[Congressional Record Volume 143, Number 150 (Friday, October 31, 1997)]
[Senate]
[Pages S11523-S11529]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                TITLE II: FINANCIAL ASSISTANCE PROGRAMS

                     Subtitle A--Microloan Program

     Section 201. Microloan Program.
       The bill authorizes the direct microloan program, including 
     the technical assistance grants, as a permanent program and 
     extends the guaranteed microloan program through Fiscal Year 
     2000. In doing so, the Congress recognizes the effectiveness 
     of these programs and the integral role they play in SBA's 
     array of small business financial assistance programs. In 
     order to maintain the financial integrity and success of the 
     programs, including the welfare-to-work microloan initiative 
     authorized by section 202 of this bill, SBA should continue 
     to administer the programs through its offices charged with 
     management and oversight of small business finance programs.
       The bill makes a number of changes to the permanent 
     program, including: 1) increases the loan limit for each 
     intermediary under the microloan program from $2,500,000 to 
     $3,500,000; 2) changes the loan loss reserve requirements for 
     an experienced microloan intermediary to the greater of twice 
     its historic loss rate or 10 percent of its outstanding loan 
     balance; 3) increases from 15 percent to 25 percent the 
     percentage of a technical assistance grant that may be used 
     for microloan program participants prior to their receipt of 
     a microloan; and 4) authorizes up to 25 percent of the 
     technical assistance grants to be used for contracting with 
     third parties to provide assistance to microborrowers.
     Section 202. Welfare-to-Work Microloan Initiative.
       The bill establishes a Welfare-to-Work Microloan 
     Initiative, a three-year initiative to test the feasibility 
     of providing supplemental grants to existing microloan 
     intermediaries and technical assistance providers 
     specifically targeted to helping individuals leave public 
     assistance and establish their own businesses. While this 
     initiative is not expected to be appropriate for all 
     individuals seeking to leave public assistance, testimony 
     before the Senate Committee indicated that in the state of 
     Iowa microloan technical assistance has been one useful tool 
     for assisting some in this population to establish small 
     businesses. By authorizing 20 locations to target the welfare 
     population, this initiative is intended to test the 
     effectiveness of this tool in all regions of the country. The 
     bill requires an annual evaluation of the initiative and its 
     effectiveness in moving individuals from public assistance to 
     business ownership.
       The bill also authorizes supplemental grants to be used, at 
     the discretion of the intermediary or technical assistance 
     provider, to pay all or a portion of the child care or 
     transportation costs of an individual participating in this 
     initiative. These costs are often identified as the highest 
     barriers to the employment of welfare recipients. To 
     encourage the creation of small businesses in these key 
     areas, the bill authorizes the microloan program to assist 
     individuals who are starting or operating a for-profit or 
     non-profit child care establishment or a for-profit 
     transportation business.
       The bill authorizes SBA to fund the supplemental microloan 
     technical assistance grants solely through transfers by 
     cooperative agreements with other Federal departments or 
     agencies which have appropriated funds for the purpose of 
     moving individuals from public assistance to employment. The 
     Small Business Administration is authorized to receive $3 
     million for Fiscal Year 1998, $4 million for Fiscal Year 
     1999, and $5 million for Fiscal Year 2000 for the welfare-to-
     work microloan initiative.

         Subtitle B--Small Business Investment Company Program

     Section 211. Five Year Commitments for SBICs at Option of 
         Administrator.
       The bill gives the Administrator of SBA authority to make 
     five year leverage commitments for SBICs. This new authority 
     is designed to assist SBICs in raising private capital, which 
     is matched with government guaranteed capital to be invested 
     in small businesses. By allowing SBA to approve five year 
     commitments, an SBIC will be able to obtain leverage 
     commitments based on its typical investment pattern, which 
     normally allows for all investments to be made during the 
     first five years of the SBIC's life-cycle.
     Section 212. Fees.
       The bill includes a provision to permit SBA to collect fees 
     from applicants for a license under the SBIC Program. It 
     permits SBA to retain these funds to offset its overhead to 
     conduct a review of each applicant.

[[Page S11524]]

     Section 213. Small Business Investment Company Reform.

                          (a) Bank Investments

       This subsection modifies the Small Business Investment Act 
     of 1958 to allow banks to continue to invest in SBICs, 
     whether the SBIC is organized as a corporation, partnership, 
     or limited liability company. This provision expressly 
     permits banks to invest in entities established to invest 
     solely in SBICs, with no requirement that such entities be 
     registered investment companies. Currently, the Small 
     Business Investment Act only provides that banks may purchase 
     stock from SBICs; however, many SBICs are now organized as 
     limited liability companies and partnerships which do not 
     have stock, and some banks may want to structure their SBIC 
     investments through a separately managed ``fund of funds'' to 
     diversify among several different SBICs. This provision will 
     permit such investments.

                            (b) Leverage Cap

       Section 213 provides for a $90 million cap on leverage to 
     an individual SBIC or multiple SBICs under common control to 
     be adjusted annually for inflation. Under this subsection, 
     recipients of leverage in excess of $90 million would agree 
     to invest all leverage obtained above this cap in ``smaller 
     businesses,'' which are defined as small businesses having $2 
     million or less in revenues and $6 million or less in net 
     worth. The $90 million cap will be adjusted annually for 
     inflation.

                         (c) Tax Distributions

       Because the majority of the SBICs are partnerships, this 
     subsection permits SBICs to make quarterly distributions to 
     its investors (i.e., partners) to meet the investors' tax 
     obligations. This quarterly distribution is designed to cover 
     the situation where investors are making quarterly tax 
     payments to the Federal government. If the SBIC's tax 
     liability is not as great as estimated, the quarterly tax 
     distributions are applied to the following tax year.

                            (d) Leverage Fee

       Under this subsection, SBICs will be required to pay a 1 
     percent commitment fee at the time SBA makes a commitment for 
     leverage, and the balance of 2 percent will be paid on the 
     amount of leverage as it is periodically drawn by the SBIC. 
     If SBA made no prior commitment to the SBIC for leverage, the 
     entire 3 percent fee is paid at the time that leverage is 
     drawn by the SBIC.

       (e) Periodic Issuance of Guarantees and Trust Certificates

       Subsection (e) will permit SBA to pool and sell debentures 
     to investors every six months. This is a change from current 
     law which requires SBA to pool and sell debentures every 
     three months. Current law has caused difficulties for SBA in 
     producing sufficiently large and diverse pools of debentures 
     that are most attractive to investors. This change will allow 
     for large pools, which should generate greater investment 
     interest and more favorable interest rates for SBICs. Under 
     this subsection, SBA will retain the discretion to pool and 
     sell debentures more frequently, if there is sufficient 
     demand.
     Section 214. Examination Fees.
       This section would permit SBA to collect fees from SBICs to 
     defray costs for SBA to conduct periodic examinations of 
     SBICs. It is the intention of the Conferees that these funds 
     be available to SBA solely to cover the costs of the 
     examinations and other related oversight activities.

           Subtitle C--Certified Development Company Program

     Section 221. Loans for Planned Acquisition, Construction, 
         Conversion, and Expansion
       The bill permits a borrower under the 504 Program to lease 
     out 20 percent of the project to one or more other tenants. 
     This new authorization will allow the 504 borrower to attract 
     an unaffiliated tenant to its project that would complement 
     the borrower's business activity. The bill also permits the 
     seller to provide partial financing to the 504 borrower, so 
     long as the seller subordinates its interest in the property 
     to that of the SBA. The seller's financing is limited to no 
     more than 50 percent of the equity that must be provided to 
     the project by the borrower.
     Section 222. Development Company Debentures
       The bill permits SBA to collect a fee of up to 15/16ths of 
     1 percent fee through Fiscal Year 2000, paid by the 504 
     borrower annually on the outstanding principal owed on the 
     loan guaranteed by SBA. The bill directs that the fee paid by 
     the 504 borrower be reduced by SBA in an amount to insure 
     that excessive fees are not collected by SBA from 504 
     borrowers if the credit subsidy rate is reduced.
     Section 223. Premier Certified Lenders Program
       The bill expands the Premier Certified Lenders Program by 
     repealing the current limit of 15 CDCs that can participate 
     under the program. The responsibilities of a PCLP participant 
     are expanded to include in addition to approving loans, 
     authorizing, closing, servicing, foreclosing, litigating and 
     liquidating loans. The bill recognizes that the 
     Administration has a legitimate oversight interest in law 
     suits to which a premier certified lender is a party. The 
     bill anticipates that SBA will interject its views on a case 
     of first impression or other litigation of a precedent 
     setting nature and may request a litigation plan to evaluate 
     the litigation strategy of the PCLP participant. In addition, 
     the bill extends eligibility for the PCLP Program once a CDC 
     has been an active participant in the accredited lenders 
     program during the 12 month period preceding the date the CDC 
     submits its application.
       The bill modifies current law that requires the premier 
     lender to maintain a loss reserve of 10 percent of the CDCs 
     exposure. SBA is directed to review CDCs on a regular basis 
     to confirm that those with loan loss rates greater than 10 
     percent do not expose the Federal government to a risk of 
     loss. SBA should take appropriate steps to insure that CDCs 
     with loss rates in excess of 10 percent do not pose a risk of 
     loss to the government.
       The bill permits the premier lenders to maintain their loss 
     reserves using segregated funds on deposit in federally 
     insured institutions, or they can provide irrevocable letters 
     of credit in a format acceptable to the SBA. If a loss has 
     been sustained by the SBA, and funds are disbursed from the 
     loss reserve to reimburse SBA for the CDC's share of the 
     loss, the CDC must replenish the reserve account within 30 
     days.
       The bill provides that each premier lender is to establish 
     a goal of processing not less than 50 percent of their loan 
     applications under the PCLP and extends the program through 
     October 1, 2000. With respect to the processing goal, the 
     Congress intends the goal as a target only, and expects 
     Community Development Companies to use prudent judgment at 
     all times in determining which applications are appropriate 
     for processing under the streamlined PCLP procedures. This 
     judgment should not be influenced by the 50 percent goal. The 
     bill also requires SBA to promulgate regulations to carry out 
     these changes within 120 days of enactment of this bill. 
     Within 150 days after the date of enactment of this bill, SBA 
     is to issue program guidelines and fully implement changes 
     contained in this section.

                 7(a) Guaranteed Business Loan Program

       The bill authorizes SBA to conduct background ``name'' 
     checks on all prospective 7(a) and 504 borrowers using the 
     best available means possible, including the Federal Bureau 
     of Investigation, National Crime Information Center (NCIC), 
     computer system if it is available. Although the presence of 
     a criminal record does not act as an absolute bar to 
     participation in the SBA's loan programs, the Congress is 
     concerned that persons convicted of fraud, embezzlement, and 
     similar crimes may have access to SBA loans. Congress is also 
     concerned that, in conducting these checks, undue delay in 
     loan approvals will be detrimental to small business 
     borrowers and to the programs' viability. In implementing 
     this authority, the SBA should explore the effectiveness of a 
     sampling methodology provided that all prospective borrowers 
     are required to provide the information necessary to enable 
     such a check to be conducted.
       The bill directs SBA to undertake a study on its efforts to 
     increase lender approval, servicing, foreclosure, liquidation 
     and litigation of 7(a) loans and to report to the Congress 
     within six months of enactment of this Act.
       The bill includes a requirement that SBA submit a detailed 
     report to the Congress and the General Accounting Office on 
     its plans for installation of a computerized financial 
     tracking and loan monitoring system. SBA is directed to 
     report to the House and Senate Committees on Small Business 
     and the General Accounting Office within six months of the 
     enactment of this Act. No funds can be obligated or spent on 
     this system until 45 days after the report is received by the 
     Committees and GAO.

                TITLE III: WOMEN'S BUSINESS ENTERPRISES

       Title III addresses the non-credit programs that serve 
     women who own or seek to start their own business.
     Section 301. Interagency Committee Participation
       The bill provides that each designee to the Interagency 
     Committee report directly to the head of their respective 
     agency on the status of the Interagency Committee's 
     activities.
       The bill does not authorize appropriations to support the 
     activities of the Interagency Committee. The agencies and 
     departments on the Interagency Committee are to allocate 
     existing personnel and resources to support participation on 
     the Interagency Committee.
     Section 302. Reports
       The bill directs the Interagency Committee to transmit its 
     annual report to Congress and the President through the SBA. 
     This section deletes the requirement that the Interagency 
     Committee's report include recommendations from the National 
     Women's Business Council and requires that the report address 
     the Committee's efforts to meet its statutory duties.
     Section 303. Duties of the National Women's Business Council
       In order to remove an inconsistency in current law, the 
     bill directs the National Women's Business Council to submit 
     its recommendations and reports to the Administrator of the 
     SBA through the Assistant Administrator for the Office of 
     Women's Business Ownership. The bill requires the Council to 
     report annually to Congress and the President, and it must 
     include a status report on the Council's efforts to fulfill 
     its duties

[[Page S11525]]

     under sections 406 (a) and (d) of the Small Business Act.
     Section 304. Council Membership
       Under the bill, the SBA Administrator is to appoint the 
     Council members after reviewing the recommendations of the 
     Chairmen and Ranking Minority Members of the Committees on 
     Small Business in the Senate and House of Representatives. 
     The Administrator shall give full consideration to the 
     recommendations provided by the Chairmen and Ranking Minority 
     Members. This is to enhance the Council's ability to fulfill 
     its role as an independent advisory body to the Congress, the 
     President and the Administrator through the Assistant 
     Administrator of the Office of Women's Business Ownership.
       The bill establishes staggered terms for the Council 
     members.
       The bill expands the Council to 14 members, plus a chair 
     who should be a prominent business woman appointed by the 
     President. Under current law, there are nine members (four 
     business owners and five women's business organizations' 
     representatives). The bill increases the number of women 
     business owners to eight and increases the number of 
     representatives of women's business organizations to six and 
     includes language expressly recognizing that this category is 
     to include representatives of local Women's Business Centers. 
     The bill removes the word ``national'' as a qualifier for the 
     type of organizations that can be represented on the Council. 
     The bill also directs the SBA Administrator to give 
     appropriate consideration to rural versus urban diversity 
     when selecting Council members.
     Section 305. Authorization for Appropriations.
       The bill authorizes the appropriation of $600,000 for 
     Fiscal Years 1998 through 2000 with $200,000 targeted for 
     research on women's procurement and finance issues as 
     authorized in section 306 and 307. Any funds appropriated 
     under this section are to be used solely for the activities 
     and duties of the Council, and the Council is required to 
     review and approve its operating and research budget each 
     year.
       Prior to funds being appropriated for research under 
     section 307, the Council shall provide the Senate and House 
     Committees on Small Business with a description of the 
     proposed research study and resulting report. Such proposals 
     are to be delivered to the Committees with SBA's annual 
     budget request.
     Section 306. National Women's Business Council Procurement 
         Project.
       The bill authorizes the National Women's Business Council 
     to conduct a study of issues related to Federal procurement 
     opportunities for businesses controlled and owned by women.
       Although women-owned business now represent over \1/3\rd of 
     all businesses, they receive a minute share of Federal 
     procurement dollars. In 1994, the Federal Acquisition 
     Streamlining Act (FASA) established a modest government-wide 
     goal of 5 percent for Federal contracts being awarded to 
     women-owned businesses. The study directed by this bill is to 
     gain a greater understanding of the Federal government's poor 
     performance in working with this growing sector. 
     Specifically, the National Women's Business Council is to 
     conduct a study of the Federal government's procurement 
     history in attracting and awarding contracts to women-owned 
     business using existing data collected by agencies. The bill 
     also requires the National Women's Business Council to 
     prepare a report on the best procurement practices of the 
     Federal government and the commercial sector and to recommend 
     policy changes.
       The bill provides contract authority to the Council to 
     carry out the research initiatives and resulting reports 
     authorized under sections 306 and 307. All contracts shall be 
     awarded in accordance with the Federal Acquisition 
     Regulations.
     Section 307. Studies and Other Research.
       Upon completion of the Federal procurement study under 
     section 306, the Council is authorized to conduct other 
     research relating to the award of Federal prime contracts and 
     subcontracts to women-owned businesses, and access to credit 
     and investment capital by women entrepreneurs, as the Council 
     determines to be appropriate.
     Section 308. Women's Business Centers.
       The bill increases the authorization for creating Women's 
     Business Centers (previously called Women's Business 
     Demonstration Sites) from $4 million per year to $8 million 
     per year. Grantees awarded funds under this section will be 
     eligible to receive funds for five years rather than three 
     years as provided under current law. Changes to the matching 
     funds requirement as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Year 1                  Year 2                  Year 3                  Year 4                  Year 5        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Current law.....................  1 non-Federal; 2        1 non-Federal; 1        2 non-Federal; 1        No funds                No funds              
                                   Federal                 Federal                 Federal                                                              
Reauthorization.................  1 non-Federal; 2        1 non-Federal; 2        1 non-Federal; 1        1 non-Federal; 1        2 non-Federal; 1      
                                   Federal                 Federal                 Federal                 Federal                 Federal              
--------------------------------------------------------------------------------------------------------------------------------------------------------

       The bill provides that grantees conducting a three year 
     program as of the day before the effective date of this bill 
     may apply to SBA to receive funds for two additional years. 
     Such Centers that were in year 3 of a 3 year project on 
     September 30, 1997 and that are approved to receive funds in 
     years 4 and 5 will be subject to the matching requirements 
     applicable to year 5 under this bill. The Congress intends 
     that Centers which have a history of successful operation in 
     this program receive funds to continue for years 4 and 5.
       The bill includes language providing a definition of 
     ``women's business center site.'' This language reflects the 
     fact that existing Women's Business Centers may submit 
     applications for grants to create new sites in their state or 
     neighboring states; however, selection must be made in 
     accordance with the criteria provided in the Act.
       The bill also includes a list of duties and 
     responsibilities of the Assistant Administrator for the 
     Office of Women's Business Ownership, and upgrades the 
     position of Assistant Administrator for the Office of Women's 
     Business Ownership to a position in the Senior Executive 
     Service.
       The bill includes language to codify the practice of 
     allowing Women's Business Center grant recipients to pursue 
     other sources of Federal funds. Accordingly, funds received 
     from other Federal agencies do not qualify as non-Federal 
     funds under the matching funds requirement of this section. 
     The additional funds obtained by a Women's Business Center do 
     not effect the level of non-Federal funds required to receive 
     its Federal funds under this section. In addition, the 
     performance of other Federal contracts shall not hinder the 
     ability of the Women's Business Center grantee from 
     fulfilling its obligations under this section.
       The bill amends the criteria for selecting grant applicants 
     under this section to include the ``location for the Women's 
     Business Center site.'' This language is to ensure that 
     preference be given to applications for states without 
     existing Centers. SBA should allocate at least 1/5th of the 
     funds appropriated each year to the creation of new sites, 
     with preference given to those in states not having a Center.
       On the use of appropriated funds, the bill expressly 
     prohibits the use of the funds appropriated under this 
     section for any purposes other than grant awards, except 
     that, in Fiscal Year 1998 only, up to 5 percent of the funds 
     appropriated under this section are authorized to be used to 
     supplement funds in SBA's salaries and expense budget for the 
     administration of this program. No funds appropriated under 
     this section may be reprogrammed by SBA or used for programs 
     authorized by any other section of this Act without first 
     notifying Congress. SBA needs to change its practice of using 
     funds appropriated under this section for personnel and 
     administrative overhead. SBA should include in its Fiscal 
     Year 1999 budget request a line item in the salaries and 
     expenses budget to reflect the actual cost of administering 
     this important program. To assist with Congressional 
     oversight, the SBA is directed to provide the Senate and 
     House Committees on Small Business with a quarterly 
     accounting within 20 days of the end of the Fiscal Year 
     quarter detailing all expenditures for the Women's Business 
     Centers program in Fiscal Years 1998, 1999, and 2000. In 
     Fiscal Year 1998, the report shall identify whether each 
     expenditure was funded by appropriated grant funds or SBA's 
     salaries and expense budget.
       In Fiscal Year 1998, up to 5 percent of the funds 
     appropriated for Women's Business Center grants can be used 
     only for administrative expenses associated with: (a) 
     continued development and implementation of the computerized 
     data reporting and collection system; (b) selection and 
     oversight of the grantees; and (c) holding a training seminar 
     for new grantees and existing programs. All other 
     administrative costs are to come from the agency's salaries 
     and expenses budget.
       SBA is directed to: (a) award the contract for the computer 
     data system competitively; (b) ensure that the Office of 
     Women's Business Ownership has sufficient personnel dedicated 
     to the oversight of the program by expanding the number of 
     full time staff dedicated to this program to at least two and 
     by better utilizing the District Office staff; and (c) ensure 
     that the seminar is truly educational in nature, with any 
     travel, per diem, and other overhead expenses for SBA staff 
     paid from the salaries and expenses budget.
       The computer data system should be designed to track 
     outcomes, such as those named in the statute to be contained 
     in the annual report to the Committees on the effectiveness 
     of the program. The contractor should (a) provide technical 
     assistance to ensure that the Centers know how to use the 
     system and (b) work with a representative group of Centers to 
     ensure that the system is compatible with their activities.


                   TITLE IV: COMPETITIVENESS PROGRAM

           Subtitle A--Small Business Competitiveness Program

     Section 401. Program Term.
       The bill amends the Small Business Competitiveness 
     Demonstration Program Act of 1988 to make the program 
     permanent.
     Section 402. Monitoring Agency Performance.
       The bill contains a provision to change the monitoring and 
     reporting frequency from quarterly to annual (October 1 
     through September 30).
     Section 403. Reports to Congress.
       The bill amends section 716(a) of Small Business 
     Competitiveness Demonstration

[[Page S11526]]

     Program Act of 1988, to assure that annual reports are 
     submitted to the House and Senate. The bill also amends the 
     Act to require the Small Business Administration be the 
     Executive Agency responsible for the development and 
     submission of the annual report and not the Office of Federal 
     Procurement Policy. The bill also makes a technical amendment 
     to the Act to correctly reflect the name of the House of 
     Representatives Committee to receive the report from the 
     ``Committee on Governmental Operations'' to the ``Committee 
     on Government Reform and Oversight.''
     Section 404. Small Business Participation in Dredging.
       The bill makes this program permanent.
       The bill recognizes that a transition from the standard 
     industrial classification (SIC) code to the North American 
     Industrial Classification Code (NAICC) is likely to occur in 
     the future; however, the Small Business Administration (SBA) 
     first needs to convert the small business size standards to 
     the new code and the Federal Procurement Data System must 
     also be converted to the NAICC. The Senate Committee on Small 
     Business encourages the Administrator of SBA, the 
     Administrator of the Office of Federal Procurement Policy 
     (OFPP) and the Secretary of the Department of Commerce to 
     develop a plan and time table for implementing the NAICC.

      Subtitle B--Small Business Procurement Opportunities Program

     Section 411. Contract Bundling.
       Section 411 amends section 2 of the Small Business Act (15 
     U.S.C. 632) emphasizing Congressional policy to provide small 
     businesses, to the maximum extent practicable, prime 
     contracting and subcontracting opportunities and to eliminate 
     obstacles to their participation and to avoid unnecessary and 
     unjustified bundling of contract requirements.
     Section 412. Definition of Contract Bundling.
       The bill amends section 3 of the Small Business Act (15 
     U.S.C. 632) to define the terms ``bundling of contract 
     requirements,'' ``bundled contract'' and ``separate smaller 
     contract.''
     Section 413. Assessing Proposed Contract Bundling.
       The bill amends section 15 of the Small Business Act (15 
     U.S.C. 644) to create a new subsection (e) which establishes 
     the procedure to be followed by contracting officials to 
     insure that small business concerns are afforded the maximum 
     practicable opportunity to compete for prime contracting and 
     subcontracting opportunities. Specifically, the bill directs 
     that if a requirement could lead to a ``bundled requirement'' 
     the agency shall conduct market research to determine whether 
     consolidation is necessary and justified.
       Section 413 encourages small businesses to form contract 
     teams to compete for bundled requirements and provides that 
     such a team will not affect a business's status as a small 
     business concern for any other purpose. In establishing a 
     contract teaming authority which amends SBA's small business 
     affiliation rules, Congress recognizes that some types of 
     affiliation should not disqualify a small business from 
     participating in Federal procurement programs established to 
     encourage small business contracting. Similarly, Congress 
     directs SBA to study the appropriateness of changing the 
     small business affiliation rules for instances of investments 
     by another entity if no other indicia of control or negative 
     control is evident. In the teaming provisions of the bill and 
     the previous legislation authorizing an exception to the size 
     rules for investments by an SBIC or any one of a range of 
     professional investors. Congress has recognized certain 
     situations which should be encouraged and should not 
     disqualify an entity from small business status. The Agency 
     should report to the Committees on Small Business on its 
     findings by April 30, 1998, which will enable the Congress to 
     address the issue legislatively if necessary.
       The ability of small businesses to team with other small 
     businesses should not be considered an opportunity for 
     procurement officials to justify a decision to bundle one or 
     more requirements. The justification for bundling must be 
     based solely on savings, improvements, and enhancements that 
     accrue to the agency and that overwhelm any infringement of 
     small business opportunity. The mere fact that small 
     businesses could or might team does not lower the burden for 
     agency justification of bundling.
       The bill also amends section 15 of the Small Business Act 
     (15 U.S.C. 644(a)) to direct that the Small Business 
     Administration procurement review procedures shall be 
     required if a solicitation involves an unnecessary or 
     unjustified bundling of contract requirements. Nothing in 
     this section or section 412 is intended to amend or change in 
     any way the existing obligations imposed on a procurement 
     activity or the authority granted the Small Business 
     Administration under section 15(a) of the Small Business Act.
     Section 414. Reporting of Bundled Contract Opportunities.
       Section 414 contains a requirement that Federal agencies 
     report through the Federal Procurement Data System all 
     contract actions involving bundled requirements with an 
     anticipated contract award value exceeding $5,000,000.
     Section 415. Evaluating Subcontract Participation in Awarding 
         Contracts.
       The bill adds a new substitute section 8(d)(4) of the Small 
     Business Act (15 U.S.C. 637(d)(4)) to require that bundled 
     contract requirements to be awarded pursuant to the 
     negotiated method of procurement shall use the contractor's 
     small business subcontracting plan and past small business 
     subcontracting performance as to significant factors for the 
     purposes of evaluating offers.
     Section 416. Improved Notice of Subcontracting Opportunities.
       The bill amends section 8 of the Small Business Act (15 
     U.S.C. 637) to allow prime contractors and subcontractors (at 
     any tier) with an estimated subcontracting opportunity in 
     excess of $10,000 to provide public notice of subcontracting 
     opportunities through the Commerce Business Daily.
     Section 417. Deadlines for Issuance of Regulations.
       The bill requires that proposed implementing regulations be 
     published not later than 120 days after the date of enactment 
     and that final regulations be published not later than 270 
     days after the date of enactment.


                   TITLE V: MISCELLANEOUS PROVISIONS

                   Small Business Technology Transfer

     Section 501. Small Business Technology Transfer Program.
       The bill reauthorizes the STTR program through Fiscal Year 
     2001 and makes three changes to the program: (1) extends 
     SBA's reporting requirements on the program to include the 
     House Committee on Science and Technology; (2) directs any 
     Federal agency participating in the Small Business Innovation 
     Research (SBIR) program or STTR to include information 
     relating to such participation in its requirements under the 
     Government Performance and Results Act (GPRA); and (3) 
     directs SBA to conduct outreach to states with low levels of 
     participation in the STTR program.
       The new ``outreach program'' is intended to increase the 
     STTR grant application pool from which STTR grant 
     applications are selected by increasing the number of 
     applicants from states that received under $5,000,000 in 
     awards during Fiscal Year 1995. The program is intended to 
     improve the overall number and quality of applications for 
     awards.
       The authorization contained in this section shall be taken 
     entirely from funds authorized for use by the Small Business 
     Administration. No funding derived from the STTR agency 
     research set-aside may be used for the outreach program.
       In addition, the bill adds a new subsection that requires 
     STTR and SBIR programs to be included in agencies' strategic 
     plan updates required under the Government Performance and 
     Results Act (5 U.S.C. 306 (b)).

                   Small Business Development Centers

     Section 502. Small Business Development Centers.
       The bill includes substantial increases in the authorized 
     grant amounts available to SBDCs under the ``National 
     Program.'' Because the funds under the program are allocated 
     on a population basis some states with small populations, but 
     which are large geographically, have been receiving too small 
     a Federal grant to serve adequately its small business 
     population. In order to correct this inequity, the bill 
     includes a minimum grant amount of $500,000 for the smaller 
     population states. So long as a state provides a matching 
     amount of non-Federal funds, it will receive $500,000 even if 
     it would not otherwise be entitled to this amount under the 
     ``National Program.'' Similarly, if a state provides a 
     matching amount of less than $500,000, it will receive a 
     grant in the amount of the matching contribution.
       The Congress views the non-Federal matching contribution 
     requirement to be an essential attribute of this program and 
     a key to its success. Therefore, if any state is unable to 
     match the full $500,000 authorized in this bill as a funding 
     floor, it should be funded up to the level that it is able to 
     match.
       The Committee urges the Small Business Development Centers 
     to inform and assist small businesses in complying with 
     energy, safety, labor, tax, and related Federal, state, and 
     local regulations, and to work with the technical and 
     environmental compliance assistance programs established in 
     each state under section 507 of the Clean Air Act Amendments 
     of 1990 or state pollution prevention programs to work with 
     Small Business Development Centers to inform and assist small 
     businesses in complying with environmental regulations.
     Section 505. Asset Sales.
       Section 505 directs SBA to provide the Committees on Small 
     Business of the Senate and House of Representatives with 
     copies of the draft and final plans describing its initiative 
     to sell its portfolio of defaulted guaranteed loans and 
     direct loans in Fiscal Years 1998 and 1999. It is the 
     understanding of the Committee that SBA intends to conduct an 
     initial sale of $100 million from the Disaster loan 
     portfolio. We expect the Agency to provide the Committees 
     with copies of preliminary plans at the time they are 
     prepared for evaluation by SBA, as sell as any amended or 
     final plans chosen by SBA to carry out the sales of the 
     assets covered by this program and copies of reports 
     analyzing the results of each sale.
     Oversight of Regulatory Enforcement
       P.L. 104-121 established the Small Business and Agriculture 
     Regulatory Enforcement Ombudsman and the Regional Small 
     Business Regulatory Enforcement Fairness

[[Page S11527]]

     Boards. The Ombudsman's primary responsibilities are to 
     solicit and record comments from small businesses and compile 
     an evaluation, similar to a ``customer satisfaction'' rating, 
     of each agency's performance based on the comments received 
     from small businesses and the Fairness Boards. A ``report 
     card'' of these agency ratings is to be published each year.
       The Fairness Boards, composed of five small business owners 
     in each of the SBA's ten regions, provide small businesses 
     with an opportunity to review and assess government agencies' 
     enforcement activities involving small businesses. The 
     Fairness Boards may hold hearings, gather information as 
     appropriate, and offer recommendations and comments on agency 
     enforcement policies and practices to the Ombudsman for 
     inclusion in his report. The Ombudsman is the federal 
     official designated to assist the Fairness Boards by 
     coordinating their independent activities. The Ombudsman is 
     directed under the law to include their advice and 
     recommendations in his reports to the agencies and Congress.
       The Ombudsman must pursue its statutory mission and 
     allocate its resources in accordance with the priorities set 
     forth in the statute. Soliciting comments and developing 
     suggested routine procedures for agencies to implement, to 
     facilitate and to encourage small businesses to provide 
     comments to the Boards and the Ombudsman is a significant 
     undertaking. Careful attention and a thorough effort is 
     required of the Ombudsman to convert these comments into the 
     annual agency report cards called for by the law. The purpose 
     of the law's requirements is to give small businesses a voice 
     in evaluating each agency's performance, and the resulting 
     ratings are intended to measure whether agencies are treating 
     small businesses more like responsible citizens than 
     potential criminals.
       Annual reports issued by the Ombudsman on agency 
     responsiveness in enforcement activities must be based on 
     comments received from small businesses, not based on self-
     assessment by the agencies themselves or on the Ombudsman's 
     evaluation of the agencies' efforts. P.L. 104-121 instructs 
     the Ombudsman and Fairness Boards to base their report on 
     ``substantiated'' comments. The Ombudsman should verify 
     comments by contacting the commenting small businesses, on a 
     spot check basis as may appear necessary under the 
     circumstances, rather than by going to the agency, if there 
     is a reason to believe that any particular comments are 
     fictitious or in some way not the result of an actual 
     interaction with Federal agency personnel.
       Many small businesses fear retaliation for commenting on an 
     agency's performance and, as a result, the Ombudsman and 
     Fairness Boards have a sensitive task. Because of these 
     confidentiality interests, the law requires the Ombudsman and 
     Fairness Boards to rate agency performance according to the 
     subjective views and comments submitted by small businesses. 
     All agencies, however, have an opportunity to review and 
     comment on the Ombudsman's draft report, but the Ombudsman is 
     not authorized to forward to the agency or disclose in the 
     report the identity of individual small businesses providing 
     comments. The agencies' positions may be addressed by 
     including a separate agency response section in the final 
     report.
       With limited resources, the statutory duties and 
     responsibilities of the Ombudsman necessarily should be 
     strictly followed, and resources should not be used to 
     undertake activities beyond the scope of the statute. 
     Ordinarily, the law does not contemplate that the Ombudsman 
     will make a determination of the factual and legal merits of 
     the enforcement action contained in comments received by the 
     Ombudsman. The law does not anticipate a mediation role for 
     the Ombudsman to create a forum for agencies to negotiate the 
     resolution of individual comments or complaints.


                       TITLE VI: HUBZONE PROGRAM

       The bill creates a new program known as the ``HUBZone Act 
     of 1997.'' This program was approved by a vote of 18-0 in the 
     Committee on Small Business and subsequently included in S. 
     1139 as Title VI.
       The purpose of the HUBZone Act of 1997 is to provide relief 
     to urban and rural areas of the United States which have 
     historically been identified as economically distressed 
     areas. The HUBZone Act of 1997 is a jobs program intended to 
     encourage small business concerns to locate in, and employ 
     residents of, HUBZones. One of the principal purposes of this 
     Act is to decrease the unemployment, underemployment, and low 
     quality of life conditions that tend to be concentrated in 
     inner cities and some rural areas, including Indian 
     Reservations, throughout the U.S.
       The HUBZone Act of 1997 is crucial to our Government's 
     attempt to reform welfare by providing meaningful economic 
     opportunities to individuals who live and work in HUBZones. 
     Every effort should be made in the implementation of the 
     HUBZone Act by SBA and other Federal agencies to provide an 
     effective opportunity for the contracting preferences to be 
     used as the basis for meaningful levels of contract awards. 
     Special care must be taken to insure that routine dependency 
     on existing programs does not hinder the full and fair 
     implementation and utilization of HUBZone contracting 
     procedures by federal agencies.
       The HUBZone Act of 1997 is designed to bring qualified 
     HUBZone small business concerns and their employees into the 
     mainstream of government contracting at both the prime and 
     subcontract levels by providing procurement preferences and 
     through the establishment of contracting goals. The Act 
     establishes three specific Federal procurement preferences 
     for ``qualified HUBZone small business concerns.''
     Section 602. Historically Underutilized Business Zones.
       This section establishes the framework for implementation 
     of the HUBZone Act of 1997. It defines the terms under which 
     a small business qualifies as a HUBZone small business. In 
     addition, Section 602 sets forth the authority for a 
     contacting officer for a Federal agency to restrict 
     competition for a contract to a qualified HUBZone small 
     business when he determines there are two or more qualified 
     HUBZone small business concerns that are likely to submit 
     offers and that award can be made at a fair market price. In 
     the circumstance where there is only one qualified HUBZone 
     small business concern and the contracting officer is 
     authorized to make a non-competitive award of a contract that 
     does not exceed $3 million for service contracts and $5 
     million for manufacturing contracts. In this circumstance, 
     the contracting officer must determine that the award can be 
     made at a fair and reasonable price.
       Section 602 gives the Small Business Administration new, 
     discretionary authority to appeal a decision of a contracting 
     officer not to award a contract under this title. The 
     Administrator would have five days after receiving notice of 
     this adverse decision to notify the contracting officer that 
     SBA may appeal the decision, and within 15 days the 
     Administrator may appeal the decision to the head of the 
     department or agency.
     Section 603. Technical and Conforming Amendments to the Small 
         Business Act.
       The bill amends various provisions of the Small Business 
     Act and the technical and conforming amendments are 
     implemented to effectuate the requirements of the program in 
     a consistent manner with other statute.
     Section 604. Other Technical and Conforming Amendments.
       This section of the bill, addressing other technical and 
     conforming amendments, is intended to amend the Competition 
     in Contracting Act (10 U.S.C. 2304(b)(2)) and (41 U.S.C. 
     253(b)(2)) to allow for HUBZone set-aside procedures in 
     Federal prime contracting for contract requirements in excess 
     of the simplified acquisition threshold. The effect of the 
     bill is to amend the Competition in Contracting Act (10 
     U.S.C. 2304(c)) and (41 U.S.C. 253(c)) to provide HUBZone 
     contracting authority to award HUBZone prime contracts using 
     procedures other than competitive procedures for Federal 
     prime contract requirements greater than the simplified 
     acquisition threshold and not greater than $5,000,000, in the 
     case of manufactured items and $3,000,000, for all other 
     contract opportunities.
     Section 605. Regulations.
       The bill requires the Small Business Administration to 
     publish within 180 days of enactment the final regulations to 
     carry out the program. The Senate bill further requires the 
     Federal Acquisition Regulatory Council to publish the HUBZone 
     implementing regulations within 180 days of the date the SBA 
     published its final regulations.
     Section 606. Report.
       The bill requires the Administrator of the Small Business 
     Administration to submit a report to the Senate and the House 
     of Representatives Committees on Small Business by March 1, 
     2002. The report is to evaluate the implementation of the 
     HUBZone program, as well as the effectiveness of the program.
     Section 607. Authorization of Appropriations.
       The bill amends the Small Business Act to authorize the 
     appropriation of $5,000,000, to the Small Business 
     Administration for implementation of the HUBZone program for 
     each Fiscal Year, 1998, 1999 and 2000.


                  TITLE VII: SERVICE DISABLED VETERANS

       This title includes the House language designed to enhance 
     the Small Business Administration's efforts to improve 
     opportunities for service disabled veterans and provide 
     enhanced outreach to that group. The Congress believes 
     strongly that these individuals deserve far better 
     consideration from the Federal agencies that they are 
     currently receiving.
     Section 701. Purposes.
       This section outlines the intent of the Congress to enhance 
     entrepreneurial opportunities for service disabled veterans 
     and to promote their efforts to participate in the small 
     business community.
     Section 702. Definitions.
       This section defines the terms ``eligible veteran'' and 
     ``small business concern owned and controlled by eligible 
     veterans'' for the purposes of this title and the Act.
     Section 703. Report by the Small Business Administration.
       This section requires the Small Business Administration to 
     study the needs of small businesses owned by eligible 
     veterans and report to the Committees on Small Business of 
     the House and Senate on the steps needed to improve and 
     enhance the role of service disabled veterans in the small 
     business community and the economic mainstream of the 
     country. The Congress expects the Small Business 
     Administration to provide this information in detail and well 
     within the time allotted. The Congress expects the Small 
     Business Administration to reach out for assistance in this 
     task to the various veterans

[[Page S11528]]

     organizations, State run programs for veterans, and other 
     interested groups for assistance in completing this study.
     Section 704. Information Collection.
       This section directs the Secretary of Veterans Affairs, in 
     cooperation with the Administrator of the Small Business 
     Administration, to identify annually the small businesses 
     owned and controlled by eligible veterans and to work to keep 
     them informed concerning Federal procurement opportunities 
     available to them.
     Section 705. State of Small Business Report.
       This section directs the Small Business Administration to 
     include information concerning small businesses owned and 
     controlled by eligible veterans in its annual report to the 
     President and Congress, ``The State of Small Business.''
     Section 706. Loan to Veterans.
       This section reinforces the Small Business Administration's 
     preexisting ability to make loans to small business concerns 
     owned and controlled by service disabled veterans. The 
     Congress takes this step to cure a lingering misunderstanding 
     that the Administration's requested defunding of the 
     Veteran's direct loan program in no way diminishes the Small 
     Business Administration's responsibility to assist veterans 
     through the 7(a) program.
     Section 707. Entrepreneurial Training, Counseling, and 
         Management Assistance.
       This section directs the Administrator to ensure that small 
     business concerns owned and controlled by eligible veterans 
     are given full access to the Small Business Administration's 
     business assistance programs, including SCORE and the Small 
     Business Development Centers.
     Section 708. Grants for Eligible Veterans' Outreach Programs.
       This section amends the Small Business Administration's 
     existing authority to include making grants to, or entering 
     into cooperative agreements with, organizations that have or 
     may establish outreach and assistance programs for eligible 
     veterans.
     Section 709. Outreach for Eligible Veterans.
       This section directs the Administrator of the Small 
     Business Administration, the Secretary of Veterans Affairs, 
     and the Assistant Secretary of Labor for Veterans' Employment 
     and Training to develop cooperatively an outreach and 
     assistance program designed to coordinate the activities of 
     their respective agencies and disseminate the information 
     about those programs to eligible veterans.

  Mr. KERRY. Mr. President, it is with great satisfaction that I rise 
today to speak on behalf of S. 1139, the Small Business Reauthorization 
Act of 1997. The legislation now before the Senate is the product of 
negotiations between the House and Senate to resolve the differences in 
the bill passed by the Senate in early September and the bill crafted 
by Chairman Talent and Congressman LaFalce. I am pleased that so many 
of the provisions of the original Senate bill have been retained in 
virtually identical form, such as the welfare-to-work Microloan 
Initiative, the extension of the Small Business Technology Transfer 
(STTR) program, the Women's Business Centers program and the HUBZone 
Act. I congratulate Chairman Bond for his leadership and stewardship 
through this year's reauthorization process. His willingness to craft a 
bipartisan bill has ensured that the Small Business Administration will 
continue to operate effectively in the years to come providing support 
to thousands of America's small businesses.
  A component of this bill which I believe to be one of the most 
important to assist our aspiring entrepreneurs is the Microloan 
Program. The Microloan Program was created 6 years ago through the 
vision and hard work of Senator Bumpers. Since then, the Microloan 
Program has operated on a pilot basis, providing loans in amounts 
averaging $10,000 to small businesses, and more importantly, providing 
technical assistance to these businesses on how to better operate their 
enterprises. One of the major reasons why new businesses in America 
fail is because so many people who want to start their own companies 
really have little idea on how to conduct the day-to-day financial 
operations that are so crucial to keeping a business afloat and making 
it a successful enterprise. The technical assistance provided by the 
intermediaries in the Microloan Program has had an impressive impact on 
the success of businesses participating in this program. Moreover, the 
losses to the Government have been minuscule, despite the higher risk 
associated with micro lending. In fact, since the Microloan Program has 
been in existence, there has been only one default of an intermediary's 
loan from the SBA. That is an amazing fact, and one which I believe 
demonstrates the financial soundness of the Microloan Program. The 
Congress wholeheartedly supports making the Microloan loan and 
technical assistance programs permanent SBA programs, and do so in this 
bill.
  S. 1139 also contains provisions for a new initiative for the 
Microloan Program, one which will go a step further to reach aspiring 
entrepreneurs who may now be on Government assistance. In addition to 
loans and technical training, participants in this welfare-to-work 
Microloan initiative will be able to receive assistance to help defray 
child care and transportation expenses, two of the biggest obstacles 
welfare recipients face in their attempts to become active, 
contributing members of society. Inclusion of the welfare-to-work 
Microloan Program in the Small Business Reauthorization Act allows SBA 
to apply knowledge learned over the last 6 years to address one of the 
most pressing issues facing us today.
  In June, Senator Domenici, Senator Bond and I introduced the Women's 
Business Centers Act. I am extremely pleased that the major provisions 
of that bill are included in the legislation now before us. 
Authorization for funding the Women's Business Centers Program has been 
doubled in this bill, and extends the eligibility of awardees from 3 
years to 5 years. This bill also provides for studies to be conducted 
on contracting and finance issues as they affect women-owned 
businesses. This section of the Small Business Reauthorization Act will 
strengthen a sector of our economy that contributes over $1.5 trillion 
to the American economy and employs more Americans than Fortune 500 
companies.
  The Small Business Technology Transfer [STTR] program is reauthorized 
for an additional 4 years through this act. An offshoot of the very 
successful SBIR Program, STTR has been joining small businesses and 
non-profit research institutions for the past four years in an attempt 
to make better use of federally sponsored high technology research. 
This bill strengthens the STTR Program by requiring more accurate data 
recording by the SBA and participating agencies, and requires those 
participating agencies to include information regarding the SBIR and 
STTR Programs in their strategic plans required by the Government 
Performance and Results Act. By doing this, we in Congress can better 
evaluate programs such as STTR and what provisions might best assist 
the kind of companies participating in the program and what changes 
could result in a stronger STTR when we revisit it for reauthorization 
4 years from now.
  Chairman Bond led the way on an integral part of the reauthorization 
act, the HUBZones Program. This program seeks to aid small business 
concerns located in the poorest areas of our country by providing 
better opportunities to contract with the Federal Government. The 
HUBZone Act is the result of several years of work by Chairman Bond, 
and I congratulate him and his staff for this legislation which will 
certainly improve the economic situation of many American communities.
  There are a few other components of the reauthorization act that I 
believe warrant mentioning at this time. The Community Development 
Company program, also called the 504 loan program, is continued through 
this legislation and will provide small businesses $2.3 billion of 
needed capital for their plant and equipment needs. The SBA's biggest 
loan program, 7(a), is authorized at $39.5 billion over the next 3 
years, high enough to ensure continued support for those small 
businesses that need extra capital to grow their businesses. In 
addition, this legislation also contains a provision that seeks to 
protect small businesses from the practice of contract bundling, which 
can be harmful to small business. Bundling is when a Federal agency 
rolls several contracts into one big contract. This practice 
effectively bars small businesses from participating in the lucrative 
Federal Government contracting process on those contracts. The language 
contained in this bill will help alleviate this problem to some degree 
so that small businesses are not left out in the cold, and will require 
the Government to keep records on bundled contracts valued at more than 
$5 million.
  The bill before us contains some provisions that the House included 
in their bill and that we have not seen before. One such provision is 
title VII of

[[Page S11529]]

the bill which contains language that directs SBA to conduct a study on 
the potential to aid small businesses that are owned by service 
disabled veterans. I believe it is important to conduct research into 
this issue and see if the opportunity exists to better assist these 
businesses.
  There are other components of the Small Business Reauthorization Act 
which I have not mentioned here but will be helpful to small businesses 
participating in the SBA's programs. The Small Business Investment 
Companies and Small Business Development Centers Programs are both 
modified through this act. The Pilot Preferred Surety Bond Guarantee 
Program is also extended in this legislation.
  Mr. President, I would like to conclude by again thanking the 
Chairman of the Small Business Committee, Senator Bond, for his 
leadership throughout the year on reaching this point and passing what 
I consider to be a very meaningful and effective piece of legislation. 
It is clear that the Small Business Administration will be assured of 
its continued support by Congress as it moves ahead to the 21st century 
assisting the driving force of our economy, American small business.


                        Women's Business Centers

  Mr. DOMENICI. Mr. President, I appreciate the opportunity of 
commending Senator Bond for his efforts in bringing this Small Business 
Reauthorization Act to the floor for consideration. In particular, I am 
grateful for his deep commitment and tireless dedication to improving 
the Small Business Administration's [SBA] Women's Business Centers 
program. As a result of his work, this program will be expanded and 
modified so that it targets more appropriately the thousands of women 
entrepreneurs who provide jobs and economic growth to their local 
communities.
  I also want to commend Congresswoman Nancy Johnson for her strong 
support of this program. My legislation, S. 888, the Women's Business 
Centers Act of 1997, introduced in behalf of myself, Senator Bond, 
Senator Kerry and 23 other cosponsors, was the companion bill to 
Representative Johnson's legislation. Due to the strong bipartisan 
support of Chairman Bond and other members of the Senate Small Business 
Committee, S. 888 was incorporated into this reauthorization bill. 
Congresswoman Johnson has been a long-time and dedicated friend of 
women's business efforts, and I am most appreciative that we were able 
to work together on this important measure.
  Many of us believe that the SBA must give renewed attention to one of 
its smallest but most successful business programs. This legislation, 
therefore, doubles the amount of funds available to Women's Business 
Centers, and it extends the grant period from 3 years to 5 years. It 
also changes the funding formula so that newly created business sites 
will have a more realistic Federal-to-non-Federal matching program. 
This latter issue is important because up to this point, women's 
business centers have been required to meet a much stricter matching 
grant requirement than have other grantees in the SBA's grant programs. 
I remain somewhat concerned, however, that existing business site 
grantees must still bear a slightly higher burden of matching fund 
requirements. Nevertheless, the overall changes to the Women's Business 
Centers Program are noteworthy and extremely positive.
  By passage of this reauthorization language, Congress recognizes the 
essential role of women-owned small businesses to this country's local 
and national economies. Congress also recognizes the necessity of added 
SBA administrative and programmatic support to the women's program. The 
SBA must ensure that the Office of Women's Business Ownership [OWBO] 
has adequate staffing and resources to manage this expanded program. It 
must also provide any supplemental assistance OWBO may need to manage 
its ongoing program while developing new and creative activities to 
enhance its present portfolio. Frankly, a program of this nature 
demands tangible agency commitment to its success. While OWBO and its 
women's business clients have an impressive and outstanding 
programmatic record, this small program deserves much more attention 
from the Agency than it has received thus far. I am hopeful that next 
year and in the years to come the SBA will work more closely with OWBO, 
as well as with Congress, to ensure that women's businesses are 
provided the necessary resources to continue their vital 
entrepreneurial endeavors.
  I believe it is also important to give credit to the many able and 
committed directors and staff of the Women's Business Centers 
throughout the country. I know these professional women, like those of 
Agnes Noonan and her staff in my State of New Mexico, have counseled 
countless thousands of potential business clients and have established 
equal numbers of successful small businesses. Their tasks have not been 
easy, but they have met their management obligations while also 
creating an impressive and wide-ranging network of business colleagues 
to address the special challenges of women-owned businesses. The 
techniques they've learned and the expertise they share with one 
another have been instrumental in the overall success of this SBA 
program.
  Once again, I commend Senator Bond for his attention and commitment 
to the Women's Business Centers Program. His able staff, particularly 
Ms. Suey Howe and Mr. Paul Cooksey, provided excellent professional 
support so that this program was reviewed and modified appropriately. I 
am very pleased Chairman Bond and other members of the committee have 
given this issue the attention it deserves. Women-owned businesses are 
an integral component of our Nation's business sector and are 
instrumental to our country's overall economic health. The efforts of 
the Chairman and the committee will ensure that this SBA business 
program continues its obligations to so many deserving and successful 
women entrepreneurs. Thank you for the opportunity of sharing my 
support of this important program.
  The PRESIDING OFFICER. The question is on agreeing to the motion of 
the Senator from Missouri.
  The motion was agreed to.
  Mr. BOND. Mr. President, I move to reconsider the vote by which the 
motion was agreed to, and I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. BOND. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. LEAHY. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________