Congressional Record, Volume 146 Issue 29 (Wednesday, March 15, 2000)

[Congressional Record Volume 146, Number 29 (Wednesday, March 15, 2000)]
[House]
[Pages H1030-H1039]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

SMALL BUSINESS REAUTHORIZATION ACT OF 2000

Mr. HASTINGS of Washington. Mr. Speaker, by direction of the
Committee on Rules, I call up House Resolution 439 and ask for its
immediate consideration.
The Clerk read the resolution, as follows:

H. Res. 439

Resolved, That at any time after the adoption of this
resolution the Speaker may, pursuant to clause 2(b) of rule
XVIII, declare the House resolved into the Committee of the
Whole House on the state of the Union for consideration of
the bill (H.R. 3843) to reauthorize programs to assist small
business concerns, and for other purposes. The first reading
of the bill shall be dispensed with. All points of order
against consideration of the bill are waived. General debate
shall be confined to the bill and shall not exceed one hour
equally divided and controlled by the chairman and ranking
minority member of the Committee on Small Business. After
general debate the bill shall be considered for amendment
under the five-minute rule. Each section of the bill shall be
considered as read. During consideration of the bill for
amendment, the Chairman of the Committee of the Whole may
accord priority in recognition on the basis of whether the
Member offering an amendment has caused it to be printed in
the portion of the Congressional Record designated for that
purpose in clause 8 of rule XVIII. Amendments so printed
shall be considered as read. The Chairman of the Committee of
the Whole may: (1) postpone until a time during further
consideration in the Committee of the Whole a request for a
recorded vote on any amendment; and (2) reduce to five
minutes the minimum time for electronic voting on any
postponed question that follows another electronic vote
without intervening business, provided that the minimum time
for electronic voting on the first in any series of questions
shall be 15 minutes. At the conclusion of consideration of
the bill for amendment the Committee shall rise and report
the bill to the House with such amendments as may have been
adopted. The previous question shall be considered as ordered
on the bill and amendments thereto to final passage without
intervening motion except one motion to recommit with or
without instructions.
Sec. 2. House Resolution 432 is laid on the table.

Mr. HASTINGS of Washington. Mr. Speaker, for purposes of debate only,
I yield the customary 30 minutes to the distinguished gentleman from
Ohio (Mr. Hall), pending which I yield myself such time as I may
consume. During consideration of this resolution, all time yielded is
for the purpose of debate only.
(Mr. HASTINGS of Washington asked and was given permission to revise
and extend his remarks.)
Mr. HASTINGS of Washington. Mr. Speaker, H. Res. 439 would grant H.R.
3843, the Small Business Reauthorization Act of 2000, an open rule
waiving all points of order against consideration of the bill. The rule
provides one hour of general debate to be equally divided between the
chairman and ranking member of the Committee on Small Business.
The rule provides that the bill shall be open to amendment by section
and authorizes the Chair to accord priority in recognition to Members
who have preprinted their amendments in the Congressional Record.
The rule also allows the chairman of the Committee of the Whole to
postpone votes during consideration of the bill and to reduce voting
time to 5 minutes on a postponed question if the vote follows a 15-
minute vote.
Finally, the rule provides one motion to recommit with or without
instructions and lays H. Res. 432, providing for consideration of the
conference report to accompany S. 376, on the table.
H.R. 3843 reauthorizes a number of worthwhile Federal programs
established to assist small businesses all across the country. In
addition to SBA's various loan programs, the agency's management
training and entrepreneurial counseling have proven very helpful to
owners and operators of the smaller firms that are responsible for
creating the majority of new jobs in our expanding economy.
In addition, Mr. Speaker, the bill makes a number of technical
corrections to the 1958 Small Business Investment Act in order to
increase the flexibility of the Small Business Investment Company
program, and improve small business access to this program.
Mr. Speaker, as a long-time small business owner myself, I know
firsthand what an important contribution small businesses make to the
economy and the quality of life in every community. Helping small
businesses get started and continue to grow is important to all of us.

[[Page H1031]]

The availability of capital and access to expert advice are among the
greatest challenges facing our new business owners, and meeting those
challenges is the heart of the Small Business Administration's mission.
Accordingly, Mr. Speaker, I encourage my colleagues to support the
open rule reported by the Committee on Rules, and the underlying bill,
H.R. 3845.
Mr. Speaker, I reserve the balance of my time.
Mr. HALL of Ohio. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to thank the gentleman from Washington (Mr.
Hastings) for yielding me the time.
This is an open rule. As the gentleman from Washington has described,
this rule provides for 1 hour of general debate to be equally divided
and controlled by the chairman and ranking minority member of the
Committee on Small Business.
This rule permits amendments under the 5-minute rule, which is the
normal amending process in the House. All Members on both sides of the
aisle will have the opportunity to offer germane amendments.
Mr. Speaker, small business is the backbone of the American economy.
The Small Business Administration is the key source of assistance to
nurture and grow American small businesses.
The Small Business Administration offers loans, technical assistance,
and disaster assistance to small businesses. Under this bill, these
programs will be authorized through the year 2003.
To give my colleagues an example of how these programs work, I cite
the Small Business Development Center operated by the Dayton Area
Chamber of Commerce in my district. Last year, the center received a
$145,000 grant from the Small Business Administration, which was
matched by non-Federal funds.
With those funds, the center counseled small business owners who did
not have access to expensive, professional advising services.
According to the Dayton Area Chamber of Commerce, the counselors in
the Dayton center worked with more than 1,200 businesses last year. A
total of 429 jobs were created or retained as a result of the center's
services. This is a terrific investment of Federal dollars.
I do regret that this bill does not authorize or reauthorize the
Defense Economic Transition Initiative which targets assistance to
communities hurt economically by declining defense spending. The
authorization for this program expired in 1998.
Still, this is a good bill. It funds important programs to benefit
small businesses. This is an open rule. I urge its adoption.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS of Washington. Mr. Speaker, I advise the gentleman from
Ohio (Mr. Hall) that I have no requests for time, and I reserve the
balance of my time.
Mr. HALL of Ohio. Mr. Speaker, I yield 2 minutes to the gentlewoman
from New York (Ms. Velazquez), who is the ranking minority member.
(Ms. VELAZQUEZ asked and was given permission to revise and extend
her remarks.)
Ms. VELAZQUEZ. Mr. Speaker, I would like to voice my strong support
for the rule and the underlying legislation, H.R. 3845, the Small
Business Reauthorization Act of 2000. This bipartisan legislation will
provide critical funding for such vital programs as SBIC, 7(a),
Microloan, and SBDC, allowing increased lending and technical
assistance to our Nation's small businesses. These programs have played
a large role in helping our Nation's most small businesses create and
maintain this unprecedented economic growth.
This rule is fair and will allow Members to offer any germane
amendments to the legislation. This clean numbers-only reauthorization
bill is the first in recent memories. H.R. 3845 contains no new
programs or policy changes and is due in large part to the hard work of
the chairman and members of the Committee on Small Business that has
passed 13 pieces of legislation, eight of which have been signed by the
President.
This type of regular order is not often found in Congress these days,
and I would like to commend the chairman and the members of our
committee for their hard work.
With the passage of this reauthorization, we will assist in making
the kind of economic decisions that not only will help close the
widening economic gap in this country, but will hopefully keep us on
the right track for continued prosperity in the future.
Mr. HALL of Ohio. Mr. Speaker, I yield 3 minutes to the gentleman
from New Jersey (Mr. Pascrell).
Mr. PASCRELL. Mr. Speaker, I am pleased to come to the floor today to
support the reauthorization of the Small Business Administration. It is
a pleasure for me to serve on this committee where I had the
opportunity to work with small businesses and leaders from throughout
our Nation to develop programs which are so valuable in promoting
economic development in our communities.
This bill has been hashed out and agreed to in a bipartisan manner. I
commend the gentleman from Missouri (Chairman Talent), my good friend,
for making this process so amicable. I commend the gentlewoman from New
York (Ms. Velazquez) for adding to that amicability.
The SBA has done a great job nationwide and more specifically in the
State of New Jersey. In my State, 98.5 percent of the businesses in New
Jersey are small businesses. We need the SBA to make sure these
businesses continue to succeed and employ our workers.
A vote for this reauthorization is a vote to support funding for the
7(a) loan program, which will be able to make $1.3 billion in loans
this upcoming year.
A vote for this reauthorization is also a vote for the 504 loan
program, which provides small businesses with long-term fixed rate
financing for the purchase of land, buildings, and equipment; 504 is
fully funded by revenue from program fees to guarantee $3.75 billion in
loans. In 1999, the 504 loan program led to the creation of 199 jobs in
my district alone. It led to the retention of 37 jobs that were in
danger of disappearing from the district.
In the two counties which comprise my district, Essex and Passaic
County, these loans, both 7(a) and 504, were granted in 1999, 199 of
them. Forty-five of those 199 were given to women-owned businesses in
the amount of $6.1 million. Ninety-one loans were given to the
minority-owned businesses in the amount of $17 million. This program
works. It is results oriented, not process oriented.
I am pleased to support the reauthorization, Mr. Speaker, which
provides funding to the New Jersey Small Business Development Centers,
including three in my own district, which must be funded so that they
might continue their great work.
In 1999, those Small Business Development Centers provided free one-
on-one counseling to over 5,000 New Jersey businesses and small
business owners.
As we enter the 21st century, the SBA is a leader in the field of
technological support in the use of the Internet. Small businesses can
help setting up their business on the Web through programs such as the
one developed in New Jersey at Rutgers University. E-commerce is an
important way for a business to compete and gain access to more
markets.
I want to say, Mr. Speaker, in closing, that the bipartisan work that
is done on the Committee on Small Business should be reflected and
duplicated throughout all of the other departments, all of the other
committees that work in this Congress of the United States. I am
honored to serve, and I commend both the leader and the ranking member.
Mr. HALL of Ohio. Mr. Speaker, I yield 2 minutes to the gentleman
from Missouri (Mr. Skelton).
Mr. SKELTON. Mr. Speaker, small businesses are important to
Missouri's 4th Congressional District. They represent the backbone of
our thriving economy back home and throughout our Nation. It is the
responsibility of the government to provide assistance when needed in
order for new entrepreneurs to succeed.
That is why this legislation, H.R. 3843, should overwhelmingly be
passed by this House.

{time} 1315

It authorizes significant expenditures for programs that impact the
would-be and current small businesses in Missouri every day.

[[Page H1032]]

Under this legislation, the small business development centers, like
the one in Warrensburg, Missouri, are authorized at an appropriate
level of $125 million each year over the next 3 years. These SBDCs
provide invaluable technical assistance to up-and-coming small
businesses throughout our country. I might add that the Missouri SBDC,
led by statewide director Max Summers, is one of the premier SBDC
programs in America.
H.R. 3843 authorizes steadily increased funding for the 7(a) 504
Microloan and SBIC programs. In addition, this measure provides for
funding the administration's New Market Initiatives, the National
Women's Business Council, the HUB Zone program, the Drug-Free Workplace
program, and the SBA's authority to continue the small disadvantaged
business certification program. It also authorizes significant funding
for the disaster loans, surety bond guarantees, and the regular
salaries and expenses for the SBA.
Missouri's 4th Congressional District thrives as a result of a
growing economy, a strong work ethic, and a commitment to success due
in part to the small business owners and their families. Let us pass
this rule and let us pass the bill, H.R. 3843.
Mr. HALL of Ohio. Mr. Speaker, I have no further requests for time,
and I yield back the balance of my time.
Mr. HASTINGS of Washington. Mr. Speaker, I have no further requests
for time, I yield back the balance of my time, and I move the previous
question on the resolution.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the table.
The Speaker pro tempore (Mr. LaHood). Pursuant to House Resolution
439, House Resolution 432 is laid on the table.
The SPEAKER pro tempore (Mr. Hastings of Washington). Pursuant to
House Resolution 439 and rule XVIII, the Chair declares the House in
the Committee of the Whole House on the State of the Union for the
consideration of the bill, H.R. 3843.

{time} 1317

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. 3843) to reauthorize programs to assist small business concerns,
and for other purposes, with Mr. LaHood 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 Missouri (Mr. Talent) and the
gentlewoman from New York (Ms. Velazquez) each will control 30 minutes.
The Chair recognizes the gentleman from Missouri (Mr. Talent).
Mr. TALENT. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, the bill before us is H.R. 3843, the Small Business
Authorization Act of 2000. This is a simple, straightforward,
bipartisan bill. I hope the House will be able to deal with it in an
expeditious fashion.
H.R. 3843 is the 3-year reauthorization for the Small Business
Administration and its programs by the Committee on Small Business.
This year we return to a format the committee has not used since the
1970s. The bill is a straight numbers-only reauthorization bill. There
are no modifications to programs, no new programs, just the
authorization levels for the next 3 years and extensions of existing
programs. The committee has, instead, passed focused bills in
particular areas of the SBA's work where we felt there was statutory
changes that were needed. The House has passed many of those, some of
which have already become law.
Mr. Chairman, let me briefly explain H.R. 3843. The bill contains the
major authorizations for the SBA and its programs, programs which
provide a variety of services for small businesses, financial
assistance, technical and managerial assistance and disaster
assistance.
Every year, the SBA provides over $11 billion in financing to small
businesses. This financing is made available through a variety of
programs and at a cost of less than $200 million appropriated dollars,
a large return for the investment. Programs include the 7(a) program,
the 504 program, the Microloan program, and the SBIC program.
Mr. Chairman, under H.R. 3843, authorizations for those programs will
all rise steadily and modestly over the next 3 years. Our numbers
reflect the administration's estimates and testimony we have heard from
witnesses at the budget hearings for the regular salaries and expenses
for the SBA. I believe the estimates are fair and reasonable
authorization levels designed to provide for growth in the programs and
take into account possible increases in demand.
H.R. 3843 will also reauthorize the SBA's programs for providing
technical and managerial assistance to small businesses. The two most
significant technical assistance programs are the Small Business
Development Centers, or SBDCs, and the Service Corps of Retired
Executives, known as SCORE.
In addition to its business assistance, the SBA also provides
disaster loan assistance to homeowners and small businesses nationwide.
The program is a key component of the overall Federal recovery effort
for communities struck by natural disasters. The assistance is
authorized by section 7(b) of the Small Business Act, which provides
authority for reduced-interest rate loans. Currently, the interest
rates fluctuate according to the statutory formula. The lower rate, not
to exceed 4 percent, is offered to applicants with no credit available
elsewhere, while a rate of a maximum of 8 percent is available for
other borrowers.
Mr. Chairman, I want to speak from personal experience about the
importance of this program. A few years ago, in 1993, large parts of my
district were literally underwater. The help the SBA provided to my
constituents and neighbors at the time was excellent and was vital to
the rebuilding of our communities. Many other Members have experienced
the same things in their districts.
Because of the unpredictable nature of disasters, the committee
provides no specific authorization level for this program, a course of
action that enables us to respond more quickly when additional
assistance is needed.
Mr. Chairman, I urge my colleagues to support H.R. 3843. It is a good
bill, it is a clean bill, and it is a bipartisan bill. It will continue
to provide assistance to small business in a cost-effective and sound
manner and deserves our approval.
Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may
consume.
(Ms. VELAZQUEZ asked and was given permission to revise and extend
her remarks.)
Ms. VELAZQUEZ. Mr. Chairman, I rise in strong support of H.R. 3843,
the Small Business Reauthorization Act of 2000. The passage of this
bipartisan legislation will provide our Nation's small businesses with
the critical assistance they need to succeed.
As many in this Chamber are aware, we are currently experiencing one
of the greatest economic booms in this Nation's history. It has been
said that small business, which makes up 51 percent of the gross
domestic product and contributes 47 percent of all sales in this
country, are the engine that has driven this economic growth. And if
small business has been this engine, then the Small Business
Administration, with its loan and technical assistance programs, has
been fuel for that engine.
SBA fills a critical gap in our small business community, helping
those entrepreneurs who often have great ideas, energy, and drive, but
lack that last element they need to succeed. SBA helps put those pieces
in place, whether through mentoring, assistance with a business plan,
or helping with a loan.
The legislation before us today provides record funding for such
critical programs as SBIC, 7(a), Microloan, and SBIC. These programs
have played a major role in helping our Nation's small businesses
create and maintain our unprecedented economic growth. However, to
continue assisting our Nation's small businesses, access to capital
must be available. To assist with this critical issue, SBA has several
loan programs aimed at helping entrepreneurs launch their businesses.
The flagship of these loan programs is the 7(a) program. Since its
inception,

[[Page H1033]]

this program has made loans to more than 600,000 businesses, totaling
approximately $80 billion. With the passage of today's legislation, we
will be making $1.3 billion more in loans available to small business.
That will give companies like Woodman's Precision Machine in
Massachusetts, that used 7(a) to go into a low-income area and expand
its business, increasing its employment by 20 percent, the chance to
revitalize our urban communities and create new jobs.
The 504 program helps entrepreneurs purchase their place of business
or new equipment. Oftentimes during a debate the question is asked, are
we giving taxpayers a good value for their dollar? I would say to my
colleagues that the 504 program, which is totally run on fees, with no
cost to the taxpayer, is a perfect example where the taxpayer clearly
gets his money's worth.
With today's reauthorization, the program's fees will make sure that
people like Fox Racing USA, a northern California family-owned business
that designs, manufactures and sells motor cross and mountain bikes
apparel, will succeed. Fox Racing USA, through a 504 loan, was able to
purchase a new building, which expanded its business and tripled
employment to 137 full-time jobs. Now, that is economic growth.
SBA programs have also played a critical role in moving individuals
off of welfare. Moving from welfare to work is difficult in itself, but
moving from welfare to owning your own business is pure inspiration,
and SBA has made this happen through its Microloan program.
It helps people like a welfare mother in rural Appalachian Valley,
Ohio, obtain a Microloan to start a home health care business that
first helped move her family off welfare. Eventually, she was able to
hire 52 additional employees, 50 of which were welfare recipients.
Today, with the passage of H.R. 3843, we ensure that these programs
will continue to stand as a foundation as we look ahead to take on the
new frontiers of technology, expansion, e-commerce, and continue to
help bring economic development into low-income, rural and urban
communities. These are the new challenges facing our Nation's small
businesses. And by acting today and passing this legislation, we are
taking that first step on the critical path toward choosing a new
course for tomorrow.
Mr. Chairman, I reserve the balance of my time.
Mr. TALENT. Mr. Chairman, I yield 5 minutes to the gentlewoman from
New York (Mrs. Kelly).
Mrs. KELLY. Mr. Chairman, I thank the gentleman for yielding me this
time.
I rise today in support of H.R. 3843, the Small Business
Reauthorization Act of 2000. This important legislation will
reauthorize lending programs of the SBA, allowing our Nation's small
businesses continued access to capital.
This legislation also reauthorizes other programs, such as the Small
Business Development Centers and the Service Corps of Retired
Executives, the SCORE program, two programs which provide vital support
to a dynamic community of entrepreneurs.
In addition, H.R. 3843 reauthorizes the National Women's Business
Council, a bipartisan organization that advises both the President and
the Congress on issues impacting women-owned businesses.
We are all aware of the role that small business plays in maintaining
the economic strength of the United States. They create the vast
majority of new jobs, provide countless new technological innovations,
and drive economic growth. Technology, particularly the expansion of e-
commerce, has opened doors for men and women who may have only dreamed
50 years ago of one day owning their own business.
While mom and pop stores continue to be a way of life in this
country, ``dot coms'' are attractive enterprises that often allow
business owners to work from home. As the mother of four, I understand
the desire to telecommute or to establish a home-based business. Yet no
matter how fast our small business sector grows, unfortunately there is
often insufficient capital available for entrepreneurs to use to start
up new businesses or for current small business owners to expand
existing ones. This is the void that Small Business Administration's
loan guarantee programs often fill.
Moreover, technical assistance must be readily available to our mom
and pop establishments as they seek new and innovative ways to attract
customers and preserve Main Street. By the same token, even the most
technically skilled young entrepreneurs need information concerning
business plans and the advice of mentors before they launch their
businesses. Millions of our Nation's small business owners find exactly
this kind of assistance at Small Business Development Centers across
the country, and they receive valuable advice from SCORE volunteers
every year.
Without passage of this important legislation, all of these valuable
services would be threatened. Our Nation's small businesses and, indeed
our economy, would suffer as a result.
Mr. Chairman, the gentleman from Missouri (Mr. Talent) and the
gentlewoman from New York (Ms. Velazquez) have worked very closely to
put together a bipartisan bill that deserves the backing of every
Member of this House. I urge my colleagues to support the small
business community and support H.R. 3843.

{time} 1330

Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentlewoman
from New York (Mrs. Carolyn McCarthy), the ranking Democratic member of
the Subcommittee on Tax, Finance, and Exports.
Mrs. McCARTHY of New York. Mr. Chairman, I rise in support of
legislation reauthorizing the Small Business Administration and its
increasingly relied upon programs.
I want to thank the gentleman from Missouri (Chairman Talent) for all
the great work that he has done. It has been a pleasure working with
him over these last few years. And certainly, I have nothing but good
things to say about the gentlewoman from New York (Ms. Velazquez), the
minority ranking leader, my colleague.
Small businesses are the driving force of our economy, and access to
capital is the number one concern. The SBA has filled this void by
providing various loans and other technical assistance programs needed
to survive in today's competitive market.
This legislation also takes into account the changing face of the
business community and provides record funding levels over the next 3
years for core SBA programs.
For example, the 7(a) loan guarantee program, which is SBA's primary
business loan program, is increased to provide $1.3 billion more in
loans.
On Long Island, New York, this is extremely beneficial. Last year,
SBA provided over $13 million in loans and other technical assistance
to 86 small businesses in my district alone. The assistance provided to
these businesses not only benefit them but the surrounding communities,
as well.
As small businesses prosper, so do the neighborhoods in which they
operate. Studies show that small businesses are the leading source of
innovative ideas. That is why it is important to foster their growth
and provide them with the tools and skills they need to succeed in
today's business world.
Of particular importance to small businesses in my district is the
need to take advantage of technology's role in the business sector.
That is why I support funding increases for such incentives as small
business development companies that help small businesses understand
the role of e-commerce to compete in a technology driven economy.
In addition, I also support the Women's Business Center Program.
Mr. TALENT. Mr. Chairman, how much time do both sides have remaining?
The CHAIRMAN. The gentleman from Missouri (Mr. Talent) has 23\1/2\
minutes remaining. The gentlewoman from New York (Ms. Velazquez) has 23
minutes remaining.
Mr. TALENT. Mr. Chairman, I yield 3 minutes to the gentleman from
Pennsylvania (Mr. English).
Mr. ENGLISH. Mr. Chairman, I particularly want to thank the chair and
the ranking member for having produced, on a bipartisan basis, this
very important piece of legislation.
Mr. Chairman, every small business begins with a dream. It is the
dream of a saleswoman who longs to hang out a shingle on Main Street or
the dream of

[[Page H1034]]

an entrepreneur who envisions moving his inventions from his basement
to department store shelves. Unfortunately, not everyone with a dream
has the business experience or the capital to put their ideas in motion
and compete successfully in an increasingly competitive marketplace.
Data from the Bureau of the Census indicates that over 99.9 percent
of new employer firms and business closures are small firms. But with
the help of the U.S. Small Business Administration, more and more small
businesses are swimming upstream and are able to make it, making these
dreams a reality.
Established in 1953, the SBA provides financial, technical, and
management assistance to help Americans launch, manage, and expand
their businesses. The SBA is the Nation's largest single financial
backer of small businesses. They fund dreams; and, on the way, they
have created millions of jobs and helped us build the economy of the
future.
With their $45 billion portfolio of business loans, loan guarantees
and disaster loans, the SBA provides the money that allows the corner
hardware store to expand its line of power tools.
America's 23 million small businesses employ more than 50 percent of
the private workforce. They generate more than half of the Nation's
gross domestic product and they are the principal source of new jobs in
the U.S. economy.
Last year, the SBA offered management and technical assistance to
more than one million small business owners. Training classes allow the
barber shop on Fifth Street to learn how to better manage their time
and resources, while a mentoring program provides an inexperienced
restaurant owner with an experienced one who can counsel and advise the
new business owner.
The SBA has a proven track record of success, which is evident not
only through the success of its members but through the jobs that it
has created and the economic growth that it has fostered.
I urge all the Members in the House to take a look at this
institution to recognize its value in the economy. It is the largest
and most important programmatic commitment that the Federal Government
has made to growing the Federal economy.
I urge my fellow Members to join in my enthusiasm and to vote in
favor of reauthorizing this worthwhile program. I believe that this
institution, which has helped so many small businesses lay the
groundwork for the economy of the future, deserves to be reauthorized.
Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from
Illinois (Mr. Davis) the ranking Democratic member on the Subcommittee
on Government Programs and Oversight.
(Mr. DAVIS of Illinois asked and was given permission to revise and
extend his remarks.)
Mr. DAVIS of Illinois. Mr. Chairman, I rise in support of H.R. 3843,
the Small Business Reauthorization Act.
First of all, I want to commend the gentleman from Missouri (Chairman
Talent) and the gentlewoman from New York (Ms. Velazquez), the ranking
member, and all members of the committee, as well as staff, for working
so well together to provide improved services to small businesses.
Today there are more than 25 million small businesses, the most ever
in the United States. This bill provides America's 25 million small
businesses with billions of dollars in technical assistance and access
to capital programs.
It provides $45.5 billion for the SBA's 7(a) program, a program to
provide loans to small businesses unable to secure financing on
reasonable terms through normal channels; $13 billion for the 504 loan
program to assist community development corporations who provide long-
term fixed rate financing to small businesses in underserved areas; $10
billion for small business investment companies; $450 million in direct
microlending loans and technical assistance; $750 million for small
business development centers; 3 million for the women-owned businesses;
$30 million for HUB zones.
This bill is a testament to the idea that when minds work together
with a common interest, it does not matter which party, which area,
which city, which State that they come from, that they all can come
together for the common purpose of providing access to capital and
direct services to those businesses in great need.
Mr. Chairman, I participated in the opening of a small day-care
center this past Saturday, a $75,000 loan to a young couple. It is the
pride of their life. It is the joy of their being. It is the testament
to their tenacity.
I want to thank this committee for having the insight and foresight
to provide that kind of impetus to growth and development in our
country.
Mr. TALENT. Mr. Chairman, I yield myself such time as I may consume
to say that I always appreciate the comments of the gentleman from
Illinois (Mr. Davis).
Mr. Chairman, I yield 3 minutes to the gentlewoman from California
(Mrs. Bono).
Mrs. BONO. Mr. Chairman, I rise in strong support of H.R. 3843, a
bill to reauthorize the Small Business Administration.
Small business owners across the country recognize the importance of
the Small Business Administration in making sure that our country's
entrepreneurs are provided with the tools they need to grow and
prosper.
As we look to the exciting trade and technology opportunities of the
21st century, it is important that we examine closely the role that the
Small Business Administration is going to play as an advocate for small
business owners and a provider of information and resources.
Over the last several years, there have been proposals to disassemble
the Small Business Administration. While I am a proponent of a leaner
and more streamlined Federal Government, I believe that the SBA
provides a unique service to entrepreneurs. Not only is the SBA a
clearinghouse of information, but it is the main capital source for
many small business owners.
In particular, I believe the work that has been done through the SBA
regarding minority- and women-owned businesses has been particularly
noteworthy. These constituencies have not been traditionally encouraged
to pursue business ventures and, therefore, have not had the resources
at their disposal to provide the know-how and funding to make their
aspirations a reality.
This legislation recognizes the contributions made in these areas and
strengthens the Federal commitment to the Microloan program, the
HUBZone program, and the Women's Business Enterprise Development
programs.
In the 44th District of California, we have seen several successful
SBA efforts. There have been numerous 504 loans granted through the
Certified Development Company program. Not only do these loans provide
jobs, but they also improve the economy of the area as a whole and
serve as an example to others that the SBA system does indeed work.
As well, we have a very successful branch of the Services Corps of
Retired Executives, SCORE. These individuals have served as a valuable
resource to the less experienced entrepreneurs in the area. In one
noteworthy case, a retired accountant from our SCORE chapter was able
to assist a local entrepreneur in putting together a successful
business plan to qualify for an SBA loan. This has led to the business
becoming one of the largest printers in the Coachella Valley.
While we must continue to find ways to improve the system, I
encourage my colleagues to support H.R. 3843, the Small Business
Reauthorization Act, and the Small Business Administration in their
commitment to provide valuable resources for small business owners, the
backbone of our economy.
Ms. VELAZQUEZ. Mr. Chairman, I yield 3 minutes to the gentlewoman
from California (Mrs. Napolitano).
Mrs. NAPOLITANO. Mr. Chairman, I rise today in support of H.R. 3843,
a bill that commits the U.S. Government to support and fund the Small
Business Administration.
As my colleagues have heard, this is a truly bipartisan bill. I
commend both sides, as well as Ms. Alvarez, the administrator, and
staff because this is something truly, truly remarkable.
SBA programs, including its loan and microloan programs, technical
assistance services, and small business development centers, have
helped our Nation's small businesses grow and prosper. To communities
like mine, that

[[Page H1035]]

are so dependent on small businesses, this assistance is a true
lifeline and must be preserved and strengthened.
I strongly believe assisting small business makes good business
sense. There is a false perception that most people work for large
corporations and for big business, but that is just not so. A&G Auto
Sounds from east L.A. is a family-opened business that is being
assisted in a purchase of a building by the SBA.
Let me give my colleagues some clear and convincing reasons why we
must support our small businesses. Small businesses have created more
than 10 million new jobs in the last 4 years and are a critical
component in the implementation of the Welfare to Work initiative.
From 1992 to 1996, small businesses, those that are with less than
500 employees, created all of the net new jobs. Nearly 8 million women-
owned firms now provide jobs for 18.5 million people, more than are
employed in all of the Fortune 500 industrial firms combined. That is
quite an achievement.
Minority-owned businesses have dramatically increased from 8.8
percent to 12.5 percent of all firms. And Hispanic-owned businesses are
now the second fastest growing sector, behind women-owned business.
Let us not forget that small business is the vehicle by which
millions of our constituents access the American dream. Small
businesses create many opportunities for women, for minorities, and for
immigrants.
Our small business owners work harder and longer. Fifty percent of
small business owners work an average of 51 hours a week, as opposed to
34.6 in private industry. And another 26 percent work more than 60
hours a week. These are people with drive, with strong ambition, with
new creativity, and with a desire to succeed.

{time} 1345

They thrive on challenge, and they help make our country the great
country it is. We must pay attention to the needs of our small
businesses, or we risk losing or at least hampering an important and
necessary job creator that has led the way in the last decade to our
current economic recovery. We cannot and must not turn our backs on
them now.
I strongly urge my colleagues to vote for all small businesses by
voting for H.R. 3843 and renew our commitment to the Small Business
Administration.
Mr. TALENT. Mr. Chairman, I yield 3 minutes to the gentleman from New
York (Mr. Sweeney).
(Mr. SWEENEY asked and was given permission to revise and extend his
remarks.)
Mr. SWEENEY. Mr. Chairman, I thank the gentleman from Missouri (Mr.
Talent) for yielding me this time, and I congratulate him and the
ranking member for their fine work on this reauthorization bill.
Mr. Chairman, I rise today to recognize an institution and engine for
economic development in the great State of New York, the New York State
Small Business Development Center. The center is the largest and most
effective organization working directly with the State's small business
community to ensure it survives and flourishes.
Companies grow from entrepreneurs with dreams. The growth of
tomorrow's companies will be as dramatic or beneficial as the past
generation of start-ups if we do not ignore their needs and, where
possible, we reduce the burdens placed upon them. That is because
today's business environment is simply too complex and cumbersome to
give the current entrepreneurs the same chance of success.
Without an affirmative offer of help and assistance, we are stifling
the very backbone that built this great Nation.
Mr. Chairman, for the past 16 years, the New York State Small
Business Development Center has done just that. It has bridged the gap
between government and the entrepreneurial sector to accomplish
results. Since its founding in 1984, the program staff has worked with
over 142,000 New York entrepreneurs and small business owners one on
one, helping them acquire and invest over $1.42 billion and funding
their business dreams and, importantly, creating jobs for others.
In fact, these entrepreneurs have reported that their investments
created or saved 65,000 jobs in New York State alone.
The SBDC does this by delivering critical outside expertise in the
form of business counseling and training centers through 22 regional
offices located on campuses of the State University of New York City
and the State University of New York and private universities
throughout New York. The SBDC staff works one on one with entrepreneurs
to find sources of funding new markets, new technologies, or simply
better ways to deal with the changes in our new economy.
As a result, the SBDC serves all New Yorkers. In particular, the
SBDC, by prioritizing its interests and its needs, provides help to
members of our community that have not always been well represented in
our business sector, such as women, minorities, veterans, and the
disabled. It also emphasizes the economic development priorities of New
York State, including international trade and the encouragement of
technology-based industries.
As the former State labor commissioner in New York, it was my job to
work aggressively on job creation. I speak today of the SBDC's
commitment with that full knowledge and understanding that they are a
critical component, and I ask all my colleagues in this House to join
with me today in showing our resolve by contributing to the further
growth and success of this program, our most cherished resource, our
entrepreneurial citizens.
Ms. VELAZQUEZ. Mr. Chairman, I yield 3 minutes to the gentlewoman
from Ohio (Mrs. Jones).
(Mrs. JONES of Ohio asked and was given permission to revise and
extend her remarks.)
Mrs. JONES of Ohio. Mr. Chairman, today I rise to emphasize the
importance of small business funding. Small businesses are the economic
engine which drive our prosperity.
I would like to thank our chairman, the gentleman from Missouri (Mr.
Talent), and I would like to particularly thank our ranking member, the
gentlewoman from New York (Ms. Velazquez) and her staff. I have been
serving on this committee for the past 15 months and there has not been
a committee meeting where I have not been prepared not only by my staff
but by her staff for all the meetings we have had. I want to thank her
particularly for all the hard work that she and her staff does, too.
Small businesses are increasingly diverse and loans to African
Americans and Hispanics have doubled. However, even considering this
trend, much can still be done to help small businesses succeed. It is
important, as we think about small businesses and we have rid our
country of what we used to call welfare, that there are many people who
used to be on welfare who are capable now of creating businesses
through the Microloan business opportunities.
I would encourage my colleagues to vote in support of that.
One example, a small business in the 11th Congressional District
reports a typical scenario that illustrates the importance of funding
technical assistance for small business development. A woman wanted to
begin a van transportation business for the purpose of taking people
without access to transportation to church, shopping, and to visit
incarcerated families.
She had a good credit rating and an innovative idea but no idea how
to implement it. She took out a second mortgage on her house, bought
vans and hired drivers. Her lack of experience with budgeting her cash
flow, invoicing and collection almost sent her into bankruptcy before
she sought help from the Small Business Development Corporation, which
was able to help her devise a business plan.
Another woman started a cleaning business. She landed a contract from
a housing organization to provide cleaning for 50 houses.
Unfortunately, she did not know how to competitively price her services
or plan her cash flow. Subsequently, she lost the contract. She was
able, through the assistance of the Small Business Development Center,
to get back on track and keep her business going.
Clearly, access to technical expertise and lending programs is
vitally important. In the 11th Congressional District, during 1999,
Small Business Development Corporation's counseling resulted in an
economic impact of $2.5 million in increased sales; $1.9 million in
export contracts; $2.9 million in government contracts and $5.7 million
in business loans from all sources.

[[Page H1036]]

For all of Ohio, SBDCs have been at their funding cap since 1995.
Small business development corporations have been at their funding cap
since 1995. Clearly, this $3.1 million has had a significant effect on
small business growth. This is not charity. It is sound economic
policy.
It is time we stepped up our support to provide greater opportunities
for small business development and that is why I stand in support of
this piece of legislation.
Mr. TALENT. Mr. Chairman, I yield 2 minutes to the gentleman from
Oklahoma (Mr. Watkins).
(Mr. WATKINS asked and was given permission to revise and extend his
remarks.)
Mr. WATKINS. Mr. Chairman, I stand in strong support of H.R. 3843. I
would like to ask my colleagues to envision with me a rural area of
real economic distress since the Great Depression. One of the major
characteristics of such an area is high unemployment, low income, and
also the lack of financing. In fact, most of the small banks only make
some cattle loans and maybe some crop loans and pickup truck loans to
meet existing needs. We could not get Oklahoma City or Tulsa banks to
come down to this rural area. We could not get Fort Worth and Dallas
banks to come north of Red River. It was a no-man's land for finance.
An area in economic distress; yes, but an economically distressed area
that was waiting to be revitalized.
My years of public service have been devoted to building economic
opportunities and job opportunities for our people. I have worked with
a lot of industries, and I have found without question the number one
thing they need to have is financing to help expand businesses and
industries.
The SBA has provided a vital link to be able to provide those
services through Section 7 and also the 504 loan programs. I
established Rural Enterprise, Inc., in my district in order to try to
provide some kind of professional expertise and needed assistance
working with and packaging SBA loans. I am very proud to report to this
Congress that through their efforts we have been able to finance over
$150 million worth of new industry in those areas.
SBA has offered, along with working with EDA, and I know the
gentleman from Ohio (Mr. Traficant) knows I have worked with him on EDA
and we worked on all kinds of financing packages, SBA has been able to
offer an important and essential financing for many people. The
entrepreneurs, and free enterprise individuals, have worked to start
and make their dreams come true and offer jobs for their citizens. That
is truly the American way.
Ms. VELAZQUEZ. Mr. Chairman, I yield 4 minutes to the gentlewoman
from California (Ms. Millender-McDonald).
Ms. MILLENDER-McDONALD. Mr. Chairman, I would like to thank the
chairman and the ranking member for their outstanding work on this
piece of legislation.
Mr. Chairman, I rise today in strong support of H.R. 3843, the Small
Business Reauthorization Act of 2000, which will allow us to
reauthorize the Small Business Administration programs for the next 3
years.
As a member of this committee, I am pleased to note that with the
passage of this authorization bill, we continue the committee's work,
to date having passed 13 bills and the President signing eight of them.
Furthermore, this is the first reauthorization that is a straight
numbers-only bill since the 1970s. This was only made possible by the
hard work that the chairman and ranking member and the committee did to
deal with such issues as the women's business councils and centers,
SBIC, SBIR, and improving loan programs.
This authorization, Mr. Chairman, takes into account the changing
face of small business, which is much more global and are now at 96
percent of all exporters. In the global arena, we have new emerging
markets and these new markets are prime opportunities for all the small
businesses to become a part of this global marketplace.
The latest statistics reveal that small businesses do 30 percent of
the total exporting of goods from this country. Moreover, the funding
to provide programs like the export working capital will continue to
assist small businesses in competing globally.
The 21st century has revealed the increasing diverse nature of small
businesses. Minority-owned firms are growing at a rate of 62 percent.
Women-owned firms are growing at a rate of 43 percent. Through passage
of SBA's loan programs, we have and will continue a trend where loans
to African Americans and Hispanics will double.
While SBA needs to look at small business failure rates, Mr.
Chairman, we have to provide the necessary business infrastructure and
technical assistance to assure the viability of new small businesses.
This reauthorization provides record funding over the next 3 years for
core SBA loan programs.
SBA's flagship program, 7 (A), will make $1.3 billion more in loans
and the Microloan technical assistance program, which will more than
double. Additionally, SBIC equity investment program will make $3.3
million more in loans and, combined with the technical corrections that
were passed out yet in another bill, this program is ready to finance
more businesses in the future.
Small businesses have taken off, Mr. Chairman, and we will be wise to
join the forces to ensure its growth and prosperity.
Mr. Chairman, I would be remiss if I did not mention technology and
its importance to small businesses. Studies show that small businesses
are the leading force of innovation and that small firms produce twice
as many innovations per employee as large firms. This innovation has
been made possible by technology.
The technology provides funding for such incentives as SBDC, which we
will offer to small businesses; and they will have the opportunity to
make the jump to e-commerce and compete in the increasingly technology-
driven economy. The passage of this authorization, Mr. Chairman, will
assist small businesses in obtaining access to capital that is
essential and important for the growth and technical support needed to
remain competitive.
Moreover, the committee will have an aggressive agenda to work toward
passing the President's new market initiative, which is aimed at
helping low- and moderate-income communities.
Last year's New Market tour highlighted portions of my district of
Watts, and I am here to say that it is of great importance to me that
we continue our efforts to help low- and moderate-income communities.
That is why I am urging my colleagues to support H.R. 3843 and continue
to ensure that the Small Business Administration prepare itself and
prepare new small businesses for the growth and the opportunities that
are needed.
Ms. VELAZQUEZ. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, with the passage of this legislation, we will be giving
those with vision and drive a chance to succeed. As discussed earlier,
these programs have helped countless individuals. From New York and
Massachusetts, across this country to California, urban to rural,
family-owned businesses, to welfare recipients, SBA programs have
helped all of them succeed. This has been made possible through access
to over $11 billion in loans annually and their flexible approach to
counseling.
I would like to commend the gentleman from Missouri (Mr. Talent) for
his fairness and hard work on this legislation. We have a unique
opportunity to prepare our Nation's entrepreneurs for a new economy
that is more global, more diverse, and increasingly driven by
technology.
With the passage of this reauthorization, we will assist in making
the kind of economic decisions that not only will help close the
widening economic gap in this country but will hopefully keep us on the
right track for continued prosperity in the future.
Mr. Chairman, I yield back the balance of my time.

{time} 1400

Mr. TALENT. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I want to close by thanking my colleague, the
gentlewoman from New York (Ms. Velazquez). It has been a pleasure
working with her on this and other bills. I appreciate her assistance.
I also want to thank her staffers, Michael Day and Eric Edwards, and my
own staff, Harry Katrichis, Tee Rowe, Paul

[[Page H1037]]

Denham, and Meredith Matty, for their good work.
Finally, Mr. Chairman, I want to urge my colleagues to support H.R.
3843. It has become a truism up here that small business is the
backbone of the economy, and it is. It is also the backbone of our
communities. If you look and see who is running the school bond issue
campaign or the Christmas charity, it is usually the small businesses
in the community.
Increasingly, Mr. Chairman, small business has become the backbone of
opportunity for people in our society as well. Not everybody has the
inclination or resources to get an advanced degree at a college or
university, but everybody has the opportunity to dream of running a
small business. There are a whole lot of people that other Members have
mentioned who come off of welfare or back into the labor force after a
while or work their way up in a company and learn to do something well.
They want to open their own small businesses and make it succeed for
themselves and their families. It happens all the time. It happens more
often because of these programs.
I have become convinced in my time as chairman and on the committee
that these programs reach out and help people who are good risks for
America, and maybe that the market would not help absent these
programs. So I am pleased and proud to sponsor this bill, along with my
friend, the gentlewoman from New York (Ms. Velazquez), and I urge all
of my colleagues to support it.
Mr. PHELPS. Mr. Chairman, I rise today as a cosponsor and strong
supporter of H.R. 3843, The Small Business Administration
Reauthorization Act of 2000. This valuable piece of legislation will
authorize funding for most SBA programs at record levels.
This legislation increases programs for the SBA primary lending
programs, the 7a, 504 and microloan programs. These programs have
played a large role in creating and maintaining this country's
unprecedented economic growth. Increasing access to capital is
essential to the creation and growth of small business.
This legislation reaffirms the SBA's commitment to women business
owners by increasing funding for the Women's Business Centers. These
Women's Business Centers provide assistance in training in finance,
management, marketing, counseling and access to SBA programs and
services.
I would like to compliment the Chairman and Ranking Member for their
hard work and the bipartisan manner in which this committee has
completed its work. This legislation is a straight, numbers-only bill
because of the work the Small Business Committee has done to make
important changes to many small business programs.
Small businesses are vital to my District in Southern Illinois. The
passage of this legislation will allow people the benefit and drive to
succeed. Access to much needed capital in rural areas will assist the
economy and the community. I urge my colleagues to join me in
supporting this important legislation, and look forward to the
continued success of the SBA.
Mr. TALENT. Mr. Chairman, I yield back the balance of my time.

General Leave

Mr. TALENT. Mr. Chairman, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on H.R. 3843.
The CHAIRMAN. Is there objection to the request of the gentleman from
Missouri?
There was no objection.
The CHAIRMAN. All time for general debate has expired.
The bill shall be considered by section as an original bill for the
purpose of amendment, and, pursuant to the rule, each section is
considered read.
During consideration of the bill for amendment, the Chair may accord
priority in recognition to a Member offering an amendment that he has
printed in the designated place in the Congressional Record. Those
amendments will be considered read.
The Chairman of the Committee of the Whole may postpone a request for
a recorded vote on any amendment and may reduce to a minimum of 5
minutes the time for voting on any postponed question that immediately
follows another vote, provided the time for voting on the first
question shall be a minimum of 15 minutes.
The Clerk will designate section 1.
The text of section 1 is as follows:

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Small Business
Reauthorization Act of 2000''.

The CHAIRMAN. Are there any amendments to section 1?
If not, the Clerk will designate section 2.
The text of section 2 is as follows:

SEC. 2. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended by adding at the end the following:
``(g) Fiscal Year 2001.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 2001:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $50,000,000 in technical assistance grants as
provided in section 7(m); and
``(ii) $60,000,000 in direct loans, as provided in 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $19,200,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make--
``(i) $14,500,000,000 in general business loans as provided
in section 7(a);
``(ii) $4,000,000,000 in financings as provided in section
7(a)(13) of this Act and section 504 of the Small Business
Investment Act of 1958;
``(iii) $500,000,000 in loans as provided in section
7(a)(21); and
``(iv) $200,000,000 in loans as provided in section 7(m).
``(C) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is
authorized to make--
``(i) $2,500,000,000 in purchases of participating
securities; and
``(ii) $1,500,000,000 in guarantees of debentures.
``(D) 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
$4,000,000,000 of which not more than $650,000,000 may be in
bonds approved pursuant to section 411(a)(3) of that Act.
``(E) The Administration is authorized to make grants or
enter cooperative agreements for a total amount of $5,000,000
for the Service Corps of Retired Executives program
authorized by section 8(b)(1).
``(2) Additional authorizations.--
``(A) There are authorized to be appropriated to the
Administration for fiscal year 2001--
``(i) $14,000,000 for the direct administration of the loan
programs established under sections 7(a) and 7(m) of this Act
and under title V of the Small Business Investment Act of
1958; and
``(ii) $10,000,000 for the salaries and expenses of the
Investment Division established in title II of the Small
Business Investment Act of 1958.
``(B) There are authorized to be appropriated to the
Administration for fiscal year 2001 such sums as may be
necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses and
necessary loan capital for disaster loans pursuant to section
7(b), and to carry out title IV of the Small Business
Investment Act of 1958, including salaries and expenses of
the Administration.
``(C) Notwithstanding any other provision of this
paragraph, for fiscal year 2001--
``(i) no funds are authorized to be used as loan capital
for the loan program authorized by section 7(a)(21) except by
transfer from another Federal department or agency to the
Administration, unless the program level authorized for
general business loans under paragraph (1)(B)(i) is fully
funded; and
``(ii) the Administration may not approve loans on its own
behalf or on behalf of any other Federal department or
agency, by contract or otherwise, under terms and conditions
other than those specifically authorized under this Act or
the Small Business Investment Act of 1958, except that it may
approve loans under section 7(a)(21) of this Act in gross
amounts of not more than $1,250,000.
``(h) Fiscal Year 2002.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 2002:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $70,000,000 in technical assistance grants as
provided in section 7(m); and
``(ii) $80,000,000 in direct loans, as provided in 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $20,250,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make--
``(i) $15,000,000,000 in general business loans as provided
in section 7(a);
``(ii) $4,500,000,000 in financings as provided in section
7(a)(13) of this Act and section 504 of the Small Business
Investment Act of 1958;
``(iii) $500,000,000 in loans as provided in section
7(a)(21); and
``(iv) $250,000,000 in loans as provided in section 7(m).
``(C) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is
authorized to make--
``(i) $3,500,000,000 in purchases of participating
securities; and

[[Page H1038]]

``(ii) $2,500,000,000 in guarantees of debentures.
``(D) 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
$5,000,000,000 of which not more than $650,000,000 may be in
bonds approved pursuant to section 411(a)(3) of that Act.
``(E) The Administration is authorized to make grants or
enter cooperative agreements for a total amount of $6,000,000
for the Service Corps of Retired Executives program
authorized by section 8(b)(1).
``(2) Additional authorizations.--
``(A) There are authorized to be appropriated to the
Administration for fiscal year 2002--
``(i) $16,000,000 for the direct administration of the loan
programs established under sections 7(a) and 7(m) of this Act
and under title V of the Small Business Investment Act of
1958; and
``(ii) $11,000,000 for the salaries and expenses of the
Investment Division established in title II of the Small
Business Investment Act of 1958.
``(B) There are authorized to be appropriated to the
Administration for fiscal year 2002 such sums as may be
necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses and
necessary loan capital for disaster loans pursuant to section
7(b), and to carry out title IV of the Small Business
Investment Act of 1958, including salaries and expenses of
the Administration.
``(C) Notwithstanding any other provision of this
paragraph, for fiscal year 2002--
``(i) no funds are authorized to be used as loan capital
for the loan program authorized by section 7(a)(21) except by
transfer from another Federal department or agency to the
Administration, unless the program level authorized for
general business loans under paragraph (1)(B)(i) is fully
funded; and
``(ii) the Administration may not approve loans on its own
behalf or on behalf of any other Federal department or
agency, by contract or otherwise, under terms and conditions
other than those specifically authorized under this Act or
the Small Business Investment Act of 1958, except that it may
approve loans under section 7(a)(21) of this Act in gross
amounts of not more than $1,250,000.
``(i) Fiscal Year 2003.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 2003:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $90,000,000 in technical assistance grants as
provided in section 7(m); and
``(ii) $100,000,000 in direct loans, as provided in 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $21,800,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make--
``(i) $16,000,000,000 in general business loans as provided
in section 7(a);
``(ii) $5,000,000,000 in financings as provided in section
7(a)(13) of this Act and section 504 of the Small Business
Investment Act of 1958;
``(iii) $500,000,000 in loans as provided in section
7(a)(21); and
``(iv) $300,000,000 in loans as provided in section 7(m).
``(C) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is
authorized to make--
``(i) $4,000,000,000 in purchases of participating
securities; and
``(ii) $3,000,000,000 in guarantees of debentures.
``(D) 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
$6,000,000,000 of which not more than $650,000,000 may be in
bonds approved pursuant to section 411(a)(3) of that Act.
``(E) The Administration is authorized to make grants or
enter into cooperative agreements for a total amount of
$7,000,000 for the Service Corps of Retired Executives
program authorized by section 8(b)(1).
``(2) Additional authorizations.--
``(A) There are authorized to be appropriated to the
Administration for fiscal year 2003--
``(i) $17,000,000 for the direct administration of the loan
programs established under sections 7(a) and 7(m) of this Act
and under title V of the Small Business Investment Act of
1958; and
``(ii) $12,000,000 for the salaries and expenses of the
Investment Division established in title II of the Small
Business Investment Act of 1958.
``(B) There are authorized to be appropriated to the
Administration for fiscal year 2003 such sums as may be
necessary to carry out the provisions of this Act not
elsewhere provided for, including administrative expenses and
necessary loan capital for disaster loans pursuant to section
7(b), and to carry out title IV of the Small Business
Investment Act of 1958, including salaries and expenses of
the Administration.
``(C) Notwithstanding any other provision of this
paragraph, for fiscal year 2003--
``(i) no funds are authorized to be used as loan capital
for the loan program authorized by section 7(a)(21) except by
transfer from another Federal department or agency to the
Administration, unless the program level authorized for
general business loans under paragraph (1)(B)(i) is fully
funded; and
``(ii) the Administration may not approve loans on its own
behalf or on behalf of any other Federal department or
agency, by contract or otherwise, under terms and conditions
other than those specifically authorized under this Act or
the Small Business Investment Act of 1958, except that it may
approve loans under section 7(a)(21) of this Act in gross
amounts of not more than $1,250,000.''.

The CHAIRMAN. Are there any amendments to section 2?
If not, the Clerk will designate section 3.
The text of section 3 is as follows:

SEC. 3. ADDITIONAL REAUTHORIZATIONS.

(a) Small Business Development Centers Program.--Section
21(a)(4)(C)(iii)(III) of the Small Business Act (15 U.S.C.
648(a)(4)(C)(iii)(III)) is amended by striking
``$95,000,000'' and inserting ``$125,000,000''.
(b) Drug-Free Workplace Program.--Section 27(g)(1) of the
Small Business Act (15 U.S.C. 654(g)(1)) is amended by
striking ``$10,000,000 for fiscal years 1999 and 2000'' and
inserting ``$5,000,000 for each of fiscal years 2001 through
2003''.
(c) HUBZone Program.--Section 31 of the Small Business Act
(15 U.S.C. 657a) is amended by adding at the end the
following new subsection:
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out the program established by
this section $10,000,000 for each of fiscal years 2001
through 2003.''.
(d) Women's Business Enterprise Development Programs.--
Section 411 of the Women's Business Ownership Act (Public Law
105-135; 15 U.S.C. 631 note) is amended by striking
``$600,000, for each of fiscal years 1998 through 2000,'' and
inserting ``$1,000,000 for each of fiscal years 2001 through
2003,''.
(e) Very Small Business Concerns Program.--Section 304(i)
of the Small Business Administration Reauthorization and
Amendments Act of 1994 (Public Law 103-403; 15 U.S.C. 644
note) is amended by striking ``September 30, 2000'' and
inserting ``September 30, 2003''.
(f) Socially and Economically Disadvantaged Businesses
Program.--Section 7102(c) of the Federal Acquisition
Streamlining Act of 1994 (Public Law 103-355; 15 U.S.C. 644
note) is amended by striking ``September 30, 2000'' and
inserting ``September 30, 2003''.

The CHAIRMAN. Are there any amendments to section 3?

Amendment Offered by Mr. Traficant

Mr. TRAFICANT. Mr. Chairman, I offer an amendment.
The Clerk read as follows:
Amendment offered by Mr. Traficant:
At the end of the bill, add the following new section:

SEC. 4. LOAN APPLICATION PROCESSING.

(a) Study.--
(1) In general.--The Administrator of the Small Business
Administration shall conduct a study to determine the average
time that the Administration requires to process an
application for each type of loan or loan guarantee made
under the Small Business Act (15 U.S.C. 631 et seq.).
(2) Transmittal.--Not later than 1 year after the date of
enactment of this section, the Administrator shall transmit
to Congress the results of the study conducted under
paragraph (1).

Mr. TRAFICANT (during the reading). Mr. Chairman, I ask unanimous
consent that the amendment be considered as read and printed in the
Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
Ohio?
There was no objection.
Mr. TALENT. Mr. Chairman, I reserve a point of order against the
amendment.
The CHAIRMAN. The gentleman reserves a point of order against the
amendment.
Mr. TRAFICANT. Mr. Chairman, I want to commend the gentleman from
Missouri (Chairman Talent) and the gentlewoman from New York (Ms.
Velazquez), the ranking member, for working together. I modified my
amendment because, Mr. Chairman, they have stayed steadfast to numbers.
I want to thank SBA for coming to my district and helping my troubled
district to help create jobs. I want to thank the gentlewoman from New
York (Ms. Velazquez) and the gentleman from Missouri (Chairman Talent)
for creating an environment where communities like mine can be helped.
My amendment does something though that deals with numbers. My
business people are concerned about the number of days it takes to
bureaucratically process a loan or loan guarantee.
The Traficant amendment, Mr. Chairman, is strictly a study that says
study the process of an application for each type that they administer
and then report back within 1 year how

[[Page H1039]]

long it takes to complete one of these transactions. That is all it
does. Once we get the information, quite frankly, we will know how long
it takes, we can answer the business community, and hopefully
accelerate that bureaucratic process by, if necessary, substantive
legislative action.
Mr. TALENT. Mr. Chairman, will the gentleman yield?
Mr. TRAFICANT. I yield to the gentleman from Missouri.
Mr. TALENT. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, pursuant to my reservation, let me just ask the
gentleman, he originally packed with the amendment a requirement that
the agency produce regulations pursuant to the study. I understand the
gentleman withdrew that.
Mr. TRAFICANT. Mr. Chairman, reclaiming my time, Amendment No. 2
takes that out. I would like to say to the chairman in lobbying him on
the floor and the gentlewoman from New York (Ms. Velazquez) at this
time, I would like, when further substantive legislation comes up and
when that language would be germane, to include an amendment that says
if it has taken 60 days, let us try and do it in 30 days. It is not in
this amendment. I have stricken it.
Mr. TALENT. Mr. Chairman, if the gentleman will yield further, under
the circumstances, and since I think that the amendment as the
gentleman has changed it is at least borderline in terms of
germaneness, and in view of the gentleman's good faith, I am going to
withdraw my reservation.
I do agree with the amendment. I think we can take and work with it
in conference.
Mr. Chairman, I withdraw my reservation of objection.
Ms. VELAZQUEZ. Mr. Chairman, will the gentleman yield?
Mr. TRAFICANT. I yield to the gentlewoman from New York.
Ms. VELAZQUEZ. Mr. Chairman, I would like to say I join with the
chairman in supporting this amendment. Anything we can do to speed the
processing of loans is beneficial, not only for SBA, but also for the
gentleman's constituents and small businesses.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Ohio (Mr. Traficant).
The amendment was agreed to.
The CHAIRMAN. Are there further amendments?
If not, under the rule, the Committee rises.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Cunningham) having assumed the chair, Mr. LaHood, 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. 3843) to
reauthorize programs to assist small business concerns, and for other
purposes, pursuant to House Resolution 439, he 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.
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.
The SPEAKER pro tempore. The question is on passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Ms. VELAZQUEZ. Mr. Chairman, on that I demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 410,
nays 11, not voting 13, as follows:

[Roll No. 49]

YEAS--410

Abercrombie
Ackerman
Aderholt
Allen
Andrews
Archer
Armey
Baca
Bachus
Baird
Baker
Baldacci
Baldwin
Ballenger
Barcia
Barrett (NE)
Barrett (WI)
Bartlett
Barton
Bass
Bateman
Becerra
Bentsen
Bereuter
Berkley
Berman
Berry
Biggert
Bilbray
Bilirakis
Bishop
Blagojevich
Bliley
Blumenauer
Blunt
Boehlert
Boehner
Bonilla
Bonior
Bono
Borski
Boswell
Boucher
Brady (PA)
Brady (TX)
Brown (OH)
Bryant
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Cannon
Capps
Capuano
Cardin
Carson
Castle
Chabot
Chambliss
Clay
Clayton
Clement
Clyburn
Coble
Combest
Condit
Conyers
Cooksey
Costello
Cox
Coyne
Cramer
Crane
Crowley
Cubin
Cummings
Cunningham
Danner
Davis (FL)
Davis (IL)
Davis (VA)
Deal
DeFazio
DeGette
Delahunt
DeLauro
DeLay
DeMint
Deutsch
Diaz-Balart
Dickey
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Dreier
Duncan
Dunn
Edwards
Ehlers
Ehrlich
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Ewing
Farr
Fattah
Filner
Fletcher
Foley
Forbes
Ford
Fossella
Fowler
Frank (MA)
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gejdenson
Gekas
Gephardt
Gibbons
Gilchrest
Gillmor
Gilman
Gonzalez
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Green (TX)
Green (WI)
Greenwood
Gutierrez
Gutknecht
Hall (OH)
Hall (TX)
Hansen
Hastings (FL)
Hastings (WA)
Hayes
Hayworth
Hefley
Herger
Hill (IN)
Hill (MT)
Hilleary
Hilliard
Hinchey
Hobson
Hoeffel
Hoekstra
Holden
Holt
Hooley
Horn
Houghton
Hoyer
Hulshof
Hunter
Hutchinson
Hyde
Inslee
Isakson
Istook
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Jenkins
Johnson (CT)
Johnson, E.B.
Johnson, Sam
Jones (NC)
Jones (OH)
Kanjorski
Kaptur
Kasich
Kelly
Kennedy
Kildee
Kilpatrick
Kind (WI)
King (NY)
Kingston
Kleczka
Knollenberg
Kolbe
Kucinich
Kuykendall
LaFalce
LaHood
Lampson
Lantos
Largent
Larson
Latham
LaTourette
Lazio
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lofgren
Lowey
Lucas (KY)
Lucas (OK)
Luther
Maloney (CT)
Maloney (NY)
Manzullo
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCrery
McDermott
McGovern
McHugh
McInnis
McIntosh
McIntyre
McKeon
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Metcalf
Mica
Millender-McDonald
Miller (FL)
Miller, Gary
Miller, George
Minge
Mink
Moakley
Mollohan
Moore
Moran (KS)
Moran (VA)
Morella
Murtha
Nadler
Napolitano
Neal
Ney
Northup
Norwood
Nussle
Oberstar
Obey
Olver
Ortiz
Ose
Owens
Oxley
Packard
Pallone
Pascrell
Pastor
Payne
Pease
Pelosi
Peterson (MN)
Peterson (PA)
Petri
Phelps
Pickering
Pickett
Pitts
Pombo
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Quinn
Radanovich
Rahall
Ramstad
Rangel
Regula
Reynolds
Riley
Rivers
Rodriguez
Roemer
Rogan
Rogers
Ros-Lehtinen
Rothman
Roukema
Roybal-Allard
Ryan (WI)
Ryun (KS)
Sabo
Salmon
Sanchez
Sanders
Sandlin
Sawyer
Saxton
Scarborough
Schaffer
Schakowsky
Scott
Sensenbrenner
Serrano
Sessions
Shaw
Shays
Sherman
Sherwood
Shimkus
Shows
Shuster
Simpson
Sisisky
Skeen
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Souder
Spence
Spratt
Stabenow
Stark
Stearns
Stenholm
Strickland
Stump
Stupak
Sununu
Sweeney
Talent
Tancredo
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thompson (MS)
Thornberry
Thune
Thurman
Tiahrt
Tierney
Toomey
Towns
Traficant
Turner
Udall (CO)
Udall (NM)
Upton
Velazquez
Vento
Visclosky
Vitter
Walsh
Wamp
Waters
Watkins
Watt (NC)
Watts (OK)
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Wexler
Weygand
Whitfield
Wicker
Wilson
Wise
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)

NAYS--11

Barr
Canady
Chenoweth-Hage
Coburn
Doolittle
Hostettler
Paul
Rohrabacher
Royce
Sanford
Shadegg

NOT VOTING--13

Boyd
Brown (FL)
Collins
Cook
Hinojosa
John
Klink
Myrick
Nethercutt
Reyes
Rush
Tanner
Walden

{time} 1430

Mr. BARR of Georgia changed his 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.

____________________