[Congressional Record Volume 140, Number 133 (Wednesday, September 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 21, 1994]



                              {time}  1018


                     in the committee of the whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the bill 
(H.R. 4801) to amend the Small Business Act, and for other purposes, 
with Mr. Watt in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the rule, the gentleman from New York [Mr. LaFalce] will be 
recognized for 30 minutes, and the gentlewoman from Kansas [Mrs. 
Meyers] will be recognized for 30 minutes.
  The Chair recognizes the distinguished gentleman from New York [Mr. 
LaFalce].
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  (Mr. LaFALCE asked and was given permission to revise and extend his 
remarks.)
  Mr. LaFALCE. Mr. Chairman, I rise in strong support of H.R. 4801, the 
Small Business Reauthorization and Amendment Act of 1994.

                              {time}  1020

  Mr. Chairman, this bill provide authorizations for programs 
administered by the Small Business Administration for fiscal years 1995 
through 1997. I will be offering an amendment on behalf of myself and 
Mrs. Meyers to make reductions in some of the authorizations for the 
venture capital programs.
  For 1995, all of the SBA programs would include $153 million in 
direct loans and purchases of preferred stock, $12.2 billion in 
guarantees of loans and debentures, and $1.8 billion in guarantees of 
surety bond guarantees.
  This compares with an administration request for $23 million, $12.45 
billion, and $1.76 billion for these programs.
  For 1996, these programs would include $209 million in direct loans 
and purchases of preferred stock, $14.4 billion in guarantees of loans 
and debentures, and $1.8 billion in guarantees of surety bond 
guarantees.

  For 1997, these programs would include $275 million in direct loans 
and purchases of preferred stock, $18.4 billion in guarantees of loans 
and debentures, and $1.8 billion in guarantees of surety bond 
guarantees.
  Over the next 3 years, almost all of these increases are in the 7(a) 
General Business Loan Program, the Certified Development Company Loan 
Guarantee Program which provides long term financing for plant and 
equipment and in the new participating security financing mechanism 
being made available to small business investment companies which are 
licensed by SBA to provide venture capital to small firms.
  Other provisions of this reauthorization bill make improvements in 
the Microloan Program which provides loans averaging $10,000 per 
borrower, conform terms of export loans to more closely equate with 
needs of sellers in foreign commercial markets, and facilitate loans 
through delegation of authority to the participants in the Certified 
Lenders Program.
  Other titles in the bill will provide some relief to participants in 
the 503 Development Company Program, and two other programs, who are 
paying interest rates well above market rates and yet due to exorbitant 
prepayment penalties are precluded from prepaying these loans now held 
by the Government.
  In addition, the bill restructures the National Women's Business 
Council and reestablishes an Interagency Committee of Federal 
Policymakers to examine the ways to promote the development of women-
owned businesses.
  The committee approved this legislation by a vote of 34 to 9. I 
believe that the main objections to this bill in committee were caused 
by the proposed increases in the Small Business Investment Company and 
Specialized Small Business Investment Company Programs. These programs 
license private companies which provide venture capital to small 
businesses. I would also note that in the aggregate, even higher levels 
were requested by the administration, but that my mark, which the 
committee approved, reduced the amount of the increase which would be 
provided.
  Some have said that these programs have problems and should not be 
increased in size. I would agree that the Small Business Investment 
Company Program did have problems, but I believe that the 1992 
legislation, and the implementing regulations, corrected these 
problems. It did this by:
  Emphasizing the need for better quality SBIC management; Providing 
higher standards of applicants for licenses;
  Minimizing an SBIC's cash-flow problems by use of participating 
securities;
  Requiring more accurate valuations by each SBIC of its investments; 
and
  Increasing the frequency of audits of each SBIC and doing the audit 
within the investment division of the agency, the division which is 
responsible for supervision and approving funding requests.
  In any event, use of the new participating security was not part of 
any problem. It should not be held captive while we are more closely 
examining the old program to be sure that the problems have been fixed 
and while we await a report on the Specialized Small Business 
Investment Company Program from a private sector council.
  In the spirit of compromise, however, Mrs. Meyers and I have reached 
an agreement on these issues.
  Basically, we have agreed to continue the levels now authorized by 
law for both SSBIC Programs and for the SBIC Debenture Guarantee 
Program for fiscal years 1995 through 1997; and our agreement would set 
the program level for the new SBIC participating security at existing 
law for 1995--$400 million--but would split the difference between 
existing law and the amounts approved by the committee for the 2 out-
years. Thus the amounts authorized for the Participating Securities 
Program would be $650 million for 1996 and $900 million for 1997.

  At the appropriate time, I will offer an amendment to accomplish the 
necessary changes in the bill.
  I want to point out that interest in this program has been 
phenomenal; 75 companies with private capital of $1.3 billion have 
sought Small Business Investment Company licenses this year. This 
amount would fill much of the need for venture capital by small 
businesses. But, these private investors are putting up this money 
contingent upon the Government becoming funding partners and making 
additional capital available to these companies.
  This legislation requires the SBA to submit a detailed report on the 
Small Business Investment Company Program next spring. If it is 
favorable, as I anticipate, it will be my intention to revisit the out-
year authorizations for the Small Business Investment Company Program.
  This legislation also requires SBA to convene a blue ribbon private 
sector panel to examine the Specialized Small Business Investment 
Company Program and to make recommendations. If this panel does as well 
as the Cloherty Commission which examined the regular Small Business 
Investment Company Program several years ago, I expect we will receive 
information upon which to formulate legislation to reinvigorate the 
Specialized Small Business Investment Company Program so that it can 
more fully serve the venture capital needs of minority small 
businesses.
  Before concluding, I want to thank all of the Members of the 
committee for their work and cooperation in formulating this bill and 
presenting it to the House. Particularly, I want to thank Mrs. Meyers 
for her assistance and cooperation and acknowledge the contributions of 
many other Members such as Representative Marjorie Margolies-Mezvinsky 
and Representative Lucille Roybal-Allard who worked closely to develop 
title VI of the bill to enhance the development of women-owned 
enterprises.
  Mr. Chairman, I yield 1 minute to the gentleman from Georgia [Mr. 
Lewis].
  (Mr. LEWIS of Georgia asked and was given permission to proceed out 
of order.)


                         remembering jean young

  Mr. LEWIS of Georgia. Mr. Chairman, I rise today with a deep sense of 
sadness and sorrow over the passing of Jean Childs Young, the wife of 
Ambassador Andrew Young. Our prayers are with Andy, her children, her 
grandchildren, and other members of her family.
  Many of us in the civil rights movement got to know this beautiful 
and gifted woman as she worked with her husband, Ambassador Young, 
during the early days of movement. In Jean Childs Young, we had a 
pillar of the civil rights movement. She was the personification of 
grace, charm, intellect, beauty, and compassion.
  Jean Childs Young represented the very best of America. She was a 
source of inspiration to thousands. For many of us and especially those 
who participated in the civil rights movement, her passing means the 
loss of a dear and special friend.
  Mrs. Young was always charming and generous. She was a great 
supporter of children's issues and education. She worked tirelessly to 
improve conditions for the world's children and to improve educational 
opportunities for all.
  Mrs. Young will be missed by the many who knew her and her life's 
work. Her passing is a great loss.

                              {time}  1030

  It is a great loss to the city of Atlanta, to the State of Georgia, 
to the Nation, and to the world.
  Mrs. MEYERS of Kansas. Mr. Chairman, I yield myself such time as I 
may consume.
  Mr. Chairman, I rise in support of H.R. 4801, the Small Business 
Administration Reauthorization Act. H.R. 4801 is our basic 3-year 
reauthorization for the Small Business Administration. H.R. 4801 sets 
the program levels for the SBA's various direct and guaranteed loan 
programs. Included in the bill are authorization levels for the major 
small business financial assistance programs, such as the 7(a) General 
Business Loan Program, the Certified Development Company Program, and 
the Small Business Investment Company Programs.
  A major function of the SBA is assisting small businesses in their 
quest for capital, and these reauthorization levels are set to meet the 
anticipated demand through 1997. The majority of SBA loan programs are 
run on a guaranteed basis, giving the taxpayer the most bang for the 
buck. For example, the 7(a) Loan Program, the SBA's flagship program, 
will be authorized to guarantee over $9 billion in loans with an outlay 
of less than $250 million. Programs like this provide the vital capital 
assistance necessary to make small business the effective job creator 
that drives our economy, a benefit that far outweighs the cost to the 
taxpayer.
  H.R. 4801 also reauthorizes the counseling and assistance programs at 
the SBA. These programs, like the Small Business Development Centers 
and SCORE, provide valuable, affordable advice to small business men 
and women, giving them access to experience and knowledge which might 
otherwise be hard to find.
  In addition to reauthorizing programs, H.R. 4801 also makes numerous 
improvements in several SBA programs. The committee has voted to 
establish new Accredited and Premier Lender Programs that will give the 
Certified Development Companies more flexibility and discretion in 
their lending, and reduce the impediments to their efforts to promote 
growth and job creations.
  The committee has also increased the limits on the International 
Trade Lending Program to enable small business to access foreign 
markets and help expand our economy by expanding our markets.
  The SBA reauthorization bill removes a provision prohibiting the SBA 
from adjusting the size standards for the five industries in the 
Competitiveness Demonstration Program. These industries--construction, 
dredging, waste removal, architecture and engineering, and ship 
repair--have been frozen at outdated size standards for several years 
as a result of the prohibition. In addition, we are granting the 
Administrator of the SBA greater flexibility to try some new methods 
for determining proper small business size standards.
  H.R. 4801 also offers a solution to the long-standing problem of 
debenture prepayment penalties in the 503 Loan Program. I am pleased 
that the appropriators have found at least some of the funds necessary 
to alleviate this inequitable situation.
  I am pleased that H.R. 4801 takes important steps to strengthen our 
efforts to assist small businesses owned and controlled by women 
through the creation of an Interagency Committee on Women's Business 
Enterprise. This committee, consisting of policymakers from all cabinet 
departments and other Federal agencies, will work in concert with the 
private sector advisory entity, the National Women's Business Council. 
Together they will identify, and take steps toward solving, problems 
that act as barriers to the success of women-owned businesses.
  Finally, this legislation instructs the Office of Advocacy at the SBA 
to conduct a comprehensive study of the impact of Federal regulation, 
paperwork, and taxes on small business. This has been a growing concern 
both in Congress and the small business community and I am glad that we 
are taking steps to address it.
  Mr. Chairman, this is a good bill. The committee worked hard and held 
a series of seven hearings, in addition to our usual oversight efforts, 
and Chairman LaFalce deserves a great deal of credit for his efforts. I 
ask my colleagues to support this bill and support small business.
  Mr. Chairman, I yield 3 minutes to the gentleman from Louisiana [Mr. 
Baker].
  Mr. BAKER of Louisiana. Mr. Chairman, I thank the gentlewoman for 
yielding time to me.
  Mr. Chairman, I wish to express my appreciation to the gentlewoman 
from Kansas [Mrs. Meyers], the ranking member, and the members of the 
committee for the inclusion of an important and, I think, innovative 
program in SBA authorization. America today is constructed of a number 
of business interests, but far and above all others, mom and pop 
businesses are what America is all about.
  In fact, when we look at the number of employees in businesses around 
the country today, as an example, over 90 percent of the businesses in 
America today employ less than 25 people. Seventy percent or more 
employ less than 10, yet, when we look at the traditional definition of 
a small business in terms of the administration's definition of a small 
business, we find it is 500 employees, or total receipts of less than 
$5 million a year, so many of the programs requiring government 
enterprises to do business with small firms, in fact, turn out to be 
very large businesses. One-half of 1 percent of all the approved 8(a) 
contractors in my State, for example, get over 90 percent of all the 
contracts. Yes, they are the very large firms, not the small mom and 
pops that make up Main Street America.
  Mr. Chairman, a new program, a new requirement, has been included in 
this legislation called a very small business set-aside, which creates 
for the first time an ability for a Federal procurement agency to do 
business with a company with less than 10 employees, thereby allowing 
the mom and pops on Main Street America to compete successfully for 
Federal dollars which are spent on goods and services.
  Mr. Chairman, this set-aside has nothing to do with race or sex or 
any other normal demographic. It simply allows any businessman who 
truly is a small business to compete with others for the opportunity to 
see their firm grow from 5 employees to perhaps 10.
  Mr. Chairman, if we are indeed to see economic expansion and real job 
creation across our country, it is going to come from allowing small 
businesses to participate in the huge Federal expenditures for goods 
and services. This is a very important new initiative, and I certainly 
wish to express my appreciation to the Members on both sides of the 
aisle who allowed this innovative approach to be tested. I am 
optimistic that over the coming months, as we look seriously at the 
problems of the 8(a) program, we can find a way to allow small business 
to truly share in the expenditures of massive Federal Government. It is 
an appropriate and logical step for us to take.
  Mr. LaFALCE. Mr. Chairman, I yield such time as she may consume to 
the gentlewoman from California [Ms. Roybal-Allard], so we might engage 
in a colloquy.
  Ms. ROYBAL-ALLARD. Mr. Chairman, first of all, I rise in strong 
support of H.R. 4801, the Small Business Reauthorization and Amendments 
Act of 1994. This act helps provide critically needed support for the 
small businesses in this country.
  I would also like to thank the committee for allowing me, in 
conjunction with my distinguished colleague, the gentlewoman from 
Pennsylvania [Ms. Margolies-Mezvinsky], to amend H.R. 4801 to preserve 
the independence and the funding of the National Women's Business 
Council so it may continue its crucial work of promoting women's 
business ownership, and for adopting my amendment to authorize the use 
of Mobile Resource Centers to expand SBA's outreach efforts to 
traditionally underserved urban and rural areas.
  Mr. Chairman, as previously agreed, at this time, I would like to 
engage in a brief colloquy with the distinguished chairman of the Small 
Business Committee.
  Mr. Chairman, during the committee's deliberations on H.R. 4801, I 
raised concerns about the distribution of loan guarantees made to 
minorities and women under the SBA's 7(a) loan program.
  As you know, the 7(a) loan represents 90 percent of the SBA's total 
loan commitment. There is evidence, however, that minorities and women 
are not being adequately served by this program.
  The most recent report on the 7(a) program found that women-owned 
businesses received only 11.5 percent of the total 7(a) guaranteed 
loans, and that all minority groups combined received only 12.7 percent 
of these loans.
  Mr. Chairman, I would ask the chairman of the committee, am I correct 
in my understanding that he agree that the distribution of 7(a) loan 
guarantees needs closer congressional scrutiny, and that the committee, 
under your leadership, will work to ensure that the SBA provides 
accurate information to the committee on the equitable distribution of 
7(a) loan guarantees to women and minorities?

                              {time}  1040

  Mr. LaFALCE. Mr. Chairman, I thank the gentlewoman very much for 
taking the lead in these very important issues.
  Our committee is extremely concerned about the amount of loans being 
provided to women and to minorities and, therefore, we have discussed 
this on many occasions with Administrator Bowles. He shares this deep 
concern.
  In fact, this month after examination of data on a district-by-
district basis, the Administrator and each and every district director 
agreed on specific goals for improvements in lending to minorities and 
to women; indeed, entered into contracts to achieve certain goals.
  There are, however, some problems with the statistics now maintained 
by the SBA. The agency and its program participants are working to not 
only identify the problems but then to correct them.
  In addition, there may be a conflict between an SBA requirement that 
lenders compile and report loan data based upon sex or race and what is 
known as Regulation B of the Federal Reserve Board which seems to 
prohibit lenders from considering such factors.
  The committee will continue to work with the SBA and the Federal 
Reserve Board to resolve this situation and allow the SBA to compile 
accurate and meaningful data which this committee can then evaluate as 
part of the oversight function with respect to SBA lending.
  It is my belief that the amount of lending to women and to minorities 
is far too low and I assure the gentlewoman that we will continue to 
work very closely with her to secure significant improvement.
  Ms. ROYBAL-ALLARD. Mr. Chairman, I thank the gentleman. As always, I 
appreciate his willingness to work with the committee members.
  Mrs. MEYERS of Kansas. Mr. Chairman, I yield 2 minutes to the 
gentlewoman from Connecticut [Mrs. Johnson].
  Mrs. JOHNSON of Connecticut. Mr. Chairman, I rise in support of this 
legislation and commend the committee chairman and ranking member on 
their leadership on small business issues and on this reauthorization.
  There are many good things in this reauthorization bill from the 
point of view of the ability of small businesses to grow and develop in 
America, but there are a couple of provisions that I am very concerned 
about. I am disappointed with the cut in the budget of the Office of 
women's Business Ownership and I regret also the reduction in support 
for the National Women's Business Council, because the majority of 
small businesses in America are being founded by women. They are 
founding very small businesses. The challenge to America if we are 
going to continue to create jobs at a pace that serves our people is to 
help those small businesses grow into medium-sized businesses and 
finally into big businesses. The Office of Women's Business Ownership 
has been more practical, has been more closely allied with the women 
business ownership community than any other office of government and 
has developed realistic resources to help those small businesses 
founded by women to grow into stronger small businesses and finally 
into medium-sized businesses.
  Women-owned businesses do face barriers in today's economy. That is 
why the interagency committee that is set up in this legislation is 
really a very significant contribution. There are many barriers to 
small businesses participating in, for example, government purchasing 
contracts and there are even additional barriers for women-owned small 
businesses, and that is still true in the broader, private economy. 
Access to credit and those kinds of things are more difficult for 
women-owned small businesses. Since women are founding the majority of 
small businesses in America, it is indeed unfortunate, and was a very, 
I think, unfortunate signal from this administration--which is where I 
know this initiative originated--to send. We should not be cutting the 
support for the Office of Women's Business Ownership and the National 
Women's Business Council in our appropriations process, and which two 
oppose that cut, two nonetheless, appreciate this committee's strong 
support for the small business community and sensitivity to the needs 
and interests of our small business owners, many of whom are inventive, 
resourceful, strong women of America.
  Mr. LaFALCE. Mr. Chairman, I yield 2 minutes to the gentleman from 
Illinois [Mr. Poshard].
  Mr. POSHARD. Mr. Chairman, I rise in support of the bill. Small 
Business Administration programs are often overlooked by those of us 
who frequently praise small business as an engine of growth in our 
economy. Smaller firms certainly have been the source of most of this 
country's new jobs and innovations in recent years. And no one deserves 
more credit for that fact than the thousands of entrepreneurs and 
managers who undertake risk and devote much of their lives to pursuing 
the special satisfactions of owning and managing their own companies. 
Still, I think it is important to note the growing role of, and the 
increasing demand for, SBA programs that assist this crucial sector.
  I would like to praise the role of the chairman of the Small Business 
Committee, Mr. LaFalce, for his stewardship over this bill and for his 
leadership on the committee. This bill contains significant program 
innovations, and its authorization levels for SBA's crucial credit 
programs reflect both the increased demand for and the success of those 
programs.
  These SBA programs deliver great direct benefit to our domestic 
economy at low taxpayer cost. They constitute a sound investment in the 
truest sense, generally more than paying for themselves in returned 
revenue. And I believe Administrator Erskine Bowles is revitalizing the 
SBA to promote even better service to its ultimate customer--the 
country's small businesses.
  Today's bill contains one new program, the Accredited Lender Program, 
which I would like to mention. The Small Business Committee included 
the ALP concept, drawn from a bill which I had previously introduced. 
The Accredited Lender Program will allow certified development 
companies participating in the 504 loan program, who have a proven 
record of success in that program, to receive expedited processing from 
SBA on their loan applications--usually within 5 working days.
  By avoiding duplication of paperwork, the Accredited Lenders Program 
will allow small businesses to receive approval and credit promptly, 
which we know can often be the difference between a deal happening and 
its falling through. It can be the difference between jobs being 
created or not. I am confident that this new ALP program will help the 
504 program to deliver even more benefit than that successful program 
does now, with no significant increase in exposure of taxpayer dollars 
to risk of loss.
  Mrs. MEYERS of Kansas. Mr. Chairman, I yield back the balance of my 
time.
  Mr. LaFALCE. Mr. Chairman, I yield 2 minutes to the gentleman from 
New York [Mr. Flake].
  (Mr. FLAKE asked and was given permission to revise and extend his 
remarks.)
  Mr. FLAKE. Mr. Chairman, I rise in support of H.R. 4801, and 
congratulate the gentleman from New York and the gentlewoman from 
Kansas for crafting legislation that has drawn bipartisan support in 
the Small Business Committee. This reauthorization bill contains 
several programs which will foster the growth of small business.
  Small business, as we all recognize, represents the fabric of 
economic recovery and future growth in both large and small 
communities. I have witnessed first hand in my district the benefits of 
flourishing small businesses. These benefits include higher employment 
rates and reduced crime. Perhaps the greatest benefit, however, are the 
partnerships that have formed between business, local government, and 
community groups. These groups should be commended, but they should 
also be assisted by the Federal Government.
  The SBA serves in this capacity and Congress would be remiss if it 
did not allocate adequate resources and programs to assist small 
business. Through export loans, accredited lenders programs, assistance 
for women-owned businesses, and other programs, H.R. 4801 provides 
innovative assistance to small business.
  Mr. Baker from Louisiana also deserves commendation for his amendment 
which establishes a 3-year pilot program to provide procurement 
opportunities for businesses with 10 employees or less. I concur with 
my colleague from Louisiana, and believe that mom-and-pop style 
business deserve assistance from the SBA. Finally, I urge support for 
this bill, despite its lowered levels of funding for the SBIC and SSBIC 
programs. Although I would prefer the levels proposed by the 
administration, I still recognize that the overall bill contains the 
essential programs required to assist small business. I would therefore 
urge strong bipartisan support for this legislation.

                              {time}  1050

  Mr. LaFALCE. Mr. Chairman, I thank the gentleman from New York for 
his fine remarks.
  Before yielding back the balance of my time, I would be remiss if I 
did not point out that one of the previous speakers, the gentleman from 
Illinois [Mr. Poshard] was extremely helpful in the formation of this 
bill, and indeed authored the legislation establishing the accredited 
lenders program as part of the CDC or 504 program whereby experienced 
community development companies will receive priority processing of 
their applications. So my special thanks to him, too.
  Ms. SNOWE. Mr. Chairman, I rise in support of H.R. 4801, the Small 
Business Reauthorization Act of 1994 to authorize funding for the Small 
Business Administration [SBA] for the next 3 fiscal years. Small 
businesses play a critical role in the long-term growth and prosperity 
of our Nation by providing stable, permanent jobs. The SBA has made a 
significant contribution in helping create and maintain small 
businesses around the country and in my home State of Maine, so I am 
proud to support the reauthorization of the Small Business 
Administration.
  Small business means jobs. Nationally, 54 percent of American workers 
are employed in small business--those firms with fewer than 500 
employees--according to the SBA. Small businesses are the backbone of 
Maine's economy. Roughly, 97 percent of businesses owned in Maine are 
small businesses, and these employ 62 percent of Maine's nonfarm 
workers.
  The Small Business Administration has played an integral part in the 
formation and successful operation of Maine's small businesses. Through 
the first 6 months of this year, the SBA has provided $33.46 million in 
the form of direct loans and guaranteed funding for Maine's small 
businesses. Since 1992, SBA funding for Maine has totaled $128.9 
million.
  In part because of SBA's involvement, Maine businesses continue to 
increase. According to the latest SBA data, new business formations 
rose 6.2 percent in Maine from 1991 to 1992. This compares with a 1.1 
percent rise nationally over the same period. Maine ranked 16th in the 
Nation in business formations.
  The contribution of the SBA toward creating a productive small 
business environment is unquestionable. Over my years of service in 
Congress, including 4 years as a member of the House Small Business 
Committee, I have been proud to work with the SBA to help develop small 
business and address its concerns.
  In June 1991, I helped the Small Business Administration announce the 
launching of a new program in New England designed to address the 
credit crunch. Called the Revolving Line of Credit Program, it enabled 
the SBA to guarantee up to 75 percent of a revolving line of credit 
extended by a commercial lender. Such federally guaranteed loans can be 
used as working capital by small manufacturing businesses. I also 
cohosted then-SBA Administrator Pat Saiki's visit to Maine in 1992 to 
discuss what the SBA could do to help small business in Maine.
  Recently, I have been working with my colleagues on the New England 
Congressional Caucus to address the difficulties of small businesses in 
our region. As cochair of the caucus, I held a meeting on June 10, 
1993, with the four Federal regulatory agencies to discuss why Maine 
small businesses have trouble obtaining credit and what approaches can 
be taken to fix the problem. Part of the solution is to relieve the 
regulatory burden on lending institutions, and legislation is currently 
pending in Congress to do just that.
  Mr. Chairman, I supported the SBA reauthorization in 1990 and I will 
support this SBA reauthorization bill because the SBA works for small 
business. Maine small business benefit from SBA programs, like the 
microloan program, inaugurated during the Bush administration by 
Senator Bumpers, and which provides direct small business loans up to 
$25,000 to entrepreneurs.
  Microloans were created as a demonstration project in the Senate 
version of the fiscal year 1992 Commerce, Justice, State appropriations 
bill and Senator Bumpers is credited for crafting the language for the 
microloan program. Senator Bumpers' demonstration microloan program was 
later incorporated into H.R. 4111, the Small Business Credit Crunch 
Relief Act of 1992.
  Maine has one of the oldest microloan programs in the country. In the 
spring of 1992, Coastal Enterprises, Inc. of Maine was selected as one 
of 35 qualifying organizations nationwide to initiate the Microloan 
Demonstration Program. However, as far back as 1984, some Maine 
localities were creating loan pools to make small loans to start-up 
businesses and served a similar purpose as the subsequent SBA microloan 
program.

  From the fall of 1992 through March 1994, 87 microloans were made in 
Maine, creating 134 jobs. During this period, Maine has received over 
$1 million in microloans. I am pleased that this bill authorizes $130 
million for microloans in fiscal year 1995, with increased 
authorizations in the subsequent 2 fiscal years.
  I further support the bill's establishment of an Accredited Lenders 
Program, which will facilitate processing of loan applications and 
eventually allow qualified lenders to approve SBA-guaranteed loans on 
behalf of the SBA directly.
  As cochair of the congressional Caucus for Women's Issues, I strongly 
support the bill's provisions on the development of women-owned 
businesses. According to the latest Census Bureau statistics, women-
owned businesses increased 65.3 percent during the 1980's. The bill 
establishes an Office of Women's Business Ownership at SBA. It also 
restructures the National Women's Business Council as an advisory 
council to the SBA and Congress, although I regret that funding for the 
NWBC has been reduced by more than half of what it has been in the 
past--from $500,000 to $200,000.
  Mr. Chairman, the Small Business Administration works for small 
business and small business makes America work. Small business and 
entrepreneurship are the engines that drive the American economy. The 
Small Business Administration fulfills a vital role in support of 
American small business and therefore I am proud to support SBA 
reauthorization.
  Ms. SCHENK. Mr. Chairman, I rise today in support of H.R. 4801, the 
Reauthorization of the Small Business Administration. As the Federal 
agency responsible for providing assistance to the Nation's small 
businesses, the Small Business Administration performs many important 
functions. Reauthorization is crucial to the thousands of businesses 
that rely on SBA loans and guarantees.
  The bill makes a number of key changes in SBA programs that will lead 
to the expansion of opportunities for small businesses, but I would 
like to focus for a moment on one program in particular--the Microloan 
Program. The Microloan Program makes loans to local intermediaries such 
as an Economic Development Corporation or a Chamber of Commerce which 
in turn, loan money to very small business or entrepreneurs who 
otherwise would not be able to borrow money. This allows local 
organizations, not the Federal bureaucracy to makes the lending 
decisions. Since its inception 3 years ago, the program has met with 
remarkable success. Unfortunately, current legislative limitations have 
constrained its expansion.
  H.R. 4801 rightly removes arbitrary State funding caps and 
restrictions on the number of intermediaries per State. These 
limitations penalize large States such as California and prohibit many 
worthy organizations from competing to become an intermediary. The bill 
also eliminates the intermediary cap of $1.25 million so that regions 
can expand their program as business opportunities grow.
  Expansion of the Microloan Program is a smart, sensible way to 
encourage new start-up business which are the key to reviving many 
local economies. By eliminating caps and increasing the amount of money 
available to small business owners, we can give more Americans 
something many have always dreamed of--the opportunity to own their own 
business. I urge my colleagues to support passage of this important 
bill.
  Mr. LaFALCE. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the amendment in the nature of a substitute 
consisting of the text of the bill modified by the amendments printed 
in the bill and the additional amendments printed in part 1 of House 
Report 103-627 is considered as an original bill for the purpose of 
amendment and is considered as read.
  The text of the committee amendment in the nature of a substitute, as 
modified, is as follows:

                               H.R. 4801

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That this 
     Act may be cited as the ``Small Business Reauthorization and 
     Amendment Act of 1994''.
                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by striking all of such section after subsection 
     (k), as added by section 115(a) of the Small Business Credit 
     and Business Opportunity Enhancement Act of 1992, and by 
     inserting in lieu thereof the following:
       ``(l) The following program levels are authorized for 
     fiscal year 1995:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $142,000,000 in direct 
     and immediate participation loans; and of such sum, the 
     Administration is authorized to make $12,000,000 in loans as 
     provided in section 7(a)(10) and $130,000,000 in loans as 
     provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $12,320,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $9,315,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $2,200,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958; and
       ``(C) $20,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $33,000,000 in purchases of preferred securities;
       ``(B) $285,000,000 in guarantees of debentures, of which 
     $55,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $500,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $600,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) For the Service Corps of Retired Executives program 
     authorized by section 8(b)(1) of this Act, the Administration 
     is authorized to make grants or enter cooperative agreements 
     not to exceed $3,500,000, and for the small business 
     institute program authorized by section 8(b)(1) of this Act, 
     the Administration is authorized to make grants or enter 
     cooperative agreements not to exceed $3,000,000.
       ``(m) There are authorized to be appropriated to the 
     Administration for fiscal year 1995 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.
       ``(n) The following program levels are authorized for 
     fiscal year 1996:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $208,000,000 in direct 
     and immediate participation loans; and of such sum the 
     Administration is authorized to make $13,000,000 in loans as 
     provided in section 7(a)(10) and $195,000,000 in loans as 
     provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $14,610,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $10,935,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $2,500,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958; and
       ``(C) $20,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $39,000,000 in purchases of preferred securities;
       ``(B) $405,000,000 in guarantees of debentures, of which 
     $55,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $750,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $600,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) For the Service Corps of Retired Executives program 
     authorized by section 8(b)(1) of this Act, the Administration 
     is authorized to make grants or enter cooperative agreements 
     not to exceed $3,675,000, and for the small business 
     institute program authorized by section 8(b)(1) of this Act, 
     the Administration is authorized to make grants or enter 
     cooperative agreements not to exceed $3,150,000.
       ``(o) There are authorized to be appropriated to the 
     Administration for fiscal year 1996 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.
       ``(p) The following program levels are authorized for 
     fiscal year 1997:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $284,000,000 in direct 
     and immediate participation loans; and of such sum the 
     Administration is authorized to make $14,000,000 in loans as 
     provided in section 7(a)(10) and $270,000,000 in loans as 
     provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $18,875,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $14,175,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $3,000,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958; and
       ``(C) $20,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $45,000,000 in purchases of preferred securities;
       ``(B) $555,000,000 in guarantees of debentures, of which 
     $55,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $1,125,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $600,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) For the Service Corps of Retired Executives program 
     authorized by section 8(b)(1) of this Act, the Administration 
     is authorized to make grants or enter cooperative agreements 
     not to exceed $3,860,000, and for the small business 
     institute program authorized by section 8(b)(1) of this Act, 
     the Administration is authorized to make grants or enter 
     cooperative agreements not to exceed $3,310,000.
       ``(q) There are authorized to be appropriated to the 
     Administration for fiscal year 1997 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.''.
                TITLE II--FINANCIAL ASSISTANCE PROGRAMS

     SEC. 201. MICROLOAN FINANCING PILOT.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended by adding the following new paragraph at the end:
       ``(12) Deferred participation loan pilot.--During fiscal 
     years 1995 through 1997, on a pilot basis, in lieu of making 
     direct loans to intermediaries as authorized in paragraph 
     (1)(B), the Administration may participate on a deferred 
     basis of up to 100 percent on loans made to intermediaries by 
     a for-profit or non-profit entity or by alliances of such 
     entities subject to the following conditions:
       ``(A) Number of loans.--The Administration shall not 
     participate in providing financing on a deferred basis to 
     more than ten intermediaries in urban areas per year and to 
     more than ten intermediaries in rural areas per year.
       ``(B) Term of loans.--The term of such loans shall be ten 
     years. During the first five years of the loan, the 
     intermediary shall be required to pay interest only; and 
     during the second five years of the loan, the intermediary 
     shall be required to fully amortize principal and interest 
     payments.
       ``(C) Interest rate.--The interest rate on such loans shall 
     be the rate specified by paragraph (3)(F) for direct 
     loans.''.

     SEC. 202. MICROLOAN STATE LIMITATION.

       Section 7(m)(7)(C) of the Small Business Act (15 U.S.C. 
     636(m)(7)(C)) is repealed.

     SEC. 203. LIMIT ON PARTICIPATION.

       Section 7(m)(7)(A) of the Small Business Act (15 U.S.C. 
     636(m)(7)(A)) is amended to read as follows:
       ``(A) Number of participants.--During this demonstration 
     program, the Administration is authorized to fund, on a 
     competitive basis, not more than 240 microloan programs.''.

     SEC. 204. EQUITABLE DISTRIBUTION.

       Section 7(m)(8) of the Small Business Act (15 U.S.C. 
     636(m)(8)) is amended to read as follows:
       ``(8) Equitable distribution of intermediaries.--In 
     approving microloan program applicants, the Administration 
     shall select participation by such intermediaries as will 
     ensure appropriate availability of loans to small businesses 
     located in urban areas and in rural areas.''.

     SEC. 205. AMOUNT OF LOANS TO INTERMEDIARIES.

       Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
     636(m)(3)(C)) is amended to read as follows:
       ``(C) Loan limits.--In determining the amount of funding 
     which the Administration may provide to one intermediary, it 
     shall take into consideration the small business population 
     in the area served by the intermediary.''.

     SEC. 206. LOANS TO EXPORTERS.

       Section 7(a)(14)(A) of the Small Business Act (15 U.S.C. 
     636(a)(14)(A)) is amended to read as follows:
       ``(A) The Administration may provide extensions, standby 
     letters of credit, revolving lines of credit for export 
     purposes, and other financing to enable small business 
     concerns, including small business export trading companies 
     and small business export management companies, to develop 
     foreign markets. A bank or participating lending institution 
     may establish the rate of interest on such financings as may 
     be legal and reasonable.''.

     SEC. 207. WORKING CAPITAL INTERNATIONAL TRADE LOANS.

       Section 7(a)(3)(B) of the Small Business Act (15 U.S.C. 
     636(a)(3)(B)) is amended to read as follows:
       ``(B) if the total amount outstanding and committed (on a 
     deferred basis) solely for the purposes provided in paragraph 
     (16) to the borrower from the business loan and investment 
     fund established by this Act would exceed $1,250,000, of 
     which not more than $750,000 may be used for working capital, 
     supplies, or financings under section 7(a)(14) for export 
     purposes; and''.

     SEC. 208. GUARANTEES ON INTERNATIONAL TRADE LOANS.

       Section 7(a)(2)(B)(iv) of the Small Business Act (15 U.S.C. 
     636(a)(2)(B)(iv)) is amended to read as follows:
       ``(iv) not less than 85 percent nor more than 90 percent of 
     the financing outstanding at the time of disbursement if such 
     financing is a loan under paragraph (14) or under paragraph 
     (16).''.

     SEC. 209. ACCREDITED LENDERS PROGRAM.

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

     ``SEC. 507. ACCREDITED LENDERS PROGRAM.

       ``(a) The Administration is authorized to establish an 
     Accredited Lenders Program for qualified State and local 
     development companies which meet the requirements of 
     subsection (b).
       ``(b) The Administration may designate a qualified State or 
     local development company as an accredited lender if such 
     company--
       ``(1) has been an active participant in the development 
     company program for at least the last 12 months;
       ``(2) has well-trained, qualified personnel who are 
     knowledgeable in the Administration's lending policies and 
     procedures for the development company program;
       ``(3) has the ability to process, close, and service 
     financing for plant and equipment under section 502 of this 
     Act;
       ``(4) has a loss rate on its debentures that is acceptable 
     to the Administration;
       ``(5) has a history of submitting to the Administration 
     complete and accurate debenture guaranty application 
     packages; and
       ``(6) has demonstrated the ability to serve small business 
     credit needs for financing plant and equipment as provided in 
     section 502 of this Act.
       ``(c) The Administration shall expedite the processing of a 
     loan application or servicing action submitted by a qualified 
     State or local development company that has been designated 
     as an accredited lender in accordance with subsection (b).
       ``(d) The designation of a qualified State or local 
     development company as an accredited lender may be suspended 
     or revoked if the Administration determines that the 
     development company has not continued to meet the criteria 
     for eligibility under subsection (b) or that the development 
     company has failed to adhere to the Administration's rules 
     and regulations or is violating any other applicable 
     provision of law. Suspension or revocation shall not affect 
     any outstanding debenture guarantee.
       ``(e) For purposes of this section, the term `qualified 
     State or local development company' has the same meaning as 
     in section 503(e).''.
       (b) The Administration shall promulgate regulations to 
     carry out this section within 90 days of the date of the 
     enactment of this Act.
       (c) The Administration shall report to the Small Business 
     Committee of the United States Senate and to the Small 
     Business Committee of the United States House of 
     Representatives within one year, and annually thereafter, on 
     the implementation of this section, specifically including 
     data on the number of development companies designated as 
     accredited lenders, their debenture guarantee volume, their 
     loss rates, and the average processing time on their 
     guarantee applications, along with such other information as 
     the Administration deems appropriate.

     SEC. 210. PREMIER LENDERS PROGRAM.

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

     ``SEC. 508. PREMIER LENDERS PROGRAM.

       ``(a) The Administration is authorized to establish a 
     Premier Lenders Program for certified development companies 
     which meet the requirements of subsection (b).
       ``(b) The Administration may designate a participant in the 
     accredited lenders program as a premier lender if such 
     company--
       ``(1) has been an active participant in the accredited 
     lenders program for at least the last 12 months: Provided, 
     That prior to January 1, 1996, the Administration may waive 
     this provision if the applicant is qualified to participate 
     in the accredited lenders program;
       ``(2) has a history of submitting to the Administration 
     adequately analyzed debenture guarantee application packages; 
     and
       ``(3) agrees to assume and to reimburse the Administration 
     for 5 percent of any loss sustained by the Administration on 
     account of default by the certified development company in 
     the payment of principal or interest on a debenture issued by 
     such company and guaranteed by the Administration under this 
     section.
       ``(c) Upon approval of an applicant as a premier lender, 
     the certified development company shall establish a loss 
     reserve in an amount equal to the anticipated losses to the 
     certified development company pursuant to subsection (b)(3) 
     based upon the historic loss rate on debentures issued by 
     such company, or 3 percent of the aggregate principal amount 
     of debentures issued by such company and guaranteed by the 
     Administration under this section, whichever is greater. The 
     loss reserve shall be comprised of segregated assets of the 
     development company which shall be securitized in favor of 
     the Administration or of such unqualified letters of credit 
     or indemnity agreements from a third party as the 
     Administration deems appropriate.
       ``(d) Upon designation and qualification of a company as a 
     premier lender, and subject to such terms and conditions as 
     the Administration may determine, and notwithstanding the 
     provisions of section 503(b)(6), the Administration may 
     permit a premier lender to approve loans to be funded with 
     the proceeds of and to authorize the guarantee of a debenture 
     issued by such company. The approval by the premier lender 
     shall be subject to the final approval as to eligibility of 
     any such guarantee by the Administration pursuant to 
     subsection 503(a) of this Act, but such final approval shall 
     not include decisions by the company involving 
     creditworthiness, loan closing, or compliance with legal 
     requirements imposed by law or regulation.
       ``(e) The designation of a qualified State or local 
     development company as a premier lender may be suspended or 
     revoked if the Administration determines that the company--
       ``(1) has not continued to meet the criteria for 
     eligibility under subsection (b);
       ``(2) has not established or maintained the loss reserve 
     required under subsection (c); or
       ``(3) is failing to adhere to the Administration's rules 
     and regulations or is violating any other applicable 
     provision of law.
       ``(f) Suspension or revocation shall not affect any 
     outstanding debenture guarantee.''.
       (b) The Administration shall promulgate such regulations to 
     carry out this section within 180 days of the date of the 
     enactment of this Act.
       (c) The Administration shall report to the Small Business 
     Committee of the United States Senate and to the Small 
     Business Committee of the United States House of 
     Representatives within one year, and annually thereafter, on 
     the implementation of this section, specifically including 
     data on the number of development companies designated as 
     premier lenders, their debenture guarantee volume, and the 
     loss rate for premier lenders as compared to accredited and 
     other lenders, along with such other information as the 
     Administration deems appropriate.
       (d) Section 508 of the Small Business Investment Act of 
     1958 is repealed on October 1, 1999.
       (e) The table of contents contained in section 101 of the 
     Small Business Investment Act of 1958 is amended by adding at 
     the end of the matter relating to title V the following:

``Sec. 507. Accredited lenders program.
``Sec. 508. Premier lenders program.''.

     SEC. 211. SSBIC ADVISORY COUNCIL.

       (a) Council Established.--Not later than 90 days after the 
     date of the enactment of this Act, the Administrator of the 
     Small Business Administration shall appoint an Investment 
     Advisory Council for the Specialized Small Business 
     Investment Company Program. The Council shall consist of not 
     less than 12 individuals from the private sector, including 
     individuals--
       (1) who have experience in providing venture capital to 
     small business, particularly minority small business;
       (2) who are current participants in the Specialized Small 
     Business Investment Company Program;
       (3) who are former participants in the Specialized Small 
     Business Investment Company Program; or
       (4) who are or who represent small business concerns.
       (b) Chairman and Staff.--The Administrator shall designate 
     one of the members of the Council as chairperson. The 
     Investment Division of the Small Business Administration 
     shall provide such staff, technical support, and information 
     as shall be deemed appropriate. Council members shall be 
     deemed to be an advisory board pursuant to section 8(b)(13) 
     of the Small Business Act for purposes of reimbursement of 
     expenses.
       (C) Report.--Within six months of the date of appointment, 
     the Council shall make a written report with findings and 
     recommendations on the venture capital needs, including debt 
     and equity, of socially or economically disadvantaged small 
     business concerns and any needed Federal incentives to assist 
     the private sector to meet such needs. The report shall 
     specifically address--
       (1) the history of the Specialized Small Business 
     Investment Company program in providing assistance to such 
     concerns and the impact of such assistance on the economy;
       (2) the appropriateness and ability of the Specialized 
     Small Business Investment Company Program to meet these 
     needs;
       (3) the problems affecting the Specialized Small Business 
     Investment Company Program; and
       (4) the effectiveness of the Specialized Small Business 
     Investment Company Program and its administration by the 
     Small Business Administration.

     SEC. 212. PARTICIPATING SECURITIES FOR SMALLER SBICS.

       Section 303(g) of the Small Business Investment Act of 1958 
     (15 U.S.C. 683(g)) is amended by adding the following new 
     paragraph at the end:
       ``(13) Of the amount of the annual program level of 
     participating securities approved in Appropriations Acts, 50 
     percent shall be reserved for funding Small Business 
     Investment Companies with private capital of less than 
     $20,000,000; except that during the last quarter of each 
     fiscal year, the Administrator may, if he determines that 
     there is a lack of qualified applicants with private capital 
     under such amount, utilize all or any part of the securities 
     so reserved.''.

     SEC. 213. REPORT ON SBIC PROGRAM.

       The Small Business Administration shall provide the 
     Committee on Small Business of the House of Representatives 
     and Senate with a comprehensive report on the status and 
     disposition of all Small Business Investment Companies, 
     active or in liquidation, and a complete accounting of the 
     assets in and the basis of their portfolios, the projected 
     and actual loss rates for all portfolios in liquidation or 
     active, and a detailed accounting of valuation of the SBIC 
     program's investments. This report shall be delivered to the 
     respective Committees on Small Business no later than April 
     15, 1995.
             TITLE III--SIZE STANDARDS AND BOND GUARANTEES

     SEC. 301. COMPETITIVE DEMONSTRATION PROJECT SIZE STANDARDS.

       Section 732 of the Business Opportunity Development Reform 
     Act of 1988 (Public Law 100-656) is amended by repealing the 
     second sentence of such section.

     SEC. 302. SIZE STANDARD CRITERIA.

       Section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)) is amended to read as follows:
       ``(2) In addition to the criteria specified in paragraph 
     (1), 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 Act or any 
     other Act. Such standards may utilize number of employees, 
     dollar volume of business, net worth, net income, or a 
     combination thereof. Unless specifically authorized by 
     statute, no Federal department or agency may prescribe a size 
     standard for categorizing a business concern as a small 
     business concern, unless such proposed size standard--
       ``(A) is being proposed after an opportunity for public 
     notice and comment;
       ``(B) provides for determining--
       ``(i) the size of a manufacturing concern as measured by 
     its average employment based upon employment during each of 
     the concern's pay periods for the preceding twelve calendar 
     months;
       ``(ii) the size of a concern providing services on the 
     basis of the annual average gross receipts of the concern 
     over a period of not less than 3 years; and
       ``(iii) the size of other concerns on the basis of data 
     over a period of not less than 3 years; and
       ``(C) is approved by the Administrator if it is not being 
     proposed by the Small Business Administration.''.

     SEC. 303. SUNSET ON PREFERRED SURETY BOND GUARANTEE PROGRAM.

       Section 207 of the Small Business Administration 
     Reauthorization and Amendment Act of 1988 (Public Law 100-
     590) is amended by striking ``September 30, 1994'' and by 
     inserting in lieu thereof ``September 30, 1997''.

     SEC. 304. VERY SMALL BUSINESS CONCERNS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by redesignating section 30 as section 41 and by inserting 
     after section 29, as redesignated by section 606 of this Act, 
     the following:

     ``SEC. 30. PILOT PROGRAM FOR VERY SMALL BUSINESS CONCERNS.

       ``(a) Establishment.--The Administration shall establish 
     and carry out a pilot program in accordance with the 
     requirements of this section to provide procurement 
     opportunities to very small business concerns.
       ``(b) Subcontracting of Procurement Contracts.--
       ``(1) In general.--In carrying out the program, the 
     Administration is authorized to enter into procurement 
     contracts with the United States Government and to arrange 
     for the performance of such contracts through the award of 
     subcontracts to very small business concerns.
       ``(2) Terms and conditions.--The authority of the 
     Administration under paragraph (1) shall be subject to the 
     same terms and conditions as apply to the authority of the 
     Administration under section 8(a), except that--
       ``(A) the Administration may make such modifications to 
     such terms and conditions as the Administration determines 
     necessary; and
       ``(B) all contract opportunities offered for award under 
     the program shall be awarded on the basis of competition 
     restricted to eligible program participants.
       ``(c) Program Participation.--Very small business concerns 
     participating in the program shall be subject to the same 
     terms and conditions for program participation as apply to 
     program participants under sections 7(j) and 8(a); except 
     that--
       ``(1) the Administration may make such modifications to 
     such terms and conditions as the Administration determines 
     necessary; and
       ``(2) eligibility shall be determined on the basis of 
     qualifying as a very small business concern as defined in 
     subsection (g), in lieu of the requirements contained in 
     paragraphs (4), (5), and (6) of section 8(a).
       ``(d) Technical and Financial Assistance.--In order to 
     assist very small business concerns participating in the 
     program, the Administration is authorized--
       ``(1) to provide technical assistance to such concerns in 
     the same manner and to the same extent as technical 
     assistance is provided to small business concerns pursuant to 
     section 7(j); and
       ``(2) to provide pre-authorization to such concerns for the 
     purpose of receiving financial assistance under section 7(a).
       ``(e) Program Term.--The Administration shall carry out the 
     program in each of fiscal years 1995, 1996, and 1997.
       ``(f) Report to Congress.--On or before December 31, 1996, 
     the Administration shall transmit to Congress a report 
     containing an analysis of the results of the program, 
     together with recommendations for appropriate legislative and 
     administrative actions.
       ``(g) Definitions.--For the purposes of this section, the 
     following definitions apply:
       ``(1) Program.--The term `program' means the program 
     established pursuant to subsection (a).
       ``(2) Very small business concern.--The term `very small 
     business concern' means a small business concern that--
       ``(A) has 10 employees or less; or
       ``(B) has average annual receipts that total $1,000,000 or 
     less.''.
                    TITLE IV--MANAGEMENT ASSISTANCE

     SEC. 401. SUNSET ON COSPONSORED TRAINING.

       (a) The authority of the Small Business Administration to 
     cosponsor training as authorized by section 5(a) of the Small 
     Business Computer Security and Education Act of 1984 (15 
     U.S.C. 633 note) is hereby repealed September 30, 1997.
       (b) Section 7(b) of the Small Business Computer Security 
     and Education Act of 1984 (15 U.S.C. 633 note) is amended by 
     striking the second sentence.

     SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.

       Section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) is amended to read as follows:
       ``(4) The Administration shall require as a condition of 
     any grant (or amendment or modification thereof) made to an 
     applicant under this section, that a matching amount 
     (excluding any fees collected from recipients of such 
     assistance) equal to the amount of such grant be provided 
     from sources other than the Federal Government, to be 
     comprised of not less than 50 per centum cash and not more 
     than 50 per centum of indirect costs and in-kind 
     contributions: Provided, That this matching amount shall not 
     include any indirect costs or in-kind contributions derived 
     from any Federal program: Provided further, That no recipient 
     of funds under this section shall receive a grant which would 
     exceed its pro rata share of a national program based upon 
     the population to be served by the Small Business Development 
     Center as compared to the total population in the United 
     States, plus $125,000, or $200,000, whichever is greater, per 
     year. The amount of the national program shall be--
       ``(A) $70,000,000 through September 30, 1995;
       ``(B) $77,500,000 from October 1, 1995 through September 
     30, 1996; and
       ``(C) $85,000,000 beginning October 1, 1996.

     The amount of eligibility of each Small Business Development 
     Center shall be based upon the amount of the national program 
     in effect as of the date for commencement of performance of 
     the Center's grant.''.

     SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT 
                   CENTERS.

       (a) Section 21(a)(5) of the Small Business Act (15 U.S.C. 
     648(a)(5)) is amended to read as follows:
       ``(5) A Small Business Development Center may enter a 
     contract with a Federal department or agency to provide 
     specific assistance to small business concerns if the 
     contract is approved in advance by the Deputy Associate 
     Administrator of the Small Business Development Center 
     program. Approval shall be based upon a determination that 
     the contract will provide assistance to small business 
     concerns and that its performance will not hinder the Center 
     in carrying out the terms of its grant from the 
     Administration. The amount of any such contract shall not be 
     subject to the matching funds requirements of paragraph (4) 
     nor shall the amount of eligibility under such paragraph: 
     Provided, That notwithstanding any other provision of law, 
     such contracts for assistance to small business concerns 
     shall not be counted toward any Federal department or 
     agency's small business, women-owned business, or socially 
     and economically disadvantaged business contracting goal as 
     established by section 15(g) of the Small Business Act (15 
     U.S.C. 644(g)).''.
       (b) Section 21(a)(6) of the Small Business Act (15 U.S.C. 
     648(a)(6)) is amended by striking ``paragraphs (4) and (5)'' 
     and by inserting in lieu thereof ``paragraph (4)''.

     SEC. 404. CENTRAL EUROPEAN SMALL BUSINESS DEVELOPMENT.

       Section 25(i) of the Small Business Act (15 U.S.C. 652(i)) 
     is amended by striking ``and $2,000,000 for each of fiscal 
     years 1993 and 1994'' and by inserting in lieu thereof ``, 
     $2,000,000 for each of fiscal years 1993 and 1994, and 
     $1,000,000 for fiscal year 1995''.

     SEC. 405. MOBILE RESOURCE CENTER PILOT PROGRAM.

       (a) Establishment.--The Administrator of the Small Business 
     Administration may establish and carry out in each of fiscal 
     years 1995, 1996, and 1997 a mobile resource pilot program 
     (in this section referred to as the ``program'' in accordance 
     with the requirements of this section.
       (b) Mobile Resource Center Vehicles.--Under the program, 
     the Administration may use mobile resource center vehicles to 
     provide technical assistance, information, and other services 
     available from the Small Business Administration to 
     traditionally underserved populations. Two of such vehicles 
     should be utilized in rural areas and 2 of such vehicles 
     should be utilized in urban areas.
       (c) Report to Congress.--If the Administrator conducts the 
     program authorized in this section, not later than December 
     31, 1996, he shall transmit to Congress a report containing 
     the results of such program, together with recommendations 
     for appropriate legislative and administrative actions.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal year 1995 $900,000 to carry out 
     this section. Of such sums--
       (1) $800,000 may be made available for the purchase or 
     lease of mobile resource center vehicles; and
       (2) $100,000 may be made available for studies, startup 
     expenses, and other administrative expenses.

     Such sums shall remain available until expended.
        TITLE V--RELIEF FROM FFB DEBENTURE PREPAYMENT PENALTIES

     SEC. 501. CITATION.

       This title may be cited as the ``Small Business Prepayment 
     Penalty Relief Act of 1994.''.

     SEC. 502. MODIFICATION OF DEVELOPMENT COMPANY DEBENTURE 
                   INTEREST RATES.

       (a) In General.--Upon the request of the issuer and the 
     concurrence of the borrower, the Small Business 
     Administration is authorized to transfer to the Federal 
     Financing Bank such sums as may be necessary to carry out the 
     provisions of this section in order to reduce the interest 
     rate on a debenture issued by a certified development 
     company. The reduction shall be effective January 2, 1995 and 
     shall apply for the remainder of the term of the debenture.
       (b) Interest Rate Modification.--Upon receipt of such 
     payment, the Federal Financing Bank shall modify the interest 
     rate of each debenture for which the payment is made. No 
     other change shall be made in the terms and conditions of the 
     debenture, and the modification in the interest rate shall 
     not be construed as a new direct loan or a new loan 
     guarantee.
       (c) Definitions.--For the purposes of this section--
       (1) the term ``issuer'' means the issuer of a debenture 
     pursuant to section 503 of the Small Business Investment Act 
     of 1958 which has been purchased by the Federal Financing 
     Bank if the debenture is outstanding on the date of enactment 
     of this Act, and neither the loan that secures the debenture 
     nor the debenture is in default on such date; and
       (2) the term ``borrower'' means the small business concern 
     whose loan secures a debenture issued pursuant to such 
     section.
       (d) Other Rights.--A modification of the interest rate on a 
     debenture as authorized in this section shall not affect any 
     rights or options of the issuer or borrower which are 
     otherwise authorized by contract or by law.
       (e) Refinancing.--Debentures authorized by sections 504 and 
     505 of the Small Business Investment Act of 1958 may be used 
     to refinance debentures issued under section 503 of such Act 
     if the amount of the new financing is limited to such amounts 
     as are needed to repay the existing debenture, including any 
     prepayment penalty imposed by the Federal Financing Bank. Any 
     such refinancing shall be subject to all of the other 
     provisions of sections 504 and 505 of such Act and the rules 
     and regulations of the Administration promulgated thereunder, 
     including, but not limited to, rules and regulations 
     governing payment of authorized expenses and commissions, 
     fees and discounts to brokers and dealers in trust 
     certificates issued pursuant to section 505: Provided, 
     however, That no applicant for refinancing under section 504 
     of this Act need demonstrate that the requisite number of 
     jobs will be created or preserved with the proceeds of such 
     refinancing: Provided further, That a development company 
     which provides refinancing under this subsection shall be 
     limited to a loan processing fee not to exceed one-half of 
     one percent to cover the cost of packaging, processing and 
     other nonlegal staff functions.

     SEC. 503. MODIFICATION OF SMALL BUSINESS INVESTMENT COMPANY 
                   DEBENTURE INTEREST RATES.

       (a) In General.--Upon the request of the issuer, the Small 
     Business Administration is authorized to transfer to the 
     Federal Financing Bank such sums as may be necessary to carry 
     out the provisions of this section in order to reduce the 
     interest rate on a debenture issued by a Small Business 
     Investment Company under the provisions of title III of the 
     Small Business Investment Act of 1958. The reduction shall be 
     effective January 2, 1995 and shall apply for the remainder 
     of the term of the debenture.
       (b) Interest Rate Modification.--Upon receipt of such 
     payment, the Federal Financing Bank shall modify the interest 
     rate of each debenture for which the payment is made. No 
     other change shall be made in the terms and conditions of the 
     debenture, and the modification in the interest rate shall 
     not be construed as a new direct loan or a new loan 
     guarantee.
       (c) Definitions.--For the purposes of this section, the 
     term ``issuer'' means the issuer of a debenture pursuant to 
     section 303 of the Small Business Investment Act of 1958 
     which has been purchased by the Federal Financing Bank if the 
     debenture is outstanding on the date of enactment of this 
     Act, and is not in default on such date.
       (d) Other Rights.--A modification of the interest rate on a 
     debenture as authorized in this section shall not affect any 
     rights or options of the issuer which are otherwise 
     authorized by contract or by law.

     SEC. 504. MODIFICATION OF SPECIALIZED SMALL BUSINESS 
                   INVESTMENT COMPANY DEBENTURE INTEREST RATES.

       (a) Interest Rate Modification.--Upon the request of the 
     issuer, the Small Business Administration is authorized to 
     modify the interest rate on a debenture issued by a Small 
     Business Investment Company licensed under the provisions of 
     section 301(d) of the Small Business Investment Act of 1958 
     and which is held by the Administration. No debenture which 
     has been sold to a third party shall be eligible for 
     modification under this section. The reduction shall be 
     effective January 2, 1995 and shall apply for the remainder 
     of the term of the debenture. No other change shall be made 
     in the terms and conditions of the debenture, and the 
     modification in the interest rate shall not be construed as a 
     new direct loan or a new loan guarantee.
       (b) Definitions.--For the purposes of this section, the 
     term ``issuer'' means a Specialized Small Business Investment 
     Company licensed under the provisions of section 301(d) of 
     the Small Business Investment Act of 1958 which has issued a 
     debenture which has been funded by the Small Business 
     Administration, providing the debenture is outstanding on the 
     date of enactment of this Act and is not in default on such 
     date.
       (c) Other Rights.--A modification of the interest rate on a 
     debenture as authorized in this section shall not affect any 
     rights or options of the issuer which are otherwise 
     authorized by contract or by law.

     SEC. 505. INTEREST RATE REDUCTIONS.

       (a) In General.--Upon enactment of an Appropriations Act 
     providing funds to carry out the provisions of this Act and 
     limited to amounts specifically provided in advance in 
     Appropriations Acts, the Small Business Administration shall 
     evaluate the outstanding portfolio of debentures which are 
     eligible for interest rate relief under this Act. The 
     Administration shall apply the funds appropriated to carry 
     out this Act in order to reduce the highest interest rate on 
     all eligible debentures to a uniform rate.
       (b) Authorization.--There are authorized to be appropriated 
     $30 million to carry out the provisions of this Act in fiscal 
     year 1995.
            TITLE VI--DEVELOPMENT OF WOMEN-OWNED BUSINESSES

     SEC. 601. STATUS OF COUNCIL.

       Section 401 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is redesignated as section 405 of such 
     Act and, as redesignated, is amended--
       (1) in the heading by inserting ``OF THE COUNCIL'' after 
     ``ESTABLISHMENT''; and
       (2) by striking the period at the end and inserting the 
     following: ``which shall serve as an independent advisory 
     council to the Interagency Committee on Women's Business 
     Enterprise, to the Administrator of the Small Business 
     Administration, and to the Congress of the United States. The 
     Council, in order to carry out its function as an independent 
     advisory council to the Congress, is authorized and directed 
     to report independently of the Interagency Committee directly 
     to the Congress at such times and on such matters as it, in 
     its discretion, deems appropriate.''.

     SEC. 602. DUTIES OF NATIONAL WOMEN'S BUSINESS COUNCIL.

       Section 402 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is redesignated as section 406 of such 
     Act and, as redesignated, is amended to read as follows:

     ``SEC. 406. DUTIES OF THE COUNCIL.

       ``The Council shall meet at such times as it determines 
     necessary in order to advise and consult with the Interagency 
     Committee on Women's Business Enterprise on matters relating 
     to the activities, functions, and policies of such Committee 
     as provided in this title. The Council shall make annual 
     recommendations for consideration by the Committee. The 
     Council also shall provide reports and make such other 
     recommendations as it deems appropriate to the Committee, to 
     the Administrator of the Small Business Administration, and 
     to the Small Business Committee of the United States Senate 
     and to the Small Business Committee of the United States 
     House of Representatives.''.

     SEC. 603. MEMBERSHIP OF THE COUNCIL.

       Section 403 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is redesignated as section 407 of such 
     Act, and, as redesignated, is amended to read as follows:

     ``SEC. 407. MEMBERSHIP OF THE COUNCIL.

       ``(a) The Council shall be composed of 15 members who shall 
     be appointed by the Administrator of the Small Business 
     Administration and who shall serve at the Administrator's 
     discretion. In making the appointments, the Administrator 
     shall include racial, geographic and economic diversity, and 
     representation from diverse sectors of the economy, including 
     manufacturing, high technology, services and credit 
     institutions, and shall give priority to include 
     representation of major women's business organizations.
       ``(b) Only the owner, operator or employee of a woman-owned 
     business shall be eligible for appointment, and not more than 
     eight appointees shall be members of the same political 
     party. If any member of the Council subsequently becomes an 
     officer or employee of the Federal Government or of the 
     Congress, such individual may continue as a member of the 
     Council for not longer than the thirty-day period beginning 
     on the date such individual becomes such an officer or 
     employee.
       ``(c) The Council annually shall select one member to serve 
     as its Chairperson. The Chairperson of the Council, or her 
     designee, shall be the representative of the Council to all 
     meetings of the Interagency Committee on Women's Business 
     Enterprise.
       ``(d) The Council shall meet not less than four times per 
     year. Meetings shall be at the call of the Chairperson at 
     such times as she deems appropriate.
       ``(e) Members of the Council shall serve without pay for 
     such membership, except they shall be entitled to 
     reimbursement for travel, subsistence, and other necessary 
     expenses incurred by them in carrying out the functions of 
     the Council, in the same manner as persons serving on 
     advisory boards pursuant to section 8(b) of the Small 
     Business Act.''.

     SEC. 604. INTERAGENCY COMMITTEE.

       Title IV of the Women's Business Ownership Act of 1988 (15 
     U.S.C. 631 note) is amended by striking section 404 and by 
     inserting the following new sections prior to section 405 as 
     redesignated by section 601 of this Act:

     ``SEC. 401. ESTABLISHMENT OF THE COMMITTEE.

       ``There is established an Interagency Committee to be known 
     as the `Interagency Committee on Women's Business Enterprise' 
     (hereinafter in this title referred to as the Committee).

     ``SEC. 402. DUTIES OF THE COMMITTEE.

       ``The Committee shall--
       ``(1) promote, coordinate and monitor the plans, programs 
     and operations of the departments and agencies of the Federal 
     Government which may contribute to the establishment, 
     preservation and strengthening of women's business 
     enterprise. It may, as appropriate, develop comprehensive 
     interagency plans and specific program goals for women's 
     business enterprise with the cooperation of Federal 
     departments and agencies;
       ``(2) promote the better utilization of the activities and 
     resources of State and local governments, business and trade 
     associations, private industry, colleges and universities, 
     foundations, professional organizations, and volunteer and 
     women's business enterprise, and facilitate the coordination 
     of the efforts of these groups with those of Federal 
     departments and agencies;
       ``(3) consult with the Council to develop and promote new 
     initiatives designed to foster women's business enterprise, 
     and to develop policies, programs, and plans intended to 
     promote such development;
       ``(4) consider the Council's recommendations and public and 
     private sector studies of the problems of women 
     entrepreneurs, and promote further research into such 
     problems; and
       ``(5) design a comprehensive plan for a joint public-
     private sector effort to facilitate the development and 
     growth of women-owned businesses. The Committee should submit 
     the plan to the President for review within six months of the 
     effective date of this Act.

     ``SEC. 403. MEMBERSHIP OF THE COMMITTEE.

       ``(a) The Committee shall be composed of representatives of 
     the following departments and agencies: The Departments of 
     Agriculture, Commerce, Defense, Energy, Health and Human 
     Services, Education, Housing and Urban Development, Interior, 
     Justice, Labor, Transportation, Treasury, the Federal Trade 
     Commission, General Services Administration, National Science 
     Foundation, Office of Federal Procurement Policy, and the 
     Director of the Office of Women's Business Ownership of the 
     Small Business Administration, who shall serve as Vice 
     Chairperson of the Committee. The head of each such 
     department and agency shall designate a representative who 
     shall be a policy making official within the department or 
     agency.
       ``(b) The Committee shall have a Chairperson appointed by 
     the President, after consultation with the Administrator of 
     the Small Business Administration and the Chief Counsel for 
     Advocacy of the Small Business Administration. The 
     Chairperson shall be the head of a Federal department or 
     agency. If the Chairperson is the head of one of the 
     departments or agencies enumerated in subsection (a), he or 
     she shall also serve as the representative of such department 
     or agency.
       ``(c) The Committee shall meet not less than four times per 
     year. Meetings shall be at the call of the Chairperson at 
     such times as he or she deems appropriate.
       ``(d) The members of the Committee shall serve without 
     additional pay for such membership.
       ``(e) The Chairperson of the Committee may designate a 
     Director of the Committee, after consultation with the 
     Administrator of the Small Business Administration and the 
     Chief Counsel for Advocacy of the Small Business 
     Administration.
       ``(f) The Chief Counsel for Advocacy is authorized to 
     appoint to his staff under the provisions of section 204 of 
     Public Law 94-305 (15 U.S.C. 634(d)) the person so designated 
     under subsection (e). He or she is also authorized to provide 
     additional staff and administrative support for the 
     Committee.
       ``(g) The Director of the Office of Women's Business 
     Ownership of the Small Business Administration is authorized 
     to provide additional staff and administrative support for 
     the Committee.

     ``SEC. 404. REPORTS FROM THE COMMITTEE.

       ``The Committee shall transmit to the President and to the 
     Small Business Committee of the United States Senate and to 
     the Small Business Committee of the United States House of 
     Representatives a report no less than once in every twelve-
     month period. The first such report shall be submitted no 
     later than March 31, 1995. Such reports shall contain any 
     recommendations from the Council and any comments of the 
     Committee thereon, a detailed statement on the activities of 
     the Committee, the findings and conclusions of the Committee, 
     together with its recommendations for such legislation and 
     administrative actions as it considers appropriate to promote 
     the development of small business concerns owned and 
     controlled by women.''.

     SEC. 605. REPEALER.

       Sections 404 through 407 of the Women's Business Ownership 
     Act of 1988, as in effect on the day before the date of the 
     enactment of this Act, are repealed and the following new 
     section is added at the end of title IV of such Act:

     ``SEC. 408. DEFINITIONS.

       ``For the purposes of this Act, the term--
       ``(1) `woman-owned business' shall mean a small business 
     which is at least 51 percent owned by a woman or women who 
     also control and operate it;
       ``(2) `control' shall mean exercising the power to make 
     policy decisions;
       ``(3) `operate' shall mean being actively involved in the 
     day-to-day management; and
       ``(4) `women's business enterprise' shall mean a woman-
     owned business or businesses or the efforts of a woman or 
     women to establish, maintain, or develop such a business or 
     businesses.''.

     SEC. 606. EXTENSION OF AUTHORITY FOR DEMONSTRATION PROJECTS.

       Section 28 of the Small Business Act, as added by section 2 
     of Public Law 102-191, is redesignated as section 29 and, as 
     so redesignated, is amended by striking from subsection (g) 
     ``1995'' and by inserting ``1997''.

     SEC. 607. ESTABLISHMENT OF OFFICE OF WOMEN'S BUSINESS 
                   OWNERSHIP.

       Section 29 of the Small Business Act, as redesignated by 
     section 606 of this Act, is amended by adding the following 
     new subsection at the end:
       ``(h) There is established within the Administration an 
     Office of Women's Business Ownership, which shall be 
     responsible for the administration of the Administration's 
     programs for the development of women's business enterprises 
     as defined in section 408 of the Women's Business Ownership 
     Act of 1988. The Office shall be headed by a director who 
     shall be appointed by the Administrator.''.

     SEC. 608. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Title IV of the table of contents of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 631 note) is 
     amended to read as follows:

         ``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE

``Sec. 401. Establishment of the Committee.
``Sec. 402. Duties of the Committee.
``Sec. 403. Membership of the Committee.
``Sec. 404. Reports from the Committee.
``Sec. 405. Establishment of the Council.
``Sec. 406. Duties of the Council.
``Sec. 407. Membership of the Council.
``Sec. 408. Definitions.''.

       (b) The heading to title IV of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read 
     as follows:

       ``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISES''.

     SEC. 609. AUTHORIZATION.

       There is authorized to be appropriated $200,000 in each of 
     fiscal years 1995 through 1997 to carry out the provisions of 
     title IV of the Women's Business Ownership Act of 1988 (15 
     U.S.C. 631 note).
                  TITLE VII--MISCELLANEOUS AMENDMENTS

     SEC. 701. HANDICAPPED PARTICIPATION IN SMALL BUSINESS SET 
                   ASIDE CONTRACTS.

       Section 15(c) of the Small Business Act (15 U.S.C. 644(c)) 
     is amended--
       (1) by amending paragraph (2)(A) to read as follows:
       ``(2)(A) During each fiscal year, public or private 
     organizations for the handicapped shall be eligible to 
     participate in programs authorized under this section in an 
     aggregate amount not to exceed $50,000,000.''; and
       (2) by adding the following new paragraph at the end 
     thereof:
       ``(7) Any contract awarded to such an organization pursuant 
     to the provisions of this subsection may be extended for up 
     to two additional years.''.

     SEC. 702. SBA INTEREST PAYMENTS TO TREASURY.

       Section 4(c)(5)(B)(ii) of the Small Business Act (15 U.S.C. 
     633(c)(5)(B)(ii)) is amended to read as follows:
       ``(ii) The Administration shall pay into the miscellaneous 
     receipts of the Treasury following the close of each fiscal 
     year the actual interest it collects during that fiscal year 
     on all financings made under the authority of this Act.''.

     SEC. 703. IMPOSITION OF FEES.

       Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) 
     is amended--
       (1) in paragraph (10) by striking ``and'' at the end;
       (2) in paragraph (11) by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding the following new paragraphs at the end:
       ``(12) impose, retain and use only those fees which are 
     specifically authorized by law or which are in effect on 
     September 30, 1994, and in the amounts and at the rates in 
     effect on such date. The administrator is authorized to 
     impose, retain and utilize, subject to approval in 
     appropriations Acts, the following additional fees--
       ``(A) not to exceed $100 for each loan servicing action 
     requested after disbursement of the loan, including 
     substitution of collateral, loan assumptions, release or 
     substitution of guarantors, reamortizations or similar 
     actions;
       ``(B) to recover the direct, incremental cost involved in 
     the production and dissemination of compilations of 
     information produced by the Administration under the 
     authority of the Small Business Act and the Small Business 
     Investment Act of 1958; and
       ``(13) to collect, retain and utilize, subject to approval 
     in appropriations Acts, any amounts collected by fiscal 
     transfer agents and not used by such agent as payment of the 
     cost of loan pooling or debenture servicing operations: 
     Provided, That any monies so collected shall be utilized 
     solely to facilitate the administration of the program which 
     generated the excess monies.''.

     SEC. 704. SBIR VENDORS.

       Section 9(q)(2) of the Small Business Act (15 U.S.C. 
     638(q)(2)) is amended to read as follows:
       ``(2) Vendor selection.--Each agency may select a vendor to 
     assist small business concerns to meet the goals listed in 
     paragraph (1). Such selection shall be competitive using 
     merit-based criteria, for a term not to exceed 3 years.''.

     SEC. 705. MANUFACTURING CONTRACTS.

       (a) Establishment of Pilot Program.--Section 15 of the 
     Small Business Act (15 U.S.C. 644) is amended by adding at 
     the end the following:
       ``(p) Manufacturing Modernization Pilot Program.--
       ``(1) Establishment.--The Administrator may establish and 
     carry out a manufacturing modernization pilot program 
     (hereinafter in this section referred to as the `program') 
     for the purpose of promoting the award of Federal procurement 
     contracts to small business concerns that participate in 
     manufacturing application and education centers that are 
     established or certified pursuant to paragraph (2).
       ``(2) Manufacturing application and education centers.--The 
     Administrator may establish manufacturing application and 
     education centers which will provide training to small 
     business concerns on new and innovative manufacturing 
     practices in a shared-use production environment and which 
     will assist such concerns in carrying out Federal procurement 
     contracts for the manufacture of components and subsystems. 
     The Administrator may also certify existing manufacturing 
     application and education centers for participation in the 
     program.
       ``(3) Use of private centers as examples.--In establishing 
     any manufacturing application and education centers pursuant 
     to paragraph (2), the Administrator may use as examples 
     manufacturing application and education centers in the 
     private sector that provide the following services: 
     technology demonstration, technology education, technology 
     application support, technology advancement support, and 
     technology awareness.
       ``(4) Identification of contracts.--The Administrator and 
     the head of a contracting agency may identify for additional 
     small business set-asides pursuant to subsection (a) any 
     procurement, and in particular any procurement which is being 
     foreign-sourced or is considered critical, which is 
     susceptible to performance by a small business concern if the 
     concern is assisted by a manufacturing application and 
     education center under the program. Any such procurement 
     shall be subject to the requirements of subsection (a), 
     including requirements relating to any failure of the 
     Administrator and the head of the contracting agency to agree 
     on procurement methods.
       ``(5) Nonapplicability of performance requirement.--The 
     requirement of subsection (o)(1)(B) shall not apply with 
     respect to any contract carried out by a small business 
     concern under the program with the assistance of a 
     manufacturing application and education center.
       ``(6) Regulations.--Not later than 6 months after the date 
     of the enactment of this subsection, the Administrator shall 
     issue regulations to carry out this subsection if he 
     determines it appropriate to carry out the program authorized 
     by this subsection.
       ``(7) Reports.--
       ``(A) Progress report.--Not later than 3 months after the 
     last day of the fiscal year in which final regulations are 
     issued pursuant to paragraph (6), the Administrator shall 
     transmit to the Committees on Small Business of the House of 
     Representatives and the Senate a report on the progress of 
     the program.
       ``(B) Final report.--If the Administrator establishes the 
     program authorized herein, not later than March 31, 1999, he 
     shall transmit to the Committees on Small Business of the 
     House of Representatives and the Senate a report on the 
     success of the program in--
       ``(i) enabling deployment of technology to small business 
     concerns participating in the program, and
       ``(ii) assisting manufacturing application and education 
     centers in achieving self-sufficiency,

     together with recommendations concerning continuation, 
     modification, or discontinuance of the program.
       ``(8) Program term.--The Administrator may carry out the 
     program during the period beginning on the date of issuance 
     of final regulations under paragraph (5) and ending on 
     September 30, 1999.
       ``(9) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this subsection.''.

     SEC. 706. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY 
                   WITHIN THE UNITED STATES.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by inserting after section 30, as added by section 304 of 
     this Act, the following:

     ``SEC. 31. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT 
                   LAWFULLY WITHIN THE UNITED STATES.

       ``None of the funds made available pursuant to this Act may 
     be used to provide any direct benefit or assistance to any 
     individual in the United States when it is made known to the 
     Administrator of the Small Business Administration or the 
     official to which the funds are made available that the 
     individual is not lawfully within the United States.''.

     SEC. 707. OFFICE OF ADVOCACY EMPLOYEES.

       Section 204 of Public Law 94-305 (15 U.S.C. 634d) is 
     amended as follows--
       (1) by striking ``after consultation with and subject to 
     the approval of the Administrator,''; and
       (2) in paragraph (1) by striking ``GS-15 of the General 
     Schedule'' and all that follows and inserting ``GS-15 of the 
     General Schedule: Provided, however, That not more than 14 
     staff personnel at any one time may be employed and 
     compensated at a rate in excess of GS-15, step 10, of the 
     General Schedule;''. 

     SEC. 708. ADVOCACY STUDY OF PAPERWORK AND TAX IMPACT.

       The Chief Counsel for Advocacy of the Small Business 
     Administration shall conduct a study of the impact of all 
     Federal regulatory paperwork and tax requirements upon small 
     business and report its findings to the Congress within 1 
     year of the date of the enactment of this Act.

  The CHAIRMAN. No other amendment to the bill is in order except the 
amendments printed in part 2 of the report. Each amendment may be 
offered only in the order printed in the report, may be offered only by 
a Member designated in the report, is considered as read, shall be 
debatable under the terms specified in report, shall not be subject to 
amendment except as specified in the report, and shall not be subject 
to a demand for division of the question.
  It is now in order to consider amendment No. 1 printed in part 2 of 
House Report 103-627.


                    amendment offered by mr. lafalce

  Mr. LaFALCE. Mr. Chairman, I offer amendment No. 1 made in order 
under the rule.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment offered by Mr. LaFalace:
       Page 2, line 19, strike ``$12,320,000,000'' and insert 
     ``$11,535,000,000''.
       Page 3, strike lines 6 through 17 and insert the following:
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $23,000,000 in purchases of preferred securities;
       ``(B) $244,000,000 in guarantees of debentures, of which 
     $44,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $400,000,000 in guarantees of participating 
     securities.
       Page 5, line 3, strike ``$14,610,000,000'' and insert 
     ``$13,455,000,000''.
       Page 5, strike lines 13 through 24 and insert the 
     following:
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $24,000,000 in purchases of preferred securities;
       ``(B) $256,000,000 in guarantees of debentures, of which 
     $46,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $650,000,000 in guarantees of participating 
     securities.
       Page 7, line 10, strike ``$18,875,000,000'' and insert 
     ``$17,195,000,000''.
       Page 7, strike line 20 and all that follows through line 7 
     on page 8 and insert the following:
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $25,000,000 in purchases of preferred securities;
       ``(B) $268,000,000 in guarantees of debentures, of which 
     $48,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $900,000,000 in guarantees of participating 
     securities.

  The CHAIRMAN. Pursuant to the rule, the gentleman from New York [Mr. 
LaFalce] will be recognized for 10 minutes, and a Member opposed will 
be recognized for 10 minutes.
  The Chair recognizes the gentleman from New York [Mr. LaFalce].
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I am offering this amendment on behalf of myself and my 
ranking minority member, Mrs. Meyers of Kansas. The amendment is 
directed toward accommodating concerns expressed by the gentlelady from 
Kansas and others about proposed increases in program levels for the 
Small Business Investment Company and Specialized Small Business 
Investment Company Program.
  Clearly these programs have experienced problems in the past, but it 
is my belief that legislation enacted in 1992 provided the necessary 
remedy to most of the problems. And I would point out that this 1992 
legislation was fully supported on a bipartisan basis by the House and 
Senate, as well as by the Bush administration.
  Nonetheless, to accommodate these concerns, we have requested a 
detailed report from the Small Business Administration. In the interim, 
we are holding the program to amounts now authorized by law except on a 
new Participating Securities Program which in no way is part of any 
problem, either past or present.
  In addition, the amendment makes technical changes to conform the 
aggregate amount of program levels to those agreed to.
  Mr. Chairman, I appreciate Mrs. Meyers' willingness to address this 
issue and I assure her that we will work together to carry out 
appropriate oversight of the Small Business Investment Company Program 
and all of the programs administered by the SBA.
  The CHAIRMAN. Does any Member seek time in opposition to the 
amendment?
  Mrs. MEYERS of Kansas. Mr. Chairman, I would like to speak in support 
of the amendment.
  The CHAIRMAN. Without objection, the gentlewoman from Kansas [Mrs. 
Meyers] is recognized for 10 minutes to speak in support of the 
amendment.
  There was no objection.
  Mrs. MEYERS of Kansas. Mr. Chairman, I yield myself such time as I 
may consume.
  Mr. Chairman, this amendment, offered by Chairman LaFalce and me, 
represents a compromise reached on authorization levels for SBA venture 
capital programs. The Small Business Investment Company [SBIC] and 
specialized SBIC programs pair private capital with SBA financing to 
provide equity and long-term financing for small businesses. SBA 
financing is loaned to these entities through the purchase of preferred 
stock, the issuance of guaranteed debentures, or participating 
securities.
  Unfortunately, the SSBIC and SBIC programs, with the exception of the 
Participating Securities Program which is just getting up and running, 
have been experiencing problems. According to the SBA, as many as 194 
SBIC's and SSBIC's are in trouble, with as much as $500 million to 
risk. SBA Administrator Erskine Bowles has been working hard to restore 
fiscal soundness to the programs. He has brought in Mr. Robert 
Stillman, a respected expert in the venture capital industry, to run 
the SBIC program. Expectations are high that the problems will be 
resolved and the program will help fill the void of venture capital for 
small firms.
  However, I believe we should see the results of these efforts before 
authorizing higher levels for these programs. In 1992, when our 
committee created, and Congress adopted, legislation revamping the 
SSBIC and SBIC programs, we authorized these programs through 
fiscal year 1997. H.R. 4801 proposed increases for these programs, 
above and beyond the amounts in current law for fiscal years 1995, 
1996, and 1997.

  At the Small Business Committee's markup of H.R. 4801, I expressed my 
strong reservations about the authorization levels for the SBIC/SSBIC 
programs in the bill. I offered an amendment to severely cut program 
levels, bringing them in line with the appropriated levels, which was 
defeated. This amendment was defeated, but the chairman agreed to work 
with me in reaching a compromise on authorization levels we could both 
accept.
  This amendment represents that compromise. I would like to thank 
Chairman LaFalce for his efforts to offer an amendment reducing SBIC 
and SSBIC authorization levels that I could accept. The levels provided 
in the LaFalce-Meyers amendment takes the authorization levels for all 
SBIC and SSBIC programs back to current law, with the exception of the 
participating securities program in fiscal year 1996 and fiscal year 
1997. These years were increased by $100 million and $200 million, 
respectively--a sizable increase, to be sure, but much less than the 
administration requested.
  I believe this is a fair, reasonable amendment, reflecting the desire 
to get the programs back on track, without killing vital venture 
capital programs for small business. I would like to state for the 
record that I will be watching these programs very carefully in the 
coming months, to make sure that they are, indeed, getting back on 
track. H.R. 4801 requires a comprehensive study of the SBIC program be 
presented to the committee by April 1995, and an advisory council is 
established to study and make recommendations on the SSBIC program. I 
will await these studies and recommendations with interest, and am 
taking my oversight responsibilities for these programs very seriously.
  Again, I thank Chairman LaFalce for his cooperation in this matter, I 
strongly urge the amendment's adoption.
  Mr. Chairman, I include statics on SBIC's and SSBIC's as follows:

               MEYERS/LaFALCE AMENDMENTS ON SBIC/SSBIC\1\               
                        [In millions of dollars]                        
------------------------------------------------------------------------
                                                        H.R.    LaFalce/
                      Program                           4801     Meyers 
------------------------------------------------------------------------
SSBIC preferred stock:                                                  
  Fiscal year 1995..................................        33        23
  Fiscal year 1996..................................        39        24
  Fiscal year 1997..................................        45        25
SSBIC guaranteed debentures:                                            
  Fiscal year 1995..................................        55        44
  Fiscal year 1996..................................        55        46
  Fiscal year 1997..................................        55        48
SBIC guaranteed debentures:                                             
  Fiscal year 1995..................................       230       200
  Fiscal year 1996..................................       350       210
  Fiscal year 1997..................................       500       220
SBIC participating security:                                            
  Fiscal year 1995..................................       500       400
  Fiscal year 1996..................................       750       650
  Fiscal year 1997..................................     1,125       900
------------------------------------------------------------------------
\1\Amendment reduces the authorized amounts for the SSBIC preferred     
  stock (direct loan program); the SSBIC and SBIC guaranteed debenture  
  program; and the SBIC participating securities program.               

  Mr. Chairman, I yield back the balance of my time.
  Mr. LaFALCE. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from New York [Mr. LaFalce].
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 2 printed 
in part 2 of House Report 103-627.


                  amendment offered by mr. knollenberg

  Mr. KNOLLENBERG. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment offered by Mr. Knollenberg:
       Page 4, line 21, strike ``$208,000,000'' and insert 
     ``$198,000,000''.
       Page 4, line 24, strike ``$195,000,000'' and insert 
     ``$185,000,000''.
       Page 5, line 3, increase the pending figure by $10,000,000.
       Page 5, line 11, strike ``$20,000,000'' and insert 
     ``$30,000,000''.
       Page 7, line 3, strike ``$284,000,000'' and insert 
     ``$264,000,000''.
       Page 7, line 6, strike ``$270,000,000'' and insert 
     ``$250,000,000''.
       Page 7, line 10, increase the pending figure by 
     $20,000,000.
       Page 7, line 18, strike ``$20,000,000'' and insert 
     ``$40,000,000''.

  The CHAIRMAN. Pursuant to the rule, the gentleman from Michigan [Mr. 
Knollenberg] will be recognized for 5 minutes, and a Member opposed 
will be recognized for 5 minutes.
  The Chair recognizes the gentleman from Michigan [Mr. Knollenberg].
  Mr. KNOLLENBERG. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I rise today to offer an amendment to H.R. 4801, a bill 
to reauthorize the Small Business Administration.
  This is a very straightforward amendment concerning the SBA's 
Microloan Program.
  The Clinton administration has expressed its desire to move from 
direct lending in the SBA, toward loans made on a guaranteed basis. 
This shift not only allows for the leveraging of funds in order to 
stretch our scarce dollars, but it also protects the taxpayer from the 
cost of defaulted loans.
  Chairman LaFalce and others have recognized the administration's 
proposal through the creation and continuation of a well-crafted 
Guaranteed Microloan Pilot Program, for which the chairman has 
authorized $20 million per year over the next 3 years.
  My amendment seeks to build on these foundations laid by Chairman 
LaFalce by expanding the authorized levels by $10 million in 1996, and 
by $20 million in 1997. We will accomplish this by transferring funds 
from the Direct Microloan Program.
  Not only will my amendment expand the Pilot Program, but there will 
also be ample funds remaining in the Direct Microloan Program to 
adequately serve small business needs.
  For example, in 1996, $10 million is transferred to the Pilot Program 
from the $195 million authorized in the bill for direct microloans. In 
1997, $20 million is transferred from the $270 million authorized in 
the bill for direct microloans.
  As you can see, my amendment will not threaten access to capital for 
small businesses which are unable to find banks willing to take the 
time to work with the SBA and the loan applicant to make a guaranteed 
loan of such a small size, as microloans, by definition, are.
  The Guaranteed Microloan Pilot Program, as it stands, is a good one. 
My amendment seeks to expand on the chairman's hand work by giving it 
the financing that it will need to ensure that it becomes a successful 
and effective program.
  I realize that with many small businesses, the last person to 
actually get paid each month is the small business owner himself. As a 
former small businessman myself, I can remember times when I had to 
make payroll out of my own pocket.
  For large corporations, and even for some individuals, loans of this 
size are simply small change. But for many very small businesses, these 
microloans of under $25,000 may be the difference between success and 
failure.
  The SBA Microloan Program is an important source of capital for all 
types of very small businesses throughout our nation. These are the 
true mom-and-pop businesses, often run out of peoples homes primarily 
in our Nation's urban and rural areas, perhaps the very areas most in 
need of business development. These businesses are important to the 
individual owners, to their local areas, and to our economy as a whole.
  This amendment will be good for small business by providing more bang 
for each appropriated buck. It will be good for the American taxpayer 
by providing some protection from the inevitable cost associated with 
making loans.
  Mr. Chairman, I urge support for my amendment.

                              {time}  1100

  The CHAIRMAN. Does any Member seek recognition in opposition to the 
amendment?
  Mr. LaFALCE. Mr. Chairman, I do not oppose the amendment, but I would 
intend to claim the time.
  The CHAIRMAN. The gentleman from New York [Mr. LaFalce] will be 
recognized for 5 minutes.
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Speaker, I do not oppose the amendment. In fact, I am very 
willing to accept the amendment.
  We do not believe that to transfer additional money from direct 
loans, loan guarantees, is necessary. The amendment simply increases 
the amount of guaranteed money available for a trial program which has 
not been tested.
  The gentleman had offered a much more extensive amendment in 
committee and has now reduced the amount of the transfer very 
substantially. I appreciate the conciliatory approach he has taken, the 
changes he has made, and in the spirit of cooperation, accept the 
amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. KNOLLENBERG. Mr.Speaker, I yield 1 minute to the gentlewoman from 
Kansas [Mrs. Meyers], the ranking minority member.
  Mrs. MEYERS of Kansas. Mr. Chairman, I rise in strong support of the 
amendment offered by Mr. Knollenberg. The Microloan Program is an 
excellent program aimed at aiding the smallest of small businesses--
mostly startups--in urban and rural areas. The administration had 
proposed moving the entire Microloan Program from a direct to a 
guaranteed basis. H.R. 4801 initiates a pilot program to start a 
gradual move in that direction. The Knollenberg amendment simply 
increases the levels of pilot program in fiscal years 1996 and 1997, 
decreasing the Microloan Direct Program by identical amounts in those 
same years.
  The Knollenberg amendment just increases our commitment to making 
microloans on a guaranteed basis, and gives it every opportunity for 
success. I hope that these efforts will be successful, allowing us to 
assist even more small businesses with limited funds.
  Mr. KNOLLENBERG. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I want to again thank the chairman, the gentleman from 
New York [Mr. LaFalce], for his work and his spirit of cooperation, and 
the ranking member, the gentlewoman from Kansas [Mrs. Meyers].
  Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Michigan [Mr. Knollenberg].
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 3 printed 
in part 2 of House Report 103-627.


                   Amendment Offered by Mr. Bilirakis

  Mr. BILIRAKIS. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment offered by Mr. Bilirakis: Page 54, after line 21, 
     insert the following:

     SEC. 709. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT 
                   OBLIGATIONS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by inserting after section 31, as added by section 706 of 
     this Act, the following:

     ``SEC. 32. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT 
                   OBLIGATIONS.

       ``Each applicant for financial assistance under this Act, 
     including applicants for direct loans and loan guarantees, 
     shall certify, as a condition for receiving such assistance, 
     that the applicant is not in violation of the terms of any 
     administrative order, court order, or repayment agreement 
     entered into between the applicant and the custodial parent 
     or the State agency providing child support enforcement 
     services which requires the applicant to pay child support, 
     as such term is defined by section 462(b) of the Social 
     Security Act.''.

  The CHAIRMAN. The gentleman from Florida [Mr. Bilirakis] will be 
recognized for 5 minutes, and a Member opposed will be recognized for 5 
minutes.
  The Chair recognizes the gentleman from Florida [Mr. Bilirakis].
  Mr. BILIRAKIS. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I want to first extend my thanks to the distinguished 
chairman of the Small Business Committee, Mr. LaFalce, and the 
distinguished ranking member, Mrs. Meyers, as well as their staffs, for 
their willingness to work with me on this amendment. I know they share 
my desire to improve the enforcement of child support, and I appreciate 
their efforts.
  I would further extend my appreciation and commendations to my L.A., 
Todd Tuten. I said to him, ``Todd, find some way in which we might be 
able to address this very abysmal picture regarding child support in 
this country.'' He came upon this method, and worked with the staffs of 
the committee, and we were able to come up with this amendment.
  My amendment is not designed to address the fundamental flaws in our 
Nation's child support enforcement system. Rather, it is intended to 
send a clear message--that paying child support is a fundamental civic 
responsibility. Parents who neglect that obligation simply transfer the 
costs to the rest of society, and they should not be rewarded for such 
action.
  My staff and I have worked carefully to draft language which will 
achieve this policy objective without being excessively broad in scope. 
We want to ensure that the amendment will not exclude individuals who 
should rightfully receive assistance, and that it will not impose any 
hardship on the Small Business Administration.
  In that regard, the Small Business Administration has informed me 
that the amendment would not impose a significant administrative burden 
on the agency.
  Briefly, the amendment would require applicants for financial 
assistance to certify that they are not in violation of the terms of 
any administrative order, court order, or repayment agreement under 
which the applicant is required to pay child support.
  Applicants will only be required to sign an affirmative statement--
they will not be asked to present documentation from the court or 
administrative body. This requirement would be enforced through an 
existing provision of the Small Business Act, which establishes 
penalties for fraud in obtaining financial assistance.
  My amendment will prevent the use of taxpayers' dollars to assist 
those who refuse to satisfy their most basic parental obligation--
providing adequate support for their child. However, my primary intent 
is to encourage payment of child support. In that respect, the 
amendment can be likened to a ``carrot and stick'' approach.
  By denying assistance only to those individuals who are currently in 
violation of an order or repayment agreement, the amendment provides an 
incentive for noncustodial parents to pay their past-due child support. 
Once the terms of the order or repayment agreement are met, the 
individual is no longer precluded from applying for such assistance.
  Mr. Chairman, failure to pay child support is not merely being late 
or forgetful of one's obligations. It is a violation of a lawful court 
order. It may also be considered contempt of court. Thus, it is not 
unreasonable to require applicants for SBA assistance to comply with 
their legal duties.
  I believe we must also look to the end result of failure to pay 
support: A lack of financial assistance designed to ensure the health 
and well-being of children, who are, by definition, innocent victims of 
the delinquency.
  In conclusion, Mr. Chairman, my amendment is designed to send a 
simple message--that we as a society place a high value on the health 
and well-being of our children. I remain willing to work with my 
colleagues on any necessary refinements to the language of this 
proposal, and I urge Members to support this important amendment.
  Mr. Chairman, I reserve the balance of my time.
  The CHAIRMAN. The gentleman from New York [Mr. LaFalce] will be 
recognized for 5 minutes.
  Mr. LaFALCE. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, everyone wants fathers to assume financial 
responsibility for their children, and this includes compliance with 
court-ordered child support.
  The gentleman's amendment would preclude the SBA loan assistance to 
any applicant who was more than 1 month in arrears in these payments. 
This does sound good, but it could create problems. For example, a 
father remarries and establishes a second family. If the new family's 
home is damaged by disaster, do we want to deny them a loan to repair 
or replace it? Should the new wife and possible children be denied 
disaster loan assistance?
  There could be countless other examples. I could go on, but I will 
not.

                              {time}  1110

  The point is I do agree with the intent of the gentleman's amendment.
  Mr. Chairman, since the gentleman first brought the amendment to my 
attention, he has revised it to mitigate some of the harshness by 
removing the prohibition if the applicant enters into some type of a 
repayment agreement to eliminate the delinquency. I believe the 
language solves most of the problems. Therefore, I am willing to accept 
the amendment and hope that as other problems are pointed out we can 
further refine the amendment to solve those problems in conference.
  Therefore, Mr. Chairman, in that spirit I would accept the amendment.
  Mr. BILIRAKIS. Mr. Chairman, I appreciate the comments of the 
chairman. I believe, I say to the gentleman, I know that we have worked 
with his staff to try to get that worked out, and I think it has been 
satisfactorily worked out. If not, as I have already indicated, we are 
willing to work with the gentleman from New York [Mr. LaFalce] further 
on it.
  Mr. LaFALCE. Mr. Chairman, I yield such time as she may consume to 
the gentlewoman from Colorado [Mrs. Schoeder].
  Mrs. SCHROEDER. I thank the gentleman for yielding.
  I thank the gentleman from Florida [Mr. Bilirakis] for his amendment.
  I think this is a very important amendment. Many of us have been 
working hard to make sure the Federal Government is doing everything it 
can to make sure that parents do not run away from their kids. The most 
important decision anybody makes is to be a parent. These 
responsibilities should not be treated lightly. I think the taxpayers 
get tired of both giving people some money to get started in business 
and also pay for their first family that they wish to shed.
  So the gentleman is absolutely correct. I thank him for bringing this 
amendment up. I am delighted it has been accepted. I think we have to 
do everything we can to make sure it is enforced, and enforced 
rigorously. I think the compromise is the way to go, and that is that 
anyone who is in arrears gets no Federal money until they show a plan 
for how they are going to repay their arrears. I think that makes 
sense. That is a compromise, and that says you cannot just throw 
families away the way you throw bottles or the way you throw away 
trash. These are not trash, they are children. I thank the gentleman 
for his compassion and for bringing this up.
  Mr. Chairman, I thank the gentleman from New York [Mr. LaFalce] for 
working this all out.
  Mr. BILIRAKIS. Mr. Chairman, I thank the gentlewoman for her kind 
remarks and assistance in this regard.
  Mr. Chairman, I yield such time as she may consume to the gentlewoman 
from New Jersey [Mrs. Roukema].
  (Mrs. ROUKEMA asked and was given permission to revise and extend her 
remarks.)
  Mrs. ROUKEMA. Mr. Chairman, I rise in support of the Bilirakis 
amendment, and I want to commend the gentleman for his leadership and 
foresight on this issue.
  Mr. Chairman, simply put, the state of our child support enforcement 
system is a national shame, and a scandal of epidemic proportion. 
Despite years of efforts and reforms we have undertaken in the past, 
billions of dollars of child support still go unpaid every year.
  And make no mistake: this is not a victimless crime. The children who 
go without the support to which they are legally and morally entitled 
are the first victims. But ultimately, the American taxpayers are the 
victim as these children fall onto the welfare rolls.
  As we in Congress prepare to debate welfare reform, we should not 
lose sight of this simple fact: child support enforcement is welfare 
prevention. A tough and effective child support title must be a 
component of any effective reform legislation.
  The gentleman's amendment would prohibit the SBA from using taxpayer 
dollars for the deadbeats who do not live up to their moral and legal 
obligations. It requires SBA applicants to certify that they are not in 
violation of any existing child support order, and uses the existing 
fraud and abuse enforcement mechanisms already in place under SBA 
statute.
  In fact, this amendment mirrors and is consistent with a provision in 
comprehensive child support legislation I have introduced, as well as 
the Child Support Responsibility Act recently introduced by the Caucus 
on Women's Issues.
  Under that legislation, we would apply these commonsense prohibitions 
in Mr. Bilirakis' amendment to all Federal programs or guarantees. Our 
bill would once and for all prohibit the Federal Government from aiding 
and abetting those who refuse to pay child support, through a job, 
benefits, subsidies, or loan guarantee.
  Be it a federally guaranteed mortgage, a government-backed student 
loan, or a cash or benefits program like food stamps, our bill will 
definitively prohibit payment to those who fail to make their child 
support payments, unless they show they are in compliance with a plan 
to repay their legal and financial obligations.
  As we move toward adopting these reforms for all Federal programs, we 
should start here and now with the Bilirakis amendment, and the Small 
Business Administration.
  Mr. Chairman, let this be a first step. It has become crystal clear 
over the past several weeks that an omnibus welfare reform package is 
not going to be enacted this year. That's exactly why this Congress 
should move quickly to approve tough child support enforcement reforms 
now.
  The Speaker has indicated his support. The majority leader has 
indicated his support. The Republican leadership is on board. The 
chairman of the subcommittee has indicated his support. Let's get on 
with it.
  Do not make the children wait another year. Do not let the deadbeats 
escape their moral and legal obligation another day. Let us pass 
comprehensive child support reforms now.
  Support the Bilirakis amendment. The Bilirakis amendment paves the 
way for more comprehensive reforms.
  Mr. BILIRAKIS. Mr. Chairman, I am informed the gentlewoman from 
Kansas [Mrs. Meyers], the ranking member of the committee, would like 
to speak on this matter. I realize I have no further time. Possibly the 
gentleman from New York may have.
  Mr. LaFALCE. Mr. Chairman, I believe I have some remaining time, and 
I yield such time as she may consume to the distinguished ranking 
member, the gentlewoman from Kansas [Mrs. Meyers].
  The CHAIRMAN. The gentlewoman from Kansas [Mrs. Meyers] is recognized 
for up to 1\1/2\ minutes.
  Mrs. MEYERS of Kansas. Mr. Chairman, I thank the gentleman from 
Florida [Mr. Bilirakis] for offering the amendment, and I thank the 
gentleman from New York [Mr. LaFalce] for yielding this time.
  Mr. Chairman, I rise in support of this amendment. I appreciate the 
effort of the gentleman from Florida to make this amendment effective 
and yet not place an overwhelming burden on the Small Business 
Administration.
  I agree with the gentleman it is clear unpaid child support and 
single-parent families are creating a disastrous situation in our 
Nation, and I appreciate his efforts to remedy this appalling problem 
and support the amendment.
  Mr. LaFALCE. Mr. Chairman, I yield back the balance of my time.
  The CHAIRMAN. All time for debate on this amendment has expired.
  The question is on the amendment offered by the gentleman from 
Florida [Mr. Bilirakis].
  The amendment was agreed to.
  The CHAIRMAN. It is now in order to consider amendment No. 4. Does 
the sponsor of amendment No. 4 wish to proceed?
  If not, it is now in order to consider amendment No. 5. Does the 
sponsor of that amendment wish to proceed?
  If not, the question is on the committee amendment in the nature of a 
substitute, as modified, as amended.
  The committee amendment in the nature of a substitute, as modified, 
as amended, was agreed to.
  The CHAIRMAN. Under the rule, the committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Kleczka) having assumed the chair, Mr. Watt, Chairman of the Committee 
of the Whole House on the State of the Union, reported that that 
Committee, having had under consideration the bill (H.R. 4801) to amend 
the Small Business Act, and for other purposes, pursuant to House 
Resolution 494, reported the bill back to the House with an amendment 
adopted by the Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute, as modified, as amended?
  If not, the question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                 motion to recommit offered by mr. kim

  Mr. KIM. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentleman [Mr. Kim] opposed to the 
bill.
  Mr. KIM. Yes, I am, Mr. Speaker.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Kim moves to recommit the bill H.R. 4801 to the 
     Committee on Small Business with instructions to report the 
     same back to the House forthwith with the following 
     amendment:
       Page 37, after line 3, insert the following:
       (c) Additional Amounts.--Notwithstanding any other 
     provision of law, the Administration is authorized to 
     transfer, subject to subsequent appropriations, 
     appropriations made available to carry out this title the 
     unobligated balance of the following amounts appropriated by 
     title IV of the Department of State of Related Agencies 
     Appropriations Act, 1995:
       (1) $15,000,000 made available to the Administration under 
     the heading ``Salaries and Expenses'' to implement section 24 
     of the Small Business Act.
       (2) $23,750,000 made available to the Administration under 
     the heading ``Business Loans Program Account'' to carry out 
     the projects specified in the second sentence of the first 
     paragraph under such heading.
       Amounts transferred under this subsection shall be in 
     addition to amounts appropriated pursuant to subsection (b).

  Mr. KIM (during the reading). Mr. Speaker, I ask unanimous consent 
that the motion to recommit be considered as read and printed in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  Mr. LaFALCE. Mr. Speaker, I object. We do not have a copy of the 
motion to instruct, and I would like to have a copy and I would like to 
have it read.
  The Clerk continued the reading of the motion to recommit.

                              {time}  1120

  Mr. LaFALCE (during the reading). Mr. Speaker, I ask unanimous 
consent that the motion to recommit be considered as read and printed 
in the Record.
  The SPEAKER pro tempore (Mr. Kleczka). Is there objection to the 
request of the gentleman from New York?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from California [Mr. Kim] is 
recognized for 5 minutes in support of his motion to recommit.
  Mr. KIM. Mr. Speaker, today I am offering a motion to recommit H.R. 
4801, with instructions to include an amendment which would eliminate 
approximately $38 million of unauthorized appropriations--in other 
words, pork projects--and would require the SBA to use that money to 
help small businessowners escape the burden of onerous prepayment 
penalties that they face under the SBA's 503 Loan Program.
  The reason I am doing this is that I believe that we should be 
helping small businesses, not adding pork to help a small number of 
senior Members. If we do not pass my amendment, shame on us.
  The 503 Loan Program was designed to provide long-term fixed rate 
financing for small businesses to buy equipment, machinery, and 
buildings. Under this program, borrowers, small businessowners, who 
wished to pay off their loans early, were subject to a substantial 
prepayment penalty as high as 60 percent.
  My amendment will help small businesses by helping to reduce section 
503 loan prepayment penalties by simply transferring these $38 million 
pork projects into this 503 Program. Small businesses are trapped by 
these penalties because they are unable to refinance their loans or 
repay them early because of the outrageous rates and penalties imposed 
upon them under the 503 Program.
  It is clear that these small businesses need our help. Unfortunately, 
H.R. 4801, as currently written, only provides $30 million in funding 
under section 505 to help correct this problem, even though it would 
take $98 million to solve the problem entirely.
  Let me tell the Members this: I was deeply disappointed to find out 
that this bill shortchanged small businessowners in this way. So 
imagine my surprise when I examined that appropriations bill for the 
SBA and found $38 million in unauthorized pork barrel appropriations 
for the SBA.
  Mr. Speaker, there are approximately 3,500 small businesses that have 
outstanding 503 Loan Programs right now and are trapped because, as I 
mentioned earlier, they are unable to refinance or make a payment early 
because they cannot afford to pay such outrageously high prepayment 
penalties.
  We are telling small businesses that there just was not enough money 
to help them and then turning around and spending millions of dollars 
on frivolous ``goodies.''
  Mr. Speaker, my amendment would rectify this shameful situation. 
Finally, let me be clear on this: A yes vote on this motion is a vote 
for small businesses in our districts. A no vote on this motion is a 
vote for pork and against the interests of the small businessowners of 
this Nation. I urge my colleagues to vote ``yes.''
  The SPEAKER pro tempore. The gentleman from New York [Mr. LaFalce] is 
recognized for 5 minutes in opposition to the motion to recommit.
  Mr. LaFALCE. Mr. Speaker, I must rise in opposition to the motion to 
recommit for a number of reasons, but primarily because the gentleman 
from California would have us engage in a superfluous, meaningless act. 
What he would do via the authorization process is attempt to repeal an 
appropriations bill that has already passed both houses of Congress and 
has already been signed into law by the President of the United States, 
and because it otherwise would have been out of order, he makes this 
authorization repeal subject to the approval of the Appropriations 
Committee in a new appropriations bill that would then subsequently 
have to be passed by this House and then subsequently signed into law 
by the President.
  There comes a point in time when finality is required. The potential 
law of the land was discussed and debated a number of weeks ago. The 
voice of this body was heard. It is now the law of the land, and we 
should not engage in such superfluous activity.
  Mr. Speaker, I urge the defeat of the motion to recommit.
  Mr. Speaker, I now yield to the gentleman from Iowa [Mr. Smith].
  Mr. SMITH of Iowa. Mr. Speaker, I rise in opposition to the motion to 
recommit.
  This does not do a solitary thing that is not authorized anyway. It 
is totally superfluous. Congress can transfer funding without this 
provision if it wants to. This amendment is just garbage under the 
Small Business Act. The Small Business Act is a serious act in the 
permanent statutes of the United States. It is a 3-year act, and it is 
a 3-year authorization we are passing today. The Small Business Act 
should not be loaded up with this garbage or with any other superfluous 
garbage just because someone wants to make a statement.
  Mr. Speaker, I oppose the motion to recommit.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  For what purpose does the gentleman from California [Mr. Kim] rise?
  Mr. KIM. Mr. Speaker, I would like to yield the remainder of my time 
to the ranking member of the Committee on Small Business.
  The SPEAKER pro tempore. Without objection, the gentlewoman from 
Kansas [Mrs. Meyers] is recognized for 30 seconds.
  There was no objection.
  Mrs. MEYERS of Kansas. Mr. Speaker, I rise in strong support of the 
motion to recommit. For at least two Congresses the Small Business 
Committee has wrestled with the burdensome prepayment penalties in the 
503 Loan Program. Finally, after gaining administration support we ran 
into the problem of money. We were told that $30 million was all that 
could be scraped together to solve a $100 million problem.
  Mr. Speaker, imagine my shock when I found that the 1995 SBA 
appropriations contained $38 million of totally unauthorized spending. 
This spending is for programs the administration had not requested, and 
urged be eliminated. The Committee on Small Business has never held a 
hearing on these projects, or deliberated their authorization.
  It is outrageous that small business men and women, some in hardship 
situations due to the high penalty for prepayment of SBA 503 loans will 
go without relief due to this kind of spending. Let us do the right 
thing and support the Kim motion to recommit and try to put that money 
to use helping small business.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. KIM. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  Pursuant to the provisions of clause 5 of rule XV, the Chair 
announces that he will reduce to a minimum of 5 minutes the period of 
time within which a vote by electronic device may be ordered on the 
question of the passage of the bill.
  The vote was taken by electronic device, and there were--yeas 176, 
nays 242, not voting 16, as follows:

                             [Roll No. 427]

                               YEAS--176

     Allard
     Andrews (ME)
     Andrews (NJ)
     Archer
     Armey
     Bachus (AL)
     Baker (CA)
     Baker (LA)
     Ballenger
     Barca
     Barcia
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bentley
     Bereuter
     Bilbray
     Bilirakis
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bunning
     Burton
     Buyer
     Camp
     Canady
     Cantwell
     Castle
     Clinger
     Coble
     Collins (GA)
     Combest
     Condit
     Cooper
     Cox
     Crane
     Crapo
     Cunningham
     DeLay
     Diaz-Balart
     Dickey
     Doolittle
     Dornan
     Dreier
     Duncan
     Dunn
     Ehlers
     Emerson
     Everett
     Ewing
     Fawell
     Fields (TX)
     Fingerhut
     Fish
     Fowler
     Franks (CT)
     Franks (NJ)
     Gallegly
     Gilchrest
     Gillmor
     Gilman
     Gingrich
     Goodlatte
     Goodling
     Goss
     Grams
     Grandy
     Greenwood
     Gunderson
     Hancock
     Hastert
     Hefley
     Herger
     Hobson
     Hoekstra
     Hoke
     Horn
     Houghton
     Huffington
     Hunter
     Hutto
     Hyde
     Inglis
     Inhofe
     Istook
     Johnson (CT)
     Johnson (SD)
     Johnson, Sam
     Kasich
     Kim
     King
     Kingston
     Klug
     Knollenberg
     Kolbe
     Kyl
     Lazio
     Leach
     Levy
     Lewis (CA)
     Lewis (FL)
     Lewis (KY)
     Lightfoot
     Linder
     Lucas
     Machtley
     Manzullo
     McCandless
     McCollum
     McCrery
     McCurdy
     McHugh
     McInnis
     McKeon
     Meyers
     Mica
     Michel
     Miller (FL)
     Minge
     Molinari
     Moorhead
     Morella
     Nussle
     Orton
     Oxley
     Paxon
     Penny
     Peterson (MN)
     Petri
     Pombo
     Pomeroy
     Porter
     Portman
     Pryce (OH)
     Ramstad
     Ravenel
     Roberts
     Roemer
     Rohrabacher
     Ros-Lehtinen
     Roukema
     Royce
     Santorum
     Saxton
     Schaefer
     Schiff
     Sensenbrenner
     Shaw
     Shays
     Shuster
     Smith (MI)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Snowe
     Solomon
     Stearns
     Stenholm
     Stump
     Swett
     Talent
     Taylor (MS)
     Thomas (CA)
     Thomas (WY)
     Torkildsen
     Upton
     Walker
     Walsh
     Weldon
     Wolf
     Young (FL)
     Zeliff
     Zimmer

                               NAYS--242

     Ackerman
     Andrews (TX)
     Applegate
     Bacchus (FL)
     Baesler
     Barlow
     Bateman
     Becerra
     Beilenson
     Berman
     Bevill
     Bishop
     Blackwell
     Bonior
     Borski
     Boucher
     Brewster
     Brooks
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Bryant
     Byrne
     Callahan
     Cardin
     Carr
     Chapman
     Clay
     Clayton
     Clement
     Clyburn
     Coleman
     Collins (IL)
     Collins (MI)
     Conyers
     Coppersmith
     Costello
     Coyne
     Cramer
     Danner
     Darden
     de la Garza
     Deal
     DeFazio
     DeLauro
     Dellums
     Derrick
     Deutsch
     Dicks
     Dingell
     Dixon
     Dooley
     Durbin
     Edwards (CA)
     Edwards (TX)
     Engel
     English
     Eshoo
     Evans
     Farr
     Fazio
     Fields (LA)
     Filner
     Flake
     Foglietta
     Ford (MI)
     Ford (TN)
     Frank (MA)
     Furse
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gibbons
     Glickman
     Gonzalez
     Gordon
     Green
     Gutierrez
     Hall (OH)
     Hall (TX)
     Hamburg
     Hamilton
     Hansen
     Harman
     Hastings
     Hayes
     Hefner
     Hilliard
     Hinchey
     Hoagland
     Hochbrueckner
     Holden
     Hoyer
     Hughes
     Hutchinson
     Inslee
     Jacobs
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Johnston
     Kanjorski
     Kaptur
     Kennelly
     Kildee
     Kleczka
     Klein
     Klink
     Kopetski
     Kreidler
     LaFalce
     Lambert
     Lancaster
     Lantos
     LaRocco
     Laughlin
     Lehman
     Levin
     Lewis (GA)
     Lipinski
     Livingston
     Lloyd
     Long
     Lowey
     Mann
     Manton
     Margolies-Mezvinsky
     Markey
     Martinez
     Matsui
     Mazzoli
     McCloskey
     McDade
     McDermott
     McHale
     McKinney
     McNulty
     Meek
     Menendez
     Mfume
     Miller (CA)
     Mineta
     Mink
     Moakley
     Mollohan
     Montgomery
     Moran
     Murphy
     Murtha
     Myers
     Nadler
     Neal (MA)
     Neal (NC)
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Packard
     Pallone
     Parker
     Pastor
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (FL)
     Pickett
     Pickle
     Poshard
     Price (NC)
     Quillen
     Quinn
     Rahall
     Rangel
     Reed
     Regula
     Reynolds
     Richardson
     Rogers
     Rose
     Rostenkowski
     Rowland
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sangmeister
     Sarpalius
     Sawyer
     Schenk
     Schroeder
     Schumer
     Scott
     Serrano
     Sharp
     Shepherd
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (IA)
     Spence
     Spratt
     Stark
     Stokes
     Strickland
     Studds
     Stupak
     Swift
     Tanner
     Tauzin
     Taylor (NC)
     Tejeda
     Thompson
     Thornton
     Thurman
     Torres
     Torricelli
     Towns
     Traficant
     Tucker
     Unsoeld
     Valentine
     Velazquez
     Visclosky
     Volkmer
     Waters
     Watt
     Waxman
     Wheat
     Whitten
     Williams
     Wilson
     Wise
     Woolsey
     Wyden
     Wynn
     Yates
     Young (AK)

                             NOT VOTING--16

     Abercrombie
     Calvert
     Frost
     Gallo
     Kennedy
     Maloney
     McMillan
     Meehan
     Ridge
     Roth
     Slattery
     Sundquist
     Synar
     Vento
     Vucanovich
     Washington

                              {time}  1149

  Messrs. WYNN, LIVINGSTON, and PACKARD changed their vote from ``yea'' 
to ``nay.''
  Messrs. JOHNSON of South Dakota, BARTON of Texas, and GILMAN changed 
their vote from ``nay'' to ``yea.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore (Mr. Kleczka). The question is on the passage 
of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. LaFALCE. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. The Chair will remind Members that this is a 
5-minute vote.
  The vote was taken by electronic device, and there were--yeas 370, 
nays 48, not voting 16, as follows:

                             [Roll No. 428]

                               YEAS--370

     Abercrombie
     Ackerman
     Andrews (ME)
     Andrews (TX)
     Applegate
     Bacchus (FL)
     Baesler
     Baker (CA)
     Baker (LA)
     Ballenger
     Barca
     Barcia
     Barlow
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Bateman
     Becerra
     Beilenson
     Bentley
     Bereuter
     Berman
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Blackwell
     Blute
     Boehlert
     Boehner
     Bonilla
     Bonior
     Borski
     Boucher
     Brewster
     Brooks
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Bryant
     Bunning
     Buyer
     Byrne
     Callahan
     Calvert
     Camp
     Canady
     Cantwell
     Cardin
     Carr
     Castle
     Chapman
     Clay
     Clayton
     Clement
     Clinger
     Clyburn
     Coleman
     Collins (GA)
     Collins (IL)
     Collins (MI)
     Combest
     Condit
     Conyers
     Cooper
     Coppersmith
     Costello
     Coyne
     Cramer
     Cunningham
     Danner
     Darden
     de la Garza
     Deal
     DeFazio
     Dellums
     Derrick
     Deutsch
     Dickey
     Dingell
     Dixon
     Dooley
     Dunn
     Durbin
     Edwards (CA)
     Edwards (TX)
     Emerson
     Engel
     English
     Eshoo
     Evans
     Everett
     Ewing
     Farr
     Fazio
     Fields (LA)
     Filner
     Fingerhut
     Fish
     Flake
     Foglietta
     Ford (TN)
     Fowler
     Frank (MA)
     Franks (CT)
     Franks (NJ)
     Furse
     Gallegly
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gingrich
     Glickman
     Gonzalez
     Goodling
     Gordon
     Goss
     Grams
     Grandy
     Green
     Greenwood
     Gunderson
     Gutierrez
     Hall (OH)
     Hall (TX)
     Hamburg
     Hamilton
     Hansen
     Harman
     Hastert
     Hastings
     Hayes
     Hefner
     Herger
     Hilliard
     Hinchey
     Hoagland
     Hobson
     Hochbrueckner
     Hoke
     Holden
     Horn
     Houghton
     Hoyer
     Huffington
     Hughes
     Hutchinson
     Hutto
     Hyde
     Inglis
     Inhofe
     Inslee
     Jacobs
     Jefferson
     Johnson (CT)
     Johnson (GA)
     Johnson (SD)
     Johnson, E. B.
     Johnson, Sam
     Johnston
     Kanjorski
     Kaptur
     Kasich
     Kennelly
     Kildee
     King
     Kingston
     Kleczka
     Klein
     Klink
     Klug
     Knollenberg
     Kolbe
     Kopetski
     Kreidler
     Kyl
     LaFalce
     Lambert
     Lancaster
     Lantos
     LaRocco
     Laughlin
     Lazio
     Leach
     Lehman
     Levin
     Levy
     Lewis (CA)
     Lewis (FL)
     Lewis (GA)
     Lewis (KY)
     Lightfoot
     Linder
     Lipinski
     Livingston
     Lloyd
     Long
     Lowey
     Lucas
     Machtley
     Mann
     Manton
     Margolies-Mezvinsky
     Markey
     Martinez
     Matsui
     Mazzoli
     McCloskey
     McCrery
     McCurdy
     McDade
     McDermott
     McHale
     McHugh
     McInnis
     McKeon
     McKinney
     McMillan
     McNulty
     Meehan
     Menendez
     Meyers
     Mfume
     Michel
     Miller (CA)
     Mineta
     Minge
     Mink
     Moakley
     Molinari
     Mollohan
     Montgomery
     Moran
     Morella
     Murphy
     Murtha
     Nadler
     Neal (MA)
     Neal (NC)
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Oxley
     Pallone
     Parker
     Pastor
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (FL)
     Peterson (MN)
     Pickett
     Pickle
     Pombo
     Pomeroy
     Porter
     Portman
     Poshard
     Price (NC)
     Pryce (OH)
     Quillen
     Quinn
     Rahall
     Ramstad
     Rangel
     Ravenel
     Reed
     Regula
     Reynolds
     Richardson
     Roberts
     Roemer
     Rogers
     Ros-Lehtinen
     Rose
     Rostenkowski
     Roukema
     Rowland
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sangmeister
     Santorum
     Sarpalius
     Sawyer
     Saxton
     Schenk
     Schiff
     Schroeder
     Schumer
     Scott
     Serrano
     Sharp
     Shaw
     Shays
     Shepherd
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (IA)
     Smith (NJ)
     Smith (OR)
     Smith (TX)
     Snowe
     Solomon
     Spence
     Spratt
     Stark
     Stenholm
     Stokes
     Strickland
     Studds
     Stupak
     Swett
     Swift
     Talent
     Tanner
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas (CA)
     Thomas (WY)
     Thompson
     Thornton
     Thurman
     Torkildsen
     Torres
     Torricelli
     Towns
     Traficant
     Tucker
     Unsoeld
     Valentine
     Velazquez
     Visclosky
     Volkmer
     Walker
     Walsh
     Waters
     Watt
     Waxman
     Weldon
     Wheat
     Whitten
     Williams
     Wilson
     Wise
     Wolf
     Woolsey
     Wyden
     Wynn
     Yates
     Young (AK)
     Young (FL)
     Zeliff

                                NAYS--48

     Allard
     Andrews (NJ)
     Archer
     Armey
     Bachus (AL)
     Barton
     Bliley
     Burton
     Coble
     Cox
     Crane
     Crapo
     DeLay
     Doolittle
     Dornan
     Dreier
     Duncan
     Ehlers
     Fawell
     Fields (TX)
     Goodlatte
     Hancock
     Hefley
     Hoekstra
     Hunter
     Istook
     Kim
     Manzullo
     McCandless
     McCollum
     Mica
     Miller (FL)
     Moorhead
     Myers
     Packard
     Paxon
     Penny
     Petri
     Rohrabacher
     Roth
     Royce
     Schaefer
     Sensenbrenner
     Smith (MI)
     Stearns
     Stump
     Upton
     Zimmer

                             NOT VOTING--16

     DeLauro
     Diaz-Balart
     Dicks
     Ford (MI)
     Frost
     Gallo
     Kennedy
     Maloney
     Meek
     Ridge
     Slattery
     Sundquist
     Synar
     Vento
     Vucanovich
     Washington

                              {time}  1200

  Messrs. MOORHEAD, FAWELL, and McCOLLUM changed their vote from 
``yea'' to ``nay.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.


                             general leave

  Mr. LaFALCE. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their 
remarks, and to include extraneous matter, on H.R. 4801, the bill just 
passed.
  The SPEAKER pro tempore (Mr. Kleczka). Is there objection to the 
request of the gentleman from New York?
  There was no objection.
  Mr. LaFALCE. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 2060) to amend the Small Business 
Act and the Small Business Investment Act of 1958, and for other 
purposes, and ask for its immediate consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  The Clerk read the Senate bill as follows:

                                S. 2060

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Administration Reauthorization and Amendment Act of 
     1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorizations.

                TITLE II--FINANCIAL ASSISTANCE PROGRAMS

Sec. 201. Microloan financing pilot.
Sec. 202. Eligibility of Native American tribal governments to be 
              microloan intermediaries.
Sec. 203. Microloan program extension.
Sec. 204. Microloan program funding and State limitations.
Sec. 205. Distribution of intermediaries.
Sec. 206. Microloan intermediary loan limitation.
Sec. 207. Microloan technical assistance to nonborrowers.
Sec. 208. Microloan demonstration program grants.
Sec. 209. Eligibility to participate as a microloan intermediary and a 
              technical assistance provider.
Sec. 210. Loans to exporters.
Sec. 211. Working capital international trade loans.
Sec. 212. Guarantees on international trade loans.
Sec. 213. Accredited lenders program.
Sec. 214. Interest rate on certified development company loans.
Sec. 215. Certifications of eligibility for SBIC and SSBIC financing.
Sec. 216. Participating securities for smaller SBICs.

             TITLE III--SIZE STANDARDS AND BOND GUARANTEES

Sec. 301. Size standard criteria.
Sec. 302. Sunset on preferred surety bond guarantee program.
Sec. 303. Manufacturing contracts through manufacturing application and 
              education centers.

               TITLE IV--BUSINESS DEVELOPMENT ASSISTANCE

                     Subtitle A--General Provisions

Sec. 401. Sunset on cosponsored training.
Sec. 402. Small business development center program level.
Sec. 403. Federal contracts with small business development centers.
Sec. 404. Small business development center program examination and 
              certification.
Sec. 405. Service Corps of Retired Executives (SCORE) program.
Sec. 406. Information concerning franchising.

           Subtitle B--Development of Woman-Owned Businesses

Sec. 411. Extension of authority for demonstration projects.
Sec. 412. Establishment of Office of Women's Business Ownership.
Sec. 413. National Commission on Women in Business.

          TITLE V--RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

Sec. 501. Short title.
Sec. 502. Prepayment of development company debentures.

                   TITLE VI--MISCELLANEOUS AMENDMENTS

Sec. 601. Consolidation of funding accounts.
Sec. 602. Imposition of fees.
Sec. 603. Job creation and community benefit.
Sec. 604. Microloan program amendments.
Sec. 605. Technical clarification.
Sec. 606. Secondary market study due date.
Sec. 607. Study and data base: Guaranteed Business Loan Program and 
              Development Company Program.
Sec. 608. SBIR vendors.
Sec. 609. Program extension.
Sec. 610. Prohibition on the use of funds for individuals not lawfully 
              within the United States.
Sec. 611. Office of advocacy employees.
Sec. 612. Prohibition on the provision of assistance.
Sec. 613. Certification of compliance with child support obligations.
                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by striking subsections (k) (as added by section 
     405(3) of the Small Business Credit and Business Opportunity 
     Enhancement Act of 1992) through (p) and inserting the 
     following:
       ``(l) The following program levels are authorized for 
     fiscal year 1995:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $110,000,000 in direct 
     and immediate participation loans, and $45,000,000 in 
     technical assistance grants as provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $13,315,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $9,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $2,300,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958;
       ``(C) $2,000,000,000 in loans as provided in section 
     7(a)(21); and
       ``(D) $15,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $33,000,000 in purchases of preferred securities;
       ``(B) $275,000,000 in guarantees of debentures, of which 
     $65,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $500,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $450,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) The Administration is authorized to make grants or 
     enter into cooperative agreements--
       ``(A) for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1), $3,500,000;
       ``(B) for the Small Business Institute program authorized 
     by section 8(b)(1), $3,000,000; and
       ``(C) for activities of small business development centers 
     pursuant to section 21(c)(3)(G), $25,000,000, to remain 
     available until expended.
       ``(m) There are authorized to be appropriated to the 
     Administration for fiscal year 1995 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.
       ``(n) The following program levels are authorized for 
     fiscal year 1996:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $175,000,000 in direct 
     and immediate participation loans, and $65,000,000 in 
     technical assistance grants as provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $15,320,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $10,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $2,800,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958;
       ``(C) $2,500,000,000 in loans as provided in section 
     7(a)(21); and
       ``(D) $20,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $39,000,000 in purchases of preferred securities;
       ``(B) $300,000,000 in guarantees of debentures, of which 
     $70,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $750,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $2,000,000,000, of which not more than $500,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) The Administration is authorized to make grants or 
     enter cooperative agreements--
       ``(A) for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1), $3,750,000;
       ``(B) for the small business institute program authorized 
     by section 8(b)(1), $3,250,000; and
       ``(C) for activities of small business development centers 
     pursuant to section 21(c)(3)(G), not to exceed $25,000,000, 
     to remain available until expended.
       ``(o) There are authorized to be appropriated to the 
     Administration for fiscal year 1996 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.
       ``(p) The following program levels are authorized for 
     fiscal year 1997:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $250,000,000 in direct 
     and immediate participation loans and $98,000,000 in 
     technical assistance grants as provided in section 7(m), to 
     remain available until expended.
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $19,020,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $12,000,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $3,500,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958;
       ``(C) $3,500,000,000 in loans as provided in section 
     7(a)(21); and
       ``(D) $20,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $45,000,000 in purchases of preferred securities;
       ``(B) $375,000,000 in guarantees of debentures, of which 
     $75,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $1,125,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $2,200,000,000, of which not more than $650,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) The Administration is authorized to make grants or 
     enter cooperative agreements--
       ``(A) for the Service Corps of Retired Executives program 
     authorized by section 8(b)(1), $4,000,000;
       ``(B) for the small business institute program authorized 
     by section 8(b)(1), $3,500,000; and
       ``(C) for activities of small business development centers 
     pursuant to section 21(c)(3)(G), not to exceed $25,000,000, 
     to remain available until expended.
       ``(q) There are authorized to be appropriated to the 
     Administration for fiscal year 1997 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.''.
                TITLE II--FINANCIAL ASSISTANCE PROGRAMS

     SEC. 201. MICROLOAN FINANCING PILOT.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended by adding at the end the following new paragraph:
       ``(12) Deferred participation loan pilot.--In lieu of 
     making direct loans to intermediaries as authorized in 
     paragraph (1)(B), during fiscal years 1995 through 1997, the 
     Administration may, on a pilot program basis, participate on 
     a deferred basis of not less than 90 percent and not more 
     than 100 percent on loans made to intermediaries by a for-
     profit or nonprofit entity or by alliances of such entities, 
     subject to the following conditions:
       ``(A) Number of loans.--In carrying out this paragraph, the 
     Administration shall not participate in providing financing 
     on a deferred basis to more than 10 intermediaries in urban 
     areas or more than 10 intermediaries in rural areas.
       ``(B) Term of loans.--The term of each loan shall be 10 
     years. During the first year of the loan, the intermediary 
     shall not be required to repay any interest or principal. 
     During the second through fifth years of the loan, the 
     intermediary shall be required to pay interest only. During 
     the sixth through tenth years of the loan, the intermediary 
     shall be required to make interest payments and fully 
     amortize the principal.
       ``(C) Interest rate.--The interest rate on each loan shall 
     be the rate specified by paragraph (3)(F) for direct loans. 
     Subject to the availability of appropriations, the 
     Administration may make payments to lenders on behalf of 
     intermediaries in order to achieve such interest rate.''.

     SEC. 202. ELIGIBILITY OF NATIVE AMERICAN TRIBAL GOVERNMENTS 
                   TO BE MICROLOAN INTERMEDIARIES.

       Section 7(m)(11)(A) of the Small Business Act (15 U.S.C. 
     636(m)(11)(A)) is amended--
       (1) in clause (iii), by striking ``or'' at the end;
       (2) in clause (iv), by striking the comma at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new clause:
       ``(v) an agency of or nonprofit entity established by a 
     Native American Tribal Government,''.

     SEC. 203. MICROLOAN PROGRAM EXTENSION.

       Section 609(j) of Public Law 102-140 (105 Stat. 831) is 
     amended by striking ``5 years after the date of enactment of 
     this Act'', and inserting ``on October 1, 1998''.

     SEC. 204. MICROLOAN PROGRAM FUNDING AND STATE LIMITATIONS.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended--
       (1) in paragraph (5)(A)--
       (A) by striking ``25 grants'' and inserting ``50 grants''; 
     and
       (B) by striking ``$125,000'' and inserting ``$150,000''; 
     and
       (2) by striking paragraph (7) and inserting the following:
       ``(7) Program funding for microloans.--
       ``(A) Number of participants.--In carrying out paragraph 
     (1)(B)(i), the Administration may fund, on a competitive 
     basis, not more than--
       ``(i) 150 microloan programs in fiscal year 1995; and
       ``(ii) 200 microloan programs in each succeeding fiscal 
     year.
       ``(B) State limitations.--A State shall not receive more 
     than $10,000,000 in loan funds during any year of program 
     participation.''.

     SEC. 205. DISTRIBUTION OF INTERMEDIARIES.

       Section 7(m)(8) of the Small Business Act (15 U.S.C. 
     636(m)(8)) is amended to read as follows:
       ``(8) Distribution of intermediaries.--In approving 
     microloan program applicants under this subsection, the 
     Administration shall select such intermediaries as will 
     further microloan availability for small businesses in all 
     industries located throughout each State, especially small 
     businesses located in economically distressed urban and rural 
     areas.''.

     SEC. 206. MICROLOAN INTERMEDIARY LOAN LIMITATION.

       Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
     636(m)(3)(C)) is amended by striking ``$1,250,000'' and 
     inserting ``$2,000,000''.

     SEC. 207. MICROLOAN TECHNICAL ASSISTANCE TO NONBORROWERS.

       Section 7(m)(4) of the Small Business Act (15 U.S.C. 
     636(m)(4)) is amended by adding at the end the following new 
     subparagraph:
       ``(E) Assistance to certain small business concerns.--Each 
     intermediary may expend an amount not to exceed 20 percent of 
     the grant funds authorized under paragraph (1)(B)(ii) to 
     provide marketing, management, and technical assistance to 
     small business concerns that are not borrowers under this 
     subsection.''.

     SEC. 208. MICROLOAN DEMONSTRATION PROGRAM GRANTS.

       Section 7(m)(4) of the Small Business Act (15 U.S.C. 
     636(m)(4)) is amended--
       (1) in subparagraph (B), by inserting ``except for a grant 
     made to an intermediary that provides not less than 50 
     percent of its loans to small business concerns owned by one 
     or more members of a federally recognized Indian tribe,'' 
     after ``under subparagraph (A),''; and
       (2) in subparagraph (C), by striking clause (i) and 
     inserting the following:
       ``(i) In general.--In addition to grants made under 
     subparagraph (A), each intermediary shall be eligible to 
     receive a grant equal to 5 percent of the total outstanding 
     balance of loans made to the intermediary under this 
     subsection if--

       ``(I) the intermediary provides not less than 25 percent of 
     its loans to small business concerns owned by one or more 
     members of a federally recognized Indian tribe; or
       ``(II) the intermediary has a portfolio of loans made under 
     this subsection that averages not more than $7,500 during the 
     period of the intermediary's participation in the program.''.

     SEC. 209. ELIGIBILITY TO PARTICIPATE AS A MICROLOAN 
                   INTERMEDIARY AND A TECHNICAL ASSISTANCE 
                   PROVIDER.

       Section 7(m)(2) of the Small Business Act (15 U.S.C. 
     636(m)(2)) is amended--
       (1) by striking ``(2) Eligibility for participation.--An'' 
     and inserting the following:
       ``(2) Eligibility for participation.--
       ``(A) In general.--An'';
       (2) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and indenting accordingly; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Participation as intermediary and technical 
     assistance provider.--A single entity may simultaneously 
     receive 1 grant as an intermediary pursuant to paragraph 
     (1)(B)(ii) and 1 grant as a nonintermediary technical 
     assistance provider pursuant to paragraph (1)(B)(iii) if the 
     Administration determines that--
       ``(i) the purposes of the grants are not duplicative;
       ``(ii) the grants will enable the entity to provide 
     technical assistance to different geographic areas, or to 
     support both guaranteed and direct loans in the same 
     geographic area; and
       ``(iii) the entity meets all of the requirements of the 
     programs authorized pursuant to clauses (ii) and (iii) of 
     paragraph (1)(B).''.

     SEC. 210. LOANS TO EXPORTERS.

       Section 7(a)(14)(A) of the Small Business Act (15 U.S.C. 
     636(a)(14)(A)) is amended to read as follows:
       ``(14)(A) The Administration may provide extensions of 
     credit, standby letters of credit, revolving lines of credit 
     for export purposes, and other financing to enable small 
     business concerns, including small business export trading 
     companies and small business export management companies, to 
     develop foreign markets. A bank or participating lending 
     institution may establish the rate of interest on such 
     financings as may be legal and reasonable.''.

     SEC. 211. WORKING CAPITAL INTERNATIONAL TRADE LOANS.

       Section 7(a)(3)(B) of the Small Business Act (15 U.S.C. 
     636(a)(3)(B)) is amended to read as follows:
       ``(B) if the total amount outstanding and committed (on a 
     deferred basis) solely for the purposes provided in paragraph 
     (16) to the borrower from the business loan and investment 
     fund established by this Act would exceed $1,250,000, of 
     which not more than $750,000 may be used for working capital, 
     supplies, or financings under section 7(a)(14) for export 
     purposes; and''.

     SEC. 212. GUARANTEES ON INTERNATIONAL TRADE LOANS.

       Section 7(a)(2)(B)(iv) of the Small Business Act (15 U.S.C. 
     636(a)(2)(B)(iv)) is amended to read as follows:
       ``(iv) not less than 85 percent nor more than 90 percent of 
     the financing outstanding at the time of disbursement if such 
     financing is a loan under paragraph (14) or (16).''.

     SEC. 213. ACCREDITED LENDERS PROGRAM.

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

     ``SEC. 507. ACCREDITED LENDERS PROGRAM.

       ``(a) Establishment.--The Administration is authorized to 
     establish an Accredited Lenders Program for qualified State 
     and local development companies that meet the requirements of 
     subsection (b).
       ``(b) Requirements.--The Administration may designate a 
     qualified State or local development company as an accredited 
     lender if such company--
       ``(1) has been an active participant in the Development 
     Company Program authorized by sections 502, 503, and 504 for 
     not less than the preceding 12 months;
       ``(2) has well-trained, qualified personnel who are 
     knowledgeable in the Administration's lending policies and 
     procedures for such Development Company Program;
       ``(3) has the ability to process, close, and service 
     financing for plant and equipment under such Development 
     Company Program;
       ``(4) has a reasonable and acceptable loss rate on the 
     company's debentures;
       ``(5) has a history of submitting to the Administration 
     complete and accurate debenture guaranty application 
     packages; and
       ``(6) has demonstrated the ability to serve small business 
     credit needs for financing plant and equipment through the 
     Development Company Program authorized by sections 502, 503, 
     and 504.
       ``(c) Expedited Processing of Loan Applications.--The 
     Administration shall develop an expedited procedure for 
     processing a loan application or servicing action submitted 
     by a qualified State or local development company that has 
     been designated as an accredited lender in accordance with 
     subsection (b).
       ``(d) Suspension or Revocation of Designation.--
       ``(1) In general.--The designation of a qualified State or 
     local development company as an accredited lender may be 
     suspended or revoked if the Administration determines that--
       ``(A) the development company has not continued to meet the 
     criteria for eligibility under subsection (b); or
       ``(B) the development company has failed to adhere to the 
     Administration's rules and 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.
       ``(e) Definition.--For purposes of this section, the term 
     `qualified State or local development company' has the same 
     meaning as in section 503(e).''.
       (b) Regulations.--Not later than 120 days after the date of 
     enactment of this Act, the Administration shall promulgate 
     final regulations to carry out this section.
       (c) Report.--Not later than 1 year after the effective date 
     of regulations promulgated under subsection (b), the 
     Administration shall report to the Committees on Small 
     Business of the Senate and the House of Representatives on 
     the implementation of this section. Such report shall include 
     data on the number of development companies 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 
     Administration deems appropriate.

     SEC. 214. INTEREST RATE ON CERTIFIED DEVELOPMENT COMPANY 
                   LOANS.

       Section 112(c) of the Small Business Administration 
     Reauthorization and Amendment Act of 1988 (102 Stat. 2996) is 
     amended--
       (1) in paragraph (1), by striking ``(1) In General.--
     Section 503'' and inserting ``Section 503''; and
       (2) by striking paragraph (2).

     SEC. 215. CERTIFICATIONS OF ELIGIBILITY FOR SBIC AND SSBIC 
                   FINANCING.

       Section 308 of the Small Business Investment Act of 1958 
     (15 U.S.C. 687) is amended by adding at the end the following 
     new subsection:
       ``(h) Certifications of Eligibility.--
       ``(1) Certification by small business concern.--Prior to 
     receiving financial assistance from a company licensed 
     pursuant to subsection (c) or (d) of section 301, a small 
     business concern shall certify in writing that it meets the 
     eligibility requirements of the Small Business Investment 
     Company Program or the Specialized Small Business Investment 
     Company Program, as applicable.
       ``(2) Certification by company.--Prior to providing 
     financial assistance to a small business concern under this 
     Act, a company licensed pursuant to subsection (c) or (d) of 
     section 301 shall certify in writing that it has reviewed the 
     application for assistance of the small business concern and 
     that all documentation and other information supports the 
     eligibility of the applicant.
       ``(3) Retention of certifications.--Certificates made 
     pursuant to paragraphs (1) and (2) shall be retained by the 
     company licensed pursuant to subsection (c) or (d) of section 
     301 for the duration of the financial assistance.''.

     SEC. 216. PARTICIPATING SECURITIES FOR SMALLER SBICS.

       Section 303(g) of the Small Business Investment Act of 1958 
     (15 U.S.C. 683(g)) is amended by adding at the end the 
     following new paragraph:
       ``(13) Participating securities for smaller small business 
     investment companies.--
       ``(A) In general.--Subject to the provisions of 
     subparagraph (B), of the amount of the annual program level 
     of participating securities approved in appropriations Acts, 
     50 percent shall be reserved for funding small business 
     investment companies with private capital of less than 
     $20,000,000.
       ``(B) Exception.--During the last quarter of each fiscal 
     year, if the Administrator determines that there is a lack of 
     qualified applicants with private capital of less than 
     $20,000,000, the Administrator may utilize all or any part of 
     the program level for securities reserved under subparagraph 
     (A) for qualified applicants with private capital of 
     $20,000,000 or more.''.
             TITLE III--SIZE STANDARDS AND BOND GUARANTEES

     SEC. 301. SIZE STANDARD CRITERIA.

       Section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)) is amended to read as follows:
       ``(2) Size standard criteria.--
       ``(A) In general.--In addition to the criteria specified in 
     paragraph (1), 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 Act or any other Act.
       ``(B) Additional criteria.--The standards described in 
     paragraph (1) may utilize number of employees, dollar volume 
     of business, net worth, net income, or a combination thereof.
       ``(C) Requirements.--Unless specifically authorized by 
     statute, no Federal department or agency may prescribe a size 
     standard for categorizing a business concern as a small 
     business concern, unless such proposed size standard--
       ``(i) is proposed after an opportunity for public notice 
     and comment;
       ``(ii) provides for determining--

       ``(I) the size of a manufacturing concern as measured by 
     the manufacturing concern's average employment based upon 
     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; and
       ``(III) the size of other business concerns on the basis of 
     data over a period of not less than 3 years; and

       ``(iii) is approved by the Administrator.''.

     SEC. 302. SUNSET ON PREFERRED SURETY BOND GUARANTEE PROGRAM.

       Section 207 of the Small Business Administration 
     Reauthorization and Amendment Act of 1988 (15 U.S.C. 694b 
     note) is amended by striking ``September 30, 1994'' and 
     inserting ``September 30, 1995''.

     SEC. 303. MANUFACTURING CONTRACTS THROUGH MANUFACTURING 
                   APPLICATION AND EDUCATION CENTERS.

       (a) In General.--The Small Business Administration shall 
     promote the award of Federal manufacturing contracts to small 
     business concerns that participate in manufacturing 
     application and education centers by working with the 
     Department of Commerce and other agencies to identify 
     components and subsystems that are both critical and 
     currently foreign-sourced.
       (b) Qualifications.--In order to qualify as a manufacturing 
     application and education center under this section, an 
     entity shall have the capacity to assist small business 
     concerns in a shared-use production environment and to offer 
     the following services:
       (1) Technology demonstration.
       (2) Technology education.
       (3) Technology application support.
       (4) Technology advancement support.
       (c) Inapplicability of Certain Requirements.--The 
     requirements of section 15(o)(1)(B) of the Small Business Act 
     shall not apply with respect to any manufacturing contract 
     carried out by a small business concern in conjunction with a 
     manufacturing application and education center under this 
     section.
       (d) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall promulgate final regulations to 
     carry out this section.
       (e) Termination of Authority.--The authority of the Small 
     Business Administration under this section shall terminate on 
     September 30, 1997.
               TITLE IV--BUSINESS DEVELOPMENT ASSISTANCE
                     Subtitle A--General Provisions

     SEC. 401. SUNSET ON COSPONSORED TRAINING.

       (a) In General.--
       (1) Repeal.--The amendments made by section 5(a) of Small 
     Business Computer Security and Education Act of 1984 (15 
     U.S.C. 633 note) are hereby repealed.
       (2) Effective date.--Paragraph (1) shall take effect on 
     September 30, 1997.
       (b) Conforming Amendment.--Section 7(b) of the Small 
     Business Computer Security and Education Act of 1984 (15 
     U.S.C. 633 note) is amended in the second sentence by 
     striking ``and the amendments made to section 8(b)(1)(A) of 
     the Small Business Act by section 5(a)(2) of this Act are'' 
     and inserting ``is''.

     SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.

       Section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) is amended to read as follows:
       ``(4) Small Business Development Center Program Level.--
       ``(A) In general.--The Administration shall require as a 
     condition of any grant (or amendment or modification thereof) 
     made to an applicant under this section, that a matching 
     amount (excluding any fees collected from recipients of such 
     assistance) equal to the amount of such grant 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.
       ``(C) National program.--
       ``(i) In general.--No recipient of funds under this section 
     shall receive a grant that exceeds--
       ``(I) for fiscal year 1995, the greater of--

       ``(aa) the sum of such recipient's pro rata share of a 
     national program based upon the population to be served by 
     the small business development center as compared to the 
     total population in the United States, and $100,000; or
       ``(bb) $200,000; and

       ``(II) except as provided in clause (ii), in each 
     succeeding fiscal year, the greater of--

       ``(aa) the sum of such recipient's pro rata share of a 
     national program based upon the population to be served by 
     the small business development center as compared to the 
     total population in the United States, and $200,000; or
       ``(bb) $300,000.

       ``(ii) Exception.--The provisions of clause (i)(I) shall 
     apply in any fiscal year after fiscal year 1995 in which, 
     based on funds appropriated, a small business development 
     center would, under the provisions of clause (i)(II), receive 
     less than the small business development center received in 
     fiscal year 1995.
       ``(iii) Amount.--The amount of the national program shall 
     be--
       ``(I) $70,000,000 through September 30, 1995;
       ``(II) $77,500,000 from October 1, 1995 through September 
     30, 1996; and
       ``(III) $85,000,000 beginning October 1, 1996.

     The amount for which a small business development center is 
     eligible under this paragraph shall be based upon the amount 
     of the national program in effect as of the date for 
     commencement of performance of the small business development 
     center's grant.''.

     SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT 
                   CENTERS.

       Section 21(a)(5) of the Small Business Act (15 U.S.C. 
     648(a)(5)) is amended to read as follows:
       ``(5) Federal Contracts With Small Business Development 
     Centers.--
       ``(A) In general.--A small business development center may 
     enter into a contract with a Federal department or agency to 
     provide specific assistance to small business concerns, if 
     the contract is approved in advance by the Associate 
     Administrator of the small business development center 
     program.
       ``(B) Approval criteria.--Each approval of a contract under 
     subparagraph (A) shall be based upon a determination that the 
     contract will provide assistance to small business concerns 
     and that performance of the contract will not hinder the 
     small business development center in carrying out the terms 
     of the grant received by the small business development 
     center from the Administration.
       ``(C) Exemption from matching requirement.--A contract 
     under this paragraph shall not be subject to the matching 
     funds or eligibility requirements of paragraph (4).
       ``(D) Additional provision.--Notwithstanding any other 
     provision of law, a contract for assistance under this 
     paragraph may not be applied to any Federal department or 
     agency's small business, woman-owned business, or socially 
     and economically disadvantaged business contracting goal 
     under section 15(g).''.

     SEC. 404. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM 
                   EXAMINATION AND CERTIFICATION.

       Section 21(k) of the Small Business Act (15 U.S.C. 648(k)) 
     is amended to read as follows:
       ``(k) Program Examination and Certification.--
       ``(1) Examination.--Not later than 180 days after the date 
     of enactment of this subsection, the Administration shall 
     develop and implement a biannual programmatic and financial 
     examination of each small business development center 
     established pursuant to this section.
       ``(2) Certification.--The Administration may provide 
     financial support, by contract or otherwise, to the 
     association authorized by subsection (a)(3)(A) for the 
     purpose of developing a small business development center 
     certification program.
       ``(3) Extension or renewal of cooperative agreements.--In 
     extending or renewing a cooperative agreement of a small 
     business development center, the Administration shall 
     consider the results of the examination and certification 
     program conducted pursuant to paragraphs (1) and (2).''.

     SEC. 405. SERVICE CORPS OF RETIRED EXECUTIVES (SCORE) 
                   PROGRAM.

       Section 8(b)(1) of the Small Business Act (15 U.S.C. 
     637(b)(1)) is amended by adding at the end the following new 
     subparagraph:
       ``(H) In carrying out subparagraph (B), the Administration 
     shall encourage the Service Corps of Retired Executives 
     (SCORE) established pursuant to such subparagraph, to the 
     maximum extent practicable, to consult and work in 
     conjunction with the Corporation for National and Community 
     Service and the Points of Light Foundation established under 
     the National and Community Service Act of 1990.''.

     SEC. 406. INFORMATION CONCERNING FRANCHISING.

       Section 8(b)(1)(A) of the Small Business Act (15 U.S.C. 
     637(b)(1)(A)) is amended by inserting ``including information 
     on the benefits and risks of franchising,'' after ``small-
     business enterprises,''.
           Subtitle B--Development of Woman-Owned Businesses

     SEC. 411. EXTENSION OF AUTHORITY FOR DEMONSTRATION PROJECTS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 28 (as added by section 2 of 
     the Women's Business Development Act of 1991) as section 29; 
     and
       (2) in section 29(g), as redesignated, by striking ``1995'' 
     and inserting ``1997''.

     SEC. 412. ESTABLISHMENT OF OFFICE OF WOMEN'S BUSINESS 
                   OWNERSHIP.

       Section 29 of the Small Business Act (15 U.S.C. 656), as 
     redesignated by section 411, is amended by adding at the end 
     the following new subsection:
       ``(h) Office of Women's Business Ownership.--There is 
     hereby established within the Administration an Office of 
     Women's Business Ownership, which shall be responsible for 
     the administration of the Administration's programs for the 
     development of women's business enterprises, as such term is 
     defined in section 408 of the Women's Business Ownership Act 
     of 1988. The Office of Women's Business Ownership shall be 
     administered by an Assistant Administrator, who shall be 
     appointed by the Administrator.''.

     SEC. 413. NATIONAL COMMISSION ON WOMEN IN BUSINESS.

       (a) Establishment.--Section 401 of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read 
     as follows:

     ``SEC. 401. ESTABLISHMENT.

       ``There is hereby established a Commission to be known as 
     the `National Commission on Women in Business' (hereafter in 
     this title referred to as the `Commission').''.
       (b) Duties of the Commission.--Section 402 of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 631 note) is 
     amended to read as follows:

     ``SEC. 402. DUTIES OF THE COMMISSION.

       ``The Commission shall--
       ``(1) review, promote, coordinate, and monitor plans and 
     programs, developed in the public and private sectors, which 
     affect the ability of woman-owned businesses to obtain 
     capital and credit;
       ``(2) promote and assist in the development of the 
     Intermediate Census on Women's Business Ownership and other 
     surveys of woman-owned businesses;
       ``(3) provide assistance to and outreach for the 
     involvement of women business owners in White House 
     Conference on Small Business;
       ``(4) study and assess--
       ``(A) the obstacles faced by women seeking to establish 
     businesses and women seeking senior management positions in 
     large and small businesses and in the professions; and
       ``(B) the contributions to the Nation's economy by 
     businesses owned or managed by women; and
       ``(5) design a comprehensive plan for a joint public-
     private sector effort to facilitate the development and 
     growth of woman-owned businesses.
       ``(b) Report.--Not later than January 31, 1996, the 
     Commission shall submit a report to the President and the 
     Committees on Small Business of the Senate and the House of 
     Representatives describing the plan developed pursuant to 
     subsection (a)(5).''.
       (c) Membership.--Section 403 of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read 
     as follows:

     ``SEC. 403. MEMBERSHIP OF THE COMMISSION.

       ``(a) In General.--The Commission shall be composed of 14 
     members, of whom--
       ``(1) 7 members shall be the individuals described in 
     subsection (b); and
       ``(2) 7 members shall be appointed in accordance with 
     subsection (c).
       ``(b) Public Sector Members.--For purposes of subsection 
     (a)(1), the individuals described in this section are--
       ``(1) the Administrator of the Small Business 
     Administration;
       ``(2) the Assistant Administrator of the Office of Women's 
     Business Ownership of the Small Business Administration;
       ``(3) the Secretary of the Treasury, or the Secretary's 
     designee;
       ``(4) the Secretary of Labor, or the Secretary's designee;
       ``(5) the Secretary of Commerce, or the Secretary's 
     designee;
       ``(6) the Administrator of the General Services 
     Administration, or the Administrator's designee; and
       ``(7) 1 member of the Board of Governors of the Federal 
     Reserve System, or the designee of a member.
       ``(c) Private Sector Members.--
       ``(1) Chairperson.--Not later than 45 days after the date 
     of enactment of the Small Business Administration 
     Reauthorization and Amendment Act of 1994, the President 
     shall appoint an individual to serve as the chairperson of 
     the Commission (hereafter in this title referred to as the 
     `Chairperson') who shall be a prominent business-woman who is 
     qualified to head the Commission by virtue of her education, 
     training, and experience.
       ``(2) Other members.--Not later than 60 days after the date 
     of enactment of the Small Business Administration 
     Reauthorization and Amendment Act of 1994, the Administrator 
     of the Small Business Administration shall appoint 6 members 
     of the Commission, of whom--
       ``(A) 1 shall be an owner of a small business concern, as 
     such term is defined in section 3 of the Small Business Act, 
     who is a member of the same political party as the President;
       ``(B) 1 shall be an owner of a small business concern, as 
     such term is defined in section 3 of the Small Business Act, 
     who is not a member of the same political party as the 
     President; and
       ``(C) 4 shall be representatives of national women's 
     business organizations.
       ``(d) Administrative Provisions.--
       ``(1) Restriction.--The members of the Commission appointed 
     pursuant to subsection (c) shall not be officers or employees 
     of the Federal Government.
       ``(2) Vice chairperson.--The member of the Commission 
     appointed pursuant to subsection (b)(2) shall serve as vice 
     chairperson of the Commission.
       ``(3) Terms.--The term of service of the members of the 
     Commission appointed pursuant to subsection (c) shall be 1 
     year. No member of the Commission may serve for more than 2 
     consecutive terms.
       ``(4) Designees.--Each designee appointed pursuant to 
     subsection (b) shall--
       ``(A) be a policy-making official whose duties are 
     consistent with the duties of the Commission; and
       ``(B) report directly to the head of the agency on the 
     activities of the Commission.
       ``(5) Compensation and travel expenses.--
       ``(A) Public sector members.--The members of the Commission 
     described in subsection (b) shall serve on the Commission 
     without additional compensation.
       ``(B) Private sector members.--The members of the 
     Commission appointed pursuant to subsection (c) shall serve 
     without pay for membership, except that such members shall be 
     entitled to reimbursement for domestic travel, subsistence, 
     and other necessary expenses incurred by them in carrying out 
     the functions of the Commission in the same manner as persons 
     serving on advisory boards pursuant to section 8(b) of the 
     Small Business Act.
       ``(6) Vacancies.--A vacancy on the Commission shall, not 
     later than 30 days after the date on which the vacancy 
     occurs, be filled in the same manner in which the original 
     appointment was made.
       ``(7) Meetings.--The Commission shall meet at the call of 
     the Chairperson not less than 4 times each year.
       ``(8) Quorums.--
       ``(A) Receipt of testimony.--Four members of the Commission 
     shall constitute a quorum for the receipt of testimony and 
     other evidence.
       ``(B) Approval of recommendations.--A majority of the 
     members of the Commission shall constitute a quorum for the 
     approval of recommendations or reports issued pursuant to 
     sections 402 and 406.''.
       (d) Executive Director and Staff.--Section 404 of the 
     Women's Business Ownership Act of 1988 (15 U.S.C. 631 note) 
     is amended to read as follows:

     ``SEC. 404. EXECUTIVE DIRECTOR AND STAFF.

       ``(a) Executive Director.--The Commission shall have an 
     Executive Director who shall be appointed by the Chairperson 
     and the Assistant Administrator of the Small Business 
     Administration Office of Women's Business Ownership. Upon the 
     recommendation by the Executive Director, the Chairperson may 
     appoint and fix the pay of 4 additional employees at a rate 
     of pay not to exceed the maximum rate of pay payable for a 
     position at GS-15 of the General Schedule.
       ``(b) Administrative Provisions.--The Executive Director 
     and staff of the Commission may be appointed without regard 
     to the provisions of title 5, United States Code, governing 
     appointments in the competitive service, and except as 
     provided in subsection (a), may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     such title relating to classification and General Schedule 
     pay rates, except that the Executive Director so appointed 
     may not receive pay in excess of the annual rate of basic pay 
     payable for a position at ES-1 of the Senior Executive Pay 
     Schedule under section 5832 of title 5, United States Code.
       ``(c) Detail of Additional Personnel.--Upon request to the 
     Chairperson, the head of any Federal department or agency may 
     detail any of the personnel of such agency to the Commission 
     to assist the Commission in carrying out its duties under 
     this title without regard to section 3341 of title 5, United 
     States Code.''.
       (e) Powers of the Commission.--Section 405 of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 631 note) is 
     amended--
       (1) by striking ``Council'' each place it appears and 
     inserting ``Commission''; and
       (2) by adding at the end the following new subsection:
       ``(f) Cooperation with Private Entities.--
       ``(1) In general.--Subject to the requirements of paragraph 
     (2), the Commission may carry out its duties under section 
     402 through cooperation with private nonprofit and for-profit 
     entities.
       ``(2) Restriction.--If the Commission cooperates with 
     private entities pursuant to paragraph (1), the Commission 
     shall ensure that--
       ``(A) the Commission receives appropriate recognition and 
     publicity;
       ``(B) the cooperation does not constitute or imply an 
     endorsement by the Commission of the products and services of 
     the cosponsor; and
       ``(C) the Commission avoids unnecessary promotion of the 
     products and services of the cosponsor and minimizes 
     utilization of any 1 cosponsor in a marketing area.''.
       (f) Reports.--Section 406 of the Women's Business Ownership 
     Act of 1988 (15 U.S.C. 631 note) is amended--
       (1) by striking ``Council'' each place it appears and 
     inserting ``Commission'';
       (2) by striking ``December 31, 1989'' and inserting ``not 
     later than 1 year after the date of enactment of the Small 
     Business Administration Reauthorization and Amendment Act of 
     1994''; and
       (3) by striking ``based upon its reviews conducted under 
     section 402''.
       (g) Authorization.--Section 407 of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 631 note) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--There are authorized to be appropriated 
     to carry out this title--
       ``(1) $500,000 in fiscal year 1995;
       ``(2) $500,000 is fiscal year 1996; and
       ``(3) $100,000 in fiscal year 1997.''; and
       (2) by striking subsection (c).
       (h) Transition Reimbursement.--In order to facilitate the 
     transition from the National Women's Business Council, 
     established by title IV of the Women's Business Ownership Act 
     of 1988, to the National Commission on Women in Business 
     established by this section, the National Commission on Women 
     in Business may, during the 30-day period beginning on the 
     date on which the Chairperson of the National Commission on 
     Women in Business is appointed pursuant to section 413 of 
     this Act, reimburse the costs and salaries, where 
     appropriate, of the Chairperson, Executive Director, and 
     staff of the National Women's Business Council for transition 
     activities .
       (i) Sunset.--The authority of the National Commission on 
     Women in Business established under title IV of the Women's 
     Business Ownership Act of 1988, as amended by this section, 
     shall terminate on November 30, 1996.
          TITLE V--RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Small Business Prepayment 
     Penalty Relief Act of 1994''.

     SEC. 502. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.

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

     ``SEC. 508. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.

       ``(a) In General.--
       ``(1) Prepayment authorized.--Subject to the requirements 
     set forth in subsection (b), an issuer of a debenture 
     purchased by the Federal Financing Bank and guaranteed by the 
     Administration under section 503 may, at the election of the 
     borrower whose loan secures such debenture and with the 
     approval of the Administration, prepay such debenture in 
     accordance with the provisions of this section.
       ``(2) Procedure.--
       ``(A) In general.--In making a prepayment under paragraph 
     (1)--
       ``(i) the borrower shall pay to the Federal Financing Bank 
     an amount that is equal to the sum of the unpaid principal 
     balance due on the debenture as of the date of the prepayment 
     (plus accrued interest at the coupon rate on the debenture) 
     and the amount of the repurchase premium described in 
     subparagraph (B); and
       ``(ii) the Administration shall pay to the Federal 
     Financing Bank the difference between the repurchase premium 
     paid by the borrower under this subsection and the repurchase 
     premium that the Federal Financing Bank would otherwise have 
     received.
       ``(B) Repurchase premium.--
       ``(i) In general.--For purposes of subparagraph (A)(i), the 
     repurchase premium is the amount equal to the product of--

       ``(I) the unpaid principal balance due on the debenture on 
     the date of prepayment; and
       ``(II) the applicable percentage rate, as determined in 
     accordance clause (ii).

       ``(ii) Applicable percentage rate.--For purposes of clause 
     (i)(II), the applicable percentage rate means--

       ``(I) with respect to a 10-year term loan, 9.5 percent;
       ``(II) with respect to a 15-year term loan, 9.5 percent;
       ``(III) with respect to a 20-year term loan, 10.5 percent; 
     and
       ``(IV) with respect to a 25-year term loan, 11.5 percent.

       ``(b) Requirements.--For purposes of subsection (a), the 
     requirements of this subsection are that--
       ``(1) the debenture is outstanding and neither the loan 
     that secures the debenture nor the debenture is in default on 
     the date on which the prepayment is made;
       ``(2) State, local, or personal funds, or the proceeds of a 
     refinancing in accordance with subsection (d) of this section 
     under the programs authorized by sections 504 and 505, are 
     used to prepay the debenture; and
       ``(3) the issuer certifies that the benefits, net of fees 
     and expenses authorized herein, associated with prepayment of 
     the debenture are entirely passed through to the borrower.
       ``(c) No Prepayment Fees or Penalties.--No fees or 
     penalties other than those specified in this section may be 
     imposed on the issuer, the borrower, the Administration, or 
     any fund or account administered by the Administration as the 
     result of a prepayment under this section.
       ``(d) Refinancing Limitations.--
       ``(1) In general.--The refinancing of a debenture under 
     sections 504 and 505, in accordance with subsection (b)(2) of 
     this section--
       ``(A) shall not exceed the amount necessary to prepay 
     existing debentures, including all costs associated with the 
     refinancing and any applicable prepayment penalty or 
     repurchase premium; and
       ``(B) shall be subject to the provisions of sections 504 
     and 505 and the rules and regulations promulgated thereunder, 
     including rules and regulations governing payment of 
     authorized expenses, commissions, fees, and discounts to 
     brokers and dealers in trust certificates issued pursuant to 
     section 505.
       ``(2) Job creation.--An applicant for refinancing under 
     section 504 of a loan made pursuant to section 503 shall not 
     be required to demonstrate that a requisite number of jobs 
     will be created with the proceeds of a refinancing.
       ``(3) Loan processing fee.--To cover the cost of loan 
     packaging, processing, and other administrative functions, a 
     development company that provides refinancing under 
     subsection (b)(2) may impose a loan processing fee, not to 
     exceed 0.5 percent of the principal amount of the loan.
       ``(e) Definitions.--For purposes of this section--
       ``(1) the term `issuer' means the qualified State or local 
     development company that issued a debenture pursuant to 
     section 503, which has been purchased by the Federal 
     Financing Bank; and
       ``(2) the term `borrower' means a small business concern 
     whose loan secures a debenture issued pursuant to section 
     503.''.
       (b) Regulations.--Not later than 30 days after the date of 
     enactment of this Act, the Administration shall promulgate 
     such regulations as may be necessary to carry out this 
     section, including regulations establishing a deadline for 
     receipt of applications for prepayment and refinancing under 
     title V of the Small Business Investment Act of 1958.
       (c) Authorization.--There are authorized to be appropriated 
     such sums as may be necessary to carry out this section.
                   TITLE VI--MISCELLANEOUS AMENDMENTS

     SEC. 601. CONSOLIDATION OF FUNDING ACCOUNTS.

       (a) In General.--Section 4(c) of the Small Business Act (15 
     U.S.C. 633(c)) is amended by striking ``(c)(1) There'' and 
     all that follows through paragraph (4) and inserting the 
     following:
       ``(c) Loan Liquidation Fund.--
       ``(1) In general.--
       ``(A) Establishment.--There is hereby established in the 
     United States Treasury a fund to be known as the Loan 
     Liquidation Fund (hereafter in this subsection referred to as 
     the `Fund').
       ``(B) Amounts contained in fund.--All amounts received by 
     the Administration prior to October 1, 1991, from the 
     repayment of loans and debentures, payments of interest, and 
     other receipts arising out of transactions entered into by 
     the Administration pursuant to section 5(e), 5(g), 7(a), 
     7(b), 7(c)(2), 7(e), 7(h), 7(l), 7(m), or 8(a) of this Act, 
     or title III, IV, or V of the Small Business Investment Act 
     of 1958, shall be paid into the Fund. Balances existing in 
     the revolving funds on or after the effective date of this 
     paragraph shall be transferred to the Fund on such date.
       ``(C) Operating expenses.--The Fund shall have available, 
     without fiscal year limitation, such funds as may be 
     necessary to finance the operational needs of the Fund.
       ``(2) Annual status report.--As soon as practicable after 
     the end of each fiscal year, the Administration shall submit 
     to the Committees on Small Business and Appropriations of the 
     Senate and the House of Representatives a complete report on 
     the status of the Fund.''.
       (b) Interest Payments to Treasury.--Section 4(c) of the 
     Small Business Act (15 U.S.C. 633(c)) is amended--
       (1) by redesignating paragraph (5) as paragraph (3); and
       (2) in paragraph (3)(B), as redesignated, by striking 
     clause (ii) and inserting the following:
       ``(ii) Upon the expiration of each fiscal year, the 
     Administration shall pay into the miscellaneous receipts of 
     the United States Treasury the actual interest the 
     Administration has collected during the preceding fiscal year 
     on all financings made under the authority of this Act.''.

     SEC. 602. IMPOSITION OF FEES.

       Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) 
     is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following new paragraphs:
       ``(12) impose, retain, and use only those fees which are 
     specifically authorized by law or which are in effect on 
     September 30, 1994, and in the amounts and at the rates in 
     effect on such date, except that the Administrator may, 
     subject to approval in appropriations Acts, impose, retain, 
     and utilize, additional fees--
       ``(A) not to exceed $300 for each loan servicing action 
     requested after disbursement of the loan, including any 
     substitution of collateral, loan assumption, release or 
     substitution of a guarantor, reamortization, or similar 
     action; and
       ``(B) to recover the direct, incremental cost involved in 
     the production and dissemination of compilations of 
     information produced by the Administration under the 
     authority of the Small Business Act and the Small Business 
     Investment Act of 1958; and
       ``(13) collect, retain and utilize, subject to approval in 
     appropriations Acts, any amounts collected by fiscal transfer 
     agents and not used by such agent as payment of the cost of 
     loan pooling or debenture servicing operations, except that 
     amounts collected under this paragraph shall be utilized 
     solely to facilitate the administration of the program that 
     generated the excess amounts.''.

     SEC. 603. JOB CREATION AND COMMUNITY BENEFIT.

       Section 7(a)(21) of the Small Business Act (15 U.S.C. 
     636(a)(21)) is amended by adding at the end the following new 
     subparagraph:
       ``(E) Job creation and community benefit.--In providing 
     assistance under this paragraph, the Administration shall 
     develop procedures to ensure, to the maximum extent 
     practicable, that such assistance is used for projects that--
       ``(i) have the greatest potential for--

       ``(I) creating new jobs for individuals whose employment is 
     involuntarily terminated due to reductions in Federal defense 
     expenditures; or
       ``(II) preventing the loss of jobs by employees of small 
     business concerns described in subparagraph (A)(i); and

       ``(ii) have substantial potential for stimulating new 
     economic activity in communities most affected by reductions 
     in Federal defense expenditures.''.

     SEC. 604. MICROLOAN PROGRAM AMENDMENTS.

       Section 7(m)(9)(B) of the Small Business Act (15 U.S.C. 
     636(m)(9)(B)) is amended--
       (1) by inserting ``and loan guarantees'' after ``for 
     loans''; and
       (2) by inserting after ``experienced microlending 
     organizations'' the following: ``and national and regional 
     nonprofit organizations that have demonstrated experience in 
     providing training support for microenterprise development 
     and financing.''.

     SEC. 605. TECHNICAL CLARIFICATION.

       (a) Defense Conversion.--Section 7(a)(21)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(21)(A)) is amended by striking 
     ``under the'' and inserting ``on a guaranteed basis under 
     the''.
       (b) Additional Technical Clarification.--Section 204 of 
     Public Law 94-305 (15 U.S.C. 634d) is amended by striking 
     ``section 202'' and inserting ``this title''.

     SEC. 606. SECONDARY MARKET STUDY DUE DATE.

       Section 6 of the Small Business Credit Enhancement Act of 
     1993 (15 U.S.C. 634 note) is amended by striking ``16 months 
     after the date of enactment'' and inserting ``November 1, 
     1994''.

     SEC. 607. STUDY AND DATA BASE: GUARANTEED BUSINESS LOAN 
                   PROGRAM AND DEVELOPMENT COMPANY PROGRAM.

       (a) Study Authorized.--The Administration shall conduct a 
     study of--
       (1) the Guaranteed Business Loan program under section 7(a) 
     of the Small Business Act; and
       (2) the Development Company program under sections 502, 
     503, and 504 of the Small Business Investment Act of 1958.
       (b) Evaluation.--After conducting the study under 
     subsection (a), the Administration shall evaluate the 
     performance of the programs described in paragraphs (1) and 
     (2) of subsection (a) on an annual and aggregated basis 
     during the most recent 4-year period for which data are 
     available. Such evaluation shall focus on the following 
     factors:
       (1) The number, dollar amount, and average size of the 
     loans or financings under each program.
       (2) The number, dollar amount, and average size of the 
     loans or financings made to woman-owned and minority-owned 
     businesses under each program.
       (3) The geographic distribution of the loans or financings 
     under each program.
       (4) The jobs created or maintained attributable to the 
     loans or financings under each program.
       (5) The number, dollar amount, and average size of the 
     loans or financings on which borrowers defaulted under each 
     program.
       (6) The amounts recovered by the Administration after 
     default, foreclosure, or otherwise under each program.
       (7) The number of companies which are no longer in business 
     despite receiving the loans or financings under each program.
       (8) The taxes paid by businesses which received the loans 
     or financings under each program.
       (9) Such other information as the Administration determines 
     to be appropriate for a complete evaluation of each program.
       (c) Contracting With Independent Entities.--In carrying out 
     subsections (a) and (b), the Administration may contract with 
     an independent entity or entities--
       (1) to conduct the study pursuant to subsection (a); and
       (2) to develop a database of information to enable the 
     Administration to maintain and access, on an ongoing basis, 
     current information relating to the factors set forth in 
     subsection (b).
       (d) Date.--The study authorized by subsection (a) shall be 
     completed not later than September 30, 1995.

     SEC. 608. SBIR VENDORS.

       Section 9(q)(2) of the Small Business Act (15 U.S.C. 
     638(q)(2)) is amended to read as follows:
       ``(2) Vendor selection.--Each agency may select a vendor to 
     assist small business concerns to meet the goals listed in 
     paragraph (1) for a term not to exceed 3 years. Such 
     selection shall be competitive and shall utilize merit-based 
     criteria.''.

     SEC. 609. PROGRAM EXTENSION.

       Section 602(e) of the Business Opportunity Development 
     Reform Act of 1988 (15 U.S.C. 637 note) is amended by 
     striking ``September 30, 1994'', and inserting ``September 
     30, 1995''.

     SEC. 610. PROHIBITION ON THE USE OF FUNDS FOR INDIVIDUALS NOT 
                   LAWFULLY WITHIN THE UNITED STATES.

       Section 2 of the Small Business Act (15 U.S.C. 631) is 
     amended by adding at the end the following new subsection:
       ``(i) Prohibition on the Use of Funds for Individuals Not 
     Lawfully Within the United States.--None of the funds made 
     available pursuant to this Act 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.''.

     SEC. 611. OFFICE OF ADVOCACY EMPLOYEES.

       Section 204 of Public Law 94-305 (15 U.S.C. 634d) is 
     amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``after consultation with and subject to the approval of the 
     Administrator,''; and
       (2) in paragraph (1), by striking ``ten'' and inserting 
     ``14''.

     SEC. 612. PROHIBITION ON THE PROVISION OF ASSISTANCE.

       Section 4 of the Small Business Act (15 U.S.C. 633) is 
     amended by adding at the end the following new subsection:
       ``(e) Prohibition on the Provision of Assistance.--
     Notwithstanding any other provision of law, the 
     Administration is prohibited from providing any financial or 
     other assistance to any business concern or other person 
     engaged in the production or distribution of any product or 
     service that is determined to be obscene.''.

     SEC. 613. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT 
                   OBLIGATIONS.

       Section 4 of the Small Business Act (15 U.S.C. 633), as 
     amended by section 612, is amended by adding at the end the 
     following new subsection:
       ``(f) Certification of Compliance With Child Support 
     Obligations.--
       ``(1) In general.--Each applicant for financial assistance 
     under this Act, including an applicant for a direct loan or a 
     loan guarantee, shall certify that the applicant is not in 
     violation of the terms of any--
       ``(A) administrative order;
       ``(B) court order; or
       ``(C) repayment agreement entered into between the 
     applicant and the custodial parent or State agency providing 
     child support enforcement services,

     that requires the applicant to pay child support, as such 
     term is defined in section 462(b) of the Social Security Act.
       ``(2) Enforcement.--Not later than 6 months after the date 
     of enactment of this subsection, the Administration shall 
     issue such regulations as may be necessary to enforce 
     compliance the requirements of this subsection.''.


                     motion offered by mr. lafalce

  Mr. LaFALCE. Mr. Speaker, I offer a motion.
  The Clerk read as follows:
  Mr. LaFALCE moves to strike all after the enacting clause of S. 2060 
and insert in lieu thereof the text of H.R. 4801 as passed by the 
House, as follows:

                                S. 2060

     That this Act may be cited as the ``Small Business 
     Reauthorization and Amendment Act of 1994''.
                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by striking all of such section after subsection 
     (k), as added by section 115(a) of the Small Business Credit 
     and Business Opportunity Enhancement Act of 1992, and by 
     inserting in lieu thereof the following:
       ``(l) The following program levels are authorized for 
     fiscal year 1995:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $142,000,000 in direct 
     and immediate participation loans; and of such sum, the 
     Administration is authorized to make $12,000,000 in loans as 
     provided in section 7(a)(10) and $130,000,000 in loans as 
     provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $11,535,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $9,315,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $2,200,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958; and
       ``(C) $20,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $23,000,000 in purchases of preferred securities;
       ``(B) $244,000,000 in guarantees of debentures, of which 
     $44,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $400,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $600,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) For the Service Corps of Retired Executives program 
     authorized by section 8(b)(1) of this Act, the Administration 
     is authorized to make grants or enter cooperative agreements 
     not to exceed $3,500,000, and for the small business 
     institute program authorized by section 8(b)(1) of this Act, 
     the Administration is authorized to make grants or enter 
     cooperative agreements not to exceed $3,000,000.
       ``(m) There are authorized to be appropriated to the 
     Administration for fiscal year 1995 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.
       ``(n) The following program levels are authorized for 
     fiscal year 1996:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $198,000,000 in direct 
     and immediate participation loans; and of such sum the 
     Administration is authorized to make $13,000,000 in loans as 
     provided in section 7(a)(10) and $185,000,000 in loans as 
     provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $24,610,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $10,935,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $2,500,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958; and
       ``(C) $80,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $24,000,000 in purchases of preferred securities;
       ``(B) $256,000,000 in guarantees of debentures, of which 
     $46,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $650,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $600,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) For the Service Corps of Retired Executives program 
     authorized by section 8(b)(1) of this Act, the Administration 
     is authorized to make grants or enter cooperative agreements 
     not to exceed $3,675,000, and for the small business 
     institute program authorized by section 8(b)(1) of this Act, 
     the Administration is authorized to make grants or enter 
     cooperative agreements not to exceed $3,150,000.
       ``(o) There are authorized to be appropriated to the 
     Administration for fiscal year 1996 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.
       ``(p) The following program levels are authorized for 
     fiscal year 1997:
       ``(1) For the programs authorized by this Act, the 
     Administration is authorized to make $264,000,000 in direct 
     and immediate participation loans; and of such sum the 
     Administration is authorized to make $14,000,000 in loans as 
     provided in section 7(a)(10) and $250,000,000 in loans as 
     provided in section 7(m).
       ``(2) For the programs authorized by this Act, the 
     Administration is authorized to make $17,215,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(A) $14,175,000,000 in general business loans as provided 
     in section 7(a);
       ``(B) $3,000,000,000 in financings as provided in section 
     7(a)(13) and section 504 of the Small Business Investment Act 
     of 1958; and
       ``(C) $40,000,000 in loans as provided in section 7(m).
       ``(3) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make--
       ``(A) $25,000,000 in purchases of preferred securities;
       ``(B) $268,000,000 in guarantees of debentures, of which 
     $48,000,000 is authorized in guarantees of debentures from 
     companies operating pursuant to section 301(d) of such Act; 
     and
       ``(C) $900,000,000 in guarantees of participating 
     securities.
       ``(4) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $1,800,000,000, of which not more than $600,000,000 may be in 
     bonds approved pursuant to the provisions of section 
     411(a)(3) of such Act.
       ``(5) For the Service Corps of Retired Executives program 
     authorized by section 8(b)(1) of this Act, the Administration 
     is authorized to make grants or enter cooperative agreements 
     not to exceed $3,860,000, and for the small business 
     institute program authorized by section 8(b)(1) of this Act, 
     the Administration is authorized to make grants or enter 
     cooperative agreements not to exceed $3,310,000.
       ``(q) There are authorized to be appropriated to the 
     Administration for fiscal year 1997 such sums as may be 
     necessary to carry out the provisions of this Act, including 
     administrative expenses and necessary loan capital for 
     disaster loans pursuant to section 7(b), and to carry out the 
     provisions of the Small Business Investment Act of 1958, 
     including salaries and expenses of the Administration.''.
                TITLE II--FINANCIAL ASSISTANCE PROGRAMS

     SEC. 201. MICROLOAN FINANCING PILOT.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended by adding the following new paragraph at the end:
       ``(12) Deferred participation loan pilot.--During fiscal 
     years 1995 through 1997, on a pilot basis, in lieu of making 
     direct loans to intermediaries as authorized in paragraph 
     (1)(B), the Administration may participate on a deferred 
     basis of up to 100 percent on loans made to intermediaries by 
     a for-profit or non-profit entity or by alliances of such 
     entities subject to the following conditions:
       ``(A) Number of loans.--The Administration shall not 
     participate in providing financing on a deferred basis to 
     more than ten intermediaries in urban areas per year and to 
     more than ten intermediaries in rural areas per year.
       ``(B) Term of loans.--The term of such loans shall be ten 
     years. During the first five years of the loan, the 
     intermediary shall be required to pay interest only; and 
     during the second five years of the loan, the intermediary 
     shall be required to fully amortize principal and interest 
     payments.
       ``(C) Interest rate.--The interest rate on such loans shall 
     be the rate specified by paragraph (3)(F) for direct 
     loans.''.

     SEC. 202. MICROLOAN STATE LIMITATION.

       Section 7(m)(7)(C) of the Small Business Act (15 U.S.C. 
     636(m)(7)(C)) is repealed.

     SEC. 203. LIMIT ON PARTICIPATION.

       Section 7(m)(7)(A) of the Small Business Act (15 U.S.C. 
     636(m)(7)(A)) is amended to read as follows:
       ``(A) Number of participants.--During this demonstration 
     program, the Administration is authorized to fund, on a 
     competitive basis, not more than 240 microloan programs.''.

     SEC. 204. EQUITABLE DISTRIBUTION.

       Section 7(m)(8) of the Small Business Act (15 U.S.C. 
     636(m)(8)) is amended to read as follows:
       ``(8) Equitable distribution of intermediaries.--In 
     approving microloan program applicants, the Administration 
     shall select participation by such intermediaries as will 
     ensure appropriate availability of loans to small businesses 
     located in urban areas and in rural areas.''.

     SEC. 205. AMOUNT OF LOANS TO INTERMEDIARIES.

       Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
     636(m)(3)(C)) is amended to read as follows:
       ``(C) Loan limits.--In determining the amount of funding 
     which the Administration may provide to one intermediary, it 
     shall take into consideration the small business population 
     in the area served by the intermediary.''.

     SEC. 206. LOANS TO EXPORTERS.

       Section 7(a)(14)(A) of the Small Business Act (15 U.S.C. 
     636(a)(14)(A)) is amended to read as follows:
       ``(A) The Administration may provide extensions, standby 
     letters of credit, revolving lines of credit for export 
     purposes, and other financing to enable small business 
     concerns, including small business export trading companies 
     and small business export management companies, to develop 
     foreign markets. A bank or participating lending institution 
     may establish the rate of interest on such financings as may 
     be legal and reasonable.''.

     SEC. 207. WORKING CAPITAL INTERNATIONAL TRADE LOANS.

       Section 7(a)(3)(B) of the Small Business Act (15 U.S.C. 
     636(a)(3)(B)) is amended to read as follows:
       ``(B) if the total amount outstanding and committed (on a 
     deferred basis) solely for the purposes provided in paragraph 
     (16) to the borrower from the business loan and investment 
     fund established by this Act would exceed $1,250,000, of 
     which not more than $750,000 may be used for working capital, 
     supplies, or financings under section 7(a)(14) for export 
     purposes; and''.

     SEC. 208. GUARANTEES ON INTERNATIONAL TRADE LOANS.

       Section 7(a)(2)(B)(iv) of the Small Business Act (15 U.S.C. 
     636(a)(2)(B)(iv)) is amended to read as follows:
       ``(iv) not less than 85 percent nor more than 90 percent of 
     the financing outstanding at the time of disbursement if such 
     financing is a loan under paragraph (14) or under paragraph 
     (16).''.

     SEC. 209. ACCREDITED LENDERS PROGRAM.

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

     ``SEC. 507. ACCREDITED LENDERS PROGRAM.

       ``(a) The Administration is authorized to establish an 
     Accredited Lenders Program for qualified State and local 
     development companies which meet the requirements of 
     subsection (b).
       ``(b) The Administration may designate a qualified State or 
     local development company as an accredited lender if such 
     company--
       ``(1) has been an active participant in the development 
     company program for at least the last 12 months;
       ``(2) has well-trained, qualified personnel who are 
     knowledgeable in the Administration's lending policies and 
     procedures for the development company program;
       ``(3) has the ability to process, close, and service 
     financing for plant and equipment under section 502 of this 
     Act;
       ``(4) has a loss rate on its debentures that is acceptable 
     to the Administration;
       ``(5) has a history of submitting to the Administration 
     complete and accurate debenture guaranty application 
     packages; and
       ``(6) has demonstrated the ability to serve small business 
     credit needs for financing plant and equipment as provided in 
     section 502 of this Act.
       ``(c) The Administration shall expedite the processing of a 
     loan application or servicing action submitted by a qualified 
     State or local development company that has been designated 
     as an accredited lender in accordance with subsection (b).
       ``(d) The designation of a qualified State or local 
     development company as an accredited lender may be suspended 
     or revoked if the Administration determines that the 
     development company has not continued to meet the criteria 
     for eligibility under subsection (b) or that the development 
     company has failed to adhere to the Administration's rules 
     and regulations or is violating any other applicable 
     provision of law. Suspension or revocation shall not affect 
     any outstanding debenture guarantee.
       ``(e) For purposes of this section, the term `qualified 
     State or local development company' has the same meaning as 
     in section 503(e).''.
       (b) The Administration shall promulgate regulations to 
     carry out this section within 90 days of the date of the 
     enactment of this Act.
       (c) The Administration shall report to the Small Business 
     Committee of the United States Senate and to the Small 
     Business Committee of the United States House of 
     Representatives within one year, and annually thereafter, on 
     the implementation of this section, specifically including 
     data on the number of development companies designated as 
     accredited lenders, their debenture guarantee volume, their 
     loss rates, and the average processing time on their 
     guarantee applications, along with such other information as 
     the Administration deems appropriate.

     SEC. 210. PREMIER LENDERS PROGRAM.

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

     ``SEC. 508. PREMIER LENDERS PROGRAM.

       ``(a) The Administration is authorized to establish a 
     Premier Lenders Program for certified development companies 
     which meet the requirements of subsection (b).
       ``(b) The Administration may designate a participant in the 
     accredited lenders program as a premier lender if such 
     company--
       ``(1) has been an active participant in the accredited 
     lenders program for at least the last 12 months: Provided, 
     That prior to January 1, 1996, the Administration may waive 
     this provision if the applicant is qualified to participate 
     in the accredited lenders program;
       ``(2) has a history of submitting to the Administration 
     adequately analyzed debenture guarantee application packages; 
     and
       ``(3) agrees to assume and to reimburse the Administration 
     for 5 percent of any loss sustained by the Administration on 
     account of default by the certified development company in 
     the payment of principal or interest on a debenture issued by 
     such company and guaranteed by the Administration under this 
     section.
       ``(c) Upon approval of an applicant as a premier lender, 
     the certified development company shall establish a loss 
     reserve in an amount equal to the anticipated losses to the 
     certified development company pursuant to subsection (b)(3) 
     based upon the historic loss rate on debentures issued by 
     such company, or 3 percent of the aggregate principal amount 
     of debentures issued by such company and guaranteed by the 
     Administration under this section, whichever is greater. The 
     loss reserve shall be comprised of segregated assets of the 
     development company which shall be securitized in favor of 
     the Administration or of such unqualified letters of credit 
     or indemnity agreements from a third party as the 
     Administration deems appropriate.
       ``(d) Upon designation and qualification of a company as a 
     premier lender, and subject to such terms and conditions as 
     the Administration may determine, and notwithstanding the 
     provisions of section 503(b)(6), the Administration may 
     permit a premier lender to approve loans to be funded with 
     the proceeds of and to authorize the guarantee of a debenture 
     issued by such company. The approval by the premier lender 
     shall be subject to the final approval as to eligibility of 
     any such guarantee by the Administration pursuant to 
     subsection 503(a) of this Act, but such final approval shall 
     not include decisions by the company involving 
     creditworthiness, loan closing, or compliance with legal 
     requirements imposed by law or regulation.
       ``(e) The designation of a qualified State or local 
     development company as a premier lender may be suspended or 
     revoked if the Administration determines that the company--
       ``(1) has not continued to meet the criteria for 
     eligibility under subsection (b);
       ``(2) has not established or maintained the loss reserve 
     required under subsection (c); or
       ``(3) is failing to adhere to the Administration's rules 
     and regulations or is violating any other applicable 
     provision of law.
       ``(f) Suspension or revocation shall not affect any 
     outstanding debenture guarantee.''.
       (b) The Administration shall promulgate such regulations to 
     carry out this section within 180 days of the date of the 
     enactment of this Act.
       (c) The Administration shall report to the Small Business 
     Committee of the United States Senate and to the Small 
     Business Committee of the United States House of 
     Representatives within one year, and annually thereafter, on 
     the implementation of this section, specifically including 
     data on the number of development companies designated as 
     premier lenders, their debenture guarantee volume, and the 
     loss rate for premier lenders as compared to accredited and 
     other lenders, along with such other information as the 
     Administration deems appropriate.
       (d) Section 508 of the Small Business Investment Act of 
     1958 is repealed on October 1, 1999.
       (e) The table of contents contained in section 101 of the 
     Small Business Investment Act of 1958 is amended by adding at 
     the end of the matter relating to title V the following:

``Sec. 507. Accredited lenders program.
``Sec. 508. Premier lenders program.''.

     SEC. 211. SSBIC ADVISORY COUNCIL.

       (a) Council Established.--Not later than 90 days after the 
     date of the enactment of this Act, the Administrator of the 
     Small Business Administration shall appoint an Investment 
     Advisory Council for the Specialized Small Business 
     Investment Company Program. The Council shall consist of not 
     less than 12 individuals from the private sector, including 
     individuals--
       (1) who have experience in providing venture capital to 
     small business, particularly minority small business;
       (2) who are current participants in the Specialized Small 
     Business Investment Company Program;
       (3) who are former participants in the Specialized Small 
     Business Investment Company Program; or
       (4) who are or who represent small business concerns.
       (b) Chairman and Staff.--The Administrator shall designate 
     one of the members of the Council as chairperson. The 
     Investment Division of the Small Business Administration 
     shall provide such staff, technical support, and information 
     as shall be deemed appropriate. Council members shall be 
     deemed to be an advisory board pursuant to section 8(b)(13) 
     of the Small Business Act for purposes of reimbursement of 
     expenses.
       (C) Report.--Within six months of the date of appointment, 
     the Council shall make a written report with findings and 
     recommendations on the venture capital needs, including debt 
     and equity, of socially or economically disadvantaged small 
     business concerns and any needed Federal incentives to assist 
     the private sector to meet such needs. The report shall 
     specifically address--
       (1) the history of the Specialized Small Business 
     Investment Company program in providing assistance to such 
     concerns and the impact of such assistance on the economy;
       (2) the appropriateness and ability of the Specialized 
     Small Business Investment Company Program to meet these 
     needs;
       (3) the problems affecting the Specialized Small Business 
     Investment Company Program; and
       (4) the effectiveness of the Specialized Small Business 
     Investment Company Program and its administration by the 
     Small Business Administration.

     SEC. 212. PARTICIPATING SECURITIES FOR SMALLER SBICS.

       Section 303(g) of the Small Business Investment Act of 1958 
     (15 U.S.C. 683(g)) is amended by adding the following new 
     paragraph at the end:
       ``(13) Of the amount of the annual program level of 
     participating securities approved in Appropriations Acts, 50 
     percent shall be reserved for funding Small Business 
     Investment Companies with private capital of less than 
     $20,000,000; except that during the last quarter of each 
     fiscal year, the Administrator may, if he determines that 
     there is a lack of qualified applicants with private capital 
     under such amount, utilize all or any part of the securities 
     so reserved.''.

     SEC. 213. REPORT ON SBIC PROGRAM.

       The Small Business Administration shall provide the 
     Committee on Small Business of the House of Representatives 
     and Senate with a comprehensive report on the status and 
     disposition of all Small Business Investment Companies, 
     active or in liquidation, and a complete accounting of the 
     assets in and the basis of their portfolios, the projected 
     and actual loss rates for all portfolios in liquidation or 
     active, and a detailed accounting of valuation of the SBIC 
     program's investments. This report shall be delivered to the 
     respective Committees on Small Business no later than April 
     15, 1995.
             TITLE III--SIZE STANDARDS AND BOND GUARANTEES

     SEC. 301. COMPETITIVE DEMONSTRATION PROJECT SIZE STANDARDS.

       Section 732 of the Business Opportunity Development Reform 
     Act of 1988 (Public Law 100-656) is amended by repealing the 
     second sentence of such section.

     SEC. 302. SIZE STANDARD CRITERIA.

       Section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)) is amended to read as follows:
       ``(2) In addition to the criteria specified in paragraph 
     (1), 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 Act or any 
     other Act. Such standards may utilize number of employees, 
     dollar volume of business, net worth, net income, or a 
     combination thereof. Unless specifically authorized by 
     statute, no Federal department or agency may prescribe a size 
     standard for categorizing a business concern as a small 
     business concern, unless such proposed size standard--
       ``(A) is being proposed after an opportunity for public 
     notice and comment;
       ``(B) provides for determining--
       ``(i) the size of a manufacturing concern as measured by 
     its average employment based upon employment during each of 
     the concern's pay periods for the preceding twelve calendar 
     months;
       ``(ii) the size of a concern providing services on the 
     basis of the annual average gross receipts of the concern 
     over a period of not less than 3 years; and
       ``(iii) the size of other concerns on the basis of data 
     over a period of not less than 3 years; and
       ``(C) is approved by the Administrator if it is not being 
     proposed by the Small Business Administration.''.

     SEC. 303. SUNSET ON PREFERRED SURETY BOND GUARANTEE PROGRAM.

       Section 207 of the Small Business Administration 
     Reauthorization and Amendment Act of 1988 (Public Law 100-
     590) is amended by striking ``September 30, 1994'' and by 
     inserting in lieu thereof ``September 30, 1997''.

     SEC. 304. VERY SMALL BUSINESS CONCERNS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by redesignating section 30 as section 41 and by inserting 
     after section 29, as redesignated by section 606 of this Act, 
     the following:

     ``SEC. 30. PILOT PROGRAM FOR VERY SMALL BUSINESS CONCERNS.

       ``(a) Establishment.--The Administration shall establish 
     and carry out a pilot program in accordance with the 
     requirements of this section to provide procurement 
     opportunities to very small business concerns.
       ``(b) Subcontracting of Procurement Contracts.--
       ``(1) In general.--In carrying out the program, the 
     Administration is authorized to enter into procurement 
     contracts with the United States Government and to arrange 
     for the performance of such contracts through the award of 
     subcontracts to very small business concerns.
       ``(2) Terms and conditions.--The authority of the 
     Administration under paragraph (1) shall be subject to the 
     same terms and conditions as apply to the authority of the 
     Administration under section 8(a), except that--
       ``(A) the Administration may make such modifications to 
     such terms and conditions as the Administration determines 
     necessary; and
       ``(B) all contract opportunities offered for award under 
     the program shall be awarded on the basis of competition 
     restricted to eligible program participants.
       ``(c) Program Participation.--Very small business concerns 
     participating in the program shall be subject to the same 
     terms and conditions for program participation as apply to 
     program participants under sections 7(j) and 8(a); except 
     that--
       ``(1) the Administration may make such modifications to 
     such terms and conditions as the Administration determines 
     necessary; and
       ``(2) eligibility shall be determined on the basis of 
     qualifying as a very small business concern as defined in 
     subsection (g), in lieu of the requirements contained in 
     paragraphs (4), (5), and (6) of section 8(a).
       ``(d) Technical and Financial Assistance.--In order to 
     assist very small business concerns participating in the 
     program, the Administration is authorized--
       ``(1) to provide technical assistance to such concerns in 
     the same manner and to the same extent as technical 
     assistance is provided to small business concerns pursuant to 
     section 7(j); and
       ``(2) to provide pre-authorization to such concerns for the 
     purpose of receiving financial assistance under section 7(a).
       ``(e) Program Term.--The Administration shall carry out the 
     program in each of fiscal years 1995, 1996, and 1997.
       ``(f) Report to Congress.--On or before December 31, 1996, 
     the Administration shall transmit to Congress a report 
     containing an analysis of the results of the program, 
     together with recommendations for appropriate legislative and 
     administrative actions.
       ``(g) Definitions.--For the purposes of this section, the 
     following definitions apply:
       ``(1) Program.--The term `program' means the program 
     established pursuant to subsection (a).
       ``(2) Very small business concern.--The term `very small 
     business concern' means a small business concern that--
       ``(A) has 10 employees or less; or
       ``(B) has average annual receipts that total $1,000,000 or 
     less.''.
                    TITLE IV--MANAGEMENT ASSISTANCE

     SEC. 401. SUNSET ON COSPONSORED TRAINING.

       (a) The authority of the Small Business Administration to 
     cosponsor training as authorized by section 5(a) of the Small 
     Business Computer Security and Education Act of 1984 (15 
     U.S.C. 633 note) is hereby repealed September 30, 1997.
       (b) Section 7(b) of the Small Business Computer Security 
     and Education Act of 1984 (15 U.S.C. 633 note) is amended by 
     striking the second sentence.

     SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.

       Section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) is amended to read as follows:
       ``(4) The Administration shall require as a condition of 
     any grant (or amendment or modification thereof) made to an 
     applicant under this section, that a matching amount 
     (excluding any fees collected from recipients of such 
     assistance) equal to the amount of such grant be provided 
     from sources other than the Federal Government, to be 
     comprised of not less than 50 per centum cash and not more 
     than 50 per centum of indirect costs and in-kind 
     contributions: Provided, That this matching amount shall not 
     include any indirect costs or in-kind contributions derived 
     from any Federal program: Provided further, That no recipient 
     of funds under this section shall receive a grant which would 
     exceed its pro rata share of a national program based upon 
     the population to be served by the Small Business Development 
     Center as compared to the total population in the United 
     States, plus $125,000, or $200,000, whichever is greater, per 
     year. The amount of the national program shall be--
       ``(A) $70,000,000 through September 30, 1995;
       ``(B) $77,500,000 from October 1, 1995 through September 
     30, 1996; and
       ``(C) $85,000,000 beginning October 1, 1996.
     The amount of eligibility of each Small Business Development 
     Center shall be based upon the amount of the national program 
     in effect as of the date for commencement of performance of 
     the Center's grant.''.

     SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT 
                   CENTERS.

       (a) Section 21(a)(5) of the Small Business Act (15 U.S.C. 
     648(a)(5)) is amended to read as follows:
       ``(5) A Small Business Development Center may enter a 
     contract with a Federal department or agency to provide 
     specific assistance to small business concerns if the 
     contract is approved in advance by the Deputy Associate 
     Administrator of the Small Business Development Center 
     program. Approval shall be based upon a determination that 
     the contract will provide assistance to small business 
     concerns and that its performance will not hinder the Center 
     in carrying out the terms of its grant from the 
     Administration. The amount of any such contract shall not be 
     subject to the matching funds requirements of paragraph (4) 
     nor shall the amount of eligibility under such paragraph: 
     Provided, That notwithstanding any other provision of law, 
     such contracts for assistance to small business concerns 
     shall not be counted toward any Federal department or 
     agency's small business, women-owned business, or socially 
     and economically disadvantaged business contracting goal as 
     established by section 15(g) of the Small Business Act (15 
     U.S.C. 644(g)).''.
       (b) Section 21(a)(6) of the Small Business Act (15 U.S.C. 
     648(a)(6)) is amended by striking ``paragraphs (4) and (5)'' 
     and by inserting in lieu thereof ``paragraph (4)''.

     SEC. 404. CENTRAL EUROPEAN SMALL BUSINESS DEVELOPMENT.

       Section 25(i) of the Small Business Act (15 U.S.C. 652(i)) 
     is amended by striking ``and $2,000,000 for each of fiscal 
     years 1993 and 1994'' and by inserting in lieu thereof ``, 
     $2,000,000 for each of fiscal years 1993 and 1994, and 
     $1,000,000 for fiscal year 1995''.

     SEC. 405. MOBILE RESOURCE CENTER PILOT PROGRAM.

       (a) Establishment.--The Administrator of the Small Business 
     Administration may establish and carry out in each of fiscal 
     years 1995, 1996, and 1997 a mobile resource pilot program 
     (in this section referred to as the ``program'' in accordance 
     with the requirements of this section.
       (b) Mobile Resource Center Vehicles.--Under the program, 
     the Administration may use mobile resource center vehicles to 
     provide technical assistance, information, and other services 
     available from the Small Business Administration to 
     traditionally underserved populations. Two of such vehicles 
     should be utilized in rural areas and 2 of such vehicles 
     should be utilized in urban areas.
       (c) Report to Congress.--If the Administrator conducts the 
     program authorized in this section, not later than December 
     31, 1996, he shall transmit to Congress a report containing 
     the results of such program, together with recommendations 
     for appropriate legislative and administrative actions.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal year 1995 $900,000 to carry out 
     this section. Of such sums--
       (1) $800,000 may be made available for the purchase or 
     lease of mobile resource center vehicles; and
       (2) $100,000 may be made available for studies, startup 
     expenses, and other administrative expenses.
     Such sums shall remain available until expended.
        TITLE V--RELIEF FROM FFB DEBENTURE PREPAYMENT PENALTIES

     SEC. 501. CITATION.

       This title may be cited as the ``Small Business Prepayment 
     Penalty Relief Act of 1994.''.

     SEC. 502. MODIFICATION OF DEVELOPMENT COMPANY DEBENTURE 
                   INTEREST RATES.

       (a) In General.--Upon the request of the issuer and the 
     concurrence of the borrower, the Small Business 
     Administration is authorized to transfer to the Federal 
     Financing Bank such sums as may be necessary to carry out the 
     provisions of this section in order to reduce the interest 
     rate on a debenture issued by a certified development 
     company. The reduction shall be effective January 2, 1995 and 
     shall apply for the remainder of the term of the debenture.
       (b) Interest Rate Modification.--Upon receipt of such 
     payment, the Federal Financing Bank shall modify the interest 
     rate of each debenture for which the payment is made. No 
     other change shall be made in the terms and conditions of the 
     debenture, and the modification in the interest rate shall 
     not be construed as a new direct loan or a new loan 
     guarantee.
       (c) Definitions.--For the purposes of this section--
       (1) the term ``issuer'' means the issuer of a debenture 
     pursuant to section 503 of the Small Business Investment Act 
     of 1958 which has been purchased by the Federal Financing 
     Bank if the debenture is outstanding on the date of enactment 
     of this Act, and neither the loan that secures the debenture 
     nor the debenture is in default on such date; and
       (2) the term ``borrower'' means the small business concern 
     whose loan secures a debenture issued pursuant to such 
     section.
       (d) Other Rights.--A modification of the interest rate on a 
     debenture as authorized in this section shall not affect any 
     rights or options of the issuer or borrower which are 
     otherwise authorized by contract or by law.
       (e) Refinancing.--Debentures authorized by sections 504 and 
     505 of the Small Business Investment Act of 1958 may be used 
     to refinance debentures issued under section 503 of such Act 
     if the amount of the new financing is limited to such amounts 
     as are needed to repay the existing debenture, including any 
     prepayment penalty imposed by the Federal Financing Bank. Any 
     such refinancing shall be subject to all of the other 
     provisions of sections 504 and 505 of such Act and the rules 
     and regulations of the Administration promulgated thereunder, 
     including, but not limited to, rules and regulations 
     governing payment of authorized expenses and commissions, 
     fees and discounts to brokers and dealers in trust 
     certificates issued pursuant to section 505: Provided, 
     however, That no applicant for refinancing under section 504 
     of this Act need demonstrate that the requisite number of 
     jobs will be created or preserved with the proceeds of such 
     refinancing: Provided further, That a development company 
     which provides refinancing under this subsection shall be 
     limited to a loan processing fee not to exceed one-half of 
     one percent to cover the cost of packaging, processing and 
     other nonlegal staff functions.

     SEC. 503. MODIFICATION OF SMALL BUSINESS INVESTMENT COMPANY 
                   DEBENTURE INTEREST RATES.

       (a) In General.--Upon the request of the issuer, the Small 
     Business Administration is authorized to transfer to the 
     Federal Financing Bank such sums as may be necessary to carry 
     out the provisions of this section in order to reduce the 
     interest rate on a debenture issued by a Small Business 
     Investment Company under the provisions of title III of the 
     Small Business Investment Act of 1958. The reduction shall be 
     effective January 2, 1995 and shall apply for the remainder 
     of the term of the debenture.
       (b) Interest Rate Modification.--Upon receipt of such 
     payment, the Federal Financing Bank shall modify the interest 
     rate of each debenture for which the payment is made. No 
     other change shall be made in the terms and conditions of the 
     debenture, and the modification in the interest rate shall 
     not be construed as a new direct loan or a new loan 
     guarantee.
       (c) Definitions.--For the purposes of this section, the 
     term ``issuer'' means the issuer of a debenture pursuant to 
     section 303 of the Small Business Investment Act of 1958 
     which has been purchased by the Federal Financing Bank if the 
     debenture is outstanding on the date of enactment of this 
     Act, and is not in default on such date.
       (d) Other Rights.--A modification of the interest rate on a 
     debenture as authorized in this section shall not affect any 
     rights or options of the issuer which are otherwise 
     authorized by contract or by law.

     SEC. 504. MODIFICATION OF SPECIALIZED SMALL BUSINESS 
                   INVESTMENT COMPANY DEBENTURE INTEREST RATES.

       (a) Interest Rate Modification.--Upon the request of the 
     issuer, the Small Business Administration is authorized to 
     modify the interest rate on a debenture issued by a Small 
     Business Investment Company licensed under the provisions of 
     section 301(d) of the Small Business Investment Act of 1958 
     and which is held by the Administration. No debenture which 
     has been sold to a third party shall be eligible for 
     modification under this section. The reduction shall be 
     effective January 2, 1995 and shall apply for the remainder 
     of the term of the debenture. No other change shall be made 
     in the terms and conditions of the debenture, and the 
     modification in the interest rate shall not be construed as a 
     new direct loan or a new loan guarantee.
       (b) Definitions.--For the purposes of this section, the 
     term ``issuer'' means a Specialized Small Business Investment 
     Company licensed under the provisions of section 301(d) of 
     the Small Business Investment Act of 1958 which has issued a 
     debenture which has been funded by the Small Business 
     Administration, providing the debenture is outstanding on the 
     date of enactment of this Act and is not in default on such 
     date.
       (c) Other Rights.--A modification of the interest rate on a 
     debenture as authorized in this section shall not affect any 
     rights or options of the issuer which are otherwise 
     authorized by contract or by law.

     SEC. 505. INTEREST RATE REDUCTIONS.

       (a) In General.--Upon enactment of an Appropriations Act 
     providing funds to carry out the provisions of this Act and 
     limited to amounts specifically provided in advance in 
     Appropriations Acts, the Small Business Administration shall 
     evaluate the outstanding portfolio of debentures which are 
     eligible for interest rate relief under this Act. The 
     Administration shall apply the funds appropriated to carry 
     out this Act in order to reduce the highest interest rate on 
     all eligible debentures to a uniform rate.
       (b) Authorization.--There are authorized to be appropriated 
     $30 million to carry out the provisions of this Act in fiscal 
     year 1995.
            TITLE VI--DEVELOPMENT OF WOMEN-OWNED BUSINESSES

     SEC. 601. STATUS OF COUNCIL.

       Section 401 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is redesignated as section 405 of such 
     Act and, as redesignated, is amended--
       (1) in the heading by inserting ``of the council'' after 
     ``establishment''; and
       (2) by striking the period at the end and inserting the 
     following: ``which shall serve as an independent advisory 
     council to the Interagency Committee on Women's Business 
     Enterprise, to the Administrator of the Small Business 
     Administration, and to the Congress of the United States. The 
     Council, in order to carry out its function as an independent 
     advisory council to the Congress, is authorized and directed 
     to report independently of the Interagency Committee directly 
     to the Congress at such times and on such matters as it, in 
     its discretion, deems appropriate.''.

     SEC. 602. DUTIES OF NATIONAL WOMEN'S BUSINESS COUNCIL.

       Section 402 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is redesignated as section 406 of such 
     Act and, as redesignated, is amended to read as follows:

     ``SEC. 406. DUTIES OF THE COUNCIL.

       ``The Council shall meet at such times as it determines 
     necessary in order to advise and consult with the Interagency 
     Committee on Women's Business Enterprise on matters relating 
     to the activities, functions, and policies of such Committee 
     as provided in this title. The Council shall make annual 
     recommendations for consideration by the Committee. The 
     Council also shall provide reports and make such other 
     recommendations as it deems appropriate to the Committee, to 
     the Administrator of the Small Business Administration, and 
     to the Small Business Committee of the United States Senate 
     and to the Small Business Committee of the United States 
     House of Representatives.''.

     SEC. 603. MEMBERSHIP OF THE COUNCIL.

       Section 403 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note) is redesignated as section 407 of such 
     Act, and, as redesignated, is amended to read as follows:

     ``SEC. 407. MEMBERSHIP OF THE COUNCIL.

       ``(a) The Council shall be composed of 15 members who shall 
     be appointed by the Administrator of the Small Business 
     Administration and who shall serve at the Administrator's 
     discretion. In making the appointments, the Administrator 
     shall include racial, geographic and economic diversity, and 
     representation from diverse sectors of the economy, including 
     manufacturing, high technology, services and credit 
     institutions, and shall give priority to include 
     representation of major women's business organizations.
       ``(b) Only the owner, operator or employee of a woman-owned 
     business shall be eligible for appointment, and not more than 
     eight appointees shall be members of the same political 
     party. If any member of the Council subsequently becomes an 
     officer or employee of the Federal Government or of the 
     Congress, such individual may continue as a member of the 
     Council for not longer than the thirty-day period beginning 
     on the date such individual becomes such an officer or 
     employee.
       ``(c) The Council annually shall select one member to serve 
     as its Chairperson. The Chairperson of the Council, or her 
     designee, shall be the representative of the Council to all 
     meetings of the Interagency Committee on Women's Business 
     Enterprise.
       ``(d) The Council shall meet not less than four times per 
     year. Meetings shall be at the call of the Chairperson at 
     such times as she deems appropriate.
       ``(e) Members of the Council shall serve without pay for 
     such membership, except they shall be entitled to 
     reimbursement for travel, subsistence, and other necessary 
     expenses incurred by them in carrying out the functions of 
     the Council, in the same manner as persons serving on 
     advisory boards pursuant to section 8(b) of the Small 
     Business Act.''.

     SEC. 604. INTERAGENCY COMMITTEE.

       Title IV of the Women's Business Ownership Act of 1988 (15 
     U.S.C. 631 note) is amended by striking section 404 and by 
     inserting the following new sections prior to section 405 as 
     redesignated by section 601 of this Act:

     ``SEC. 401. ESTABLISHMENT OF THE COMMITTEE.

       ``There is established an Interagency Committee to be known 
     as the `Interagency Committee on Women's Business Enterprise' 
     (hereinafter in this title referred to as the Committee).

     ``SEC. 402. DUTIES OF THE COMMITTEE.

       ``The Committee shall--
       ``(1) promote, coordinate and monitor the plans, programs 
     and operations of the departments and agencies of the Federal 
     Government which may contribute to the establishment, 
     preservation and strengthening of women's business 
     enterprise. It may, as appropriate, develop comprehensive 
     interagency plans and specific program goals for women's 
     business enterprise with the cooperation of Federal 
     departments and agencies;
       ``(2) promote the better utilization of the activities and 
     resources of State and local governments, business and trade 
     associations, private industry, colleges and universities, 
     foundations, professional organizations, and volunteer and 
     women's business enterprise, and facilitate the coordination 
     of the efforts of these groups with those of Federal 
     departments and agencies;
       ``(3) consult with the Council to develop and promote new 
     initiatives designed to foster women's business enterprise, 
     and to develop policies, programs, and plans intended to 
     promote such development;
       ``(4) consider the Council's recommendations and public and 
     private sector studies of the problems of women 
     entrepreneurs, and promote further research into such 
     problems; and
       ``(5) design a comprehensive plan for a joint public-
     private sector effort to facilitate the development and 
     growth of women-owned businesses. The Committee should submit 
     the plan to the President for review within six months of the 
     effective date of this Act.

     ``SEC. 403. MEMBERSHIP OF THE COMMITTEE.

       ``(a) The Committee shall be composed of representatives of 
     the following departments and agencies: The Departments of 
     Agriculture, Commerce, Defense, Energy, Health and Human 
     Services, Education, Housing and Urban Development, Interior, 
     Justice, Labor, Transportation, Treasury, the Federal Trade 
     Commission, General Services Administration, National Science 
     Foundation, Office of Federal Procurement Policy, and the 
     Director of the Office of Women's Business Ownership of the 
     Small Business Administration, who shall serve as Vice 
     Chairperson of the Committee. The head of each such 
     department and agency shall designate a representative who 
     shall be a policy making official within the department or 
     agency.
       ``(b) The Committee shall have a Chairperson appointed by 
     the President, after consultation with the Administrator of 
     the Small Business Administration and the Chief Counsel for 
     Advocacy of the Small Business Administration. The 
     Chairperson shall be the head of a Federal department or 
     agency. If the Chairperson is the head of one of the 
     departments or agencies enumerated in subsection (a), he or 
     she shall also serve as the representative of such department 
     or agency.
       ``(c) The Committee shall meet not less than four times per 
     year. Meetings shall be at the call of the Chairperson at 
     such times as he or she deems appropriate.
       ``(d) The members of the Committee shall serve without 
     additional pay for such membership.
       ``(e) The Chairperson of the Committee may designate a 
     Director of the Committee, after consultation with the 
     Administrator of the Small Business Administration and the 
     Chief Counsel for Advocacy of the Small Business 
     Administration.
       ``(f) The Chief Counsel for Advocacy is authorized to 
     appoint to his staff under the provisions of section 204 of 
     Public Law 94-305 (15 U.S.C. 634(d)) the person so designated 
     under subsection (e). He or she is also authorized to provide 
     additional staff and administrative support for the 
     Committee.
       ``(g) The Director of the Office of Women's Business 
     Ownership of the Small Business Administration is authorized 
     to provide additional staff and administrative support for 
     the Committee.

     ``SEC. 404. REPORTS FROM THE COMMITTEE.

       ``The Committee shall transmit to the President and to the 
     Small Business Committee of the United States Senate and to 
     the Small Business Committee of the United States House of 
     Representatives a report no less than once in every twelve-
     month period. The first such report shall be submitted no 
     later than March 31, 1995. Such reports shall contain any 
     recommendations from the Council and any comments of the 
     Committee thereon, a detailed statement on the activities of 
     the Committee, the findings and conclusions of the Committee, 
     together with its recommendations for such legislation and 
     administrative actions as it considers appropriate to promote 
     the development of small business concerns owned and 
     controlled by women.''.

     SEC. 605. REPEALER.

       Sections 404 through 407 of the Women's Business Ownership 
     Act of 1988, as in effect on the day before the date of the 
     enactment of this Act, are repealed and the following new 
     section is added at the end of title IV of such Act:

     ``SEC. 408. DEFINITIONS.

       ``For the purposes of this Act, the term--
       ``(1) `woman-owned business' shall mean a small business 
     which is at least 51 percent owned by a woman or women who 
     also control and operate it;
       ``(2) `control' shall mean exercising the power to make 
     policy decisions;
       ``(3) `operate' shall mean being actively involved in the 
     day-to-day management; and
       ``(4) `women's business enterprise' shall mean a woman-
     owned business or businesses or the efforts of a woman or 
     women to establish, maintain, or develop such a business or 
     businesses.''.

     SEC. 606. EXTENSION OF AUTHORITY FOR DEMONSTRATION PROJECTS.

       Section 28 of the Small Business Act, as added by section 2 
     of Public Law 102-191, is redesignated as section 29 and, as 
     so redesignated, is amended by striking from subsection (g) 
     ``1995'' and by inserting ``1997''.

     SEC. 607. ESTABLISHMENT OF OFFICE OF WOMEN'S BUSINESS 
                   OWNERSHIP.

       Section 29 of the Small Business Act, as redesignated by 
     section 606 of this Act, is amended by adding the following 
     new subsection at the end:
       ``(h) There is established within the Administration an 
     Office of Women's Business Ownership, which shall be 
     responsible for the administration of the Administration's 
     programs for the development of women's business enterprises 
     as defined in section 408 of the Women's Business Ownership 
     Act of 1988. The Office shall be headed by a director who 
     shall be appointed by the Administrator.''.

     SEC. 608. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Title IV of the table of contents of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 631 note) is 
     amended to read as follows:

         ``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE

``Sec. 401. Establishment of the Committee.
``Sec. 402. Duties of the Committee.
``Sec. 403. Membership of the Committee.
``Sec. 404. Reports from the Committee.
``Sec. 405. Establishment of the Council.
``Sec. 406. Duties of the Council.
``Sec. 407. Membership of the Council.
``Sec. 408. Definitions.''.
       (b) The heading to title IV of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 631 note) is amended to read 
     as follows:

       ``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISES''.

     SEC. 609. AUTHORIZATION.

       There is authorized to be appropriated $200,000 in each of 
     fiscal years 1995 through 1997 to carry out the provisions of 
     title IV of the Women's Business Ownership Act of 1988 (15 
     U.S.C. 631 note).
                  TITLE VII--MISCELLANEOUS AMENDMENTS

     SEC. 701. HANDICAPPED PARTICIPATION IN SMALL BUSINESS SET 
                   ASIDE CONTRACTS.

       Section 15(c) of the Small Business Act (15 U.S.C. 644(c)) 
     is amended--
       (1) by amending paragraph (2)(A) to read as follows:
       ``(2)(A) During each fiscal year, public or private 
     organizations for the handicapped shall be eligible to 
     participate in programs authorized under this section in an 
     aggregate amount not to exceed $50,000,000.''; and
       (2) by adding the following new paragraph at the end 
     thereof:
       ``(7) Any contract awarded to such an organization pursuant 
     to the provisions of this subsection may be extended for up 
     to two additional years.''.

     SEC. 702. SBA INTEREST PAYMENTS TO TREASURY.

       Section 4(c)(5)(B)(ii) of the Small Business Act (15 U.S.C. 
     633(c)(5)(B)(ii)) is amended to read as follows:
       ``(ii) The Administration shall pay into the miscellaneous 
     receipts of the Treasury following the close of each fiscal 
     year the actual interest it collects during that fiscal year 
     on all financings made under the authority of this Act.''.

     SEC. 703. IMPOSITION OF FEES.

       Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) 
     is amended--
       (1) in paragraph (10) by striking ``and'' at the end;
       (2) in paragraph (11) by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding the following new paragraphs at the end:
       ``(12) impose, retain and use only those fees which are 
     specifically authorized by law or which are in effect on 
     September 30, 1994, and in the amounts and at the rates in 
     effect on such date. The administrator is authorized to 
     impose, retain and utilize, subject to approval in 
     appropriations Acts, the following additional fees--
       ``(A) not to exceed $100 for each loan servicing action 
     requested after disbursement of the loan, including 
     substitution of collateral, loan assumptions, release or 
     substitution of guarantors, reamortizations or similar 
     actions;
       ``(B) to recover the direct, incremental cost involved in 
     the production and dissemination of compilations of 
     information produced by the Administration under the 
     authority of the Small Business Act and the Small Business 
     Investment Act of 1958; and
       ``(13) to collect, retain and utilize, subject to approval 
     in appropriations Acts, any amounts collected by fiscal 
     transfer agents and not used by such agent as payment of the 
     cost of loan pooling or debenture servicing operations: 
     Provided, That any monies so collected shall be utilized 
     solely to facilitate the administration of the program which 
     generated the excess monies.''.

     SEC. 704. SBIR VENDORS.

       Section 9(q)(2) of the Small Business Act (15 U.S.C. 
     638(q)(2)) is amended to read as follows:
       ``(2) Vendor selection.--Each agency may select a vendor to 
     assist small business concerns to meet the goals listed in 
     paragraph (1). Such selection shall be competitive using 
     merit-based criteria, for a term not to exceed 3 years.''.

     SEC. 705. MANUFACTURING CONTRACTS.

       (a) Establishment of Pilot Program.--Section 15 of the 
     Small Business Act (15 U.S.C. 644) is amended by adding at 
     the end the following:
       ``(p) Manufacturing Modernization Pilot Program.--
       ``(1) Establishment.--The Administrator may establish and 
     carry out a manufacturing modernization pilot program 
     (hereinafter in this section referred to as the `program') 
     for the purpose of promoting the award of Federal procurement 
     contracts to small business concerns that participate in 
     manufacturing application and education centers that are 
     established or certified pursuant to paragraph (2).
       ``(2) Manufacturing application and education centers.--The 
     Administrator may establish manufacturing application and 
     education centers which will provide training to small 
     business concerns on new and innovative manufacturing 
     practices in a shared-use production environment and which 
     will assist such concerns in carrying out Federal procurement 
     contracts for the manufacture of components and subsystems. 
     The Administrator may also certify existing manufacturing 
     application and education centers for participation in the 
     program.
       ``(3) Use of private centers as examples.--In establishing 
     any manufacturing application and education centers pursuant 
     to paragraph (2), the Administrator may use as examples 
     manufacturing application and education centers in the 
     private sector that provide the following services: 
     technology demonstration, technology education, technology 
     application support, technology advancement support, and 
     technology awareness.
       ``(4) Identification of contracts.--The Administrator and 
     the head of a contracting agency may identify for additional 
     small business set-asides pursuant to subsection (a) any 
     procurement, and in particular any procurement which is being 
     foreign-sourced or is considered critical, which is 
     susceptible to performance by a small business concern if the 
     concern is assisted by a manufacturing application and 
     education center under the program. Any such procurement 
     shall be subject to the requirements of subsection (a), 
     including requirements relating to any failure of the 
     Administrator and the head of the contracting agency to agree 
     on procurement methods.
       ``(5) Nonapplicability of performance requirement.--The 
     requirement of subsection (o)(1)(B) shall not apply with 
     respect to any contract carried out by a small business 
     concern under the program with the assistance of a 
     manufacturing application and education center.
       ``(6) Regulations.--Not later than 6 months after the date 
     of the enactment of this subsection, the Administrator shall 
     issue regulations to carry out this subsection if he 
     determines it appropriate to carry out the program authorized 
     by this subsection.
       ``(7) Reports.--
       ``(A) Progress report.--Not later than 3 months after the 
     last day of the fiscal year in which final regulations are 
     issued pursuant to paragraph (6), the Administrator shall 
     transmit to the Committees on Small Business of the House of 
     Representatives and the Senate a report on the progress of 
     the program.
       ``(B) Final report.--If the Administrator establishes the 
     program authorized herein, not later than March 31, 1999, he 
     shall transmit to the Committees on Small Business of the 
     House of Representatives and the Senate a report on the 
     success of the program in--
       ``(i) enabling deployment of technology to small business 
     concerns participating in the program, and
       ``(ii) assisting manufacturing application and education 
     centers in achieving self-sufficiency,

     together with recommendations concerning continuation, 
     modification, or discontinuance of the program.
       ``(8) Program term.--The Administrator may carry out the 
     program during the period beginning on the date of issuance 
     of final regulations under paragraph (5) and ending on 
     September 30, 1999.
       ``(9) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out this subsection.''.

     SEC. 706. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY 
                   WITHIN THE UNITED STATES.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by inserting after section 30, as added by section 304 of 
     this Act, the following:

     ``SEC. 31. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT 
                   LAWFULLY WITHIN THE UNITED STATES.

       ``None of the funds made available pursuant to this Act may 
     be used to provide any direct benefit or assistance to any 
     individual in the United States when it is made known to the 
     Administrator of the Small Business Administration or the 
     official to which the funds are made available that the 
     individual is not lawfully within the United States.''.

     SEC. 707. OFFICE OF ADVOCACY EMPLOYEES.

       Section 204 of Public Law 94-305 (15 U.S.C. 634d) is 
     amended as follows--
       (1) by striking ``after consultation with and subject to 
     the approval of the Administrator,''; and
       (2) in paragraph (1) by striking ``GS-15 of the General 
     Schedule'' and all that follows and inserting ``GS-15 of the 
     General Schedule: Provided, however, That not more than 14 
     staff personnel at any one time may be employed and 
     compensated at a rate in excess of GS-15, step 10, of the 
     General Schedule;''. 

     SEC. 708. ADVOCACY STUDY OF PAPERWORK AND TAX IMPACT.

       The Chief Counsel for Advocacy of the Small Business 
     Administration shall conduct a study of the impact of all 
     Federal regulatory paperwork and tax requirements upon small 
     business and report its findings to the Congress within 1 
     year of the date of the enactment of this Act.

     SEC. 709. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT 
                   OBLIGATIONS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended 
     by inserting after section 31, as added by section 706 of 
     this Act, the following:

     ``SEC. 32. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT 
                   OBLIGATIONS.

       ``Each applicant for financial assistance under this Act, 
     including applicants for direct loans and loan guarantees, 
     shall certify, as a condition for receiving such assistance, 
     that the applicant is not in violation of the terms of any 
     administrative order, court order, or repayment agreement 
     entered into between the applicant and the custodial parent 
     or the State agency providing child support enforcement 
     services which requires the applicant to pay child support, 
     as such term is defined by section 462(b) of the Social 
     Security Act.''.
       Amend the title so as to read: ``An Act to amend the Small 
     Business Act, and for other purposes.''.

  The motion was agreed to.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed.
  The title of the Senate bill was amended so as to read: ``A bill to 
amend the Small Business Act, and for other purposes.''
  A motion to reconsider was laid on the table.
  A similar House bill (H.R. 4801) was laid on the table.


                        appointment of conferees

  Mr. LaFALCE. Mr. Speaker, I ask unanimous consent that the House 
insist on its amendment to the Senate bill, S. 2060, and request a 
conference with the Senate thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York? The Chair hears none, and without objection, 
appoints the following conferees: Messrs. LaFalce, Smith of Iowa, and 
Wyden, Mrs. Meyers of Kansas, and Mr. Baker of Louisiana.
  There was no objection.

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