[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.




                          ____________________