[House Report 106-522]
[From the U.S. Government Publishing Office]





106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-522

=======================================================================



 
               SMALL BUSINESS REAUTHORIZATION ACT OF 2000

                                _______
                                

 March 14, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Talent, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3843]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 3843) to reauthorize programs to assist small 
business concerns, and for other purposes, having considered 
the same, report favorably thereon without amendment and 
recommend that the bill do pass.

                                Purpose

    The purpose of H.R. 3843 is to reauthorize the programs and 
operations of the Small Business Administration (SBA). H.R. 
3843 contains the authorization levels for SBA for fiscal years 
2001, 2002, and 2003. It contains no technical or substantive 
changes to any of the programs.

                          Need for Legislation

    The Small Business Administration provides a variety of 
services for small businesses--financial assistance, technical 
assistance, and disaster assistance.

Financial assistance

    The Small Business Administration provides approximately 
$11 billion in financing to small businesses annually. This 
financing is made available through a variety of programs.
    SBA's largest financial program is the Section 7(a) general 
business loan program. The 7(a) program offers loans to small 
businesses through local lending institutions. These loans are 
provided with an SBA guarantee of up to 80 percent and are 
limited to a maximum of $750,000. The 7(a) program has a 
subsidy rate of 1.16% for fiscal year 2000 and an appropriation 
of $107 million, permitting $9.8 billion in lending.
    The Section 504 loan program provides construction, 
renovation and capital investment financing to small businesses 
through certified development companies (CDCs). These CDCs are 
SBA licensed, local business development organizations which 
provide loans of up to $750,000 for small businesses, in 
cooperation with local banks. CDCs provide 40% of the financing 
package, while the bank provides 50%, and the small business 
provides a 10% down payment. CDC funding is obtained through 
issuance of an SBA guaranteed debenture. The 504 program 
currently operates at no cost to the taxpayer but does require 
authorization.
    The microloan program provides small loans of up to $25,000 
to borrowers in low-income areas. In fiscal year 1999 the 
program provided $29 million in loans. In addition, the program 
has a technical assistance aspect that provides managerial and 
business expertise to microloan borrowers. Microloans are made 
by intermediary organizations that specialize in local business 
development. The program has a subsidy rate of 8.54%.
    The Small Business Investment Company (SBIC) program 
provides over $1.5 billion in long term and venture capital 
financing for small business annually. SBICs are venture 
capital firms that leverage private investment dollars with SBA 
guaranteed debentures or participating securities. The SBIC 
debenture program currently operates at a zero subsidy rate and 
requires no taxpayer subsidy. The participating securities 
program has a 1.8% subsidy rate.

Technical assistance

    The SBA provides technical and managerial assistance to 
small businesses through four primary programs--Small Business 
Development Centers (SBDCs), the Service Corps of Retired 
Executives (SCORE), the 7(j) technical assistance program, and 
the Women's Business Center program.
    SBDCS are located primarily at colleges and universities 
and provide assistance through 51 center sites and 
approximately 970 satellite offices. Through a formula of 
matching grants and donations SBDCs offer small businesses 
guidance on marketing, financing, start-up, and other areas. 
The program currently receives $84 million in appropriations.
    SCORE provides small business assistance on-site through 
the volunteer efforts of its members. SCORE volunteers are 
retired business men and women who offer their expertise to 
small businesses. SCORE volunteers are reimbursed for their 
travel expenses and SCORE receives funding as well for a 
website and offices in Washington, DC.
    The 7(j) program provides financing for technical 
assistance to the minority contracting community primarily 
through courses and direct assistance from management 
consultants. In addition, the program provides assistance for 
participants to attend business administration classes offered 
through several colleges and universities.
    The Women's Business Center program provides five year 
grants matched by non-federal funds to private sector 
organizations to establish business training centers for women. 
Depending on the needs of the community, centers teach women 
the principles of finance, management and marketing as well as 
specialized topics such government contracting or starting 
home-based businesses. There are currently 81 centers in 47 
states in rural, urban and suburban locations.

Disaster assistance

    The Small Business Administration also provides disaster 
loan assistance to homeowners and small businesses nationwide. 
This program is a key component of the overall Federal recovery 
effort for communities struck by natural disasters. This 
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--a lower rate, not to exceed four percent is 
offered to applicants with no credit available elsewhere, while 
a rate of a maximum of eight percent is available for other 
borrowers.

                            Committee Action


                       hearing on the sba budget

    On March 1, 2000 at 10:00 a.m., the Committee on Small 
Business convened a hearing to discuss the Administration's 
budget submission for fiscal year 2001, their legislative 
proposals, and the reauthorization of the SBA's programs. The 
Committee received testimony from five witnesses: Hon. Aida 
Alvarez, Administrator of the Small Business Administration; 
Mr. Anthony Wilkinson, President of the National Association of 
Government Guaranteed Lenders; Mr. Lee Mercer, President of the 
National Association of Small Business Investment Companies; 
Mr. Woody McCutchen, Executive Director of the Association of 
Small Business Development Centers; Ms. Caroline Hayashi, 
representing the Association for enterprise Opportunity; and 
Mr. John Geigel, Vice President for Government Relations of the 
National Association of Development Companies.
    Ms. Alvarez's testimony supported the Administration's 
request.
    Mr. Wilkinson testified in support of the proposed 2001 
budget. He also expressed his organization's support for 
increase authorization levels for fiscal year 2001, 2002, and 
2003. He suggested authorization levels of 14.5, 15 and 16 
billion dollars for fiscal years 2001, 2002 and 2003 
respectively.
    Mr. Mercer testified in support of the Administration's 
budget request for the SBIC program and recommended 
participating securities program levels of 2.5, 3.25, and 4 
billion dollars for fiscal years 2001, 2002, 2003 respectively. 
He also recommended debenture program levels of 1, 1.5, and 2 
billion dollars for fiscal years 2001, 2002, and 2003, 
respectively.
    Mr. Geigel generally supported the SBA budget for 2001. On 
behalf of NADCO he suggested 504 program authorizations of 
3.75, 4.5, and 5 billion dollars for fiscal years 2001, 2002, 
and 2003, respectively.
    Mr. McCutchen discussed the needs of the Small Business 
Development Center (SBDC) program and expressed support for the 
Administration's request for fiscal year 2001. However, he 
asked that the committee consider reauthorizing the SBDC 
program at $100 million per year.
    During the hearing Chairman Talent questioned Administrator 
Alvarez on the proliferation of unauthorized programs at the 
SBA. In particular, he questioned the requests for $6.6 million 
for the Business Linc program and $5 million for the e-commerce 
initiative. The Chairman expressed doubts on the efficiency of 
operating technical assistance programs at so many levels 
versus a consolidation of effort and services. He was 
particularly concerned that the Administrator could not provide 
the Committee with a clear explanation of purpose and operation 
of the Business Linc program or the e-commerce initiative.
    Ranking Member Velazquez questioned the Administrator on 
the status of the procurement center representatives (PCRs) at 
the SBA's Office of Government Contracting. PCRs are SBA 
employees stationed at major procurement centers in order to 
assist in identifying and advertising procurement opportunities 
for small business. Ms. Velazquez questioned why the SBA had 
failed to assign PCRs to several major procurement centers and 
had not requested any funding for PCR staff in the 2001 budget. 
Ms. Velazquez was concerned that, for example, there were no 
PCRs stationed in Virginia, a state with a large percentage of 
federal procurement activity.
    Representative Pascrell questioned the Administrator on the 
efforts to implement the HUBZone program. Mr. Pascrell was 
concerned that SBA had drafted the regulations in an overly 
restrictive fashion which had caused anomalies in the program's 
application. Of particular concern were instances where small 
businesses were not being considered eligible for the HUBZone 
program because they were literally across the street from the 
designated HUBZone. Mr. Pascrell expressed his belief that 
these businesses, which hired significantly from the HUBZone 
communities, were being denied opportunities to participate 
even though they were fulfilling the goal of the program--
employment in low income areas.
    The Administrator replied that while she understood Mr. 
Pascrell's position she was constrained by the statute.

                       consideration of h.r. 3843

    At 10:00 a.m. on March 9, 2000, the Committee on Small 
Business met to consider and report H.R. 3843 and H.R. 3845. 
The Chairman declared H.R. 3843 open for amendment at any point 
and no amendments were offered. The Chairman then moved the 
bill be reported, and at 10:10 a.m., by a voice vote, a quorum 
being present, the committee passed H.R. 3843 and ordered it 
reported.

                      Section-by-Section Analysis


Section 1. Short title

Section 2. Reauthorization of small business programs

    This section provides the authorized appropriation levels 
for the following programs: Section 7(a) general business 
loans, Section 504 Certified Development Company loans, direct 
microloans, guaranteed microloans, microloan technical 
assistance, Defense Transition (DELTA) loans, Small Business 
Investment Company debentures, Small Business Investment 
Company participating securities, Surety Bonds guarantees, 
SCORE, disaster loans, and salaries and expenses.
    The following are the authorizations levels for the 
financial programs:

                        [In millions of dollars]
------------------------------------------------------------------------
                                            2001       2002       2003
------------------------------------------------------------------------
7(a)...................................    $14,500    $15,000    $16,000
504....................................      4,000      4,500      5,000
Microloan..............................         60         80        100
Microloan TA...........................         50         70         90
Microloan gty..........................        200        250        300
SBIC debentures........................      1,500      2,500      3,000
SBIC part. Securities..................      2,500      3,500      4,000
Surety bonds...........................      4,000      5,000      6,000
------------------------------------------------------------------------

    This section also authorizes the Service Corps of Retired 
Executive (SCORE). SCORE will be authorized at 5, 6, and 7 
million dollars for fiscal years 2001, 2002, and 2003, 
respectively.
    Section 2 also contains provisions authorizing funding for 
salaries and expenses at the Small Business Administration. 
These authorizations are established as ``such sums as may be 
necessary''. However, separate authorizations are established 
for direct administration of the 7(a), 504 and microloan 
programs and for the operations of the Office of Investment. 
The committee intends that the funds authorized for the direct 
administration of the loan programs be used solely for 
headquarters operations and not field services. These 
operations are authorized at 14, 16, and 17 million dollars for 
fiscal years 2001, 2002, 2003, respectively.

Section 3. Additional reauthorizations

    This section authorizes six programs:
    (a) Small Business Development Centers Program--Increases 
the authorization level from $95,000,000 to $125,000,000.
    (b) Drug Free Workplace--Extends authorization through 
fiscal year 2003 at $5,000,000 per year.
    (c) HUBZones--Authorizes appropriations of $10,000,000 per 
year through fiscal year 2003.
    (d) National Women's Business Council--Increases 
authorization to $1,000,000 per year and extends authorization 
through fiscal year 2003.
    (e) Very Small Business Concerns--Extends authorization 
through September 30, 2003.
    (f) SDB Certification--Extends authorization through 
September 30, 2003.

                      Committee Estimate of Costs

    Pursuant to the Congressional Budget Act of 1974, the 
Committee estimates that the reauthorization of the Small 
Business Act contained in H.R. 3843, if fully funded, will 
increase discretionary spending over the next five fiscal years 
by approximately $2.0 billion. The Committee also estimates 
that H.R. 3843 will not affect direct spending or receipts. 
This estimate concurs with Congressional Budget Office (CBO) 
estimates.
    Furthermore, pursuant to clause 3(d)(2)(A) of rule XIII of 
the Rules of the House of Representatives, the Committee 
estimates that implementation of H.R. 3843 will not 
significantly increase administrative costs.

                           Oversight Findings

    In accordance with clause 4(c)(2) of rule X of the Rules of 
the House of Representatives, the Committee states that no 
oversight findings or recommendations have been made by the 
Committee on Government Reform with respect to the subject 
matter contained in H.R. 3843.
    In accordance with clause (2)(b)(1) of rule X of the Rules 
of the House of Representatives, the oversight findings and 
recommendations of the Committee on Small Business with respect 
to the subject matter contained in H.R. 3843 are incorporated 
into the descriptive portions of this report.

                 Statement of Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, clause 18, of the 
Constitution of the United States.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

SMALL BUSINESS ACT

           *       *       *       *       *       *       *


  Sec. 20. (a) * * *

           *       *       *       *       *       *       *

  (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
                          (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.
  Sec. 21. (a)(1) * * *

           *       *       *       *       *       *       *

  (4) Small business development center program level.--
          (A) * * *

           *       *       *       *       *       *       *

          (C) National program.--
                  (i) * * *

           *       *       *       *       *       *       *

                  (iii) National program.--There are authorized 
                to be appropriated to carry out the national 
                program under this section--
                          (I) $85,000,000 for fiscal year 1998;
                          (II) $90,000,000 for fiscal year 
                        1999; and
                          (III) [$95,000,000] $125,000,000 for 
                        fiscal year 2000 and each fiscal year 
                        thereafter.

           *       *       *       *       *       *       *


SEC. 27. DRUG-FREE WORKPLACE DEMONSTRATION PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Authorization.--
          (1) In general.--There is authorized to be 
        appropriated to carry out this section, [$10,000,000 
        for fiscal years 1999 and 2000] $5,000,000 for each of 
        fiscal years 2001 through 2003. Amounts made available 
        under this subsection shall remain available until 
        expended.

           *       *       *       *       *       *       *


SEC. 31. HUBZONE PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

                              ----------                              


           SECTION 411 OF THE WOMEN'S BUSINESS OWNERSHIP ACT

SEC. 411. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There is authorized to be appropriated to 
carry out this title [$600,000, for each of fiscal years 1998 
through 2000,] $1,000,000 for each of fiscal years 2001 through 
2003, of which $200,000 shall be available in each fiscal year 
to carry out sections 409 and 410.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 304 OF THE SMALL BUSINESS ADMINISTRATION REAUTHORIZATION AND 
                         AMENDMENTS ACT OF 1994

SEC. 304. PILOT PROGRAM FOR VERY SMALL BUSINESS CONCERNS.

  (a) * * *

           *       *       *       *       *       *       *

  (i) Program Term.--Implementation of the program shall begin 
not later than August 30, 1995. The program authorized by this 
section shall expire on September 30, [2000] 2003.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 7102 OF THE FEDERAL ACQUISITION STREAMLINING ACT OF 1994

SEC. 7102. CONTRACTING PROGRAM FOR CERTAIN SMALL BUSINESS CONCERNS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Termination.--This section shall cease to be effective at 
the end of September 30, [2000] 2003.

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