under section 221102 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 
                SBA, 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 SBA, 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.
  (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 1-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. 221104. 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 221108 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 
        221108 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 221108 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 SBA 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 SBA region before June 18, 2008, and likely 
        scenarios for disasters in each SBA region; and
          (5) ensures that the marketing plan is made available at 
        small business development centers and on the SBA website.
Sec. 221105. 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 
        221108 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 221108 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 SBA 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 SBA 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 SBA 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 SBA personnel 
        at all critical stages of the application process, including 
        the following:
                  (A) When SBA personnel determine that additional 
                information or documentation is required to process the 
                application.
                  (B) When SBA 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 SBA has in place a facility for disaster assistance 
processing that, when SBA'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. 221106. 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 SBA 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 SBA 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. 221107. 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. 221108. Additional disaster assistance in cases of extraordinary 
                    disaster
  (a) Definition of Eligible small business concern.--In this section, 
the term ``eligible small business concern'' means a small business 
concern--
          (1) that has suffered extraordinary disaster-related 
        substantial economic injury as a result of an extraordinary 
        disaster; and
          (2)(A) for which not less than 25 percent of the market share 
        of the small business concern is from business transacted in 
        the extraordinary disaster area;
          (B) for which not less than 25 percent of an input into a 
        production process of the small business concern is from the 
        extraordinary disaster area; or
          (C) that relies on a provider located in the extraordinary 
        disaster area for a service that is not readily available 
        elsewhere.
  (b) Declaration of Extraordinary Disaster.--If the President declares 
a major disaster, the Administrator may declare that the major disaster 
constitutes an extraordinary disaster if the major disaster--
          (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.
  (c) Additional Economic Injury Disaster Loan Assistance.--
          (1) In general.--If the Administrator declares an 
        extraordinary disaster, the Administrator may make such loans 
        (directly or in cooperation with a bank or other institution 
        through an agreement to participate on an immediate or deferred 
        basis) 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 221102 of this title.
Sec. 221109. Reduction of approval delays and disbursement delays
  The Administrator shall provide a clear and concise notification on 
all application materials for loans made under the disaster loan 
program and on relevant websites notifying an applicant that--
          (1) the applicant may submit all documentation necessary for 
        the approval of the loan at the time of application; and
          (2) failure to submit all documentation could delay the 
        approval and disbursement of the loan.
Sec. 221110. Transparency in loan approvals
  The Administrator shall establish and implement clear, written 
policies and procedures for analyzing the ability of a loan applicant 
to repay a loan made under the disaster loan program.
Sec. 221111. Awards to small business development centers, women's 
                    business centers, and SCORE for disaster recovery
  (a) In General.--The Administrator may provide financial assistance 
to a small business development center, a women's business center, 
SCORE, or any proposed consortium of those to spur disaster recovery 
and growth of small business concerns located in an area for which the 
President declares a major disaster.
  (b) Form of Financial Assistance.--Financial assistance provided 
under this section shall be in the form of a grant, contract, or 
cooperative agreement.
  (c) No Matching Fund Requirement.--Matching funds shall not be 
required for any grant, contract, or cooperative agreement under this 
section.
  (d) Requirements.--A recipient of financial assistance under this 
section shall provide counseling, training, and other related services, 
such as promoting long-term resiliency, to small business concerns and 
entrepreneurs affected by a major disaster.
  (e) Performance.--
          (1) In general.--The Administrator, in cooperation with the 
        recipients of financial assistance under this section, shall 
        establish metrics and goals for performance of grants, 
        contracts, and cooperative agreements under this section.
          (2) Metrics and goals.-- The metrics and goals established 
        under paragraph (1) shall include--
                  (A) recovery of sales;
                  (B) recovery of employment;
                  (C) reestablishment of business premises; and
                  (D) establishment of new small business concerns.
          (3) Use of estimates.--The Administrator shall base the 
        metrics and goals established under paragraph (1), in part, on 
        the estimates of disaster impact prepared by the Office of 
        Disaster Assistance for purposes of estimating loanmaking 
        requirements.
  (f) Term.--
          (1) In general.--The term of any grant, contract, or 
        cooperative agreement under this section shall be not more than 
        2 years.
          (2) Extension.--The Administrator may make 1 extension of a 
        grant, contract, or cooperative agreement under this section 
        for a period of not more than 1 year, on a showing of good 
        cause and need for the extension.
  (g) Exemption From Other Program Requirements.--Financial assistance 
provided under this section is in addition to, and wholly separate 
from, any other form of assistance provided by the Administrator under 
this subtitle.
  (h) Competitive Basis.--The Administrator shall award financial 
assistance under this section on a competitive basis.
Sec. 221112. Supplemental assistance for contractor malfeasance
  (a) In General.--If--
          (1) a contractor or other person engages in malfeasance in 
        connection with repairs to, rehabilitation of, or replacement 
        of real or personal property relating to which a loan was made 
        under the disaster loan program; and
          (2) the malfeasance results in substantial economic damage to 
        the recipient of the loan or a substantial risk to health or 
        safety;
on receiving documentation of the substantial economic damage or the 
substantial risk to health or safety from an independent loss verifier, 
and subject to subsection (b), the Administrator may increase the 
amount of the loan as necessary for the cost of repairs, 
rehabilitation, or replacement needed to address the cause of the 
economic damage or health or safety risk.
  (b) Requirements.--
          (1) In general.--The Administrator may increase the amount of 
        a loan under subparagraph (A) only on receiving an appropriate 
        certification from the borrower and person performing the 
        mitigation attesting to the reasonableness of the mitigation 
        costs and an assignment of any proceeds received from the 
        person engaging in the malfeasance.
          (2) Amount.--The assignment of proceeds recovered from the 
        person engaging in the malfeasance shall be equal to the amount 
        of the loan.
          (3) Audit and verification.--Any mitigation activities shall 
        be subject to audit and independent verification of 
        completeness and cost reasonableness.
Sec. 221113. Business recovery centers
  (a) In General.--The Administrator, acting through the SBA district 
offices, shall identify locations that may be used as recovery centers 
by the SBA in the event of a disaster declared under this chapter or a 
major disaster.
  (b) Requirements for Identification.--An SBA district office shall--
          (1) identify a location described in subsection (a) in each 
        county in the area served by the SBA district office; and
          (2) ensure that the locations identified under subsection (a) 
        may be used as a recovery center without cost to the 
        Government, to the extent practicable.
Sec. 221114. Oversight of economic injury disaster loans
  The Administrator--
          (1) shall maintain a degree of oversight of entities 
        receiving economic injury disaster loans under section 221102 
        of this title that is greater than the degree of oversight 
        maintained on November 25, 2015; and
          (2) may consider--
                  (A) scheduled site visits to ensure borrower 
                eligibility and compliance with requirements 
                established by the Administrator; and
                  (B) reviews of the use of the loan proceeds by an 
                entity described in that section to ensure compliance 
                with requirements established by the Administrator.
Sec. 221115. 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 221101 or 221102.--Notwithstanding any other 
provision of law, the interest rate on the Federal share of a loan 
under section 221101 or 221102 of this title, determined as of the date 
on which the disaster commenced, shall be--
          (1) in the case of a homeowner unable to secure credit 
        elsewhere, the lesser of--
                  (A) 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 1 percent per 
                year as determined by the Administrator, and adjusted 
                to the nearest 0.125 percent; or
                  (B) 4 percent per year;
          (2) in the case of a homeowner able to secure credit 
        elsewhere, the lesser of--
                  (A) 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 1 percent per 
                year as determined by the Administrator, and adjusted 
                to the nearest 0.125 percent; or
                  (B) 8 percent per year;
          (3) 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
          (4) in the case of a business concern able to obtain credit 
        elsewhere, a rate prescribed by the Administrator, not to 
        exceed the lowest of--
                  (A) the rate prevailing in the private market for 
                similar loans;
                  (B) the rate prescribed by the Administrator as the 
                maximum interest rate for deferred participation 
                (guaranteed) loans under the general business loan 
                program; or
                   (C) 8 percent per year.
Sec. 221116. 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 
        221115(b)(2)(D) of this title that is able to obtain credit 
        elsewhere, 7 years.
Sec. 221117. 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. 221118. 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 221102(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. 221119. 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. 221120. 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. 221121. 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. 221122. Prohibition of cancellation of certain disaster loans
  No portion of a loan under section 221101 or 221102 of this title 
shall be subject to cancellation under any provision of law.
Sec. 221123. 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 1st 5 years 
after repayment begins.
Sec. 221124. 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 107118(g) of this title a report on a disaster simulation 
exercise conducted under subsection (a).
Sec. 221125. 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 SBA 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 SBA;
          (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 221126 of 
        this title;
          (2) ensuring that there are in-service and pre-service 
        training procedures for SBA disaster response staff;
          (3) coordinating and directing SBA training exercises 
        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 SBA;
          (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. 221126. 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 SBA region, a description of the 
                disasters most likely to occur in the SBA region.
                  (B) For each disaster described under subparagraph 
                (A)--
                          (i) an assessment of the disaster;
                          (ii) an assessment of the demand for SBA 
                        assistance most likely to occur in response to 
                        the disaster;
                          (iii) an assessment of the needs of SBA, 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 clause (iii).
  (c) Plan Revision.--
          (1) In general.--The Administrator shall update the disaster 
        response plan--
                  (A) annually; and
                  (B) following any major disaster relating to which 
                the Administrator declares eligibility for additional 
                disaster assistance under section 221108 of this title.
          (2) Extreme volume of applications.--
                  (A) In general.--The Administrator shall revise the 
                disaster response plan (or any successor to the plan) 
                to incorporate the Administrator's response to a 
                situation in which an extreme volume of applications 
                are received during the period of time immediately 
                following a disaster.
                  (B) Contents.--A revision under subparagraph (A) 
                shall include--
                          (i) a plan to ensure that sufficient human 
                        and technological resources are made available; 
                        and
                          (ii) a plan to prevent delays in loan 
                        processing.
  (d) Required Knowledge.--The Administrator shall carry out 
subsections (b) and (c)(1) 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 107118(g) of this title a report on the disaster response plan.
Sec. 221127. Coordination of disaster assistance programs with FEMA
  (a) In General.--The Administrator shall ensure that the SBA disaster 
assistance programs 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 
        SBA 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 107118(g) of this title a report on the regulations under 
subsection (b).
Sec. 221128. 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 107118(g) of this title a report on the plans developed under 
subsection (a).
Sec. 221129. 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 SBA) 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. 221130. 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 223--Private Disaster Assistance Program

Sec.
223101.  Definitions.
223102.  Program.
223103.  Use of loans.
223104.  Online applications.
223105.  Maximum amounts.
223106.  Terms and conditions.
223107.  Lenders.
223108.  Fees.
223109.  Documentation.
223110.  Purchase of loans.
223111.  Regulations.
223112.  Authorization of appropriations.
Sec. 223101. Definitions
  In this chapter:
          (1) Eligible individual.--The term ``eligible individual'' 
        means an individual who is eligible for disaster assistance 
        under section 221101 of this title relating to a major disaster 
        relating to which the Administrator declares eligibility for 
        additional disaster assistance under section 221108 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 221108 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 223111 of this title.
          (4) Small business concern.--The term ``small business 
        concern'' means a small business concern (as defined in section 
        101102 or 301101 of this title).
Sec. 223102. 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. 223103. Use of loans
  A loan guaranteed by the Administrator under this chapter may be used 
for any purpose authorized under chapter 221.
Sec. 223104. 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. 223105. 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. 223106. Terms and conditions
  A loan guaranteed under this chapter shall be made under the same 
terms and conditions as a loan under chapter 221.
Sec. 223107. 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 1 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. 223108. 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. 223109. 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 223111 
of this title.
Sec. 223110. 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. 223111. Regulations
  The Administrator shall promulgate regulations establishing permanent 
criteria for qualified private lenders.
Sec. 223112. Authorization of appropriations
  (a) In General.--Amounts necessary to carry out this chapter shall be 
made available from amounts appropriated to SBA to carry out chapter 
221.
  (b) Authority To Reduce Interest Rates and Other Terms and 
Conditions.--Funds appropriated to SBA to carry out this chapter may be 
used by the Administrator to meet the loan terms and conditions 
specified in section 223106 of this title.

           Chapter 225--Immediate Disaster Assistance Program

Sec.
225101.  Definition of program.
225102.  Program.
225103.  Eligibility.
225104.  Use of proceeds.
225105.  Loan terms.
225106.  Approval or disapproval.
Sec. 225101. Definition of program
  In this chapter, the term ``program'' means the immediate disaster 
assistance program established under section 225102 of this title.
Sec. 225102. 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. 225103. Eligibility
  To receive a loan guarantee under section 225102 of this title, an 
applicant shall apply for, and meet basic eligibility standards for, a 
loan under chapter 221 or 223.
Sec. 225104. Use of proceeds
  A business concern that receives a loan under chapter 221 or 223 
shall use the proceeds of the loan to repay all loans guaranteed under 
section 225102 of this title, if any, before using the proceeds for any 
other purpose.
Sec. 225105. Loan terms
  (a) No Prepayment Penalty.--There shall be no prepayment penalty on a 
loan guaranteed under section 225102 of this title.
  (b) Repayment.--A business concern that receives a loan guaranteed 
under section 225102 of this title and that is disapproved for a loan 
under chapter 221 or 223 shall repay the loan guaranteed under section 
225102 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 225102 of this title is 
disbursed.
Sec. 225106. 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 227--Expedited Disaster Assistance Business Loan Guarantee 
                                Program

Sec.
227101.  Definition of program.
227102.  Program.
227103.  Consultation.
227104.  Regulations.
Sec. 227101. Definition of program
  In this chapter, the term ``program'' means the expedited disaster 
assistance business loan guarantee program established under section 
227102 of this title.
Sec. 227102. 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 221108 of this title.
Sec. 227103. Consultation
  In establishing the program, the Administrator shall consult with--
          (1) appropriate personnel (including SBA district office 
        personnel) of SBA;
          (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. 227104. 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 1 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 221;
          (6) may be refinanced as part of any subsequent disaster 
        assistance provided under chapter 221;
          (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 221103(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 F--Business Development Program

                    Chapter 231--General Provisions

Sec.
231101.  Definitions.
231102.  Establishment of business development program.
231103.  Unemployed or low-income individuals.
231104.  Restrictions on activities of SBA employees.
231105.  Encouragement of subcontracts.
231106.  Federal contracts, subcontracts, and deposits.
231107.  Business opportunity specialists.
231108.  Requests for investigation.
231109.  Use of procurement authority.
Sec. 231101. 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 SBA 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 233118 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 
        103108 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 133 of title 41.
          (10) Graduate.--The term ``graduate'', with reference to a 
        program participant, means to graduate the program participant 
        from the program under section 233120 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 233129 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) 1 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 1 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 1 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, among other things, 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.--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.
          (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 233121 of this title.
Sec. 231102. Establishment of business development program
  There is established within SBA the business development program, 
which shall provide assistance exclusively for small business concerns 
eligible to receive contracts under chapter 233.
Sec. 231103. 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. 231104. Restrictions on activities of SBA employees
  (a) Activities and Transactions Relating to Ownership of a Program 
Participant.--
          (1) In general.--A person within the employ of SBA 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 
                SBA 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 SBA 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 SBA 
        whose participation in a violation of paragraph (1) is directed 
        or solicited shall expeditiously report the direction or 
        solicitation to the Inspector General of SBA.
          (3) Disciplinary action.--An employee of SBA 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. 231105. 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--
          (1) potential small business concern subcontractors; and
          (2) program participants.
Sec. 231106. 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. 231107. Business opportunity specialists
  (a) Position.--In each SBA field office responsible for assisting 1 
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. 231108. 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 SBA 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.
Sec. 231109. Use of procurement authority
  The procurement authority under the program shall be used only as a 
tool for developing business ownership among groups that own and 
control little productive capital.

                        Chapter 233--Contracting

Sec.
233101.  Contracting authority.
233102.  Contracting procedure.
233103.  Fair market price.
233104.  Award after completion of program participation period.
233105.  Award through competition.
233106.  Participation by program participants in negotiation of 
          contracts to be awarded noncompetitively.
233107.  Sole source award.
233108.  Annual certification regarding ownership and control.
233109.  Annual submission regarding economic disadvantage.
233110.  Review of economic disadvantage and withdrawal of assets.
233111.  Hearing on the record.
233112.  Program participant capability.
233113.  Limitations on subcontracting.
233114.  Wholesalers and retailers.
233115.  Reporting by program participants to business opportunity 
          specialists.
233116.  Transfer of ownership or control.
233117.  Assistance for program participants.
233118.  Business plans.
233119.  Denial of further assistance.
233120.  Graduation.
233121.  Termination.
233122.  Evaluation of eligibility.
233123.  Limitation of eligibility to 1 small business concern.
233124.  Limitation on denial of admission into program based on 
          unavailability of specific contract opportunities.
233125.  Certification decision.
233126.  Review of new entrants into the program.
233127.  Program stages.
233128.  Attainment of business activity targets.
233129.  Program participation period.
233130.  Collection of data on program operations.
233131.  Approval of contract options and modifications.
233132.  Orderly and efficient management of program.
233133.  Participation in federally funded programs and projects.
Sec. 233101. 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 1 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 
                3304(a) of title 41; 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. 233102. 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 Federal agency 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. 233103. 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. 233104. 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 
        233105 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. 233105. 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 233107 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 233107 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. 233106. 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. 233107. 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 
        233128 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. 233108. Annual certification regarding ownership and control
  A program participant shall annually certify that the program 
participant meets the requirements of section 231101(15) of this title 
regarding ownership and control.
Sec. 233109. 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 231101 of this title and section 233110 of 
        this title.
Sec. 233110. Review of economic disadvantage and withdrawal of assets
  (a) Economic Disadvantage.--If, on the basis of information provided 
by a program participant under section 233109 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 231101(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 233109 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 233121 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. 233111. 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 
                231101(15) of this title;
                  (B) 1 or more of the owners of a small business 
                concern is not a socially disadvantaged individual 
                under section 231101(17) of this title; or
                  (C) 1 or more of the owners of a small business 
                concern is not a socially and economically 
                disadvantaged individual under section 231101(16);
          (2) graduation under section 233120 of this title;
          (3) termination under section 233121 of this title; and
          (4) denial of a request to issue a waiver under section 
        233116(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. 233112. 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 233104 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 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 of 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. 233113. Limitations on subcontracting
  A program participant shall not be awarded a contract under the 
program unless the program participant agrees to satisfy the 
requirements of section 299107 of this title.
Sec. 233114. Wholesalers and retailers
  (a) In General.--An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to 
submit and have considered its offer for a procurement contract that 
has as its principal purpose the supply of a product to be let under 
this chapter solely because the small business concern is other than 
the manufacturer or processor of the product to be supplied under the 
contract.
  (b) Requirements.--A small business concern referred to in subsection 
(a) is a small business concern 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 6510 of 
        title 41) in the product to be offered the Government; and
          (4) represents that the small business concern 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.
  (c) Limitation.--This section does not apply to a contract that has 
as its principal purpose the acquisition of a service or construction.
Sec. 233115. 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 SBA 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 233121(b) of this 
title.
Sec. 233116. 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; and
                  (iii) the Administrator is requested to waive 
                subsection (a) prior to the actual transfer of 
                ownership or control;
                  (D)(i) due to incapacity or death, none of 1 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. 233117. 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 233118 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. 233118. Business plans
  (a) Submission.--Promptly after certification under section 233125 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 231101 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 1st 
        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 233128 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 233128 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 
                233128 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. 233119. 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. 233120. 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 
        233110(a) of this title, the Administrator determines that the 
        program participant and its disadvantaged owners are no longer 
        economically disadvantaged.
Sec. 233121. 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. 233122. 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 233121 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. 233123. Limitation of eligibility to 1 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 231101(15) of this title shall be permitted to assert such 
eligibility for only 1 small business concern.
  (c) Exception.--An economically disadvantaged Indian tribe may own 
more than 1 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. 233124. 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. 233125. 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. 233126. 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. 233127. 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 205111 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 Innovation and Opportunity Act (29 U.S.C. 
                3101 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 103201(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 shall 
                receive skills training or upgrading under subparagraph 
                (B) at any 1 time.
                  (F) Amount.--Not more than $2,500 shall be made 
                available for any 1 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 1 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 
                        1 year after the program participant's term of 
                        participation.
                  (E) Federal surplus property.--
                          (i) In general.--The Administrator may 
                        transfer technology or surplus property under 
                        this paragraph on a priority basis to a small 
                        business concern located in a disaster area 
                        if--
                                  (I) the small business concern meets 
                                the requirements for such a transfer, 
                                without regard to whether the small 
                                business concern is a program 
                                participant; and
                                  (II) for a small business concern 
                                that is a program participant, on and 
                                after the date on which the President 
                                declares a major disaster, the small 
                                business concern has not received 
                                property under this paragraph on the 
                                basis of the status of the small 
                                business concern as a program 
                                participant.
                          (ii) Terms and conditions.--For any transfer 
                        of property under this subparagraph to a small 
                        business concern, the terms and conditions 
                        shall be the same as a transfer to a program 
                        participant, except that the small business 
                        concern shall agree not to sell or transfer the 
                        property to any entity other than the Federal 
                        Government during the period of the declaration 
                        of the disaster area.
                          (iii) No other transfer.--A small business 
                        concern that receives a transfer of property 
                        under this subparagraph shall not receive any 
                        other transfer of property under this paragraph 
                        during the period of the declaration of the 
                        disaster area.
                          (iv) Violation.--If a small business concern 
                        sells or transfers property in violation of the 
                        agreement described in clause (ii), the 
                        Administrator may initiate proceedings to 
                        prohibit the small business concern from 
                        receiving a transfer of property under this 
                        paragraph, in addition to any other remedy 
                        available to the Administrator.
          (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. 233128. 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 
        5th 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 233111 of this title.
Sec. 233129. Program participation period
  A program participant may receive assistance under the program for a 
total period of not more than 9 years, measured from the date of its 
certification under section 233125 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. 233130. 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. 233131. 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. 233132. 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. 233133. 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.
235101.  Financial assistance for projects providing technical or 
          management assistance.
235102.  Eligible projects.
235103.  Location of service.
Sec. 235101. 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. 235102. 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 205111 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. 235103. 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 G--Procurement Assistance

                    Chapter 241--General Provisions

Sec.
241101.  Definition of executive agency.
241102.  Authority.
241103.  Technical, managerial, and informational aids.
241104.  Inventory of productive facilities.
241105.  Utilization of productive capacity.
241106.  Subcontracting to small business concerns.
241107.  Size certification.
241108.  Responsibility certification.
241109.  Information pertaining to Federal procurement or production.
241110.  Information pertaining to disposal of Federal property.
241111.  Information pertaining to supplies of materials.
241112.  Fair proportions of business for small business concerns.
241113.  Fair and reasonable treatment of small business concerns.
241114.  Information and assistance pertaining to federally aided urban 
          renewal projects.
241115.  Dissemination of information by the Administrator.
241116.  Availability of information from Federal agencies.
241117.  Adjustment of regulations and programs to the needs of small 
          business concerns.
241118.  Outreach programs for disabled veterans, veterans, and 
          reservists.
241119.  Consolidation of contract requirements.
Sec. 241101. Definition of executive agency
  In this division, the term ''executive agency'' has the meaning given 
the term in section 133 of title 41.
Sec. 241102. Authority
  The Administrator shall take an action under this chapter when the 
Administrator determines that the action is necessary.
Sec. 241103. 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 Administrator 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) SBA 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) SBA 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 1 cosponsor in a 
                        marketing area is minimized; and
                  (B) develops an agreement, executed on behalf of the 
                Administrator by an employee of SBA 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 SBA 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) SBA 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 a service corps of retired executives 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 SBA 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 SBA Facilities.--The Administrator shall allow any 
individual or group of persons participating with the Administrator in 
furtherance of this section to use such of SBA'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 SBA;
                  (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. 241104. 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. 241105. 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. 241106. 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. 241107. 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 section 
101103 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. 241108. 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. 241109. 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. 241110. 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. 241111. 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. 241112. 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. 241113. 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. 241114. 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 221103 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. 241115. 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. 241116. 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. 241117. 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. 241118. 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.
Sec. 241119. Consolidation of contract requirements
  (a) Decisions Regarding Consolidation of Contract Requirements.--The 
head of a Federal agency shall ensure that the decisions made by the 
Federal agency regarding consolidation of contract requirements of the 
Federal agency are made with a view to providing small business 
concerns with appropriate opportunities to participate as prime 
contractors and subcontractors in the procurements of the Federal 
agency.
  (b) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--
          (1) In general.--The head of a Federal agency shall not carry 
        out an acquisition strategy that includes a consolidation of 
        contract requirements of the Federal agency with a total value 
        of more than $2,000,000 unless the senior procurement executive 
        or Chief Acquisition Officer for the Federal agency, before 
        carrying out the acquisition strategy--
                  (A) conducts market research;
                  (B) identifies any alternative contracting approaches 
                that would involve a lesser degree of consolidation of 
                contract requirements;
                  (C) makes a written determination that the 
                consolidation of contract requirements is necessary and 
                justified;
                  (D) identifies any negative impact by the acquisition 
                strategy on contracting with small business concerns; 
                and
                  (E) ensures that steps will be taken to include small 
                business concerns in the acquisition strategy.
          (2) Determination that consolidation is necessary and 
        justified.--
                  (A) In general.--A senior procurement executive or 
                Chief Acquisition Officer may determine that an 
                acquisition strategy involving a consolidation of 
                contract requirements is necessary and justified for 
                the purposes of paragraph (1)(C) if the benefits of the 
                acquisition strategy substantially exceed the benefits 
                of each of the possible alternative contracting 
                approaches identified under paragraph (1)(B).
                  (B) Savings in administrative or personnel costs.--
                For purposes of subparagraph (A), savings in 
                administrative or personnel costs alone do not 
                constitute a sufficient justification for a 
                consolidation of contract requirements in a procurement 
                unless the expected total amount of the cost savings, 
                as determined by the senior procurement executive or 
                Chief Acquisition Officer, is expected to be 
                substantial in relation to the total cost of the 
                procurement.
                  (C) Notice.--Not later than 7 days after making a 
                determination that an acquisition strategy involving a 
                consolidation of contract requirements is necessary and 
                justified under subparagraph (A), the senior 
                procurement executive or Chief Acquisition Officer 
                shall publish a notice on a public website that the 
                determination has been made. Any solicitation for a 
                procurement related to the acquisition strategy shall 
                not be published earlier than 7 days after the notice 
                is published. With the publication of the solicitation, 
                the senior procurement executive or Chief Acquisition 
                Officer shall publish a justification for the 
                determination, which shall include the information in 
                subparagraphs (A) through (E) of paragraph (1).
          (3) Benefits to be considered.--The benefits considered for 
        the purposes of paragraphs (1) and (2) may include--
                  (A) cost; and
                  (B) regardless of whether quantifiable in dollar 
                amounts--
                          (i) quality;
                          (ii) acquisition cycle;
                          (iii) terms and conditions; and
                          (iv) any other benefit.

                 Chapter 243--Subcontracting Provisions

Sec.
243101.  Opportunity to participate in performance of contracts.
243102.  Notice of provisions relating to contracts awarded pursuant to 
          the negotiated method of procurement.
243103.  Subcontracting plans.
243104.  Incentives.
243105.  Liquidated damages.
243106.  Payment of subcontractors.
243107.  Subcontracting misrepresentations.
243108.  Material breach.
243109.  Pilot program providing past performance ratings for other 
          small business subcontractors.
243110.  Effect of chapter.
Sec. 243101. 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 101102 of 
                title 57, United States Code.
                  ``(B) Additional term effective with joint issuance 
                of implementing regulations.--Effective on the date on 
                which the Administrator of the Small Business 
                Administration and the Secretary of Veterans Affairs 
                jointly issue implementing regulations described in 
                section 1832(e) of the National Defense Authorization 
                Act for Fiscal Year 2017 (Public Law 114-328, 130 Stat. 
                2660), the term `small business concern owned and 
                controlled by service-disabled veterans' has the 
                meaning given the term in section 101102 of title 57, 
                United States Code.
                  ``(C) 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. 243102. 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. 243103. 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 243101 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 (1), 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 243101 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 243101 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)(A) 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
          (B) assurances at a minimum that the offeror or bidder, and 
        all subcontractors required to maintain subcontracting plans 
        pursuant to this subsection, will--
                  (i) review and approve subcontracting plans submitted 
                by their subcontractors;
                  (ii) monitor subcontractor compliance with their 
                approved subcontracting plans;
                  (iii) ensure that subcontracting reports are 
                submitted by their subcontractors when required;
                  (iv) acknowledge receipt of their subcontractors' 
                reports;
                  (v) compare the performance of their subcontractors 
                to subcontracting plans and goals; and
                  (vi) discuss performance with subcontractors when 
                necessary to ensure that their subcontractors make a 
                good faith effort to comply with their subcontracting 
                plans;
          (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;
          (7) a recitation of the types of records that the successful 
        offeror or bidder will maintain to demonstrate procedures that 
        have been adopted to ensure that subcontractors at any tier 
        comply with the requirements and goals set forth in the plan 
        established in accordance with paragraph (4)(B), including--
                  (A) 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; and
          (8) a representation that the offeror or bidder will--
                  (A) make a good faith effort to acquire articles, 
                equipment, supplies, services, or materials or obtain 
                the performance of construction work from the small 
                business concerns used in preparing and submitting to 
                the contracting agency the bid or proposal, in the same 
                amount and quality used in preparing and submitting the 
                bid or proposal; and
                  (B) provide to the contracting officer a written 
                explanation if the offeror or bidder fails to acquire 
                articles, equipment, supplies, services, or materials 
                or obtain the performance of construction work as 
                described in subparagraph (A).
  (e) Notification of Intention To Identify Small Business Concern as 
Potential Subcontractor.--
          (1) Definition of covered contract.--In this subsection, the 
        term ``covered contract'' means a contract relating to which a 
        prime contractor is required to develop a subcontracting plan 
        under this section.
          (2) Notification.--An offeror for a covered contract that 
        intends to identify a small business concern as a potential 
        subcontractor in a bid or proposal for the contract, or in a 
        plan submitted under this section in connection with the 
        covered contract, shall notify the small business concern 
        before making the identification.
  (f) 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.
  (g) 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.
  (h) 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 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 as a 
        supplement to evaluation by the contracting agency--
                  (A) on a contract-by-contract basis; or
                  (B) in the case of a contractor having multiple 
                contracts, on an aggregate basis.
  (i) Collection, Reporting, and Review of Data.--The head of a 
contracting agency shall ensure that--
          (1) the contracting agency collects and reports data on the 
        extent to which contractors of the agency meet the goals and 
        objectives set forth in subcontracting plans submitted under 
        this section; and
          (2) the contracting agency periodically reviews data 
        collected and reported under paragraph (1) for the purpose of 
        ensuring that contractors of the agency comply in good faith 
        with the requirements of this section and subcontracting plans 
        submitted by the contractors under this section.
  (j) Fraudulent or Bad Faith Activity Reporting Mechanism.--The 
Administrator shall establish a reporting mechanism that allows a 
subcontractor or potential subcontractor to report fraudulent activity 
or bad faith by a contractor with respect to a subcontracting plan 
submitted under this section.
  (k) Credit for Certain Subcontractors.--
          (1) In general.--For purposes of determining whether a prime 
        contractor has attained the percentage goals specified in 
        subsection (d)--
                  (A) if the subcontracting goals pertain only to a 
                single contract with the executive agency, the prime 
                contractor shall receive credit for small business 
                concerns performing as subcontractors at any tier 
                pursuant to the subcontracting plans required under 
                subsection (d)(4)(B) in an amount equal to the dollar 
                value of work awarded to those small business concerns; 
                and
                  (B) if the subcontracting goals pertain to more than 
                1 contract with 1 or more executive agencies, or to 1 
                contract with more than 1 executive agency, the prime 
                contractor may count only first tier subcontractors 
                that are small business concerns.
          (2) Effect of subsection.--Nothing in this subsection 
        abrogates--
                  (A) the responsibility of a prime contractor to make 
                a good-faith effort to achieve the first tier small 
                business subcontracting goals negotiated under 
                subsection (d)(1); or
                  (B) the requirement for subcontractors with further 
                opportunities for subcontracting to make a good-faith 
                effort to achieve the goals established under 
                subsection (d)(4)(B).
  (l) Electronic Subcontracting Reporting System.--The Administrator 
shall take such actions as are necessary to ensure that the electronic 
subcontracting reporting system established by the Administrator to 
carry out the requirement of subsection (d)(5) is able to identify 
entities that fail to submit required reports.
Sec. 243104. 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. 243105. Liquidated damages
  (a) Required Clause.--
          (1) In general.--A contract subject to subsection (b) or (c) 
        of section 243103 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.
  (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 chapter 71 of title 
41.
Sec. 243106. Payment of subcontractors
  (a) Definition of Covered Contract.--In this section, the term 
``covered contract'' means a contract relating to which a prime 
contractor is required to develop a subcontracting plan under section 
243103 of this title.
  (b) Notice.--
          (1) In general.--A prime contractor for a covered contract 
        shall notify in writing the contracting officer for the covered 
        contract if--
                  (A) the prime contractor pays a reduced price to a 
                subcontractor for a good or service on completion of 
                the responsibilities of the subcontractor; or
                  (B) the payment to a subcontractor is more than 90 
                days past due for a good or service provided for the 
                covered contract for which the Federal agency has paid 
                the prime contractor.
          (2) Contents.--A prime contractor shall include in a notice 
        under paragraph (1) the reason for the reduction in a payment 
        to or failure to pay a subcontractor.
  (c) Performance Evaluation.--In evaluating the performance of a prime 
contractor, the contracting officer for a covered contract shall take 
into consideration an unjustified failure by the prime contractor to 
make a full or timely payment to a subcontractor.
  (d) Control of Funds.--If the contracting officer for a covered 
contract determines that a prime contractor has a history of 
unjustified failures to make full and timely payment to 1 or more 
subcontractors, the contracting officer shall record the identity of 
the contractor in accordance with the regulations promulgated under 
subsection (e).
  (e) Regulations.--The Federal Acquisition Regulatory Council shall 
amend the Federal Acquisition Regulation to--
          (1) describe the circumstances under which a contractor may 
        be determined to have a history of unjustified failures to make 
        full and timely payment to 1 or more subcontractors;
          (2) establish a process for contracting officers to record 
        the identity of a contractor described in paragraph (1); and
          (3) require the identity of a contractor described in 
        paragraph (1) to be incorporated in, and made publicly 
        available through, the Federal Awardee Performance and 
        Integrity Information System, or any successor to the System.
Sec. 243107. Subcontracting misrepresentations
  The Administrator, in consultation with the Administrator for Federal 
Procurement Policy, shall promulgate regulations relating to, and the 
Federal Acquisition Regulatory Council shall amend the Federal 
Acquisition Regulation to establish a policy on, subcontracting 
compliance relating to small business concerns, including--
          (1) assignment of compliance responsibilities between 
        contracting offices, small business offices, and program 
        offices; and
          (2) periodic oversight and review activities.
Sec. 243108. Material breach
  The failure of a contractor or subcontractor to comply in good faith 
with--
          (1) the clause required under section 243101 of this title;
          (2) a subcontracting plan required of the contractor under 
        section 243103 of this title to be included in its contract or 
        subcontract; or
          (3) assurances provided under section 243103(d)(5)(A) of this 
        title,
shall be a material breach of the contract or subcontract and may be 
considered in any past performance evaluation of the contactor.
Sec. 243109. Pilot program providing past performance ratings for other 
                    small business subcontractors
  (a) Definition of Appropriate Official.--In this section, the term 
``appropriate official'' means--
          (1) a commercial market representative;
          (2) another individual designated by the senior official 
        appointed by the Administrator with responsibilities under 
        divisions F, G, and H of subtitle II of this title; or
          (3) the Office of Small and Disadvantaged Business 
        Utilization of a Federal agency, if the head of the Federal 
        agency and the Administrator agree.
  (b) Establishment.--The Administrator shall establish a pilot program 
for a small business concern without a past performance rating as a 
prime contractor performing as a first tier subcontractor for a covered 
contract (as defined in section 243106(a) of this title) to request a 
past performance rating in the system used by the Federal Government to 
monitor or record contractor past performance.
  (c) Application.--A small business concern described in subsection 
(b) shall submit an application to the appropriate official for a past 
performance rating no later than 270 days after the small business 
concern completed the work for which it seeks a past performance rating 
or 180 days after the prime contractor completes work on the covered 
contract, whichever is earlier. Such application shall include written 
evidence of the past performance factors for which the small business 
concern seeks a rating and a suggested rating.
  (d) Determination.--
          (1) In general.--The appropriate official shall submit the 
        application from the small business concern to the Office of 
        Small and Disadvantaged Business Utilization for the covered 
        contract and to the prime contractor for review. The Office of 
        Small and Disadvantaged Business Utilization and the prime 
        contractor shall, not later than 30 days after receipt of the 
        application, submit to the appropriate official a response 
        regarding the application.
          (2) Agreement on rating.--If the Office of Small and 
        Disadvantaged Business Utilization and the prime contractor 
        agree on a past performance rating, or if either the Office of 
        Small and Disadvantaged Business Utilization or the prime 
        contractor fail to respond and the responding person agrees 
        with the rating of the applicant small business concern, the 
        appropriate official shall enter the agreed-upon past 
        performance rating in the system described in subsection (b).
          (3) Disagreement on rating.--If the Office of Small and 
        Disadvantaged Business Utilization and the prime contractor 
        fail to respond within 30 days or if they disagree about the 
        rating, or if either the Office of Small and Disadvantaged 
        Business Utilization or the prime contractor fail to respond 
        and the responding person disagrees with the rating of the 
        applicant small business concern, the Office of Small and 
        Disadvantaged Business Utilization or the prime contractor 
        shall submit a notice contesting the application to the 
        appropriate official. The appropriate official shall follow the 
        requirements of subsection (e).
  (e) Procedure for Rating.--Not later than 14 calendar days after 
receipt of a notice under subsection (d)(3), the appropriate official 
shall submit such notice to the applicant small business concern. Such 
concern may submit comments, rebuttals, or additional information 
relating to the past performance of such concern not later than 14 
calendar days after receipt of such notice. The appropriate official 
shall enter into the system described in subsection (b) a rating that 
is neither favorable nor unfavorable along with the initial application 
from such concern, any responses of the Office of Small and 
Disadvantaged Business Utilization and the prime contractor, and any 
additional information provided by such concern. A copy of the 
information submitted shall be provided to the contracting officer (or 
designee of such officer) for the covered contract.
  (f) Use of Information.--A small business subcontractor may use a 
past performance rating given under this section to establish its past 
performance for a prime contract.
  (g) Duration.--The pilot program established under this section shall 
terminate 3 years after the date on which the first applicant small 
business concern receives a past performance rating for performance as 
a first tier subcontractor.
  (h) Report.--The Comptroller General of the United States shall begin 
an assessment of the pilot program 1 year after the establishment of 
such program. Not later than 6 months after beginning such assessment, 
the Comptroller General shall submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives, which shall include--
          (1) the number of small business concerns that have received 
        past performance ratings under the pilot program;
          (2) the number of applications in which the contracting 
        officer (or designee) or the prime contractor contested the 
        application of the small business concern;
          (3) any suggestions or recommendations the Comptroller 
        General or the small business concerns participating in the 
        program have to address disputes between the small business 
        concern, the contracting officer (or designee), and the prime 
        contractor on past performance ratings;
          (4) the number of small business concerns awarded prime 
        contracts after receiving a past performance rating under this 
        pilot program; and
          (5) any suggestions or recommendation the Comptroller General 
        has to improve the operation of the pilot program.
Sec. 243110. 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.
245101.  Notices of intention to solicit certain bids or proposals or to 
          place certain orders.
245102.  Notices of subcontracting opportunity.
245103.  Limited applicability to Tennessee Valley Authority.
Sec. 245101. Notices of intention to solicit certain bids or proposals 
                    or to place certain orders
  (a) In General.--Except as provided in subsection (e)--
          (1) an executive agency that intends 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.--A notice of solicitation required to be 
published under subsection (a) may be published by an electronic means 
that meets the accessibility requirements under section 1708(d) of 
title 41.
  (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 1 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.
  (f) Availability of Complete Solicitation Package.--
          (1) 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 this section.
          (2) 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 paragraph (1).
Sec. 245102. Notices of subcontracting opportunity
  (a) In General.--A notice of subcontracting opportunity may be 
submitted for publication on the appropriate Federal website (as 
determined by the Administrator) by--
          (1) a contractor that is a business concern that is awarded a 
        contract by an executive agency subject to section 245101(a)(3) 
        of this title section; or
          (2) a business concern that is a subcontractor at any tier or 
        supplier at any tier to a contractor described in paragraph (1) 
        that has a subcontracting opportunity in excess of $10,000.
  (b) Contents.--A notice of a subcontracting opportunity shall 
include--
          (1) a description of the business opportunity that is 
        comparable to the description specified in subparagraphs (A), 
        (B), (C), and (D) of section 245101(d)(1) of this title; and
          (2) the deadline for receipt of offers.
  (c) Uniform implementation.--The Federal Acquisition Regulation shall 
provide for uniform implementation of this section.
Sec. 245103. 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.
247101.  Limitation on use of noncompetitive procedures.
247102.  Limited applicability to Tennessee Valley Authority.
Sec. 247101. Limitation on use of noncompetitive procedures
  (a) In General.--An executive agency may not award a contract using 
noncompetitive 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 1702(c) of title 
                41; and
          (2) all other requirements applicable to the use of 
        noncompetitive procedures under section 3304 of title 41 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 
3304(e)(4) of title 41 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 3304(e)(1) of title 41 or section 2304(f)(1) of title 10, as 
appropriate.
Sec. 247102. 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.

               Division H--Contract Reservation Programs

                    Chapter 251--General Provisions

Sec.
251101.  Awards of contracts to small business concerns.
251102.  Placement of contracts by procuring agency.
251103.  Disabled individuals.
251104.  Priorities and preferences.
251105.  Procurement strategies; contract bundling.
251106.  Goals for participation by small business concerns in 
          procurement contracts.
251107.  No effect on certain small business setasides.
251108.  Mandatory contract reservation.
251109.  Offices of Small and Disadvantaged Business Utilization.
251110.  Procurement center representatives.
251111.  Department of Defense, Coast Guard, and National Aeronautics 
          and Space Administration contract goals.
251112.  Actions by procurement center representatives to ensure 
          compliance.
251113.  Limitations on subcontracting.
251114.  Multiple award contracts.
251115.  Data quality improvement plan.
251116.  Post-award compliance resources.
251117.  Regulatory changes and training materials.
Sec. 251101. Awards of contracts to small business concerns
  (a) Small Business Procurements.--
          (1) In general.--For purposes of this subtitle and subtitle I 
        of this title, small business concerns shall receive any award 
        or contract if such award or contract is, in the determination 
        of the Administrator and the contracting agency, in the 
        interest of--
                  (A) maintaining or mobilizing the full productive 
                capacity of the United States;
                  (B) war or national defense programs; or
                  (C) assuring that a fair proportion of the total 
                purchase and contracts for goods and services of the 
                Government in each industry category (as defined under 
                paragraph (2)) are awarded to small business concerns.
          (2) Definition of industry category.--
                  (A) In general.--In this subsection, the term 
                ``industry category'' means a discrete group of similar 
                goods and services, as determined by the Administrator 
                in accordance with the North American Industry 
                Classification System codes used to establish small 
                business size standards, except that the Administrator 
                shall limit an industry category to a greater extent 
                than provided under the North American Industry 
                Classification System codes if the Administrator 
                receives evidence indicating that further segmentation 
                of the industry category is warranted--
                          (i) due to special capital equipment needs;
                          (ii) due to special labor requirements;
                          (iii) due to special geographic requirements, 
                        except as provided in subparagraph (B);
                          (iv) due to unique Federal buying patterns or 
                        requirements; or
                          (v) to recognize a new industry.
                  (B) Exception for geographic requirements.--The 
                Administrator may not further segment an industry 
                category based on geographic requirements unless--
                          (i) the Government typically designates the 
                        geographic area where work for contracts for 
                        goods or services is to be performed;
                          (ii) Government purchases comprise the major 
                        portion of the entire domestic market for such 
                        goods or services; and
                          (iii) it is unreasonable to expect 
                        competition from business concerns located 
                        outside of the general geographic area due to 
                        the fixed location of facilities, high 
                        mobilization costs, or similar economic 
                        factors.
          (3) Determinations with respect to awards or contracts.--
        Determinations made pursuant to paragraph (1) may be made for 
        individual awards or contracts, any part of an award or 
        contract or task order, or for classes of awards or contracts 
        or task orders.
          (4) Increasing prime contracting opportunities for small 
        business concerns.--
                  (A) Description of covered proposed procurements.--
                The requirements of this paragraph shall apply to a 
                proposed procurement that includes in its statement of 
                work goods or services currently being supplied or 
                performed by a small business concern and, as 
                determined by the Administrator--
                          (i) is in a quantity or of an estimated 
                        dollar value which makes the participation of a 
                        small business concern as a prime contractor 
                        unlikely;
                          (ii) in the case of a proposed procurement 
                        for construction, seeks to bundle or 
                        consolidate discrete construction projects; or
                          (iii) is a solicitation that involves an 
                        unnecessary or unjustified bundling of contract 
                        requirements.
                  (B) Notice to procurement center representatives.--
                With respect to proposed procurements described in 
                subparagraph (A), at least 30 days before issuing a 
                solicitation and concurrent with other processing steps 
                required before issuing the solicitation, the 
                contracting agency shall provide a copy of the proposed 
                procurement to the procurement center representative of 
                the contracting agency (as described in section 251110 
                of this title) along with a statement explaining--
                          (i) why the proposed procurement cannot be 
                        divided into reasonably small lots (not less 
                        than economic production runs) to permit offers 
                        on quantities less than the total requirement;
                          (ii) why delivery schedules cannot be 
                        established on a realistic basis that will 
                        encourage the participation of small business 
                        concerns in a manner consistent with the actual 
                        requirements of the Government;
                          (iii) why the proposed procurement cannot be 
                        offered to increase the likelihood of the 
                        participation of small business concerns;
                          (iv) in the case of a proposed procurement 
                        for construction, why the proposed procurement 
                        cannot be offered as separate discrete 
                        projects; or
                          (v) why the contracting agency has determined 
                        that the bundling of contract requirements is 
                        necessary and justified.
                  (C) Alternatives to increase prime contracting 
                opportunities for small business concerns.--If the 
                procurement center representative believes that the 
                proposed procurement will make the participation of 
                small business concerns as prime contractors unlikely, 
                the procurement center representative, within 15 days 
                after receiving the statement described in subparagraph 
                (B), shall recommend to the contracting agency 
                alternative procurement methods for increasing prime 
                contracting opportunities for small business concerns.
                  (D) Failure to agree on an alternative procurement 
                method.--If the procurement center representative and 
                the contracting agency fail to agree on an alternative 
                procurement method, the Administrator shall submit the 
                matter to the head of the appropriate department or 
                agency for a determination.
          (5) Contracts for sale of government property.--With respect 
        to a contract for the sale of Government property, small 
        business concerns shall receive any such contract if, in the 
        determination of the Administrator and the disposal agency, the 
        award of such contract is in the interest of assuring that a 
        fair proportion of the total sales of Government property be 
        made to small business concerns.
          (6) Sale of electrical power or other property.--Nothing in 
        this subsection shall be construed to change any preferences or 
        priorities established by law with respect to the sale of 
        electrical power or other property by the Federal Government.
          (7) Costs exceeding fair market price.--A contract may not be 
        awarded under this subsection if the cost of the contract to 
        the awarding agency exceeds a fair market price.
  (b) 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.
  (c) Wholesalers and Retailers.--
          (1) In general.--An otherwise responsible small business 
        concern that is described in paragraph (2) shall not be denied 
        the opportunity to submit and have considered its offer for a 
        procurement contract that has as its principal purpose the 
        supply of a product to be let under this chapter solely because 
        the small business concern is other than the manufacturer or 
        processor of the product to be supplied under the contract.
          (2) Requirements.--A small business concern referred to in 
        paragraph (1) is a small business concern that--
                  (A) is primarily engaged in wholesale or retail 
                trade;
                  (B) 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;
                  (C) is a regular dealer (as defined under section 
                6510 of title 41) in the product to be offered the 
                Government; and
                  (D) represents that the small business concern will 
                supply the product of a domestic small business 
                manufacturer or processor, unless a waiver of this 
                subparagraph is granted--
                          (i) 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
                          (ii) 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.
          (3) Limitation.--This subsection does not apply to a contract 
        that has as its principal purpose the acquisition of a service 
        or construction.
  (d) Forecast of Contract Opportunities.--
          (1) 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--
                  (A) prepare a forecast of expected contract 
                opportunities or classes of contract opportunities for 
                the next and succeeding fiscal years that small 
                business concerns are capable of performing; and
                  (B) periodically revise the forecast during the 
                following year.
          (2) Contents.--To the extent that the information is 
        available, a forecast under paragraph (1) shall specify--
                  (A) the approximate number of individual contract 
                opportunities (and the number of opportunities within a 
                class);
                  (B) the approximate dollar value, or range of dollar 
                values, for each contract opportunity or class of 
                contract opportunities;
                  (C) the anticipated time (by fiscal year quarter) for 
                the issuance of a procurement request; and
                  (D) the activity responsible for the award and 
                administration of the contract.
          (3) Submission of forecasts.--Not later than 10 days after 
        completion of a forecast under paragraph (1), the head of the 
        executive agency that prepared the forecast shall submit the 
        forecast to--
                  (A) the Director of Small and Disadvantaged Business 
                Utilization of the executive agency; and
                  (B) the Administrator.
          (4) Scope of information reported.--A forecast submitted 
        under paragraph (3) may be limited to classes of items and 
        services for which there are substantial annual purchases.
          (5) Availability of forecasts.--A forecast submitted under 
        paragraph (3) shall be available to small business concerns.
Sec. 251102. 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 321102 of this title, the 
contracting procurement agency shall, to the extent practicable, place 
contracts so as to allow more than 1 small business concern to perform 
the work.
Sec. 251103. 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 section 8502 of title 41.
  (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 8503 of title 
        41.
  (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 1 or more 
contracts to such a public or private organization for the disabled 
under this section may use multiyear contracts, if appropriate.
Sec. 251104. Priorities and preferences
  (a) Priority for Areas of Concentrated Unemployment or 
Underemployment and for Labor Surplus Areas.--
          (1) 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--
                  (A) an area of concentrated unemployment or 
                underemployment; or
                  (B) a labor surplus area.
          (2) Setasides.--
                  (A) 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.
                  (B) Determination of labor surplus areas.--
                          (i) 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.
                          (ii) 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.
                          (iii) Determination by secretary of labor.--A 
                        determination of a labor surplus area shall be 
                        made by the Secretary of Labor.
  (b) Contracting Preference for Small Business Concerns in a Major 
Disaster Area.--
          (1) Contracting preference.--A Federal agency shall provide a 
        contracting preference for a small business concern located in 
        a disaster area if the small business concern will perform the 
        work required under the contract in the disaster area.
          (2) Credit for meeting contracting goals.--If a Federal 
        agency awards a contract to a small business concern under the 
        circumstances described in paragraph (1), the value of the 
        contract shall be doubled for purposes of determining 
        compliance with the goals for procurement contracts under 
        section 251106(a) of this title.
Sec. 251105. Procurement strategies; contract bundling
  (a) In General.--To the maximum extent practicable, procurement 
strategies used by a Federal agency having contracting authority 
shall--
          (1) facilitate the maximum participation of small business 
        concerns as prime contractors, subcontractors, and suppliers;
          (2) provide opportunities for the participation of small 
        business concerns during acquisition planning processes and in 
        acquisition plans; and
          (3) invite the participation of the appropriate Director of 
        Small and Disadvantaged Business Utilization in acquisition 
        planning processes and provide the Director access to 
        acquisition plans.
  (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.--
          (1) In general.--If the head of a contracting agency 
        determines that an acquisition plan for a procurement involves 
        a substantial bundling of contract requirements, the head of a 
        contracting agency shall publish a notice on a public website 
        that the determination has been made not later than 7 days 
        after making the determination. Any solicitation for a 
        procurement related to the acquisition plan shall not be 
        published earlier than 7 days after the notice is published.
          (2) Justification.--
                  (A) Publication.--With the publication of the 
                solicitation, the head of a contracting agency shall 
                publish a justification for the determination.
                  (B) Contents.--A justification published under 
                subparagraph (A) shall include--
                          (i) a description of the specific benefits 
                        anticipated to be derived from the bundling of 
                        contract requirements and a determination that 
                        the benefits justify the bundling;
                          (ii) an identification of any alternative 
                        contracting approaches that would involve a 
                        lesser degree of bundling of contract 
                        requirements; and
                          (iii) an assessment of--
                                  (I) the specific impediments to 
                                participation by small business 
                                concerns as prime contractors that 
                                result from the bundling of contract 
                                requirements; and
                                  (II) the specific actions designed to 
                                maximize participation of small 
                                business concerns as subcontractors 
                                (including suppliers) at various tiers 
                                under the contract or contracts that 
                                are awarded to meet the requirements.
  (d) Contract Teaming.--
          (1) In general.--In the case of a solicitation of offers for 
        a bundled or consolidated contract that is issued by the head 
        of a Federal agency, a small business concern that provides for 
        use of a particular team of subcontractors or a joint venture 
        of small business concerns may submit an offer for the 
        performance of the contract.
          (2) Evaluation of offers.--
                  (A) Manner of evaluation.--The head of the Federal 
                agency shall evaluate an offer described in paragraph 
                (1) in the same manner as other offers, with due 
                consideration to the capabilities of all of the 
                proposed subcontractors or members of the joint venture 
                as provided in subparagraphs (B) and (C).
                  (B) Teams.--When evaluating an offer of a small 
                business prime contractor that includes a proposed team 
                of small business subcontractors, the head of the 
                agency shall consider the capabilities and past 
                performance of each 1st tier subcontractor that is part 
                of the team as the capabilities and past performance of 
                the small business prime contractor.
                  (C) Joint ventures.--When evaluating an offer of a 
                joint venture of small business concerns, if the joint 
                venture does not demonstrate sufficient capabilities or 
                past performance to be considered for award of a 
                contract opportunity, the head of the Federal agency 
                shall consider the capabilities and past performance of 
                each member of the joint venture as the capabilities 
                and past performance of the joint venture.
          (3) Status as a small business concern.--Participation of a 
        small business concern in a team or a joint venture under this 
        subsection shall not affect the status of that concern as a 
        small business concern for any other purpose.
  (e) Access to Data.--
          (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 
                107106 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 
                107106 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.
  (f) Bundling Accountability Measures.--
          (1) Teaming and joint venture requirements.--
                  (A) In general.--A Federal agency shall include in 
                each solicitation for a multiple award contract above 
                the substantial bundling threshold of the Federal 
                agency a provision soliciting bids from any responsible 
                source, including responsible small business concerns 
                and teams or joint ventures of small business concerns.
                  (B) Teams.--When evaluating an offer of a small 
                business prime contractor that includes a proposed team 
                of small business subcontractors for any multiple award 
                contract above the substantial bundling threshold of 
                the Federal agency, the head of the Federal agency 
                shall consider the capabilities and past performance of 
                each 1st tier subcontractor that is part of the team as 
                the capabilities and past performance of the small 
                business prime contractor.
                  (C) Joint ventures.--When evaluating an offer of a 
                joint venture of small business concerns for any 
                multiple award contract above the substantial bundling 
                threshold of the Federal agency, if the joint venture 
                does not demonstrate sufficient capabilities or past 
                performance to be considered for award of a contract 
                opportunity, the head of the Federal agency shall 
                consider the capabilities and past performance of each 
                member of the joint venture as the capabilities and 
                past performance of the joint venture.
          (2) Policies on reduction of contract bundling.--
                  (A) In general.--The Federal Acquisition Regulatory 
                Council shall amend the Federal Acquisition Regulation 
                to--
                          (i) establish a Governmentwide policy 
                        regarding contract bundling, including 
                        regarding the solicitation of teaming and joint 
                        ventures under paragraph (1); and
                          (ii) require that the policy established 
                        under clause (i) be published on the website of 
                        each Federal agency.
                  (B) Rationale for contract bundling.--Not later than 
                30 days after the date on which the head of a Federal 
                agency submits data certifications to the Administrator 
                for Federal Procurement Policy, the head of the Federal 
                agency shall publish on the website of the Federal 
                agency a list and rationale for any bundled contract 
                for which the Federal agency solicited bids or that was 
                awarded by the Federal agency.
Sec. 251106.  Goals for participation by small business concerns in 
                    procurement contracts
  (a) Governmentwide Goals.--
          (1) In general.--The President shall annually establish 
        separate Governmentwide goals for procurement contracts awarded 
        to each of the following categories of small business concern:
                  (A) Small business concerns.
                  (B) Qualified HUBZone small business concerns.
                  (C) Small business concerns owned and controlled by 
                service-disabled veterans.
                  (D) Small business concerns owned and controlled by 
                socially and economically disadvantaged individuals.
                  (E) Small business concerns owned and controlled by 
                women.
          (2) Overall goal.--
                  (A) In general.--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.
                  (B) Participation.--In meeting the goal under 
                subparagraph (A), the Government shall ensure the 
                participation of small business concerns from a wide 
                variety of industries and from a broad spectrum of 
                small business concerns within each industry.
          (3) Goals for specific categories 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 and subcontract 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.--A 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 for 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.
                  (C) Scorecard program for evaluating federal agency 
                compliance with small business contracting goals.--
                          (i) Definitions.--In this subparagraph:
                                  (I) Federal agency scorecard.--The 
                                term ``Federal agency scorecard'' means 
                                the scorecard developed by the 
                                Administrator under clause (ii).
                                  (II) Scorecard.--The term 
                                ``scorecard'' means a summary using a 
                                rating system to evaluate a Federal 
                                agency's efforts to meet goals 
                                established under subparagraph (A) 
                                that--
                                          (aa) includes the measures 
                                        described in clause (iii); and
                                          (bb) assigns a score to each 
                                        Federal agency evaluated.
                          (ii) Federal agency scorecard.--In 
                        consultation with Federal agencies, the 
                        Administrator shall--
                                  (I) develop a methodology for 
                                calculating a score to be used to 
                                evaluate the compliance of each Federal 
                                agency with meeting the goals 
                                established under subparagraph (A) 
                                based on each such goal; and
                                  (II) develop a Federal agency 
                                scorecard based on that methodology.
                          (iii) Use of federal agency scorecard.--The 
                        Administrator shall establish and carry out a 
                        program to use the Federal agency scorecard to 
                        evaluate whether each Federal agency is 
                        creating the maximum practicable opportunities 
                        for the award of prime contracts and 
                        subcontracts 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) by assigning a score to each Federal 
                        agency for the previous fiscal year.
                          (iv) Contents of scorecard.--The Federal 
                        agency scorecard shall include, for each 
                        Federal agency, the following information:
                                  (I) A determination whether the 
                                Federal agency met each of the prime 
                                contract goals established under 
                                subparagraph (A) with respect 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).
                                  (II) A determination whether the 
                                Federal agency met each of the 
                                subcontract goals established under 
                                this chapter with respect 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).
                                  (III) The number of 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) awarded prime contracts in 
                                each North American Industry 
                                Classification System code during the 
                                fiscal year and a comparison to the 
                                number of awarded contracts during the 
                                prior fiscal year, if available.
                                  (IV) The number of 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) awarded subcontracts in each 
                                North American Industry Classification 
                                System code during the fiscal year and 
                                a comparison to the number of awarded 
                                subcontracts during the prior fiscal 
                                year, if available.
                                  (V) Any other factors that the 
                                Administrator considers to be important 
                                to achieve the maximum practicable 
                                utilization of 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)
                          (v) Weighted factors.--In using the Federal 
                        agency scorecard to evaluate and assign a score 
                        to a Federal agency, the Administrator shall 
                        base--
                                  (I) 50 percent of the score on the 
                                dollar value of prime contracts 
                                described in clause (iv)(I); and
                                  (II) 50 percent of the score on the 
                                information provided in subclauses (II) 
                                through (V) of clause (iv), weighted in 
                                a manner determined by the 
                                Administrator to encourage the maximum 
                                practicable opportunity for the award 
                                of prime contracts and subcontracts to 
                                small business concerns, 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).
                          (vi) Inclusion in report.--The Federal agency 
                        scorecard used by the Administrator under this 
                        subsection shall be submitted to the President 
                        and Congress with the report submitted under 
                        section 107108(b) of this title.
          (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 head of each Federal agency shall, after 
        consultation with the Administrator, 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 agency. The goals shall separately 
        address prime contract awards and subcontract awards for each 
        category of small business covered.
          (2) Realistic reflection of potential.--Goals established 
        under this section shall be jointly established by the 
        Administration and the head of each Federal agency and shall 
        realistically reflect the potential of 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 perform procurement contracts of 
        the agency and to perform subcontracts under those contracts. 
        Contracts excluded from review by procurement center 
        representatives pursuant to section 251110(j)(2) of this title 
        shall not be considered when establishing the goals.
          (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.--After establishing goals under this 
                subsection for a fiscal year, the head of a Federal 
                agency shall develop a plan for achieving the goals at 
                both the prime contract level and the subcontract 
                level.
                  (B) Responsibilities.--A plan under subparagraph (A) 
                shall apportion responsibilities among the Federal 
                agency's acquisition executives and officials.
                  (C) Participation from each industry category.--In 
                establishing goals under this subsection, the head of a 
                Federal agency shall make a consistent effort to 
                annually expand participation by small business 
                concerns from each industry category in procurement 
                contracts and subcontracts of the Federal 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.
                  (D) Considerations.--The head of a Federal agency, in 
                attempting to attain participation under subparagraph 
                (A), 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.
                  (E) Communication by procuring employees and program 
                managers of importance of achieving small business 
                goals.--
                          (i) In general.--A procurement employee or 
                        program manager described in clause (ii) shall 
                        communicate to the subordinates of the 
                        procurement employee or program manager the 
                        importance of achieving small business goals 
                        established under subparagraph (A).
                          (ii) Procurement employees and program 
                        managers.--A procurement employee or program 
                        manager referred to in clause (i) is a senior 
                        procurement executive, senior program manager, 
                        or Director of Small and Disadvantaged Business 
                        Utilization of a Federal agency having 
                        contracting authority.
                  (F) Responsibility for achieving small business 
                goals.--
                          (i) Definition of responsible for 
                        acquisition.--In this subparagraph, the term 
                        ``responsible for acquisition'', with respect 
                        to a member of the senior executive service or 
                        other senior official, refers to a member of 
                        the senior executive service or other senior 
                        official who--
                                  (I) acquires services or supplies;
                                  (II) directs Federal agency 
                                organizations to acquire services or 
                                supplies; or
                                  (III) oversees acquisition officials, 
                                including program managers, contracting 
                                officers, and other acquisition 
                                workforce personnel responsible for 
                                formulating and approving acquisition 
                                strategies and plans.
                          (ii) Steps by federal agency heads to ensure 
                        that members of the senior executive service 
                        responsible for acquisition, other senior 
                        officials responsible for acquisition, and 
                        other members of the senior executive service 
                        assume responsibility.--The head of a Federal 
                        agency shall take steps to ensure that members 
                        of the senior executive service (as defined 
                        under section 3396(a) of title 5) responsible 
                        for acquisition, other senior officials 
                        responsible for acquisition, and other members 
                        of the senior executive service, as 
                        appropriate, assume responsibility for the 
                        Federal agency's success in achieving each of 
                        the small business prime contracting and 
                        subcontracting goals and percentages by--
                                  (I) promoting responsiveness to small 
                                business concerns;
                                  (II) communicating the importance of 
                                achieving the Federal agency's small 
                                business contracting goals; and
                                  (III) encouraging awareness of, 
                                outreach toward, and support of small 
                                business concerns.
  (c) Contractors Sponsored by Department of Energy.--Subcontracts that 
are awarded to 1st tier subcontractors by management and operating 
contractors sponsored by the Department of Energy to qualified HUBZone 
small business concerns, small businesses 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 shall be considered toward the Governmentwide goals 
under subsection (a) and Federal agency goals under subsection (b).
  (d) Goaling Guideline.--The Administrator shall review and revise the 
Goaling Guidelines for the Small Business Preference Programs for Prime 
and Subcontract Federal Procurement Goals and Achievements to the 
extent necessary to ensure that--
          (1) Federal agency subcontracting goals are established on 
        the basis of realistically achievable improvements to levels of 
        subcontracting rather than on the basis of an average of 
        previous years' subcontracting performance;
          (2) Federal agency contracting and subcontracting goals are 
        established in a manner that does not exclude categories of 
        contracts on the basis of--
                  (A) the type of goods or services for which the 
                Federal agency contracts; or
                  (B) in the case of a contract subject to competitive 
                procedures under chapter 33 of title 41--
                          (i) whether or not funding for the contract 
                        is made directly available to the Federal 
                        agency by an appropriations Act or is made 
                        available by reimbursement from another agency 
                        or account; or
                          (ii) whether or not a contract is subject to 
                        the Federal Acquisition Regulation; and
          (3) if a Federal agency contracting goal or subcontracting 
        goal is established at a level lower than the Governmentwide 
        goal for small business concerns or the relevant category of 
        small business concern, the Administrator documents the basis 
        for the decision to establish the lower goal.
Sec. 251107. 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. 251108. 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) the business development program;
          (2) section 2323 of title 10; or
          (3) section 251106(a)(5) of this title.
Sec. 251109. 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 of the 
        Federal agency.
          (2) Qualifications.--The Director shall be an individual with 
        experience serving in any combination of the following roles:
                  (A) Program manager, deputy program manager, or 
                assistant program manager for Federal acquisition 
                program.
                  (B) Chief engineer, systems engineer, assistant 
                engineer, or product support manager for Federal 
                acquisition program.
                  (C) Federal contracting officer.
                  (D) Small business technical advisor.
                  (E) Contracts administrator for Federal Government 
                contracts.
                  (F) Attorney specializing in Federal procurement law.
                  (G) Small business liaison officer.
                  (H) Officer or employee who managed Federal 
                Government contracts for a small business.
                  (I) Individual whose primary responsibilities were 
                for the functions and duties of chapter 231, 233, 241, 
                243, or 245 of this title or division H of subtitle II 
                of this title.
          (3) Position.--The Director shall be appointed to a position 
        that is a Senior Executive Service position (as defined under 
        section 3132(a) of title 5), except that, for a Federal agency 
        in which the positions of Chief Acquisition Officer and senior 
        procurement executive are not Senior Executive Service 
        positions, the Director may be appointed to a position 
        compensated at not less than the minimum rate of basic pay 
        payable for grade GS-15 of the General Schedule under section 
        5332 of title 5 (including comparability payments under section 
        5304 of that title).
          (4) Line of authority.--
                  (A) In General.--The Director for a Federal agency 
                shall be responsible (including responsibility with 
                respect to performance appraisals) only to, and shall 
                report directly to, the head or deputy head of the 
                Federal agency.
                  (B) Department of defense.--The Director for the 
                Department of Defense shall be responsible (including 
                responsibility with respect to performance appraisals) 
                only to, and shall report directly to, the Secretary of 
                Defense or a designee of the Secretary.
          (5) Exclusive duties.--The Director shall carry out 
        exclusively the duties enumerated in this subtitle and subtitle 
        I, and, while holding the position of Director, shall not hold 
        any other title, position, or responsibility, except as 
        necessary to carry out responsibilities under this section.
  (d) General Responsibilities.--The Director for a Federal agency 
shall be responsible for the implementation and execution of the 
functions and duties under chapters 231, 233, 241, 243, and 245 of this 
title and division H of subtitle II of this title.
  (e) Duties.--The Director for a Federal agency--
          (1) shall--
                  (A) identify proposed solicitations that involve 
                significant bundling of contract requirements; and
                  (B) work with acquisition officials of the Federal 
                agency and the Administrator to revise the procurement 
                strategies for proposed solicitations as appropriate to 
                increase the probability of participation by small 
                business concerns as prime contractors or to facilitate 
                participation by small business concerns as 
                subcontractors and suppliers, if a solicitation for a 
                bundled contract is to be issued;
          (2) shall assist small business concerns in obtaining 
        payments, required late payment interest penalties, or 
        information regarding payments due to small business concerns 
        from a Federal 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;
          (3) shall review and advise the Federal agency on any 
        decision to convert an activity performed by a small business 
        concern to an activity performed by a Federal employee;
          (4) shall provide to the Chief Acquisition Officer and senior 
        procurement executive of the Federal agency advice and comments 
        on acquisition strategies, market research, and justifications 
        relating to section 241119 of this title;
          (5) may provide training to small business concerns and 
        contract specialists, to the extent that the training does not 
        interfere with the Director's carrying out of other 
        responsibilities under this section;
          (6) shall receive unsolicited proposals and, when 
        appropriate, forward a proposal to personnel of the activity 
        responsible for reviewing the proposal;
          (7) shall, when notified by a small business concern prior to 
        the award of a contract that the small business concern 
        believes that a solicitation, request for proposal, or request 
        for quotation unduly restricts the ability of the small 
        business concern to compete for the award--
                  (A) submit the notice of the small business concern 
                to the contracting officer and, if necessary, recommend 
                ways in which the solicitation, request for proposal, 
                or request for quotation may be altered to increase the 
                opportunity for competition;
                  (B) inform the advocate for competition of the 
                Federal agency (as established under section 1705 of 
                title 41 or section 2318 of title 10) of the notice; 
                and
                  (C) ensure that the small business concern is aware 
                of other resources and processes available to address 
                unduly restrictive provisions in a solicitation, 
                request for proposal, or request for quotation, even if 
                the resources and processes are provided by the Federal 
                agency, the Administrator, the Comptroller General, or 
                a procurement technical assistance program established 
                under chapter 142 of title 10;
          (8) shall review summary data provided by purchase card 
        issuers of purchases made by the agency greater than the micro-
        purchase threshold (as defined under section 1902 of title 41) 
        and less than the simplified acquisition threshold to ensure 
        that the purchases have been made in compliance with the 
        provisions of subtitles I and II of this title and have been 
        properly recorded in the Federal Procurement Data System, if 
        the method of payment is a purchase card issued by the 
        Department of Defense pursuant to section 2784 of title 10 or 
        by the head of an executive agency pursuant to section 1909 of 
        title 41;
          (9) shall provide assistance to a small business concern 
        awarded a contract or subcontract under subtitles I and II of 
        this title or under title 10 or title 41, in finding resources 
        for education and training on compliance with contracting 
        regulations (including the Federal Acquisition Regulation) 
        after award of the contract or subcontract; and
          (10) shall review all subcontracting plans required by 
        section 243103 of this title to ensure that the plan provides 
        maximum practicable opportunity for small business concerns to 
        participate in the performance of the contract to which the 
        plan applies.
  (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 chapters 231, 233, 241, 243, and 245 of this 
title and division H of subtitle II of this title.
  (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 SBA procurement center 
        representative in carrying out duties and functions relating to 
        chapters 231, 233, 241, 243, and 245 of this title and division 
        H of subtitle II of this title.
  (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 
        chapter 231, 233, 241 (except section 241119), 243, or 245 of 
        this title, division H of subtitle II of this title, or section 
        2323 of title 10.
          (2) Considerations.--A recommendation under paragraph (1) 
        shall be made with due regard to the requirements of sections 
        251110 and 251112 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 SBA.
Sec. 251110. Procurement center representatives
  (a) Definition of Major Procurement Center.--In this section, the 
term ``major procurement center'' means a procurement center that, in 
the opinion of the Administrator, purchases substantial dollar amounts 
of goods and services (including goods or services that are 
commercially available).
  (b) Assignment of Procurement Center Representatives.--The 
Administrator shall assign to each major procurement center a 
procurement center representative with such assistance as is 
appropriate.
  (c) Activities.--A 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, barriers to participation by 
        small business concerns in Federal contracting imposed on goods 
        and services through acquisition method coding or similar 
        procedures; and
          (B) recommend to personnel of the appropriate activity the 
        prompt reevaluation of such barriers;
          (3)(A) review barriers to participation by small business 
        concerns in Federal contracting 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) review any bundled contact or consolidated contract or 
        solicitation for a bundled contract or consolidated contract in 
        accordance with this subtitle;
          (5) have access to procurement records and other data of the 
        major procurement center commensurate with the level of the 
        procurement center representative's approved security clearance 
        classification, the data to be provided on request in 
        electronic format, if available;
          (6)(A) receive unsolicited proposals from small business 
        concerns; and
          (B) transmit each proposal to personnel of the activity of a 
        Federal agency who are responsible for reviewing such 
        proposals, which personnel shall furnish the procurement center 
        representative with information regarding the disposition of 
        the proposal;
          (7) consult with the Director of Small and Disadvantaged 
        Business Utilization of that Federal agency and the agency 
        personnel described in subsections (f) and (g) of section 
        251109 of this title with regard to agency insourcing decisions 
        covered by subsection (e)(3) of that section;
          (8) advocate for the maximum practicable utilization of small 
        business concerns in Federal contracting, including by 
        advocating against the consolidation or bundling of contract 
        requirements when not justified;
          (9) assist small business concerns with finding resources for 
        education and training on compliance with contracting 
        regulations (including the Federal Acquisition Regulation) 
        after award of a contract or subcontract; and
          (10) carry out any other responsibility assigned by the 
        Administrator.
  (d) Appeal of Failure To Act Favorably on Recommendation.--
          (1) In general.--A procurement center representative may 
        appeal the failure to act favorably on any recommendation made 
        under subsection (c).
          (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 251101(a) of this title.
  (e) 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 procurement center representative 
                for the center to which the small business technical 
                advisers are assigned in carrying out the functions 
                described in subsection (c); and
                  (B) to assist the procurement center representative 
                for each office to which the Administrator assigns a 
                procurement center representative under section 
                251109(g) of this title.
  (f) Status; Qualifications.--
          (1) A procurement center representative--
                  (A) shall be a full-time employee of SBA;
                  (B) shall be fully qualified, technically trained, 
                and familiar with the goods and services procured by 
                the major procurement center to which the procurement 
                center representative is assigned; and
                  (C) shall have the certification described in 
                paragraph (2).
          (2) Certification requirements.--
                  (A) In general.--Consistent with the requirements of 
                subparagraph (B), a procurement center representative 
                shall have a Level III Federal Acquisition 
                Certification in Contracting (or any successor 
                certification) or the equivalent Department of Defense 
                certification, except that any person serving in such a 
                position on or before January 3, 2013, may continue to 
                serve in that position for a period of 5 years without 
                the required certification.
                  (B) Delay of certification requirements.--
                          (i) Timing.--The certification described in 
                        subparagraph (A) is not required for any person 
                        serving as a procurement center representative 
                        until the date that is 1 calendar year after 
                        the date on which the person is appointed as a 
                        procurement center representative.
                          (ii) Applicability.--The requirements of 
                        clause (i) shall--
                                  (I) be included in any initial job 
                                posting for the position of a 
                                procurement center representative; and
                                  (II) apply to any person appointed as 
                                a procurement center representative 
                                after January 3, 2013.
  (g) Compensation.--The Administrator shall establish personnel 
positions for procurement representatives assigned under this section 
that are classified at a grade level of the General Schedule sufficient 
to attract and retain highly qualified personnel.
  (h) Training.--
          (1) In general.--At such times as the Administrator considers 
        appropriate, a procurement center representative shall conduct 
        familiarization sessions for contracting officers and other 
        appropriate personnel of the major procurement center to which 
        the 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.
          (3) Limitation.--A procurement center representative may 
        provide training under paragraph (1) only to the extent that 
        the training does not interfere with the carrying out by the 
        procurement center representative of other activities under 
        this section.
  (i) Annual Briefing and Report.--
          (1) In general.--A procurement center representative shall 
        prepare and personally deliver an annual briefing and report to 
        the head of the major procurement center to which the 
        procurement center representative is assigned.
          (2) Contents.--A briefing and report under paragraph (1) 
        shall--
                  (A) detail the past and planned activities of the 
                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 
                procurement center representative.
  (j) Scope of Review.--The Administrator--
          (1) may not limit the scope of review by the procurement 
        center representative for any solicitation of a contract or 
        task order without regard to whether the contract or task order 
        or part of the contract or task order is set aside for small 
        business concerns, whether 1 or more contracts or task order 
        awards are reserved for small business concerns under a 
        multiple award contract, or whether or not the solicitation 
        would result in a bundled contract (as defined in section 
        101102 of this title), a consolidated contract (as defined in 
        section 101102 of this title), or a bundled or consolidated 
        task order; and
          (2) shall, unless the contracting agency requests a review, 
        limit the scope of review by the procurement center 
        representative for any solicitation of a contract or task order 
        if such solicitation is awarded by or for the Department of 
        Defense and--
                  (A) is conducted pursuant to section 22 of the Arms 
                Export Control Act (22 U.S.C. 2762);
                  (B) is a humanitarian operation as defined in section 
                401(e) of title 10;
                  (C) is for a contingency operation, as defined in 
                section 101(a)(13) of title 10;
                  (D) is to be awarded pursuant to an agreement with 
                the government of a foreign country in which Armed 
                Forces of the United States are deployed; or
                  (E) both the place of award and the place of 
                performance are outside of the United States and its 
                territories.
  (k) Standards for Measuring Cost Savings From Procurement Center 
Representatives.--The Administrator and the Comptroller General shall 
jointly establish standards for measuring--
          (1) cost savings achieved through the efforts of procurement 
        center representatives; and
          (2) the extent to which competition has been increased as a 
        result of those efforts.
Sec. 251111. 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 F 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, chapter 
        231, or chapter 233.
Sec. 251112. Actions by procurement center representatives to ensure 
                    compliance
  A procurement center representative assigned under section 251109 or 
251110 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 251111 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 F of this subtitle, 
        and section 2323 of title 10.
Sec. 251113. Limitations on subcontracting
  A concern shall not be awarded a contract under section 251101 of 
this title as a small business concern unless the concern agrees to 
satisfy the requirements of section 291107 of this title.
Sec. 251114. Multiple award contracts
  The Administrator for Federal Procurement Policy and the 
Administrator, in consultation with the Administrator of General 
Services, shall by regulation establish guidance under which Federal 
agencies may--
          (1) set aside 1 or more parts of a multiple award contract 
        for small business concerns, including the subcategories of 
        small business concerns identified in section 251106(b) of this 
        title;
          (2) notwithstanding the fair opportunity requirements under 
        section 2304c(b) of title 10 and section 4106(c) of title 41, 
        set aside orders placed against multiple award contracts for 
        small business concerns, including the subcategories of small 
        business concerns identified in section 251106(b) of this 
        title; and
          (3) reserve 1 or more contract awards for small business 
        concerns under full and open multiple award procurements, 
        including the subcategories of small business concerns 
        identified in section 251106(b) of this title.
Sec. 251115. Data quality improvement plan
  (a) In General.--In consultation with the Small Business Procurement 
Advisory Council, the Administrator for Federal Procurement Policy, and 
the Administrator of General Services, the Administrator shall develop 
a plan to improve the quality of data reported on bundled contracts or 
consolidated contracts in the Federal procurement data system described 
in section 1122(a)(4)(A) of title 41.
  (b) Plan Requirements.--The plan shall--
          (1) describe the roles and responsibilities of the 
        Administrator, each Director of Small and Disadvantaged 
        Business Utilization, the Administrator for Federal Procurement 
        Policy, the Administrator of General Services, senior 
        procurement executives, and Chief Acquisition Officers in--
                  (A) improving the quality of data reported on bundled 
                contracts or consolidated contracts in the Federal 
                procurement data system; and
                  (B) contributing to the annual report required by 
                section 107106 of this title;
          (2) recommend changes in policies and procedures, including 
        training procedures of personnel with relevant 
        responsibilities, to properly identify and mitigate the effects 
        of bundled contracts or consolidated contracts;
          (3) recommend requirements for periodic and statistically 
        valid data verification and validation; and
          (4) recommend clear data verification responsibilities.
  (c) Plan Submission.--The Administrator shall submit the plan to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate not 
later than December 1, 2016.
  (d) Certification.--The Administrator shall annually provide to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a 
certification of the accuracy and completeness of data reported on 
bundled and consolidated contracts.
Sec. 251116. Post-award compliance resources
  The Administrator shall provide to small business development centers 
and entities participating in the Procurement Technical Assistance 
Cooperative Agreement Program under chapter 142 of title 10, and shall 
make available on the SBA website, a list of resources for small 
business concerns seeking education and assistance on compliance with 
contracting regulations (including the Federal Acquisition Regulation) 
after award of a contract or subcontract.
Sec. 251117. Regulatory changes and training materials
  (a) In General.--Not less than annually, the Administrator shall 
provide to the Defense Acquisition University (established under 
section 1746 of title 10), the Federal Acquisition Institute 
(established under section 1201 of title 41), the individual 
responsible for mandatory training and education of the acquisition 
workforce of each agency (described under section 1703(f)(1)(C) of 
title 41), small business development centers, and entities 
participating in the Procurement Technical Assistance Cooperative 
Agreement Program under chapter 142 of title 10--
          (1) a list of all changes made in the prior year to 
        regulations promulgated--
                  (A) by the Administrator that affect Federal 
                acquisition; and
                  (B) by the Federal Acquisition Council that implement 
                amendments to subtitles I and II of this title; and
          (2) any materials the Administrator has developed that 
        explain, train, or assist Federal agencies or departments or 
        small business concerns with compliance with the regulations 
        described in paragraph (1).
  (b) Training To Be Updated.--After receipt of information from the 
Administrator pursuant to subsection (a), the Defense Acquisition 
University (established under section 1746 of title 10) and the Federal 
Acquisition Institute (established under section 1201 of title 41) 
shall periodically update the training provided to the acquisition 
workforce to incorporate the information.

                      Chapter 253--HUBZone Program

Sec.
253101.  Definitions.
253102.  Establishment of HUBZone program.
253103.  Sole source preference.
253104.  Setaside preference.
253105.  Appeal of decision not to award contract.
253106.  Price evaluation preference in full and open competition.
253107.  Relationship to other contracting preferences.
253108.  Verification of eligibility.
253109.  Mentor-protege program.
253110.  Wholesalers and retailers.
253111.  List of qualified HUBZone small business concerns.
253112.  Regulations.
253113.  Penalties.
Sec. 253101. Definitions
  In this chapter:
          (1) Base closure area.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``base closure area'' means--
                          (i) land within the external boundaries of a 
                        military installation that was closed through a 
                        privatization process under--
                                  (I) 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);
                                  (II) title II of the Defense 
                                Authorization Amendments and Base 
                                Closure and Realignment Act (Public Law 
                                100-526; 10 U.S.C. 2687 note);
                                  (III) section 2687 of title 10; or
                                  (IV) 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;
                          (ii) the census tract or nonmetropolitan 
                        county in which land described in clause (i) is 
                        wholly contained;
                          (iii) a census tract or nonmetropolitan 
                        county the boundaries of which intersect the 
                        area described in clause (i); and
                          (iv) a census tract or nonmetropolitan county 
                        the boundaries of which are contiguous to the 
                        area described in clause (ii) or (iii).
                  (B) Limitation.--A base closure area shall be treated 
                as a HUBZone--
                          (i) with respect to a census tract or 
                        nonmetropolitan county described in 
                        subparagraph (A), for a period of not less than 
                        8 years, beginning on the date on which the 
                        military installation undergoes final closure 
                        and ending on the date on which the 
                        Administrator makes a final determination 
                        whether to implement the applicable designation 
                        as a qualified census tract or qualified 
                        nonmetropolitan county in accordance with the 
                        results of the decennial census conducted after 
                        the area was initially designated as a base 
                        closure area; and
                          (ii) if the area was treated as a HUBZone at 
                        any time after 2010, until such time as the 
                        Administrator makes a final determination 
                        whether to implement the applicable designation 
                        as a qualified census tract or qualified 
                        nonmetropolitan county, after the 2020 
                        decennial census.
                  (C) Definitions.--In this paragraph:
                          (i) Census tract.--The term ``census tract'' 
                        means a census tract delineated by the Bureau 
                        of the Census in the most recent decennial 
                        census that is not located in a nonmetropolitan 
                        county and does not otherwise qualify as a 
                        qualified census tract.
                          (ii) Nonmetropolitan county.--The term 
                        ``nonmetropolitan county'' means a county 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 and does not otherwise 
                        qualify as a qualified nonmetropolitan county.
          (2) Full and open competition.--The term ``full and open 
        competition'' has the meaning given the term in section 107 of 
        title 41.
          (3) Historically underutilized business zone.--
                  (A) In general.--The term ``historically 
                underutilized business zone'' means an area located 
                within 1 or more--
                          (i) qualified census tracts;
                          (ii) qualified nonmetropolitan counties;
                          (iii) areas of land within the external 
                        boundaries of an Indian reservation;
                          (iv) redesignated areas;
                          (v) base closure areas; or
                          (vi) qualified disaster areas.
                  (B) HUBZone status timeline and commencement.--
                          (i) 2004 enactment.--A base closure area that 
                        has undergone final closure shall be treated as 
                        a HUBZone for a period of 5 years.
                          (ii) 2013 enactment.--
                                  (I) Definition of covered base 
                                closure area.--In this clause, the term 
                                ``covered base closure area'' means a 
                                base closure area that, on or before 
                                January 2, 2013, was treated as a 
                                HUBZone for purposes of the Small 
                                Business Act (15 U.S.C. 631 et seq.) 
                                pursuant to section 152(a)(2) of the 
                                Small Business Reauthorization and 
                                Manufacturing Assistance Act of 2004 
                                (15 U.S.C. 632 note).
                                  (II) Treatment as HUBZone.--
                                          (aa) In general.--Subject to 
                                        item (bb), a covered base 
                                        closure area shall be treated 
                                        as a HUBZone for purposes of 
                                        this subtitle and subtitle II 
                                        during the 5-year period 
                                        beginning on January 2, 2013.
                                          (bb) Limitation.--The total 
                                        period of time that a covered 
                                        base closure area is treated as 
                                        a HUBZone for purposes of this 
                                        subtitle and subtitle II 
                                        pursuant to this clause and 
                                        clause (i) shall not exceed 5 
                                        years.
          (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 1 or more Indian 
                        tribal governments, or by a corporation that is 
                        wholly owned by 1 or more Indian tribal 
                        governments; or
                          (ii) that is owned in part by 1 or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by 1 or more Indian tribal 
                        governments, if all other owners are either 
                        United States citizens or small business 
                        concerns;
                  (D) a small business concern--
                          (i) that is wholly owned by 1 or more Native 
                        Hawaiian organizations or by a corporation that 
                        is wholly owned by 1 or more Native Hawaiian 
                        organizations; or
                          (ii) that is owned in part by 1 or more 
                        Native Hawaiian Organizations, or by a 
                        corporation that is wholly owned by 1 or more 
                        Native Hawaiian organizations, if all other 
                        owners are either United States citizens or 
                        small business concerns;
                  (E) 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 1 or more community 
                        development corporations, if all other owners 
                        are either United States citizens or small 
                        business concerns; or
                  (F) a small business concern that is--
                          (i) a small agricultural cooperative 
                        organized or incorporated in the United States;
                          (ii) wholly owned by 1 or more small 
                        agricultural cooperatives organized or 
                        incorporated in the United States; or
                          (iii) owned in part by 1 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 disaster area.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``qualified disaster area'' means a census tract 
                or nonmetropolitan county located in an area for which 
                the President declares a major disaster under section 
                401 of the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5170) or located in 
                an area in which a catastrophic incident has occurred 
                if the census tract or nonmetropolitan county ceased to 
                be a qualified census tract or qualified 
                nonmetropolitan county, as applicable, during the 
                period beginning 5 years before the date on which the 
                President declares the major disaster or the 
                catastrophic incident occurs and ending on the date 
                that is 2 years after that date, except that the census 
                tract or nonmetropolitan county shall be a qualified 
                disaster area only--
                          (i) in the case of a major disaster declared 
                        by the President, during the 5-year period 
                        beginning on the date on which the President 
                        declares the major disaster for the area in 
                        which the census tract or nonmetropolitan 
                        county, as applicable, is located; and
                          (ii) in the case of a catastrophic incident, 
                        during the 10-year period beginning on the date 
                        on which the catastrophic incident occurs in 
                        the area in which the census tract or 
                        nonmetropolitan county, as applicable, is 
                        located.
                  (B) Limitation.--A qualified disaster area described 
                in subparagraph (A) shall be treated as a HUBZone for a 
                period of not less than 8 years, beginning on the date 
                on which the Administrator makes a final determination 
                whether to implement the designations as a qualified 
                census tract or qualified nonmetropolitan county in 
                accordance with the results of the decennial census 
                conducted after the area was initially designated as a 
                qualified disaster area.
          (8) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' means a small 
        business concern--
                  (A) 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 
                253112 of this title) that--
                          (i) it is a HUBZone small business concern--
                                  (I) under subparagraph (A), (B), (C), 
                                (D), (E), or (F) 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;
                                  (II) under subparagraph (A), (B), 
                                (C), (D), (E), or (F) of paragraph (5), 
                                that its principal office is located 
                                within a base closure area and that not 
                                fewer than 35 percent of its employees 
                                reside in that base closure area or in 
                                another HUBZone; or
                                  (III) 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 1 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 clause (i) during the 
                        performance of any contract awarded to the 
                        small business concern on the basis of a 
                        preference provided under section 253103, 
                        253104, or 253106 of this title; 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 the requirements of section 
                        299107 of this title are satisfied; and
                  (B) with respect to which no certification made or 
                information provided by the small business concern 
                under subparagraph (A) has been, in accordance with the 
                procedures established under section 253108 of this 
                title--
                          (i) successfully challenged by an interested 
                        party; or
                          (i) otherwise determined by the Administrator 
                        to be materially false.
          (9) 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)(B)(ii) of the Internal Revenue 
                Code of 1986 (26 U.S.C. 42(d)(5)(B)(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)(B)(iii) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)(5)(B)(iii)), within Alaska, Hawaii, or 
                        any territory or possession of the United 
                        States outside the 48 contiguous States.
          (10) 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 1st 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. 253102. Establishment of HUBZone program
  There is established within SBA 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. 253103. Sole source preference
  A contracting officer may award a sole source contract under the 
program to a qualified HUBZone small business concern if--
          (1) the contracting officer 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) $5,000,000, 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. 253104. Setaside preference
  A contract opportunity may 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. 253105. Appeal of decision not to award contract
  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. 253106. 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 1st 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. 253107. 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) chapter 85 of title 41.
Sec. 253108. 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 
        253101(7) 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 253101(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 253101(7) of this title.
  (c) Provision of Data.--On the request of the Administrator, the 
Secretary of Labor, the Administrator of the Federal Emergency 
Management Agency, 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. 253109. Mentor-protege program
  The Administrator may establish a mentor-protege program for HUBZone 
small business concerns modeled on the mentor-protege program for small 
business concerns participating in the business development program.
Sec. 253110. Wholesalers and retailers
  (a) In General.--An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to 
submit and have considered its offer for a procurement contract that 
has as its principal purpose the supply of a product to be let under 
this chapter solely because the small business concern is other than 
the manufacturer or processor of the product to be supplied under the 
contract.
  (b) Requirements.--A small business concern referred to in subsection 
(a) is a small business concern 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 6510 of 
        title 41) in the product to be offered the Government; and
          (4) represents that the small business concern 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.
  (c) Limitation.--This section does not apply to a contract that has 
as its principal purpose the acquisition of a service or construction.
Sec. 253111. 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 253101(7)(A)(i) of this title regarding a qualified 
        HUBZone small business concern and determines that subparagraph 
        section 253101(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. 253112. Regulations
  The Administrator shall by regulation establish procedures for the 
certification of a small business concern as a qualified HUBZone small 
business concern.
Sec. 253113. Penalties
  In addition to the penalties described in section 105104 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.
255101.  Sole source preference.
255102.  Setaside preference.
255103.  Relationship to other contracting preferences.
255104.  Provision of data.
255105.  Verification of eligibility.
255106.  Mentor-protege program.
255107.  Wholesalers and retailers.
255108.  Penalties.
Sec. 255101. Sole source preference
  A contracting officer may award a sole source contract to any small 
business concern owned and controlled by service-disabled veterans if--
          (1) the contracting officer 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. 255102. Setaside preference
  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. 255103. Relationship to other contracting preferences
  A procurement may not be made from a source on the basis of a 
preference provided under section 255101 or 255102 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) chapter 85 of title 41.
Sec. 255104. 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. 255105. 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); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the Administrator 
        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. 255106. Mentor-protege program
  The Administrator may establish a mentor-protege program for small 
business concerns owned and controlled by service-disabled veterans 
modeled on the mentor-protege program for small business concerns 
participating in the business development program.
Sec. 255107. Wholesalers and retailers
  (a) In General.--An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to 
submit and have considered its offer for a procurement contract that 
has as its principal purpose the supply of a product to be let under 
this chapter solely because the small business concern is other than 
the manufacturer or processor of the product to be supplied under the 
contract.
  (b) Requirements.--A small business concern referred to in subsection 
(a) is a small business concern 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 6510 of 
        title 41) in the product to be offered the Government; and
          (4) represents that the small business concern 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.
  (c) Limitation.--This subsection does not apply to a contract that 
has as its principal purpose the acquisition of a service or 
construction.
Sec. 255108. Penalties
  In addition to the penalties described in section 105104 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.
257101.  Definition of small business concern owned and controlled by 
          women.
257102.  Restricted competition.
257103.  Identification of industries.
257104.  Provision of data.
257105.  Verification of eligibility.
257106.  Sole source contracts for economically disadvantaged small 
          business concerns owned and controlled by women.
257107.  Sole source contracts for small business concerns owned and 
          controlled by women in substantially underrepresented 
          industries.
257108.  Mentor-protege program.
257109.  Wholesalers and retailers.
257110.  Penalties.
Sec. 257101. 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 101102 
of this title, except that ownership shall be determined without regard 
to any community property law.
Sec. 257102. 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 1 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 257103 of this title;
          (4) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price; and
          (5) each of the small business concerns owned and controlled 
        by women is certified by a Federal agency, a State government, 
        the Administrator, or a national certifying entity approved by 
        the Administrator as a small business concern owned and 
        controlled by women.
  (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. 257103. 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 agency procurement 
contracting.
Sec. 257104. 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. 257105. 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 
        257102(a)(5) 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 257102(a)(5) 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 257102(a)(5) of this title.
Sec. 257106. Sole source contracts for economically disadvantaged small 
                    business concerns owned and controlled by women
  A contracting officer may award a sole source contract to a small 
business concern owned and controlled by women that is certified under 
section 257102(a)(5) of this title if--
          (1)(A) the small business concern owned and controlled by 
        women is determined to be a responsible contractor with respect 
        to performance of the contract opportunity; and
          (B) the contracting officer does not have a reasonable 
        expectation that more than 1 small business concern owned and 
        controlled by women described in section 257102(a)(1) of this 
        title will submit an offer;
          (2) the anticipated award price of the contract (including 
        options) will not exceed--
                  (A) $6,500,000, in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $4,000,000, in the case of any other contract 
                opportunity; and
          (3) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price.
Sec. 257107. Sole source contracts for small business concerns owned 
                    and controlled by women in substantially 
                    underrepresented industries
  A contracting officer may award a sole source contract to a small 
business concern owned and controlled by women that is certified under 
section 257102(a)(5) of this title if--
          (1) 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 (as 
        determined by the Administrator under section 257102(b) of this 
        title);
          (2)(A) the small business concern owned and controlled by 
        women is determined to be a responsible contractor with respect 
        to performance of the contract opportunity; and
          (B) the contracting officer does not have a reasonable 
        expectation that more than 1 small business concern owned and 
        controlled by women that has received a waiver under section 
        257102(b) of this title will submit an offer;
          (3) the anticipated award price of the contract (including 
        options) will not exceed--
                  (A) $6,500,000, in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $4,000,000, 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. 257108. Mentor-protege program
  The Administrator may establish a mentor-protege program for small 
business concerns owned and controlled by women modeled on the mentor-
protege program for small business concerns participating in the 
business development program.
Sec. 257109. Wholesalers and retailers
  (a) In General.--An otherwise responsible small business concern that 
is described in subsection (b) shall not be denied the opportunity to 
submit and have considered its offer for a procurement contract that 
has as its principal purpose the supply of a product to be let under 
this chapter solely because the small business concern is other than 
the manufacturer or processor of the product to be supplied under the 
contract.
  (b) Requirements.--A small business concern referred to in subsection 
(a) is a small business concern 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 6510 of 
        title 41) in the product to be offered the Government; and
          (4) represents that the small business concern 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.
  (c) Limitation.--This section does not apply to a contract that has 
as its principal purpose the acquisition of a service or construction.
Sec. 257110. Penalties
  In addition to the penalties described in section 105102 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) sections 1001 and 2731 of title 18; and
          (2) sections 3729 through 3733 of title 31.

                  Division I--Research and Development

                    Chapter 261--General Provisions

Sec.
261101.  Definitions.
261102.  Assistance to small business concerns.
261103.  Federal agency cooperation.
261104.  Joint research and development programs.
Sec. 261101. 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) Commercialization.--The term ``commercialization'' 
        means--
                  (A) the process of developing a product, process, 
                technology, or service; and
                  (B) the production and delivery (whether by the 
                originating party or by others) of a product, process, 
                technology, or service for sale to or use by the 
                Federal Government or a commercial market.
          (3) 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.
          (4) 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 of the Federal 
                agency for research and research and development 
                activities 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.
          (5) 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 3.5(h) of Executive Order 12333 (50 
                U.S.C. 3001 note) (or any successor Executive order)).
          (6) 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 (or any successor 
        regulation).
          (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) Phase I.--The term ``phase I''--
                  (A) with respect to an SBIR program, means the phase 
                described in paragraph (17)(A); and
                  (B) with respect to an STTR program, means the phase 
                described in paragraph (18)(A).
          (9) Phase II.--The term ``phase II''--
                  (A) with respect to an SBIR program, means the phase 
                described in paragraph (17)(B); and
                  (B) with respect to an STTR program, means the phase 
                described in paragraph (18)(B).
          (10) Phase III.--The term ``phase III''--
                  (A) with respect to an SBIR program, means the phase 
                described in paragraph (17)(C); and
                  (B) with respect to an STTR program, means the phase 
                described in paragraph (18)(C).
          (11) Phase III agreement.--The term ``phase III agreement'' 
        means a follow-on, non-SBIR program-funded contract or non-STTR 
        program-funded contract described in paragraph (17)(C) or 
        (18)(C).
          (12) 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.
          (13) 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.
          (14) SBIR agency.--The term ``SBIR agency'' means a Federal 
        agency that is required by section 263101 of this title to have 
        an SBIR program.
          (15) SBIR participating agency.--The term ``SBIR 
        participating agency'' means--
                  (A) an SBIR agency; and
                  (B) any other Federal agency that participates in the 
                SBIR program.
          (16) SBIR program.--The term ``SBIR program'' means a small 
        business innovation research program.
          (17) 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 1st 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 program solicitations;
                  (B) a 2d phase, to further develop proposals that 
                meet particular program needs--
                          (i) in which awards (including awards for 
                        testing and evaluation of products, services, 
                        or technologies for use in technical or weapons 
                        systems) shall be made based on the scientific 
                        and technical merit and feasibility of the 
                        proposals, as evidenced by the 1st phase, 
                        considering, among other things, the proposal's 
                        commercial potential, as evidenced by--
                                  (I) the small business concern's 
                                record of successfully commercializing 
                                SBIR program research or other 
                                research;
                                  (II) the existence of phase II 
                                funding commitments from private sector 
                                or non-SBIR program funding sources;
                                  (III) the existence of phase III 
                                follow-on commitments for the subject 
                                of the research; and
                                  (IV) the presence of other indicators 
                                of the commercial potential of the 
                                idea; and
                          (ii) that does not include any invitation, 
                        prescreening, or preselection process for 
                        eligibility; and
                  (C) where appropriate, a 3d phase for work that 
                derives from, extends, or completes efforts made under 
                prior funding agreements under the SBIR program--
                          (i) in which commercial applications of SBIR 
                        program-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 
                                program Federal funding awards; or
                          (ii) for which awards from non-SBIR program 
                        Federal funding sources are used for the 
                        continuation of research or research and 
                        development that has been competitively 
                        selected using peer review or merit-based 
                        selection procedures.
          (18) 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 1st phase, to determine, to the extent 
                possible, the scientific, technical, and commercial 
                merit and feasibility of ideas submitted pursuant to 
                STTR program solicitations;
                  (B) a 2d phase, to further develop proposed ideas to 
                meet particular program needs--
                          (i) in which awards (including awards for 
                        testing and evaluation of products, services, 
                        or technologies for use in technical or weapons 
                        systems) shall be made based on the scientific, 
                        technical, and commercial merit and feasibility 
                        of the idea, as evidenced by the 1st phase and 
                        by other relevant information; and
                          (ii) that does not include any invitation, 
                        prescreening, or preselection process for 
                        eligibility; and
                  (C) where appropriate, a 3d phase for work that 
                derives from, extends, or completes efforts made under 
                prior funding agreements under the STTR program--
                          (i) in which commercial applications of STTR 
                        program-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 
                                program Federal funding awards; and
                          (ii) for which awards from non-STTR program 
                        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.
          (19) STTR agency.--The term ``STTR agency'' means a Federal 
        agency that is required by section 263201 of this title to have 
        an STTR program.
          (20) STTR participating agency.--The term ``STTR 
        participating agency'' means--
                  (A) an STTR agency; and
                  (B) any other Federal agency that participates in the 
                STTR program.
          (21) STTR program.--The term ``STTR program'' means a small 
        business technology transfer program.
Sec. 261102. 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 SBIR 
        programs and STTR programs;
          (5) coordinate with participating Federal agencies a schedule 
        for release of SBIR program and STTR program 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 SBIR 
        programs and STTR programs within participating Federal 
        agencies;
          (7) provide for and fully implement the tenets of Executive 
        Order 13329 (Encouraging Innovation in Manufacturing); and
          (8) coordinate the implementation of electronic databases at 
        each of the Federal agencies participating in the SBIR program 
        or STTR program, including the technical ability of the 
        participating agencies to share data electronically.
Sec. 261103. 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. 261104. 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, 
        Federal agencies, the Government Accountability Office, 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 corporations.
  (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 the following shall 
be published in the Federal Register:
          (1) An approval under subsection (c) of an agreement between 
        small business concerns providing for a joint program of 
        research and development and an accompanying determination by 
        the Administrator that the joint program proposed will maintain 
        and strengthen the free enterprise system and the economy of 
        the Nation.
          (2) A withdrawal of approval of a joint agreement and the 
        joint program of research and development covered by the 
        agreement and an accompanying determination by the 
        Administrator or Attorney General 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.
          (3) A modification of an approval described in paragraph (1).
  (f) Nondelegability.--The authority of the Administrator under this 
section shall 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--SBIR Programs and STTR Programs

Subchapter I--SBIR Programs
Sec.
263101.  Required expenditure amounts.
263102.  Administration by Federal agencies.
263103.  Funding agreement goals.
263104.  Policy directives.
263105.  Coordination of technology development programs.
263106.  Purchase of American-made equipment and products.
263107.  Use of Department of Agriculture extramural budget funds.
263108.  Phase flexibility.
263109.  Participation of small business concerns that are majority-
          owned by venture capital operating companies, hedge funds, or 
          private equity firms in the SBIR program.
263110.  Assistance for administrative, oversight, and contract 
          processing costs.
263111.  Reports by Federal agencies.
263112.  Termination.

Subchapter II--STTR Programs
263201.  Required expenditure amounts.
263202.  Administration by Federal agencies.
263203.  Policy directive.
263204.  Model agreement for intellectual property rights.
263205.  Phase 0 proof of concept partnership pilot program.

Subchapter III--Provisions Relating to Both SBIR Programs and STTR 
          Programs
263301.  Database.
263302.  Phase III agreements.
263303.  Inclusion of SBIR program and STTR program information in 
          strategic plans.
263304.  Reduction of paperwork and compliance burden.
263305.  FAST program.
263306.  Innovation in energy efficiency.
263307.  Competitive selection procedures.
263308.  Award amounts in excess of guidelines.
263309.  Subsequent phase II awards.
263310.  Collaboration with Federal laboratories and research and 
          development centers.
263311.  Sequential SBIR awards and STTR awards for continued work on a 
          project
263312.  Prevention of duplicative awards.
263313.  Discretionary technical assistance.
263314.  Commercialization readiness programs.
263315.  Timing of release of funding.
263316.  Reporting on timing of final decisions on proposals and 
          releases of funding.
263317.  Release of contact information to economic development 
          organizations.
263318.  Prevention of fraud, waste, and abuse.
263319.  Competitive selection procedures.
263320.  Limitation on pilot programs.
263321.  Minimum standards for participation.
263322.  Publication of information relating to notice of and 
          application for SBIR awards and STTR awards.

                      Subchapter I--SBIR Programs

Sec. 263101. Required expenditure amounts
  (a) SBIR Program Budget.--Except as provided in subsection (b)(2), 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, specifically in connection with an 
SBIR program that meets the requirements of this division (including 
policy directives under section 263104 of this title)--
          (1) not less than 2.7 percent of the extramural budget in 
        fiscal year 2013;
          (2) not less than 2.8 percent of the extramural budget in 
        fiscal year 2014;
          (3) not less than 2.9 percent of the extramural budget in 
        fiscal year 2015;
          (4) not less than 3.0 percent of the extramural budget in 
        fiscal year 2016; and
          (5) not less than 3.2 percent of the extramural budget in 
        fiscal year 2017 and each fiscal year thereafter.
  (b) Limitations.--An SBIR agency shall not--
          (1) 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); or
          (2) after September 30, 2015, use any of its SBIR program 
        budget established under subsection (a) for the purpose of 
        funding administrative costs of the program, including costs 
        associated with salaries and expenses.
  (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 program shall not be considered to meet any portion of the 
percentage requirement of subsection (a).
  (d) Rule of construction.--Nothing in this section shall be construed 
to prohibit a Federal agency from expending with small business 
concerns an amount of the extramural budget for research or research 
and development of the agency that exceeds the amount required under 
subsection (a).
Sec. 263102. Administration by Federal agencies
  (a) In General.--An SBIR agency shall, in accordance with this 
division (including policy directives under section 263104 of this 
title)--
          (1) unilaterally determine categories of projects to be in 
        its SBIR program;
          (2) issue SBIR program solicitations in accordance with a 
        schedule determined cooperatively with the Administrator;
          (3) unilaterally determine research topics within the SBIR 
        agency's SBIR program solicitations, giving special 
        consideration to broad research topics and to topics that 
        further 1 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)(A) unilaterally receive and evaluate proposals resulting 
        from SBIR program proposals; and
          (B) make a final decision on each proposal submitted under 
        the SBIR program--
                          (i)(I) in the case of the National Institutes 
                        of Health or the National Science Foundation, 
                        not later than 1 year after the date on which 
                        the applicable solicitation closes; or
                          (II) in the case of SBIR participating 
                        agency, not later than 90 days after the date 
                        on which the applicable solicitation closes,; 
                        or
                          (ii) if the Administrator authorizes an 
                        extension with respect to a solicitation, not 
                        later than 90 days after the date that would 
                        otherwise be applicable to the agency under 
                        clause (i);
          (5) subject to section 263111(b) of this title--
                  (A) unilaterally select awardees for its SBIR program 
                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 program funding agreements (or 
        delegate such administration to another Federal agency);
          (7)(A) make payments to recipients of SBIR program 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) collect annually, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        section 263304 of this title, such information from awardees as 
        is necessary to assess the SBIR program, including information 
        necessary to maintain the database under section 263301 of this 
        title, including--
                  (A) whether an awardee--
                          (i) has venture capital, hedge fund, or 
                        private equity firm investment or is majority-
                        owned by multiple venture capital operating 
                        companies, hedge funds, or private equity firms 
                        and, if so--
                                   (I) the amount of venture capital, 
                                hedge fund, or private equity firm 
                                investment that the awardee has 
                                received as of the date of the award; 
                                and
                                   (II) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR technology;
                          (ii) has an investor that--
                                  (I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States and, if so, the name of any such 
                                individual; or
                                  (II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States and, if so, the name of any such 
                                person;
                          (iii) is owned by a woman or has a woman as a 
                        principal investor;
                          (iv) is owned by a socially or economically 
                        disadvantaged individual or has a socially 
                        disadvantaged individual or economically 
                        disadvantaged individual as a principal 
                        investor;
                          (v) is a faculty member or a student at an 
                        institution of higher education (as defined in 
                        section 101 of the Higher Education Act of 1965 
                        (20 U.S.C. 1001); or
                           (vi) is located in a State described in 
                        section 263105(c) of this title;
                   (B) a justification statement from the agency, if an 
                awardee receives an award in an amount that is more 
                than the award guidelines under this division; and
                   (C) data with respect to the FAST program;
          (9)(A) include a section on its SBIR program 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;
          (10) provide for and fully implement the tenets of Executive 
        Order 13329 (Encouraging Innovation in Manufacturing); and
          (11) provide timely notice to the Administrator of any case 
        or controversy before any Federal judicial or administrative 
        tribunal concerning the SBIR program of the SBIR agency.
  (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 program and the STTR program 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. 263103. Funding agreement goals
  (a) In General.--A Federal agency that has an extramural 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. 263104. Policy directives
  (a) In General.--The Administrator, after consultation with the 
Administrator for 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 SBIR programs within 
the Federal Government.
  (b) Matters To Be Provided For.--Policy directives under subsection 
(a) shall provide for--
          (1) simplified, standardized, and timely SBIR program 
        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 (without regard to whether the small 
                business concern continues to qualify as a small 
                business concern for all of that period);
                  (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 program 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 program;
          (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 
        program;
          (6) standardized and orderly withdrawal from SBIR program 
        participation by a Federal agency;
          (7) the voluntary participation in an SBIR program by a 
        Federal agency not required by section 263101 of this title to 
        have an SBIR program;
          (8) continued use by a small business concern participating 
        in phase III of an SBIR program, as a directed bailment, of any 
        property transferred by a Federal agency to the small business 
        concern in phase II of an SBIR program for a period of not less 
        than 2 years, beginning on the initial date of the small 
        business concern's participation in phase III of an SBIR 
        program;
          (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 program enters into a follow-on, non-SBIR 
        program funding agreement with the small business concern for 
        the research, development, or production;
          (10) thresholds in the amounts of funds that a Federal agency 
        may award of $150,000 (which amount the Administrator shall 
        adjust annually for inflation) in phase I of an SBIR program 
        and $1,000,000 in phase II of an SBIR program (which amount the 
        Administrator shall adjust annually for inflation);
          (11) a process for notifying SBIR agencies and potential SBIR 
        program 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 SBIR programs, 
        including phase III of SBIR programs; 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 phase I of an SBIR program and the 
        application for and extension of an award for phase II of the 
        SBIR program;
          (14) procedures to ensure that a small business concern that 
        submits a proposal for a funding agreement for phase I of an 
        SBIR program and that has received more than 15 phase II SBIR 
        awards during the preceding 5 fiscal years is able to 
        demonstrate the extent to which the small business concern was 
        able to secure phase III funding to develop concepts resulting 
        from previous phase II SBIR awards;
          (15) the requirement of a succinct commercialization plan 
        with each application for a phase II 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 program of the 
        Federal agency and determined that it was not practicable to 
        enter into a follow-on non-SBIR program funding agreement with 
        the small business concern; and
          (17) implementation of section 263304 of this title, 
        including establishing standardized procedures for the 
        provision of information under section 263301(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 phase I, phase II, and phase III 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. 263105. 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.--An SBIR agency that establishes 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 1 or 
        more small business concerns interested in participating in the 
        Federal agency's SBIR program (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 program 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 phase I 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 SBIR programs 
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.
  (d) Coordination of the SBIR Program and the Experimental Program to 
Stimulate Competitive Research.--The head of a Federal agency that 
participates in the SBIR program and the Experimental Program to 
Stimulate Competitive Research or the Institutional Development Award 
Program shall coordinate, to the extent possible, the initiatives of 
the agency with respect to those programs.
Sec. 263106. 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 program 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 
program.
  (b) Notice to SBIR awardees.--A Federal agency that awards a funding 
agreement under an SBIR program shall provide to each recipient of such 
an award a notice describing the sense of the Congress stated in 
subsection (a).
Sec. 263107. 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 program of the Department of 
Agriculture. Such funds may be transferred for that purpose from 1 
appropriation account to another or to a single account.
Sec. 263108. Phase flexibility
  During fiscal years 2012 through 2017, the National Institutes of 
Health, the Department of Defense, and the Department of Education may 
each provide to a small business concern an award under phase II of the 
SBIR program with respect to a project, without regard to whether the 
small business concern was provided an award under phase I of an SBIR 
program with respect to the project, if the head of the applicable 
agency determines that the small business concern has completed the 
determinations described in section 261101(17)(A) of this title with 
respect to the project despite not having been provided a phase I 
award.
Sec. 263109. Participation of small business concerns that are 
                    majority-owned by venture capital operating 
                    companies, hedge funds, or private equity firms in 
                    the SBIR program
  (a) In General.--On providing a written determination described in 
subsection (b) to the Administrator, the Committee on Small Business 
and Entrepreneurship of the Senate, and the Committee on Small Business 
and Committee on Science, Space, and Technology of the House of 
Representatives, not later than 30 days before the date on which any 
such award is made--
          (1) the Director of the National Institutes of Health, the 
        Secretary of Energy, and the Director of the National Science 
        Foundation may award not more than 25 percent of the funds 
        allocated for the SBIR program of the applicable Federal agency 
        to small business concerns that are majority-owned by multiple 
        venture capital operating companies, hedge funds, or private 
        equity firms through competitive, merit-based procedures that 
        are open to all eligible small business concerns; and
          (2) the head of an SBIR participating agency other than a 
        Federal agency described in paragraph (1) may award not more 
        than 15 percent of the funds allocated for the SBIR program of 
        the Federal agency to small business concerns that are 
        majority-owned by multiple venture capital operating companies, 
        hedge funds, or private equity firms through competitive, 
        merit-based procedures that are open to all eligible small 
        business concerns.
  (b) Determination.--A written determination described in this 
subsection is a written determination by the head of a Federal agency 
that explains how the use of the authority under subsection (a) will--
          (1) induce additional venture capital, hedge fund, or private 
        equity firm funding of small business innovations;
          (2) substantially contribute to the mission of the Federal 
        agency;
          (3) demonstrate a need for public research; and
          (4) otherwise fulfill the capital needs of small business 
        concerns for additional financing for SBIR projects.
  (c) Registration.--A small business concern that is majority-owned by 
multiple venture capital operating companies, hedge funds, or private 
equity firms and qualified for participation in the program authorized 
under subsection (a) shall--
          (1) register with the Administrator on the date on which the 
        small business concern submits an application for an award 
        under the SBIR program; and
          (2) indicate in any SBIR proposal that the small business 
        concern is registered under paragraph (1) as being majority-
        owned by multiple venture capital operating companies, hedge 
        funds, or private equity firms.
  (d) Compliance.--The head of a Federal agency that makes an award 
under this section during a fiscal year shall collect and submit to the 
Administrator data relating to the number and dollar amount of phase I 
awards, phase II awards, and any other category of awards by the 
Federal agency under the SBIR program during that fiscal year.
  (e) Enforcement.--If a Federal agency awards more than the percentage 
of the funds allocated for the SBIR program of the Federal agency 
authorized under subsection (a) for a purpose described in that 
subsection, the head of the Federal agency shall transfer an amount 
equal to the amount awarded in excess of the amount authorized under 
that subsection to the funds for general SBIR programs from the non-
SBIR and non-STTR research and development funds of the Federal agency 
not later than 180 days after the date on which the Federal agency made 
the award that caused the total awarded under that subsection to be 
more than the amount authorized under that subsection for a purpose 
described in that subsection.
  (f) Final Decisions on Applications Under the SBIR Program.--
          (1) Definition of covered small business concern.--In this 
        subsection, the term ``covered small business concern'' means a 
        small business concern that--
                  (A) was not majority-owned by multiple venture 
                capital operating companies, hedge funds, or private 
                equity firms on the date on which the small business 
                concern submitted an application in response to a 
                solicitation under an SBIR program; and
                  (B) on the date of the award under the SBIR program, 
                is majority-owned by multiple venture capital operating 
                companies, hedge funds, or private equity firms.
          (2) In general.--If a Federal agency does not make an award 
        under a solicitation under an SBIR program before the date that 
        is 9 months after the date on which the period for submitting 
        applications under the solicitation ends--
                  (A) a covered small business concern is eligible to 
                receive the award, without regard to whether the 
                covered small business concern meets the requirements 
                for receiving an award under the SBIR program for a 
                small business concern that is majority-owned by 
                multiple venture capital operating companies, hedge 
                funds, or private equity firms, if the covered small 
                business concern meets all other requirements for such 
                an award; and
                  (B) the head of the Federal agency shall transfer an 
                amount equal to any amount awarded to a covered small 
                business concern under the solicitation to the funds 
                for general SBIR programs from the non-SBIR and non-
                STTR research and development funds of the Federal 
                agency, not later than 90 days after the date on which 
                the Federal agency makes the award.
  (g) Evaluation Criteria.--A Federal agency shall not use investment 
of venture capital or investment from hedge funds or private equity 
firms as a criterion for the award of contracts under the SBIR program 
or STTR program.
  (h) Assistance in determining affiliation
          (1) Clear explanation requirement.--The Administrator shall 
        post on the SBA website (with a direct link displayed on the 
        homepage of the SBA website or the SBIR and STTR websites of 
        the SBA)--
                  (A) a clear explanation of the SBIR and STTR 
                affiliation rules under part 121 of title 13, Code of 
                Federal Regulations (or any successor regulation); and
                  (B) contact information for SBA officers or employees 
                who--
                          (i) on request, shall review an issue 
                        relating to the rules described in subparagraph 
                        (A); and
                          (ii) shall respond to a request under 
                        subparagraph (A) not later than 20 business 
                        days after the date on which the request is 
                        received.
          (2) Inclusion of affiliation rules for certain small business 
        concerns.--On and after the date on which the final regulations 
        under subsection (i) are prescribed, the Administrator shall 
        post on the SBA website information relating to the 
        regulations, in accordance with paragraph (1).
  (i) Regulations.--
          (1) Statement of congressional intent.--It is the intent of 
        Congress that the Administrator should prescribe regulations to 
        carry out this section that--
                  (A) permit small business concerns that are majority-
                owned by multiple venture capital operating companies, 
                hedge funds, or private equity firms to participate in 
                the SBIR program in accordance with this section;
                  (B) provide specific guidance for small business 
                concerns that are majority-owned by multiple venture 
                capital operating companies, hedge funds, or private 
                equity firms with regard to eligibility, participation, 
                and affiliation rules; and
                  (C) preserve and maintain the integrity of the SBIR 
                program as a program for small business concerns in the 
                United States by prohibiting large businesses or large 
                entities or foreign-owned businesses or foreign-owned 
                entities from participation in the SBIR.
          (2) Regulations.--The regulations at sections 121.103 and 
        121.702 of title 13, Code of Federal Regulations (or any 
        successor regulations), shall provide for participation in the 
        SBIR program, solely under authority of this section, by small 
        business concerns that are majority-owned by multiple venture 
        capital operating companies, hedge funds, or private equity 
        firms in the SBIR program.
          (3) Contents.--
                  (A) In general.--The regulations shall permit 
                participation by an applicant that is majority-owned by 
                multiple venture capital operating companies, hedge 
                funds, or private equity firms in the SBIR program in 
                accordance with this section unless the Administrator 
                determines--
                          (i) in accordance with the size standards 
                        established under subparagraph (B), that the 
                        applicant--
                                  (I) is a large business or large 
                                entity; or
                                  (II) is majority-owned or controlled 
                                by a large business or large entity; or
                          (ii) in accordance with the criteria 
                        established under subparagraph (C), that the 
                        applicant--
                                  (I) is a foreign-owned business or a 
                                foreign entity or is not a citizen of 
                                the United States or alien lawfully 
                                admitted for permanent residence; or
                                  (II) is majority-owned or controlled 
                                by a foreign-owned business, foreign 
                                entity, or person who is not a citizen 
                                of the United States or alien lawfully 
                                admitted for permanent residence.
                  (B) Size standards.--Under the authority to establish 
                size standards under paragraphs (1) through (4) of 
                section 101103(b) of this title, the Administrator 
                shall, in accordance with paragraph (1) of this 
                subsection, establish size standards for applicants 
                seeking to participate in the SBIR program solely under 
                the authority under this section.
                  (C) Criteria for determining foreign ownership.--The 
                Administrator shall establish criteria for determining 
                whether an applicant meets the requirements under 
                subparagraph (A)(ii), and, in establishing the 
                criteria, shall consider whether the criteria should 
                include--
                          (i) whether the applicant is at least 51 
                        percent owned or controlled by citizens of the 
                        United States or domestic venture capital 
                        operating companies, hedge funds, or private 
                        equity firms;
                          (ii) whether the applicant is domiciled in 
                        the United States; and
                          (iii) whether the applicant is a direct or 
                        indirect subsidiary of a foreign-owned firm, 
                        including whether the criteria should include 
                        that an applicant is a direct or indirect 
                        subsidiary of a foreign-owned entity if--
                                  (I) any venture capital operating 
                                company, hedge fund, or private equity 
                                firm that owns more than 20 percent of 
                                the applicant is a direct or indirect 
                                subsidiary of a foreign-owned entity; 
                                or
                                  (II) in the aggregate, entities that 
                                are direct or indirect subsidiaries of 
                                foreign-owned entities own more than 49 
                                percent of the applicant.
                  (D) Criteria for determining affiliation.--The 
                Administrator shall establish criteria, in accordance 
                with paragraph (1), for determining whether an 
                applicant is affiliated with a venture capital 
                operating company, hedge fund, private equity firm, or 
                any other business that the venture capital operating 
                company, hedge fund, or private equity firm has 
                financed and, in establishing the criteria, shall 
                specify that--
                          (i) if a venture capital operating company, 
                        hedge fund, or private equity firm that is 
                        determined to be affiliated with an applicant 
                        is a minority investor in the applicant, the 
                        portfolio companies of the venture capital 
                        operating company, hedge fund, or private 
                        equity firm shall not be determined to be 
                        affiliated with the applicant, unless--
                                  (I) the venture capital operating 
                                company, hedge fund, or private equity 
                                firm owns a majority of the portfolio 
                                company; or
                                  (II) the venture capital operating 
                                company, hedge fund, or private equity 
                                firm holds a majority of the seats on 
                                the board of directors of the portfolio 
                                company;
                          (ii) subject to clause (i), the Administrator 
                        retains the authority to determine whether a 
                        venture capital operating company, hedge fund, 
                        or private equity firm is affiliated with an 
                        applicant, including establishing other 
                        criteria;
                          (iii) the Administrator shall not determine 
                        that a portfolio company of a venture capital 
                        operating company, hedge fund, or private 
                        equity firm is affiliated with an applicant 
                        based solely on 1 or more shared investors; and
                          (iv) subject to clauses (i), (ii), and (iii), 
                        the Administrator retains the authority to 
                        determine whether a portfolio company of a 
                        venture capital operating company, hedge fund, 
                        or private equity firm is affiliated with an 
                        applicant based on factors independent of 
                        whether there is a shared investor, such as 
                        whether there are contractual obligations 
                        between the portfolio company and the 
                        applicant.
Sec. 263110. Assistance for administrative, oversight, and contract 
                    processing costs
  (a) In General.--Subject to subsection (c), until September 30, 2017, 
the Administrator shall allow an SBIR agency to use not more than 3 
percent of the funds allocated to the SBIR program of the SBIR agency 
for--
          (1) administering the SBIR program or STTR program of the 
        SBIR agency;
          (2) providing outreach and technical assistance relating to 
        the SBIR program or STTR program of the SBIR agency, including 
        technical assistance site visits, personnel interviews, and 
        national conferences;
          (3) implementing commercialization and outreach initiatives 
        that were not in effect on December 31, 2011;
          (4) carrying out the program under section 263314(a) of this 
        title;
          (5) carrying out activities relating to oversight and 
        congressional reporting, including waste, fraud, and abuse 
        prevention activities;
          (6) carrying out targeted reviews of recipients of awards 
        under the SBIR program or STTR program of the SBIR agency that 
        the head of the SBIR agency determines are at high risk for 
        fraud, waste, or abuse to ensure compliance with requirements 
        of the SBIR program or STTR program, respectively;
          (7) implementing oversight and quality control measures, 
        including verification of reports and invoices and cost 
        reviews;
          (8) carrying out section 263109 of this title;
          (9) paying contract processing costs relating to the SBIR 
        program or STTR program of the SBIR agency; and
          (10) providing funding for additional personnel and 
        assistance with application reviews.
  (b) Outreach and Technical Assistance.--
          (1) In general.--Except as provided in paragraph (2), an SBIR 
        agency participating in the program under this section shall 
        use a portion of the funds authorized for uses under subsection 
        (a) to carry out the policy directive required under section 
        263104(b)(12)(A) of this title and to increase the 
        participation of States with respect to which a low level of 
        SBIR awards have historically been awarded.
          (2) Waiver.--An SBIR agency may request the Administrator to 
        waive the requirement under paragraph (1). Such a request shall 
        include an explanation of why the waiver is necessary. The 
        Administrator may grant the waiver based on a determination 
        that--
                  (A) the SBIR agency has demonstrated a sufficient 
                need for the waiver;
                  (B) the outreach objectives of the SBIR agency are 
                being met; and
                  (C) there is increased participation by States with 
                respect to which a low level of SBIR awards have 
                historically been awarded.
  (c) Performance Criteria.--A Federal agency shall not use funds as 
authorized under subsection (a) until after the effective date of 
performance criteria, which the Administrator shall establish, to 
measure any benefits of using funds as authorized under subsection (a) 
and to assess continuation of the authority under subsection (a).
  (d) Coordination With Inspector General.--The head of an SBIR agency 
shall coordinate the activities funded under paragraph (5), (6), or (7) 
of subsection (a) with the Inspector General of the SBIR agency, when 
appropriate. An SBIR agency that allocates more than $50,000,000 to the 
SBIR program of the SBIR agency for a fiscal year may share that 
funding with its Inspector General when the Inspector General performs 
those activities.
  (e) Rules.--The Administrator shall issue rules to carry out this 
section.
  (f) Reporting.--The Administrator shall collect data and provide to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business, Committee on Science, Space, and 
Technology, and Committee on Appropriations of the House of 
Representatives a report on the use of funds under this section, 
including funds used to achieve the objectives of subsection (b)(1) and 
any use of the waiver authority under subsection (b)(2).
Sec. 263111. 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 program.
  (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 program solicitation topic or subtopic for 
        which the Federal agency received only 1 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 phase I of its 
        SBIR program during the reporting period to entities that have 
        received more than 15 awards for phase II of the SBIR program 
        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 263102(a)(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 263101 
        of this title to have an SBIR program or to establish goals 
        shall annually submit to the Administrator a report that 
        discloses--
                  (A) the number of awards (including awards under 
                section 263314 of this title) 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 
                107110(a) of this title.
Sec. 263112. Termination
  The authorization to carry out an SBIR program under this chapter 
terminates on September 30, 2022.

                      Subchapter II--STTR Programs

Sec. 263201. Required expenditure amounts
  (a) STTR Program Budget.--
          (1) In general.--With respect to each fiscal year through 
        fiscal year 2022, 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 the percentage of the 
        extramural budget specified in paragraph (2), specifically in 
        connection with an STTR program that meets the requirements of 
        this division (including any policy directive under section 
        263203 of this title).
          (2) Expenditure amounts.--The percentage of the extramural 
        budget required to be expended by an agency in accordance with 
        paragraph (1) shall be--
                  (A) 0.35 percent for each of fiscal years 2012 and 
                2013;
                  (B) 0.40 percent for each of fiscal years 2014 and 
                2015; and
                  (C) 0.45 percent for fiscal year 2016 and each fiscal 
                year thereafter.
  (b) Limitations.--An STTR agency shall not--
          (1) use any of its STTR program 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; 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 program shall not be considered to meet any portion of the 
percentage requirement of subsection (a).
Sec. 263202. Administration by Federal agencies
  An STTR agency shall--
          (1) unilaterally determine categories of projects to be 
        included in its STTR program;
          (2) issue STTR program solicitations in accordance with a 
        schedule determined cooperatively with the Administrator;
          (3) unilaterally determine research topics within the Federal 
        agency's STTR program solicitations, giving special 
        consideration to broad research topics and to topics that 
        further 1 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)(A) unilaterally receive and evaluate proposals resulting 
        from STTR program solicitations; and
          (B) make a final decision on each proposal submitted under 
        the STTR program--
                  (i) not later than 1 year after the date on which the 
                applicable solicitation closes, if with respect to the 
                National Institutes of Health or the National Science 
                Foundation, or 90 days after the date on which the 
                applicable solicitation closes, if with respect to any 
                STTR participating agency; or
                  (ii) if the Administrator authorizes an extension for 
                a solicitation, not later than 90 days after the date 
                that would be applicable to the STTR participating 
                agency under clause (i);
          (5)(A) unilaterally select awardees for its STTR program 
        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 program funding agreements (or 
        delegate such administration to another Federal agency);
          (7)(A) make payments to recipients of STTR program 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 program; and
          (B) submit that section to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Science 
        and the Committee on Small Business of the House of 
        Representatives;
          (9) collect annually, and maintain in a common format in 
        accordance with the simplified reporting requirements under 
        section 263304 of this title, such information from applicants 
        and awardees as is necessary to assess STTR program outputs and 
        outcomes, including information necessary to maintain the 
        database under section 263301 of this title, including--
                  (A) whether an applicant or awardee--
                          (i) has venture capital, hedge fund, or 
                        private equity firm investment or is majority-
                        owned by multiple venture capital operating 
                        companies, hedge funds, or private equity firms 
                        and, if so--
                                  (I) the amount of venture capital, 
                                hedge fund, or private equity firm 
                                investment that the applicant or 
                                awardee has received as of the date of 
                                the application or award, as 
                                applicable; and
                                  (II) the amount of additional capital 
                                that the applicant or awardee has 
                                invested in the STTR technology;
                          (ii) has an investor that--
                                  (I) is an individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States and, if so, the name of any such 
                                individual; or
                                  (II) is a person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States and, if so, the name of any such 
                                person;
                          (iii) is owned by a woman or has a woman as a 
                        principal investor;
                          (iv) is owned by a socially or economically 
                        disadvantaged individual or has a socially or 
                        economically disadvantaged individual as a 
                        principal investor;
                          (v) is a faculty member or a student of an 
                        institution of higher education (as defined in 
                        section 101 of the Higher Education Act of 1965 
                        (20 U.S.C. 1001); or
                          (vi) is located in a State in which the total 
                        value of contracts awarded to small business 
                        concerns under all STTR programs 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 
                        biennial fiscal years, beginning with fiscal 
                        year 2008, based on the most recent statistics 
                        compiled by the Administrator;
                  (B) if an awardee receives an award in an amount that 
                is more than the award guidelines under this division, 
                a statement from the agency that justifies the award 
                amount; and
                  (C) data with respect to the FAST program;
          (10) adopt the agreement developed by the Administrator under 
        section 263204 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 program 
        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 
                program proposal; and
                  (C) use outside peer review, as appropriate;
          (12) develop procedures for assessing the commercial merit 
        and feasibility of STTR program proposals, as evidenced by--
                  (A) the small business concern's record of 
                successfully commercializing STTR program research or 
                other research;
                  (B) the existence of phase II funding commitments 
                from private sector or non-STTR program funding 
                sources;
                  (C) the existence of phase III 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 program, in conjunction with any such outreach done for 
        purposes of the STTR agency's SBIR program;
          (14) provide for and fully implement the tenets of Executive 
        Order 13329 (Encouraging Innovation in Manufacturing);
          (15) provide timely notice to the Administrator of any case 
        or controversy before any Federal judicial or administrative 
        tribunal concerning the STTR program of the Federal agency; and
          (16) annually submit to the Administrator and the Office of 
        Science and Technology Policy a report on its STTR program.
Sec. 263203. Policy directive
  (a) Issuance.--The Administrator shall issue a policy directive for 
the general conduct of the STTR programs within the Federal Government.
  (b) Consultation.--The STTR program 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 Administrator for Federal Procurement Policy.
  (c) Contents.--The policy directive required by subsection (a) shall 
provide for--
          (1) simplified, standardized, and timely STTR program 
        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 phase 
                II of the Federal agency's STTR program for a period of 
                not less than 2 years, beginning on the initial date of 
                the small business concern's participation in phase III 
                of the STTR program;
                  (G) cost sharing;
                  (H) cost principles and payment schedules; and
                  (I)(i) 1-year awards for phase I of an STTR program, 
                generally not to exceed $150,000 (which amount the 
                Administrator shall adjust annually for inflation), 
                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 phase II of the STTR program, 
                generally not to exceed $1,000,000 (which amount the 
                Administrator shall adjust annually for inflation), 
                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 program;
          (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 program 
                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 program enters into a follow-on, non-STTR 
        program 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 phase I, phase II, and phase III awards.
Sec. 263204. Model agreement for intellectual property rights
  (a) In General.--The Administrator shall promulgate regulations 
establishing a single model agreement for use in an STTR program 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.
Sec. 263205. Phase 0 proof of concept partnership pilot program
  (a) Definitions.--In this section:
          (1) Director.--The term ``Director'' means the Director of 
        the National Institutes of Health.
          (2) Participating research institution.--The term 
        ``participating research institution'' means a university or 
        other research institution that participates in the National 
        Institutes of Health's STTR program.
          (3) Pilot program.--The term ``pilot program'' means the 
        proof of concept partnership pilot program under subsection 
        (b).
  (b) In General.--The Director may use $5,000,000 of the funds 
allocated under section 263201(a) of this title for a proof of concept 
partnership pilot program to accelerate the creation of small 
businesses and the commercialization of research innovations from 
participating research institutions. To implement the pilot program, 
the Director shall award, through a competitive, merit-based process, 
grants to participating research institutions. The grants shall be used 
only to administer proof of concept partnership awards in conformity 
with this section.
  (c) Proof of Concept Partnerships.--
          (1) In general.--A proof of concept partnership shall be 
        established by a participating research institution to award 
        grants to individual researchers. The grants should provide 
        researchers with the initial investment and the resources to 
        support the proof of concept work and commercialization 
        mentoring needed to translate promising research projects and 
        technologies into a viable company. The work may include 
        technical validations, market research, clarifying intellectual 
        property rights position and strategy, and investigating 
        commercial or business opportunities.
          (2) Award guidelines.--The administrator of a proof of 
        concept partnership shall award grants in accordance with the 
        following guidelines:
                  (A) Oversight process.--The proof of concept 
                partnership shall use a market-focused project 
                management oversight process, including--
                          (i) a rigorous, diverse review board 
                        comprised of local experts in translational and 
                        proof of concept research, including industry, 
                        startup, venture capital, technical, financial, 
                        and business experts and university technology 
                        transfer officials;
                          (ii) technology validation milestones focused 
                        on market feasibility;
                          (iii) simple reporting effective at 
                        redirecting projects; and
                          (iv) the willingness to reallocate funding 
                        from failing projects to projects with more 
                        potential.
                  (B) Maximum amount toward individual proposal.--Not 
                more than $100,000 shall be awarded toward an 
                individual proposal.
          (3) Educational resources and guidance.--The administrator of 
        a proof of concept partnership shall make educational resources 
        and guidance available to researchers attempting to 
        commercialize their innovations.
  (d) Awards by the Director to Participating Research Institutions.--
          (1) Amount.--The Director may make an award to a 
        participating research institution for not more than $1,000,000 
        per year for not more than 3 years.
          (2) Criteria.--In determining which participating research 
        institutions receive pilot program grants, the Director shall 
        consider, in addition to any other criteria that the Director 
        determines to be necessary, the extent to which participating 
        research institutions--
                  (A) have an established and proven technology 
                transfer or commercialization office and have a plan 
                for engaging the commercialization office in the pilot 
                program's implementation;
                  (B) have demonstrated a commitment to local and 
                regional economic development;
                  (C) are located in diverse geographies and are of 
                diverse sizes;
                  (D) are able to assemble project management boards 
                comprised of industry, startup, venture capital, 
                technical, financial, and business experts;
                  (E) have an intellectual property rights strategy or 
                office; and
                  (F) demonstrate a plan for sustainability beyond the 
                duration of the award.
  (e) No Basic Research; Evaluation of Commercial Potential of Existing 
Discoveries.--The funds for the pilot program shall not be used for 
basic research, but shall be used to evaluate the commercial potential 
of existing discoveries, including--
          (1) proof of concept research or prototype development; and
          (2) activities that contribute to determining a project's 
        commercialization path, to include technical validations, 
        market research, clarifying intellectual property rights, and 
        investigating commercial and business opportunities.
  (f) No Acquisition of Research Equipment or Supplies.--The funds for 
the pilot program shall not be used to fund the acquisition of research 
equipment or supplies unrelated to commercialization activities.
  (g) Evaluative Report.--
          (1) In general.--The Director shall submit to the Committee 
        on Science, Space, and Technology and Committee on Small 
        Business of the House of Representatives and the Committee on 
        Small Business and Entrepreneurship of the Senate an evaluative 
        report regarding the activities of the pilot program.
          (2) Contents.--The report shall include--
                  (A) a detailed description of the institutional and 
                proposal selection process;
                  (B) an accounting of the funds used in the pilot 
                program;
                  (C) a detailed description of the pilot program, 
                including incentives and activities undertaken by 
                review board experts;
                  (D) a detailed compilation of results achieved by the 
                pilot program, including the number of small business 
                concerns included, the number of business packages 
                developed, and the number of projects that progressed 
                into subsequent STTR phases; and
                  (E) an analysis of the pilot program's effectiveness 
                with supporting data.
  (h) Termination.--The pilot program shall terminate at the end of 
fiscal year 2017.

  Subchapter III--Provisions Relating to Both SBIR Programs and STTR 
                                Programs

Sec. 263301. 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 phase I or phase II SBIR program or STTR 
        award from a Federal agency;
          (2) a description of each phase I or phase II SBIR program 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 program or STTR award is made;
          (4) information regarding mentors and mentoring networks, as 
        required by section 263305(f)(3) of this title;
          (5) with respect to assistance under STTR program--
                  (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; and
          (6) for each small business concern that receives a phase I 
        or phase II SBIR award or STTR award from a Federal agency, 
        whether the small business concern--
                  (A) has venture capital, hedge fund, or private 
                equity firm investment and, if so, whether the small 
                business concern is registered as majority-owned by 
                multiple venture capital operating companies, hedge 
                funds, or private equity firms as required under 
                section 263109(c) of this title;
                  (B) is owned by a woman or has a woman as a principal 
                investor;
                  (C) is owned by a socially or economically 
                disadvantaged individual or has a socially or 
                economically disadvantaged individual as a principal 
                investor;
                  (D) is owned by a faculty member or a student of an 
                institution of higher education (as defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001); or
                  (E) received assistance under the FAST Program.
  (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 small business concern that 
                applies for, submits a proposal for, or receives an 
                award under phase I or phase II of the SBIR program or 
                STTR program--
                          (i) the name, size, and location of, and the 
                        identifying number assigned by the 
                        Administrator to, the small business concern;
                          (ii) an abstract of the applicable project;
                          (iii) the specific aims of the project;
                          (iv) the number of employees of the small 
                        business concern;
                          (v) the names and titles of the key 
                        individuals that will carry out the project, 
                        the position each key individual holds in the 
                        small business concern, and contact information 
                        for each key individual;
                          (vi) the percentage of effort that each 
                        individual described in clause (v) will 
                        contribute to the project;
                          (vii) whether the small business concern is 
                        majority-owned by multiple venture capital 
                        operating companies, hedge funds, or private 
                        equity firms; and
                          (viii) the Federal agency to which the 
                        application is made and contact information for 
                        the person or office within the Federal agency 
                        that is responsible for reviewing applications 
                        and making awards under the SBIR program or 
                        STTR program;
                  (B) contains for each phase II 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 phase I or phase II SBIR 
                        program 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 
                        program and STTR program managers of Federal 
                        agencies, considers relevant and appropriate;
                  (C) includes any narrative information that a small 
                business concern receiving a phase II award voluntarily 
                submits to further describe the outputs and outcomes of 
                its awards;
                  (D) includes, for each awardee--
                          (i) the name, size, and location of, and any 
                        identifying number assigned by the 
                        Administrator to, the awardee;
                          (ii) whether the awardee has venture capital, 
                        hedge fund, or private equity firm investment 
                        and, if so--
                                  (I) the amount of venture capital, 
                                hedge fund, or private equity firm 
                                investment as of the date of the award;
                                  (II) the percentage of ownership of 
                                the awardee held by a venture capital 
                                operating company, hedge fund, or 
                                private equity firm, including whether 
                                the awardee is majority-owned by 
                                multiple venture capital operating 
                                companies, hedge funds, or private 
                                equity firms; and
                                  (III) the amount of additional 
                                capital that the awardee has invested 
                                in the SBIR or STTR technology, which 
                                information shall be collected on an 
                                annual basis;
                          (iii) the names and locations of any 
                        affiliates of the awardee;
                          (iv) the number of employees of the awardee;
                          (v) the number of employees of the affiliates 
                        of the awardee; and
                          (vi) the names of, and the percentage of 
                        ownership of the awardee held by--
                                  (I) any individual who is not a 
                                citizen of the United States or a 
                                lawful permanent resident of the United 
                                States; or
                                  (II) any person that is not an 
                                individual and is not organized under 
                                the laws of a State or the United 
                                States;
                  (E) includes any other data collected by or available 
                to any Federal agency that the Federal agency considers 
                may be useful for SBIR program or STTR program 
                evaluation; and
                  (F) includes a timely and accurate list of any 
                individual or small business concern that has 
                participated in the SBIR program or STTR program that 
                has been--
                          (i) convicted of a fraud-related crime 
                        involving funding received under the SBIR 
                        program or STTR program; or
                          (ii) found civilly liable for a fraud-related 
                        violation involving funding received under the 
                        SBIR program or STTR program.
          (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 
        phase II award under this division shall be required to update 
        information in the database established under this section for 
        any prior phase II 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 1 phase II 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 
                phase II award under this division shall update 
                information in the database concerning that award at 
                the termination of the award period.
                  (B) Voluntary updates.--An SBIR agency 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.
          (4) Government database.--Not later than 60 days after the 
        date established by a Federal agency for submitting 
        applications or proposals for a phase I or phase II award under 
        the SBIR program or STTR program, the head of the Federal 
        agency shall submit to the Administrator the data required 
        under subsection (b) with respect to each small business 
        concern that applies or submits a proposal for the phase I or 
        phase II award.
  (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. 263302. Phase III agreements
  (a) In General.--In the case of a small business concern that is 
awarded a funding agreement for phase II of an SBIR program or STTR 
program, a Federal agency may enter into a phase III agreement with the 
small business concern for additional work to be performed during or 
after phase II period.
  (b) Procedures.--The phase II funding agreement with the small 
business concern may, at the discretion of the Federal agency awarding 
the agreement, set out the procedures applicable to phase III 
agreements with that Federal agency or any other Federal agency.
  (c) Intellectual Property Rights.--A funding agreement under an SBIR 
program or STTR program 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.
  (d) Phase III Awards.--To the greatest extent practicable, a Federal 
agency or Federal prime contractor shall issue a phase III award 
relating to technology, including a sole source award, to the SBIR 
award recipient or STTR award recipient that developed the technology.
Sec. 263303. Inclusion of SBIR program and STTR program information in 
                    strategic plans
  Program information relating to SBIR programs and STTR programs 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. 263304. Reduction of paperwork and compliance burden
  (a) In General.--
          (1) Standardization of reporting requirements.--The 
        Administrator shall work with SBIR agencies and STTR agencies 
        to standardize reporting requirements for the collection of 
        data from SBIR program or STTR program applicants and awardees, 
        including data for inclusion in the database under section 
        263301 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.
          (2) Minimization of Burden.--The reporting requirements 
        described in paragraph (1) shall be designed to minimize the 
        burden on small business concerns.
  (b) Simplification of Application and Award Process.--After a period 
of public comment, the Administrator shall issue regulations or 
guidelines, taking into consideration the unique needs of each Federal 
agency, to ensure that each SBIR agency and STTR agency simplifies and 
standardizes the program proposal, selection, contracting, compliance, 
and audit procedures for the SBIR program or STTR program of the SBIR 
agency or STTR agency (including procedures relating to overhead rates 
for applicants and documentation requirements) to reduce the paperwork 
and regulatory compliance burden on small business concerns applying to 
and participating in the SBIR program or STTR program.
Sec. 263305. FAST 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 program and STTR 
        program process, from application to award and successful 
        completion of each phase of an SBIR program or STTR program.
          (3) Catastrophic incident.--The term ``catastrophic 
        incident'' means a major disaster that is comparable to the 
        description of a catastrophic incident in the National Response 
        Plan of the Administration (or any successor to the plan).
          (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 Federal and State technology partnership program, to be known as the 
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, the 
        Administrator and the SBIR program 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 program, including initiatives--
                          (i) to make grants or loans to companies to 
                        pay a portion or all of the cost of developing 
                        SBIR program 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 SBIR 
                                programs and STTR programs as good 
                                candidates for SBIR programs and STTR 
                                programs; and
                                  (II) would benefit from mentoring, in 
                                accordance with subsection (f);
                          (iii) to create or participate in a training 
                        program for individuals providing SBIR program 
                        outreach and assistance at the State and local 
                        levels; and
                          (iv) to encourage the commercialization of 
                        technology developed through SBIR program 
                        funding.
          (2) Selection considerations.--In making awards or entering 
        into cooperative agreements under this section, the 
        Administrator and the SBIR program 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 program;
                  (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 phase I 
                        and phase II 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 programs and 
                                STTR programs; and
                  (C) shall give special consideration to an applicant 
                that is located in an area affected by a catastrophic 
                incident.
          (3) Proposal limit.--Not more than 1 proposal may be 
        submitted for inclusion in the FAST program to provide services 
        in any 1 State in any 1 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).
          (5) Additional assistance for catastrophic incidents.--Upon 
        application by an applicant that receives an award or has in 
        effect a cooperative agreement under this section and that is 
        located in an area affected by a catastrophic incident, the 
        Administrator may--
                  (A) provide additional assistance to the applicant; 
                and
                  (B) waive the matching requirements under subsection 
                (e)(2).
  (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 
                Authorization 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) \1/3\, in the case of a recipient 
                                that will serve small business concerns 
                                located in 1 of the 18 States receiving 
                                the fewest SBIR program phase I awards;
                                  (II) except as provided in 
                                subparagraph (B), \1/2\, in the case of 
                                a recipient that will serve small 
                                business concerns located in 1 of the 
                                16 States receiving the greatest number 
                                of SBIR program phase I awards; and
                                  (III) except as provided in 
                                subparagraph (B), \3/7\, 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 program phase I 
                                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 \1/3\.
                  (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 program or STTR program;
                  (B) identify volunteer mentors who--
                          (i) are persons associated with a small 
                        business concern that has successfully 
                        completed 1 or more SBIR program or STTR 
                        program funding agreements; and
                          (ii) have agreed to guide small business 
                        concerns through all stages of the SBIR program 
                        or STTR program 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) phase III partners;
                                  (VIII) commercialization;
                                  (IX) venture capital networking; and
                                  (X) other matters relevant to the 
                                SBIR programs and STTR programs;
                  (C) have experience working with small business 
                concerns participating in the SBIR programs and STTR 
                programs;
                  (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 
                263301 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 
terminates on September 30, 2005.
Sec. 263306. Innovation in energy efficiency
  (a) Federal Agency Energy-Related Priority.--In carrying out its 
duties under this division relating to SBIR program and STTR program 
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 
        107110(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 issue guidelines and 
directives to assist Federal agencies in meeting the requirements of 
this section.
Sec. 263307. Competitive selection procedures
  All funds awarded, appropriated, or otherwise made available in 
accordance with section 263101 or 263201 of this title shall be awarded 
pursuant to competitive and merit-based selection procedures.
Sec. 263308. Award amounts in excess of guidelines
  (a) Prohibition.--
          (1) In general.--A Federal agency shall not issue an award 
        under the SBIR program or STTR program if the amount of the 
        award would exceed the award guidelines established under this 
        section by more than 50 percent.
          (2) Waiver for specific topic.--On the receipt of an 
        application from an SBIR agency or STTR agency, the 
        Administrator may grant a waiver from the prohibition under 
        paragraph (1) with respect to a specific topic (but not for the 
        SBIR agency or STTR agency as a whole) for a fiscal year if the 
        Administrator determines, based on the information contained in 
        the application from the SBIR agency or STTR agency, that--
                  (A) the requirement under paragraph (1) will 
                interfere with the ability of the SBIR agency or STTR 
                agency to fulfill its research mission through the SBIR 
                program or STTR program; and
                  (B) the SBIR agency or STTR agency will minimize, to 
                the maximum extent possible, the number of awards that 
                do not satisfy the prohibition under paragraph (1) to 
                preserve the nature and intent of the SBIR program and 
                the STTR program.
  (b) Maintenance of Information.--An SBIR agency and an STTR agency 
shall maintain information on awards exceeding the guidelines 
established under this division, including, for each such award--
          (1) the amount of the award;
          (2) a justification for exceeding the guidelines for the 
        award;
          (3) the identity and location of the award recipient; and
          (4) whether the award recipient has received any venture 
        capital, hedge fund, or private equity firm investment and, if 
        so, whether the recipient is majority-owned by multiple venture 
        capital operating companies, hedge funds, or private equity 
        firms.
  (c) Rule of Construction.--Nothing in this section shall be construed 
to preclude an SBIR agency or STTR agency from supplementing an award 
under the SBIR program or STTR program using funds of the SBIR agency 
or STTR agency that are not part of the SBIR program or STTR program of 
the SBIR agency or STTR agency.
Sec. 263309. Subsequent phase II awards
  (a) Agency Flexibility.--A small business concern that receives a 
phase I award from a Federal agency under this division shall be 
eligible to receive a subsequent phase II award from another Federal 
agency if--
          (1) the head of each relevant Federal agency or the relevant 
        component of the Federal agency makes a written determination 
        that the topics of the relevant awards are the same; and
          (2) both Federal agencies report the awards to the 
        Administrator for inclusion in the public database under 
        section 263301 of this title.
  (b) SBIR and STTR Program Flexibility.--
          (1) In general.--A small business concern that receives a 
        phase I award under this division under the SBIR program or 
        STTR program may receive a subsequent phase II award under 
        either the SBIR program or the STTR program.
          (2) Reporting.--The participating Federal agency or agencies 
        shall report awards referred to in paragraph (1) to the 
        Administrator for inclusion in the public database under 
        section 263301 of this title.
  (c) Prevention of Duplicative Awards.--The head of a Federal agency 
shall verify that any activity to be performed with respect to a 
project with a phase I or phase II SBIR or STTR award has not been 
funded under the SBIR program or STTR program of another Federal 
agency.
Sec. 263310. Collaboration with Federal laboratories and research and 
                    development centers
  (a) Authorization.--Subject to the limitations under this section, 
the head of an SBIR participating agency or STTR participating agency 
may make an SBIR award or STTR award to any eligible small business 
concern that--
          (1) intends to enter into an agreement with a Federal 
        laboratory or federally funded research and development center 
        for a portion of the activities to be performed under the 
        award; or
          (2) enters into a cooperative research and development 
        agreement (as defined in section 12(d) of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.S. 3710a(d)) with a 
        Federal laboratory.
  (b) Prohibition.--A Federal agency shall not--
          (1) condition an SBIR award or STTR award on a small business 
        concern's entering into an agreement with any Federal 
        laboratory or any federally funded laboratory or research and 
        development center for any portion of the activities to be 
        performed under the award;
          (2) approve an agreement between a small business concern 
        receiving an SBIR award or STTR award and a Federal laboratory 
        or federally funded laboratory or research and development 
        center, if the small business concern performs a lesser portion 
        of the activities to be performed under the award than required 
        by this section and by the SBIR policy directives and the STTR 
        policy directive of the Administrator; or
          (3) approve an agreement that violates any provision, 
        including any data rights protections provision, of this 
        section or the SBIR Directives and the STTR policy directive.
  (c) Implementation.--The SBIR policy directives and the STTR policy 
directive issued under this division shall ensure that small business 
concerns--
          (1) have the flexibility to use the resources of the Federal 
        laboratories or federally funded research and development 
        centers; and
          (2) are not required to enter into agreement with any Federal 
        laboratory or any federally funded laboratory or research and 
        development center as a condition of an award.
  (d) Advance payment.--If a small business concern that receives an 
award under this division enters into an agreement with a Federal 
laboratory or federally funded research and development center for a 
portion of the activities to be performed under the award, the Federal 
laboratory or federally funded research and development center shall 
not require advance payment from the small business concern in an 
amount greater than the amount necessary to pay for 30 days of the 
activities.
Sec. 263311. Sequential SBIR awards and STTR awards for continued work 
                    on a project
  A small business concern that receives a phase II SBIR award or phase 
II STTR award for a project remains eligible to receive 1 additional 
phase II SBIR award or phase II STTR award for continued work on the 
project.
Sec. 263312. Prevention of duplicative awards
  The head of a Federal agency shall verify that any activity to be 
performed with respect to a project with a phase I or phase II SBIR 
award or STTR award has not been funded under the SBIR program or STTR 
program of another Federal agency.
Sec. 263313. Discretionary technical assistance
  (a) In General.--An SBIR agency or STTR agency may enter into an 
agreement with a vendor selected under subsection (b) to provide small 
business concerns engaged in SBIR projects or STTR 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 or STTR agency may select a 
        vendor to assist small business concerns in meeting the goals 
        listed in subsection (a) for a term not to exceed 5 years.
          (2) Competition.--Selection of a vendor shall be competitive 
        and shall use merit-based criteria.
  (c) Additional Technical Assistance.--
          (1) In general.--An SBIR agency or STTR agency may--
                  (A) provide to a phase I or phase II SBIR award or 
                STTR award recipient, through a vendor selected under 
                subsection (b), the services described in subsection 
                (a) in an amount equal to not more than $5,000 per 
                year; or
                  (B) authorize a phase I or phase II SBIR award or 
                STTR award recipient to purchase the services described 
                in subsection (a) in an amount equal to not more than 
                $5,000 per year, which shall be in addition to the 
                amount of the recipient's award.
          (2) Flexibility.--In carrying out paragraph (1), an SBIR 
        agency or STTR agency shall provide the allowable amounts to a 
        recipient that meets the eligibility requirements under the 
        paragraph if the recipient requests to seek technical 
        assistance from an individual or entity other than the vendor 
        selected under subsection (b) by the SBIR agency or STTR 
        agency.
          (3)  Limitation.--An SBIR agency or STTR agency shall not--
                  (A) use the amounts authorized under paragraph (1) 
                unless the vendor selected under subsection (b) 
                provides the technical assistance to the recipient; or
                  (B) enter a contract with a vendor under subsection 
                (b) under which the amount provided for technical 
                assistance is based on the total number of phase I or 
                phase II awards.
Sec. 263314. Commercialization readiness programs
  (a) Department of Defense and Military Departments.--
           (1) In general.--The Secretary of Defense or Secretary of a 
        military department may create and administer a 
        commercialization readiness program to accelerate the 
        transition of technologies, products, and services developed 
        under the SBIR program or STTR program of the Department of 
        Defense or of the military department to phase III, including 
        the acquisition process.
          (2) Identification of research programs for accelerated 
        transition to acquisition process.--In carrying out a 
        commercialization readiness program, the Secretary of Defense 
        or Secretary of a military department shall identify research 
        programs of an SBIR program or STTR program that have the 
        potential for rapid transitioning to phase III and into the 
        acquisition process.
          (3) Limitation.--A research program of a military department 
        shall not be identified under paragraph (2) unless the 
        Secretary of the military department certifies in writing that 
        the successful transition of the research program to phase III 
        and into the acquisition process is expected to meet high 
        priority military requirements of the military department.
          (4) Funding.--
                  (A) In general.--The Secretary of Defense or the 
                Secretary of a military department may use not more 
                than an amount equal to 1 percent of the funds 
                available to the Department of Defense or the military 
                department pursuant to the SBIR program for payment of 
                expenses incurred to administer the commercialization 
                readiness program under this subsection.
                  (B) No use of funds for phase iii awards.--Funds 
                described in subparagraph (A) shall not be used to make 
                phase III awards.
                  (C) Inapplicability of limitations after fiscal year 
                2015.--After fiscal year 2015, funds described in 
                subparagraph (A) shall not be subject to the 
                limitations on the use of funds in section 263101(b) of 
                this title.
          (5) Insertion incentives.--For any contract with a value of 
        not less than $100,000,000, the Secretary of Defense may--
                  (A) establish goals for the transition of phase III 
                technologies in subcontracting plans; and
                  (B) require a prime contractor on the contract to 
                report the number and dollar amount of contracts 
                entered into by that prime contractor for phase III 
                SBIR projects or STTR projects.
          (6) Goal for sbir and sttr technology insertion.--The 
        Secretary of Defense shall--
                  (A) set a goal to increase the number of phase II 
                SBIR contracts and the number of phase II STTR 
                contracts awarded by the Secretary that lead to 
                technology transition into programs of record or 
                fielded systems;
                  (B) use incentives in effect on December 31, 2011, or 
                create new incentives, to encourage agency program 
                managers and prime contractors to meet the goal under 
                subparagraph (A); and
                  (C) submit to the Administrator--
                          (i) the number and percentage of phase II 
                        SBIR and STTR contracts awarded by the 
                        Secretary that led to technology transition 
                        into programs of record or fielded systems;
                          (ii) information on the status of each 
                        project that received funding through the 
                        commercialization readiness program and efforts 
                        to transition those projects into programs of 
                        record or fielded systems; and
                          (iii) a description of each incentive that 
                        has been used by the Secretary under 
                        subparagraph (B) and the effectiveness of that 
                        incentive with respect to meeting the goal 
                        under subparagraph (A).
          (7) Effect of subsection.--The authority to create and 
        administer a commercialization readiness program under this 
        subsection shall not be construed to eliminate or replace any 
        other part of the SBIR program or STTR program that enhances 
        the insertion or transition of SBIR or STTR technologies.
  (b) Federal Agencies Other than the Department of Defense.--
          (1) In general.--On approval of an application under 
        paragraph (2), the head of an SBIR participating agency or STTR 
        participating agency other than the Department of Defense may 
        establish a pilot program under which the agency head may 
        allocate not more than 10 percent of the funds allocated to the 
        SBIR program or STTR program of the SBIR participating agency 
        or STTR participating agency--
                  (A) for awards for technology development, testing, 
                evaluation, and commercialization assistance for SBIR 
                or STTR phase II technologies; or
                  (B) to support the progress of research, research and 
                development, and commercialization conducted under the 
                SBIR program or STTR program to phase III.
          (2) Application.--
                  (A) Submission.--The head of an SBIR participating 
                agency or STTR participating agency may establish a 
                pilot program under paragraph (1) if the agency head, 
                not later than 90 days before the 1st day of the fiscal 
                year in which the pilot program is to be established, 
                submits to the Administrator a written application that 
                describes a compelling reason, including unusually high 
                regulatory, systems integration, or other costs 
                relating to development or manufacturing of 
                identifiable, highly promising small business 
                technologies or a class of small business technologies 
                expected to substantially advance the mission of the 
                Federal agency, why additional investment in SBIR or 
                STTR technologies is necessary.
                  (B) Determination.--The Administrator shall--
                          (i) make a determination whether to approve 
                        an application under subparagraph (A) not later 
                        than 30 days before the first day of the fiscal 
                        year for which the application is submitted;
                          (ii) publish the determination in the Federal 
                        Register; and
                          (iii) make a copy of the determination and 
                        any related materials available to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business and Committee on 
                        Science, Space, and Technology of the House of 
                        Representatives.
          (3) Consideration of likelihood of domestic manufacture.--In 
        making an award under this subsection, an agency head shall 
        consider whether the technology to be supported by the award is 
        likely to be manufactured in the United States.
          (4) Maximum amount of award.--An agency head shall not make 
        an award under the pilot program under paragraph (1) in excess 
        of the amount that is equal to 3 times the dollar amounts 
        generally established for phase II awards under subsection 
        section 263104(b)(10) or 263203(c)(2)(I) of this title.
          (5) Registration.--The recipient an award under a pilot 
        program under paragraph (1) shall register with the 
        Administrator in a registry that is available to the public.
          (6) Report.--The head of a Federal agency that carries out a 
        pilot program under paragraph (1) shall include in the annual 
        report of the Federal agency to the Administrator--
                  (A) an analysis of the various activities considered 
                for inclusion in the pilot program; and
                  (B) a statement of the reasons why each activity 
                considered was included or not included, as the case 
                may be.
          (7) Termination of authority.--The authority to establish a 
        pilot program under this subsection expires at the end of 
        fiscal year 2017.
Sec. 263315. Timing of release of funding
  An SBIR participating agency or STTR participating agency shall, to 
the extent possible, attempt to shorten the amount of time between the 
provision of notice of an award under the SBIR program or STTR program 
and the subsequent release of funding under the award.
Sec. 263316. Reporting on timing of final decisions on proposals and 
                    releases of funding
  An SBIR participating agency or STTR participating agency shall 
provide the Administrator--
          (1) the average length of time that the SBIR participating 
        agency or STTR participating agency takes to make a final 
        decision on proposals submitted under the SBIR program or STTR 
        program;
          (2) the average length of time that the SBIR participating 
        agency or STTR participating agency takes to release funding 
        under an award under the SBIR program or STTR program; and
          (3) the goals established to reduce those lengths of time.
Sec. 263317. Release of contact information to economic development 
                    organizations
  (a) Consent of Small Business Concern.--An SBIR agency or STTR agency 
shall provide a means by which a small business concern that is an SBIR 
applicant or an STTR applicant may indicate to the SBIR agency or STTR 
agency whether the SBIR agency or STTR agency has the consent of the 
small business concern to--
          (1) identify the small business concern to appropriate local 
        and State economic development organizations as an SBIR 
        applicant or an STTR applicant; and
          (2) release the contact information of the small business 
        concern to the economic development organizations.
  (b) Rules.--The Administrator shall issue rules to implement this 
section. The rules shall include a requirement that an SBIR agency or 
STTR agency include in the SBIR or STTR application a provision under 
which an applicant may indicate consent for purposes of subsection (a).
Sec. 263318. Prevention of fraud, waste, and abuse
  (a) In General.--The SBIR policy directives under section 263104 of 
this title and the STTR policy directive under section 263203 of this 
title shall include measures to prevent fraud, waste, and abuse in the 
SBIR program and STTR program.
  (b) Contents.--The measures required under subsection (a) include--
          (1) definitions or descriptions of fraud, waste, and abuse;
          (2) guidelines for the monitoring and oversight of applicants 
        to and recipients of awards under the SBIR program or STTR 
        program;
          (3) a requirement that an SBIR participating agency or STTR 
        participating agency include information concerning the method 
        established by the Inspector General of the SBIR participating 
        agency or STTR participating agency to report fraud, waste, and 
        abuse (including any telephone hotline or web-based platform)--
                  (A) on the website of the SBIR participating agency 
                or STTR participating agency; and
                  (B) in any solicitation or notice of funding 
                opportunity issued by the SBIR participating agency or 
                STTR participating agency for the SBIR program or STTR 
                program; and
          (4) a requirement that an applicant for and a small business 
        concern that receives funding under the SBIR program or STTR 
        program shall certify whether the applicant or small business 
        concern is in compliance with the laws relating to the SBIR 
        program and the STTR program and the conduct guidelines 
        established under the SBIR policy directives and the STTR 
        policy directive.
  (c) Procedures and Requirements for Certification.--
          (1) In general.--In consultation with the Council of 
        Inspectors General on Integrity and Efficiency, and after 
        providing notice and an opportunity for public comment, the 
        Administrator shall develop procedures and requirements for a 
        certification under subsection (b)(4).
          (2) Contents.--The form of certification developed under 
        paragraph (1) may--
                  (A) cover the lifecycle of an award to require 
                certifications at the application, funding, reporting, 
                and closeout phases of every SBIR award and STTR award;
                  (B) require the small business concern to certify 
                compliance with the principal investor primary 
                employment requirement, the small business concern 
                definition requirement, and the performance of work 
                requirements as set forth in the directive applicable 
                to the award;
                  (C) require a small business concern to disclose 
                whether the small business concern has applied for, has 
                plans to apply for, or has received an SBIR award or 
                STTR award for identical or essentially equivalent work 
                (as defined under the SBIR policy directives and the 
                STTR policy directive), and require the small business 
                concern to certify that the award that the small 
                business concern is applying for or obtaining funding 
                for is not identical or essentially equivalent to work 
                that the small business concern has performed, or will 
                perform, in connection with any other SBIR award or 
                STTR award that the small business concern has applied 
                for or has received from any other agency except as 
                fully disclosed to all funding agencies; and
                  (D) require that the small business concern certify 
                that the small business concern will perform or did 
                perform the work on the award at its facilities with 
                its employees, unless otherwise indicated.
  (d) Inspectors General.--The Inspector General of a participating 
SBIR agency or participating SBIR agency shall cooperate to prevent 
fraud, waste, and abuse in the SBIR program and STTR program by--
          (1) establishing fraud detection indicators;
          (2) reviewing regulations and operating procedures of the 
        participating SBIR agency or participating SBIR agency;
          (3) coordinating information sharing between Federal 
        agencies, to the extent otherwise permitted under Federal law; 
        and
          (4) improving the education and training of and outreach to--
                  (A) administrators of the SBIR program and the STTR 
                program of the participating SBIR agency or 
                participating SBIR agency;
                  (B) applicants to the SBIR program or STTR program; 
                and
                  (C) recipients of awards under the SBIR program or 
                STTR program.
Sec. 263319. Competitive selection procedures
  All funds awarded, appropriated, or otherwise made available in 
accordance with section 263101 or 263201 of this title shall be awarded 
pursuant to competitive and merit-based selection procedures.
Sec. 263320. Limitation on pilot programs
  (a) Definition of Covered Pilot Program.--In this section, the term 
``covered pilot program'' means an initiative, project, innovation, or 
other activity that--
          (1) is established by the Administrator;
          (2) relates to an SBIR program or STTR program; and
          (3) is not specifically authorized by law.
  (b) Pilot Programs In Operation on December 31, 2011.--The 
Administrator may carry out a covered pilot program that is in 
operation on December 31, 2011, only until December 31, 2014.
  (c) Pilot Programs Established After December 31, 2011.--The 
Administrator may carry out a covered pilot program established after 
December 31, 2011--
          (1) only for a period of 3 years period beginning on the date 
        on which the covered pilot program is established; and
          (2) if the covered pilot program does not continue and is not 
        based on, in any manner, a previously established covered pilot 
        program.
Sec. 263321. Minimum standards for participation
  (a) Progress to Phase II Success.--
          (1) Establishment of system and minimum commercialization 
        rate.--The head of an SBIR participating agency or STTR 
        participating agency shall--
                  (A) establish a system to measure, where appropriate, 
                the success of small business concerns with respect to 
                the receipt of phase II SBIR awards or STTR awards for 
                projects that have received phase I SBIR awards or STTR 
                awards;
                  (B) establish a minimum performance standard for 
                small business concerns with respect to the receipt of 
                phase II SBIR awards or STTR awards for projects that 
                have received phase I SBIR awards or STTR awards; and
                  (C) begin evaluating, each fiscal year, whether each 
                small business concern that received a phase I SBIR 
                award or STTR award from the SBIR participating agency 
                or STTR participating agency meets the minimum 
                performance standard established under subparagraph 
                (B).
          (2) Consequence of failure to meet minimum commercialization 
        rate.--If the head of an SBIR participating agency or STTR 
        participating agency determines that a small business concern 
        that received a phase I SBIR award or STTR award from the SBIR 
        participating agency or STTR participating agency is not 
        meeting the minimum performance standard established under 
        paragraph (1)(B), the small business concern shall not 
        participate in phase I (or phase II if under the authority of 
        section 263108 of this title) of the SBIR program or STTR 
        program of the SBIR participating agency or STTR participating 
        agency during the 1-year period beginning on the date on which 
        the determination is made.
  (b) Progress to Phase III Success.--
          (1) Establishment of system and minimum commercialization 
        rate.--Not later than December 31, 2013, the head of an SBIR 
        participating agency or STTR participating agency shall--
                  (A) establish a system to measure, where appropriate, 
                the success of small business concerns with respect to 
                the receipt of phase III SBIR awards or STTR awards for 
                projects that have received phase I SBIR awards or STTR 
                awards;
                  (B) establish a minimum performance standard for 
                small business concerns with respect to the receipt of 
                phase III SBIR awards or STTR awards for projects that 
                have received phase I SBIR awards or STTR awards; and
                  (C) begin evaluating, each fiscal year, whether each 
                small business concern that received a phase I SBIR 
                award or STTR award from SBIR participating agency or 
                STTR participating agency meets the minimum performance 
                standard established under subparagraph (B).
          (2) Consequence of failure to meet minimum commercialization 
        rate.--If the head of an SBIR participating agency or STTR 
        participating agency determines that a small business concern 
        that received a phase I SBIR award or STTR award from the SBIR 
        participating agency or STTR participating agency is not 
        meeting the minimum performance standard established under 
        paragraph (1)(B), the small business concern shall not 
        participate in phase I (or phase II if under the authority of 
        section 263108 of this title) of the SBIR program or STTR 
        program of the SBIR participating agency or STTR participating 
        agency during the 1-year period beginning on the date on which 
        the determination is made.
  (c) SBA oversight.--
          (1) Approval and publication of systems and minimum 
        performance standards.--A system and minimum performance 
        standard established under subsection (a) or (b) shall be 
        submitted to the Administrator by the head of an SBIR 
        participating agency or STTR participating agency and shall be 
        subject to the approval of the Administrator. In making a 
        determination with respect to approval, the Administrator shall 
        ensure that the minimum performance standard exceeds a de 
        minimis level. The Administrator shall publish on the SBA 
        website the systems and minimum performance standards approved.
          (2) Submission of evaluation results by agency.--The head of 
        an SBIR participating agency or STTR participating agency shall 
        submit to the Administrator the results of each evaluation 
        conducted under subsection (a) or (b).
  (d) Notice and Comment.--At least 60 days before becoming effective, 
a system and minimum performance standard established under subsection 
(a) or (b) and an approval provided by the Administrator under 
subsection (c)(1) shall be preceded by the provision of notice of and 
an opportunity for public comment on the system, standard, or approval.
Sec. 263322. Publication of information relating to notice of and 
                    application for SBIR awards and STTR awards
  To increase the number of small business concerns that receive awards 
under the SBIR or STTR programs of SBIR participating agencies and STTR 
participating agencies, and to simplify the application process for 
SBIR awards and STTR awards, the Administrator shall maintain a website 
on which the Administrator shall publish such information relating to 
notice of and application for awards under the SBIR program and STTR 
program of each SBIR participating agency and STTR participating agency 
as the Administrator determines to be appropriate.

         Division J--Small Business Development Center Program

         Chapter 271--Small Business Development Center Program

Sec.
271101.  Definitions.
271102.  Financial assistance agreements.
271103.  Plans.
271104.  Services.
271105.  Export enhancement plans.
271106.  Assistance from Federal laboratories.
271107.  Assistance from the National Science Foundation.
271108.  Assistance from the National Aeronautics and Space 
          Administration.
271109.  National Small Business Development Center Advisory Board.
271110.  Small business development center advisory boards.
271111.  Program examination and accreditation.
271112.  Limitations on authority.
271113.  Prohibition of fees for counseling service.
271114.  Veterans assistance and services program.
271115.  Grants for small business development centers
Sec. 271101. 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; 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.
          (6) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, and American 
        Samoa.
Sec. 271102. 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);
          (5) access to business analysts that can refer small business 
        concerns to available experts; and
          (6) to the extent practicable, assistance in furtherance of 
        the Small Business Development Center Cyber Strategy developed 
        under section 1841(a) of the National Defense Authorization Act 
        for Fiscal Year 2017 (Public Law 114-328, 130 Stat. 2662).
  (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 to provide services to the small 
        business community.
  (c) Term.--The term of a financial assistance agreement shall be made 
on a calendar year or Federal fiscal year basis.
  (d) Cooperation To Provide International Trading Services.--
          (1) Information and services.--A small business development 
        center shall work in close cooperation with SBA regional 
        offices and SBA district offices, the Department of Commerce, 
        appropriate Federal, State, and local agencies (including State 
        trade 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.
          (2) Cooperation with state trade agencies and export 
        assistance centers.--A small business development center that 
        counsels a small business concern on issues relating to 
        international trade shall--
                  (A) consult with State trade agencies and export 
                assistance centers to provide appropriate services to 
                the small business concern; and
                  (B) as necessary, refer the small business concern to 
                a State trade agency or export assistance center for 
                further counseling or assistance.
  (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 109103(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 occurs first.
                          (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 109103(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 109103(a)(5) of this title.
                          (ii) Limitation.--No funds described in 
                        clause (i) may be used for examination expenses 
                        under section 109103(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 271104(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 
        109103(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) Inapplicability 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 251106 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 271104(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 SBA, who shall include such 
                approval in a semiannual report.
  (l) Cybersecurity Assistance.--
          (1) Definitions.--In this subsection, the terms 
        ``cybersecurity risk'' and ``cyber threat indicator'' have the 
        meanings given those terms under section 227(a) of the Homeland 
        Security Act of 2002 (6 U.S.C. 148(a)).
          (2) Leveraging small business development centers.--The 
        Department of Homeland Security, and any other Federal 
        department or agency in coordination with the Department of 
        Homeland Security, may leverage small business development 
        centers to provide assistance to small business concerns by 
        disseminating information relating to cybersecurity risks and 
        other homeland security matters to help small business concerns 
        in developing or enhancing cybersecurity infrastructure, 
        awareness of cyber threat indicators, and cyber training 
        programs for employees.
Sec. 271103. 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.--
          (1) In general.--The Administrator may permit a small 
        business development center to provide advice, information, and 
        assistance, as described in section 271104 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.
          (2) Disaster recovery assistance.--
                  (A) In general.--The Administrator may authorize a 
                small business development center to provide advice, 
                information, and assistance, as described in section 
                271104 of this title, to a small business concern 
                located outside the State, without regard to geographic 
                proximity to the small business development center, if 
                the small business concern is located in an area for 
                which the President declares a major disaster.
                  (B) Term.--
                          (i) In general.--A small business development 
                        center may provide advice, information, and 
                        assistance to a small business concern under 
                        clause (i) for a period of not more than 2 
                        years after the date on which the President 
                        declares a major disaster for the area in which 
                        the small business concern is located.
                          (ii) Extension.--The Administrator may extend 
                        the period described in clause (i).
                  (C) Continuity of services.--A small business 
                development center that provides counselors to an area 
                described in subparagraph (A) shall, to the maximum 
                extent practicable, ensure continuity of services in 
                any State in which the small business development 
                center otherwise provides services.
                  (D) Access to disaster recovery facilities.--For 
                purposes of this paragraph, the Administrator shall, to 
                the maximum extent practicable, permit the personnel of 
                a small business development center to use any site or 
                facility designated by the Administrator for use to 
                provide disaster recovery assistance.
Sec. 271104. Services
  (a) In General.--A small business development center--
          (1) 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; and
          (2) may assist small business concerns by providing, as 
        appropriate, education on the requirements applicable to small 
        businesses under the regulations prescribed under section 38 of 
        the Arms Export Control Act (22 U.S.C. 2778) and on compliance 
        with those requirements.
  (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 
                SBA offices 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 SBA 
        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 at 
                        any tier, 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;
          (5) laboratory facilities and adaptive engineering 
        facilities; and
          (6) cybersecurity specialists to counsel, assist, and inform 
        small business concern clients, in furtherance of the Small 
        Business Development Center Cyber Strategy developed under 
        section 1841(a) of the National Defense Authorization Act for 
        Fiscal Year 2017 (Public Law 114-328, 130 Stat. 2662).
  (h) Use of Small Business Vendors.--A small business development 
center shall use and compensate as 1 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 SBA regional offices and 
SBA 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 
                1 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 271102 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. 271105. 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. 271106. 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. 271107. 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. 271108. 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. 271109. 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. 271110. 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. 271111. 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. 271112. 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. 271113. 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. 271114. 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 section, 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 1-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 Administrator may make grants or enter into 
cooperative agreements to carry out this section.
Sec. 271115. Grants for small business development centers
  (a) In General.--The Administrator may make grants to small business 
development centers to provide targeted technical assistance to small 
business concerns seeking--
          (1) access to capital or credit;
          (2) Federal procurement opportunities;
          (3) energy efficiency audits to reduce energy bills;
          (4) opportunities to export products or provide services to 
        foreign customers;
          (5) assistance in adopting, making innovations in, and using 
        broadband technologies; or
          (6) other assistance.
  (b) Allocation.--
          (1) In general.--Subject to paragraph (2), and 
        notwithstanding the requirements of section 271102(g)(2)(C) of 
        this title, the amount appropriated to carry out this section 
        shall be allocated under the formula under section 
        271102(g)(2)(A) of this title.
          (2) Minimum funding.--The amount made available under this 
        section to each State shall be not less than $325,000.
          (3) Types of uses.--Of the total amount of the grants awarded 
        by the Administrator under this section--
                  (A) not less than 80 percent shall be used for 
                counseling of small business concerns; and
                  (B) not more than 20 percent may be used for classes 
                or seminars.
  (c) No Non-Federal Share.--Notwithstanding section 271102(g)(1)(A) of 
this title, the recipient of a grant under this section shall not be 
required to provide non-Federal matching funds.
  (d) Distribution.--Not later than 30 days after the date on which 
amounts are appropriated to carry out this section, the Administrator 
shall disburse the total amount appropriated.

              Division K--Women's Business Center Program

              Chapter 273--Women's Business Center Program

Sec.
273101.  Definitions.
273102.  Financial assistance.
273103.  Conditions of participation.
273104.  Contract authority.
273105.  5-year period.
273106.  Criteria.
273107.  Program examination.
273108.  Suspension, termination, or failure to renew or extend 
          financial assistance.
273109.  Continued funding for women's business centers.
273110.  Privacy requirements.
273111.  Expedited acquisition.
Sec. 273101. 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) 1 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. 273102. 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. 273103. 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 1st and 2d years, 1 non-Federal dollar for each 2 
        Federal dollars.
          (2) In the 3d, 4th, and 5th years, 1 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. 273104. 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. 273105. 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 1 women's business center site 
for a maximum of 5 years.
Sec. 273106. 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. 273107. 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 
                273103 of this title; and
                  (ii) with respect to any in-kind contributions 
                described in section 273103(b) of this title that were 
                used to satisfy the requirements of section 273103 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 Administrator 
        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 107111 of this title; 
                or
                  (ii) the information provided by the women's business 
                center is inadequate.
Sec. 273108. 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. 273109. 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 273102 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 provide to an applicant 
        approved under this section a grant for the Federal share of 
        the cost of activities described in the application.
          (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 1st-time applications under 
        section 273102 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. 273110. 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. 273111. 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 L--Veterans and Reservists

                  Chapter 275--Veterans and Reservists

Sec.
275101.  Definitions.
275102.  Veterans business development interagency task force.
275103.  Advisory Committee on Veterans Business Affairs.
275104.  Participation in transition assistance program workshops.
275105.  Women veterans business training
275106.  Information collection.
275107.  Entrepreneurial training, counseling, and management 
          assistance.
275108.  Outreach.
275109.  Memorandum of understanding with SCORE.
275110.  Memorandum of understanding with the Secretary of Veterans 
          Affairs and the Association.
275111.  Dissemination of information.
275112.  Memorandum of understanding with the Secretary of Labor and the 
          Secretary of Veterans Affairs.
275113.  Data collection.
275114.  Relief from time limitations.
Sec. 275101. Definitions
  In this chapter:
          (1) Associate Administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Veterans 
        Business Development under section 103104(b) of this title.
          (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Advisory Committee on Veterans Business Affairs 
        established under section 275103.
          (3) Interagency Task force.--The term ``Interagency Task 
        Force'' means the veterans business development interagency 
        task force established under section 275102.
Sec. 275102. 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) SBA (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. 275103. 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 1 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 1st 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) 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 SBA headquarters 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. 275104. 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. 275105. 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. 275106. 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. 275107. 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. 275108. 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. 275109. Memorandum of understanding with 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 a 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 107114 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. 275110. 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. 275111. 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 241115(b) of this title.
Sec. 275112. 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. 275113. Data collection
  The Federal Procurement Data System described in section 
1122(a)(4)(A) of title 41 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. 275114. 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 M--International Trade

                    Chapter 277--International Trade

Sec.
277101.  Definitions.
277102.  Trade distribution network.
277103.  Promotion of sales opportunities.
277104.  Export financing programs.
277105.  Trade remedies.
277106.  Discharge of international trade responsibilities.
277107.  Export and trade counseling.
277108.  Performance measures.
277109.  Export assistance centers.
277110.  State trade expansion program.
Sec. 277101. Definitions
  In this chapter:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for 
        International Trade.
          (2) Office.--The term ``Office'' means the Office of 
        International Trade established under section 103109 of this 
        title.
          (3) Rural small business concern.--The term ``rural small 
        business concern'' means a small business concern located in a 
        rural area (as defined in section 1393(a)(2) of the Internal 
        Revenue Code of 1986 (26 U.S.C. 1393(a)(2)).
Sec. 277102. Trade distribution network
  The Associate Administrator, working in close cooperation with the 
Secretary of Commerce, the United States Trade Representative, the 
Secretary of Agriculture, the Secretary of State, the President of the 
Export-Import Bank of the United States, the President of the Overseas 
Private Investment Corporation, the Director of the United States Trade 
and Development Agency, and other Federal agencies, small business 
development centers engaged in export promotion efforts, export 
assistance centers, SBA regional offices, SBA district offices, the 
small business community, and State and local export promotion 
programs, shall--
          (1) maintain a distribution network, using SBA regional 
        offices and SBA district offices, the small business 
        development center network, networks of women's business 
        centers, SCORE, and export assistance centers, for programs 
        relating to--
                  (A) trade promotion;
                  (B) trade finance;
                  (C) trade adjustment assistance;
                  (D) trade remedy assistance; and
                  (E) trade data collection;
          (2) aggressively market the programs described in paragraph 
        (1) and disseminate information, including computerized 
        marketing data, to small business concerns on--
                  (A) exporting trends;
                  (B) market-specific growth;
                  (C) industry trends; and
                  (D) international prospects for exports;
          (3) promote export assistance programs through the SBA 
        district offices and SBA regional offices, the small business 
        development center network, export assistance centers, the 
        network of women's business centers, SCORE chapters, State and 
        local export promotion programs, and partners in the private 
        sector; and
          (4) give preference in hiring or approving the transfer of 
        any employee into the Office or to a position described in 
        section 277103(b)(9) of this title to otherwise qualified 
        applicants who are fluent in a language in addition to English, 
        to--
                  (A) accompany small business concerns on foreign 
                trade missions; and
                  (B) translate documents, interpret conversations, and 
                facilitate multilingual transactions, including by 
                providing referral lists for translation services, if 
                required.
Sec. 277103. Promotion of sales opportunities
  (a) In General.--The Associate Administrator shall promote sales 
opportunities for small business goods and services abroad.
  (b) Activities.--To accomplish the objective stated in subsection 
(a), the Associate Administrator shall--
          (1) establish annual goals for the Office relating to--
                  (A) enhancing the exporting capability of small 
                business concerns;
                  (B) facilitating technology transfers;
                  (C) enhancing programs and services to assist small 
                business concerns to compete effectively and 
                efficiently in foreign markets;
                  (D) increasing the ability of small business concerns 
                to access capital; and
                  (E) disseminating information concerning Federal, 
                State, and private programs and initiatives;
          (2) in cooperation with the Department of Commerce, other 
        Federal agencies, regional and local SBA offices, the small 
        business development center network, and State programs, 
        develop a mechanism for--
                  (A) identifying subsectors of the small business 
                community with strong export potential;
                  (B) identifying areas of demand in foreign markets;
                  (C) prescreening foreign buyers for commercial and 
                credit purposes; and
                  (D) 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;
          (3) in cooperation with the Department of Commerce, actively 
        assist small business concerns in forming and using export 
        trading companies, export management companies and research and 
        development pools authorized under division I of subtitle II;
          (4) work in conjunction with other Federal agencies, SBA 
        regional offices, SBA district offices, the small business 
        development center network, and the private sector to identify 
        and publicize translation services, including those available 
        through colleges and universities participating in the small 
        business development center program;
          (5) work closely with the Department of Commerce and other 
        relevant Federal agencies to--
                  (A)(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;
                  (B) 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;
                  (C) improve the utility and accessibility of existing 
                export promotion programs for small business concerns; 
                and
                  (D) increase the accessibility of the Export Trading 
                Company contact facilitation service of the Department 
                of Commerce;
          (6) make available to the small business community 
        information regarding conferences on exporting and 
        international trade sponsored by the public and private 
        sectors;
          (7) provide small business concerns with access to up to date 
        and complete export information by--
                  (A) making available, at SBA regional offices and SBA 
                district offices through cooperation with the 
                Department of Commerce, export information, including 
                the worldwide information and trade system and world 
                trade data reports;
                  (B) maintaining a list of financial institutions that 
                finance export operations;
                  (C) maintaining a directory of all Federal, regional, 
                State and private sector programs that provide export 
                information and assistance to small business concerns; 
                and
                  (D) 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;
          (8) 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;
          (9) facilitate decentralized delivery of export information 
        and assistance to small business concerns by assigning primary 
        responsibility for export development to 1 individual in each 
        SBA district office and providing each SBA regional office with 
        a full-time export development specialist, who shall--
                  (A) assist small business concerns in obtaining 
                export information and assistance from other Federal 
                agencies;
                  (B) maintain a 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 SBA personnel involved in 
                making loans, loan guarantees, and extensions and 
                revolving lines of credit and providing other forms of 
                assistance to small business concerns engaged in 
                exporting;
                  (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;
                  (F) participate, jointly with employees of the 
                Office, in an annual training program that focuses on 
                current small business needs for exporting; and
                  (G) develop and conduct training programs for 
                exporters and lenders, in cooperation with the export 
                assistance centers, the Department of Commerce, the 
                Department of Agriculture, small business development 
                centers, women's business centers, the Export-Import 
                Bank of the United States, the Overseas Private 
                Investment Corporation, and other Federal agencies;
          (10) make available on the SBA website the name and contact 
        information of each individual described in paragraph (9);
          (11) carry out a nationwide marketing effort using 
        technology, online resources, training, and other strategies to 
        promote exporting as a business development opportunity for 
        small business concerns;
          (12) disseminate information to the small business community 
        through SBA regional offices and SBA district offices, the 
        small business development center network, export assistance 
        centers, the network of women's business centers, SCORE 
        chapters, State and local export promotion programs, and 
        partners in the private sector regarding exporting trends, 
        market-specific growth, industry trends, and prospects for 
        exporting; and
          (13) establish and carry out training programs for the staff 
        of SBA regional offices and SBA district offices and resource 
        partners of SBA on export promotion and the provision of 
        assistance relating to exports.
Sec. 277104. Export financing programs
  (a) In General.--The Associate Administrator 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 SBA regional 
offices, regional and local loan officers, and small business 
development center personnel can facilitate the access of small 
business concerns to--
          (1) relevant export financing programs of the Export-Import 
        Bank of the United States; and
          (2) export and pre-export financing programs available from 
        the Administrator and the private sector.
  (b) Trade Finance Specialists.--To accomplish the goal established 
under subsection (a), the Associate Administrator shall--
          (1) designate at least 1 individual within SBA as a trade 
        finance specialist to oversee international loan programs and 
        assist SBA employees with trade finance issues; and
          (2) 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 SBA 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 institutions 
                already participating in loan programs under this 
                subtitle, in export finance; and
                  (E) provide for the participation of appropriate SBA 
                personnel in training programs conducted by the Export-
                Import Bank of the United States.
Sec. 277105. Trade remedies
  The Associate Administrator 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. 277106. Discharge of international trade responsibilities
  The Administrator shall ensure that--
          (1) the responsibilities of the Administrator regarding 
        international trade are carried out by the Associate 
        Administrator;
          (2) the Associate Administrator has sufficient resources to 
        carry out those responsibilities; and
          (3) the Associate Administrator has direct supervision and 
        control over--
                  (A) the staff of the Office; and
                  (B) any SBA employee whose principal duty station is 
                an export assistance center, or any successor entity.
Sec. 277107. Export and trade counseling
  (a) Definitions.--In this section:
          (1) Lead small business development center.--The term ``lead 
        small business development center'' means a small business 
        development center that has received a grant from the 
        Administrator.
          (2) Lead women's business center.--The term ``lead women's 
        business center'' means a women's business center that has 
        received a grant from the Administrator.
  (b) Certification Program.--The Administrator shall establish an 
export and trade counseling certification program to certify employees 
of lead small business development centers and lead women's business 
centers in providing export assistance to small business concerns.
  (c) Number of Certified Employees.--The Administrator shall ensure 
that the number of employees of each lead small business development 
center who are certified in providing export assistance is not less 
than the lesser of--
          (1) 5; or
          (2) 10 percent of the total number of employees of the lead 
        small business development center.
  (d) Reimbursement for Certification.--
          (1) In general.--Subject to the availability of 
        appropriations, the Administrator shall reimburse a lead small 
        business development center or a lead women's business center 
        for costs relating to the certification of an employee of the 
        lead small business center or lead women's business center in 
        providing export assistance under the program established under 
        subsection (b).
          (2) Limitation.--The total amount reimbursed by the 
        Administrator under paragraph (1) shall not exceed $350,000 in 
        any fiscal year.
Sec. 277108. Performance measures
  (a) In General.--The Associate Administrator shall develop 
performance measures for SBA to support export growth goals for the 
activities of the Office under this chapter that include--
          (1) the number of small business concerns that--
                  (A) receive assistance from the Administrator;
                  (B) had not exported goods or services before 
                receiving the assistance described in subparagraph (A); 
                and
                  (C) export goods or services;
          (2) the number of small business concerns receiving 
        assistance from the Administrator that export goods or services 
        to a market outside the United States into which the small 
        business concern did not export before receiving the 
        assistance;
          (3) export revenues by small business concerns assisted by 
        programs of the Administrator;
          (4) the number of small business concerns referred to an 
        export assistance center or a small business development center 
        by the staff of the Office;
          (5) the number of small business concerns referred to SBA by 
        an export assistance center or a small business development 
        center; and
          (6) the number of small business concerns referred to the 
        Department of Commerce, the Department of Agriculture, the 
        Department of State, the Export-Import Bank of the United 
        States, the Overseas Private Investment Corporation, or the 
        United States Trade and Development Agency by the staff of the 
        Office, an export assistance center, or a small business 
        development center.
  (b) Joint Performance Measures.--The Associate Administrator shall 
develop joint performance measures for SBA district offices and export 
assistance centers that include the number of export loans made under--
          (1) section 205110 of this title;
          (2) the export working capital program;
          (3) the preferred lenders program; and
          (4) the export express program.
  (c) Consistency of Tracking.--The Associate Administrator, in 
coordination with the Federal agencies that are represented on the 
Trade Promotion Coordinating Committee established under section 2312 
of the Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small 
business development center network, shall develop a system to track 
exports by small business concerns, including information relating to 
the performance measures developed under subsection (a), that is 
consistent with systems used by the Federal agencies and the network.
Sec. 277109. Export assistance centers
  (a) Minimum Number of Export Finance Specialists.--
          (1) In general.--The Administrator, in coordination with the 
        Secretary of Commerce, shall ensure that the number of export 
        finance specialists at all times is not less than the number of 
        employees assigned as export finance specialists on January 1, 
        2003.
          (2) SBA regions.--The Administrator, in coordination with the 
        Secretary of Commerce, shall ensure that at all times there are 
        not fewer than 3 export finance specialists in each SBA region.
  (b) Placement of Export Finance Specialists.--
          (1) Priority.--The Administrator shall give priority, to the 
        maximum extent practicable, to placing SBA employees at any 
        export assistance center that--
                  (A) had an SBA employee assigned to the export 
                assistance center before January 2003; and
                  (B) has not had an SBA employee assigned to the 
                export assistance center during the period beginning 
                January 2003 and ending on September 27, 2010, through 
                either retirement or reassignment.
          (2) Needs of exporters.--The Administrator shall, to the 
        maximum extent practicable, strategically assign SBA employees 
        to export assistance centers based on the needs of exporters.
          (3) Rule of construction.--Nothing in this section shall be 
        construed to require the Administrator to reassign or remove an 
        export finance specialist who was assigned to an export 
        assistance center on September 27, 2010.
  (c) Goals.--The Associate Administrator shall work with the 
Department of Commerce, the Export-Import Bank of the United States, 
and the Overseas Private Investment Corporation to establish shared 
annual goals for the export assistance centers.
  (d) Oversight.--The Associate Administrator shall designate an 
individual within SBA to oversee all activities conducted by SBA 
employees assigned to export assistance centers.
Sec. 277110. State trade expansion program
  (a) Definitions.--In this section:
          (1) Eligible small business concern.--The term ``eligible 
        small business concern'' means a business concern that--
                  (A) is organized or incorporated in the United 
                States;
                  (B) is operating in the United States;
                  (C) meets--
                          (i) the applicable industry-based small 
                        business size standard established under 
                        section 101103 of this title; or
                          (ii) the alternate size standard applicable 
                        to the program under section 101103(b)(5) of 
                        this title and the loan programs under chapter 
                        331;
                  (D) has been in business for not less than 1 year, as 
                of the date on which assistance using a grant under 
                this subsection commences; and
                  (E) has access to sufficient resources to bear the 
                costs associated with trade, including the costs of 
                packing, shipping, freight forwarding, and customs 
                brokers.
          (2) Program.--The term ``program'' means the State trade 
        expansion program established under subsection (b).
          (3) Rural small business concern.--The term ``rural small 
        business concern'' means an eligible small business concern 
        located in a rural area (as defined in section 1393(a) of the 
        Internal Revenue Code of 1986 (26 U.S.C. 1393(a))).
          (4) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, Guam, American Samoa, the Virgin 
        Islands, and the Northern Mariana Islands.
  (b) Establishment of Program.--The Associate Administrator shall 
establish a trade expansion program, to be known as the State trade 
expansion program, to make grants to States to carry out programs that 
assist eligible small business concerns in--
          (1) participation in foreign trade missions;
          (2) a subscription to services provided by the Department of 
        Commerce;
          (3) the payment of website fees;
          (4) the design of marketing media;
          (5) a trade show exhibition;
          (6) participation in training workshops;
          (7) a reverse trade mission;
          (8) procurement of consultancy services (after consultation 
        with the Department of Commerce to avoid duplication); or
          (9) any other initiative determined appropriate by the 
        Associate Administrator.
  (c) Grants.--
          (1) Joint review.--In carrying out the program, the Associate 
        Administrator may make a grant to a State to increase the 
        number of eligible small business concerns in the State 
        exploring significant new trade opportunities.
          (2) Considerations.--In making grants under this section, the 
        Associate Administrator may give priority to an application by 
        a State that proposes a program that--
                  (A) focuses on eligible small business concerns as 
                part of a trade expansion program;
                  (B) demonstrates intent to promote trade expansion 
                by--
                          (i) small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals;
                          (ii) small business concerns owned and 
                        controlled by women; and
                          (iii) rural small business concerns;
                  (C) promotes trade facilitation from a State that is 
                not 1 of the 10 States with the highest percentage of 
                eligible small business concerns that are engaged in 
                international trade, based on the most recent data from 
                the Department of Commerce; and
                  (D) includes--
                          (i) activities that have resulted in the 
                        highest return on investment based on the most 
                        recent year; and
                          (ii) the adoption of shared best practices 
                        included in the annual report of the 
                        Administrator.
          (3) Limitations.--
                  (A) Single application.--A State may not submit more 
                than 1 application for a grant under the program in any 
                1 fiscal year.
                  (B) Proportion of amounts.--The total value of grants 
                made under the program during a fiscal year to the 10 
                States with the highest percentage of eligible small 
                business concerns, based on the most recent data 
                available from the Department of Commerce, shall be not 
                more than 40 percent of the amounts appropriated for 
                the program for that fiscal year.
                  (C) Duration.--The Associate Administrator shall 
                award a grant under this program for a period of not 
                more than 2 years.
          (4) Application.--
                  (A) In general.--A State desiring a grant under the 
                program shall submit an application at such time, in 
                such manner, and accompanied by such information as the 
                Associate Administrator may establish.
                  (B) Consultation to reduce duplication.--A State 
                desiring a grant under the program shall--
                          (i) before submitting an application under 
                        subparagraph (A), consult with applicable trade 
                        agencies of the Federal Government on the scope 
                        and mission of the activities that the State 
                        proposes to carry out using the grant, to 
                        ensure proper coordination and reduce 
                        duplication in services; and
                          (ii) document the consultation conducted 
                        under clause (i) in the application submitted 
                        under subparagraph (A).
  (d) Competitive Basis.--The Associate Administrator shall award 
grants under the program on a competitive basis.
  (e) Federal Share.--The Federal share of the cost of a trade 
expansion program carried out using a grant under the program shall 
be--
          (1) for a State that has a high trade volume, as determined 
        by the Associate Administrator, not more than 65 percent; and
          (2) for a State that does not have a high trade volume, as 
        determined by the Associate Administrator, not more than 75 
        percent.
  (f) Non-Federal Share.--The non-Federal share of the cost of a trade 
expansion program carried out using a grant under the program shall be 
comprised of not less than 50 percent cash and not more than 50 percent 
of indirect costs and in-kind contributions, except that no such costs 
or contributions may be derived from funds from any other Federal 
program.

                    Divisions N Through Y--Reserved

                       Division Z--Miscellaneous

                       Chapter 299--Miscellaneous

Sec.
299101.  Management assistance for small business concerns affected by 
          military operations.
299102.  Business grants and cooperative agreements.
299103.  Voluntary agreements and programs.
299104.  Paul D. Coverdell drug-free workplace program.
299105.  Course on contracting requirements.
299106.  Mentor-protege programs.
299107.  Subcontracting requirements and limitations.
Sec. 299101. 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 SBA, 
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. 299102. 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. 299103. 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. 299104. 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 1 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.
Sec. 299105. Course on contracting requirements
  (a) In General.--The Defense Acquisition University and the Federal 
Acquisition Institute shall each provide a course on contracting 
requirements under this subtitle, including the requirements for--
          (1) qualified HUBZone small business concerns;
          (2) small business concerns owned and controlled by service-
        disabled veterans;
          (3) small business concerns owned and controlled by socially 
        and economically disadvantaged individuals; and
          (4) small business concerns owned and controlled by women.
  (b) Course Requirement for Certification.--To have a Federal 
Acquisition Certification in Contracting (or any successor 
certification) or the equivalent Department of Defense certification, 
an individual shall be required to complete the course under subsection 
(a).
Sec. 299106. Mentor-protege programs
  (a) Definitions.--In this section:
          (1) Mentor.--The term ``mentor'' means a for-profit business 
        concern, of any size, that--
                  (A) has the ability to assist and commits to 
                assisting a protege to compete for Federal prime 
                contracts and subcontracts; and
                  (B) satisfies any other requirements established by 
                the Administrator.
          (2) Mentor-protege program.--The term ``mentor-protege 
        program'' means a program that pairs a mentor with a protege 
        for the purpose of assisting the protege to compete for Federal 
        prime contracts and subcontracts.
          (3) Protege.--The term ``protege'' means a small business 
        concern that--
                  (A) is eligible to enter into Federal prime contracts 
                and subcontracts; and
                  (B) satisfies any other requirements established by 
                the Administrator.
  (b) SBA Program.--
          (1) In General.--The Administrator may establish a mentor-
        protege program for all small business concerns.
          (2) Model for program.--The mentor-protege program 
        established under paragraph (1) shall be identical to the SBA 
        mentor-protege program for small business concerns that 
        participate in the business development program (as in effect 
        on January 2, 2013), except that the Administrator may modify 
        the program to the extent necessary given the categories of 
        small business concern included as proteges.
  (c) Programs of Other Federal Agencies.--
          (1) Approval.--Except as provided in paragraph (4), a Federal 
        agency may not carry out a mentor-protege program for small 
        business concerns unless--
                  (A) the head of the Federal agency submits to the 
                Administrator a plan for the program; and
                  (B) the Administrator approves the plan.
          (2) Basis for approval.--The Administrator shall approve or 
        disapprove a plan submitted under paragraph (1) based on 
        whether the proposed program--
                  (A) will assist proteges to compete for Federal prime 
                contracts and subcontracts; and
                  (B) complies with the regulations prescribed under 
                paragraph (3).
          (3) Regulations.--The Administrator shall prescribe, after 
        providing notice and an opportunity for public comment, 
        regulations with respect to mentor-protege programs, that--
                  (A) ensure that the programs improve the ability of 
                proteges to compete for Federal prime contracts and 
                subcontracts; and
                  (B) address, at a minimum--
                          (i) eligibility criteria for program 
                        participants, including any restrictions on the 
                        number of mentor-protege relationships 
                        permitted for each participant;
                          (ii) the types of developmental assistance to 
                        be provided by mentors, including how the 
                        assistance provided shall improve the 
                        competitive viability of the proteges;
                          (iii) whether any developmental assistance 
                        provided by a mentor may affect the status of a 
                        program participant as a small business concern 
                        due to affiliation;
                          (iv) the length of mentor-protege 
                        relationships;
                          (v) the effect of mentor-protege 
                        relationships on contracting;
                          (vi) benefits that may accrue to a mentor as 
                        a result of program participation;
                          (vii) reporting requirements during program 
                        participation;
                          (viii) postparticipation reporting 
                        requirements;
                          (ix) the need for a mentor-protege pair, if 
                        accepted to participate as a pair in a mentor-
                        protege program of any Federal agency, to be 
                        accepted to participate as a pair in all 
                        Federal agency mentor-protege programs;
                          (x) actions to be taken to ensure benefits 
                        for proteges and to protect a protege against 
                        actions by a mentor that--
                                  (I) may adversely affect the 
                                protege's status as a small business 
                                concern; or
                                  (II) provide disproportionate 
                                economic benefits to the mentor 
                                relative to those provided the protege; 
                                and
                          (xi) the types of assistance provided by a 
                        mentor to assist with compliance with the 
                        requirements of contracting with the Federal 
                        Government after award of a contract or 
                        subcontract under this section.
          (4) Limitation on applicability.--Paragraph (1) does not 
        apply to--
                  (A) a mentor-protege program of the Department of 
                Defense;
                  (B) mentoring assistance provided under an SBIR 
                program or a STTR program; or
                  (C) until the date that is 1 year after the date on 
                which the Administrator prescribes regulations under 
                paragraph (3), a Federal agency operating a mentor-
                protege program in effect on January 2, 2013.
Sec. 299107. Subcontracting requirements and limitations
  (a) Definitions.--In this section:
          (1) Covered small business concern.--The term ``covered small 
        business concern'' means a business concern that--
                  (A) with respect to a contract awarded under the 
                business development program, is a small business 
                concern eligible to receive contracts under the 
                business development program;
                  (B) with respect to a contract awarded under chapter 
                257--
                          (i) is a small business concern owned and 
                        controlled by women (as defined in section 
                        257101 of this title); or
                          (ii) is a small business concern owned and 
                        controlled by women (as defined in that 
                        section) that is not less than 51 percent owned 
                        by 1 or more women who are economically 
                        disadvantaged (and such ownership is determined 
                        without regard to any community property law);
                  (C) with respect to a contract awarded under section 
                251101 of this title, is a small business concern;
                  (D) with respect to a contract awarded under the 
                HUBZone program, is a qualified HUBZone small business 
                concern; and
                  (E) with respect to a contract awarded under chapter 
                255, is a small business concern owned and controlled 
                by service-disabled veterans.
          (2) Similarly situated entity.--The term ``similarly situated 
        entity'' means a subcontractor that--
                  (A)(i) is a subcontractor for a small business 
                concern; and
                  (ii) is a small business concern;
                  (B)(i) is a subcontractor for a small business 
                concern eligible to receive contracts under the 
                business development program; and
                  (ii) is a small business concern eligible to receive 
                contracts under the business development program;
                  (C)(i) is a subcontractor for a small business 
                concern owned and controlled by women (as defined in 
                section 257101 of this title); and
                  (ii) is a small business concern owned and controlled 
                by women (as defined in that section);
                  (D)(i) is a subcontractor for a small business 
                concern owned and controlled by women (as defined in 
                257101 of this title) that is not less than 51 percent 
                owned by 1 or more women who are economically 
                disadvantaged (and such ownership is determined without 
                regard to any community property law);
                  (ii) is small business concern owned and controlled 
                by women (as defined in that section) that is not less 
                than 51 percent owned by 1 or more women who are 
                economically disadvantaged (and such ownership is 
                determined without regard to any community property 
                law);
                  (E)(i) is a subcontractor for a qualified HUBZone 
                small business concern; and
                  (ii) is a qualified HUBZone small business concern; 
                or
                  (F)(i) is a subcontractor for a small business 
                concern owned and controlled by service-disabled 
                veterans; and
                  (ii) is a small business concern owned and controlled 
                by service-disabled veterans.
  (b) In General.--If awarded a contract under the business development 
program, chapter 257, 251101 of this title, the HUBZone program, or 
chapter 255, a covered small business concern--
          (1) in the case of a contract for services, shall not expend 
        on subcontractors more than 50 percent of the amount paid to 
        the covered small business concern under the contract;
          (2) in the case of a contract for supplies (other than from a 
        regular dealer in the supplies), shall not expend on 
        subcontractors more than 50 percent of the amount, less the 
        cost of materials, paid to the covered small business concern 
        under the contract;
          (3) in the case of a contract for services and supplies 
        (other than from a regular dealer in the supplies)--
                  (A) shall determine for which category, services (as 
                described in paragraph (1)) or supplies (as described 
                in paragraph (2)), the greater percentage of the 
                contract is awarded;
                  (B) shall determine the amount awarded under the 
                contract for that category of services or supplies; and
                  (C) shall not expend on subcontractors, with respect 
                to the amount determined under subparagraph (B), more 
                than 50 percent of that amount; and
          (4) in the case of a contract that is principally for 
        supplies from a regular dealer in the supplies (and is not a 
        contract principally for a service or for construction), shall 
        supply the product of a domestic manufacturer or processor that 
        is a small business concern, unless a waiver of the requirement 
        to supply the product of a domestic manufacturer or processor 
        that is a small business concern is granted--
                  (A) by the Administrator, after reviewing a 
                determination by the applicable contracting officer 
                that no manufacturer or processor that is a small 
                business concern can reasonably be expected to offer a 
                product meeting the specifications (including period 
                for performance) required by the contract; or
                  (B) by the Administrator for a product (or class of 
                products), after determining that no manufacturer or 
                processor that is a small business concern is available 
                to participate in the Federal procurement market.
  (c) Similarly Situated Entities.--Contract amounts expended by a 
covered small business concern on a subcontractor that is a similarly 
situated entity shall not be considered to be subcontracted for 
purposes of determining whether a covered small business concern failed 
to comply with a requirement or limitation under subsection (b) or (e).
  (d) Modifications of Percentages.--The Administrator may change, by 
rule (after providing notice and an opportunity for public comment), a 
percentage specified in paragraph (1), (2), or (3)(C) of subsection (b) 
if the Administrator determines that the change is necessary to reflect 
conventional industry practices among business concerns that are below 
the numerical size standard for businesses in that industry category.
  (e) Other Contracts.--
          (1) In general.--With respect to a category of contracts to 
        which a requirement under subsection (b) does not apply, the 
        Administrator may establish, by rule (after providing notice 
        and an opportunity for public comment), a requirement that a 
        covered small business concern shall not expend on 
        subcontractors more than a specified percentage of the amount 
        paid to the covered small business concern under a contract in 
        that category.
          (2) Uniformity.--A requirement established under paragraph 
        (1) shall apply to all covered small business concerns.
          (3) Construction projects.--The Administrator shall 
        establish, through public rulemaking, requirements similar to 
        those specified in paragraph (1) 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 paragraph. The percentage applicable to 
        any such requirement shall be determined in accordance with 
        paragraph (1).
  (f) Monitoring.--The Administrator shall take such actions as are 
necessary to ensure that a Federal subcontracting reporting system in 
existence on January 2, 2013, is modified to notify the Administrator, 
the appropriate Director of the Office of Small and Disadvantaged 
Business Utilization, and the appropriate contracting officer of a 
failure to comply with a requirement or limitation under subsection (b) 
or (e).
  (g) Inapplicability of Requirement To Review and Justify Contracts.--
The requirements under section 802 of the National Defense 
Authorization Act for Fiscal Year 2013 (10 U.S.C. 2304 note) do not 
apply to a contract to which this section applies.

                   Subtitle III--Investment Division

                     Division A--General Provisions

                    Chapter 301--General Provisions

Sec.
301101.  Definitions.
301102.  Implementation of subtitle.
Sec. 301101. Definitions
  In this subtitle:
          (1) 3d party debt.--The term ``3d party debt'' means any 
        indebtedness for borrowed money, other than indebtedness owed 
        to the Administrator.
          (2) Articles.--The term ``articles''--
                  (A) with respect to an incorporated body, means the 
                articles of incorporation of 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 
                document specified by the Administrator.
          (3) 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.
          (4) 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 1st 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.
          (5) 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.
          (6) 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.
          (7) License.--The term ``license'' means a license to operate 
        as a small business investment company issued by the 
        Administrator to a company under section 303102 of this title.
          (8) 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.
          (9) 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.
          (10) 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 1 year.
          (11) 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).
          (12) 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.
          (13) 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.
          (14) 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.
          (15) 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.
          (16) 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).
          (17) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given the term in section 101102 of this title, except that the 
        exception stated in paragraph (19)(B) of this section applies.
          (18) 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 SBA, 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 1 
                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.
          (19) Small business concern.--
                  (A) In general.--The term ``small business concern'' 
                has the meaning given the term in section 101103 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 101103 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 101103 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.
          (20) 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 101102 of this title, except that the 
        exception stated in paragraph (19)(B) of this section applies.
          (21) 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 101102 of this title, except that the 
        exception stated in paragraph (19)(B) of this section applies.
          (22) 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 101102 of this title, except that the exception stated 
        in paragraph (19)(B) of this section applies.
          (23) Small business investment company.--The term ``small 
        business investment company'' means a licensee.
          (24) 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.
          (25) 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 Investment Act of 1958 (15 U.S.C. 
                681(d)), as in effect before September 30, 1996.
          (26) State.--The term ``State'' includes a State, District of 
        Columbia, Puerto Rico, and any other territory (including a 
        possession) of the United States.
Sec. 301102. 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.
303101.  Requirements for licensing.
303102.  Licensing procedure.
303103.  Financial institution investments.
303104.  Borrowing power.
303105.  Equity capital for small business concerns.
303106.  Long-term loans to small business concerns.
303107.  Limitation on amount of financing.
303108.  Cooperation with banks and other investors or lenders.
303109.  Advisory services; Federal Reserve Banks as depositories or 
          fiscal agents; investment of funds.
303110.  Nonliability of the United States.
303111.  Certifications of eligibility.
303112.  Interest rates.
303113.  Conflicts of interest.
303114.  Ineligibility of guaranteed obligations for purchase by Federal 
          Financing Bank.
303115.  Trust certificates.
303116.  Regulations.
303117.  Unlawful acts and omissions.
303118.  Investigations; examinations; valuations.
303119.  Revocation and suspension of licenses; cease and desist orders.
303120.  Removal or suspension of, or prohibition of participation by, 
          management officials.
303121.  Direct civil enforcement actions.
303122.  Jurisdiction; service of process.
Sec. 303101. 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 approve leverage 
                        for a licensee licensed under subsection (c) or 
                        (d) of section 301 of the Small Business 
                        Investment Act of 1958 (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. 303102. 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 303101 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 SBA; and
                  (B) are authorized to be appropriated solely to cover 
                the costs of licensing examinations.
Sec. 303103. 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 1 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 1 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. 303104. 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 any 1 licensee shall not 
                exceed the lesser of--
                          (i) 300 percent of the licensee's private 
                        capital; or
                          (ii) $150,000,000.
                  (B) Multiple licenses under common control.--The 
                maximum amount of outstanding leverage made available 
                to 2 or more licensees that are commonly controlled (as 
                determined by the Administrator) and not under capital 
                impairment shall not exceed $350,000,000.
                  (C) Investments in low-income geographic areas.--
                          (i) Calculation of outstanding leverage.--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.
                          (ii) Maximum leverage.--
                                  (I) In general.--The maximum amount 
                                of outstanding leverage made available 
                                to--
                                          (aa) any 1 licensee described 
                                        in subclause (II) shall not 
                                        exceed the lesser of--

                                                  (AA) 300 percent of 
                                                private capital of the 
                                                licensee; or

                                                  (BB) $175,000,000; 
                                                and

                                          (bb) 2 or more licensees 
                                        described in subclause (II) 
                                        that are under common control 
                                        (as determined by the 
                                        Administrator) shall not exceed 
                                        $250,000,000.
                                  (II) Licensees.--A licensee referred 
                                to in subclause (I) is a company that--
                                          (aa) applies for and receives 
                                        a license under section 303102 
                                        of this title after September 
                                        30, 2009; and
                                          (bb) certifies in writing 
                                        that not less than 50 percent 
                                        of the dollar amount of 
                                        investments of the company 
                                        shall be made in companies that 
                                        are located in a low-income 
                                        geographic area.
                  (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 1 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 Federal 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.
  (c) 3d Party Debt.--The Administrator--
          (1) shall not permit a licensee having outstanding leverage 
        to incur 3d 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 3d party debt only on such terms and subject to such 
        conditions as the Administrator may establish by regulation or 
        otherwise.
  (d) Investments in Smaller Enterprises.--The Administrator shall 
require a licensee, as a condition of approval of an application for 
leverage, to certify in writing that not less than 25 percent of the 
licensee's aggregate dollar amount of financings shall be provided to 
smaller enterprises.
  (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 303101(g) of 
                this title; and
                  (B) shall determine 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, taking into 
                account--
                          (i) the nature of the assets of the licensee;
                          (ii) the amount and terms of any 3d party 
                        debt owed by the licensee; and
                          (iii) any other factors that the 
                        Administrator determines to be relevant.
          (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 301101(14)(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 guaranteed 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 1 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 1st 
                        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--
                                  (I) the amount of participating 
                                securities; divided by
                                  (II) the amount of private capital; 
                                multiplied by
                                  (III) 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--
                                  (I) 9 percent; plus
                                  (II) 3 percent of--
                                          (aa) 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) 1 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. 303105. 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 1st 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. 303106. 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 1 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. 303107. 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, without the approval of the Administrator, exceed 10 percent of 
the sum of--
          (1) the private capital of the licensee; and
          (2) the total amount of leverage projected by the licensee in 
        the licensee's business plan that was approved by the 
        Administrator at the time of the grant of the licensee's 
        license.
Sec. 303108. 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. 303109. 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 1 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. 303110. 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. 303111. 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. 303112. 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--
          (1) before the date 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; or
          (2) on or after the date on which such a law is adopted or 
        such a certification is made, pursuant to a commitment to make 
        the loan that was entered into before the date on which the law 
        is adopted or the certification is made.
  (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. 303113. 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. 303114. 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. 303115. 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 303104 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 1 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. 303116. 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. 303117. 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) a lesser criminal offense that involves 
                        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) a lesser criminal offense that involves 
                        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. 303118. 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 SBA, 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 SBA, 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 
                                SBA, 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 1 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 1 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. 303119. 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. 303120. 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 (1), 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 SBA, 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 office 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. 303121. 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 United States district court or in 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.--
                  (A) In general.--The Administrator may act as trustee 
                or receiver of the licensee on appointment by a court 
                as provided in subparagraph (B).
                  (B) Appointment.--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. 303122. Jurisdiction; service of process
  A civil action or other proceeding brought under section 
303118(b)(4)(C), 303119, 303120, or 303121 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.
305101.  Definitions.
305102.  Establishment of program.
305103.  Approval of new markets venture capital companies.
305104.  Guarantee of new markets venture capital company debentures.
305105.  Trust certificates.
305106.  Fees.
305107.  Operational assistance grants.
305108.  Bank participation.
305109.  Reporting requirement.
305110.  Regulations.
305111.  Unlawful acts and omissions.
305112.  Examinations.
305113.  Removal or suspension of directors or officers.
305114.  Direct civil enforcement actions.
Sec. 305101. 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 303104(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 1 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 305103(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 
        305103(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. 305102. 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 305103(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 305104 of this title; and
          (3) make grants to new markets venture capital companies and 
        specialized small business investment companies under section 
        305107 of this title.
Sec. 305103. 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 1 
                or more investors (other than Federal agencies) that 
                meet criteria established by the Administrator.
                  (C) Resources for operational assistance from others 
                than the administrator.--
                          (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. 305104. 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 
        301101(16)(C)(iii) of this title) if the capital is contributed 
        by an investor other than a Federal agency.
  (e) Investment Limitations.--
          (1) Definition of covered new markets venture capital 
        company.--In this subsection, the term ``covered new markets 
        venture capital company'' means a new markets venture capital 
        company--
                  (A) that is granted final approval by the 
                Administrator under section 305103(c) of this title on 
                or after March 1, 2002; and
                  (B) that has obtained a financing from the 
                Administrator.
          (2) Limitation.--Except to the extent approved by the 
        Administrator, a covered new markets venture capital company 
        shall not acquire or issue commitments for securities under 
        this division for any single enterprise in an aggregate amount 
        equal to more than 10 percent of the sum of--
                  (A) the regulatory capital of the covered new markets 
                venture capital company; and
                  (B) the total amount of leverage projected in the 
                participation agreement of the covered new markets 
                venture capital company.
Sec. 305105. 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 305104 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 
                1 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 305104 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. 305106. Fees
  Except as provided in section 305105(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. 305107. 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 
                305103(b)(4)(C) 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 305103(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. 305108. 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. 305109. 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. 305110. Regulations
  The Administrator may issue such regulations as the Administrator 
considers necessary to carry out this chapter.
Sec. 305111. 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) a lesser criminal offense that involves 
                        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) a lesser criminal offense that involves 
                        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. 305112. 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 SBA 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 SBA.
Sec. 305113. Removal or suspension of directors or officers
  Using the procedures for removing or suspending a director or an 
officer of a licensee under section 303120 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. 305114. 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 United States 
        district court or in 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.
307101.  Definitions.
307102.  Establishment of program.
307103.  Approval of renewable fuel capital investment companies.
307104.  Guarantee of renewable fuel capital investment company 
          debentures.
307105.  Trust certificates.
307106.  Fees.
307107.  Operational assistance grants.
307108.  Bank participation.
307109.  Reporting requirement.
307110.  Regulations.
307111.  Examinations.
307112.  Conflicts of interest; unlawful acts and omissions; revocation 
          and suspensions of licenses; cease and desist orders; 
          injunctions and other orders.
307113.  Removal or suspension of directors or officers.
307114.  Termination.
Sec. 307101. 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 
        307103(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 307103(c) of this 
                        title; and
                          (ii) has entered into a participation 
                        agreement with the Administrator; or
                  (B) that has received conditional approval under 
                section 307103(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 
        303104(g)(1)(B) of this title) investments.
Sec. 307102. 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 in 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 307103(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 307104 of this title; and
          (3) make grants to renewable fuel investment capital 
        companies under section 307107 of this title.
Sec. 307103. 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 1 
        applicant from each geographic SBA region.
          (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 1 
                or more investors (other than Federal agencies) that 
                meet criteria established by the Administrator.
                  (C) Resources for operational assistance from others 
                than the administrator.--
                          (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 (b)--
          (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. 307104. 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 1-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 includes capital that is 
        considered to be Federal funds (within the meaning of section 
        301101(16)(C)(iii) of this title) if the capital is contributed 
        by an investor other than a Federal agency.
Sec. 307105. 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 307104 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 
                1 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 307104 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. 307106. Fees
  (a) In General.--Except as provided in section 307105(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 1 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. 307107. 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 307103(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 
                307103(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 307103(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. 307108. 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. 307109. 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. 307110. Regulations
  The Administrator may issue such regulations as the Administrator 
considers necessary to carry out this chapter.
Sec. 307111. 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 SBA 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 SBA.
Sec. 307112. 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 303113, 303117, 
303119, and 303121(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 303113, 303117, 
303119, and 303121(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 303113, 303117, 303119, and 303121(b) of this 
title.
Sec. 307113. Removal or suspension of directors or officers
  Using the procedures for removing or suspending a director or an 
officer of a licensee under section 303120 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. 307114. Termination
  The program shall terminate at the end of the 2d 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.
321101.  Definitions.
321102.  Surety bond guarantees and indemnification agreements.
321103.  Surety bond guarantee fund.
Sec. 321101. 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 321102(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 
        321102(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 321102(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 321102(a)(5) 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 preferred 
        surety bond guarantee program.
          (14) Small business concern.--The term ``small business 
        concern'' means a business concern that meets the size standard 
        for the primary industry in which the business concern and the 
        affiliates of the business concern are engaged, as determined 
        by the Administrator in accordance with the North American 
        Industry Classification System.
          (15) Subcontractor.--The term ``subcontractor'' means a 
        person that contracts with a prime contractor or with another 
        subcontractor to perform a contract.
          (16) 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. 321102. 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 $6,500,000, as adjusted for 
        inflation in accordance with section 1908 of title 41.
          (2) Increased amount if necessary.--The Administrator may 
        guarantee a surety under paragraph (1) for a total work order 
        or contract amount that does not exceed $10,000,000 if a 
        contracting officer of a Federal agency certifies that a 
        guarantee in the increased amount is necessary.
          (3) 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.
          (4) 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.
          (5) 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.--Subject to paragraph (3), the 
        Administrator shall be relieved of liability (in whole or in 
        part, at the discretion of the Administrator) 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 $6,500,000;
                  (C) the participating surety has breached a material 
                term or condition of the guarantee agreement or 
                indemnification agreement; or
                  (D) the participating surety has substantially 
                violated the regulations prescribed under subsection 
                (d).
          (3) Limitation on denial of liability.--In the case of a bond 
        made or executed with the prior approval of the Administrator, 
        the Administrator shall not deny liability to a surety based on 
        material information that was provided as part of the guarantee 
        application.
  (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 SBA'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. 321103. 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.
331101.  Definitions.
331102.  Establishment of program.
331103.  Debenture guarantees.
331104.  Private debenture sales.
331105.  Pooling of debentures.
331106.  Prohibition of acceptance of funding with certain conditions, 
          priorities, restrictions, or requirements.
331107.  Accredited lenders program.
331108.  Premier certified lenders program.
331109.  Foreclosure and liquidation of loans.
Sec. 331101. 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 331107 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 331108 
        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 331103(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. 331102. Establishment of program
  There is established within SBA 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. 331103. 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 1 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 1 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.
                                  (XII) Reduction of rates of 
                                unemployment in labor surplus areas, as 
                                those areas are determined by the 
                                Secretary of Labor.
          (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) 1 job for every $65,000 guaranteed by the 
                        Administrator; or
                          (ii) in the case of a project of a small 
                        manufacturer, 1 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 1 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) 1 job for every $65,000 
                                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, 1 
                                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) Funding.--
                  (A) In general.--Funds necessary to meet the extent 
                of participation or amount of paid-in capital 
                determined by the Administrator under paragraph (1) 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) 3d 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 1 or more 3d 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 1 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 1 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 1 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.
          (7) Permissible debt refinancing.--
                  (A) In general.--Any financing approved under the 
                program may include a limited amount of debt 
                refinancing.
                  (B) Expansions.--If a project involves expansion of a 
                small business concern, any amount of existing 
                indebtedness that does not exceed 50 percent of the 
                project cost of the expansion may be refinanced and 
                added to the expansion cost if--
                          (i) the proceeds of the indebtedness were 
                        used to acquire land, including a building 
                        situated on the land, to construct a building 
                        on the land or to purchase equipment;
                          (ii) the existing indebtedness is 
                        collateralized by fixed assets;
                          (iii) the existing indebtedness was incurred 
                        for the benefit of the small business concern;
                          (iv) the financing under the program will be 
                        used only for refinancing existing indebtedness 
                        or costs relating to the project financed under 
                        the program;
                          (v) the financing under the program will 
                        provide a substantial benefit to the borrower 
                        when prepayment penalties, financing fees, and 
                        other financing costs are accounted for;
                          (vi) the borrower has been current on all 
                        payments due on the existing debt for not less 
                        than 1 year preceding the date of refinancing; 
                        and
                          (vii) the financing under section 331104 of 
                        this title will provide better terms or a 
                        better rate of interest than the existing 
                        indebtedness at the time of refinancing.
                  (C) Refinancing not involving expansion.--
                          (i) Definitions.--In this subparagraph:
                                  (I) Borrower.--The term ``borrower'' 
                                means a small business concern that 
                                submits an application to a development 
                                company for financing under this 
                                subparagraph.
                                  (II) Eligible fixed asset.--The term 
                                ``eligible fixed asset'' means tangible 
                                property relating to which the 
                                Administrator may provide financing 
                                under this section.
                                  (III) Qualified debt.--The term 
                                ``qualified debt'' means indebtedness--
                                          (aa) that--

                                                  (AA) was incurred not 
                                                less than 2 years 
                                                before the date of the 
                                                application for 
                                                assistance under this 
                                                subparagraph;

                                                  (BB) is a commercial 
                                                loan;

                                                  (CC) is not subject 
                                                to a guarantee by a 
                                                Federal agency;

                                                  (DD) the proceeds of 
                                                which were used to 
                                                acquire an eligible 
                                                fixed asset;

                                                  (EE) was incurred for 
                                                the benefit of the 
                                                small business concern; 
                                                and

                                                  (FF) is 
                                                collateralized by 
                                                eligible fixed assets; 
                                                and

                                          (bb) for which the borrower 
                                        has been current on all 
                                        payments for not less than 1 
                                        year before the date of the 
                                        application.
                          (ii) Authority.--A project that does not 
                        involve the expansion of a small business 
                        concern may include the refinancing of 
                        qualified debt if--
                                  (I) the amount of the financing is 
                                not more than 90 percent of the value 
                                of the collateral for the financing, 
                                except that, if the appraised value of 
                                the eligible fixed assets serving as 
                                collateral for the financing is less 
                                than the amount equal to 125 percent of 
                                the amount of the financing, the 
                                borrower may provide additional cash or 
                                other collateral to eliminate any 
                                deficiency;
                                  (II) the borrower has been in 
                                operation for all of the 2-year period 
                                ending on the date of the loan; and
                                  (III) in the case of a financing for 
                                which the Administrator determines that 
                                there will be an additional cost 
                                attributable to the refinancing of the 
                                qualified debt, the borrower agrees to 
                                pay a fee in an amount equal to the 
                                anticipated additional cost.
                          (iii) Financing for payment of business 
                        expenses.--
                                  (I) Financing for business 
                                expenses.--The Administrator may 
                                provide financing to a borrower that 
                                receives financing that includes a 
                                refinancing of qualified debt under 
                                clause (ii), in addition to the 
                                refinancing under clause (ii), to be 
                                used solely for the payment of business 
                                expenses.
                                  (II) Application for financing.--An 
                                application for financing under 
                                subclause (I) shall include--
                                          (aa) a specific description 
                                        of the expenses for which the 
                                        additional financing is 
                                        requested; and
                                          (bb) an itemization of the 
                                        amount of each expense.
                                  (III) Condition on additional 
                                financing.--A borrower shall not use 
                                any part of the financing under this 
                                clause for nonbusiness purposes.
                          (iv) Loans based on job creation and 
                        retention.--The Administrator may provide 
                        financing under this subparagraph for a 
                        borrower that meets the job creation and 
                        retention goals under subsection (b).
                          (v) Nondelegation.--Notwithstanding section 
                        331108(e) of this title, the Administrator 
                        shall not permit a premier certified lender to 
                        approve or disapprove an application for 
                        assistance under this subparagraph.
                          (vi) Total amount of loans.--The 
                        Administrator may provide not more than a total 
                        of $7,500,000,000 of financing under this 
                        subparagraph for each fiscal year.
                          (vii) Limitation.--Unless, on application by 
                        a development company and after determining 
                        that the refinance loan is needed for good 
                        cause, the Administrator waives this clause, a 
                        development company shall limit its financings 
                        under this section so that, during any fiscal 
                        year, new financings under this subparagraph 
                        shall not exceed 50 percent of the amount 
                        loaned under the certified development company 
                        program during the previous fiscal year.
                          (viii) Effective period.--This subparagraph 
                        shall be in effect in any fiscal year during 
                        which the cost to the Federal Government of 
                        making guarantees under this section is zero.
  (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 303104(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 $5,000,000.
                          (ii) Exceptions.--
                                  (I) Public policy objectives.--The 
                                amount of a loan for a project directed 
                                toward 1 or more of the public policy 
                                objectives described in subsection 
                                (b)(1)(B)(iii) shall not exceed 
                                $5,000,000.
                                  (II) Small manufacturers.--The amount 
                                of a loan to a small manufacturer for 
                                any 1 project shall not exceed 
                                $5,500,000.
                                  (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 $5,500,000.
                                  (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 
                                $5,500,000.
  (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 1-
                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 
        Administrator--
                  (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. 331104. 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. 331105. 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. 331106. 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. 331107. 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 SBA'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. 331108. 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 1 or more accounts 
                with 1 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) 1 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 1 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.--The Administrator shall allow a premier 
        certified lender to withdraw from its loss reserve amounts 
        attributable to any debenture that is repaid.
  (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 Administrator 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 331103(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 
        331103 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. 331109. 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 (110 
                        Stat. 3009-736), as in effect on April 8, 2007;
                          (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 1 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 3d 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 
        3d party lender, associate of a 3d 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 Administrator 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.
401101.  Definitions.
401102.  Establishment of program.
401103.  Uses of assistance.
401104.  Allocation of assistance; subgrants.
401105.  Matching requirement.
401106.  Applications for assistance.
401107.  Recordkeeping.
401108.  Implementation.
401109.  Authorization of appropriations.
Sec. 401101. 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'' means 
        a person having income described in the definition of ``low-
        income'' 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. 401102. 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. 401103. 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. 401104. 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 401103(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 401103(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. 401105. 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 
Administrator.
  (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. 401106. 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. 401107. 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 that Act.
Sec. 401108. Implementation
  The Administrator shall by regulation establish such requirements as 
are necessary to carry out this chapter.
Sec. 401109. 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.
403101.  Definitions.
403102.  Establishment of the Interagency Committee.
403103.  Duties of the Interagency Committee.
403104.  Membership of the Interagency Committee.
403105.  Reports from the Interagency Committee.
403106.  Establishment of the National Women's Business Council.
403107.  Duties of the Council.
403108.  Membership and staff of the Council.
403109.  Studies and other research.
403110.  Authorization of appropriations.
Sec. 403101. 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 403106 of this 
        title.
          (3) Interagency committee.--The term ``Interagency 
        Committee'' means the Interagency Committee on Women's Business 
        Enterprise established under section 403102 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. 403102. Establishment of the Interagency Committee
  There is established an interagency committee to be known as the 
Interagency Committee on Women's Business Enterprise.
Sec. 403103. 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. 403104. Membership of the Interagency Committee
  (a) In General.--
          (1) Participants.--The Interagency Committee shall be 
        composed of 1 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) SBA.
                  (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) SBA.--With respect to SBA, 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 1 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. 403105. 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 403103(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. 403106. 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. 403107. 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 403103(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. 403108. 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 103115 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. 403109. 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 1 or more public or 
private entities.
Sec. 403110. 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 403109 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.

                   Chapters 405 Through 489--Reserved

                       Chapter 491--Miscellaneous

Sec.
491101.  Small business economic policy.
491102.  Small Business Manufacturing Task Force.
491103.  Test program for negotiation of comprehensive small business 
          subcontracting plans.
491104.  Coordination of Federal assistance for small business concerns 
          adversely affected by NAFTA.
491105.  Disaster aid to major sources of employment.
491106.  Background check policy; fingerprinting.
491107.  Expedited resolution of contract dispute matters.
491108.  Small Business Procurement Advisory Council.
491109.  Small business energy efficiency.
491110.  Information regarding, and marketing of, programs for veterans 
          and reservists.
491111.  Outreach regarding health insurance options available to 
          children.
491112.  Secondary market lending authority.
Sec. 491101. 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. 491102. 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 SBA programs and services 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 SBA employee 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. 491103. 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 1 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 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, and small business concerns owned and controlled by 
        women.
          (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 (4).
          (2) Scope.--The comprehensive subcontracting plan of a 
        contractor--
                  (A) shall apply to the entire business organization 
                of the contractor or to 1 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) Report.--Each comprehensive subcontracting plan of a 
        contractor shall require that the contractor report to the 
        Secretary of Defense semiannually the following:
                  (A) The dollar amount of subcontracts awarded to 1st 
                tier subcontractors during the 6-month period covered 
                by the report 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 veterans, and small business 
                concerns owned and controlled by women, with the 
                information set forth separately--
                          (i) by North American Industrial 
                        Classification System code;
                          (ii) by major defense acquisition program (as 
                        defined in section 2430(a) of title 10);
                          (iii) by contract, if--
                                  (I) the contract is for the 
                                maintenance, overhaul, repair, 
                                servicing, rehabilitation, salvage, 
                                modernization, or modification of 
                                supplies, systems, or equipment; and
                                  (II) the total value of the contract, 
                                including options, exceeds 
                                $100,000,000; and
                          (iv) by military department.
                  (B) The total number of subcontracts active under the 
                test program during the 6-month period covered by the 
                report that, but for this section, would have required 
                a subcontracting plan under section 243103 of this 
                title.
                  (C) The amount of costs incurred during the 6-month 
                period covered by the report in negotiating, complying 
                with, and reporting on comprehensive subcontracting 
                plans.
                  (D) The amount of costs avoided during the 6-month 
                period covered by the report by adoption of a 
                comprehensive subcontracting plan.
          (4) 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 $100,000,000.
  (c) Waiver of Certain Subcontracting Plan Requirements.--A Department 
of Defense contractor is not required to negotiate or submit a 
subcontracting plan under section 243103 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 243103(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 Good Faith Effort To Comply With Comprehensive 
Subcontracting Plan.--
          (1) In general.--A contractor that has negotiated a 
        comprehensive subcontracting plan under the test program shall 
        be subject to section 243105 of this title regarding the 
        assessment of liquidated damages for failure to make a good 
        faith effort to comply with the contractor's comprehensive 
        subcontracting plan and the goals specified in the plan.
          (2) Failure a factor to be considered as part of evaluation 
        of past performance.--A failure by a contractor to make a good 
        faith effort to comply with the contractor's comprehensive 
        subcontracting plan and the goals specified in the plan shall 
        be a factor to be considered as part of the evaluation of past 
        performance of an offeror.
          (3) Evaluation of past performance.--In each fiscal year in 
        which the test program is in effect, the Secretary of Defense 
        shall report to Congress on any negotiated comprehensive 
        subcontracting plan that the Secretary determines did not meet 
        the subcontracting goals negotiated in the comprehensive 
        subcontracting plan for the prior fiscal year.
  (e) Report.--Not later than September 30, 2015, the Comptroller 
General shall submit to the Committee on Armed Services and Committee 
on Small Business of the House of Representatives and the Committee on 
Armed Services and Committee on Small Business and Entrepreneurship of 
the Senate a report on the results of the test program.
  (f) Termination.--The test program shall terminate on December 31, 
2027.
Sec. 491104. 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. 491105. 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. 491106. Background check policy; fingerprinting
  The Administrator shall not require fingerprints to be obtained for 
background check purposes from any participant in any SBA 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. 491107. 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 
chapter 71 of title 41.
  (c) Effect of Section.--This section does not create any right under 
chapter 71 of title 41.
Sec. 491108. 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;
          (2) to submit comments reflecting such positions to 
        appropriate regulatory authorities;
          (3) to conduct reviews of the Office of Small and 
        Disadvantaged Business Utilization of each Federal agency to 
        determine the compliance of each Office with requirements under 
        section 251109 of this title; and
          (4) to identify best practices for maximizing small business 
        utilization in Federal contracting that may be implemented by 
        Federal agencies having procurement powers.
  (c) Membership.--The Council shall be composed of the following 
members:
          (1) The Administrator (or a designee of the Administrator).
          (2) The Director of the Minority Business Development Agency.
          (3) The Director of Small and Disadvantaged Business 
        Utilization of each procuring agency.
  (d) Chairman.--The Council shall be chaired by the Administrator (or 
a designee of 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).
  (g) Annual Report.--The Council shall submit to the Committee on 
Small Business of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate an annual report that 
describes--
          (1) the comments submitted under subsection (b)(2) during the 
        1-year period ending on the date on which the report is 
        submitted, including any outcomes related to the comments;
          (2) the results of reviews conducted under subsection (b)(3) 
        during the 1-year period; and
          (3) best practices identified under subsection (b)(4) during 
        the 1-year period.
Sec. 491109. 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.--The Administrator shall develop a strategy to 
        educate, encourage, and assist small business concerns in 
        adopting energy efficient building fixtures and equipment.
  (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 I 
                                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 271111(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 1 small business 
                development center in a State to participate in the 
                efficiency program.
          (5) Matching requirement.--Section 271102(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 1st 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 271102(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 1st 
        grant under the efficiency program.
  (d) Telecommuting pilot program.--
          (1) In general.--The Administrator shall conduct, in not more 
        than 5 SBA regions, 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 SBA regions.
          (6) Authorization of appropriations.--There is authorized to 
        be appropriated to SBA $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. 491110. 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 221103 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. 491111. Outreach regarding health insurance options available to 
                    children
  (a) Definitions.--In this section:
          (1) Certified development company.--The term ``certified 
        development company'' means a development company that is 
        participating in the certified development company program.
          (2) 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.).
          (3) 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.).
          (4) 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.).
          (5) 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 SBA, 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 SBA district offices.
          (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 SBA 
        website.
          (6) Report.--
                  (A) In general.--Every 2 years, 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. 491112. Secondary market lending authority
  (a) Definitions.--In this section:
          (1) Authority.--The term ``Authority'' mean the Secondary 
        Market Lending Authority established under subsection (b)(2).
          (2) SBA secondary market.--The term ``SBA secondary market'' 
        means the market for the purchase and sale of loans originated, 
        underwritten, and closed under subtitles I and II.
          (3) Systemically important SBA secondary market broker-
        dealer.--The term ``systemically important SBA secondary market 
        broker-dealer'' means an entity designated as such under 
        subsection (b)(1).
  (b) Responsibilities, Authorities, Organization, and Limitations.--
          (1) Designation of systemically important sba secondary 
        market broker-dealers.--The Administrator shall establish a 
        process by which the Administrator, in consultation with the 
        Board of Governors of the Federal Reserve and the Secretary of 
        the Treasury, shall designate as systemically important SBA 
        secondary market broker-dealers entities that are vital to the 
        continued operation of the SBA secondary market by reason of 
        their purchase and sale of the government guaranteed portion of 
        loans, or pools of loans, originated, underwritten, and closed 
        under subtitles I and II.
          (2) Establishment of SBA secondary market lending 
        authority.--
                  (A) Organization.--
                          (i) In general.--The Administrator shall 
                        establish within the SBA an office, to be known 
                        as the Secondary Market Lending Authority, to 
                        provide loans to systemically important SBA 
                        secondary market broker-dealers to be used for 
                        the purpose of financing the inventory of the 
                        government guaranteed portion of loans, 
                        originated, underwritten, and closed under 
                        subtitles I and II, or pools of such loans.
                          (ii) Director.--The Administrator shall 
                        appoint a Director of the Authority, who shall 
                        report to the Administrator.
                          (iii) Personnel.--The Administrator may hire 
                        such personnel as are necessary to operate the 
                        Authority.
                          (iv) Contracting of operations.--The 
                        Administrator may contract such Authority 
                        operations as the Administrator determines to 
                        be necessary to qualified 3d party persons.
                          (v) Contracting with fiduciary and custodial 
                        agents.--The Administrator may contract with 
                        private sector fiduciary and custodial agents 
                        as necessary to operate the Authority.
                  (B) Loans.--
                          (i) Process.--The Administrator shall 
                        establish by regulation a process under which 
                        systemically important SBA secondary market 
                        broker-dealers may apply to the Administrator 
                        for loans under this section.
                          (ii) Contents.--
                                  (I) Process.--The regulation under 
                                clause (i) shall provide a process by 
                                which the Administrator shall consider 
                                and make decisions regarding whether to 
                                extend a loan applied for under this 
                                section.
                                  (II) Documentation.--The regulation 
                                under clause (i) shall provide for such 
                                loan documents, legal covenants, 
                                collateral requirements and other 
                                required documentation as necessary to 
                                protect the interests of the 
                                Administrator and the United States.
                                  (III) Other provisions.--The 
                                regulation under clause (i) shall 
                                include provisions to ensure that--
                                          (aa) loans made under this 
                                        section are for the sole 
                                        purpose of financing the 
                                        inventory of the Government 
                                        guaranteed portion of loans, 
                                        originated, underwritten, and 
                                        closed under subtitles I and 
                                        II, or pools of such loans.
                                          (bb) loans made under this 
                                        section are fully 
                                        collateralized to the 
                                        satisfaction of the 
                                        Administrator;
                                          (cc) there is no limit to the 
                                        frequency with which a borrower 
                                        may borrow under this section 
                                        unless the Administrator 
                                        determines that doing so would 
                                        create an undue risk of loss to 
                                        the Administrator or the United 
                                        States; and
                                          (dd) there is no limit on the 
                                        size of a loan, subject to the 
                                        discretion of the 
                                        Administrator.
                          (iii) Interest.--Interest on loans under this 
                        section shall not exceed the Federal Funds 
                        target rate established by the Federal Reserve 
                        Board of Governors plus 25 basis points.
                          (iv) Custodial accounts.--The Administrator 
                        shall establish custodial accounts to safeguard 
                        any collateral pledged to the Administrator in 
                        connection with a loan under this section.
                          (v) Process for disbursements and receipts.--
                        The Administrator shall establish a process to 
                        disburse and receive funds to and from 
                        borrowers under this section.
                  (C) Limitations on use of loan proceeds by 
                systemically important SBA secondary market broker-
                dealers.--
                                  (I) Use of funds for specified 
                                purposes.--The Administrator shall 
                                ensure that borrowers under this 
                                section are using funds provided under 
                                this section only for the purpose 
                                specified in subparagraph 
                                (B)(ii)(III)(aa).
                                  (II) Use of funds for other than 
                                specified purposes.--If the 
                                Administrator finds that funds provided 
                                under this section were used for any 
                                purpose other than a purpose specified 
                                in subparagraph (B)(ii)(III)(aa), the 
                                Administrator shall--
                                          (aa) require immediate 
                                        repayment of outstanding loans;
                                          (bb) prohibit the borrower, 
                                        its affiliates, or any future 
                                        corporate manifestation of the 
                                        borrower from using the 
                                        Authority; and
                                          (cc) take any other action 
                                        that the Administrator, in 
                                        consultation with the Attorney 
                                        General, considers appropriate.
  (c) Fees.--The Administrator shall charge fees (up front, annual, or 
both) at a specified percentage of the loan amount that is at such a 
rate that the cost of the program under the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661 et seq.) shall be equal to zero.
  (d) Regulations.--The Administrator shall promulgate regulations 
under this section. The notice requirements of section 553(b) of title 
5 shall not apply to promulgation of regulations under this section.
  (e) Budget Treatment.--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 (2 U.S.C. 661 et seq.).
  (f) Monthly Report.--Not later than the 3d business day of each 
month, the Administrator shall submit to Congress a report that 
discloses--
          (1) the aggregate loan amounts extended during the preceding 
        month under this section;
          (2) the aggregate loan amounts repaid under this section 
        during the preceding month;
          (3) the aggregate loan amount outstanding under this section;
          (4) the aggregate value of assets held as collateral under 
        this section;
          (5) the amount of any defaults or delinquencies on loans made 
        under this section;
          (6) the identity of any borrower found by the Administrator 
        to have misused funds made available under this section; and
          (7) any other information that the Administrator considers 
        necessary to fully inform Congress of undue risk of financial 
        loss to the United States in connection with loans made under 
        this section.
  (g) Duration of Authority.--The authority of this section shall 
remain in effect for a period of 2 years after February 17, 2009.

  (b) Title 18.--
          (1) In general.--Part I of title 18, United States Code, is 
        amended by adding at the end the following:

    ``CHAPTER 124--SMALL BUSINESS AND RELATED MATTERS UNDER TITLE 57

``Sec.
``2731.  Small business and related matters under title 57.
``Sec. 2731. Small business and related matters under title 57
  ``(a) Definitions.--In this chapter, the terms `Administrator', 
`qualified HUBZone small business concern', `SBA', `small business 
concern', `small business concern owned and controlled by socially and 
economically disadvantaged individuals', `small business concern owned 
and controlled by women', `subcontract', and `subcontractor' have the 
meanings given those terms in section 101102 of title 57.
  ``(b) 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 subtitle I, II, or III of title 
57, shall be imprisoned not more than 2 years, fined under this title, 
or both.
  ``(c) Unlawful Act by Person Connected With SBA.--A person connected 
in any capacity with SBA 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 
        SBA officer, auditor, or examiner--
                  ``(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 of the 
                Administrator;
          ``(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 under this title, or 
both.
  ``(d) 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 1 year, fined under 
        this title, or both; or
          ``(2) if the value of the property exceeds $100, shall be 
        imprisoned not more than 5 years, fined under this title, or 
        both.
  ``(e) Misrepresentation of Status as Small Business Concern.--
          ``(1) 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--
                  ``(A) a prime contract to be awarded under chapter 
                251, 253, 261, or 263 of title 57;
                  ``(B) a subcontract to be awarded under chapter 233 
                of title 57;
                  ``(C) a subcontract that is to be included as part or 
                all of a goal contained in a subcontracting plan 
                required under section 243103 title 57; or
                  ``(D) 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 
                of title 57 for a definition of program eligibility;
        shall be imprisoned not more than 10 years, fined not more than 
        $500,000, or both.
          ``(2) Limitation on Liability.--This subsection does not 
        apply to any conduct in violation of paragraph (1) if the 
        violator acts in good faith reliance on a written advisory 
        opinion issued as provided under section 105102(d) of title 57.
  ``(f) False Certification of Past Compliance.--A person that falsely 
certifies past compliance with the requirements of section 233128 of 
title 57 shall be imprisoned not more than 10 years, fined not more 
than $500,000, or both.
  ``(g) Subcontracting Requirements and Limitations.--
          ``(1) Subcontracting requirement.--A person that fails to 
        supply the product of a domestic manufacturer or processor that 
        is a small business concern as required under section 
        299107(b)(4) of title 57 shall be imprisoned not more than 10 
        years, fined not more than $500,000, or both.
          ``(2) Subcontracting limitation.--A person that expends on 
        subcontractors an amount in excess of the amount permitted 
        under paragraph (1), (2), or (3) of subsection (b) of section 
        299107 of title 57 or in excess of an amount established by the 
        Administrator under subsection (e) of that section shall be 
        imprisoned not more than 10 years, fined not more than the 
        greater of--
                  ``(A) $500,000; or
                  ``(B) the amount of the excess expenditure;
        or both imprisoned and fined.''.
          (2) Conforming amendment.--The table of contents of part I of 
        title 18, United States Code, is amended by adding at the end 
        the following:
Small business and related matters under title 57................2731''.



SEC. 4. CONFORMING AMENDMENTS.

  (a) 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)''.
  (b) 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''.
  (c) Section 237(a) of the Disaster Relief Act of 1970 (15 U.S.C. 
636d(a)) is amended in the 1st 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''.
  (d) Section 874(b) of Public Law 114-92 (129 Stat. 941) is amended by 
striking ``Section 411(c)(1) of the Small Business Investment Act of 
1958 (15 U.S.C. 694b(c)(1))'' and inserting ``section 321102 of title 
57, United States Code,''.

SEC. 5. TRANSITIONAL AND SAVINGS PROVISIONS.

  (a) Definitions.--In this section:
          (1) Restated provision.--The term ``restated provision'' 
        means a provision of title 18 or 57, United States Code, that 
        is enacted by section 3.
          (2) Source provision.--The term ``source provision'' means a 
        provision of law that is replaced by a restated provision.
  (b) Cutoff Date.--The restated provisions replace certain provisions 
of law enacted on or before August 18, 2017. 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 restated 
provision. If a law enacted after that date is otherwise inconsistent 
with a restated provision or a provision of this Act, that law 
supersedes the restated provision or provision of this Act to the 
extent of the inconsistency.
  (c) Original Date of Enactment Unchanged.--A restated provision is 
deemed to have been enacted on the date of enactment of the 
corresponding source provision.
  (d) References to Restated Provisions.--A reference to a restated 
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 restated 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 restated 
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 restated provision.

SEC. 6. 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                  15 U.S.C. 631
                                                          3(a)(1) through (5)(A)    15 U.S.C. 632(a)(1) through
                                                                                                         (5)(A)
                                                            3(a)(6) through (cc)    15 U.S.C. 632(a)(6) through
                                                                                                           (cc)
                                                                               4                  15 U.S.C. 633
                                                          5(a) through (i)(3)(C)       15 U.S.C. 634(a) through
                                                                                                      (i)(3)(C)
                                                                         5(i)(4)            15 U.S.C. 634(i)(4)
                                                                               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(a) through (d) (3d   15 U.S.C. 644(a) through (d)
                                                                       sentence)                  (3d sentence)
                                                            15(e) through (s)(3)       15 U.S.C. 644(e) through
                                                                                                         (s)(3)
                                                                   15(s)(5), (6)       15 U.S.C. 644(s)(5), (6)
                                                                           15(u)               15 U.S.C. 644(u)
                                                                           15(v)               15 U.S.C. 644(v)
                                                                              16                  15 U.S.C. 645
                                                                              17                  15 U.S.C. 646
                                                                              18                  15 U.S.C. 647
                                                                              19             15 U.S.C. 631 note
                                                         20(a)(1), (2), (4), (b)             15 U.S.C. 631 note
                                                                through (e), (j)
                                                                              21                  15 U.S.C. 648
                                                            22(a) through (l)(6)       15 U.S.C. 649(a) through
                                                                                                         (l)(6)
                                                                     22(l)(7)(B)         15 U.S.C. 649(l)(7)(B)
                                                                        22(l)(9)            15 U.S.C. 649(l)(9)
                                                                              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
                                                                              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(a), (b)         15 U.S.C. 657j(a), (b)
                                                                              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. 657q
                                                               45(a) through (d)   15 U.S.C. 657r(a) through (d)
                                                                              46                 15 U.S.C. 657s
 
Small Business Investment Act of 1958 (Public Law                            101             15 U.S.C. 661 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. 690b
                                                                             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 (1st sentence)   15 U.S.C. 636b (1st 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. 631b
 
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 Innovation Development Act of 1982                              2             15 U.S.C. 638 note
 (Public Law 97-219)..............................
 
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 heading
                                                       ``salaries and expenses''
                                                           under heading ``Small
                                                    Business Administration'', at
                                                                   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                            132             15 U.S.C. 637 note
 Amendment Act of 1988 (Public Law 100-590).......
                                                                          133(c)             15 U.S.C. 644 note
 
Business Opportunity Development Reform Act of                                 2             15 U.S.C. 636 note
 1988 (Public Law 100-656)........................
                                                                             101             15 U.S.C. 636 note
                                                                          303(f)             15 U.S.C. 637 note
                                                                          304(b)             15 U.S.C. 637 note
                                                                          401(b)             15 U.S.C. 633 note
                                                                             410             15 U.S.C. 636 note
                                                                             504             15 U.S.C. 636 note
                                                                             505             15 U.S.C. 636 note
                                                                          602(a)             15 U.S.C. 637 note
 
Public Law 101-189................................                           834             15 U.S.C. 637 note
 
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
                                                                             402             15 U.S.C. 637 note
 
Women's Business Development Act of 1991 (Public                 3 (2d 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
                                                                       222(b)(2)             15 U.S.C. 632 note
                                                                             226             15 U.S.C. 634 note
 
Public Law 102-484................................                          4237             15 U.S.C. 638 note
 
Small Business Research and Development                                      102             15 U.S.C. 638 note
 Enhancement Act of 1992 (Public Law 102-564).....
                                                                             306             15 U.S.C. 638 note
 
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. 644a
 
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                      Sec. 103(h)             15 U.S.C. 634 note
 (Public Law 104-208).............................
                                                                 208(d)(4)(B)(i)             15 U.S.C. 683 note
 
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. 638 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 Innovation Research Program          1(a)(9) [title I, Sec. 102],             15 U.S.C. 638 note
 Reauthorization Act of 2000 (Public Law 106-554).           114 Stat. 2763A-668
                                                    1(a)(9) [title I, Sec. 108],             15 U.S.C. 638 note
                                                             114 Stat. 2763A-671
 
Small Business Investment Company Amendments Act                            6(d)             15 U.S.C. 697 note
 of 2001 (Public Law 107-100).....................
 
Small Business Reauthorization and Manufacturing                        Sec. 147                 15 U.S.C. 631c
 Assistance Act of 2004 (Public Law 108-447)......
                                                                  Sec. 152(a)(2)             15 U.S.C. 632 note
                                                                        Sec. 155                 15 U.S.C. 657g
 
Public Law 109-59.................................                         10201            15 U.S.C. 657g note
 
Public Law 109-289................................      Sec. 8018 (last proviso)             15 U.S.C. 637 note
 
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
 
Public Law 111-5, div. A, title V.................                           509                 not classified
 
Small Business Jobs Act of 2010 (Public Law 111-                    1131(b), (c)             15 U.S.C. 636 note
 240).............................................
                                                                            1136             15 U.S.C. 632 note
                                                                         1202(a)            15 U.S.C. 649b note
                                                                         1205(b)             15 U.S.C. 649 note
                                                                            1207            15 U.S.C. 649b note
                                                                            1321             15 U.S.C. 637 note
                                                                            1344             15 U.S.C. 632 note
                                                              1347(a)(1), (b)(3)             15 U.S.C. 637 note
                                                                         1401(c)             15 U.S.C. 636 note
                                                                            1402            15 U.S.C. 648b note
 
Public Law 112-74.................................                           532                 15 U.S.C. 633a
 
SBIR/STTR Reauthorization Act of 2011 (Public Law                   5107(c), (d)             15 U.S.C. 638 note
 112-81)..........................................
                                                                            5142                 15 U.S.C. 638a
                                                                    5143(a), (c)         15 U.S.C. 638b(a), (c)
                                                                         5168(a)             15 U.S.C. 638 note
 
Public Law 112-239................................                  1622(a), (b)             15 U.S.C. 631 note
                                                                         1631(c)             15 U.S.C. 644 note
                                                                    1633(b), (c)             15 U.S.C. 631 note
                                                                         1653(b)                 15 U.S.C. 637d
                                                                         1681(b)             15 U.S.C. 645 note
                                                                         1681(c)             15 U.S.C. 632 note
                                                                    1682(b), (c)             15 U.S.C. 645 note
                                                                            1683                 15 U.S.C. 645a
                                                                            1698             15 U.S.C. 632 note
 
Public Law 113-66, div. A, title XVI..............                          1615            15 U.S.C. 657s note
 
Public Law 114-88, div. A, title I................                          1105            15 U.S.C. 657l note
 
Public Law 114-92, div. A, title VIII.............    868(b)(1) through (5), (8)             15 U.S.C. 644 note
 
Public Law 114-113, div. E, title V...............                        521(a)             15 U.S.C. 636 note
 
Public Law 114-328, div. A, title XVIII...........                       1814(b)             15 U.S.C. 644 note
                                                                         1831(c)             15 U.S.C. 632 note
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                                 <all>