[Congressional Record (Bound Edition), Volume 145 (1999), Part 14]
[House]
[Pages 20246-20251]
[From the U.S. Government Publishing Office, www.gpo.gov]



  VETERANS ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT ACT OF 1999

  Mr. TALENT. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the bill (H.R. 1568) to provide technical, financial, 
and procurement assistance to veteran owned small businesses, and for 
other purposes, with a Senate amendment thereto, and concur in the 
Senate.
  The Clerk read the title of the bill.
  The Clerk read the Senate amendment, as follows:

       Senate Amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Veterans Entrepreneurship 
     and Small Business Development Act of 1999''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

[[Page 20247]]

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.

                TITLE II--VETERANS BUSINESS DEVELOPMENT

Sec. 201. Veterans business development in the Small Business 
              Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.

                    TITLE III--TECHNICAL ASSISTANCE

Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military 
              reservists' small businesses.

                     TITLE IV--FINANCIAL ASSISTANCE

Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Defense Economic Transition Loan Program.
Sec. 405. State development company program.

                    TITLE V--PROCUREMENT ASSISTANCE

Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.

                 TITLE VI--REPORTS AND DATA COLLECTION

Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Administrator's order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
                      TITLE I--GENERAL PROVISIONS

     SEC. 101. FINDINGS.

       Congress finds the following:
       (1) Veterans of the United States Armed Forces have been 
     and continue to be vital to the small business enterprises of 
     the United States.
       (2) In serving the United States, veterans often faced 
     great risks to preserve the American dream of freedom and 
     prosperity.
       (3) The United States has done too little to assist 
     veterans, particularly service-disabled veterans, in playing 
     a greater role in the economy of the United States by forming 
     and expanding small business enterprises.
       (4) Medical advances and new medical technologies have made 
     it possible for service-disabled veterans to play a much more 
     active role in the formation and expansion of small business 
     enterprises in the United States.
       (5) The United States must provide additional assistance 
     and support to veterans to better equip them to form and 
     expand small business enterprises, thereby enabling them to 
     realize the American dream that they fought to protect.

     SEC. 102. PURPOSE.

       The purpose of this Act is to expand existing and establish 
     new assistance programs for veterans who own or operate small 
     businesses. This Act accomplishes this purpose by--
       (1) expanding the eligibility for certain small business 
     assistance programs to include veterans;
       (2) directing certain departments and agencies of the 
     United States to take actions that enhance small business 
     assistance to veterans; and
       (3) establishing new institutions to provide small business 
     assistance to veterans or to support the institutions that 
     provide such assistance.

     SEC. 103. DEFINITIONS.

       (a) Small Business Act.--Section 3 of the Small Business 
     Act (15 U.S.C. 632) is amended by adding at the end the 
     following:
       ``(q) Definitions Relating to Veterans.--In this Act, the 
     following definitions apply:
       ``(1) Service-disabled veteran.--The term `service-disabled 
     veteran' means a veteran with a disability that is service-
     connected (as defined in section 101(16) of title 38, United 
     States Code).
       ``(2) Small business concern owned and controlled by 
     service-disabled veterans.--The term `small business concern 
     owned and controlled by service-disabled veterans' means a 
     small business concern--
       ``(A) not less than 51 percent of which is owned by one or 
     more service-disabled veterans or, in the case of any 
     publicly owned business, not less than 51 percent of the 
     stock of which is owned by one or more service-disabled 
     veterans; and
       ``(B) the management and daily business operations of which 
     are controlled by one or more service-disabled veterans or, 
     in the case of a veteran with permanent and severe 
     disability, the spouse or permanent caregiver of such 
     veteran.
       ``(3) Small business concern owned and controlled by 
     veterans.--The term `small business concern owned and 
     controlled by veterans' means a small business concern--
       ``(A) not less than 51 percent of which is owned by one or 
     more veterans or, in the case of any publicly owned business, 
     not less than 51 percent of the stock of which is owned by 
     one or more veterans; and
       ``(B) the management and daily business operations of which 
     are controlled by one or more veterans.
       ``(4) Veteran.--The term `veteran' has the meaning given 
     the term in section 101(2) of title 38, United States 
     Code.''.
       (b) Applicability to This Act.--In this Act, the 
     definitions contained in section 3(q) of the Small Business 
     Act, as added by this section, apply.
                TITLE II--VETERANS BUSINESS DEVELOPMENT

     SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS 
                   ADMINISTRATION.

       (a) In General.--Section 4(b)(1) of the Small Business Act 
     (15 U.S.C. 633(b)(1)) is amended--
       (1) in the fifth sentence, by striking ``four Associate 
     Administrators'' and inserting ``five Associate 
     Administrators''; and
       (2) by inserting after the fifth sentence the following: 
     ``One such Associate Administrator shall be the Associate 
     Administrator for Veterans Business Development, who shall 
     administer the Office of Veterans Business Development 
     established under section 32.''.
       (b) Office of Veterans Business Development; Associate 
     Administrator.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 32 as section 34; and
       (2) by inserting after section 31 the following:

     ``SEC. 32. VETERANS PROGRAMS.

       ``(a) Office of Veterans Business Development.--There is 
     established in the Administration an Office of Veterans 
     Business Development, which shall be administered by the 
     Associate Administrator for Veterans Business Development (in 
     this section referred to as the `Associate Administrator') 
     appointed under section 4(b)(1).
       ``(b) Associate Administrator for Veterans Business 
     Development.--The Associate Administrator--
       ``(1) shall be an appointee in the Senior Executive 
     Service;
       ``(2) shall be responsible for the formulation, execution, 
     and promotion of policies and programs of the Administration 
     that provide assistance to small business concerns owned and 
     controlled by veterans and small business concerns owned and 
     controlled by service-disabled veterans. The Associate 
     Administrator shall act as an ombudsman for full 
     consideration of veterans in all programs of the 
     Administration; and
       ``(3) shall report to and be responsible directly to the 
     Administrator.''.

     SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended by inserting after section 32 (as added by 
     this Act) the following:

     ``SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT 
                   CORPORATION.

       ``(a) Establishment.--There is established a federally 
     chartered corporation to be known as the National Veterans 
     Business Development Corporation (in this section referred to 
     as the `Corporation') which shall be incorporated under the 
     laws of the District of Columbia and which shall have the 
     powers granted in this section.
       ``(b) Purposes of the Corporation.--The purposes of the 
     Corporation shall be--
       ``(1) to expand the provision of and improve access to 
     technical assistance regarding entrepreneurship for the 
     Nation's veterans; and
       ``(2) to assist veterans, including service-disabled 
     veterans, with the formation and expansion of small business 
     concerns by working with and organizing public and private 
     resources, including those of the Small Business 
     Administration, the Department of Veterans Affairs, the 
     Department of Labor, the Department of Commerce, the 
     Department of Defense, the Service Corps of Retired 
     Executives (described in section 8(b)(1)(B) of this Act), the 
     Small Business Development Centers (described in section 21 
     of this Act), and the business development staffs of each 
     department and agency of the United States.
       ``(c) Board of Directors.--
       ``(1) In general.--The management of the Corporation shall 
     be vested in a Board of Directors composed of nine voting 
     members and three nonvoting ex officio members.
       ``(2) Appointment of voting members.--The President shall, 
     after considering recommendations which shall be proposed by 
     the Chairmen and Ranking Members of the Committees on Small 
     Business and the Committees on Veterans Affairs of the House 
     of Representatives and the Senate, appoint United States 
     citizens to be voting members of the Board, not more than 5 
     of whom shall be members of the same political party.
       ``(3) Ex officio members.--The Administrator of the Small 
     Business Administration, the Secretary of Defense, and the 
     Secretary of Veterans Affairs shall serve as the nonvoting ex 
     officio members of the Board of Directors.
       ``(4) Initial appointments.--The initial members of the 
     Board of Directors shall be appointed not later than 60 days 
     after the date of enactment of this Act.
       ``(5) Chairperson.--The members of the Board of Directors 
     appointed under paragraph (2) shall elect one such member to 
     serve as chairperson of the Board of Directors for a term of 
     2 years.
       ``(6) Terms of appointed members.--
       ``(A) In general.--Each member of the Board of Directors 
     appointed under paragraph (2) shall serve a term of 6 years, 
     except as provided in subparagraph (B).
       ``(B) Terms of initial appointees.--As designated by the 
     President at the time of appointment, of the members first 
     appointed--
       ``(i) three shall be for a term of 2 years; and
       ``(ii) three shall be for a term of 4 years.
       ``(C) Unexpired terms.--Any member of the Board of 
     Directors appointed to fill a vacancy

[[Page 20248]]

     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of the term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office.
       ``(7) Vacancies.--Any vacancy on the Board of Directors 
     shall be filled in the manner in which the original 
     appointment was made. In the case of a vacancy in the office 
     of the Administrator of the Small Business Administration or 
     the Secretary of Veterans Affairs, and pending the 
     appointment of a successor, an acting appointee for such 
     vacancy may serve as an ex officio member.
       ``(8) Ineligibility for other offices.--No voting member of 
     the Board of Directors may be an officer or employee of the 
     United States while serving as a member of the Board of 
     Directors or during the 2-year period preceding such service.
       ``(9) Impartiality and nondiscrimination.--The Board of 
     Directors shall administer the affairs of the Corporation 
     fairly and impartially and without discrimination.
       ``(10) Obligations and expenses.--The Board of Directors 
     shall prescribe the manner in which the obligations of the 
     Corporation may be incurred and in which its expenses shall 
     be allowed and paid.
       ``(11) Quorum.--Five voting members of the Board of 
     Directors shall constitute a quorum, but a lesser number may 
     hold hearings.
       ``(d) Corporate Powers.--On October 1, 1999, the 
     Corporation shall become a body corporate and as such shall 
     have the authority to do the following:
       ``(1) To adopt and use a corporate seal.
       ``(2) To have succession until dissolved by an Act of 
     Congress.
       ``(3) To make contracts or grants.
       ``(4) To sue and be sued, and to file and defend against 
     lawsuits in State or Federal court.
       ``(5) To appoint, through the actions of its Board of 
     Directors, officers and employees of the Corporation, to 
     define their duties and responsibilities, fix their 
     compensations, and to dismiss at will such officers or 
     employees.
       ``(6) To prescribe, through the actions of its Board of 
     Directors, bylaws not inconsistent with Federal law and the 
     law of the State of incorporation, regulating the manner in 
     which its general business may be conducted and the manner in 
     which the privileges granted to it by law may be exercised.
       ``(7) To exercise, through the actions of its Board of 
     Directors or duly authorized officers, all powers 
     specifically granted by the provisions of this section, and 
     such incidental powers as shall be necessary.
       ``(8) To solicit, receive, and disburse funds from private, 
     Federal, State and local organizations.
       ``(9) To accept and employ or dispose of in furtherance of 
     the purposes of this section any money or property, real, 
     personal, or mixed, tangible or intangible, received by gift, 
     devise, bequest, or otherwise.
       ``(10) To accept voluntary and uncompensated services.
       ``(e) Corporate Funds.--
       ``(1) Deposit of funds.--The Board of Directors shall 
     deposit all funds of the Corporation in federally chartered 
     and insured depository institutions until such funds are 
     disbursed under paragraph (2).
       ``(2) Disbursement of funds.--Funds of the Corporation may 
     be disbursed only for purposes that are--
       ``(A) approved by the Board of Directors by a recorded vote 
     with a quorum present; and
       ``(B) in accordance with the purposes of the Corporation as 
     specified in subsection (b).
       ``(f) Network of Information and Assistance Centers.--In 
     carrying out the purpose described in subsection (b), the 
     Corporation shall establish and maintain a network of 
     information and assistance centers for use by veterans and 
     the public.
       ``(g) Annual Report.--On or before October 1 of each year, 
     the Board of Directors shall transmit a report to the 
     President and the Congress describing the activities and 
     accomplishments of the Corporation for the preceding year and 
     the Corporation's findings regarding the efforts of Federal, 
     State and private organizations to assist veterans in the 
     formation and expansion of small business concerns.
       ``(h) Assumption of Duties of Advisory Committee.--On 
     October 1, 2004, the Corporation established under this 
     section shall assume the duties, responsibilities, and 
     authority of the Advisory Committee on Veterans Affairs 
     established under section 203 of this Act.
       ``(i) Use of Mails.--The Corporation may use the United 
     States mails in the same manner and under the same conditions 
     as the departments and agencies of the United States.
       ``(j) Professional Certification Advisory Board.--
       ``(1) In general.--Acting through the Board of Directors, 
     the Corporation shall establish a Professional Certification 
     Advisory Board to create uniform guidelines and standards for 
     the professional certification of members of the Armed 
     Services to aid in their efficient and orderly transition to 
     civilian occupations and professions and to remove potential 
     barriers in the areas of licensure and certification.
       ``(2) Membership.--The members of the Advisory Board shall 
     serve without compensation, shall meet in the District of 
     Columbia no less than quarterly, and shall be appointed by 
     the Board of Directors as follows:
       ``(A) Private sector members.--The Corporation shall 
     appoint not less than seven members for terms of 2 years to 
     represent private sector organizations and associations, 
     including the American Association of Community Colleges, the 
     Society for Human Resource Managers, the Coalition for 
     Professional Certification, the Council on Licensure and 
     Enforcement, and the American Legion.
       ``(B) Public sector members.--The Corporation shall invite 
     public sector members to serve at the discretion of their 
     departments or agencies and shall--
       ``(i) encourage the participation of the Under Secretary of 
     Defense for Personnel and Readiness;
       ``(ii) encourage the participation of two officers from 
     each branch of the Armed Forces to represent the Training 
     Commands of their branch; and
       ``(iii) seek the participation and guidance of the 
     Assistant Secretary of Labor for Veterans' Employment and 
     Training.
       ``(k) Authorization of Appropriations.--
       ``(1) In general.--Subject to paragraph (2), there are 
     authorized to be appropriated to the Corporation to carry out 
     this section--
       ``(A) $2,000,000 for fiscal year 2000;
       ``(B) $4,000,000 for fiscal year 2001;
       ``(C) $4,000,000 for fiscal year 2002; and
       ``(D) $2,000,000 for fiscal year 2003.
       ``(2) Matching requirement.--
       ``(A) Fiscal year 2001.--The amount made available to the 
     Corporation for fiscal year 2001 may not exceed twice the 
     amount that the Corporation certifies that it will provide 
     for that fiscal year from sources other than the Federal 
     Government.
       ``(B) Subsequent fiscal years.--The amount made available 
     to the Corporation for fiscal year 2002 or 2003 may not 
     exceed the amount that the Corporation certifies that it will 
     provide for that fiscal year from sources other than the 
     Federal Government.
       ``(3) Privatization.--The Corporation shall institute and 
     implement a plan to raise private funds and become a self-
     sustaining corporation.''.
       (b) GAO Report.--Not later than 180 days after the last day 
     of the second fiscal year beginning after the date on which 
     the initial members of the Board of Directors of the National 
     Veterans Business Development Corporation are appointed under 
     section 33(c) of the Small Business Act (as added by this 
     section), the Comptroller General of the United States shall 
     evaluate the effectiveness of the National Veterans Business 
     Development Corporation in carrying out the purposes under 
     section 33(b) of the Small Business Act (as added by this 
     section), and submit to Congress a report on the results of 
     that evaluation.

     SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

       (a) In General.--There is established an advisory committee 
     to be known as the ``Advisory Committee on Veterans Business 
     Affairs'' (in this section referred to as the ``Committee''), 
     which shall serve as an independent source of advice and 
     policy recommendations to--
       (1) the Administrator of the Small Business Administration 
     (in this section referred to as the ``Administrator'');
       (2) the Associate Administrator for Veterans Business 
     Development of the Small Business Administration;
       (3) the Congress;
       (4) the President; and
       (5) other United States policymakers.
       (b) Membership.--
       (1) In general.--The Committee shall be composed of 15 
     members, of whom--
       (A) eight shall be veterans who are owners of small 
     business concerns (within the meaning of the term under 
     section 3 of the Small Business Act (15 U.S.C. 632)); and
       (B) seven shall be representatives of veterans 
     organizations.
       (2) Appointment.--
       (A) In general.--The members of the Committee shall be 
     appointed by the Administrator in accordance with this 
     section.
       (B) Initial appointments.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator shall 
     appoint the initial members of the Committee.
       (3) Political affiliation.--Not more than eight members of 
     the Committee shall be of the same political party as the 
     President.
       (4) Prohibition on federal employment.--
       (A) In general.--Except as provided in subparagraph (B), no 
     member of the Committee may serve as an officer or employee 
     of the United States.
       (B) Exception.--A member of the Committee who accepts a 
     position as an officer or employee of the United States after 
     the date of the member's appointment to the Committee may 
     continue to serve on the Committee for not more than 30 days 
     after such acceptance.
       (5) Term of service.--
       (A) In general.--Subject to subparagraph (B), the term of 
     service of each member of the Committee shall be 3 years.
       (B) Terms of initial appointees.--As designated by the 
     Administrator at the time of appointment, of the members 
     first appointed--
       (i) six shall be appointed for a term of 4 years; and
       (ii) five shall be appointed for a term of 5 years.
       (6) Vacancies.--The Administrator shall fill any vacancies 
     on the membership of the Committee not later than 30 days 
     after the date on which such vacancy occurs.
       (7) Chairperson.--
       (A) In general.--The members of the Committee shall elect 
     one of the members to be Chairperson of the Committee.
       (B) Vacancies in office of chairperson.--Any vacancy in the 
     office of the Chairperson of

[[Page 20249]]

     the Committee shall be filled by the Committee at the first 
     meeting of the Committee following the date on which the 
     vacancy occurs.
       (c) Duties.--The duties of the Committee shall be the 
     following:
       (1) Review, coordinate, and monitor plans and programs 
     developed in the public and private sectors, that affect the 
     ability of small business concerns owned and controlled by 
     veterans to obtain capital and credit and to access markets.
       (2) Promote the collection of business information and 
     survey data as they relate to veterans and small business 
     concerns owned and controlled by veterans.
       (3) Monitor and promote plans, programs, and operations of 
     the departments and agencies of the United States that may 
     contribute to the formation and growth of small business 
     concerns owned and controlled by veterans.
       (4) Develop and promote initiatives, policies, programs, 
     and plans designed to foster small business concerns owned 
     and controlled by veterans.
       (5) In cooperation with the National Veterans Business 
     Development Corporation, develop a comprehensive plan, to be 
     updated annually, for joint public-private sector efforts to 
     facilitate growth and development of small business concerns 
     owned and controlled by veterans.
       (d) Powers.--
       (1) Hearings.--Subject to subsection (e), the Committee may 
     hold such hearings, sit and act at such times and places, 
     take such testimony, and receive such evidence as the 
     Committee considers advisable to carry out its duties.
       (2) Information from federal agencies.--Upon request of the 
     Chairperson of the Committee, the head of any department or 
     agency of the United States shall furnish such information to 
     the Committee as the Committee considers to be necessary to 
     carry out its duties.
       (3) Use of mails.--The Committee may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the United States.
       (4) Gifts.--The Committee may accept, use, and dispose of 
     gifts or donations of services or property.
       (e) Meetings.--
       (1) In general.--The Committee shall meet, not less than 
     three times per year, at the call of the Chairperson or at 
     the request of the Administrator.
       (2) Location.--Each meeting of the full Committee shall be 
     held at the headquarters of the Small Business Administration 
     located in Washington, District of Columbia. The 
     Administrator shall provide suitable meeting facilities and 
     such administrative support as may be necessary for each full 
     meeting of the Committee.
       (3) Task groups.--The Committee may, from time to time, 
     establish temporary task groups as may be necessary in order 
     to carry out its duties.
       (f) Compensation and Expenses.--
       (1) No compensation.--Members of the Committee shall serve 
     without compensation for their service to the Committee.
       (2) Expenses.--The members of the Committee shall be 
     reimbursed for travel and subsistence expenses in accordance 
     with section 5703 of title 5, United States Code.
       (g) Report.--Not later than 30 days after the end of each 
     fiscal year beginning after the date of enactment of this 
     section, the Committee shall transmit to the Congress and the 
     President a report describing the activities of the Committee 
     and any recommendations developed by the Committee for the 
     promotion of small business concerns owned and controlled by 
     veterans.
       (h) Termination.--The Committee shall terminate its 
     business on September 30, 2004.
                    TITLE III--TECHNICAL ASSISTANCE

     SEC. 301. SCORE PROGRAM.

       (a) In General.--The Administrator of the Small Business 
     Administration shall enter into a memorandum of understanding 
     with the Service Core of Retired Executives (described in 
     section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
     637(b)(1)(B)) and in this section referred to as ``SCORE'') 
     to provide for the following:
       (1) The appointment by SCORE in its national office of an 
     individual to act as National Veterans Business Coordinator, 
     whose duties shall relate exclusively to veterans business 
     matters, and who shall be responsible for the establishment 
     and administration of a program to coordinate counseling and 
     training regarding entrepreneurship to veterans through the 
     chapters of SCORE throughout the United States.
       (2) The assistance of SCORE in the establishing and 
     maintaining a toll-free telephone number and an Internet 
     website to provide access for veterans to information about 
     the counseling and training regarding entrepreneurship 
     available to veterans through SCORE.
       (3) The collection of statistics concerning services 
     provided by SCORE to veterans, including service-disabled 
     veterans, for inclusion in each annual report published by 
     the Administrator under section 4(b)(2)(B) of the Small 
     Business Act (15 U.S.C. 633(b)(2)(B)).
       (b) Resources.--The Administrator shall provide to SCORE 
     such resources as the Administrator determines necessary for 
     SCORE to carry out the requirements of the memorandum of 
     understanding specified in paragraph (1).

     SEC. 302. ENTREPRENEURIAL ASSISTANCE.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary of Veterans Affairs, the Administrator of 
     the Small Business Administration, and the head of the 
     association formed pursuant to section 21(a)(3)(A) of the 
     Small Business Act (15 U.S.C. 648(a)(3)(A)) shall enter into 
     a memorandum of understanding with respect to entrepreneurial 
     assistance to veterans, including service-disabled veterans, 
     through Small Business Development Centers (described in 
     section 21 of the Small Business Act (15 U.S.C. 648)) and 
     facilities of the Department of Veterans Affairs. Such 
     assistance shall include the following:
       (1) Conducting of studies and research, and the 
     distribution of information generated by such studies and 
     research, on the formation, management, financing, marketing, 
     and operation of small business concerns by veterans.
       (2) Provision of training and counseling to veterans 
     concerning the formation, management, financing, marketing, 
     and operation of small business concerns.
       (3) Provision of management and technical assistance to the 
     owners and operators of small business concerns regarding 
     international markets, the promotion of exports, and the 
     transfer of technology.
       (4) Provision of assistance and information to veterans 
     regarding procurement opportunities with Federal, State, and 
     local agencies, especially such agencies funded in whole or 
     in part with Federal funds.
       (5) Establishment of an information clearinghouse to 
     collect and distribute information, including by electronic 
     means, on the assistance programs of Federal, State, and 
     local governments, and of the private sector, including 
     information on office locations, key personnel, telephone 
     numbers, mail and electronic addresses, and contracting and 
     subcontracting opportunities.
       (6) Provision of Internet or other distance learning 
     academic instruction for veterans in business subjects, 
     including accounting, marketing, and business fundamentals.
       (7) Compilation of a list of small business concerns owned 
     and controlled by service-disabled veterans that provide 
     products or services that could be procured by the United 
     States and delivery of such list to each department and 
     agency of the United States. Such list shall be delivered in 
     hard copy and electronic form and shall include the name and 
     address of each such small business concern and the products 
     or services that it provides.

     SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR 
                   MILITARY RESERVISTS' SMALL BUSINESSES.

       (a) In General.--Section 8 of the Small Business Act (15 
     U.S.C. 637) is amended by adding at the end the following:
       ``(l) Management Assistance for Small Businesses Affected 
     by Military Operations.--The Administration shall utilize, as 
     appropriate, its entrepreneurial development and management 
     assistance programs, including programs involving State or 
     private sector partners, to provide business counseling and 
     training to any small business concern adversely affected by 
     the deployment of units of the Armed Forces of the United 
     States in support of a period of military conflict (as 
     defined in section 7(n)(1)).''.
       (b) Enhanced Publicity During Operation Allied Force.--For 
     the duration of Operation Allied Force and for 120 days 
     thereafter, the Administration shall enhance its publicity of 
     the availability of assistance provided pursuant to the 
     amendment made by this section, including information 
     regarding the appropriate local office at which affected 
     small businesses may seek such assistance.
       (c) Guidelines.--Not later than 30 days after the date of 
     enactment of this section, the Administrator of the Small 
     Business Administration shall issue such guidelines as the 
     Administrator determines to be necessary to carry out this 
     section and the amendment made by this section.
                     TITLE IV--FINANCIAL ASSISTANCE

     SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

       (a) Definition of Handicapped Individual.--Section 3(f) of 
     the Small Business Act (15 U.S.C. 632(f)) is amended to read 
     as follows:
       ``(f) For purposes of section 7 of this Act, the term 
     `handicapped individual' means an individual--
       ``(1) who has a physical, mental, or emotional impairment, 
     defect, ailment, disease, or disability of a permanent nature 
     which in any way limits the selection of any type of 
     employment for which the person would otherwise be qualified 
     or qualifiable; or
       ``(2) who is a service-disabled veteran.''.
       (b) Authorization To Make Loans.--Section 7(a)(10) of the 
     Small Business Act (15 U.S.C. 636(a)(10)) is amended--
       (1) by inserting ``guaranteed'' after ``provide''; and
       (2) by inserting, ``, including service-disabled 
     veterans,'' after ``handicapped individual''.

     SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.

       (a) Repayment Deferral for Active Duty Reservists.--Section 
     7 of the Small Business Act (15 U.S.C. 636) is amended by 
     adding at the end the following:
       ``(n) Repayment Deferred for Active Duty Reservists.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible reservist.--The term `eligible reservist' 
     means a member of a reserve component of the Armed Forces 
     ordered to active duty during a period of military conflict.
       ``(B) Essential employee.--The term `essential employee' 
     means an individual who is employed by a small business 
     concern and whose managerial or technical expertise is 
     critical to the successful day-to-day operations of that 
     small business concern.
       ``(C) Period of military conflict.--The term `period of 
     military conflict' means--
       ``(i) a period of war declared by the Congress;
       ``(ii) a period of national emergency declared by the 
     Congress or by the President; or

[[Page 20250]]

       ``(iii) a period of a contingency operation, as defined in 
     section 101(a) of title 10, United States Code.
       ``(D) Qualified borrower.--The term `qualified borrower' 
     means--
       ``(i) an individual who is an eligible reservist and who 
     received a direct loan under subsection (a) or (b) before 
     being ordered to active duty; or
       ``(ii) a small business concern that received a direct loan 
     under subsection (a) or (b) before an eligible reservist, who 
     is an essential employee, was ordered to active duty.
       ``(2) Deferral of direct loans.--
       ``(A) In general.--The Administration shall, upon written 
     request, defer repayment of principal and interest due on a 
     direct loan made under subsection (a) or (b), if such loan 
     was incurred by a qualified borrower.
       ``(B) Period of deferral.--The period of deferral for 
     repayment under this paragraph shall begin on the date on 
     which the eligible reservist is ordered to active duty and 
     shall terminate on the date that is 180 days after the date 
     such eligible reservist is discharged or released from active 
     duty.
       ``(C) Interest rate reduction during deferral.--
     Notwithstanding any other provision of law, during the period 
     of deferral described in subparagraph (B), the Administration 
     may, in its discretion, reduce the interest rate on any loan 
     qualifying for a deferral under this paragraph.
       ``(3) Deferral of loan guarantees and other financings.--
     The Administration shall--
       ``(A) encourage intermediaries participating in the program 
     under subsection (m) to defer repayment of a loan made with 
     proceeds made available under that subsection, if such loan 
     was incurred by a small business concern that is eligible to 
     apply for assistance under subsection (b)(3); and
       ``(B) not later than 30 days after the date of enactment of 
     this subsection, establish guidelines to--
       ``(i) encourage lenders and other intermediaries to defer 
     repayment of, or provide other relief relating to, loan 
     guarantees under subsection (a) and financings under section 
     504 of the Small Business Investment Act of 1958 that were 
     incurred by small business concerns that are eligible to 
     apply for assistance under subsection (b)(3), and loan 
     guarantees provided under subsection (m) if the intermediary 
     provides relief to a small business concern under this 
     paragraph; and
       ``(ii) implement a program to provide for the deferral of 
     repayment or other relief to any intermediary providing 
     relief to a small business borrower under this paragraph.''.
       (b) Disaster Loan Assistance for Military Reservists' Small 
     Businesses.--Section 7(b) of the Small Business Act (15 
     U.S.C. 636(b)) is amended by inserting after the undesignated 
     paragraph that begins with ``Provided, That no loan'', the 
     following:
       ``(3)(A) In this paragraph--
       ``(i) the term `essential employee' means an individual who 
     is employed by a small business concern and whose managerial 
     or technical expertise is critical to the successful day-to-
     day operations of that small business concern;
       ``(ii) the term `period of military conflict' has the 
     meaning given the term in subsection (n)(1); and
       ``(iii) the term `substantial economic injury' means an 
     economic harm to a business concern that results in the 
     inability of the business concern--
       ``(I) to meet its obligations as they mature;
       ``(II) to pay its ordinary and necessary operating 
     expenses; or
       ``(III) to market, produce, or provide a product or service 
     ordinarily marketed, produced, or provided by the business 
     concern.
       ``(B) The Administration may make such disaster loans 
     (either directly or in cooperation with banks or other 
     lending institutions through agreements to participate on an 
     immediate or deferred basis) to assist a small business 
     concern that has suffered or that is likely to suffer 
     substantial economic injury as the result of an essential 
     employee of such small business concern being ordered to 
     active military duty during a period of military conflict.
       ``(C) A small business concern described in subparagraph 
     (B) shall be eligible to apply for assistance under this 
     paragraph during the period beginning on the date on which 
     the essential employee is ordered to active duty and ending 
     on the date that is 90 days after the date on which such 
     essential employee is discharged or released from active 
     duty.
       ``(D) Any loan or guarantee extended pursuant to this 
     paragraph shall be made at the same interest rate as economic 
     injury loans under paragraph (2).
       ``(E) No loan may be made under this paragraph, either 
     directly or in cooperation with banks or other lending 
     institutions through agreements to participate on an 
     immediate or deferred basis, if the total amount outstanding 
     and committed to the borrower under this subsection would 
     exceed $1,500,000, unless such applicant constitutes a major 
     source of employment in its surrounding area, as determined 
     by the Administration, in which case the Administration, in 
     its discretion, may waive the $1,500,000 limitation.
       ``(F) For purposes of assistance under this paragraph, no 
     declaration of a disaster area shall be required.''.
       (c) Enhanced Publicity During Operation Allied Force.--For 
     the duration of Operation Allied Force and for 120 days 
     thereafter, the Administration shall enhance its publicity of 
     the availability of assistance provided pursuant to the 
     amendments made by this section, including information 
     regarding the appropriate local office at which affected 
     small businesses may seek such assistance.
       (d) Guidelines.--Not later than 30 days after the date of 
     enactment of this section, the Administrator of the Small 
     Business Administration shall issue such guidelines as the 
     Administrator determines to be necessary to carry out this 
     section and the amendments made by this section.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of the enactment of this section.
       (2) Disaster loans.--The amendments made by subsection (b) 
     shall apply to economic injury suffered or likely to be 
     suffered as the result of a period of military conflict 
     occurring or ending on or after March 24, 1999.

     SEC. 403. MICROLOAN PROGRAM.

       Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C. 
     636(m)(1)(A)(i)) is amended by inserting ``veteran (within 
     the meaning of such term under section 3(q)),'' after ``low-
     income,''.

     SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PROGRAM.

       Section 7(a)(21)(A)(ii) of the Small Business Act (15 
     U.S.C. 636(a)(21)(A)(ii)) is amended by inserting ``or a 
     veteran'' after ``qualified individual''.

     SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

       Section 501(d)(3) of the Small Business Investment Act of 
     1958 (15 U.S.C. 695(d)(3)) is amended--
       (1) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (F), (G), and (H), respectively; and
       (2) by inserting after subparagraph (D) the following:
       ``(E) expansion of small business concerns owned and 
     controlled by veterans, as defined in section 3(q) of the 
     Small Business Act (15 U.S.C. 632(q)), especially service-
     disabled veterans, as defined in such section 3(q),''.
                    TITLE V--PROCUREMENT ASSISTANCE

     SEC. 501. SUBCONTRACTING.

       (a) Statement of Policy.--Section 8(d)(1) of the Small 
     Business Act (15 U.S.C. 637(d)(1)) is amended by inserting 
     ``small business concerns owned and controlled by service-
     disabled veterans,'' after ``small business concerns,'' the 
     first place it appears in the first and second sentences.
       (b) Contract Clause.--The contract clause specified in 
     section 8(d)(3) of the Small Business Act (15 U.S.C. 
     637(d)(3)) is amended as follows:
       (1) Subparagraph (A) of such clause is amended by inserting 
     ``small business concerns owned and controlled by veterans,'' 
     after ``small business concerns,'' the first place it appears 
     in the first and second sentences.
       (2) Subparagraphs (E) and (F) of such clause are 
     redesignated as subparagraphs (F) and (G), respectively, and 
     the following new subparagraph is inserted after subparagraph 
     (D) of such clause:
       ``(E) The term `small business concern owned and controlled 
     by veterans' shall mean a small business concern--
       ``(i) which is at least 51 per centum owned by one or more 
     eligible veterans; or, in the case of any publicly owned 
     business, at least 51 per centum of the stock of which is 
     owned by one or more veterans; and
       ``(ii) whose management and daily business operations are 
     controlled by such veterans. The contractor shall treat as 
     veterans all individuals who are veterans within the meaning 
     of the term under section 3(q) of the Small Business Act.''.
       (3) Subparagraph (F) of such clause, as redesignated by 
     paragraph (2) of this subsection, is amended by inserting 
     ``small business concern owned and controlled by veterans,'' 
     after ``small business concern,'' the first place it appears.
       (c) Conforming Amendments.--Section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) is amended by inserting 
     ``small business concerns owned and controlled by veterans,'' 
     after ``small business concerns,'' the first place it appears 
     in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C), (6)(F), 
     and (10)(B).

     SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

       (a) Government-Wide Participation Goals.--Section 15(g)(1) 
     of the Small Business Act (15 U.S.C. 644(g)(1)) is amended--
       (1) in the first sentence, by inserting ``small business 
     concerns owned and controlled by service disabled veterans,'' 
     after ``small business concerns,'' the first place it 
     appears;
       (2) by inserting after the second sentence, the following: 
     ``The Government-wide goal for participation by small 
     business concerns owned and controlled by service-disabled 
     veterans shall be established at not less than 3 percent of 
     the total value of all prime contract and subcontract awards 
     for each fiscal year.''; and
       (3) in the second to last sentence, by inserting ``small 
     business concerns owned and controlled by service-disabled 
     veterans,'' after ``small business concerns,'' the first 
     place it appears.
       (b) Agency Participation Goals.--Section 15 of the Small 
     Business Act (15 U.S.C. 644(g)(2)) is amended--
       (1) in the first sentence, by inserting ``by small business 
     concerns owned and controlled by service-disabled veterans,'' 
     after ``small business concerns,''; the first place it 
     appears;
       (2) in the second sentence, by inserting ``small business 
     concerns owned and controlled by service-disabled veterans,'' 
     after ``small business concerns,'' the first place it 
     appears; and

[[Page 20251]]

       (3) in the fourth sentence, by inserting ``small business 
     concerns owned and controlled by service-disabled veterans, 
     by'' after ``including participation by''.
                 TITLE VI--REPORTS AND DATA COLLECTION

     SEC. 601. REPORTING REQUIREMENTS.

       (a) Reports to Small Business Administration.--Section 
     15(h)(1) of the Small Business Act (15 U.S.C. 644(h)(1)) is 
     amended by inserting ``small business concerns owned and 
     controlled by veterans (including service-disabled 
     veterans),'' after ``small business concerns,'' the first 
     place it appears.
       (b) Reports to the President and the Congress.--Section 
     15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) is 
     amended--
       (1) by inserting ``and the Congress'' before the period at 
     the end of first sentence; and
       (2) in each of subparagraphs (A), (D), and (E), by 
     inserting ``small business concerns owned and controlled by 
     service-disabled veterans,'' after ``small business 
     concerns,'' the first place it appears.

     SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.

       Section 303(e) of the Small Business Economic Policy Act of 
     1980 (15 U.S.C. 631b(e)) is amended--
       (1) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) small business concerns owned and controlled by 
     veterans, as defined in section 3(q) of the Small Business 
     Act (15 U.S.C. 632(q)), and small business concerns owned and 
     controlled by service-disabled veterans, as defined in such 
     section 3(q).''.

     SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

       The Administrator of the Small Business Administration 
     shall transmit annually to the Committees on Small Business 
     and Veterans Affairs of the House of Representatives and the 
     Senate a report on the needs of small business concerns owned 
     and controlled by veterans and small business concerns owned 
     and controlled by service-disabled veterans, which shall 
     include information on--
       (1) the availability of Small Business Administration 
     programs for such small business concerns and the degree of 
     utilization of such programs by such small business concerns 
     during the preceding 12-month period, including statistical 
     information on such utilization as compared to the small 
     business community as a whole;
       (2) the percentage and dollar value of Federal contracts 
     awarded to such small business concerns during the preceding 
     12-month period, based on the data collected pursuant to 
     section 604(d); and
       (3) proposals to improve the access of such small business 
     concerns to the assistance made available by the United 
     States.

     SEC. 604. DATA AND INFORMATION COLLECTION.

       (a) Information on Federal Procurement Practices.--The 
     Administrator of the Small Business Administration shall, for 
     each fiscal year--
       (1) collect information concerning the procurement 
     practices and procedures of each department and agency of the 
     United States having procurement authority;
       (2) publish and disseminate such information to procurement 
     officers in all Federal agencies; and
       (3) make such information available to any small business 
     concern requesting such information.
       (b) Identification of Small Business Concerns Owned by 
     Eligible Veterans.--Each fiscal year, the Secretary of 
     Veterans Affairs shall, in consultation with the Assistant 
     Secretary of Labor for Veterans' Employment and Training and 
     the Administrator of the Small Business Administration, 
     identify small business concerns owned and controlled by 
     veterans in the United States. The Secretary shall inform 
     each small business concern identified under this paragraph 
     that information on Federal procurement is available from the 
     Administrator.
       (c) Self-Employment Opportunities.--The Secretary of Labor, 
     the Secretary of Veterans Affairs, and the Administrator of 
     the Small Business Administration shall enter into a 
     memorandum of understanding to provide for coordination of 
     vocational rehabilitation services, technical and managerial 
     assistance, and financial assistance to veterans, including 
     service-disabled veterans, seeking to employ themselves by 
     forming or expanding small business concerns. The memorandum 
     of understanding shall include recommendations for expanding 
     existing programs or establishing new programs to provide 
     such services or assistance to such veterans.
       (d) Data Collection Required.--The Federal Procurement Data 
     System described in section 6(d)(4)(A) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 405(d)(4)(A)) shall 
     be modified to collect data regarding the percentage and 
     dollar value of prime contracts and subcontracts awarded to 
     small business concerns owned and controlled by veterans and 
     small business concerns owned and controlled by service-
     disabled veterans.
                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 701. ADMINISTRATOR'S ORDER.

       The Administrator of the Small Business Administration 
     shall strengthen and reissue the Administrator's order 
     regarding the third sentence of section 4(b)(1) of the Small 
     Business Act (15 U.S.C. 633(b)(1)), relating to 
     nondiscrimination and special considerations for veterans, 
     and take all necessary steps to ensure that its provisions 
     are fully and vigorously implemented.

     SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.

       Section 202 of Public Law 94-305 (15 U.S.C. 634b) is 
     amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) in paragraph (11), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(12) evaluate the efforts of each department and agency 
     of the United States, and of private industry, to assist 
     small business concerns owned and controlled by veterans, as 
     defined in section 3(q) of the Small Business Act (15 U.S.C. 
     632(q)), and small business concerns owned and controlled by 
     serviced-disabled veterans, as defined in such section 3(q), 
     and to provide statistical information on the utilization of 
     such programs by such small business concerns, and to make 
     appropriate recommendations to the Administrator of the Small 
     Business Administration and to the Congress in order to 
     promote the establishment and growth of those small business 
     concerns.''.

     SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.

       (a)  In General.--The Comptroller General shall conduct a 
     study on whether there would exist any additional risk or 
     cost to the United States if--
       (1) up to 10 percent of the loans guaranteed under chapter 
     37 of title 38, United States Code, were made for the 
     acquisition or construction of fixed assets used in a trade 
     or business rather than for the construction or purchase of 
     residential buildings; and
       (2) such loans for acquisition or construction of fixed 
     assets were for a term of not more than 10 years and the 
     terms regarding eligibility, loan limits, interest, fees, and 
     down payment were the same as for other loans guaranteed 
     under such chapter.
       (b) Report.--
       (1) In general.--Not later than 180 days after the 
     enactment of this Act, the Comptroller General shall transmit 
     the report described in subsection (a) to the Committees on 
     Veterans' Affairs and the Committees on Small Business of the 
     House of Representatives and the Senate.
       (2) Contents of report.--The report required by paragraph 
     (1) shall specifically address the following:
       (A) With respect to the change in the veterans' housing 
     loan program contemplated under subsection (a):
       (i) The increase or decrease in administrative costs to the 
     Department of Veterans Affairs.
       (ii) The increase or decrease in the degree of exposure of 
     the United States as the guarantor of the loans.
       (iii) The increase or decrease in the Federal subsidy rate 
     that would be possible.
       (iv) Any increase in the interest rate or fees charged to 
     the borrower or lender that would be required to maintain 
     present program costs.
       (B) Information regarding the delinquency rates, default 
     rates, length of time required for recovery after default, 
     for fixed-asset business loans, of a size and duration 
     comparable to those contemplated under subsection (a), made 
     available in the private market or under section 503 of the 
     Small Business Investment Act of 1958.

  Mr. TALENT (during the reading). Mr. Speaker, I ask unanimous consent 
that the Senate amendment be considered as read and printed in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  Ms. VELAZQUEZ. Mr. Speaker, reserving the right to object, but I will 
not object, I rise in strong support of H.R. 1658, the Veterans' 
Entrepreneurship and Small Business Development Act of 1999.
  This Nation will provide opportunity for our Nation's veterans by 
providing them with the resources and assistance that are necessary for 
establishing their own businesses.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Missouri?
  There was no objection.
  The SPEAKER pro tempore. Is there objection to the initial request of 
the gentleman from Missouri?
  There was no objection.
  A motion to reconsider was laid on the table.

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