[House Report 115-645]
[From the U.S. Government Publishing Office]


115th Congress     }                                         {   Report
                           HOUSE OF REPRESENTATIVES
 2d Session        }                                         {  115-645

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



 
               MAIN STREET EMPLOYEE OWNERSHIP ACT OF 2018

                                _______
                                

 April 24, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5236]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 5236) to expand opportunities available to employee-
owned business concerns through Small Business Administration 
loan programs, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Purpose of the Bill and Summary.................................4
  II. Background and the Need for Legislation.........................4
 III. Hearings........................................................5
  IV. Committee Consideration.........................................5
   V. Committee Votes.................................................6
  VI. Section-by-Section Analysis of H.R. 5236........................9
 VII. Congressional Budget Office Cost Estimate......................11
VIII. Unfunded Mandates..............................................11
  IX. New Budget Authority, Entitlement Authority and Tax Expenditure11
   X. Oversight Findings.............................................11
  XI. Statement of Constitutional Authority..........................11
 XII. Congressional Accountability Act...............................12
XIII. Federal Advisory Committee Statement...........................12
 XIV. Statement of No Earmarks.......................................12
  XV. Statement of Duplication of Federal Programs...................12
 XVI. Disclosure of Directed Rule Makings............................12
XVII. Performance Goals and Objectives...............................12
XVIII.Changes in Existing Law Made by the Bill, as Reported..........12


    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Main Street Employee Ownership Act of 
2018''.

SEC. 2. DEFINITIONS.

  In this Act--
          (1) the terms ``Administration'' and ``Administrator'' means 
        the Small Business Administration and the Administrator 
        thereof, respectively;
          (2) the term ``cooperative'' means an entity that is 
        determined to be a cooperative by the Administrator, in 
        accordance with applicable Federal and State laws and 
        regulations;
          (3) the term ``employee-owned business concern'' means--
                  (A) a cooperative in which employees are eligible for 
                membership; and
                  (B) a qualified employee trust;
          (4) the terms ``qualified employee trust'' and ``small 
        business concern'' have the meanings given those terms in 
        section 3 of the Small Business Act (15 U.S.C. 632); and
          (5) the term ``small business development center'' means a 
        small business development center described in section 21 of 
        the Small Business Act (15 U.S.C. 648).

SEC. 3. EXPANSION OF 7(A) LOANS.

  (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
          (1) in paragraph (15)--
                  (A) in subparagraph (A)--
                          (i) by striking ``this subsection to 
                        qualified employee trusts'' and inserting 
                        ``this subsection--
                  ``(i) to qualified employee trusts'';
                          (ii) in clause (i), as so designated--
                                  (I) by inserting ``, and for any 
                                transaction costs associated with 
                                purchasing,'' after ``purchasing'';
                                  (II) by striking the period at the 
                                end and inserting ``; and''; and
                          (iii) by adding at the end the following:
                  ``(ii) to a small business concern under a plan 
                approved by the Administrator, if the proceeds from the 
                loan are only used to make a loan to a qualified 
                employee trust, and for any transaction costs 
                associated with making that loan, that results in the 
                qualified employee trust owning at least 51 percent of 
                the small business concern.'';
                  (B) in subparagraph (B)--
                          (i) in the matter preceding clause (i), by 
                        inserting ``or by the small business concern'' 
                        after ``the trustee of such trust'';
                          (ii) in clause (ii), by striking ``and'' at 
                        the end;
                          (iii) in clause (iii), by striking the period 
                        at the end and inserting ``, and''; and
                          (iv) by adding at the end the following:
                  ``(iv) with respect to a loan made to a trust, or to 
                a cooperative in accordance with paragraph (35)--
                          ``(I) a seller of the small business concern 
                        may remain involved as an officer, director, or 
                        key employee of the small business concern when 
                        a qualified employee trust or cooperative has 
                        acquired 100 percent of ownership of the small 
                        business concern; and
                          ``(II) any seller of the small business 
                        concern who remains as an owner of the small 
                        business concern, regardless of the percentage 
                        of ownership interest, shall be required to 
                        provide a personal guarantee by the 
                        Administration.''; and
                  (C) by adding at the end the following:
          ``(F) A small business concern that makes a loan to a 
        qualified employee trust under subparagraph (A)(ii) is not 
        required to contain the same terms and conditions as the loan 
        made to the small business concern that is guaranteed by the 
        Administration under such subparagraph.
          ``(G) With respect to a loan made to a qualified employee 
        trust under this paragraph, or to a cooperative in accordance 
        with paragraph (35), the Administrator may, as deemed 
        appropriate, elect to not require any mandatory equity to be 
        provided by the qualified employee trust or cooperative to make 
        the loan.''; and
          (2) by adding at the end the following:
          ``(35) Loans to cooperatives.--
                  ``(A) Definition.--In this paragraph, the term 
                `cooperative' means an entity that is determined to be 
                a cooperative by the Administrator, in accordance with 
                applicable Federal and State laws and regulation.
                  ``(B) Authority.--The Administration shall guarantee 
                loans made to a cooperative for the purpose described 
                in paragraph (15).''.
  (b) Delegation of Authority to Preferred Lenders.--Section 5(b)(7) of 
the Small Business Act (15 U.S.C. 634(b)(7)) is amended by inserting 
``, including loans guaranteed under paragraph (15) or (35) of section 
7(a)'' after ``deferred participation loans''.

SEC. 4. SMALL BUSINESS INVESTMENT COMPANY PROGRAM OUTREACH.

  The Administrator shall provide outreach and educational materials to 
companies licensed under section 301(c) of the Small Business 
Investment Act of 1958 (15 U.S.C. 681(c)) to increase the use of funds 
to make investments in company transitions to employee-owned business 
concerns.

SEC. 5. SMALL BUSINESS MICROLOAN PROGRAM OUTREACH.

  The Administrator shall provide outreach and educational materials to 
intermediaries under section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) to increase the use of funds to make loans to employee-owned 
business concerns, including transitions to employee-owned business 
concerns.

SEC. 6. SMALL BUSINESS DEVELOPMENT CENTER OUTREACH AND ASSISTANCE.

  (a) Establishment.--The Administrator shall establish a Small 
Business Employee Ownership and Cooperatives Promotion Program to offer 
technical assistance and training on the transition to employee 
ownership through cooperatives and qualified employee trusts.
  (b) Small Business Development Centers.--
          (1) In general.--In carrying out the program established 
        under subsection (a), the Administrator shall enter into 
        agreements with small business development centers under which 
        the centers shall--
                  (A) provide access to information and resources on 
                employee ownership through cooperatives or qualified 
                employee trusts as a business succession strategy;
                  (B) conduct training and educational activities; and
                  (C) carry out the activities described in 
                subparagraph (U) of section 21(c)(3) of the Small 
                Business Act (15 U.S.C. 648(c)(3)).
          (2) Additional services.--Section 21(c)(3) of the Small 
        Business Act (15 U.S.C. 648(c)(3)) is amended--
                  (A) in subparagraph (S), by striking ``and'' at the 
                end;
                  (B) in subparagraph (T), by striking the period at 
                the end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(U) encouraging and assisting the provision of succession 
        planning to small business concerns with a focus on 
        transitioning to cooperatives, as defined in section 7(a)(35), 
        and qualified employee trusts (collectively referred to in this 
        subparagraph as `employee-owned business concerns'), including 
        by--
                  ``(i) providing training to individuals to promote 
                the successful management, governance, or operation of 
                a business purchased by those individuals in the 
                formation of an employee-owned business concern;
                  ``(ii) assisting employee-owned business concerns 
                that meet applicable size standards established under 
                section 3(a) with education and technical assistance 
                with respect to financing and contracting programs 
                administered by the Administration;
                  ``(iii) coordinating with lenders on conducting 
                outreach on financing through programs administered by 
                the Administration that may be used to support the 
                transition of ownership to employees;
                  ``(iv) supporting small business concerns in 
                exploring or assessing the possibility of transitioning 
                to an employee-owned business concern; and
                  ``(v) coordinating with the cooperative development 
                centers of the Department of Agriculture, the land 
                grant extension network, the Manufacturing Extension 
                Partnership, community development financial 
                institutions, employee ownership associations and 
                service providers, and local, regional and national 
                cooperative associations.''.

SEC. 7. INTERAGENCY WORKING GROUP.

  (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Administrator (or a designee of the Administrator) 
shall coordinate and chair an interagency working group, which shall--
          (1) develop recommendations on how Federal programs can 
        promote, support, and increase the number of employee-owned 
        business concerns;
          (2) ensure coordination with Federal agencies and national 
        and local employee ownership, cooperative, and small business 
        organizations; and
          (3) publish a report on the activities of the interagency 
        working group that is indexed and maintained for public review.
  (b) Meetings.--The interagency working group shall meet at such times 
as determined necessary by the, but not less than biannually. Such 
meetings may occur in person or via electronic resources.

SEC. 8. AMENDMENT TO REPORT TO CONGRESS ON STATUS OF EMPLOYEE-OWNED 
                    FIRMS.

  Section 7(a)(15)(E) of the Small Business Act (15 U.S.C. 
636(a)(15)(E)) is amended by striking ``Administration.'' and inserting 
``Administration, which shall include--
                          ``(i) the total number of loans made to 
                        employee-owned business concerns that were 
                        guaranteed by the Administrator under section 
                        7(a) of the Small Business Act (15 U.S.C. 
                        636(a)) or section 502 of the Small Business 
                        Investment Act of 1958 (15 U.S.C. 696), 
                        including the number of loans made--
                                  ``(I) to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals; 
                                and
                                  ``(II) to cooperatives in which 
                                employees are eligible for membership;
                          ``(ii) the total number of financings made to 
                        employee-owned business concerns by companies 
                        licensed under section 301(c) of the Small 
                        Business Investment Act of 1958 (15 U.S.C. 
                        696(c)), including the number of financings 
                        made--
                                  ``(I) to small business concerns 
                                owned and controlled by socially and 
                                economically disadvantaged individuals; 
                                and
                                  ``(II) to cooperatives in which 
                                employees are eligible for membership; 
                                and
                          ``(iii) any outreach and educational 
                        activities conducted by the Administration with 
                        respect to employee-owned business concerns.''.

SEC. 9. REPORT ON COOPERATIVE LENDING.

  (a) Sense of Congress.--It is the sense of Congress that cooperatives 
have a unique business structure and are unable to access the lending 
programs of the Administration effectively due to loan guarantee 
requirements that are incompatible with the business structure of 
cooperatives.
  (b) Study and Report.--
          (1) Study.--The Administrator, in coordination with lenders, 
        stakeholders, and Federal agencies, shall study and recommend 
        practical alternatives for cooperatives that will satisfy the 
        loan guarantee requirements of the Administration.
          (2) Report.--Not later than 120 days after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress the recommendations developed under paragraph (1) and 
        a plan to implement such recommendations.

SEC. 10. AMENDMENT TO DEFINITION OF QUALIFIED EMPLOYEE TRUST.

  Section 3(c)(2)(A)(ii) of the Small Business Act (15 U.S.C. 
632(c)(2)(A)(ii)) is amended to read as follows:
                  ``(ii) which provides that each participant is 
                entitled to direct the plan trustee as to the manner of 
                how to vote the qualified employer securities (as 
                defined in section 4975(e)(8) of the Internal Revenue 
                Code of 1986), which are allocated to the account of 
                such participant with respect to a corporate matter 
                which (by law or charter) must be decided by a vote 
                conducted in accordance with section 409(e) of the 
                Internal Revenue Code of 1986; and''.

                      I. Purpose and Bill Summary

    With the goal of expanding opportunities available to 
employee-owned small businesses, H.R. 5236, the ``Main Street 
Employee Ownership Act of 2018,'' aims to provide statutory 
clarity and comprehensive succession plans to ensure the 
continued success of employee-owned firms.

                II. Background and Need for Legislation

    The ownership structures of American small businesses come 
in numerous forms. From a traditional hierarchical model to a 
100 percent employee-owned structure, small businesses and 
startups have been transforming Main Streets across the nation 
for years. However, with an aging workforces nearing 
retirement, owners of these businesses often lack a formal exit 
plan to ensure long-term success. In addition to absent 
ownership changeover policies, small businesses continue to 
face a restrained lending environment that prevents expansion 
and job creation.
    This looming crisis can be turned into a unique opportunity 
to strengthen small businesses, reward workers, and invest in 
our Main Street economy by assisting companies with 
transferring ownership to employees through employee stock 
ownership plans (ESOPs) or worker cooperatives. Unfortunately, 
due to their unique ownership structures, these businesses 
often face uncertainty with federal rules and regulations.
    To address the uneven treatment of employee-owned small 
businesses by the Small Business Administration, H.R. 5236, the 
``Main Street Employee Ownership Act of 2018'' aims to provide 
reforms to ensure the continued success of employee-owned 
firms. Specifically, H.R. 5236 outlines ownership transition 
plans to ensure greater success during changeovers and creates 
employee-owned business outreach plans for the Small Business 
Investment Company (SBIC) program, the Microloan program, and 
for the Small Business Development Centers (SBDC) program. 
Additionally, H.R. 5236 requires an interagency working group 
for federal agencies to share best practices. Finally, this 
legislation updates reporting statistics to capture accurate 
data, along with a measure to evaluate the Small Business 
Administration's (SBA) current utilization of employee-owned 
business loans.

                             III. Hearings

    In the 114th Congress, issues related to employee-owned 
firms were addressed at a hearing by the Committee on Small 
Business entitled ``S is for Savings: Pro-Growth Benefits of 
Employee-owned S Corporations'' on April 25, 2016. No hearings 
have been held in the 115th Congress.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on March 14, 2018, and ordered H.R. 5236 
be favorably reported, as amended, to the House via voice vote 
at 11:59 A.M. During the markup, one amendment was offered and 
adopted. Disposition of the amendment is addressed below.
    Amendment Number One, filed by Mr. Chabot of Ohio, provides 
technical updates, along with important changes to how the bill 
treats personal guarantees, which is a foundation of SBA's 7(a) 
loan program. Beyond the technical changes, the underlying bill 
includes a provision which provides the SBA Administrator with 
the authority to waive the personal guarantee for cooperatives. 
This amendment strikes the waiver provision, and in turn, 
preserves the importance of the personal guarantee. However, 
understanding the personal guarantee produces problems for 
cooperatives, the amendment requires SBA to coordinate next 
steps to address disparities and provide a workable solution 
for this important ownership structure. Additionally, this 
amendment reduces the outreach burden on SBA partners by 
amending the underlying language from ``establish an outreach 
program'' to ``establish outreach and education material.'' The 
amendment was agreed to by a voice vote at 11:59 A.M.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report the legislation and amendments 
thereto. Via voice vote, the Committee reported H.R. 5236, as 
amended, to the House at 11:59 A.M.


          AMENDMENT TO H.R. 5236 OFFERED BY MR. CHABOT OF OHIO

  Page 2, line 6, insert ``, in accordance with applicable 
Federal and State laws and regulations'' before the semicolon.
  Page 4, line 20, strike ``may'' and insert ``shall''.
  Page 5, strike lines 5 through 10 (and redesignate subsequent 
subparagraph accordingly).
  Page 5, line 21, strike ``a corporation'' and all that 
follows through ``that is'' on line 22 and insert ``an entity 
that is''.
  Page 5, line 25, strike ``; and'' and insert a period.
  Page 6, strike lines 1 and 2.
  Page 6, strike lines 6 through 13.
  Page 6, beginning on line 21, strike ``establish an outreach 
program with'' and insert ``provide outreach and educational 
materials to''.
  Page 7, beginning on line 5, strike ``establish an outreach 
program with'' and insert ``provide outreach and educational 
materials to''.
  Page 10, strike lines 12 and 13 and insert the following:
          (3) publish a report on the activities of the 
        interagency working group that is indexed and 
        maintained for public review.
  At the end of the bill, add the following:

SEC. 9. REPORT ON COOPERATIVE LENDING.

  (a) Sense of Congress.--It is the sense of Congress that 
cooperatives have a unique business structure and are unable to 
access the lending programs of the Administration effectively 
due to loan guarantee requirements that are incompatible with 
the business structure of cooperatives.
  (b) Study and Report.--
          (1) Study.--The Administrator, in coordination with 
        lenders, stakeholders, and Federal agencies, shall 
        study and recommend practical alternatives for 
        cooperatives that will satisfy the loan guarantee 
        requirements of the Administration.
          (2) Report.--Not later than 120 days after the date 
        of enactment of this Act, the Administrator shall 
        submit to Congress the recommendations developed under 
        paragraph (1) and a plan to implement such 
        recommendations.

SEC. 10. AMENDMENT TO DEFINITION OF QUALIFIED EMPLOYEE TRUST.

  Section 3(c)(2)(A)(ii) of the Small Business Act (15 U.S.C. 
632(c)(2)(A)(ii)) is amended to read as follows:
          ``(ii) which provides that each participant is 
        entitled to direct the plan trustee as to the manner of 
        how to vote the qualified employer securities (as 
        defined in section 4975(e)(8) of the Internal Revenue 
        Code of 1986), which are allocated to the account of 
        such participant with respect to a corporate matter 
        which (by law or charter) must be decided by a vote 
        conducted in accordance with section 409(e) of the 
        Internal Revenue Code of 1986; and''.

              VI. Section-by-Section Analysis of H.R. 5236


Section 1. Short title

    This section designates the bill as the ``The Main Street 
Employee Ownership Act''.

Section 2. Definitions

    This section defines the word ``Administration'' to mean 
the Small Business Administration, the term ``Administrator'' 
to mean the Administrator of the Small Business Administration, 
the term ``cooperative'' to mean an entity that is determined 
to be a cooperative by the Administrator, and the term 
``employee-owned business concern'' to mean a cooperative with 
which employees are eligible for membership and a qualified 
employee trust. Additionally, the terms ``qualified employee 
trust'' and ``small business concern'' have the meaning 
provided in Section 3 of the Small Business Act. Finally, the 
term ``small business development center'' has the meanings 
provided in Section 21 of the Small Business Act.

Section 3. Expansion of 7(a) loans

    This section amends section 7(a) of the Small Business Act 
by adding new clauses and subparagraphs which align current 
agency lending with industry practices, and smooths transitions 
to employee ownership, and clarifies delegated authority by 
preferred lenders.
    Specifically, this section aligns agency lending with 
current industry practices to allow lenders to make loans to 
the company, which will then make an internal loan to the 
employee trust to purchase ownership. Additionally, this 
section codifies in statute a recently released SBA policy that 
allows the seller to stay on as an owner, officer, director, or 
key employee of the company when an employee stock ownership 
plan (ESOP) or cooperative acquires a controlling interest (51 
percent or more). However, any seller who remains as an owner, 
regardless of percentage of ownership interest, would be 
required by the SBA to provide a personal guarantee. This 
change will allow sellers to remain available to ensure the 
success of the new employee owners. This section also allows 
for such transaction costs to be financed as part of a 7(a) 
loan.
    Additionally, this section grants waiver authority to the 
Administrator on personal guarantee requirements for 
cooperatives if deemed necessary.
    Finally, this section would clarify that the SBA 
Administrator may give authority to lenders participating in 
the Preferred Lenders Program (PLP) to execute 7(a) ESOP loans.

Section 4. Small Business Investment Company program outreach

    This section requires the SBA to coordinate with investment 
funds licensed through SBA's SBIC program to promote employee 
ownership as an area to consider for investment and lending.

Section 5. Small Business Microloan program outreach

    This section requires the SBA to coordinate with 
intermediaries through the SBA's Microloan program to promote 
employee ownership options.

Section 6. Small Business Development Center outreach and assistance

    This section requires the SBA to work with the nation's 
SBDCs to provide business succession services, including 
training, executive education, and one-on-one consulting on 
employee ownership options.

Section 7. Interagency working group

    This section tasks the SBA with coordinating and chairing 
an interagency working group to develop recommendations to 
support and increase the number of employee-owned businesses, 
and to increase coordination between federal agencies and 
private sector employee ownership organizations.

Section 8. Amendment to report to Congress on status of employee-owned 
        firms

    This section amends an existing reporting requirement in 
section 7(a)(15)(E) of the Small Business Act by adding data 
points to an existing congressional report. Reports will now 
include data on the total number of loans made to employee-
owned businesses and cooperatives that are guaranteed by the 
agency.

             VII. Congressional Budget Office Cost Estimate

    The cost estimate prepared by the Director of the 
Congressional Budget Office pursuant to 402 of the 
Congressional Budget Act of 1974 was not submitted timely to 
the Committee.

                        VIII. Unfunded Mandates

    H.R. 5236 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act, Pub. 
L. No. 104-4, and would impose no costs on state, local or 
tribal governments.

  IX. New Budget Authority, Entitlement Authority and Tax Expenditures

    The Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to 402 of 
the Congressional Budget Act of 1974. In compliance with clause 
3(c)(2) of rule XIII of the Rules of the House, the Committee 
opines that H.R. 5236 will not establish any new budget or 
entitlement authority or create any tax expenditures.

                         X. Oversight Findings

    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House, the oversight findings and recommendations of the 
Committee on Small Business with respect to the subject matter 
contained in H.R. 5236 are incorporated into the descriptive 
portions of this report.

               XI. Statement of Constitutional Authority

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

                 XII. Congressional Accountability Act

    H.R. 5236 does not relate to the terms and conditions of 
employment or access to public services or accommodations 
within the meaning of 102(b)(3) of Pub. L. No. 104-1.

             XIII. Federal Advisory Committee Act Statement

    H.R. 5236 does not establish or authorize the establishment 
of any new advisory committees as that term is defined in the 
Federal Advisory Committee Act, 5 U.S.C. App. 2.

                     XIV. Statement of No Earmarks

    Pursuant to clause 9 of rule XXI, H.R. 5236 does not 
contain any congressional earmarks, limited tax benefits or 
limited tariff benefits as defined in subsections (d), (e) or 
(f) of clause 9 of rule XXI of the Rules of the House.

            XV. Statement of Duplication of Federal Programs

    Pursuant to clause 3(c) of the rule XIII of the Rules of 
the House, no provision of H.R. 5236 establishes or 
reauthorizes a program of the federal government known to be 
duplicative of another federal program, a program that was 
included in any report from the United States Government 
Accountability Office pursuant to 21 of Pub. L. No. 111-139, or 
a program related to a program identified in the most recent 
catalog of federal domestic assistance.

                XVI. Disclosure of Directed Rule Makings

    Pursuant to clause 3(c) of rule XIII of the Rules of the 
House, H.R. 5236 does not direct any rulemaking.

                 XVII. Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House, the Committee establishes the following performance-
related goals and objectives in this legislation:
          H.R. 5236 includes a number of provisions designed to 
        expand opportunities available to employee-owned 
        business concerns through SBAs loan programs.

      XVIII. 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, and existing law in which no 
change is proposed is shown in roman):

SMALL BUSINESS ACT

           *       *       *       *       *       *       *



SEC. 3. DEFINITIONS.

  (a) Small Business Concerns.--
          (1) In general.--For the purposes of this Act, a 
        small-business concern, including but not limited to 
        enterprises that are engaged in the business of 
        production of food and fiber, ranching and raising of 
        livestock, aquaculture, and all other farming and 
        agricultural related industries, shall be deemed to be 
        one which is independently owned and operated and which 
        is not dominant in its field of operation.
          (2) Establishment of size standards.--
                  (A) In general.--In addition to the criteria 
                specified in paragraph (1), the Administrator 
                may specify detailed definitions or standards 
                by which a business concern may be determined 
                to be a small business concern for the purposes 
                of this Act or any other Act.
                  (B) Additional criteria.--The standards 
                described in paragraph (1) may utilize number 
                of employees, dollar volume of business, net 
                worth, net income, a combination thereof, or 
                other appropriate factors.
                  (C) Requirements.--Unless specifically 
                authorized by statute, no Federal department or 
                agency may prescribe a size standard for 
                categorizing a business concern as a small 
                business concern, unless such proposed size 
                standard--
                          (i) is proposed after an opportunity 
                        for public notice and comment;
                          (ii) provides for determining--
                                  (I) the size of a 
                                manufacturing concern as 
                                measured by the manufacturing 
                                concern's average employment 
                                based upon employment during 
                                each of the manufacturing 
                                concern's pay periods for the 
                                preceding 12 months;
                                  (II) the size of a business 
                                concern providing services on 
                                the basis of the annual average 
                                gross receipts of the business 
                                concern over a period of not 
                                less than 3 years;
                                  (III) the size of other 
                                business concerns on the basis 
                                of data over a period of not 
                                less than 3 years; or
                                  (IV) other appropriate 
                                factors; and
                          (iii) is approved by the 
                        Administrator.
          (3) Variation by industry and consideration of other 
        factors.--When establishing or approving any size 
        standard pursuant to paragraph (2), the Administrator 
        shall ensure that the size standard varies from 
        industry to industry to the extent necessary to reflect 
        the differing characteristics of the various industries 
        and consider other factors deemed to be relevant by the 
        Administrator.
          (4) Exclusion of certain security expenses from 
        consideration for purpose of small business size 
        standards.--
                  (A) Determination required.--Not later than 
                30 days after the date of enactment of this 
                paragraph, the Administrator shall review the 
                application of size standards established 
                pursuant to paragraph (2) to small business 
                concerns that are performing contracts in 
                qualified areas and determine whether it would 
                be fair and appropriate to exclude from 
                consideration in the average annual gross 
                receipts of such small business concerns any 
                payments made to such small business concerns 
                by Federal agencies to reimburse such small 
                business concerns for the cost of subcontracts 
                entered for the sole purpose of providing 
                security services in a qualified area.
                  (B) Action required.--Not later than 60 days 
                after the date of enactment of this paragraph, 
                the Administrator shall either--
                          (i) initiate an adjustment to the 
                        size standards, as described in 
                        subparagraph (A), if the Administrator 
                        determines that such an adjustment 
                        would be fair and appropriate; or
                          (ii) provide a report to the 
                        Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the 
                        House of Representatives explaining in 
                        detail the basis for the determination 
                        by the Administrator that such an 
                        adjustment would not be fair and 
                        appropriate.
                  (C) Qualified areas.--In this paragraph, the 
                term ``qualified area'' means--
                          (i) Iraq,
                          (ii) Afghanistan, and
                          (iii) any foreign country which 
                        included a combat zone, as that term is 
                        defined in section 112(c)(2) of the 
                        Internal Revenue Code of 1986, at the 
                        time of performance of the relevant 
                        Federal contract or subcontract.
          (5) Alternative Size Standard.--
                  (A) In general.--The Administrator shall 
                establish an alternative size standard for 
                applicants for business loans under section 
                7(a) and applicants for development company 
                loans under title V of the Small Business 
                Investment Act of 1958 (15 U.S.C. 695 et seq.), 
                that uses maximum tangible net worth and 
                average net income as an alternative to the use 
                of industry standards.
                  (B) Interim rule.--Until the date on which 
                the alternative size standard established under 
                subparagraph (A) is in effect, an applicant for 
                a business loan under section 7(a) or an 
                applicant for a development company loan under 
                title V of the Small Business Investment Act of 
                1958 may be eligible for such a loan if--
                          (i) the maximum tangible net worth of 
                        the applicant is not more than 
                        $15,000,000; and
                          (ii) the average net income after 
                        Federal income taxes (excluding any 
                        carry-over losses) of the applicant for 
                        the 2 full fiscal years before the date 
                        of the application is not more than 
                        $5,000,000.
          (6) Proposed rulemaking.--In conducting rulemaking to 
        revise, modify or establish size standards pursuant to 
        this section, the Administrator shall consider, and 
        address, and make publicly available as part of the 
        notice of proposed rulemaking and notice of final rule 
        each of the following:
                  (A) a detailed description of the industry 
                for which the new size standard is proposed;
                  (B) an analysis of the competitive 
                environment for that industry;
                  (C) the approach the Administrator used to 
                develop the proposed standard including the 
                source of all data used to develop the proposed 
                rule making; and
                  (D) the anticipated effect of the proposed 
                rulemaking on the industry, including the 
                number of concerns not currently considered 
                small that would be considered small under the 
                proposed rule making and the number of concerns 
                currently considered small that would be deemed 
                other than small under the proposed rulemaking.
          (7) Common size standards.--In carrying out this 
        subsection, the Administrator may establish or approve 
        a single size standard for a grouping of 4-digit North 
        American Industry Classification System codes only if 
        the Administrator makes publicly available, not later 
        than the date on which such size standard is 
        established or approved, a justification demonstrating 
        that such size standard is appropriate for each 
        individual industry classification included in the 
        grouping.
          (8) Number of size standards.--The Administrator 
        shall not limit the number of size standards 
        established pursuant to paragraph (2), and shall assign 
        the appropriate size standard to each North American 
        Industry Classification System Code.
          (9) Petitions for reconsideration of size 
        standards.--
                  (A) In general.--A person may file a petition 
                for reconsideration with the Office of Hearings 
                and Appeals (as established under section 5(i)) 
                of a size standard revised, modified, or 
                established by the Administrator pursuant to 
                this subsection.
                  (B) Time limit.--A person filing a petition 
                for reconsideration described in subparagraph 
                (A) shall file such petition not later than 30 
                days after the publication in the Federal 
                Register of the notice of final rule to revise, 
                modify, or establish size standards described 
                in paragraph (6).
                  (C) Process for agency review.--The Office of 
                Hearings and Appeals shall use the same process 
                it uses to decide challenges to the size of a 
                small business concern to decide a petition for 
                review pursuant to this paragraph.
                  (D) Judicial review.--The publication of a 
                final rule in the Federal Register described in 
                subparagraph (B) shall be considered final 
                agency action for purposes of seeking judicial 
                review. Filing a petition for reconsideration 
                under subparagraph (A) shall not be a condition 
                precedent to judicial review of any such size 
                standard.
                  (E) Rules or guidance.--The Office of 
                Hearings and Appeals shall begin accepting 
                petitions for reconsideration described in 
                subparagraph (A) after the date on which the 
                Administration issues a rule or other guidance 
                implementing this paragraph. Notwithstanding 
                the provisions of subparagraph (B), petitions 
                for reconsideration of size standards revised, 
                modified, or established in a Federal Register 
                final rule published between November 25, 2015, 
                and the effective date of such rule or other 
                guidance shall be considered timely if filed 
                within 30 days of such effective date.
  (b) For purposes of this Act, any reference to an agency or 
department of the United States, and the term ``Federal 
agency,'' shall have the meaning given the term ``agency'' by 
section 551(1) of title 5, United States Code, but does not 
include the United States Postal Service or the General 
Accounting Office.
  (c)(1) For purposes of this Act, a qualified employee trust 
shall be eligible for any loan guarantee under section 7(a) 
with respect to a small business concern on the same basis as 
if such trust were the same legal entity as such concern.
  (2) For purposes of this Act, the term ``qualified employee 
trust'' means, with respect to a small business concern, a 
trust--
          (A) which forms part of an employee stock ownership 
        plan (as defined in section 4975(e)(7) of the Internal 
        Revenue Code of 1954)--
                  (i) which is maintained by such concern, and
                  [(ii) which provides that each participant in 
                the plan is entitle to direct the plan as to 
                the manner in which voting rights under 
                qualifying employer securities (as defined in 
                section 4975(e)(8) of such Code) which are 
                allocated to the account of such participant 
                are to be exercised with respect to a corporate 
                matter which (by law or charter) must be 
                decided by a majority vote of outstanding 
                common shares voted; and]
                  (ii) which provides that each participant is 
                entitled to direct the plan trustee as to the 
                manner of how to vote the qualified employer 
                securities (as defined in section 4975(e)(8) of 
                the Internal Revenue Code of 1986), which are 
                allocated to the account of such participant 
                with respect to a corporate matter which (by 
                law or charter) must be decided by a vote 
                conducted in accordance with section 409(e) of 
                the Internal Revenue Code of 1986; and
          (B) in the case of any loan guarantee under section 
        7(a), the trustee of which enters into an agreement 
        with the Administrator of which enters into an 
        agreement with the Administrator which is binding on 
        the trust and no such small business concern and which 
        provides that--
                  (i) the loan guaranteed under section 7(a) 
                shall be used solely for the purchase of 
                qualifying employer securities of such concern.
                  (ii) all funds acquired by the concern in 
                such purchase shall be used by such concern 
                solely for the purposes for which such loan was 
                guaranteed,
                  (iii) such concern will provide such funds as 
                may be necessary for the timely repayment of 
                such loan, and the property of such concern 
                shall be available as security for repayment of 
                such loan, and
                  (iv) all qualifying employer securities 
                acquired by such trust in such purchase shall 
                be allocated to the accounts of participants in 
                such plan who are entitled to share in such 
                allocation, and each participant has a 
                nonforfeitable right, not later than the date 
                such loan is repaid, to all such qualifying 
                employer securities which are so allocated to 
                the participant's account.
  (3) Under regulations which may be prescribed by the 
Administrator, a trust may be treated as a qualified employee 
trust with respect to a small business concern if--
          (A) the trust is maintained by an employee 
        organization which represents at least 51 percent of 
        the employee of such concern, and
          (B) such concern maintains a plan--
                  (i) which is an employee benefit plan which 
                is designed to invest primarily in qualifying 
                employer securities (as defined in section 
                4975(e)(8) of the Internal Revenue Code of 
                1954).
                  (ii) which provides that each participant in 
                the plan is entitled to direct the plan as to 
                the manner in which voting rights under 
                qualifying employer securities which are 
                allocated to the account of such participant 
                are to be exercised with respect to a corporate 
                matter which (by law or charter) must be 
                decided by a majority vote of the outstanding 
                common shares voted,
                  (iii) which provides that each participant 
                who is entitled to distribution from the plan 
                has a right, in the case of qualifying employer 
                securities which are not readily tradable on an 
                established market, to require that the concern 
                repurchase such securities under a fair 
                valuation formula, and
                  (iv) which meets such other requirements 
                (similar to requirements applicable to employee 
                ownership plans as defined in section 
                4975(e)(7) of the Internal Revenue Code of 
                1954) as the Administrator may prescribe, and
          (C) in the case of a loan guarantee under section 
        7(a), such organization enters into an agreement with 
        the Administration which is described in paragraph 
        (2)(B).
  (d) For purposes of section 7 of this Act, the term 
``qualified Indian tribe'' means an Indian tribe as defined in 
section 4(a) of the Indian Self-Determination and Education 
Assistance Act, which owns and controls 100 per centum of a 
small business concern.
  (e) For purposes of section 7 of this Act, the term ``public 
or private organization for the handicapped'' means one--
          (1) which is organized under the laws of the United 
        States or of any State, operated in the interest of 
        handicapped individuals, the net income of which does 
        not insure in whole or in part to the benefit of any 
        shareholder or other individual;
          (2) which complies with any applicable occupational 
        health and safety standard prescribed by the Secretary 
        of Labor; and
          (3) which, in the production of commodities and in 
        the provision of services during any fiscal year in 
        which it received financial assistance under this 
        subsection, employs handicapped individuals for not 
        less than 75 per centum of the man-hours required for 
        the production or provision of the commodities or 
        services.
  (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.
  (g) For purposes of section 7 of this Act, the term ``energy 
measures'' includes--
          (1) solar thermal energy equipment which is either of 
        the active type based upon mechanically forced energy 
        transfer or of the passive type based on convective, 
        conductive, or radiant energy transfer or some 
        combination equipment;
          (2) photovoltaic cells and related equipment;
          (3) a product or service the primary purpose of which 
        is conservation of energy through devices or techniques 
        which increase the energy through devices or techniques 
        which increase the energy efficiency of existing 
        equipment, methods of operation, or systems which use 
        fossil fuels, and which is on the Energy Conservation 
        Measures list of the Secretary of Energy or which the 
        Administrator determines to be consistent with the 
        intent of this subsection;
          (4) equipment the primary purpose of which is 
        production of energy from wood, biological waste, 
        grain, or other biomass source of energy;
          (5) equipment the primary purpose of which is 
        industrial cogeneration of energy, district heating, or 
        production of energy from industrial waste;
          (6) hydroelectric power equipment;
          (7) wind energy conversion equipment; and
          (8) engineering, architectural, consulting, or other 
        professional services which are necessary or 
        appropriate to aid citizens in using any of the 
        measures described in paragraph (1) through (7).
  (h) For purposes of this Act, the term ``credit elsewhere'' 
means the availability of credit from non-Federal sources on 
reasonable terms and conditions taking into consideration the 
prevailing rates and terms in the community in or near where 
the concern transacts business, or the homeowner resides, for 
similar purposes and periods of time.
  (i) For purposes of section 7 of this Act, the term 
``homeowners'' includes owners and lessees of residential 
property and also includes personal property.
  (j) For the purposes of this Act, the term ``small 
agricultural cooperative'' means an association (corporate or 
otherwise) acting pursuant to the provisions of the 
Agricultural Marketing Act (12 U.S.C. 1141j), whose size does 
not exceed the size standard established by the Administration 
for other similar agricultural small business concerns. In 
determining such size, the Administration shall regard the 
association as a business concern and shall not include the 
income or employees of any member shareholder of such 
cooperative.
  (k)(1) For the purposes of this Act, the term ``disaster'' 
means a sudden event which causes severe damage including, but 
not limited to, floods, hurricanes, tornadoes, earthquakes, 
fires, explosions, volcanoes, windstorms, landslides or 
mudslides, tidal waves, commercial fishery failures or fishery 
resource disasters (as determined by the Secretary of Commerce 
under section 308(b) of the Interjurisdictional Fisheries Act 
of 1986), ocean conditions resulting in the closure of 
customary fishing waters, riots, civil disorders or other 
catastrophes, except it does not include economic dislocations.
  (2) For purposes of section 7(b)(2), the term ``disaster'' 
includes--
          (A) drought;
          (B) below average water levels in the Great Lakes, or 
        on any body of water in the United States that supports 
        commerce by small business concerns; and
          (C) ice storms and blizzards.
  (l) For purposes of this Act--
          (1) the term ``computer crime'' means''--
                  (A) any crime committed against a small 
                business concern by means of the use of a 
                computer; and
                  (B) any crime involving the illegal use of, 
                or tampering with, a computer owned or utilized 
                by a small business concern.
  (m) Definitions Relating to Contracting.--In this Act:
          (1) Prime contract.--The term ``prime contract'' has 
        the meaning given such term in section 8701(4) of title 
        41, United States Code.
          (2) Prime contractor.--The term ``prime contractor'' 
        has the meaning given such term in section 8701(5) of 
        title 41, United States Code.
          (3) Simplified acquisition threshold.--The term 
        ``simplified acquisition threshold'' has the meaning 
        given such term in section 134 of title 41, United 
        States Code.
          (4) Micro-purchase threshold.--The term ``micro-
        purchase threshold'' has the meaning given such term in 
        section 1902 of title 41, United States Code.
          (5) Total purchases and contracts for property and 
        services.--The term ``total purchases and contracts for 
        property and services'' shall mean total number and 
        total dollar amount of contracts and orders for 
        property and services.
  (n) For the purposes of this Act, a small business concern is 
a small business concern owned and controlled by women if--
          (1) at least 51 percent of small business concern is 
        owned by one or more women or, in the case of any 
        publicly owned business, at least 51 percent of the 
        stock of which is owned by one or more women; and
          (2) the management and daily business operations of 
        the business are controlled by one or more women.
  (o) Definitions of Bundling of Contract Requirements and 
Related Terms.--In this Act:
          (1) Bundled contract.--The term ``bundled contract'' 
        means a contract that is entered into to meet 
        requirements that are consolidated in a bundling of 
        contract requirements.
          (2) Bundling of contract requirements.--The term 
        ``bundling of contract requirements'' means 
        consolidating 2 or more procurement requirements for 
        goods or services previously provided or performed 
        under separate smaller contracts into a solicitation of 
        offers for a single contract that is likely to be 
        unsuitable for award to a small-business concern due 
        to--
                  (A) the diversity, size, or specialized 
                nature of the elements of the performance 
                specified;
                  (B) the aggregate dollar value of the 
                anticipated award;
                  (C) the geographical dispersion of the 
                contract performance sites; or
                  (D) any combination of the factors described 
                in subparagraphs (A), (B), and (C).
          (3) Separate smaller contract.--The term ``separate 
        smaller contract'', with respect to a bundling of 
        contract requirements, means a contract that has been 
        performed by 1 or more small business concerns or was 
        suitable for award to 1 or more small business 
        concerns.
  (p) Definitions Relating to HUBZones.--In this Act:
          (1) Historically underutilized business zone.--The 
        term ``historically underutilized business zone'' means 
        any area located within 1 or more--
                  (A) qualified census tracts;
                  (B) qualified nonmetropolitan counties;
                  (C) lands within the external boundaries of 
                an Indian reservation;
                  (D) redesignated areas;
                  (E) base closure areas; or
                  (F) qualified disaster areas.
          (2) HUBZone.--The term ``HUBZone'' means a 
        historically underutilized business zone.
          (3) Hubzone small business concern.--The term 
        ``HUBZone small business concern'' means--
                  (A) a small business concern that is at least 
                51 percent owned and controlled by United 
                States citizens;
                  (B) a small business concern that is--
                          (i) an Alaska Native Corporation 
                        owned and controlled by Natives (as 
                        determined pursuant to section 29(e)(1) 
                        of the Alaska Native Claims Settlement 
                        Act (43 U.S.C. 1626(e)(1))); or
                          (ii) a direct or indirect subsidiary 
                        corporation, joint venture, or 
                        partnership of an Alaska Native 
                        Corporation qualifying pursuant to 
                        section 29(e)(1) of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 
                        1626(e)(1)), if that subsidiary, joint 
                        venture, or partnership is owned and 
                        controlled by Natives (as determined 
                        pursuant to section 29(e)(2)) of the 
                        Alaska Native Claims Settlement Act (43 
                        U.S.C. 1626(e)(2)));
                  (C) a small business concern--
                          (i) that is wholly owned by one or 
                        more Indian tribal governments, or by a 
                        corporation that is wholly owned by one 
                        or more Indian tribal governments; or
                          (ii) that is owned in part by one or 
                        more Indian tribal governments, or by a 
                        corporation that is wholly owned by one 
                        or more Indian tribal governments, if 
                        all other owners are either United 
                        States citizens or small business 
                        concerns;
                  (D) a small business concern--
                          (i) that is wholly owned by one or 
                        more Native Hawaiian Organizations (as 
                        defined in section 8(a)(15)), or by a 
                        corporation that is wholly owned by one 
                        or more Native Hawaiian Organizations; 
                        or
                          (ii) that is owned in part by one or 
                        more Native Hawaiian Organizations, or 
                        by a corporation that is wholly owned 
                        by one or more Native Hawaiian 
                        Organizations, if all other owners are 
                        either United States citizens or small 
                        business concerns;
                  (E) a small business concern that is--
                          (i) wholly owned by a community 
                        development corporation that has 
                        received financial assistance under 
                        part 1 of subchapter A of the Community 
                        Economic Development Act of 1981 (42 
                        U.S.C. 9805 et seq.); or
                          (ii) owned in part by one or more 
                        community development corporations, if 
                        all other owners are either United 
                        States citizens or small business 
                        concerns; or
                  (F) a small business concern that is--
                          (i) a small agricultural cooperative 
                        organized or incorporated in the United 
                        States;
                          (ii) wholly owned by 1 or more small 
                        agricultural cooperatives organized or 
                        incorporated in the United States; or
                          (iii) owned in part by 1 or more 
                        small agricultural cooperatives 
                        organized or incorporated in the United 
                        States, if all owners are small 
                        business concerns or United States 
                        citizens.
          (4) Qualified areas.--
                  (A) Qualified census tract.--
                          (i) In general.--The term ``qualified 
                        census tract'' has the meaning given 
                        that term in section 42(d)(5)(B)(ii) of 
                        the Internal Revenue Code of 1986.
                          (ii) Exception.--For any metropolitan 
                        statistical area in the Commonwealth of 
                        Puerto Rico, the term ``qualified 
                        census tract'' has the meaning given 
                        that term in section 42(d)(5)(B)(ii) of 
                        the Internal Revenue Code of 1986 as 
                        applied without regard to subclause 
                        (II) of such section, except that this 
                        clause shall only apply--
                                  (I) 10 years after the date 
                                that the Administrator 
                                implements this clause, or
                                  (II) the date on which the 
                                Financial Oversight and 
                                Management Board for the 
                                Commonwealth of Puerto Rico 
                                created by the Puerto Rico 
                                Oversight, Management, and 
                                Economic Stability Act ceases 
                                to exist,
                        whichever event occurs first.
                  (B) Qualified nonmetropolitan county.--The 
                term ``qualified nonmetropolitan county'' means 
                any county--
                          (i) that was not located in a 
                        metropolitan statistical area (as 
                        defined in section 143(k)(2)(B) of the 
                        Internal Revenue Code of 1986) at the 
                        time of the most recent census taken 
                        for purposes of selecting qualified 
                        census tracts under section 
                        42(d)(5)(C)(ii) of the Internal Revenue 
                        Code of 1986; and
                          (ii) in which--
                                  (I) the median household 
                                income is less than 80 percent 
                                of the nonmetropolitan State 
                                median household income, based 
                                on the most recent data 
                                available from the Bureau of 
                                the Census of the Department of 
                                Commerce;
                                  (II) the unemployment rate is 
                                not less than 140 percent of 
                                the average unemployment rate 
                                for the United States or for 
                                the State in which such county 
                                is located, whichever is less, 
                                based on the most recent data 
                                available from the Secretary of 
                                Labor; or
                                  (III) there is located a 
                                difficult development area, as 
                                designated by the Secretary of 
                                Housing and Urban Development 
                                in accordance with section 
                                42(d)(5)(C)(iii) of the 
                                Internal Revenue Code of 1986, 
                                within Alaska, Hawaii, or any 
                                territory or possession of the 
                                United States outside the 48 
                                contiguous States.
                  (C) Redesignated area.--The term 
                ``redesignated area'' means any census tract 
                that ceases to be qualified under subparagraph 
                (A) and any nonmetropolitan county that ceases 
                to be qualified under subparagraph (B), except 
                that a census tract or a nonmetropolitan county 
                may be a ``redesignated area'' only until the 
                later of--
                          (i) the date on which the Census 
                        Bureau publicly releases the first 
                        results from the 2010 decennial census; 
                        or
                          (ii) 3 years after the date on which 
                        the census tract or nonmetropolitan 
                        county ceased to be so qualified.
                  (D) Base closure area.--
                          (i) In general.--Subject to clause 
                        (ii), the term ``base closure area'' 
                        means--
                                  (I) lands within the external 
                                boundaries of a military 
                                installation that were closed 
                                through a privatization process 
                                under the authority of--
                                          (aa) the Defense Base 
                                        Closure and Realignment 
                                        Act of 1990 (part A of 
                                        title XXIX of division 
                                        B of Public Law 101-
                                        510; 10 U.S.C. 2687 
                                        note);
                                          (bb) title II of the 
                                        Defense Authorization 
                                        Amendments and Base 
                                        Closure and Realignment 
                                        Act (Public Law 100-
                                        526; 10 U.S.C. 2687 
                                        note);
                                          (cc) section 2687 of 
                                        title 10, United States 
                                        Code; or
                                          (dd) any other 
                                        provision of law 
                                        authorizing or 
                                        directing the Secretary 
                                        of Defense or the 
                                        Secretary of a military 
                                        department to dispose 
                                        of real property at the 
                                        military installation 
                                        for purposes relating 
                                        to base closures of 
                                        redevelopment, while 
                                        retaining the authority 
                                        to enter into a 
                                        leaseback of all or a 
                                        portion of the property 
                                        for military use;
                                  (II) the census tract or 
                                nonmetropolitan county in which 
                                the lands described in 
                                subclause (I) are wholly 
                                contained;
                                  (III) a census tract or 
                                nonmetropolitan county the 
                                boundaries of which intersect 
                                the area described in subclause 
                                (I); and
                                  (IV) a census tract or 
                                nonmetropolitan county the 
                                boundaries of which are 
                                contiguous to the area 
                                described in subclause (II) or 
                                subclause (III).
                          (ii) Limitation.--A base closure area 
                        shall be treated as a HUBZone--
                                  (I) with respect to a census 
                                tract or nonmetropolitan county 
                                described in clause (i), for a 
                                period of not less than 8 
                                years, beginning on the date 
                                the military installation 
                                undergoes final closure and 
                                ending on the date the 
                                Administrator makes a final 
                                determination as to whether or 
                                not to implement the applicable 
                                designation described in 
                                subparagraph (A) or (B) in 
                                accordance with the results of 
                                the decennial census conducted 
                                after the area was initially 
                                designated as a base closure 
                                area; and
                                  (II) if such area was treated 
                                as a HUBZone at any time after 
                                2010, until such time as the 
                                Administrator makes a final 
                                determination as to whether or 
                                not to implement the applicable 
                                designation described in 
                                subparagraph (A) or (B), after 
                                the 2020 decennial census.
                          (iii) Definitions.--In this 
                        subparagraph:
                                  (I) Census tract.--The term 
                                ``census tract'' means a census 
                                tract delineated by the United 
                                States Bureau of the Census in 
                                the most recent decennial 
                                census that is not located in a 
                                nonmetropolitan county and does 
                                not otherwise qualify as a 
                                qualified census tract.
                                  (II) Nonmetropolitan 
                                county.--The term 
                                ``nonmetropolitan county'' 
                                means a county that was not 
                                located in a metropolitan 
                                statistical area (as defined in 
                                section 143(k)(2)(B) of the 
                                Internal Revenue Code of 1986) 
                                at the time of the most recent 
                                census taken for purposes of 
                                selecting qualified census 
                                tracts and does not otherwise 
                                qualify as a qualified 
                                nonmetropolitan county.
                  (E) Qualified disaster area.--
                          (i) In general.--Subject to clause 
                        (ii), the term ``qualified disaster 
                        area'' means any census tract or 
                        nonmetropolitan county located in an 
                        area for which the President has 
                        declared a major disaster under section 
                        401 of the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 
                        U.S.C. 5170) or located in an area in 
                        which a catastrophic incident has 
                        occurred if such census tract or 
                        nonmetropolitan county ceased to be 
                        qualified under subparagraph (A) or 
                        (B), as applicable, during the period 
                        beginning 5 years before the date on 
                        which the President declared the major 
                        disaster or the catastrophic incident 
                        occurred and ending 2 years after such 
                        date, except that such census tract or 
                        nonmetropolitan county may be a 
                        ``qualified disaster area'' only--
                                  (I) in the case of a major 
                                disaster declared by the 
                                President, during the 5-year 
                                period beginning on the date on 
                                which the President declared 
                                the major disaster for the area 
                                in which the census tract or 
                                nonmetropolitan county, as 
                                applicable, is located; and
                                  (II) in the case of a 
                                catastrophic incident, during 
                                the 10-year period beginning on 
                                the date on which the 
                                catastrophic incident occurred 
                                in the area in which the census 
                                tract or nonmetropolitan 
                                county, as applicable, is 
                                located.
                          (ii) Limitation.--A qualified 
                        disaster area described in clause (i) 
                        shall be treated as a HUBZone for a 
                        period of not less than 8 years, 
                        beginning on the date the Administrator 
                        makes a final determination as to 
                        whether or not to implement the 
                        designations described in subparagraphs 
                        (A) and (B) in accordance with the 
                        results of the decennial census 
                        conducted after the area was initially 
                        designated as a qualified disaster 
                        area.
          (5) Qualified hubzone small business concern.--
                  (A) In general.--A HUBZone small business 
                concern is ``qualified'', if--
                          (i) the small business concern has 
                        certified in writing to the 
                        Administrator (or the Administrator 
                        otherwise determines, based on 
                        information submitted to the 
                        Administrator by the small business 
                        concern, or based on certification 
                        procedures, which shall be established 
                        by the Administration by regulation) 
                        that--
                                  (I) it is a HUBZone small 
                                business concern--
                                          (aa) pursuant to 
                                        subparagraph (A), (B), 
                                        (C), (D), (E), or (F) 
                                        of paragraph (3), and 
                                        that its principal 
                                        office is located in a 
                                        HUBZone and not fewer 
                                        than 35 percent of its 
                                        employees reside in a 
                                        HUBZone;
                                          (bb) pursuant to 
                                        subparagraph (A), (B), 
                                        (C), (D), (E), or (F) 
                                        of paragraph (3), that 
                                        its principal office is 
                                        located within a base 
                                        closure area and that 
                                        not fewer than 35 
                                        percent of its 
                                        employees reside in 
                                        such base closure area 
                                        or in another HUBZone; 
                                        or
                                          (cc) pursuant to 
                                        paragraph (3)(C), and 
                                        not fewer than 35 
                                        percent of its 
                                        employees engaged in 
                                        performing a contract 
                                        awarded to the small 
                                        business concern on the 
                                        basis of a preference 
                                        provided under section 
                                        31(b) reside within any 
                                        Indian reservation 
                                        governed by one or more 
                                        of the tribal 
                                        government owners, or 
                                        reside within any 
                                        HUBZone adjoining any 
                                        such Indian 
                                        reservation;
                                  (II) the small business 
                                concern will attempt to 
                                maintain the applicable 
                                employment percentage under 
                                subclause (I) during the 
                                performance of any contract 
                                awarded to the small business 
                                concern on the basis of a 
                                preference provided under 
                                section 31(b); and
                                  (III) with respect to any 
                                subcontract entered into by the 
                                small business concern pursuant 
                                to a contract awarded to the 
                                small business concern under 
                                section 31, the small business 
                                concern will ensure that the 
                                requirements of section 46 are 
                                satisfied; and
                          (ii) no certification made or 
                        information provided by the small 
                        business concern under clause (i) has 
                        been, in accordance with the procedures 
                        established under section 31(c)(1)--
                                  (I) successfully challenged 
                                by an interested party; or
                                  (II) otherwise determined by 
                                the Administrator to be 
                                materially false.
                  (B) List of qualified small business 
                concerns.--The Administrator shall establish 
                and maintain a list of qualified HUBZone small 
                business concerns, which list shall, to the 
                extent practicable--
                          (i) once the Administrator has made 
                        the certification required by 
                        subparagraph (A)(i) regarding a 
                        qualified HUBZone small business 
                        concern and has determined that 
                        subparagraph (A)(ii) does not apply to 
                        that concern, include the name, 
                        address, and type of business with 
                        respect to each such small business 
                        concern;
                          (ii) be updated by the Administrator 
                        not less than annually; and
                          (iii) be provided upon request to any 
                        Federal agency or other entity.
          (6) Native american small business concerns.--
                  (A) Alaska native corporation.--The term 
                ``Alaska Native Corporation'' has the same 
                meaning as the term ``Native Corporation'' in 
                section 3 of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1602).
                  (B) Alaska native village.--The term ``Alaska 
                Native Village'' has the same meaning as the 
                term ``Native village'' in section 3 of the 
                Alaska Native Claims Settlement Act (43 U.S.C. 
                1602).
                  (C) Indian reservation.--The term ``Indian 
                reservation''--
                          (i) has the same meaning as the term 
                        ``Indian country'' in section 1151 of 
                        title 18, United States Code, except 
                        that such term does not include--
                                  (I) any lands that are 
                                located within a State in which 
                                a tribe did not exercise 
                                governmental jurisdiction on 
                                the date of the enactment of 
                                this paragraph, unless that 
                                tribe is recognized after that 
                                date of the enactment by either 
                                an Act of Congress or pursuant 
                                to regulations of the Secretary 
                                of the Interior for the 
                                administrative recognition that 
                                an Indian group exists as an 
                                Indian tribe (part 83 of title 
                                25, Code of Federal 
                                Regulations); and
                                  (II) lands taken into trust 
                                or acquired by an Indian tribe 
                                after the date of the enactment 
                                of this paragraph if such lands 
                                are not located within the 
                                external boundaries of an 
                                Indian reservation or former 
                                reservation or are not 
                                contiguous to the lands held in 
                                trust or restricted status on 
                                that date of the enactment; and
                          (ii) in the State of Oklahoma, means 
                        lands that--
                                  (I) are within the 
                                jurisdictional areas of an 
                                Oklahoma Indian tribe (as 
                                determined by the Secretary of 
                                the Interior); and
                                  (II) are recognized by the 
                                Secretary of the Interior as 
                                eligible for trust land status 
                                under part 151 of title 25, 
                                Code of Federal Regulations (as 
                                in effect on the date of the 
                                enactment of this paragraph).
          (7) Agricultural commodity.--The term ``agricultural 
        commodity'' has the same meaning as in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
  (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.
          (5) Relief from time limitations.--
                  (A) In general.--Any time limitation on any 
                qualification, certification, or period of 
                participation imposed under this Act on any 
                program that is available to small business 
                concerns shall be extended for a small business 
                concern that--
                          (i) is owned and controlled by--
                                  (I) a veteran who was called 
                                or ordered to active duty under 
                                a provision of law specified in 
                                section 101(a)(13)(B) of title 
                                10, United States Code, on or 
                                after September 11, 2001; or
                                  (II) a service-disabled 
                                veteran who became such a 
                                veteran due to an injury or 
                                illness incurred or aggravated 
                                in the active military, naval, 
                                or air service during a period 
                                of active duty pursuant to a 
                                call or order to active duty 
                                under a provision of law 
                                referred to in subclause (I) on 
                                or after September 11, 2001; 
                                and
                          (ii) was subject to the time 
                        limitation during such period of active 
                        duty.
                  (B) Duration.--Upon submission of proper 
                documentation to the Administrator, the 
                extension of a time limitation under 
                subparagraph (A) shall be equal to the period 
                of time that such veteran who owned or 
                controlled such a concern was on active duty as 
                described in that subparagraph.
                  (C) Exception for programs subject to federal 
                credit reform act of 1990.--The provisions of 
                subparagraphs (A) and (B) shall not apply to 
                any programs subject to the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661 et seq.).
  (r) Definitions Relating to Small Business Lending 
Companies.--As used in section 23 of this Act:
          (1) Small business lending company.--The term ``small 
        business lending company'' means a business concern 
        that is authorized by the Administrator to make loans 
        pursuant to section 7(a) and whose lending activities 
        are not subject to regulation by any Federal or State 
        regulatory agency.
          (2) Non-federally regulated sba lender.--The term 
        ``non-Federally regulated SBA lender'' means a business 
        concern if--
                  (A) such concern is authorized by the 
                Administrator to make loans under section 7;
                  (B) such concern is subject to regulation by 
                a State; and
                  (C) the lending activities of such concern 
                are not regulated by any Federal banking 
                authority.
  (s) Major Disaster.--In this Act, the term ``major disaster'' 
has the meaning given that term in section 102 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5122).
  (t) Small Business Development Center.--In this Act, the term 
``small business development center'' means a small business 
development center described in section 21.
  (u) Region of the Administration.--In this Act, the term 
``region of the Administration'' means the geographic area 
served by a regional office of the Administration established 
under section 4(a).
  (v) Multiple Award Contract.--In this Act, the term 
``multiple award contract'' means--
          (1) a multiple award task order contract or delivery 
        order contract that is entered into under the authority 
        of sections 303H through 303K of the Federal Property 
        and Administrative Services Act of 1949 (41 U.S.C. 253h 
        through 253k); and
          (2) any other indefinite delivery, indefinite 
        quantity contract that is entered into by the head of a 
        Federal agency with 2 or more sources pursuant to the 
        same solicitation.
  (w) Presumption.--
          (1) In general.--In every contract, subcontract, 
        cooperative agreement, cooperative research and 
        development agreement, or grant which is set aside, 
        reserved, or otherwise classified as intended for award 
        to small business concerns, there shall be a 
        presumption of loss to the United States based on the 
        total amount expended on the contract, subcontract, 
        cooperative agreement, cooperative research and 
        development agreement, or grant whenever it is 
        established that a business concern other than a small 
        business concern willfully sought and received the 
        award by misrepresentation.
          (2) Deemed certifications.--The following actions 
        shall be deemed affirmative, willful, and intentional 
        certifications of small business size and status:
                  (A) Submission of a bid or proposal for a 
                Federal grant, contract, subcontract, 
                cooperative agreement, or cooperative research 
                and development agreement reserved, set aside, 
                or otherwise classified as intended for award 
                to small business concerns.
                  (B) Submission of a bid or proposal for a 
                Federal grant, contract, subcontract, 
                cooperative agreement, or cooperative research 
                and development agreement which in any way 
                encourages a Federal agency to classify the bid 
                or proposal, if awarded, as an award to a small 
                business concern.
                  (C) Registration on any Federal electronic 
                database for the purpose of being considered 
                for award of a Federal grant, contract, 
                subcontract, cooperative agreement, or 
                cooperative research agreement, as a small 
                business concern.
          (3) Certification by signature of responsible 
        official.--
                  (A) In general.--Each solicitation, bid, or 
                application for a Federal contract, 
                subcontract, or grant shall contain a 
                certification concerning the small business 
                size and status of a business concern seeking 
                the Federal contract, subcontract, or grant.
                  (B) Content of certifications.--A 
                certification that a business concern qualifies 
                as a small business concern of the exact size 
                and status claimed by the business concern for 
                purposes of bidding on a Federal contract or 
                subcontract, or applying for a Federal grant, 
                shall contain the signature of an authorized 
                official on the same page on which the 
                certification is contained.
          (4) Regulations.--The Administrator shall promulgate 
        regulations to provide adequate protections to 
        individuals and business concerns from liability under 
        this subsection in cases of unintentional errors, 
        technical malfunctions, and other similar situations.
  (x) Annual Certification.--
          (1) In general.--Each business certified as a small 
        business concern under this Act shall annually certify 
        its small business size and, if appropriate, its small 
        business status, by means of a confirming entry on the 
        Online Representations and Certifications Application 
        database of the Administration, or any successor 
        thereto.
          (2) Regulations.--Not later than 1 year after the 
        date of enactment of this subsection, the 
        Administrator, in consultation with the Inspector 
        General and the Chief Counsel for Advocacy of the 
        Administration, shall promulgate regulations to ensure 
        that--
                  (A) no business concern continues to be 
                certified as a small business concern on the 
                Online Representations and Certifications 
                Application database of the Administration, or 
                any successor thereto, without fulfilling the 
                requirements for annual certification under 
                this subsection; and
                  (B) the requirements of this subsection are 
                implemented in a manner presenting the least 
                possible regulatory burden on small business 
                concerns.
  (y) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Not later than 1 year after the date of enactment of 
this subsection, the Administrator, in consultation with the 
Attorney General, shall issue a Government-wide policy on 
prosecution of small business size and status fraud, which 
shall direct Federal agencies to appropriately publicize the 
policy.
  (z) Aquaculture Business Disaster Assistance.--Subject to 
section 18(a) and notwithstanding section 18(b)(1), the 
Administrator may provide disaster assistance under section 
7(b)(2) to aquaculture enterprises that are small businesses.
  (aa) Venture Capital Operating Company.--In this Act, the 
term ``venture capital operating company'' means an entity 
described in clause (i), (v), or (vi) of section 121.103(b)(5) 
of title 13, Code of Federal Regulations (or any successor 
thereto).
  (bb) Hedge Fund.--In this Act, the term ``hedge fund'' has 
the meaning given that term in section 13(h)(2) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1851(h)(2)).
  (cc) Private Equity Firm.--In this Act, the term ``private 
equity firm'' has the meaning given the term ``private equity 
fund'' in section 13(h)(2) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1851(h)(2)).
  (dd) Definitions Pertaining to Subcontracting.--In this Act:
          (1) Subcontract.--The term ``subcontract'' means a 
        legally binding agreement between a contractor that is 
        already under contract to another party to perform 
        work, and a third party, hereinafter referred to as the 
        subcontractor, for the subcontractor to perform a part, 
        or all, of the work that the contractor has undertaken.
          (2) First tier subcontractor.--The term ``first tier 
        subcontractor'' means a subcontractor who has a 
        subcontract directly with the prime contractor.
          (3) At any tier.--The term ``at any tier'' means any 
        subcontractor other than a subcontractor who is a first 
        tier subcontractor.

           *       *       *       *       *       *       *

  Sec. 5. (a) The Administration shall have power to adopt, 
alter, and use a seal, which shall be judicially noticed. The 
Administrator is authorized, subject to the civil-service and 
classification laws, to select, employ, appoint, and fix the 
compensation of such officers, employees, attorneys, and agents 
as shall be necessary to carry out the provisions of this Act; 
to define their authority and duties; and to pay the costs of 
qualification of certain authority and duties; and to pay the 
costs of qualification of certain of them as notaries public. 
The Administration, with the consent of any board, commission, 
independent establishment, or executive department of the 
Government, may avail itself on a reimbursable or 
nonreimbursable basis of the use of information, services, 
facilities (including any field service thereof), officers, and 
employees thereof, in carrying out the provisions of this Act.
  (b) In the performance of, and with respect to, the 
functions, powers, and duties vested in him by this Act the 
Administrator may--
          (1) sue and be sued in any court of record of a State 
        having general jurisdiction, or in any United States 
        district court, and jurisdiction is conferred upon such 
        district court to determine such controversies without 
        regard to the amount in controversy; but no attachment, 
        injunction, garnishment, or other similar process, 
        mesne or final, shall be issued against the 
        Administrator or his property;
          (2) under regulations prescribed by him, assign or 
        sell at public or private sale, or otherwise dispose of 
        for cash or credit, in his discretion and upon such 
        terms and conditions and for such consideration as the 
        Administrator shall determine to be reasonable, any 
        evidence of debt, contract claim, personal property, or 
        security assigned to or held by him in connection with 
        the payment of loans granted under this Act, and to 
        collect or compromise all obligations assigned to or 
        held by him and all legal or equitable rights accruing 
        to him in connection with the payment of such loans 
        until such time as such obligations may be referred to 
        the Attorney General for suit or collection;
          (3) deal with, complete, renovate, improve, 
        modernize, insure, or rent, or sell for cash or credit 
        upon such terms and conditions and for such 
        consideration as the Administrator shall determine to 
        be reasonable, any real property conveyed to or 
        otherwise acquired by him in connection with the 
        payment of loans granted under this Act;
          (4) pursue to final collection, by way of compromise 
        or otherwise, all claims against third parties assigned 
        to the Administrator in connection with loans made by 
        him. This shall include authority to obtain deficiency 
        judgments or otherwise in the case of mortgages 
        assigned to the Administrator. Section 3709 of the 
        Revised Statutes, as amended (41 U.S.C., sec 5), shall 
        not be construed to apply to any contract of hazard 
        insurance or to any purchase or contract for services 
        or supplies on account of property obtained by the 
        Administrator as a result of loans made under this Act 
        if the premium therefor or the amount thereof does not 
        exceed $1,000. The power to convey and to execute in 
        the name of the Administrator deeds of conveyance, 
        deeds of release, assignments and satisfactions of 
        mortgages and any other written instrument relating to 
        real property or any interest therein acquired by the 
        Administrator pursuant to the provisions of this Act 
        may be exercised by the Administrator or by any officer 
        or agent appointed by him without the execution of any 
        express delegation of power or power of attorney. 
        Nothing in this section shall be construed to prevent 
        the Administrator form delegating such power by order 
        or by power of attorney, in his discretion, to any 
        officer or agent he may appoint;
          (5) acquire, in any lawful manner, any property 
        (real, personal, or mixed, tangible or intangible), 
        whenever deemed necessary or appropriate to the conduct 
        of the activities authorized in sections 7(a) and 7(b);
          (6) make such rules and regulations as he deems 
        necessary to carry out the authority vested in him by 
        or pursuant to this Act;
          (7) in addition to any powers, functions, privileges 
        and immunities otherwise vested in him, take any and 
        all actions (including the procurement of the services 
        of attorneys by contract in any office where an 
        attorney or attorneys are not or cannot be economically 
        employed full time to render such services) when he 
        determines such actions are necessary or desirable in 
        making, servicing, compromising, modifying, 
        liquidating, or otherwise dealing with or realizing on 
        loans made under the provisions of this Act: Provided, 
        That with respect to deferred participation loans, 
        including loans guaranteed under paragraph (15) or (35) 
        of section 7(a), the Administrator may, in the 
        discretion of and pursuant to regulations promulgated 
        by the Administrator, authorize participating lending 
        institutions to take actions relating to loan servicing 
        on behalf of the Administrator, including determining 
        eligibility and creditworthiness and loan monitoring, 
        collection, and liquidation.
          (8) pay the transportation expenses and per diem in 
        lieu of subsistence expenses, in accordance with the 
        Travel Expense Act of 1949, for travel of any person 
        employed by the Administration to render temporary 
        services not in excess of six months in connection with 
        any disaster referred to in section 7(b) from place of 
        appointment to, and while at, the disaster area and any 
        other temporary posts of duty and return upon 
        completion of the assignment: Provided, That the 
        Administrator may extend the six-month limitation for 
        an additional six months if the Administrator 
        determines the extension is necessary to continue 
        efficient disaster loan making activities;
          (9) accept the service and facilities of Federal, 
        State, and local agencies and groups, both public and 
        private, and utilize such gratuitous services and 
        facilities as may, from time to time, be necessary, to 
        further the objectives of section 7(b);
          (10) upon purchase by the Administration of any 
        deferred participation entered into under section 7 of 
        this Act, continue to charge a rate of interest not to 
        exceed that initially charged by the participating 
        institution on the amount so purchased for the 
        remaining term of the indebtedness;
          (11) make sure such investigations as he deems 
        necessary to determine whether a recipient of or 
        participant in any assistance under this Act or any 
        other person has engaged or is about to engage in any 
        acts or practices which constitute or will constitute a 
        violation of any provision of this Act, or of any rule 
        or regulation under this Act, or of any order issued 
        under this Act. The Administration shall permit any 
        person to file with it a statement in writing, under 
        oath or otherwise as the Administration shall 
        determine, as to all the facts and circumstances 
        concerning the matter to be investigated. For the 
        purpose of any investigation, the Administration is 
        empowered to administer oaths and affirmations, subpena 
        witnesses, compel their attendance, take evidence, and 
        require the production of any books, papers, and 
        documents which are relevant to the inquiry. Such 
        attendance of witnesses and the production of any such 
        records may be required from any place in the United 
        States. In case of contumacy by, or refusal to obey a 
        subpena issued to, any person, including a recipient or 
        participant, the Administration may invoke the aid of 
        any court of the United States within the jurisdiction 
        of which such investigation or proceeding is carried 
        on, or where such person resides or carries on 
        business, in requiring the attendance and testimony of 
        witnesses and the production of books, papers, and 
        documents; and such court may issue an order requiring 
        such person to appear before the Administration, there 
        to produce records, if so ordered, or to give testimony 
        touching the matter under investigation. Any failure to 
        obey such order of the court may be punished by such 
        court as a contempt thereof. All process in any such 
        case may be served in the judicial district whereof 
        such person is an inhabitant or wherever he may be 
        found;
          (12) impose, retain, and use only those fees which 
        are specifically authorized by law or which are in 
        effect on September 30, 1994, and in the amounts and at 
        the rates in effect on such date, except that the 
        Administrator may, subject to approval in 
        appropriations Acts, impose, retain, and utilize, 
        additional fees--
                  (A) not to exceed $100 for each loan 
                servicing action (other than a loan assumption) 
                requested after disbursement of the loan, 
                including any substitution of collateral, 
                release or substitution of a guarantor, 
                reamortization, or similar action;
                  (B) not to exceed $300 for loan assumptions;
                  (C) not to exceed 1 percent of the amount of 
                requested financings under title III of the 
                Small Business Investment Act of 1958 for which 
                the applicant requests a commitment from the 
                Administration for funding during the following 
                year; and
                  (D) to recover the direct, incremental cost 
                involved in the production and dissemination of 
                compilations of information produced by the 
                Administration under the authority of this Act 
                and the Small Business Investment Act of 1958;
          (13) collect, retain and utilize, subject to approval 
        in appropriations Acts, any amounts collected by fiscal 
        transfer agents and not used by such agent as payment 
        of the cost of loan pooling or debenture servicing 
        operations, except that amounts collected under this 
        paragraph and paragraph (12) shall be utilized solely 
        to facilitate the administration of the program that 
        generated the excess amounts; and
          (14) require any lender authorized to make loans 
        under section 7 of this Act to pay examination and 
        review fees, which shall be deposited in the account 
        for salaries and expenses of the Administration, and 
        shall be available for the costs of examinations, 
        reviews, and other lender oversight activities.
  (c) To such extent as he finds necessary to carry out the 
provisions of this Act, the Administrator is authorized to 
procure the temporary (not in excess of one year) or 
intermittent services of experts or consultants or 
organizations thereof, including stenographic reporting 
services, by contract or appointment, and in such cases such 
services shall be without regard to the civil-service and 
classification laws and, except in the case of stenographic 
reporting services by organizations, without regard to the 
civil-service and classification laws and, except in the case 
of stenographic reporting services by organizations, without 
regard to section 3709 of the Revised Statutes, as amended (41 
U.S.C., sec. 5). Any individual so employed may be compensated 
at a rate not in excess of the daily equivalent of the highest 
rate payable under section 5332 of title 5, United States Code, 
including traveltime, and, while such individual is away from 
his or her home or regular place of business, he or she may be 
allowed travel expenses (including per diem in lieu of 
subsistence) as authorized by section 5703 of title 5, United 
States Code.
  (d) Section 3648 of the Revised Statutes (31 U.S.C. 529) 
shall not apply to prepayments of rentals made by the 
Administration on safety deposit boxes used by the 
Administration for the safeguarding of instruments held as 
security for loans or for the safeguarding of other documents.
  (e)(1) Subject to the requirements and conditions contained 
in this subsection, upon application by a small business 
concern which is the recipient of a loan made under this Act, 
the Administration may undertake the small business concern's 
obligation to make the required payments under such loan or may 
suspend such obligation if the loan was a direct loan made by 
the Administration. While such payments are being made by the 
Administration pursuant to the undertaking of such obligation 
or while such obligation is suspended, no such payment with 
respect to the loan may be required from the small business 
concern.
  (2) The Administration may undertake or suspend for a period 
of not to exceed 5 years any small business concern's 
obligation under this subsection only if--
          (A) without such undertaking or suspension of the 
        obligation, the small business concern would, in the 
        sole discretion of the Administration, become insolvent 
        or remain insolvent;
          (B) with the undertaking or suspension of the 
        obligation, the small business concern would, in the 
        sole discretion of the Administration, become or remain 
        a viable small business entity; and
          (C) the small business concern executes an agreement 
        in writing satisfactory to the Administration as 
        provided by paragraph (4).
  (3) Notwithstanding the provisions of sections 7(a)(4)(C) and 
7(i)(1) of this Act, the Administration may extend the maturity 
of any loan on which the Administration undertakes or suspends 
the obligation pursuant to this subsection for a corresponding 
period of time.
  (4)(A) Prior to the undertaking or suspension by the 
Administration of any small business concern's obligation under 
this subsection, the Administration, consistent with the 
purposes sought to be achieved herein, small require the small 
business concern to agree in writing to repay to it the 
aggregate amount of the payments which were required under the 
loan during the period for which such obligation was undertaken 
or suspended, either--
          (i) by periodic payments not less in amount or less 
        frequently falling due than those which were due under 
        the loan during such period, or
          (ii) pursuant to a repayment schedule agreed upon by 
        the Administration and the small business concern, or
          (iii) by a combination of the payments described in 
        clause (i) and clause (ii).
  (B) In addition to requiring the small business concern to 
execute the agreement described in subparagraph (A), the 
Administration shall, prior to the undertaking or suspension of 
the obligation, take such action, and require the small 
business concern to take such action as the Administration 
deems appropriate in the circumstances, including the provision 
of such security as the Administration deems necessary or 
appropriate to insure that the rights and interests of the 
lender (Small Business Administration or participant) will be 
safeguarded adequately during and after the period in which 
such obligation is so undertaken or suspended.
  (f)(1) The guaranteed portion of any loan made pursuant to 
this Act may be sold by the lender, and by any subsequent 
holder, consistent with regulations on such sales as the 
Administration shall establish, subject to the following 
limitations:
          (A) prior to the Administration's approval of the 
        sale, or upon any subsequent resale, of any loan 
        guaranteed by the Administration, if the lender 
        certifies that such loan has been property closed and 
        that the lender has substantially complied with the 
        provisions of the guarantee agreement and the 
        regulations of the Administration, the Administration 
        shall review and approve only materials not previously 
        approved;
          (B) all fees due the Administration on a guaranteed 
        loan shall have been paid in full prior to any sale; 
        and
          (C) each loan, except each loan made under section 
        7(a)(14), shall have been fully disbursed to the 
        borrower prior to any sale.
  (2) After a loan is sold in the secondary market, the lender 
shall remain obligated under its guarantee agreement with the 
Administration, and shall continue to service the loan in a 
manner consistent with the terms and conditions of such 
agreement.
  (3) The Administration shall develop such procedures as are 
necessary for the facilitation, administration, and promotion 
of secondary market operations, and for assessing the increase 
of small business access to capital at reasonable rates and 
terms as a result of secondary market operations. Beginning on 
March 31, 1997, the sale of the unguaranteed portion of any 
loan made under section 7(a) shall not be permitted until a 
final regulation that applies uniformly to both depository 
institutions and other lenders is promulgated by the 
Administration setting forth the terms and conditions under 
which such sales can be permitted, including maintenance of 
appropriate reserve requirements and other safeguards to 
protect the safety and soundness of the program.
  (4) Nothing in this subsection or subsection (g) of this 
section shall be interpreted to impede or extinguish the right 
of the borrower or the successor in interest to such borrower 
to prepay (in whole or in part) any loan made pursuant to 
section 7(a) of this Act, the guaranteed portion of which may 
be included in such trust or pool, or to impede or extinguish 
the rights of any party pursuant to section 7(a)(6)(C) or 
subsection (e) of this section.
  (g)(1) The Administration is authorized to issue trust 
certificates representing ownership of all or a fractional part 
of the guaranteed portion of one or more loans which have been 
guaranteed by the Administration under this Act, or under 
section 502 of the Small Business Investment Act of 1958 (15 
U.S.C. 660): Provided, That such trust certificates shall be 
based on and backed by a trust or pool approved by the 
Administration and composed solely of the entire guaranteed 
portion of such loans.
  (2) The Administration is authorized, upon such terms and 
conditions as are deemed appropriate, to guarantee the timely 
payment of the principal of and interest on trust certificates 
issued by the Administration or its agent for purposes of this 
subsection. Such guarantee shall be limited to the extent of 
principal and interest on the guaranteed portions of loans 
which compose the trust or pool. In the event that a loan in 
such trust or pool is prepaid, either voluntarily or in the 
event of default, the guarantee of timely payment of principal 
and interest on the trust certificates shall be reduced in 
proportion to the amount of principal and interest such prepaid 
loan represents in the trust or pool. Interest on prepaid or 
defaulted loans shall accrue and be guaranteed by the 
Administration only through the date of payment on the 
guarantee. During the term of the trust default of all loans 
constituting the pool.
  (3) The full faith and credit of the United States is pledged 
to the payment of all amounts which may be required to be paid 
under any guarantee of such trust certificates issued by the 
Administration or its agent pursuant to this subsection.
          (4)(A) The Administration may collect a fee for any 
        loan guarantee sold into the secondary market under 
        subsection (f) in an amount equal to not more than 50 
        percent of the portion of the sale price that exceeds 
        110 percent of the outstanding principal amount of the 
        portion of the loan guaranteed by the Administration. 
        Any such fee imposed by the Administration shall be 
        collected by the Administration or by the agent which 
        carries out on behalf of the Administration the central 
        registration functions required by subsection (h) of 
        this section and shall be paid to the Administration 
        and used solely to reduce the subsidy on loans 
        guaranteed under section 7(a) of this Act: Provided, 
        That such fee shall not be charged to the borrower 
        whose loan is guaranteed: and, Provided further, That 
        nothing herein shall preclude any agent of the 
        Administration from collecting a fee approved by the 
        Administration for the functions described in 
        subsection (h)(2).
          (B) The Administration is authorized to impose and 
        collect, either directly or through a fiscal and 
        transfer agent, a reasonable penalty on late payments 
        of the fee authorized under subparagraph (A) in an 
        amount not to exceed 5 percent of such fee per month 
        plus interest.
                  (C) The Administration may contract with an 
                agent to carry out, on behalf of the 
                Administration, the assessment and collection 
                of the annual fee established under section 
                7(a)(23). The agent may receive, as 
                compensation for services, any interest earned 
                on the fee while in the control of the agent 
                before the time at which the agent is 
                contractually required to remit the fee to the 
                Administration.
  (5)(A) In the event the Administration pays a claim under a 
guarantee issued under this subsection, it shall be subrogated 
fully to the rights satisfied by such payment.
  (B) No State or local law, and no Federal law, shall preclude 
or limit the exercise by the Administration of its ownership 
rights in the portions of loans constituting the trust or pool 
against which the trust certificates are issued.
  (6) If the amount of the guaranteed portion of any loan under 
section 7(a) is more than $500,000, the Administrator shall, 
upon request of a pool assembler, divide the loan guarantee 
into increments of $500,000 and 1 increment of any remaining 
amount less than $500,000, in order to permit the maximum 
amount of any loan in a pool to be not more than $500,000. Only 
1 increment of any loan guarantee divided under this paragraph 
may be included in the same pool. Increments of loan guarantees 
to different borrowers that are divided under this paragraph 
may be included in the same pool.
  (h)(1) Upon the adoption of final rules and regulations, the 
Administration shall--
                  (A) provide for a central registration of all 
                loans and trust certificates sold pursuant to 
                subsections (f) and (g) of this section;
                  (B) contract with an agent to carry out on 
                behalf of the Administration the central 
                registration functions of this section and the 
                issuance of trust certificates to facilitate 
                pooling. Such agent shall provide a fidelity 
                bond or insurance in such amounts as the 
                Administration determines to be necessary to 
                fully protect the interest of the Government;
                  (C) prior to any sale, require the seller to 
                disclose to a purchaser of the guaranteed 
                portion of a loan guaranteed under this Act and 
                to the purchaser of a trust certificate issued 
                pursuant to subsection (g), information on the 
                terms, conditions, and yield of such 
                instrument. As used in this paragraph, if the 
                instrument being sold is a loan, the term 
                ``seller'' does not include (A) an entity which 
                made the loan or (B) any individual or entity 
                which sells three or fewer guaranteed loans per 
                year; and
                  (D) have the authority to regulate brokers 
                and dealers in guaranteed loans and trust 
                certificates sold pursuant to subsection (f) 
                and (g) of this section.
          (2) The agent described in paragraph (1)(B) may be 
        compensated through any of the fees assessed under this 
        section and any interest earned on any funds collected 
        by the agent while such funds are in the control of the 
        agent and before the time at which the agent is 
        contractually required to transfer such funds to the 
        Administration or to the holders of the trust 
        certificates, as appropriate.
          (3) Nothing in this subsection shall prohibit the 
        utilization of a book-entry or other electronic form of 
        registration for trust certificates. The Administration 
        may, with the consent of the Secretary of the Treasury, 
        use the book-entry system of the Federal Reserve 
        System.
  (i) Office of Hearings and Appeals.--
          (1) Establishment.--
                  (A) Office.--There is established in the 
                Administration an Office of Hearings and 
                Appeals--
                          (i) to impartially decide matters 
                        relating to program decisions of the 
                        Administrator--
                                  (I) for which Congress 
                                requires a hearing on the 
                                record; or
                                  (II) that the Administrator 
                                designates for hearing by 
                                regulation; and
                          (ii) which shall contain the office 
                        of the Administration that handles 
                        requests submitted pursuant to sections 
                        552 of title 5, United States Code 
                        (commonly referred to as the ``Freedom 
                        of Information Act'') and maintains 
                        records pursuant to section 552a of 
                        title 5, United States Code (commonly 
                        referred to as the ``Privacy Act of 
                        1974'').
                  (B) Jurisdiction.--
                          (i) In general.--Except as provided 
                        in clause (ii), the Office of Hearings 
                        and Appeals shall hear appeals of 
                        agency actions under or pursuant to 
                        this Act, the Small Business Investment 
                        Act of 1958 (15 U.S.C. 661 et seq.), 
                        and title 13 of the Code of Federal 
                        Regulations, and shall hear such other 
                        matters as the Administrator may 
                        determine appropriate.
                          (ii) Exception.--The Office of 
                        Hearings and Appeals shall not 
                        adjudicate disputes that require a 
                        hearing on the record, except disputes 
                        pertaining to the small business 
                        programs described in this Act.
                  (C) Associate administrator.--The head of the 
                Office of Hearings and Appeals shall be the 
                Chief Hearing Officer appointed under section 
                4(b)(1), who shall be responsible to the 
                Administrator.
          (2) Chief hearing officer duties.--
                  (A) In general.--The Chief Hearing Officer 
                shall--
                          (i) be a career appointee in the 
                        Senior Executive Service and an 
                        attorney licensed by a State, 
                        commonwealth, territory or possession 
                        of the United States, or the District 
                        of Columbia; and
                          (ii) be responsible for the operation 
                        and management of the Office of 
                        Hearings and Appeals.
                  (B) Alternative dispute resolution.--The 
                Chief Hearing Officer may assign a matter for 
                mediation or other means of alternative dispute 
                resolution.
          (3) Hearing officers.--
                  (A) In general.--The Office of Hearings and 
                Appeals shall appoint Hearing Officers to carry 
                out the duties described in paragraph 
                (1)(A)(i).
                  (B) Conditions of employment.--A Hearing 
                Officer appointed under this paragraph--
                          (i) shall serve in the excepted 
                        service as an employee of the 
                        Administration under section 2103 of 
                        title 5, United States Code, and under 
                        the supervision of the Chief Hearing 
                        Officer;
                          (ii) shall be classified at a 
                        position to which section 5376 of title 
                        5, United States Code, applies; and
                          (iii) shall be compensated at a rate 
                        not exceeding the maximum rate payable 
                        under such section.
                  (C) Authority; powers.--Notwithstanding 
                section 556(b) of title 5, United States Code--
                          (i) a Hearing Officer may hear cases 
                        arising under section 554 of such 
                        title;
                          (ii) a Hearing Officer shall have the 
                        powers described in section 556(c) of 
                        such title; and
                          (iii) the relevant provisions of 
                        subchapter II of chapter 5 of such 
                        title (except for section 556(b) of 
                        such title) shall apply to such Hearing 
                        Officer.
                  (D) Treatment of current personnel.--An 
                individual serving as a Judge in the Office of 
                Hearings and Appeals (as that position and 
                office are designated in section 134.101 of 
                title 13, Code of Federal Regulations) on the 
                effective date of this subsection shall be 
                considered as qualified to be, and redesignated 
                as, a Hearing Officer.
          (4) Hearing officer defined.--In this subsection, the 
        term ``Hearing Officer'' means an individual appointed 
        or redesignated under this subsection who is an 
        attorney licensed by a State, commonwealth, territory 
        or possession of the United States, or the District of 
        Columbia.

           *       *       *       *       *       *       *

  Sec. 7. (a) Loans to Small Business Concerns; Allowable 
Purposes; Qualified Business; Restrictions and Limitations.--
The Administration is empowered to the extent and in such 
amounts as provided in advance in appropriation Acts to make 
loans for plant acquisition, construction, conversion, or 
expansion, including the acquisition of land, material, 
supplies, equipment, and working capital, and to make loans to 
any qualified small business concern, including those owned by 
qualified Indian tribes, for purposes of this Act. Such 
financings may be made either directly or in cooperation with 
banks or other financial institutions through agreements to 
participate on an immediate or deferred (guaranteed) basis. 
These powers shall be subject, however, to the following 
restrictions, limitations, and provisions:
          (1) In general.--
                  (A) Credit elsewhere.--
                          (i) In general.--No financial 
                        assistance shall be extended pursuant 
                        to this subsection if the applicant can 
                        obtain credit elsewhere. No immediate 
                        participation may be purchased unless 
                        it is shown that a deferred 
                        participation is not available; and no 
                        direct financing may be made unless it 
                        is shown that a participation is not 
                        available.
                          (ii) Liquidity.--On and after October 
                        1, 2015, the Administrator may not 
                        guarantee a loan under this subsection 
                        if the lender determines that the 
                        borrower is unable to obtain credit 
                        elsewhere solely because the liquidity 
                        of the lender depends upon the 
                        guaranteed portion of the loan being 
                        sold on the secondary market.
                  (B) Background checks.--Prior to the approval 
                of any loan made pursuant to this subsection, 
                or section 503 of the Small Business Investment 
                Act of 1958, the Administrator may verify the 
                applicant's criminal background, or lack 
                thereof, through the best available means, 
                including, if possible, use of the National 
                Crime Information Center computer system at the 
                Federal Bureau of Investigation.
                  (C) Lending limits of lenders.--On and after 
                October 1, 2015, the Administrator may not 
                guarantee a loan under this subsection if the 
                sole purpose for requesting the guarantee is to 
                allow the lender to exceed the legal lending 
                limit of the lender.
          (2) Level of participation in guaranteed loans.--
                  (A) In general.--Except as provided in 
                subparagraphs (B), (D), and (E), in an 
                agreement to participate in a loan on a 
                deferred basis under this subsection (including 
                a loan made under the Preferred Lenders 
                Program), such participation by the 
                Administration shall be equal to--
                          (i) 75 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such 
                        balance exceeds $150,000; or
                          (ii) 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such 
                        balance is less than or equal to 
                        $150,000.
                  (B) Reduced participation upon request.--
                          (i) In general.--The guarantee 
                        percentage specified by subparagraph 
                        (A) for any loan under this subsection 
                        may be reduced upon the request of the 
                        participating lender.
                          (ii) Prohibition.--The Administration 
                        shall not use the guarantee percentage 
                        requested by a participating lender 
                        under clause (i) as a criterion for 
                        establishing priorities in approving 
                        loan guarantee requests under this 
                        subsection.
                  (C) Interest rate under preferred lenders 
                program.--
                          (i) In general.--The maximum interest 
                        rate for a loan guaranteed under the 
                        Preferred Lenders Program shall not 
                        exceed the maximum interest rate, as 
                        determined by the Administration, 
                        applicable to other loans guaranteed 
                        under this subsection.
                          (ii) Export-import bank lenders.--Any 
                        lender that is participating in the 
                        Delegated Authority Lender Program of 
                        the Export-Import Bank of the United 
                        States (or any successor to the 
                        Program) shall be eligible to 
                        participate in the Preferred Lenders 
                        Program.
                          (iii) Preferred lenders program 
                        defined.--For purposes of this 
                        subparagraph, the term ``Preferred 
                        Lenders Program'' means any program 
                        established by the Administrator, as 
                        authorized under the proviso in section 
                        5(b)(7), under which a written 
                        agreement between the lender and the 
                        Administration delegates to the 
                        lender--
                                  (I) complete authority to 
                                make and close loans with a 
                                guarantee from the 
                                Administration without 
                                obtaining the prior specific 
                                approval of the Administration; 
                                and
                                  (II) complete authority to 
                                service and liquidate such 
                                loans without obtaining the 
                                prior specific approval of the 
                                Administration for routine 
                                servicing and liquidation 
                                activities, but shall not take 
                                any actions creating an actual 
                                or apparent conflict of 
                                interest.
                  (D) Participation under export working 
                capital program.--In an agreement to 
                participate in a loan on a deferred basis under 
                the Export Working Capital Program established 
                pursuant to paragraph (14)(A), such 
                participation by the Administration shall be 90 
                percent.
                  (E) Participation in international trade 
                loan.--In an agreement to participate in a loan 
                on a deferred basis under paragraph (16), the 
                participation by the Administration may not 
                exceed 90 percent.
          (3) No loan shall be made under this subsection--
                  (A) if the total amount outstanding and 
                committed (by participation or otherwise) to 
                the borrower from the business loan and 
                investment fund established by this Act would 
                exceed $3,750,000 (or if the gross loan amount 
                would exceed $5,000,000), except as provided in 
                subparagraph (B);
                  (B) if the total amount outstanding and 
                committed (on a deferred basis) solely for the 
                purposes provided in paragraph (16) to the 
                borrower from the business loan and investment 
                fund established by this Act would exceed 
                $4,500,000 (or if the gross loan amount would 
                exceed $5,000,000), of which not more than 
                $4,000,000 may be used for working capital, 
                supplies, or financings under section 7(a)(14) 
                for export purposes; and
                  (C) if effected either directly or in 
                cooperation with banks or other lending 
                institutions through agreements to participate 
                on an immediate basis if the amount would 
                exceed $350,000.
          (4) Interest rates and prepayment charges.--
                  (A) Interest rates.--Notwithstanding the 
                provisions of the constitution of any State or 
                the laws of any State limiting the rate or 
                amount of interest which may be charged, taken, 
                received, or reserved, the maximum legal rate 
                of interest on any financing made on a deferred 
                basis pursuant to this subsection shall not 
                exceed a rate prescribed by the Administration, 
                and the rate of interest for the 
                Administration's share of any direct or 
                immediate participation loan shall not exceed 
                the current average market yield on outstanding 
                marketable obligations of the United States 
                with remaining periods to maturity comparable 
                to the average maturities of such loans and 
                adjusted to the nearest one-eighth of 1 per 
                centum, and an additional amount as determined 
                by the Administration, but not to exceed 1 per 
                centum per annum: Provided, That for those 
                loans to assist any public or private 
                organization for the handicapped or to assist 
                any handicapped individual as provided in 
                paragraph (10) of this subsection, the interest 
                rate shall be 3 per centum per annum.
                  (B) Payment of accrued interest.--
                          (i) In general.--Any bank or other 
                        lending institution making a claim for 
                        payment on the guaranteed portion of a 
                        loan made under this subsection shall 
                        be paid the accrued interest due on the 
                        loan from the earliest date of default 
                        to the date of payment of the claim at 
                        a rate not to exceed the rate of 
                        interest on the loan on the date of 
                        default, minus one percent.
                          (ii) Loans sold on secondary 
                        market.--If a loan described in clause 
                        (i) is sold on the secondary market, 
                        the amount of interest paid to a bank 
                        or other lending institution described 
                        in that clause from the earliest date 
                        of default to the date of payment of 
                        the claim shall be no more than the 
                        agreed upon rate, minus one percent.
                          (iii) Applicability.--Clauses (i) and 
                        (ii) shall not apply to loans made on 
                        or after October 1, 2000.
                  (C) Prepayment charges.--
                          (i) In general.--A borrower who 
                        prepays any loan guaranteed under this 
                        subsection shall remit to the 
                        Administration a subsidy recoupment fee 
                        calculated in accordance with clause 
                        (ii) if--
                                  (I) the loan is for a term of 
                                not less than 15 years;
                                  (II) the prepayment is 
                                voluntary;
                                  (III) the amount of 
                                prepayment in any calendar year 
                                is more than 25 percent of the 
                                outstanding balance of the 
                                loan; and
                                  (IV) the prepayment is made 
                                within the first 3 years after 
                                disbursement of the loan 
                                proceeds.
                          (ii) Subsidy recoupment fee.--The 
                        subsidy recoupment fee charged under 
                        clause (i) shall be--
                                  (I) 5 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the first year 
                                after disbursement;
                                  (II) 3 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the second year 
                                after disbursement; and
                                  (III) 1 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the third year 
                                after disbursement.
          (5) No such loans including renewals and extensions 
        thereof may be made for a period or periods exceeding 
        twenty-five years, except that such portion of a loan 
        made for the purpose of acquiring real property or 
        constructing, converting, or expanding facilities may 
        have a maturity of twenty-five years plus such 
        additional period as is estimated may be required to 
        complete such construction, conversion, or expansion.
          (6) All loans made under this subsection shall be of 
        such sound value or so secured as reasonably to assure 
        repayment: Provided, however, That--
                  (A) for loans to assist any public or private 
                organization or to assist any handicapped 
                individual as provided in paragraph (10) of 
                this subsection any reasonable doubt shall be 
                resolved in favor of the applicant;
                  (B) recognizing that greater risk may be 
                associated with loans for energy measures as 
                provided in paragraph (12) of this subsection, 
                factors in determining ``sound value'' shall 
                include, but not be limited to, quality of the 
                product or service; technical qualifications of 
                the applicant or his employees; sales 
                projections; and the financial status of the 
                business concern: Provided further, That such 
                status need not be as sound as that required 
                for general loans under this subsection; and
        On that portion of the loan used to refinance existing 
        indebtedness held by a bank or other lending 
        institution, the Administration shall limit the amount 
        of deferred participation to 80 per centum of the 
        amount of the loan at the time of disbursement: 
        Provided further, That any authority conferred by this 
        subparagraph on the Administration shall be exercised 
        solely by the Administration and shall not be delegated 
        to other than Administration personnel.
          (7) The Administration may defer payments on the 
        principal of such loans for a grace period and use such 
        other methods as it deems necessary and appropriate to 
        assure the successful establishment and operation of 
        such concern.
          (8) The Administration may make loans under this 
        subsection to small business concerns owned and 
        controlled by disabled veterans (as defined in section 
        4211(3) of title 38, United States Code).
          (9) The Administration may provide loans under this 
        subsection to finance residential or commercial 
        construction or rehabilitation for sale: Provided, 
        however, That such loans shall not be used primarily 
        for the acquisition of land.
          (10) The Administration may provide guaranteed loans 
        under this subsection to assist any public or private 
        organization for the handicapped or to assist any 
        handicapped individual, including service-disabled 
        veterans, in establishing, acquiring, or operating a 
        small business concern.
          (11) The Administration may provide loans under this 
        subsection to any small business concern, or to any 
        qualified person seeking to establish such a concern 
        when it determines that such loan will further the 
        policies established in section 2(c) of this Act, with 
        particular emphasis on the preservation or 
        establishment of small business concerns located in 
        urban or rural areas with high proportions of 
        unemployed or low-income individuals or owned by low-
        income individuals.
          (12)(A) The Administration may provide loans under 
        this subsection to assist any small business concern, 
        including start up, to enable such concern to design 
        architecturally or engineer, manufacture, distribute, 
        market, install, or service energy measures: Provided, 
        however, That such loan proceeds shall not be used 
        primarily for research and development.
  (b) The Administration may provide deferred participation 
loans under this subsection to finance the planning, design, or 
installation of pollution control facilities for the purposes 
set forth in section 404 of the Small Business Investment Act 
of 1958. Notwithstanding the limitation expressed in paragraph 
(3) of this subsection, a loan made under this paragraph may 
not result in a total amount outstanding and committed to a 
borrower from the business loan and investment fund of more 
than $1,000,000.
          (13) The Administration may provide financing under 
        this subsection to State and local development 
        companies for the purposes of, and subject to the 
        restrictions in, title V of the Small Business 
        Investment Act of 1958.
          (14) Export working capital program.--
                  (A) In general.--The Administrator may 
                provide extensions of credit, standby letters 
                of credit, revolving lines of credit for export 
                purposes, and other financing to enable small 
                business concerns, including small business 
                export trading companies and small business 
                export management companies, to develop foreign 
                markets. A bank or participating lending 
                institution may establish the rate of interest 
                on such financings as may be legal and 
                reasonable.
                  (B) Terms.--
                          (i) Loan amount.--The Administrator 
                        may not guarantee a loan under this 
                        paragraph of more than $5,000,000.
                          (ii) Fees.--
                                  (I) In general.--For a loan 
                                under this paragraph, the 
                                Administrator shall collect the 
                                fee assessed under paragraph 
                                (23) not more frequently than 
                                once each year.
                                  (II) Untapped credit.--The 
                                Administrator may not assess a 
                                fee on capital that is not 
                                accessed by the small business 
                                concern.
                  (C) Considerations.--When considering loan or 
                guarantee applications, the Administration 
                shall give weight to export-related benefits, 
                including opening new markets for United States 
                goods and services abroad and encouraging the 
                involvement of small businesses, including 
                agricultural concerns, in the export market.
                  (D) Marketing.--The Administrator shall 
                aggressively market its export financing 
                program to small businesses.
          (15)(A) The Administration may guarantee loans under 
        [this subsection to qualified employee trusts] this 
        subsection--
                  (i)to qualified employee trusts to qualified 
                employee trusts with respect to a small 
                business concern for the purpose of purchasing, 
                and for any transaction costs associated with 
                purchasing, stock of the concern under a plan 
                approved by the Administrator which, when 
                carried out, results in the qualified employee 
                trust owning at least 51 per centum of the 
                stock of the concern[.]; and
                  (ii) to a small business concern under a plan 
                approved by the Administrator, if the proceeds 
                from the loan are only used to make a loan to a 
                qualified employee trust, and for any 
                transaction costs associated with making that 
                loan, that results in the qualified employee 
                trust owning at least 51 percent of the small 
                business concern.
          (B) The plan requiring the Administrator's approval 
        under subparagraph (A) shall be submitted to the 
        Administration by the trustee of such trust or by the 
        small business concern with its application for the 
        guarantee. Such plan shall include an agreement with 
        the Administrator which is binding on such trust and on 
        the small business concern and which provides that--
                  (i) not later than the date the loan 
                guaranteed under subparagraph (A) is repaid (or 
                as soon thereafter as is consistent with the 
                requirements of section 401(a) of the Internal 
                Revenue Code of 1954), at least 51 per centum 
                of the total stock of such concern shall be 
                allocated to the accounts of at least 51 per 
                centum of the employees of such concern who are 
                entitled to share in such allocation,
                  (ii) there will be periodic reviews of the 
                role in the management of such concern of 
                employees to whose accounts stock is allocated, 
                [and]
                  (iii) there will be adequate management to 
                assure management expertise and continuity[.], 
                and
                  (iv) with respect to a loan made to a trust, 
                or to a cooperative in accordance with 
                paragraph (35)--
                          (I) a seller of the small business 
                        concern may remain involved as an 
                        officer, director, or key employee of 
                        the small business concern when a 
                        qualified employee trust or cooperative 
                        has acquired 100 percent of ownership 
                        of the small business concern; and
                          (II) any seller of the small business 
                        concern who remains as an owner of the 
                        small business concern, regardless of 
                        the percentage of ownership interest, 
                        shall be required to provide a personal 
                        guarantee by the Administration.
          (C) In determining whether to guarantee any loan 
        under this paragraph, the individual business 
        experience or personal assets of employee-owners shall 
        not be used as criteria, except inasmuch as certain 
        employee-owners may assume managerial responsibilities, 
        in which case business experience may be considered.
          (D) For purposes of this paragraph, a corporation 
        which is controlled by any other person shall be 
        treated as a small business concern if such corporation 
        would, after the plan described in subparagraph (B) is 
        carried out, be treated as a small business concern.
          (E) The Administration shall compile a separate list 
        of applications for assistance under this paragraph, 
        indicating which applications were accepted and which 
        were denied, and shall report periodically to the 
        Congress on the status of employee-owned firms assisted 
        by the [Administration.] Administration, which shall 
        include--
                  (i) the total number of loans made to 
                employee-owned business concerns that were 
                guaranteed by the Administrator under section 
                7(a) of the Small Business Act (15 U.S.C. 
                636(a)) or section 502 of the Small Business 
                Investment Act of 1958 (15 U.S.C. 696), 
                including the number of loans made--
                          (I) to small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged individuals; 
                        and 
                          (II) to cooperatives in which 
                        employees are eligible for membership; 
                  (ii) the total number of financings made to 
                employee-owned business concerns by companies 
                licensed under section 301(c) of the Small 
                Business Investment Act of 1958 (15 U.S.C. 
                696(c)), including the number of financings 
                made--
                          (I) to small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged individuals; 
                        and 
                          (II) to cooperatives in which 
                        employees are eligible for membership; 
                        and 
                  (iii) any outreach and educational activities 
                conducted by the Administration with respect to 
                employee-owned business concerns. 
          (F) A small business concern that makes a loan to a 
        qualified employee trust under subparagraph (A)(ii) is 
        not required to contain the same terms and conditions 
        as the loan made to the small business concern that is 
        guaranteed by the Administration under such 
        subparagraph.
          (G) With respect to a loan made to a qualified 
        employee trust under this paragraph, or to a 
        cooperative in accordance with paragraph (35), the 
        Administrator may, as deemed appropriate, elect to not 
        require any mandatory equity to be provided by the 
        qualified employee trust or cooperative to make the 
        loan.
          (16) International trade.--
                  (A) In general.--If the Administrator 
                determines that a loan guaranteed under this 
                subsection will allow an eligible small 
                business concern that is engaged in or 
                adversely affected by international trade to 
                improve its competitive position, the 
                Administrator may make such loan to assist such 
                concern--
                          (i) in the financing of the 
                        acquisition, construction, renovation, 
                        modernization, improvement, or 
                        expansion of productive facilities or 
                        equipment to be used in the United 
                        States in the production of goods and 
                        services involved in international 
                        trade;
                          (ii) in the refinancing of existing 
                        indebtedness that is not structured 
                        with reasonable terms and conditions, 
                        including any debt that qualifies for 
                        refinancing under any other provision 
                        of this subsection; or
                          (iii) by providing working capital.
                  (B) Security.--
                          (i) In general.--Except as provided 
                        in clause (ii), each loan made under 
                        this paragraph shall be secured by a 
                        first lien position or first mortgage 
                        on the property or equipment financed 
                        by the loan or on other assets of the 
                        small business concern.
                          (ii) Exception.--A loan under this 
                        paragraph may be secured by a second 
                        lien position on the property or 
                        equipment financed by the loan or on 
                        other assets of the small business 
                        concern, if the Administrator 
                        determines the lien provides adequate 
                        assurance of the payment of the loan.
                  (C) Engaged in international trade.--For 
                purposes of this paragraph, a small business 
                concern is engaged in international trade if, 
                as determined by the Administrator, the small 
                business concern is in a position to expand 
                existing export markets or develop new export 
                markets.
                  (D) Adversely affected by international 
                trade.--For purposes of this paragraph, a small 
                business concern is adversely affected by 
                international trade if, as determined by the 
                Administrator, the small business concern--
                          (i) is confronting increased 
                        competition with foreign firms in the 
                        relevant market; and
                          (ii) is injured by such competition.
                  (E) Findings by certain federal agencies.--
                For purposes of subparagraph (D)(ii) the 
                Administrator shall accept any finding of 
                injury by the International Trade Commission or 
                any finding of injury by the Secretary of 
                Commerce pursuant to chapter 3 of title II of 
                the Trade Act of 1974.
                  (F) List of export finance lenders.--
                          (i) Publication of list required.--
                        The Administrator shall publish an 
                        annual list of the banks and 
                        participating lending institutions 
                        that, during the 1-year period ending 
                        on the date of publication of the list, 
                        have made loans guaranteed by the 
                        Administration under--
                                  (I) this paragraph;
                                  (II) paragraph (14); or
                                  (III) paragraph (34).
                          (ii) Availability of list.--The 
                        Administrator shall--
                                  (I) post the list published 
                                under clause (i) on the website 
                                of the Administration; and
                                  (II) make the list published 
                                under clause (i) available, 
                                upon request, at each district 
                                office of the Administration.
          (17) The Administration shall authorize lending 
        institutions and other entities in addition to banks to 
        make loans authorized under this subsection.
          (18) Guarantee fees.--
                  (A) In general.--With respect to each loan 
                guaranteed under this subsection (other than a 
                loan that is repayable in 1 year or less), the 
                Administration shall collect a guarantee fee, 
                which shall be payable by the participating 
                lender, and may be charged to the borrower, as 
                follows:
                          (i) A guarantee fee not to exceed 2 
                        percent of the deferred participation 
                        share of a total loan amount that is 
                        not more than $150,000.
                          (ii) A guarantee fee not to exceed 3 
                        percent of the deferred participation 
                        share of a total loan amount that is 
                        more than $150,000, but not more than 
                        $700,000.
                          (iii) A guarantee fee not to exceed 
                        3.5 percent of the deferred 
                        participation share of a total loan 
                        amount that is more than $700,000.
                          (iv) In addition to the fee under 
                        clause (iii), a guarantee fee equal to 
                        0.25 percent of any portion of the 
                        deferred participation share that is 
                        more than $1,000,000.
                  (B) Retention of certain fees.--Lenders 
                participating in the programs established under 
                this subsection may retain not more than 25 
                percent of a fee collected under subparagraph 
                (A)(i).
          (19)(A) In addition to the Preferred Lenders Program 
        authorized by the proviso in section 5(b)(7), the 
        Administration is authorized to establish a Certified 
        Lenders Program for lenders who establish their 
        knowledge of Administration laws and regulations 
        concerning the guaranteed loan program and their 
        proficiency in program requirements. The designation of 
        a lender as a certified lender shall be suspended or 
        revoked at any time that the Administration determines 
        that the lender is not adhering to its rules and 
        regulations or that the loss experience of the lender 
        is excessive as compared to other lenders, but such 
        suspension or revocation shall not affect any 
        outstanding guarantee.
          (B) In order to encourage all lending institutions 
        and other entities making loans authorized under this 
        subsection to provide loans of $50,000 or less in 
        guarantees to eligible small business loan applicants, 
        the Administration shall develop and allow 
        participating lenders to solely utilize a uniform and 
        simplified loan form for such loans.
                  (C) Authority to liquidate loans.--
                          (i) In general.--The Administrator 
                        may permit lenders participating in the 
                        Certified Lenders Program to liquidate 
                        loans made with a guarantee from the 
                        Administration pursuant to a 
                        liquidation plan approved by the 
                        Administrator.
                          (ii) Automatic approval.--If the 
                        Administrator does not approve or deny 
                        a request for approval of a liquidation 
                        plan within 10 business days of the 
                        date on which the request is made (or 
                        with respect to any routine liquidation 
                        activity under such a plan, within 5 
                        business days) such request shall be 
                        deemed to be approved.
          (20)(A) The Administration is empowered to make loans 
        either directly or in cooperation with banks or other 
        financial institutions through agreements to 
        participate on an immediate or deferred (guaranteed) 
        basis to small business concerns eligible for 
        assistance under subsection (j)(10) and section 8(a). 
        Such assistance may be provided only if the 
        Administration determines that--
                  (i) the type and amount of such assistance 
                requested by such concern is not otherwise 
                available on reasonable terms from other 
                sources;
                  (ii) with such assistance such concern has a 
                reasonable prospect for operating soundly and 
                profitably within a reasonable period of time;
                  (iii) the proceeds of such assistance will be 
                used within a reasonable time for plant 
                construction, conversion, or expansion, 
                including the acquisition of equipment, 
                facilities, machinery, supplies, or material or 
                to supply such concern with working capital to 
                be used in the manufacture of articles, 
                equipment, supplies, or material for defense or 
                civilian production or as may be necessary to 
                insure a well-balanced national economy; and
                  (iv) such assistance is of such sound value 
                as reasonably to assure that the terms under 
                which it is provided will not be breached by 
                the small business concern.
          (B)(i) No loan shall be made under this paragraph if 
        the total amount outstanding and committed (by 
        participation or otherwise) to the borrower would 
        exceed $750,000.
          (ii) Subject to the provisions of clause (i), in 
        agreements to participate in loans on a deferred 
        (guaranteed) basis, participation by the Administration 
        shall be not less than 85 per centum of the balance of 
        the financing outstanding at the time of disbursement.
          (iii) The rate of interest on financings made on a 
        deferred (guaranteed) basis shall be legal and 
        reasonable.
          (iv) Financings made pursuant to this paragraph shall 
        be subject to the following limitations:
                  (I) No immediate participation may be 
                purchased unless it is shown that a deferred 
                participation is not available.
                  (II) No direct financing may be made unless 
                it is shown that a participation is 
                unavailable.
          (C) A direct loan or the Administration's share of an 
        immediate participation loan made pursuant to this 
        paragraph shall be any secured debt instrument--
                  (i) that is subordinated by its terms to all 
                other borrowings of the issuer;
                  (ii) the rate of interest on which shall not 
                exceed the current average market yield on 
                outstanding marketable obligations of the 
                United States with remaining periods to 
                maturity comparable to the average maturities 
                of such loan and adjusted to the nearest one-
                eighth of 1 per centum;
                  (iii) the term of which is not more than 
                twenty-five years; and
                  (iv) the principal on which is amortized at 
                such rate as may be deemed appropriate by the 
                Administration, and the interest on which is 
                payable not less often than annually.
  (21)(A) The Administration may make loans on a guaranteed 
basis under the authority of this subsection--
          (i) to a small business concern that has been (or can 
        reasonably be expected to be) detrimentally affected 
        by--
                  (I) the closure (or substantial reduction) of 
                a Department of Defense installation; or
                  (II) the termination (or substantial 
                reduction) of a Department of Defense program 
                on which such small business was a prime 
                contractor or subcontractor (or supplier) at 
                any tier; or
          (ii) to a qualified individual or a veteran seeking 
        to establish (or acquire) and operate a small business 
        concern.
  (B) Recognizing that greater risk may be associated with a 
loan to a small business concern described in subparagraph 
(A)(i), any reasonable doubts concerning the firm's proposed 
business plan for transition to nondefense-related markets 
shall be resolved in favor of the loan applicant when making 
any determination regarding the sound value of the proposed 
loan in accordance with paragraph (6).
  (C) Loans pursuant to this paragraph shall be authorized in 
such amounts as provided in advance in appropriation Acts for 
the purposes of loans under this paragraph.
  (D) For purposes of this paragraph a qualified individual 
is--
          (i) a member of the Armed Forces of the United 
        States, honorably discharged from active duty 
        involuntarily or pursuant to a program providing 
        bonuses or other inducements to encourage voluntary 
        separation or early retirement;
          (ii) a civilian employee of the Department of Defense 
        involuntarily separated from Federal service or retired 
        pursuant to a program offering inducements to encourage 
        early retirement; or
          (iii) an employee of a prime contractor, 
        subcontractor, or supplier at any tier of a Department 
        of Defense program whose employment is involuntarily 
        terminated (or voluntarily terminated pursuant to a 
        program offering inducements to encourage voluntary 
        separation or early retirement) due to the termination 
        (or substantial reduction) of a Department of Defense 
        program.
          (E) Job creation and community benefit.--In providing 
        assistance under this paragraph, the Administration 
        shall develop procedures to ensure, to the maximum 
        extent practicable, that such assistance is used for 
        projects that--
                  (i) have the greatest potential for--
                          (I) creating new jobs for individuals 
                        whose employment is involuntarily 
                        terminated due to reductions in Federal 
                        defense expenditures; or
                          (II) preventing the loss of jobs by 
                        employees of small business concerns 
                        described in subparagraph (A)(i); and
                  (ii) have substantial potential for 
                stimulating new economic activity in 
                communities most affected by reductions in 
                Federal defense expenditures.
          (22) The Administration is authorized to permit 
        participating lenders to impose and collect a 
        reasonable penalty fee on late payments of loans 
        guaranteed under this subsection in an amount not to 
        exceed 5 percent of the monthly loan payment per month 
        plus interest.
          (23) Yearly fee.--
                  (A) In general.--With respect to each loan 
                approved under this subsection, the 
                Administration shall assess, collect, and 
                retain a fee, not to exceed 0.55 percent per 
                year of the outstanding balance of the deferred 
                participation share of the loan, in an amount 
                established once annually by the Administration 
                in the Administration's annual budget request 
                to Congress, as necessary to reduce to zero the 
                cost to the Administration of making guarantees 
                under this subsection. As used in this 
                paragraph, the term ``cost'' has the meaning 
                given that term in section 502 of the Federal 
                Credit Reform Act of 1990 (2 U.S.C. 661a).
                  (B) Payer.--The yearly fee assessed under 
                subparagraph (A) shall be payable by the 
                participating lender and shall not be charged 
                to the borrower.
                  (C) Lowering of borrower fees.--If the 
                Administration determines that fees paid by 
                lenders and by small business borrowers for 
                guarantees under this subsection may be 
                reduced, consistent with reducing to zero the 
                cost to the Administration of making such 
                guarantees--
                          (i) the Administration shall first 
                        consider reducing fees paid by small 
                        business borrowers under clauses (i) 
                        through (iii) of paragraph (18)(A), to 
                        the maximum extent possible; and
                          (ii) fees paid by small business 
                        borrowers shall not be increased above 
                        the levels in effect on the date of 
                        enactment of this subparagraph.
          (24) Notification requirement.--The Administration 
        shall notify the Committees on Small Business of the 
        Senate and the House of Representatives not later than 
        15 days before making any significant policy or 
        administrative change affecting the operation of the 
        loan program under this subsection.
          (25) Limitation on conducting pilot projects.--
                  (A) In general.--Not more than 10 percent of 
                the total number of loans guaranteed in any 
                fiscal year under this subsection may be 
                awarded as part of a pilot program which is 
                commenced by the Administrator on or after 
                October 1, 1996.
                  (B) Pilot program defined.--In this 
                paragraph, the term ``pilot program'' means any 
                lending program initiative, project, 
                innovation, or other activity not specifically 
                authorized by law.
                  (C) Low documentation loan program.--The 
                Administrator may carry out the low 
                documentation loan program for loans of 
                $100,000 or less only through lenders with 
                significant experience in making small business 
                loans. Not later than 90 days after the date of 
                enactment of this subsection, the Administrator 
                shall promulgate regulations defining the 
                experience necessary for participation as a 
                lender in the low documentation loan program.
          (26) Calculation of subsidy rate.--All fees, 
        interest, and profits received and retained by the 
        Administration under this subsection shall be included 
        in the calculations made by the Director of the Office 
        of Management and Budget to offset the cost (as that 
        term is defined in section 502 of the Federal Credit 
        Reform Act of 1990) to the Administration of purchasing 
        and guaranteeing loans under this Act.
          (28) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the 
        Administration, a borrower may permanently lease to one 
        or more tenants not more than 20 percent of any 
        property constructed with the proceeds of a loan 
        guaranteed under this subsection, if the borrower 
        permanently occupies and uses not less than 60 percent 
        of the total business space in the property.
          (29) Real estate appraisals.--With respect to a loan 
        under this subsection that is secured by commercial 
        real property, an appraisal of such property by a State 
        licensed or certified appraiser--
                  (A) shall be required by the Administration 
                in connection with any such loan for more than 
                $250,000; or
                  (B) may be required by the Administration or 
                the lender in connection with any such loan for 
                $250,000 or less, if such appraisal is 
                necessary for appropriate evaluation of 
                creditworthiness.
          (30) Ownership requirements.--Ownership requirements 
        to determine the eligibility of a small business 
        concern that applies for assistance under any credit 
        program under this Act shall be determined without 
        regard to any ownership interest of a spouse arising 
        solely from the application of the community property 
        laws of a State for purposes of determining marital 
        interests.
          (31) Express loans.--
                  (A) Definitions.--As used in this paragraph:
                          (i) The term ``disaster area'' means 
                        the area for which the President has 
                        declared a major disaster, during the 
                        5-year period beginning on the date of 
                        the declaration.
                          (ii) The term ``express lender'' 
                        means any lender authorized by the 
                        Administration to participate in the 
                        Express Loan Program.
                          (iii) The term ``express loan'' means 
                        any loan made pursuant to this 
                        paragraph in which a lender utilizes to 
                        the maximum extent practicable its own 
                        loan analyses, procedures, and 
                        documentation.
                          (iv) The term ``Express Loan 
                        Program'' means the program for express 
                        loans established by the Administration 
                        under paragraph (25)(B), as in 
                        existence on April 5, 2004, with a 
                        guaranty rate of not more than 50 
                        percent.
                  (B) Restriction to express lender.--The 
                authority to make an express loan shall be 
                limited to those lenders deemed qualified to 
                make such loans by the Administration. 
                Designation as an express lender for purposes 
                of making an express loan shall not prohibit 
                such lender from taking any other action 
                authorized by the Administration for that 
                lender pursuant to this subsection.
                  (C) Grandfathering of existing lenders.--Any 
                express lender shall retain such designation 
                unless the Administration determines that the 
                express lender has violated the law or 
                regulations promulgated by the Administration 
                or modifies the requirements to be an express 
                lender and the lender no longer satisfies those 
                requirements.
                  (D) Maximum loan amount.--The maximum loan 
                amount under the Express Loan Program is 
                $350,000.
                  (E) Option to participate.--Except as 
                otherwise provided in this paragraph, the 
                Administration shall take no regulatory, 
                policy, or administrative action, without 
                regard to whether such action requires 
                notification pursuant to paragraph (24), that 
                has the effect of requiring a lender to make an 
                express loan pursuant to subparagraph (D).
                  (F) Express loans for renewable energy and 
                energy efficiency.--
                          (i) Definitions.--In this 
                        subparagraph--
                                  (I) the term ``biomass''--
                                          (aa) means any 
                                        organic material that 
                                        is available on a 
                                        renewable or recurring 
                                        basis, including--
                                                  (AA) 
                                                agricultural 
                                                crops;
                                                  (BB) trees 
                                                grown for 
                                                energy 
                                                production;
                                                  (CC) wood 
                                                waste and wood 
                                                residues;
                                                  (DD) plants 
                                                (including 
                                                aquatic plants 
                                                and grasses);
                                                  (EE) 
                                                residues;
                                                  (FF) fibers;
                                                  (GG) animal 
                                                wastes and 
                                                other waste 
                                                materials; and
                                                  (HH) fats, 
                                                oils, and 
                                                greases 
                                                (including 
                                                recycled fats, 
                                                oils, and 
                                                greases); and
                                          (bb) does not 
                                        include--
                                                  (AA) paper 
                                                that is 
                                                commonly 
                                                recycled; or
                                                  (BB) 
                                                unsegregated 
                                                solid waste;
                                  (II) the term ``energy 
                                efficiency project'' means the 
                                installation or upgrading of 
                                equipment that results in a 
                                significant reduction in energy 
                                usage; and
                                  (III) the term ``renewable 
                                energy system'' means a system 
                                of energy derived from--
                                          (aa) a wind, solar, 
                                        biomass (including 
                                        biodiesel), or 
                                        geothermal source; or
                                          (bb) hydrogen derived 
                                        from biomass or water 
                                        using an energy source 
                                        described in item (aa).
                          (ii) Loans.--The Administrator may 
                        make a loan under the Express Loan 
                        Program for the purpose of--
                                  (I) purchasing a renewable 
                                energy system; or
                                  (II) carrying out an energy 
                                efficiency project for a small 
                                business concern.
                  (G) Guarantee fee waiver for veterans.--
                          (i) Guarantee fee waiver.--The 
                        Administrator may not collect a 
                        guarantee fee described in paragraph 
                        (18) in connection with a loan made 
                        under this paragraph to a veteran or 
                        spouse of a veteran on or after October 
                        1, 2015.
                          (ii) Exception.--If the President's 
                        budget for the upcoming fiscal year, 
                        submitted to Congress pursuant to 
                        section 1105(a) of title 31, United 
                        States Code, includes a cost for the 
                        program established under this 
                        subsection that is above zero, the 
                        requirements of clause (i) shall not 
                        apply to loans made during such 
                        upcoming fiscal year.
                          (iii) Definition.--In this 
                        subparagraph, the term ``veteran or 
                        spouse of a veteran'' means--
                                  (I) a veteran, as defined in 
                                section 3(q)(4);
                                  (II) an individual who is 
                                eligible to participate in the 
                                Transition Assistance Program 
                                established under section 1144 
                                of title 10, United States 
                                Code;
                                  (III) a member of a reserve 
                                component of the Armed Forces 
                                named in section 10101 of title 
                                10, United States Code;
                                  (IV) the spouse of an 
                                individual described in 
                                subclause (I), (II), or (III); 
                                or
                                  (V) the surviving spouse (as 
                                defined in section 101 of title 
                                38, United States Code) of an 
                                individual described in 
                                subclause (I), (II), or (III) 
                                who died while serving on 
                                active duty or as a result of a 
                                disability that is service-
                                connected (as defined in such 
                                section).
                  (H) Recovery opportunity loans.--
                          (i) In general.--The Administrator 
                        may guarantee an express loan to a 
                        small business concern located in a 
                        disaster area in accordance with this 
                        subparagraph.
                          (ii) Maximums.--For a loan guaranteed 
                        under clause (i)--
                                  (I) the maximum loan amount 
                                is $150,000; and
                                  (II) the guarantee rate shall 
                                be not more than 85 percent.
                          (iii) Overall cap.--A loan guaranteed 
                        under clause (i) shall not be counted 
                        in determining the amount of loans made 
                        to a borrower for purposes of 
                        subparagraph (D).
                          (iv) Operations.--A small business 
                        concern receiving a loan guaranteed 
                        under clause (i) shall certify that the 
                        small business concern was in operation 
                        on the date on which the applicable 
                        major disaster occurred as a condition 
                        of receiving the loan.
                          (v) Repayment ability.--A loan 
                        guaranteed under clause (i) may only be 
                        made to a small business concern that 
                        demonstrates, to the satisfaction of 
                        the Administrator, sufficient capacity 
                        to repay the loan.
                          (vi) Timing of payment of 
                        guarantees.--
                                  (I) In general.--Not later 
                                than 90 days after the date on 
                                which a request for purchase is 
                                filed with the Administrator, 
                                the Administrator shall 
                                determine whether to pay the 
                                guaranteed portion of the loan.
                                  (II) Recapture.--
                                Notwithstanding any other 
                                provision of law, unless there 
                                is a subsequent finding of 
                                fraud by a court of competent 
                                jurisdiction relating to a loan 
                                guaranteed under clause (i), on 
                                and after the date that is 6 
                                months after the date on which 
                                the Administrator determines to 
                                pay the guaranteed portion of 
                                the loan, the Administrator may 
                                not attempt to recapture the 
                                paid guarantee.
                          (vii) Fees.--
                                  (I) In general.--Unless the 
                                Administrator has waived the 
                                guarantee fee that would 
                                otherwise be collected by the 
                                Administrator under paragraph 
                                (18) for a loan guaranteed 
                                under clause (i), and except as 
                                provided in subclause (II), the 
                                guarantee fee for the loan 
                                shall be equal to the guarantee 
                                fee that the Administrator 
                                would collect if the guarantee 
                                rate for the loan was 50 
                                percent.
                                  (II) Exception.--Subclause 
                                (I) shall not apply if the cost 
                                of carrying out the program 
                                under this subsection in a 
                                fiscal year is more than zero 
                                and such cost is directly 
                                attributable to the cost of 
                                guaranteeing loans under clause 
                                (i).
                          (viii) Rules.--Not later than 270 
                        days after the date of enactment of 
                        this subparagraph, the Administrator 
                        shall promulgate rules to carry out 
                        this subparagraph.
          (32) Loans for energy efficient technologies.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``cost'' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          (ii) the term ``covered energy 
                        efficiency loan'' means a loan--
                                  (I) made under this 
                                subsection; and
                                  (II) the proceeds of which 
                                are used to purchase energy 
                                efficient designs, equipment, 
                                or fixtures, or to reduce the 
                                energy consumption of the 
                                borrower by 10 percent or more; 
                                and
                          (iii) the term ``pilot program'' 
                        means the pilot program established 
                        under subparagraph (B)
                  (B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for covered energy efficiency loans.
                  (C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  (D) Maximum participation.--A covered energy 
                efficiency loan shall include the maximum 
                participation levels by the Administrator 
                permitted for loans made under this subsection.
                  (E) Fees.--
                          (i) In general.--The fee on a covered 
                        energy efficiency loan shall be equal 
                        to 50 percent of the fee otherwise 
                        applicable to that loan under paragraph 
                        (18).
                          (ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  (I) for the fiscal year 
                                before that fiscal year, the 
                                annual rate of default of 
                                covered energy efficiency loans 
                                exceeds that of loans made 
                                under this subsection that are 
                                not covered energy efficiency 
                                loans;
                                  (II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making covered energy 
                                efficiency loans; and
                                  (III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          (iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  (I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  (II) shall reinstate the fee 
                                reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          (iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        covered energy efficiency loans as a 
                        direct result of the pilot program.
                  (F) GAO report.--
                          (i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          (ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                  (I) the number of covered 
                                energy efficiency loans for 
                                which fees were reduced under 
                                the pilot program;
                                  (II) a description of the 
                                energy efficiency savings with 
                                the pilot program;
                                  (III) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  (IV) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  (V) recommendations for 
                                improving the pilot program.
          (33) Increased veteran participation program.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``cost'' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          (ii) the term ``pilot program'' means 
                        the pilot program established under 
                        subparagraph (B); and
                          (iii) the term ``veteran 
                        participation loan'' means a loan made 
                        under this subsection to a small 
                        business concern owned and controlled 
                        by veterans of the Armed Forces or 
                        members of the reserve components of 
                        the Armed Forces.
                  (B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for veteran participation loans.
                  (C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  (D) Maximum participation.--A veteran 
                participation loan shall include the maximum 
                participation levels by the Administrator 
                permitted for loans made under this subsection.
                  (E) Fees.--
                          (i) In general.--The fee on a veteran 
                        participation loan shall be equal to 50 
                        percent of the fee otherwise applicable 
                        to that loan under paragraph (18).
                          (ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  (I) for the fiscal year 
                                before that fiscal year, the 
                                annual estimated rate of 
                                default of veteran 
                                participation loans exceeds 
                                that of loans made under this 
                                subsection that are not veteran 
                                participation loans;
                                  (II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making veteran 
                                participation loans; and
                                  (III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          (iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  (I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  (II) shall reinstate the fee 
                                reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          (iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        veteran participation loans as a direct 
                        result of the pilot program.
                  (F) GAO report.--
                          (i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          (ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                  (I) the number of veteran 
                                participation loans for which 
                                fees were reduced under the 
                                pilot program;
                                  (II) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  (III) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  (IV) recommendations for 
                                improving the pilot program.
          (34) Export express program.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``export development 
                        activity'' includes--
                                  (I) obtaining a standby 
                                letter of credit when required 
                                as a bid bond, performance 
                                bond, or advance payment 
                                guarantee;
                                  (II) participation in a trade 
                                show that takes place outside 
                                the United States;
                                  (III) translation of product 
                                brochures or catalogues for use 
                                in markets outside the United 
                                States;
                                  (IV) obtaining a general line 
                                of credit for export purposes;
                                  (V) performing a service 
                                contract from buyers located 
                                outside the United States;
                                  (VI) obtaining transaction-
                                specific financing associated 
                                with completing export orders;
                                  (VII) purchasing real estate 
                                or equipment to be used in the 
                                production of goods or services 
                                for export;
                                  (VIII) providing term loans 
                                or other financing to enable a 
                                small business concern, 
                                including an export trading 
                                company and an export 
                                management company, to develop 
                                a market outside the United 
                                States; and
                                  (IX) acquiring, constructing, 
                                renovating, modernizing, 
                                improving, or expanding a 
                                production facility or 
                                equipment to be used in the 
                                United States in the production 
                                of goods or services for 
                                export; and
                          (ii) the term ``express loan'' means 
                        a loan in which a lender uses to the 
                        maximum extent practicable the loan 
                        analyses, procedures, and documentation 
                        of the lender to provide expedited 
                        processing of the loan application.
                  (B) Authority.--The Administrator may 
                guarantee the timely payment of an express loan 
                to a small business concern made for an export 
                development activity.
                  (C) Level of participation.--
                          (i) Maximum amount.--The maximum 
                        amount of an express loan guaranteed 
                        under this paragraph shall be $500,000.
                          (ii) Percentage.--For an express loan 
                        guaranteed under this paragraph, the 
                        Administrator shall guarantee--
                                  (I) 90 percent of a loan that 
                                is not more than $350,000; and
                                  (II) 75 percent of a loan 
                                that is more than $350,000 and 
                                not more than $500,000.
          (35) Loans to cooperatives.--
                  (A) Definition.--In this paragraph, the term 
                ``cooperative'' means an entity that is 
                determined to be a cooperative by the 
                Administrator, in accordance with applicable 
                Federal and State laws and regulation.
                  (B) Authority.--The Administration shall 
                guarantee loans made to a cooperative for the 
                purpose described in paragraph (15).
  (b) Except as to agricultural enterprises as defined in 
section 18(b)(1) of this Act, the Administration also is 
empowered to the extent and in such amounts as provided in 
advance in appropriation Acts--
          (1)(A) to make such loans (either directly or in 
        cooperation with banks or other lending institutions 
        through agreements to participate on an immediate or 
        deferred (guaranteed) basis) as the Administration may 
        determine to be necessary or appropriate to repair, 
        rehabilitate or replace property, real or personal, 
        damaged or destroyed by or as a result of natural or 
        other disasters: Provided, That such damage or 
        destruction is not compensated for by insurance or 
        otherwise: And provided further, That the 
        Administration may increase the amount of the loan by 
        up to an additional 20 per centum of the aggregate 
        costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise) if it 
        determines such increase to be necessary or appropriate 
        in order to protect the damaged or destroyed property 
        from possible future disasters by taking mitigating 
        measures, including--
                  (i) construction of retaining walls and sea 
                walls;
                  (ii) grading and contouring land; and
                  (iii) relocating utilities and modifying 
                structures, including construction of a safe 
                room or similar storm shelter designed to 
                protect property and occupants from tornadoes 
                or other natural disasters, if such safe room 
                or similar storm shelter is constructed in 
                accordance with applicable standards issued by 
                the Federal Emergency Management Agency;
          (B) to refinance any mortgage or other lien against a 
        totally destroyed or substantially damaged home or 
        business concern: Provided, That no loan or guarantee 
        shall be extended unless the Administration finds that 
        (i) the applicant is not able to obtain credit 
        elsewhere; (ii) such property is to be repaired, 
        rehabilitated, or replaced; (iii) the amount refinanced 
        shall not exceed the amount of physical loss sustained; 
        and (iv) such amount shall be reduced to the extent 
        such mortgage or lien is satisfied by insurance or 
        otherwise; and
          (C) during fiscal years 2000 through 2004, to 
        establish a predisaster mitigation program to make such 
        loans (either directly or in cooperation with banks or 
        other lending institutions through agreements to 
        participate on an immediate or deferred (guaranteed) 
        basis), as the Administrator may determine to be 
        necessary or appropriate, to enable small businesses to 
        use mitigation techniques in support of a formal 
        mitigation program established by the Federal Emergency 
        Management Agency, except that no loan or guarantee may 
        be extended to a small business under this subparagraph 
        unless the Administration finds that the small business 
        is otherwise unable to obtain credit for the purposes 
        described in this subparagraph;
          (2) to make such loans (either directly or in 
        cooperation with banks or other lending institutions 
        through agreements to participate on an immediate or 
        deferred (guaranteed) basis) as the Administration may 
        determine to be necessary or appropriate to any small 
        business concern, private nonprofit organization, or 
        small agricultural cooperative located in an area 
        affected by a disaster, (including drought), with 
        respect to both farm-related and nonfarm-related small 
        business concerns, if the Administration determines 
        that the concern, the organization, or the cooperative 
        has suffered a substantial economic injury as a result 
        of such disaster and if such disaster constitutes--
                  (A) a major disaster, as determined by the 
                President under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.); or
                  (B) a natural disaster, as determined by the 
                Secretary of Agriculture pursuant to section 
                321 of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1961), in which case, 
                assistance under this paragraph may be provided 
                to farm-related and nonfarm-related small 
                business concerns, subject to the other 
                applicable requirements of this paragraph; or
                  (C) a disaster, as determined by the 
                Administrator of the Small Business 
                Administration; or
                  (D) if no disaster declaration has been 
                issued pursuant to subparagraph (A), (B), or 
                (C), the Governor of a State in which a 
                disaster has occurred may certify to the Small 
                Business Administration that small business 
                concerns, private nonprofit organizations, or 
                small agricultural cooperatives (1) have 
                suffered economic injury as a result of such 
                disaster, and (2) are in need of financial 
                assistance which is not available on reasonable 
                terms in the disaster stricken area. Not later 
                than 30 days after the date of receipt of such 
                certification by a Governor of a State, the 
                Administration shall respond in writing to that 
                Governor on its determination and the reasons 
                therefore, and may then make such loans as 
                would have been available under this paragraph 
                if a disaster declaration had been issued.
         Provided, That no loan or guarantee shall be extended 
        pursuant to this paragraph (2) unless the 
        Administration finds that the applicant is not able to 
        obtain credit elsewhere.
          (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 1 year after the date on which such essential 
        employee is discharged or released from active duty. 
        The Administrator may, when appropriate (as determined 
        by the Administrator), extend the ending date specified 
        in the preceding sentence by not more than 1 year.
          (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, or have become due to changed 
        economic circumstances, 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.
                  (G)(i) Notwithstanding any other provision of 
                law, the Administrator may make a loan under 
                this paragraph of not more than $50,000 without 
                collateral.
                  (ii) The Administrator may defer payment of 
                principal and interest on a loan described in 
                clause (i) during the longer of--
                          (I) the 1-year period beginning on 
                        the date of the initial disbursement of 
                        the loan; and
                          (II) the period during which the 
                        relevant essential employee is on 
                        active duty.
                  (H) The Administrator shall give priority to 
                any application for a loan under this paragraph 
                and shall process and make a determination 
                regarding such applications prior to processing 
                or making a determination on other loan 
                applications under this subsection, on a 
                rolling basis.
          (4) Coordination with fema.--
                  (A) In general.--Notwithstanding any other 
                provision of law, for any disaster declared 
                under this subsection or major disaster 
                (including any major disaster relating to which 
                the Administrator declares eligibility for 
                additional disaster assistance under paragraph 
                (9)), the Administrator, in consultation with 
                the Administrator of the Federal Emergency 
                Management Agency, shall ensure, to the maximum 
                extent practicable, that all application 
                periods for disaster relief under this Act 
                correspond with application deadlines 
                established under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5121 et seq.), or as extended by the 
                President.
                  (B) Deadlines.--Notwithstanding any other 
                provision of law, not later than 10 days before 
                the closing date of an application period for a 
                major disaster (including any major disaster 
                relating to which the Administrator declares 
                eligibility for additional disaster assistance 
                under paragraph (9)), the Administrator, in 
                consultation with the Administrator of the 
                Federal Emergency Management Agency, shall 
                submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives a report that includes--
                          (i) the deadline for submitting 
                        applications for assistance under this 
                        Act relating to that major disaster;
                          (ii) information regarding the number 
                        of loan applications and disbursements 
                        processed by the Administrator relating 
                        to that major disaster for each day 
                        during the period beginning on the date 
                        on which that major disaster was 
                        declared and ending on the date of that 
                        report; and
                          (iii) an estimate of the number of 
                        potential applicants that have not 
                        submitted an application relating to 
                        that major disaster.
          (5) Public awareness of disasters.--If a disaster is 
        declared under this subsection or the Administrator 
        declares eligibility for additional disaster assistance 
        under paragraph (9), the Administrator shall make every 
        effort to communicate through radio, television, print, 
        and web-based outlets, all relevant information needed 
        by disaster loan applicants, including--
                  (A) the date of such declaration;
                  (B) cities and towns within the area of such 
                declaration;
                  (C) loan application deadlines related to 
                such disaster;
                  (D) all relevant contact information for 
                victim services available through the 
                Administration (including links to small 
                business development center websites);
                  (E) links to relevant Federal and State 
                disaster assistance websites, including links 
                to websites providing information regarding 
                assistance available from the Federal Emergency 
                Management Agency;
                  (F) information on eligibility criteria for 
                Administration loan programs, including where 
                such applications can be found; and
                  (G) application materials that clearly state 
                the function of the Administration as the 
                Federal source of disaster loans for homeowners 
                and renters.
          (6) Authority for qualified private contractors.--
                  (A) Disaster loan processing.--The 
                Administrator may enter into an agreement with 
                a qualified private contractor, as determined 
                by the Administrator, to process loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the contractor a fee for each loan 
                processed.
                  (B) Loan loss verification services.--The 
                Administrator may enter into an agreement with 
                a qualified lender or loss verification 
                professional, as determined by the 
                Administrator, to verify losses for loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the lender or verification 
                professional a fee for each loan for which such 
                lender or verification professional verifies 
                losses.
          (7) Disaster assistance employees.--
                  (A) In general.--In carrying out this 
                section, the Administrator may, where 
                practicable, ensure that the number of full-
                time equivalent employees--
                          (i) in the Office of the Disaster 
                        Assistance is not fewer than 800; and
                          (ii) in the Disaster Cadre of the 
                        Administration is not fewer than 1,000.
                  (B) Report.--In carrying out this subsection, 
                if the number of full-time employees for either 
                the Office of Disaster Assistance or the 
                Disaster Cadre of the Administration is below 
                the level described in subparagraph (A) for 
                that office, not later than 21 days after the 
                date on which that staffing level decreased 
                below the level described in subparagraph (A), 
                the Administrator shall submit to the Committee 
                on Appropriations and the Committee on Small 
                Business and Entrepreneurship of the Senate and 
                the Committee on Appropriations and Committee 
                on Small Business of the House of 
                Representatives, a report--
                          (i) detailing staffing levels on that 
                        date;
                          (ii) requesting, if practicable and 
                        determined appropriate by the 
                        Administrator, additional funds for 
                        additional employees; and
                          (iii) containing such additional 
                        information, as determined appropriate 
                        by the Administrator.
          (8) Increased loan caps.--
                  (A) Aggregate loan amounts.--Except as 
                provided in subparagraph (B), and 
                notwithstanding any other provision of law, the 
                aggregate loan amount outstanding and committed 
                to a borrower under this subsection may not 
                exceed $2,000,000.
                  (B) Waiver authority.--The Administrator may, 
                at the discretion of the Administrator, 
                increase the aggregate loan amount under 
                subparagraph (A) for loans relating to a 
                disaster to a level established by the 
                Administrator, based on appropriate economic 
                indicators for the region in which that 
                disaster occurred.
          (9) Declaration of eligibility for additional 
        disaster assistance.--
                  (A) In general.--If the President declares a 
                major disaster, the Administrator may declare 
                eligibility for additional disaster assistance 
                in accordance with this paragraph.
                  (B) Threshold.--A major disaster for which 
                the Administrator declares eligibility for 
                additional disaster assistance under this 
                paragraph shall--
                          (i) have resulted in extraordinary 
                        levels of casualties or damage or 
                        disruption severely affecting the 
                        population (including mass 
                        evacuations), infrastructure, 
                        environment, economy, national morale, 
                        or government functions in an area;
                          (ii) be comparable to the description 
                        of a catastrophic incident in the 
                        National Response Plan of the 
                        Administration, or any successor 
                        thereto, unless there is no successor 
                        to such plan, in which case this clause 
                        shall have no force or effect; and
                          (iii) be of such size and scope 
                        that--
                                  (I) the disaster assistance 
                                programs under the other 
                                paragraphs under this 
                                subsection are incapable of 
                                providing adequate and timely 
                                assistance to individuals or 
                                business concerns located 
                                within the disaster area; or
                                  (II) a significant number of 
                                business concerns outside the 
                                disaster area have suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the incident.
                  (C) Additional economic injury disaster loan 
                assistance.--
                          (i) In general.--If the Administrator 
                        declares eligibility for additional 
                        disaster assistance under this 
                        paragraph, the Administrator may make 
                        such loans under this subparagraph 
                        (either directly or in cooperation with 
                        banks or other lending institutions 
                        through agreements to participate on an 
                        immediate or deferred basis) as the 
                        Administrator determines appropriate to 
                        eligible small business concerns 
                        located anywhere in the United States.
                          (ii) Processing time.--
                                  (I) In general.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 15 days, 
                                the Administrator shall give 
                                priority to the processing of 
                                such applications submitted by 
                                eligible small business 
                                concerns located inside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                                  (II) Suspension of 
                                applications from outside 
                                disaster area.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 30 days, 
                                the Administrator shall suspend 
                                the processing of such 
                                applications submitted by 
                                eligible small business 
                                concerns located outside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                          (iii) Loan terms.--A loan under this 
                        subparagraph shall be made on the same 
                        terms as a loan under paragraph (2).
                  (D) Definitions.--In this paragraph--
                          (i) the term ``disaster area'' means 
                        the area for which the applicable major 
                        disaster was declared;
                          (ii) the term ``disaster-related 
                        substantial economic injury'' means 
                        economic harm to a business concern 
                        that results in the inability of the 
                        business concern to--
                                  (I) meet its obligations as 
                                it matures;
                                  (II) meet its ordinary and 
                                necessary operating expenses; 
                                or
                                  (III) market, produce, or 
                                provide a product or service 
                                ordinarily marketed, produced, 
                                or provided by the business 
                                concern because the business 
                                concern relies on materials 
                                from the disaster area or sells 
                                or markets in the disaster 
                                area; and
                          (iii) the term ``eligible small 
                        business concern'' means a small 
                        business concern--
                                  (I) that has suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the applicable major disaster; 
                                and
                                  (II)(aa) for which not less 
                                than 25 percent of the market 
                                share of that small business 
                                concern is from business 
                                transacted in the disaster 
                                area;
                                  (bb) for which not less than 
                                25 percent of an input into a 
                                production process of that 
                                small business concern is from 
                                the disaster area; or
                                  (cc) that relies on a 
                                provider located in the 
                                disaster area for a service 
                                that is not readily available 
                                elsewhere.
          (10) Reducing closing and disbursement delays.--The 
        Administrator shall provide a clear and concise 
        notification on all application materials for loans 
        made under this subsection and on relevant websites 
        notifying an applicant that the applicant may submit 
        all documentation necessary for the approval of the 
        loan at the time of application and that failure to 
        submit all documentation could delay the approval and 
        disbursement of the loan.
          (11) Increasing transparency in loan approvals.--The 
        Administrator shall establish and implement clear, 
        written policies and procedures for analyzing the 
        ability of a loan applicant to repay a loan made under 
        this subsection.
          (12) Additional awards to small business development 
        centers, women's business centers, and score for 
        disaster recovery.--
                  (A) In general.--The Administration may 
                provide financial assistance to a small 
                business development center, a women's business 
                center described in section 29, the Service 
                Corps of Retired Executives, or any proposed 
                consortium of such individuals or entities to 
                spur disaster recovery and growth of small 
                business concerns located in an area for which 
                the President has declared a major disaster.
                  (B) Form of financial assistance.--Financial 
                assistance provided under this paragraph shall 
                be in the form of a grant, contract, or 
                cooperative agreement.
                  (C) No matching funds required.--Matching 
                funds shall not be required for any grant, 
                contract, or cooperative agreement under this 
                paragraph.
                  (D) Requirements.--A recipient of financial 
                assistance under this paragraph shall provide 
                counseling, training, and other related 
                services, such as promoting long-term 
                resiliency, to small business concerns and 
                entrepreneurs impacted by a major disaster.
                  (E) Performance.--
                          (i) In general.--The Administrator, 
                        in cooperation with the recipients of 
                        financial assistance under this 
                        paragraph, shall establish metrics and 
                        goals for performance of grants, 
                        contracts, and cooperative agreements 
                        under this paragraph, which shall 
                        include recovery of sales, recovery of 
                        employment, reestablishment of business 
                        premises, and establishment of new 
                        small business concerns.
                          (ii) Use of estimates.--The 
                        Administrator shall base the goals and 
                        metrics for performance established 
                        under clause (i), in part, on the 
                        estimates of disaster impact prepared 
                        by the Office of Disaster Assistance 
                        for purposes of estimating loan-making 
                        requirements.
                  (F) Term.--
                          (i) In general.--The term of any 
                        grant, contract, or cooperative 
                        agreement under this paragraph shall be 
                        for not more than 2 years.
                          (ii) Extension.--The Administrator 
                        may make 1 extension of a grant, 
                        contract, or cooperative agreement 
                        under this paragraph for a period of 
                        not more than 1 year, upon a showing of 
                        good cause and need for the extension.
                  (G) Exemption from other program 
                requirements.--Financial assistance provided 
                under this paragraph is in addition to, and 
                wholly separate from, any other form of 
                assistance provided by the Administrator under 
                this Act.
                  (H) Competitive basis.--The Administration 
                shall award financial assistance under this 
                paragraph on a competitive basis.
          (13) Supplemental assistance for contractor 
        malfeasance.--
                  (A) In general.--If a contractor or other 
                person engages in malfeasance in connection 
                with repairs to, rehabilitation of, or 
                replacement of real or personal property 
                relating to which a loan was made under this 
                subsection and the malfeasance results in 
                substantial economic damage to the recipient of 
                the loan or substantial risks to health or 
                safety, upon receiving documentation of the 
                substantial economic damage or the substantial 
                risk to health and safety from an independent 
                loss verifier, and subject to subparagraph (B), 
                the Administrator may increase the amount of 
                the loan under this subsection, as necessary 
                for the cost of repairs, rehabilitation, or 
                replacement needed to address the cause of the 
                economic damage or health or safety risk.
                  (B) Requirements.--The Administrator may only 
                increase the amount of a loan under 
                subparagraph (A) upon receiving an appropriate 
                certification from the borrower and person 
                performing the mitigation attesting to the 
                reasonableness of the mitigation costs and an 
                assignment of any proceeds received from the 
                person engaging in the malfeasance. The 
                assignment of proceeds recovered from the 
                person engaging in the malfeasance shall be 
                equal to the amount of the loan under this 
                section. Any mitigation activities shall be 
                subject to audit and independent verification 
                of completeness and cost reasonableness.
          (14) Business recovery centers.--
                  (A) In general.--The Administrator, acting 
                through the district offices of the 
                Administration, shall identify locations that 
                may be used as recovery centers by the 
                Administration in the event of a disaster 
                declared under this subsection or a major 
                disaster.
                  (B) Requirements for identification.--Each 
                district office of the Administration shall--
                          (i) identify a location described in 
                        subparagraph (A) in each county, 
                        parish, or similar unit of general 
                        local government in the area served by 
                        the district office; and
                          (ii) ensure that the locations 
                        identified under subparagraph (A) may 
                        be used as a recovery center without 
                        cost to the Government, to the extent 
                        practicable.
          (15) Increased oversight of economic injury disaster 
        loans.--The Administrator shall increase oversight of 
        entities receiving loans under paragraph (2), and may 
        consider--
                  (A) scheduled site visits to ensure borrower 
                eligibility and compliance with requirements 
                established by the Administrator; and
                  (B) reviews of the use of the loan proceeds 
                by an entity described in paragraph (2) to 
                ensure compliance with requirements established 
                by the Administrator.
   No loan under this subsection, including renewals and 
extensions thereof, may be made for a period or periods 
exceeding thirty years: Provided, That the Administrator may 
consent to a suspension in the payment of principal and 
interest charges on, and to an extension in the maturity of, 
the Federal share of any loan under this subsection for a 
period not to exceed five years, if (A) the borrower under such 
loan is a homeowner or a small business concern, (B) the loan 
was made to enable (i) such homeowner to repair or replace his 
home, or (ii) such concern to repair or replace plant or 
equipment which was damaged or destroyed as the result of a 
disaster meeting the requirements of clause (A) or (B) of 
paragraph (2) of this subsection, and (C) the Administrator 
determines such action is necessary to avoid severe financial 
hardship: Provided further, That the provisions of paragraph 
(1) of subsection (d) of this section shall not be applicable 
to any such loan having a maturity in excess of twenty years. 
Notwithstanding any other provision of law, and except as 
provided in subsection (d), the interest rate on the 
Administration's share of any loan made under subsection (b), 
shall not exceed the average annual interest rate on all 
interest-bearing obligations of the United States then forming 
a part of the public debt as computed at the end of the fiscal 
year next preceding the date of the loan and adjusted to the 
nearest one-eight of 1 per centum plus one-quarter of 1 per 
centum: Provided, however, That the interest rate for loans 
made under paragraphs (1) and (2) hereof shall not exceed the 
rate of interest which is in effect at the time of the 
occurrence of the disaster. In agreements to participate in 
loans on a deferred basis under this subsection, such 
participation by the Administration shall not be in excess of 
90 per centum of the balance of the loan outstanding at the 
time of disbursement. Notwithstanding any other provision of 
law, the interest rate on the Administration's share of any 
loan made pursuant to paragraph (1) of this subsection to 
repair or replace a primary residence and/or replace or repair 
damaged or destroyed personal property, less the amount of 
compensation by insurance or otherwise, with respect to a 
disaster occurring on or after July 1, 1976, and prior to 
October 1, 1978, shall be: 1 per centum on the amount of such 
loan not exceeding $10,000, and 3 per centum on the amount of 
such loan over $10,000 but not exceeding $40,000. The interest 
rate on the Administration's share of the first $250,000 of all 
other loans made pursuant to paragraph (1) of this subsection, 
with respect to a disaster occurring on or after July 1, 1976, 
and prior to October 1, 1978, shall be 3 per centum. All 
repayments of principal on the Administration's share of any 
loan made under the above provisions shall first be applied to 
reduce the principal sum of such loan which bears interest at 
the lower rates provided in this paragraph. The principal 
amount of any loan made pursuant to paragraph (1) in connection 
with a disaster which occurs on or after April 1, 1977, but 
prior to January 1, 1978, may be increased by such amount, but 
not more than $2,000, as the Administration determines to be 
reasonable in light of the amount and nature of loss, damage, 
or injury sustained in order to finance the installation of 
insulation in the property which was lost, damaged, or injured, 
if the uninsured, damaged portion of the property is 10 per 
centum or more of the market value of the property at the time 
of the disaster. No later than June 1, 1978, the Administration 
shall prepare and transmit to the Select Committee on Small 
Business of the Senate, the Committee on Small Business of the 
House of Representatives, and the Committee of the Senate and 
House of Representatives having jurisdiction over measures 
relating to energy conservation, a report on its activities 
under this paragraph, including therein an evaluation of the 
effect of such activities on encouraging the installation of 
insulation in property which is repaired or replaced after a 
disaster which is subject to this paragraph, and its 
recommendations with respect to the continuation, modification, 
or termination of such activities.
   In the administration of the disaster loan program under 
paragraphs (1) and (2) of this subsection, in the case of 
property loss or damage or injury resulting from a major 
disaster as determined by the President or a disaster as 
determined by the Administrator which occurs on or after 
January 1, 1971, and prior to July 1, 1973, the Small Business 
Administration, to the extent such loss or damage or injury is 
not compensated for by insurance or otherwise--
          (A) may make any loan for repair, rehabilitation, or 
        replacement of property damaged or destroyed without 
        regard to whether the required financial assistance is 
        otherwise available from private sources;
          (B) may, in the case of the total destruction or 
        substantial property damage of a home or business 
        concern, refinance any mortgage or other liens 
        outstanding against the destroyed or damaged property 
        if such project is to be repaired, rehabilitated, or 
        replaced, except that (1) in the case of a business 
        concern, the amount refinanced shall not exceed the 
        amount of the physical loss sustained, and (2) in the 
        case of a home, the amount of each monthly payment of 
        principal and interest on the loan after refinancing 
        under this clause shall be not less than the amount of 
        each such payment made prior to such refinancing;
          (C) may, in the case of a loan made under clause (A) 
        or a mortgage or other lien refinanced under clause (B) 
        in connection with the destruction of, or substantial 
        damage to, property owned and used as a residence by an 
        individual who by reason of retirement, disability, or 
        other similar circumstances relies for support on 
        survivor, disability, or retirement benefits under a 
        pension, insurance, or other program, consent to the 
        suspension of the payments of the principal of that 
        loan, mortgage, or lien during the lifetime of that 
        individual and his souse for so long as the 
        Administration determines that making such payments 
        would constitute a substantial hardship;
          (D) shall, notwithstanding the provisions of any 
        other law and upon presentation by the applicant of 
        proof of loss or damage or injury and a bona fide 
        estimate of cost of repair, rehabilitation, or 
        replacement, cancel the principal of any loan made to 
        cover a loss or damage or injury resulting from such 
        disaster, except that--
                  (i) with respect to a loan made in connection 
                with a disaster occurring on or after January 
                1, 1971 but prior to January 1, 1972, the total 
                amount so canceled shall not exceed $2,500, and 
                the interest on the balance of the loan shall 
                be at a rate of 3 per centum per annum; and
                  (ii) with respect to a loan made in 
                connection with a disaster occurring on or 
                after January 1, 1972 but prior to July 1, 
                1973, the total amount so canceled shall not 
                exceed $5,000, and the interest on the balance 
                of the loan shall be at a rate of 1 per centum 
                per annum.
  With respect to any loan referred to in clause (D) which is 
outstanding on the date of enactment of this paragraph, the 
Administrator shall--
          (i) make sure change in the interest rate on the 
        balance of such loan as is required under that clause 
        effective as of such date of enactment; and
          (ii) in applying the limitation set forth in that 
        clause with respect to the total amount of such loan 
        which may be canceled, consider as part of the amount 
        so canceled any part of such loan which was previously 
        canceled pursuant to section 231 of the Disaster Relief 
        Act of 1970.
  Whoever wrongfully misapplies the proceeds of a loan obtained 
under this subsection shall be civilly liable to the 
Administrator in an amount equal to one-and-one-half times the 
original principal amount of the loan.
          (E) A State grant made on or prior to July 1, 1979, 
        shall not be considered compensation for the purpose of 
        applying the provisions of section 312(a) of the 
        Disaster Relief and Emergency Assistance Act to a 
        disaster loan under paragraph (1) (2)of this 
        subsection.
  (c) Private Disaster Loans.--
          (1) Definitions.--In this subsection--
                  (A) the term ``disaster area'' means any area 
                for which the President declared a major 
                disaster relating to which the Administrator 
                declares eligibility for additional disaster 
                assistance under subsection (b)(9), during the 
                period of that major disaster declaration;
                  (B) the term ``eligible individual'' means an 
                individual who is eligible for disaster 
                assistance under subsection (b)(1) relating to 
                a major disaster relating to which the 
                Administrator declares eligibility for 
                additional disaster assistance under subsection 
                (b)(9);
                  (C) the term ``eligible small business 
                concern'' means a business concern that is--
                          (i) a small business concern, as 
                        defined under this Act; or
                          (ii) a small business concern, as 
                        defined in section 103 of the Small 
                        Business Investment Act of 1958;
                  (D) the term ``preferred lender'' means a 
                lender participating in the Preferred Lender 
                Program;
                  (E) the term ``Preferred Lender Program'' has 
                the meaning given that term in subsection 
                (a)(2)(C)(ii); and
                  (F) the term ``qualified private lender'' 
                means any privately-owned bank or other lending 
                institution that--
                          (i) is not a preferred lender; and
                          (ii) the Administrator determines 
                        meets the criteria established under 
                        paragraph (10).
          (2) Program required.--The Administrator shall carry 
        out a program, to be known as the Private Disaster 
        Assistance program, under which the Administration may 
        guarantee timely payment of principal and interest, as 
        scheduled, on any loan made to an eligible small 
        business concern located in a disaster area and to an 
        eligible individual.
          (3) Use of loans.--A loan guaranteed by the 
        Administrator under this subsection may be used for any 
        purpose authorized under subsection (b).
          (4) Online applications.--
                  (A) Establishment.--The Administrator may 
                establish, directly or through an agreement 
                with another entity, an online application 
                process for loans guaranteed under this 
                subsection.
                  (B) Other federal assistance.--The 
                Administrator may coordinate with the head of 
                any other appropriate Federal agency so that 
                any application submitted through an online 
                application process established under this 
                paragraph may be considered for any other 
                Federal assistance program for disaster relief.
                  (C) Consultation.--In establishing an online 
                application process under this paragraph, the 
                Administrator shall consult with appropriate 
                persons from the public and private sectors, 
                including private lenders.
          (5) Maximum amounts.--
                  (A) Guarantee percentage.--The Administrator 
                may guarantee not more than 85 percent of a 
                loan under this subsection.
                  (B) Loan amount.--The maximum amount of a 
                loan guaranteed under this subsection shall be 
                $2,000,000.
          (6) Terms and conditions.--A loan guaranteed under 
        this subsection shall be made under the same terms and 
        conditions as a loan under subsection (b).
          (7) Lenders.--
                  (A) In general.--A loan guaranteed under this 
                subsection made to--
                          (i) a qualified individual may be 
                        made by a preferred lender; and
                          (ii) a qualified small business 
                        concern may be made by a qualified 
                        private lender or by a preferred lender 
                        that also makes loans to qualified 
                        individuals.
                  (B) Compliance.--If the Administrator 
                determines that a preferred lender knowingly 
                failed to comply with the underwriting 
                standards for loans guaranteed under this 
                subsection or violated the terms of the 
                standard operating procedure agreement between 
                that preferred lender and the Administration, 
                the Administrator shall do 1 or more of the 
                following:
                          (i) Exclude the preferred lender from 
                        participating in the program under this 
                        subsection.
                          (ii) Exclude the preferred lender 
                        from participating in the Preferred 
                        Lender Program for a period of not more 
                        than 5 years.
          (8) Fees.--
                  (A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                  (B) Origination fee.--The Administrator may 
                pay a qualified private lender or preferred 
                lender an origination fee for a loan guaranteed 
                under this subsection in an amount agreed upon 
                in advance between the qualified private lender 
                or preferred lender and the Administrator.
          (9) Documentation.--A qualified private lender or 
        preferred lender may use its own loan documentation for 
        a loan guaranteed by the Administrator under this 
        subsection, to the extent authorized by the 
        Administrator. The ability of a lender to use its own 
        loan documentation for a loan guaranteed under this 
        subsection shall not be considered part of the criteria 
        for becoming a qualified private lender under the 
        regulations promulgated under paragraph (10).
          (10) Implementation regulations.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of the Small Business 
                Disaster Response and Loan Improvements Act of 
                2008, the Administrator shall issue final 
                regulations establishing permanent criteria for 
                qualified private lenders.
                  (B) Report to congress.--Not later than 6 
                months after the date of enactment of the Small 
                Business Disaster Response and Loan 
                Improvements Act of 2008, the Administrator 
                shall submit a report on the progress of the 
                regulations required by subparagraph (A) to the 
                Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
          (11) Authorization of appropriations.--
                  (A) In general.--Amounts necessary to carry 
                out this subsection shall be made available 
                from amounts appropriated to the Administration 
                to carry out subsection (b).
                  (B) Authority to reduce interest rates and 
                other terms and conditions.--Funds appropriated 
                to the Administration to carry out this 
                subsection, may be used by the Administrator to 
                meet the loan terms and conditions specified in 
                paragraph (6).
          (12) Purchase of loans.--The Administrator may enter 
        into an agreement with a qualified private lender or 
        preferred lender to purchase any loan guaranteed under 
        this subsection.
  (d)(1) The Administration may further extend the maturity of 
or renew any loan made pursuant to this section, or any loan 
transferred to the Administration pursuant to Reorganization 
Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 
1957, for additional periods not to exceed ten years beyond the 
period stated therein, if such extension or renewal will aid in 
the orderly liquidation of such loan.
          (2) During any period in which principal and interest 
        charges are suspended on the Federal share of any loan, 
        as provided in subsection (b), the Administrator shall, 
        upon the request of any person, firm, or corporation 
        having a participation in such loan, purchase such 
        participation, or assume the obligation of the 
        borrower, for the balance of such period, to make 
        principal and interest payments on the non-Federal 
        share of such loan: Provided, That no such payments 
        shall be made by the Administrator in behalf of any 
        borrower unless (i) the Administrator determines that 
        such action is necessary in order to avoid a default, 
        and (ii) the borrower agrees to make payments to the 
        Administration in an agreegate amount equal to the 
        amount paid in its behalf by the Administrator, in such 
        manner and at such time (during or after the term of 
        the loan) as the Administrator shall determine having 
        due regard to the purposes sought to be achieved by 
        this paragraph.
          (3) With respect to a disaster occurring on or after 
        October 1, 1978, and prior the effective date of this 
        Act, on the Administration's share of loans made 
        pursuant to paragraph (1) of subsection (b)--
                          (A) if the loan proceeds are to 
                        repair or replace a primary residence 
                        and/or repair or replace damaged or 
                        destroyed personal property, the 
                        interest rate shall be 3 percent on the 
                        first $55,000 of such loan;
                          (B) if the loan proceeds are to 
                        repair or replace property damaged or 
                        destroyed and if the applicant is a 
                        business concern which is unable to 
                        obtain sufficient credit elsewhere, the 
                        interest rate shall be as determined by 
                        the Administration, but not in excess 
                        of 5 percent per annum; and
                  (C) if the loan proceeds are to repair or 
                replace property damaged or destroyed and if 
                the applicant is a business concern which is 
                able to obtain sufficient credit elsewhere, the 
                interest rate shall not exceed the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans and adjusted to the 
                nearest one-eight of 1 percent, and an 
                additional amount as determined by the 
                Administration, but not to exceed 1 percent: 
                Provided, That three years after such loan is 
                fully disbursed and every two years thereafter 
                for the term of the loan, if the Administration 
                determines that the borrower is able to obtain 
                a loan from one-Federal sources at reasonable 
                rates and terms for loans of similar purposes 
                and periods of time, the borrower shall, upon 
                request by the Administration, apply for and 
                accept such a loan in sufficient amount to 
                repay the Administration: Provided further, 
                That no loan under subsection (b)(1) shall be 
                made, 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 such 
                subsection would exceed $500,000 for each 
                disaster, unless an applicant constitutes a 
                major source of employment in an area suffering 
                a disaster, in which case the Administration, 
                in its discretion, may waive the $500,000 
                limitation.
          (4) Notwithstanding the provisions of any other law, 
        the interest rate on the Federal share of any loan made 
        under subsection (b) shall be--
                  (A) in the case of a homeowner unable to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than one-half 
                the rate determined by the Secretary of the 
                Treasury taking into consideration the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eight of 1 per 
                centum but not to exceed 8 per centum per 
                annum;
                  (B) in the case of a homeowner able to secure 
                credit elsewhere, the rate prescribed by the 
                Administration but not more than the rate 
                determined by the Secretary of the Treasury 
                taking into consideration the current average 
                market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum;
                  (C) in the case of a business concern unable 
                to obtain credit elsewhere, not to exceed 8 per 
                centum per annum;
                  (D) in the case of a business concern able to 
                obtain credit elsewhere, the rate prescribed by 
                the Administration but not in excess of the 
                rate prevailing in private market for similar 
                loans and not more than the rate prescribed by 
                the Administration as the maximum interest rate 
                for deferred participation (guaranteed) loans 
                under section 7(a) of this Act. Loans under 
                this subparagraph shall be limited to a maximum 
                term of three years.
          (5) Notwithstanding the provisions of any other law, 
        the interest rate on the Federal share of any loan made 
        under subsection (b)(1) and (b)(2) on account of a 
        disaster commencing on or after October 1, 1982, shall 
        be--
                  (A) in the case of a homeowner unable to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than one-half 
                the rate determined by the Secretary of the 
                Treasury taking into consideration the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loan plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum, but not to exceed 4 per centum per 
                annum;
                  (B) in the case of a homeowner, able to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than the rate 
                determined by the Secretary of the Treasury 
                taking into consideration the current average 
                market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum, but not to exceed 8 per centum per 
                annum;
                  (C) in the case of a business, private 
                nonprofit organization, or other concern, 
                including agricultural cooperatives, unable to 
                obtain credit elsewhere, not to exceed 4 per 
                centum per annum;
                  (D) in the case of a business concern able to 
                obtain credit elsewhere, the rate prescribed by 
                the Administration but not in excess of the 
                lowest of (i) the rate prevailing in the 
                private market for similar loans, (ii) the rate 
                prescribed by the Administration as the maximum 
                interest rate for deferred participation 
                (guaranteed) loans under section 7(a) of this 
                Act, or (iii) 8 per centum per annum. Loans 
                under this subparagraph shall be limited to a 
                maximum term of 7 years.
          (6) Notwithstanding the provisions of any other law, 
        such loans, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        be in amounts equal to 100 per centum of loss. The 
        interest rate for loans made under paragraphs 7(b)(1) 
        and (2), as determined pursuant to paragraph (5), shall 
        be the rate of interest which is in effect on the date 
        of the disaster commenced: Provided, That no loan under 
        paragraphs 7(b) (1) and (2) shall be made, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred (guaranteed) basis, if the total 
        amount outstanding and committed to the borrower under 
        subsection 7(b) would exceed $500,000 for each disaster 
        unless an applicant constitutes a major source of 
        employment in an area suffering a disaster, in which 
        case the Administration, in its discretion, may waive 
        the $500,000 limitation: Provided further, That the 
        Administration, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        not reduce the amount of eligibility for any homeowner 
        on account of loss of real estate to less than $100,000 
        for each disaster nor for any homeowner or lessee on 
        account of loss of personal property to less than 
        $20,000 for each disaster, such sums being in addition 
        to any eligible refinancing: Provided further, That the 
        Administration shall not require collateral for loans 
        of $25,000 or less (or such higher amount as the 
        Administrator determines appropriate in the event of a 
        disaster) which are made under paragraph (1) of 
        subsection (b): Provided further, That the 
        Administrator, in obtaining the best available 
        collateral for a loan of not more than $200,000 under 
        paragraph (1) or (2) of subsection (b) relating to 
        damage to or destruction of the property of, or 
        economic injury to, a small business concern, shall not 
        require the owner of the small business concern to use 
        the primary residence of the owner as collateral if the 
        Administrator determines that the owner has other 
        assets of equal quality and with a value equal to or 
        greater than the amount of the loan that could be used 
        as collateral for the loan: Provided further, That 
        nothing in the preceding proviso may be construed to 
        reduce the amount of collateral required by the 
        Administrator in connection with a loan described in 
        the preceding proviso or to modify the standards used 
        to evaluate the quality (rather than the type) of such 
        collateral. Employees of concerns sharing a common 
        business premises shall be aggregated in determining 
        ``major source of employment'' status for nonprofit 
        applicants owning such premises.
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the 
Administrator shall made such change in the interest rate on 
the balance of such loan as is required herein effective as of 
the date of enactment.
  (7) The Administration shall not withhold disaster assistance 
pursuant to this paragraph to nurseries who are victims of 
drought disasters. As used in section 7(b)(2) the term ``an 
area affected by a disaster'' includes any county, or county 
contiguous thereto, determined to be a disaster by the 
President, the Secretary of Agriculture or the Administrator of 
the Small Business Administration.
          (8) Disaster loans for superstorm sandy.--
                  (A) In general.--Notwithstanding any other 
                provision of law, and subject to the same 
                requirements and procedures that are used to 
                make loans pursuant to subsection (b), a small 
                business concern, homeowner, nonprofit entity, 
                or renter that was located within an area and 
                during the time period with respect to which a 
                major disaster was declared by the President 
                under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5170) by reason of Superstorm Sandy 
                may apply to the Administrator--
                          (i) for a loan to repair, 
                        rehabilitate, or replace property 
                        damaged or destroyed by reason of 
                        Superstorm Sandy; or
                          (ii) if such a small business concern 
                        has suffered substantial economic 
                        injury by reason of Superstorm Sandy, 
                        for a loan to assist such a small 
                        business concern.
                  (B) Timing.--The Administrator shall select 
                loan recipients and make available loans for a 
                period of not less than 1 year after the date 
                on which the Administrator carries out this 
                authority.
                  (C) Inspector general review.--Not later than 
                6 months after the date on which the 
                Administrator begins carrying out this 
                authority, the Inspector General of the 
                Administration shall initiate a review of the 
                controls for ensuring applicant eligibility for 
                loans made under this paragraph.
  (e) The Administration shall not fund any Small Business 
Development Center or any variation thereof, except as 
authorized in section 21 of this Act.
  (f) Additional Requirements for 7(b) Loans.--
          (1) Increased deferment authorized.--
                  (A) In general.--In making loans under 
                subsection (b), the Administrator may provide, 
                to the person receiving the loan, an option to 
                defer repayment on the loan.
                  (B) Period.--The period of a deferment under 
                subparagraph (A) may not exceed 4 years.
  (g) Net Earnings Clauses Prohibited for 7(b) Loans.--In 
making loans under subsection (b), the Administrator shall not 
require the borrower to pay any non-amortized amount for the 
first five years after repayment begins.
  (e) [RESERVED].
  (f) [RESERVED].
  (h)(1) The Administration also is empowered, where other 
financial assistance is not available on reasonable terms, to 
make such loans (either directly or in cooperation with Banks 
or other lending institutions through agreements to participate 
on an immediate or deferred basis) as the Administration may 
determine to be necessary or appropriate--
          (A) to assist any public or private organization--
                  (i) which is organized under the laws of the 
                United States or of any State, operated in the 
                interest of handicapped individuals, the net 
                income of which does not inure in whole or in 
                part to the benefit of any shareholder or other 
                individual;
                  (ii) which complies with any applicable 
                occupational health and safety standard 
                prescribed by the Secretary of Labor; and
                  (iii) which, in the production of commodities 
                and in the provision of services during any 
                fiscal year in which it receives financial 
                assistance under this subsection, employs 
                handicapped individuals for not less than 75 
                per centum of the man-hours required for the 
                production or provision of the commodities or 
                services; or
          (B) to assist any handicapped individual in 
        establishing, acquiring, or operating a small business 
        concern.
  (2) The Administration's share of any loan made under this 
subsection shall not exceed $350,000, nor may any such loan be 
made if the total amount outstanding and committed (by 
participation or otherwise) to the borrower from the business 
loan and investment fund established by section 4(c)(1)(B) of 
this Act would exceed $350,000. In agreements to participate in 
loans on a deferred basis under this subsection, the 
Administration's participation may total 100 per centum of the 
balance of the loan at the time of disbursement. The 
Administration's share of any loan made under this subsection 
shall bear interest at the rate of 3 per centum per annum. The 
maximum term of any such loan, including extensions and 
renewals thereof, may not exceed fifteen years. All loans made 
under this subsection shall be of such sound value or so 
secured as reasonably to assure repayment: Provided, however, 
That any reasonable doubt shall be resolved in favor of the 
applicant.
  (3) For purposes of this subsection, the term ``handicapped 
individual'' means a person 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.
  (i)(1) The Administration also is empowered to make, 
participate (on an immediate basis) in, or guarantee loans, 
repayable in not more than fifteen years, to any small business 
concern, or to any qualified person seeking to establish such a 
concern, when it determines that such loans will further the 
policies established in section 2(b) of this Act, with 
particular emphasis on the preservation or establishment of 
small business concerns located in urban or rural areas with 
high proportions of unemployed or low-income individuals, or 
owned by low-income individuals: Provided, however, That no 
such loans shall be made, participated in, or guaranteed if the 
total of such Federal assistance to a single borrower 
outstanding at any one time would exceed $100,000. The 
Administration may defer payments on the principal of such 
loans for a grace period and use such other methods as it deems 
necessary and appropriate to assure the successful 
establishment and operation of such concern. The Administration 
may, in its discretion, as a condition of such financial 
assistance, require that the borrower take steps to improve his 
management skills by participating in a management training 
program approved by the Administration: Provided, however, That 
any management training program so approved must be of 
sufficient scope and duration to provide reasonable opportunity 
for the individuals served to develop entrepreneurial and 
managerial self-sufficiency.
  (2) The Administration shall encourage, as far as possible, 
the participation of the private business community in the 
program of assistance to such concerns, and shall seek to 
stimulate new private lending activities to such concerns 
through the use of the loan guarantees, participations in 
loans, and pooling arrangements authorized by this subsection.
  (3) To insure an equitable distribution between urban and 
rural areas for loans between $3,500 and $100,000 made under 
this subsection, the Administration is authorized to use the 
agencies and agreements and delegations developed under title 
III of the Economic Opportunity Act of 1964, as amended, as it 
shall determine necessary.
  (4) The Administration shall provide for the continuing 
evaluation of programs under this subsection, including full 
information on the location, income characteristics, and types 
of businesses and individuals assisted, and on new private 
lending activity stimulated, and the results of such evaluation 
together with recommendations shall be included in the report 
required by section 10(a) of this Act.
  (5) Loans made pursuant to this subsection (including 
immediate participation in and guarantees of such loans) shall 
have such terms and conditions as the Administration shall 
determine, subject to the following limitations--
          (A) there is reasonable assurance of repayment of the 
        loan;
          (B) the financial assistance is not otherwise 
        available on reasonable terms from private sources or 
        other Federal, State, or local programs;
          (C) the amount of the loan, together with other funds 
        available, is adequate to assure completion of the 
        project or achievement of the purposes for which the 
        loan is made;
          (D) the loan bears interest at a rate not less than 
        (i) a rate determined by the Secretary of the Treasury, 
        taking into consideration the average market yield on 
        outstanding Treasury obligations of comparable 
        maturity, plus (ii) such additional charge, if any, 
        toward covering other costs of the program as the 
        Administration may determine to be consistent with its 
        purposes: Provided, however, That the rate of interest 
        charged on loans made in redevelopment areas designated 
        under the Public Works and Economic Development Act of 
        1965 (42 U.S.C. 3108 et seq.) shall not exceed the rate 
        currently applicable to new loans made under section 
        201 of that Act (42 U.S.C. 3142); and
          (E) fees not in excess of amounts necessary to cover 
        administrative expenses and probable losses may be 
        required on loan guarantees.
  (6) The Administration shall take such steps as may be 
necessary to insure that, in any fiscal year, at least 50 per 
centum of the amounts loaned or guaranteed pursuant to this 
subsection are allotted to small business concerns located in 
urban areas identified by the Administration as having high 
concentrations of unemployed or low-income individuals or to 
small business concerns owned by low-income individuals. The 
Administration shall define the meaning of low income as it 
applies to owners of small business concerns eligible to be 
assisted under this subsection.
  (7) No financial assistance shall be extended pursuant to 
this subsection when the Administration determines that the 
assistance will be used in relocating establishments from one 
area to another if such relocation would result in an increase 
in unemployment in the area of original location.
  (j)(1) the Administration shall provide financial assistance 
to public or private organizations to pay all or part of the 
cost of projects designated to provide technical or management 
assistance to individuals or enterprises eligible for 
assistance under sections 7(i), 7(j)(10), and 8(a) of this Act, 
with special attention to small businesses located in areas of 
high concentration of unemployed or low-income individuals, to 
small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
  (2) Financial assistance under this subsection may be 
provided for projects, including, but not limited to--
          (A) planning and research, including feasibility 
        studies and market research;
          (B) the identification and development of new 
        business opportunities;
          (C) the furnishing of centralized services with 
        regard to public services and Federal Government 
        programs including programs authorized under sections 
        7(i), (7)(j)(10), and 8(a) of this Act;
          (D) the establishment and strengthening of business 
        service agencies, including trade associations and 
        cooperative; and
          (E) the furnishing of business counseling, management 
        training, and legal and other related services, with 
        special emphasis on the development of management 
        training programs using the resources of the business 
        community, including the development of management 
        training opportunities in existing business, and with 
        emphasis in all cases upon providing management 
        training of sufficient scope and duration to develop 
        entrepreneurial and managerial self-sufficiency on the 
        part of the individuals served.
  (3) The Administration shall encourage the placement of 
subcontracts by businesses with small business concerns located 
in area of high concentration of unemployed or low-income 
individuals, with small businesses owned by low-income 
individuals, and with small businesses eligible to receive 
contracts pursuant to section 8(a) of this Act. The 
Administration may provide incentives and assistance to such 
businesses that will aid in the training and upgrading of 
potential subcontractors or other small business concerns 
eligible for assistance under section 7(i), 7(j), and 8(a), of 
this Act.
  (4) The Administration shall give preference to projects 
which promote the ownership, participation in ownership, or 
management of small businesses owned by low-income individuals 
and small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
  (5) The financial assistance authorized for projects under 
this subsection includes assistance advanced by grant, 
agreement, or contract.
  (6) The Administration is authorized to make payments under 
grants and contracts entered into under this subsection in lump 
sum or installments, and in advance or by way of reimbursement, 
and in the case of grants, with necessary adjustments on 
account of overpayments or underpayments.
  (7) To the extent feasible, services under this subsection 
shall be provided in a location which is easily accessible to 
the individuals and small business concerns served.
  (9) The Administration shall take such steps as may be 
necessary and appropriate, in coordination and cooperation with 
the heads of other Federal departments and agencies, to insure 
that contracts, subcontracts, and deposits made by the Federal 
Government or with programs aided with Federal funds are placed 
in such way as to further the purposes of sections 7(i), 7(j), 
and 8(a) of this Act.
  (10) There is established with the Administration a small 
business and capital ownership development program (hereinafter 
referred to as the ``Program'') which shall provide assistance 
exclusively for small business concerns eligible to receive 
contracts pursuant to section 8(a) of this Act. The program, 
and all other services and activities authorized under section 
7(j) and 8(a) of this Act, shall be managed by the Associate 
Administrator for Minority Small Business and Capital Ownership 
Development under the supervision of, and responsible to, the 
Administrator.
          (A) The Program shall--
                  (i) assist small business concerns 
                participating in the Program (either through 
                public or private organizations) to develop and 
                maintain comprehensive business plans which set 
                forth the Program Participant's specific 
                business targets, objectives, and goals 
                developed and maintained in conformity with 
                subparagraph (D).
                  (ii) provide for such other nonfinancial 
                services as deemed necessary for the 
                establishment, preservation, and growth of 
                small business concerns participating in the 
                Program, including but not limited to (I) loan 
                packaging, (II) financing counseling, (III) 
                accounting and bookkeeping assistance, (IV) 
                marketing assistance, and (V) management 
                assistance;
                  (iii) assist small business concerns 
                participating in the Program to obtain equity 
                and debt financing;
                  (iv) establish regular performance monitoring 
                and reporting systems for small business 
                concerns participating in the Program to assure 
                compliance with their business plans;
                  (v) analyze and report the causes of success 
                and failure of small business concerns 
                participating in the Program; and
                  (vi) provide assistance necessary to help 
                small business concerns participating in the 
                Program to procure surety bonds, with such 
                assistance including, but not limited to, (I) 
                the preparation of application forms required 
                to receive a surety bond, (II) special 
                management and technical assistance designed to 
                meet the specific needs of small business 
                concerns participating in the Program and which 
                have received or are applying to receive a 
                surety bond, and (III) guarantee from the 
                Administration pursuant to title IV, part B of 
                the Small Business Investment Act of 1958.
          (B) Small business concerns eligible to receive 
        contracts pursuant to section 8(a) of this Act shall 
        participate in the Program.
          (C)(i) A small business concern participating in any 
        program or activity conducted under the authority of 
        this paragraph or eligible for the award of contracts 
        pursuant to section 8(a) on September 1, 1988, shall be 
        permitted continued participation and eligibility in 
        such program or activity for a period of time which is 
        the greater of--
                  (I) 9 years less the number of years since 
                the award of its first contract pursuant to 
                section 8(a); or
                  (II) its original fixed program participation 
                term (plus any extension thereof) assigned 
                prior to the effective date of this paragraph 
                plus eighteen months.
          (ii) Nothing contained in this subparagraph shall be 
        deemed to prevent the Administration from instituting a 
        termination or graduation pursuant to subparagraph (F) 
        or (H) for issues unrelated to the expiration of any 
        time period limitation.
          (D)(i) Promptly after certification under paragraph 
        (11) a Program Participant shall submit a business plan 
        (hereinafter referred to as the plan'') as described in 
        clause (ii) of this subparagraph for review by the 
        Business Opportunity Specialist assigned to assist such 
        Program Participant. The plan may be a revision of a 
        preliminary business plan submitted by the Program 
        Participant or required by the Administration as a part 
        of the application for certification under this section 
        and shall be designed to result in the Program 
        Participant eliminating the conditions or circumstances 
        upon which the Administration determined eligibility 
        pursuant to section 8(a)(6). Such plan, and subsequent 
        modifications submitted under clause (iii) of this 
        subparagraph, shall be approved by the business 
        opportunity specialist prior to the Program Participant 
        being eligible for award of a contract pursuant to 
        section 8(a).
                  (ii) The plans submitted under this 
                subparagraph shall include the following:
                          (I) An analysis of market potential, 
                        competitive environment, and other 
                        business analyses estimating the 
                        Program Participant's prospects for 
                        profitable operations during the term 
                        of program participation and after 
                        graduation.
                          (II) An analysis of the Program 
                        Participant's strengths and weaknesses 
                        with particular attention to correcting 
                        any financial, managerial, technical, 
                        or personnel conditions which are 
                        likely to impede the small business 
                        concern from receiving contracts other 
                        than those awarded under section 8(a).
                          (III) Specific targets, objectives, 
                        and goals, for the business development 
                        of the Program Participant during the 
                        next and succeeding years utilizing the 
                        results of the analyses conducted 
                        pursuant to subclauses (I) and (II).
                          (IV) A transition management plan 
                        outlining specific steps to assure 
                        profitable business operations after 
                        graduation (to be incorporated into the 
                        Program Participant's plan during the 
                        first year of the transitional stage of 
                        Program participation).
                          (V) Estimates of contract awards 
                        pursuant to section 8(a) and from other 
                        sources, which the Program Participant 
                        will require to meet the specific 
                        targets, objectives, and goals for the 
                        years covered by its plan. The 
                        estimates established shall be 
                        consistent with the provisions of 
                        subparagraph (I) and section 8(a).
                  (iii) Each Program Participant shall annually 
                review its currently approved plan with its 
                Business Opportunity Specialist and modify such 
                plan as may be appropriate. Any modified plan 
                shall be submitted to the Administration for 
                approval. The currently approved plan shall be 
                considered valid until such time as a modified 
                plan is approved by the Business Opportunity 
                Specialist. Annual reviews pertaining to years 
                in the transitional stage of program 
                participation shall require, as appropriate, a 
                written verification that such Program 
                Participant has complied with the requirements 
                of subparagraph (I) relating to attaining 
                business activity from sources other than 
                contracts awarded pursuant to section 8(a).
                  (iv) Each Program Participant shall annually 
                forecast its needs for contract awards under 
                section 8(a) for the next program year and the 
                succeeding program year during the review of 
                its business plan, conducted pursuant to clause 
                (iii). Such forecast shall be known as the 
                section 8(a) contract support level and shall 
                be included in the Program Participant's 
                business plan. Such forecast shall include--
                          (I) the aggregate dollar value of 
                        contract support to be sought on a 
                        noncompetitive basis under section 
                        8(a), reflecting compliance with the 
                        requirements of subparagraph (I) 
                        relating to attaining business activity 
                        from sources other than contracts 
                        awarded pursuant to section 8(a),
                          (II) the types of contract 
                        opportunities being sought, identified 
                        by Standard Industrial Classification 
                        (SIC) Code or otherwise,
                          (III) an estimate of the dollar value 
                        of contract support to be sought on a 
                        competitive basis, and
                          (IV) such other information as may be 
                        requested by the Business Opportunity 
                        Specialist to provide effective 
                        business development assistance to the 
                        Program Participant.
          (E) A small business concern participating in the 
        program conducted under the authority of this paragraph 
        and eligible for the award of contracts pursuant to 
        section 8(a) shall be denied all such assistance if 
        such concern--
                  (i) voluntarily elects not to continue 
                participation;
                  (ii) completes the period of Program 
                participation as prescribed by paragraph (15);
                  (iii) is terminated pursuant to a termination 
                proceeding conducted in accordance with section 
                8(a)(9); or
                  (iv) is graduated pursuant to a graduation 
                proceeding conducted in accordance with section 
                8(a)(9).
          (F) For the purposes of section and 8(a), the terms 
        ``terminated'' or ``termination'' means the total 
        denial or suspension of assistance under this paragraph 
        or under section 8(a) prior to the graduation of the 
        participating small business concern or prior to the 
        expiration of the maximum program participation in 
        term. An action for termination shall be based upon 
        good cause, including--
                  (i) the failure by such concern to maintain 
                its eligibility for Program participation;
                  (ii) the failure of the concern to engage in 
                business practices that will promote its 
                competitiveness within a reasonable period of 
                time as evidenced by, among other indicators, a 
                pattern of unjustified delinquent performance 
                or terminations for default with respect to 
                contracts awarded under the authority of 
                section 8(a);
                  (iii) a demonstrated pattern of failing to 
                make required submissions or responses to the 
                Administration in a timely manner;
                  (iv) the willful violation of any rule or 
                regulation of the Administration pertaining to 
                material issues;
                  (v) the debarment of the concern or its 
                disadvantaged owners by any agency pursuant to 
                subpart 9.4 of title 48, Code of Federal 
                Regulations (or any successor regulation); or
                  (vi) the conviction of the disadvantaged 
                owner or an officer of the concern for any 
                offense indicating a lack of business integrity 
                including any conviction for embezzlement, 
                theft, forgery, bribery, falsification or 
                violation of section 16. For purposes of this 
                clause, no termination action shall be taken 
                with respect to a disadvantaged owner solely 
                because of the conviction of an officer of the 
                concern (who is other than a disadvantaged 
                owner) unless such owner conspired with, 
                abetted, or otherwise knowingly acquiesced in 
                the activity or omission that was the basis of 
                such officer's conviction.
          (G) The Director of the Division may initiate a 
        termination proceeding by recommending such action to 
        the Associate Administrator for Minority Small Business 
        and Capital Ownership Development. Whenever the 
        Associate Administrator, or a designee of such officer, 
        determines such termination is appropriate, within 15 
        days after making such a determination the Program 
        Participant shall be provided a written notice of 
        intent to terminate, specifying the reasons for such 
        action. No Program Participant shall be terminated from 
        the Program pursuant to subparagraph (F) without first 
        being afforded an opportunity for a hearing in 
        accordance with section 8(a)(9).
          (H) For the purposes of sections 7(j) and 8(a) the 
        term ``graduated'' or ``graduation'' means that the 
        Program Participant is recognized as successfully 
        completing the program by substantially achieving the 
        targets, objectives, and goals contained in the 
        concern's business plan thereby demonstrating its 
        ability to compete in the marketplace without 
        assistance under this section or section 8(a).
          (I)(i) During the developmental stage of its 
        participation in the Program, a Program Participant 
        shall take all reasonable efforts within its control to 
        attain the targets contained in its business plan for 
        contracts awarded other than pursuant to section 8(a) 
        (hereinafter referred to as ``business activity 
        targets.''). Such efforts shall be made a part of the 
        business plan and shall be sufficient in scope and 
        duration to satisfy the Administration that the Program 
        Participant will engage a reasonable marketing strategy 
        that will maximize its potential to achieve its 
        business activity targets.
          (ii) During the transitional stage of the Program a 
        Program Participant shall be subject to regulations 
        regarding business activity targets that are 
        promulgated by the Administration pursuant to clause 
        (iii);
          (iii) The regulations referred to in clause (ii) 
        shall:
                  (I) establish business activity targets 
                applicable to Program Participants during the 
                fifth year and each succeeding year of Program 
                Participation; such targets, for such period of 
                time, shall reflect a reasonably consistent 
                increase in contracts awarded other than 
                pursuant to section 8(a), expressed as a 
                percentage of total sales; when promulgating 
                business activity targets the Administration 
                may establish modified targets for Program 
                Participants that have participated in the 
                Program for a period of longer than four years 
                on the effective date of this subparagraph;
                  (II) require a Program Participant to attain 
                its business activity targets;
                  (III) provide that, before the receipt of any 
                contract to be awarded pursuant to section 
                8(a), the Program Participant (if it is in the 
                transitional stage) must certify that it has 
                complied with the regulations promulgated 
                pursuant to subclause (II), or that it is in 
                compliance with such remedial measures as may 
                have been ordered pursuant to regulations 
                issued under subclause (V);
                  (IV) require the Administration to review 
                each Program Participant's performance 
                regarding attainment of business activity 
                targets during periodic reviews of such 
                Participant's business plan; and
                  (V) authorize the Administration to take 
                appropriate remedial measures with respect to a 
                Program Participant that has failed to attain a 
                required business activity target for the 
                purpose of reducing such Participant's 
                dependence on contracts awarded pursuant to 
                section 8(a); such remedial actions may 
                include, but are not limited to assisting the 
                Program Participant to expand the dollar volume 
                of its competitive business activity or 
                limiting the dollar volume of contracts awarded 
                to the Program Participant pursuant to section 
                8(a); except for actions that would constitute 
                a termination, remedial measures taken pursuant 
                to this subclause shall not be reviewable 
                pursuant to section 8(a)(9).
          (J)(i) The Administration shall conduct an evaluation 
        of a Program Participant's eligibility for continued 
        participation in the Program whenever it receives 
        specific and credible information alleging that such 
        Program Participant no longer meets the requirements 
        for Program eligibility. Upon making a finding that a 
        Program Participant is no longer eligible, the 
        Administration shall initiate a termination proceeding 
        in accordance with subparagraph (F). A Program 
        Participant's eligibility for award of any contract 
        under the authority of section 8(a) may be suspended 
        pursuant to subpart 9.4 of title 48, Code of Federal 
        Regulations (or any successor regulation).
          (ii)(I) Except as authorized by subclauses (II) or 
        (III), no award shall be made pursuant to section 8(a) 
        to a concern other than a small business concern.
          (II) In determining the size of a small business 
        concern owned by a socially and economically 
        disadvantaged Indian tribe (or a wholly owned business 
        entity of such tribe), each firm's size shall be 
        independently determined without regard to its 
        affiliation with the tribe, any entity of the tribal 
        government, or any other business enterprise owned by 
        the tribe, unless the Administrator determines that one 
        or more such tribally owned business concerns have 
        obtained, or are likely to obtain, a substantial unfair 
        competitive advantage within an industry category.
          (III) Any joint venture established under the 
        authority of section 602(b) of Public Law 100-656, the 
        ``Business Opportunity Development Reform Act of 
        1988'', shall be eligible for award of a contract 
        pursuant to section 8(a).
  (11)(A) The Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be responsible 
for coordinating and formulating policies relating to Federal 
assistance to small business concerns eligible for assistance 
under section 7(i) of this Act and small business concerns 
eligible to receive contracts pursuant to section 8(a) of this 
Act.
          (B)(i) Except as provided in clause (iii), no 
        individual who was determined pursuant to section 8(a) 
        to be socially and economically disadvantaged before 
        the effective date of this subparagraph shall be 
        permitted to assert such disadvantage with respect to 
        any other concern making application for certification 
        after such effective date.
                  (ii) Except as provided in clause (iii), any 
                individual upon whom eligibility is based 
                pursuant to section 8(a)(4) shall be permitted 
                to assert such eligibility for only one small 
                business concern.
                  (iii) A socially and economically 
                disadvantaged Indian tribe may own more than 
                one small business concern eligible for 
                assistance pursuant to section 7(j)(10) and 
                section 8(a) if--
                          (I) the Indian tribe does not own 
                        another firm in the same industry which 
                        has been determined to be eligible to 
                        receive contracts under this program, 
                        and
                          (II) the individuals responsible for 
                        the management and daily operations of 
                        the concern do not manage more than two 
                        Program Participants.
  (C) No concern, previously eligible for the award of 
contracts pursuant to section 8(a), shall be subsequently 
recertified for program participation if its prior 
participation in the program was concluded for any of the 
reasons described in paragraph (10)(E).
  (D) A concern eligible for the award of contracts pursuant to 
this subsection shall remain eligible for such contracts if 
there is a transfer of ownership and control (as defined 
pursuant to section 8(a)(4)) to individuals who are determined 
to be socially and economically disadvantaged pursuant to 
section 8(a). In the event of such a transfer, the concern, if 
not terminated or graduated, shall be eligible for a period of 
continued participation in the program not to exceed the time 
limitations prescribed in paragraph (15).
  (E) There is established a Division of Program Certification 
and Eligibility (hereinafter referred to in this paragraph as 
the Division'') that shall be made part of the Office of 
Minority Small Business and Capital Ownership Development. The 
Division shall be headed by a Director who shall report 
directly to the Associate Administrator for Minority Small 
Business and Capital Ownership Development. The Division shall 
establish field offices within such regional offices of the 
Administration as may be necessary to perform efficiently its 
functions and responsibilities.
  (F) Subject to the provisions of section 8(a)(9), the 
functions and responsibility of the Division are to--
          (i) receive, review and evaluate applications for 
        certification pursuant to paragraphs (4), (5), (6) and 
        (7) of section 8(a);
          (ii) advise each program applicant within 15 days 
        after the receipt of an application as to whether such 
        application is complete and suitable for evaluation 
        and, if not, what matters must be rectified;
          (iii) render recommendations on such applications to 
        the Associate Administrator for Minority Small Business 
        and Capital Ownership Development;
          (iv) review and evaluate financial statements and 
        other submissions from concerns participating in the 
        program established by paragraph (10) to ascertain 
        continued eligibility to receive subcontracts pursuant 
        to section 8(a);
          (v) make a request for the initiation of termination 
        or graduation proceedings, as appropriate, to the 
        Associate Administrator for Minority Small Business and 
        Capital Ownership Development;
          (vi) make recommendations to the Associate 
        Administrator for Minority Small Business and Capital 
        Ownership Development concerning protests from 
        applicants that have been denied program admission;
          (vii) decide protests regarding the status of a 
        concern as a disadvantaged concern for purposes of any 
        program or activity conducted under the authority of 
        subsection (d) of section 8, or any other provision of 
        Federal law that references such subsection for a 
        definition of program eligibility; and
          (vii) implement such policy directives as may be 
        issued by the Associate Administrator for Minority 
        Small Business and Capital Ownership Development 
        pursuant to subparagraph (I) regarding, among other 
        things, the geographic distribution of concerns to be 
        admitted to the program and the industrial make-up of 
        such concerns.
  (G) An applicant shall not be denied admission into the 
program established by paragraph (10) due solely to a 
determination by the Division that specific contract 
opportunities are unavailable to assist in the development of 
such concern unless--
          (i) the Government has not previously procured and is 
        unlikely to procure the types of products or services 
        offered by the concern; or
          (ii) the purchases of such products or services by 
        the Federal Government will not be in quantities 
        sufficient to support the developmental needs of the 
        applicant and other Program Participants providing the 
        same or similar items or services.
          (H) Not later than 90 days after receipt of a 
        completed application for Program certification, the 
        Associate Administrator for Minority Small Business and 
        Capital Ownership Development shall certify a small 
        business concern as a Program Participant or shall deny 
        such application.
  (I) Thirty days before the conclusion of each fiscal year, 
the Director of the Division shall review all concerns that 
have been admitted into the Program during the preceding 12-
month period. The review shall ascertain the number of 
entrants, their geographic distribution and industrial 
classification. The Director shall also estimate the expected 
growth of the Program during the next fiscal year and the 
number of additional Business Opportunity Specialists, if any, 
that will be needed to meet the anticipated demand for the 
Program. The findings and conclusions of the Director shall be 
reported to the Associate Administrator for Minority Small 
Business and Capital Ownership Development by September 30 of 
each year. Based on such report and such additional data as may 
be relevant, the Associate Administrator shall, by October 31 
of each year, issue policy and program directives applicable to 
such fiscal year that--
          (i) establish priorities for the solicitation of 
        program applications from underrepresented regions and 
        industry categories;
          (ii) assign staffing levels and allocate other 
        program resources as necessary to meet program needs; 
        and
          (iii) establish priorities in the processing and 
        admission of new Program Participants as may be 
        necessary to achieve an equitable geographic 
        distribution of concerns and a distribution of concerns 
        across all industry categories in proportions needed to 
        increase significantly contract awards to small 
        business concerns owned and controlled by socially and 
        economically disadvantaged individuals. When 
        considering such increase the Administration shall give 
        due consideration to those industrial categories where 
        Federal purchases have been substantial but where the 
        participation rate of such concerns has been limited.
  (12)(A) The Administration shall segment the Capital 
Ownership Development Program into two stages: a developmental 
stage; and a transitional stage.
  (B) The developmental stage of program participation shall be 
designed to assist the concern in its effort to overcome its 
economic disadvantage by providing such assistance as may be 
necessary and appropriate to access its markets and to 
strengthen its financial and managerial skills.
  (C) The transitional stage of program participation shall be 
designed to overcome, insofar as practicable, the remaining 
elements of economic disadvantage and to prepare such concern 
for graduation from the program.
  (13) A Program Participant, if otherwise eligible, shall be 
qualified to receive the following assistance during the stages 
of program participation specified in paragraph 12:
          (A) Contract support pursuant to section 8(a).
          (B) Financial assistance pursuant to section 
        7(a)(20).
          (C) A maximum of two exemptions from the requirements 
        of section 1(a) of the Act entitled ``An Act providing 
        conditions for the purchase of supplies and the making 
        of contracts by the United States, and for other 
        purposes'', approved June 30, 1936 (49 Stat. 2036), 
        which exemptions shall apply only to contracts awarded 
        pursuant to section (8)(a) and shall only be used to 
        allow for contingent agreements by a small business 
        concern to acquire the machinery, equipment, 
        facilities, or labor needed to perform such contracts. 
        No exemption shall be made pursuant to this 
        subparagraph if the contract to which it pertains has 
        an anticipated value in excess of $10,000,000. This 
        subparagraph shall cease to be effective on October 1, 
        1992.
          (D) A maximum of five exemptions from the 
        requirements of the Act entitled ``An Act requiring 
        contracts for the construction, alteration and repair 
        of any public building or public work of the United 
        States to be accompanied by a performance bond 
        protecting the United States and by an additional bond 
        for the protection of persons furnishing material and 
        labor for the construction, alteration, or repair of 
        said public buildings or public works'', approved 
        August 24, 1935 (49 Stat. 793), which exemptions shall 
        apply only to contracts awarded pursuant to section 
        8(a), except that, such exemptions may be granted under 
        this subparagraph only if--
                  (i) the Administration finds that such 
                concern is unable to obtain the requisite bond 
                or bonds from a surety and that no surety is 
                willing to issue a bond subject to the 
                guarantee provision of title IV of the Small 
                Business Investment Act of 1958 (15 U.S.C. 692 
                et seq.);
                  (ii) the Administration and the agency 
                providing the contracting opportunity have 
                provided for the protection of persons 
                furnishing materials or labor to the Program 
                Participant by arranging for the direct 
                disbursement of funds due to such persons by 
                the procuring agency or through any bank the 
                deposits of which are insured by the Federal 
                Deposit Insurance Corporation; and
                  (iii) the contract to which it pertains does 
                not exceed $3,000,000 in amount. This 
                subparagraph shall cease to be effective on 
                October 1, 1994.
          (E) Financial assistance whereby the Administration 
        may purchase in whole or in part, and on behalf of such 
        concerns, skills training or upgrading for employees or 
        potential employees of such concerns. Such assistance 
        may be made without regard to section 18(a). Assistance 
        may be made by direct payment to the training provider 
        or by reimbursing the Program Participant or the 
        Participant's employee, if such reimbursement is found 
        to be reasonable and appropriate. For purposes of this 
        subparagraph the term ``training provider'' shall mean 
        an institution of higher education, a community or 
        vocational college, or an institution eligible to 
        provide skills training or upgrading under title I of 
        the Workforce Innovation and Opportunity Act. The 
        Administration shall, in consultation with the 
        Secretary of Labor, promulgate rules and regulations to 
        implement this subparagraph that establish acceptable 
        training and upgrading performance standards and 
        provide for such monitoring or audit requirements as 
        may be necessary to ensure the integrity of the 
        training effort. No financial assistance shall be 
        granted under the subparagraph unless the Administrator 
        determines that--
                  (i) such concern has documented that it has 
                first explored the use of existing cost-free or 
                cost-subsidized training programs offered by 
                public and private sector agencies working with 
                programs of employment and training and 
                economic development;
                  (ii) no more than five employees or potential 
                employees of such concern are recipients of any 
                benefits under this subparagraph at any one 
                time;
                  (iii) no more than $2,500 shall be made 
                available for any one employee or potential 
                employee;
                  (iv) the length of training or upgrading 
                financed by this subparagraph shall be no less 
                than one month nor more than six months;
                  (v) such concern has given adequate assurance 
                it will employ the trainee or upgraded employee 
                for at least six months after the training or 
                upgrading financed by this subparagraph has 
                been completed and each trainee or upgraded 
                employee has provided a similar assurance to 
                remain within the employ of such concern for 
                such period; if such concern, trainee, or 
                upgraded employee breaches this agreement, the 
                Administration shall be entitled to and shall 
                make diligent efforts to obtain from the 
                violating party the repayment of all funds 
                expended on behalf of the violating party, such 
                repayment shall be made to the Administration 
                together with such interest and costs of 
                collection as may be reasonable; the violating 
                party shall be barred from receiving any 
                further assistance under this subparagraph;
                  (vi) the training to be financed may take 
                place either at such concern's facilities or at 
                those of the training provider; and
                  (vii) such concern will maintain such records 
                as the Administration deems appropriate to 
                ensure that the provisions of this paragraph 
                and any other applicable law have not been 
                violated.
          (F)(i) The transfer of technology or surplus property 
        owned by the United States to such a concern. 
        Activities designed to effect such transfer shall be 
        developed in cooperation with the heads of Federal 
        agencies and shall include the transfer by grant, 
        license, or sale of such technology or property to such 
        a concern. Such property may be transferred to Program 
        Participants on a priority basis. Technology or 
        property transferred under this subparagraph shall be 
        used by the concern during the normal conduct of its 
        business operation and shall not be sold or transferred 
        to any other party (other than the Government) during 
        such concern's term of participation in the Program and 
        for one year thereafter.
                  (ii)(I) In this clause--
                          (aa) the term ``covered period'' 
                        means the 2-year period beginning on 
                        the date on which the President 
                        declared the applicable major disaster; 
                        and
                          (bb) the term ``disaster area'' means 
                        the area for which the President has 
                        declared a major disaster, during the 
                        covered period.
                  (II) The Administrator may transfer 
                technology or surplus property under clause (i) 
                on a priority basis to a small business concern 
                located in a disaster area if--
                          (aa) the small business concern meets 
                        the requirements for such a transfer, 
                        without regard to whether the small 
                        business concern is a Program 
                        Participant; and
                          (bb) for a small business concern 
                        that is a Program Participant, on and 
                        after the date on which the President 
                        declared the applicable major disaster, 
                        the small business concern has not 
                        received property under this 
                        subparagraph on the basis of the status 
                        of the small business concern as a 
                        Program Participant.
                  (III) For any transfer of property under this 
                clause to a small business concern, the terms 
                and conditions shall be the same as a transfer 
                to a Program Participant, except that the small 
                business concern shall agree not to sell or 
                transfer the property to any party other than 
                the Federal Government during the covered 
                period.
                  (IV) A small business concern that receives a 
                transfer of property under this clause may not 
                receive a transfer of property under clause (i) 
                during the covered period.
                  (V) If a small business concern sells or 
                transfers property in violation of the 
                agreement described in subclause (III), the 
                Administrator may initiate proceedings to 
                prohibit the small business concern from 
                receiving a transfer of property under this 
                clause or clause (i), in addition to any other 
                remedy available to the Administrator.
          (G) Training assistance whereby the Administration 
        shall conduct training sessions to assist individuals 
        and enterprises eligible to receive contracts under 
        section 8(a) in the development of business principles 
        and strategies to enhance their ability to successfully 
        compete for contracts in the marketplace.
          (H) Joint ventures, leader-follower arrangements, and 
        teaming agreements between the Program Participant and 
        other Program Participants and other business concerns 
        with respect to contracting opportunities for the 
        research, development, full-scale engineering or 
        production of major systems. Such activities shall be 
        undertaken on the basis of programs developed by the 
        agency responsible for the procurement of the major 
        system, with the assistance of the Administration.
          (I) Transitional management business planning 
        training and technical assistance.
          (J) Program Participants in the developmental stage 
        of Program participation shall be eligible for the 
        assistance provided by subparagraphs (A), (B), (C), 
        (D), (E), (F), and (G).
  (14) Program Participants in the transitional stage of 
Program participation shall be eligible for the assistance 
provided by subparagraphs (A), (B), (F), (G), (H), and (I) of 
paragraph (13).
  (15) Subject to the provisions of paragraph (10)(C), a small 
business concern may receive developmental assistance under the 
Program and contracts under section 8(a) for a total period of 
not longer than nine years, measured from the date of its 
certification under the authority of such section, of which--
          (A) no more than four years may be spent in the 
        developmental stage of Program Participation; and
          (B) no more than five years may be spent in the 
        transitional stage of Program Participation.
  (16)(A) The Administrator shall develop and implement a 
process for the systematic collection of data on the operations 
of the Program established pursuant to paragraph (10).
  (B) Not later than April 30 of each year, the Administrator 
shall submit a report to the Congress on the Program that shall 
include the following:
          (i) The average personal net worth of individuals who 
        own and control concerns that were initially certified 
        for participation in the Program during the immediately 
        preceding fiscal year. The Administrator shall also 
        indicate the dollar distribution of net worths, at 
        $50,000 increments, of all such individuals found to be 
        socially and economically disadvantaged. For the first 
        report required pursuant to this paragraph the 
        Administrator shall also provide the data specified in 
        the preceding sentence for all eligible individuals in 
        the Program as of the effective date of this paragraph.
          (ii) A description and estimate of the benefits and 
        costs that have accrued to the economy and the 
        Government in the immediately preceding fiscal year due 
        to the operations of those business concerns that were 
        performing contracts awarded pursuant to section 8(a).
          (iii) A compilation and evaluation of those business 
        concerns that have exited the Program during the 
        immediately preceding three fiscal years. Such 
        compilation and evaluation shall detail the number of 
        concerns actively engaged in business operations, those 
        that have ceased or substantially curtailed such 
        operations, including the reasons for such actions, and 
        those concerns that have been acquired by other firms 
        or organizations owned and controlled by other than 
        socially and economically disadvantaged individuals. 
        For those businesses that have continued operations 
        after they exited from the Program, the Administrator 
        shall also separately detail the benefits and costs 
        that have accrued to the economy during the immediately 
        preceding fiscal year due to the operations of such 
        concerns.
          (iv) A listing of all participants in the Program 
        during the preceding fiscal year identifying, by State 
        and by Region, for each firm: the name of the concern, 
        the race or ethnicity, and gender of the disadvantaged 
        owners, the dollar value of all contracts received in 
        the preceding year, the dollar amount of advance 
        payments received by each concern pursuant to contracts 
        awarded under section 8(a), and a description including 
        (if appropriate) an estimate of the dollar value of all 
        benefits received pursuant to paragraphs (13) and (14) 
        and section 7(a)(20) during such year.
          (v) The total dollar value of contracts and options 
        awarded during the preceding fiscal year pursuant to 
        section 8(a) and such amount expressed as a percentage 
        of total sales of (I) all firms participating in the 
        Program during such year; and (II) of firms in each of 
        the nine years of program participation.
          (vi) A description of such additional resources or 
        program authorities as may be required to provide the 
        types of services needed over the next two-year period 
        to service the expected portfolio of firms certified 
        pursuant to section 8(a).
          (vii) The total dollar value of contracts and options 
        awarded pursuant to section 8(a), at such dollar 
        increments as the Administrator deems appropriate, for 
        each four digit standard industrial classification code 
        under which such contracts and options were classified.
  (C) The first report required by subparagraph (B) shall 
pertain to fiscal year 1990.
  (k) In carrying out its functions under subsections 7(i), 
7(j), and 8(a) of this Act, the Administration is authorized--
          (1) to utilize, with their consent, the services and 
        facilities of Federal agencies without reimbursement, 
        and, with the consent of any State or political 
        subdivision of a State, accept and utilize the services 
        and facilities of such State or subdivision without 
        reimbursement;
          (2) to accept, in the name of the Administration, and 
        employ or dispose of in furtherance of the purposes of 
        this Act, any money or property, real, personal, or 
        mixed, tangible, or intangible, received by gift, 
        device, bequest, or otherwise;
          (3) to accept voluntary and uncompensated services, 
        notwithstanding the provisions of section 3679(b) of 
        the Revised Statutes (31 U.S.C. 655(b)); and
          (4) to employ experts and consultants or 
        organizations thereof as authorized by section 15 of 
        the Administrative Expenses Act of 1946 (5 U.S.C. 55a), 
        except that no individual may be employed under the 
        authority of this subsection for more than one hundred 
        days in any fiscal year; to compensate individuals so 
        employed at rates not in excess of the daily equivalent 
        of the highest rate payable under section 5332 of title 
        5, United States Code, including traveltime; and to 
        allow them, while away from their homes or regular 
        places of business, travel expenses (including per diem 
        in lieu of subsistence) a authorized by section 5 of 
        such Act (5 U.S.C. 73b-2) for persons in the Government 
        service employed intermittently, while so employed: 
        Provided, however, That contracts for such employment 
        may be renewed annually.
  (l) Small Business Intermediary Lending Pilot Program.--
          (1) Definitions.--In this subsection--
                  (A) the term ``eligible intermediary''--
                          (i) means a private, nonprofit entity 
                        that--
                                  (I) seeks or has been awarded 
                                a loan from the Administrator 
                                to make loans to small business 
                                concerns under this subsection; 
                                and
                                  (II) has not less than 1 year 
                                of experience making loans to 
                                startup, newly established, or 
                                growing small business 
                                concerns; and
                          (ii) includes--
                                  (I) a private, nonprofit 
                                community development 
                                corporation;
                                  (II) a consortium of private, 
                                nonprofit organizations or 
                                nonprofit community development 
                                corporations; and
                                  (III) an agency of or 
                                nonprofit entity established by 
                                a Native American Tribal 
                                Government; and
                  (B) the term ``Program'' means the small 
                business intermediary lending pilot program 
                established under paragraph (2).
          (2) Establishment.--There is established a 3-year 
        small business intermediary lending pilot program, 
        under which the Administrator may make direct loans to 
        eligible intermediaries, for the purpose of making 
        loans to startup, newly established, and growing small 
        business concerns.
          (3) Purposes.--The purposes of the Program are--
                  (A) to assist small business concerns in 
                areas suffering from a lack of credit due to 
                poor economic conditions or changes in the 
                financial market; and
                  (B) to establish a loan program under which 
                the Administrator may provide loans to eligible 
                intermediaries to enable the eligible 
                intermediaries to provide loans to startup, 
                newly established, and growing small business 
                concerns for working capital, real estate, or 
                the acquisition of materials, supplies, or 
                equipment.
          (4) Loans to eligible intermediaries.--
                  (A) Application.--Each eligible intermediary 
                desiring a loan under this subsection shall 
                submit an application to the Administrator that 
                describes--
                          (i) the type of small business 
                        concerns to be assisted;
                          (ii) the size and range of loans to 
                        be made;
                          (iii) the interest rate and terms of 
                        loans to be made;
                          (iv) the geographic area to be served 
                        and the economic, poverty, and 
                        unemployment characteristics of the 
                        area;
                          (v) the status of small business 
                        concerns in the area to be served and 
                        an analysis of the availability of 
                        credit; and
                          (vi) the qualifications of the 
                        applicant to carry out this subsection.
                  (B) Loan limits.--No loan may be made to an 
                eligible intermediary under this subsection if 
                the total amount outstanding and committed to 
                the eligible intermediary by the Administrator 
                would, as a result of such loan, exceed 
                $1,000,000 during the participation of the 
                eligible intermediary in the Program.
                  (C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be 
                for a term of 20 years.
                  (D) Applicable interest rates.--Loans made by 
                the Administrator to an eligible intermediary 
                under the Program shall bear an annual interest 
                rate equal to 1.00 percent.
                  (E) Fees; collateral.--The Administrator may 
                not charge any fees or require collateral with 
                respect to any loan made to an eligible 
                intermediary under this subsection.
                  (F) Delayed payments.--The Administrator 
                shall not require the repayment of principal or 
                interest on a loan made to an eligible 
                intermediary under the Program during the 2-
                year period beginning on the date of the 
                initial disbursement of funds under that loan.
                  (G) Maximum participants and amounts.--During 
                each of fiscal years 2011, 2012, and 2013, the 
                Administrator may make loans under the 
                Program--
                          (i) to not more than 20 eligible 
                        intermediaries; and
                          (ii) in a total amount of not more 
                        than $20,000,000.
          (5) Loans to small business concerns.--
                  (A) In general.--The Administrator, through 
                an eligible intermediary, shall make loans to 
                startup, newly established, and growing small 
                business concerns for working capital, real 
                estate, and the acquisition of materials, 
                supplies, furniture, fixtures, and equipment.
                  (B) Maximum loan.--An eligible intermediary 
                may not make a loan under this subsection of 
                more than $200,000 to any 1 small business 
                concern.
                  (C) Applicable interest rates.--A loan made 
                by an eligible intermediary to a small business 
                concern under this subsection, may have a fixed 
                or a variable interest rate, and shall bear an 
                interest rate specified by the eligible 
                intermediary in the application of the eligible 
                intermediary for a loan under this subsection.
                  (D) Review restrictions.--The Administrator 
                may not review individual loans made by an 
                eligible intermediary to a small business 
                concern before approval of the loan by the 
                eligible intermediary.
          (6) Termination.--The authority of the Administrator 
        to make loans under the Program shall terminate 3 years 
        after the date of enactment of the Small Business Job 
        Creation and Access to Capital Act of 2010.
  (m) Microloan Program.--
          (1)(A) Purposes.--The purposes of the Microloan 
        Program are--
                  (i) to assist women, low-income, veteran 
                (within the meaning of such term under section 
                3(q)), and minority entrepreneurs and business 
                owners and other individuals possessing the 
                capability to operate successful business 
                concerns;
                  (ii) to assist small business concerns in 
                those areas suffering from a lack of credit due 
                to economic downturns;
                  (iii) to establish a microloan program to be 
                administered by the Small Business 
                Administration--
                          (I) to make loans to eligible 
                        intermediaries to enable such 
                        intermediaries to provide small-scale 
                        loans, particularly loans in amounts 
                        averaging not more than $10,000, to 
                        startup, newly established, or growing 
                        small business concerns for working 
                        capital or the acquisition of 
                        materials, supplies, or equipment;
                          (II) to make grants to eligible 
                        intermediaries that, together with non-
                        Federal matching funds, will enable 
                        such intermediaries to provide 
                        intensive marketing, management, and 
                        technical assistance to microloan 
                        borrowers;
                          (III) to make grants to eligible 
                        nonprofit entities that, together with 
                        non-Federal matching funds, will enable 
                        such entities to provide intensive 
                        marketing, management, and technical 
                        assistance to assist low-income 
                        entrepreneurs and other low-income 
                        individuals obtain private sector 
                        financing for their businesses, with or 
                        without loan guarantees; and
                          (IV) to report to the Committees on 
                        Small Business of the Senate and the 
                        House of Representatives on the 
                        effectiveness of the microloan program 
                        and the advisability and feasibility of 
                        implementing such a program nationwide; 
                        and
                  (iv) to establish a welfare-to-work microloan 
                initiative, which shall be administered by the 
                Administration, in order to test the 
                feasibility of supplementing the technical 
                assistance grants provided under clauses (ii) 
                and (iii) of subparagraph (B) to individuals 
                who are receiving assistance under the State 
                program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.), or 
                under any comparable State funded means tested 
                program of assistance for low-income 
                individuals, in order to adequately assist 
                those individuals in--
                          (I) establishing small businesses; 
                        and
                          (II) eliminating their dependence on 
                        that assistance.
          (B) Establishment.--There is established a microloan 
        program, under which the Administration may--
                  (i) make direct loans to eligible 
                intermediaries, as provided under paragraph 
                (3), for the purpose of making short-term, 
                fixed interest rate microloans to startup, 
                newly established, and growing small business 
                concerns under paragraph (6);
                  (ii) in conjunction with such loans and 
                subject to the requirements of paragraph (4), 
                make grants to such intermediaries for the 
                purpose of providing intensive marketing, 
                management, and technical assistance to small 
                business concerns that are borrowers under this 
                subsection; and
                  (iii) subject to the requirements of 
                paragraph (5), make grants to nonprofit 
                entities for the purpose of providing 
                marketing, management, and technical assistance 
                to low-income individuals seeking to start or 
                enlarge their own businesses, if such 
                assistance includes working with the grant 
                recipient to secure loans in amounts not to 
                exceed $50,000 from private sector lending 
                institutions, with or without a loan guarantee 
                from the nonprofit entity.
          (2) Eligibility for participation.--An intermediary 
        shall be eligible to receive loans and grants under 
        subparagraphs (B)(i) and (B)(ii) of paragraph (1) if 
        it--
                  (A) meets the definition in paragraph (10); 
                and
                  (B) has at least 1 year of experience making 
                microloans to startup, newly established, or 
                growing small business concerns and providing, 
                as an integral part of its microloan program, 
                intensive marketing, management, and technical 
                assistance to its borrowers.
          (3) Loans to intermediaries.--
                  (A) Intermediary applications.--(i) In 
                general.--As part of its application for a 
                loan, each intermediary shall submit a 
                description to the Administration of--
                          (I) the type of businesses to be 
                        assisted;
                          (II) the size and range of loans to 
                        be made;
                          (III) the geographic area to be 
                        served and its economic, proverty, and 
                        unemployment characteristics;
                          (IV) the status of small business 
                        concerns in the area to be served and 
                        an analysis of their credit and 
                        technical assistance needs;
                          (V) any marketing, management, and 
                        technical assistance to be provided in 
                        connection with a loan made under this 
                        subsection;
                          (VI) the local economic credit 
                        markets, including the costs associated 
                        with obtaining credit locally;
                          (VII) the qualifications of the 
                        applicant to carry out the purpose of 
                        this subsection; and
                          (VIII) any plan to involve other 
                        technical assistance providers (such as 
                        counselors from the Service Corps of 
                        Retired Executives or small business 
                        development centers) or private sector 
                        lenders in assisting selected business 
                        concerns.
                  (ii) Selection of intermediaries.--In 
                selecting intermediaries to participate in the 
                program established under this subsection, the 
                Administration shall give priority to those 
                applicants that provide loans in amounts 
                averaging not more than $10,000.
                  (B) Intermediary contribution.--As a 
                condition of any loan made to an intermediary 
                under subparagraph (B)(i) of paragraph (1), the 
                Administrator shall require the intermediary to 
                contribute not less than 15 percent of the loan 
                amount in cash from non-Federal sources.
                  (C) Loan limits.--Notwithstanding subsection 
                (a)(3), no loan shall be made under this 
                subsection if the total amount outstanding and 
                committed to one intermediary (excluding 
                outstanding grants) from the business loan and 
                investment fund established by this Act would, 
                as a result of such loan, exceed $750,000 in 
                the first year of such intermediary's 
                participation in the program, and $5,000,000 in 
                the remaining years of the intermediary's 
                participation in the program.
                  (D)(i) In general.--The Administrator shall, 
                by regulation, require each intermediary to 
                establish a loan loss reserve fund, and to 
                maintain such reserve fund until all 
                obligations owed to the Administration under 
                this subsection are repaid.
                  (ii) Level of loan loss reserve fund.--
                          (I) In general.--Subject to subclause 
                        (III), the Administrator shall require 
                        the loan loss reserve fund of an 
                        intermediary to be maintained at a 
                        level equal to 15 percent of the 
                        outstanding balance of the notes 
                        receivable owed to the intermediary.
                          (II) Review of loan loss reserve.--
                        After the initial 5 years of an 
                        intermediary's participation in the 
                        program authorized by this subsection, 
                        the Administrator shall, at the request 
                        of the intermediary, conduct a review 
                        of the annual loss rate of the 
                        intermediary. Any intermediary in 
                        operation under this subsection prior 
                        to October 1, 1994, that requests a 
                        reduction in its loan loss reserve 
                        shall be reviewed based on the most 
                        recent 5-year period preceding the 
                        request.
                          (III) Reduction of loan loss 
                        reserve.--Subject to the requirements 
                        of clause IV, the Administrator may 
                        reduce the annual loan loss reserve 
                        requirement of an intermediary to 
                        reflect the actual average loan loss 
                        rate for the intermediary during the 
                        preceding 5-year period, except that in 
                        no case shall the loan loss reserve be 
                        reduced to less than 10 percent of the 
                        outstanding balance of the notes 
                        receivable owed to the intermediary.
                          (IV) Requirements.--The Administrator 
                        may reduce the annual loan loss reserve 
                        requirement of an intermediary only if 
                        the intermediary demonstrates to the 
                        satisfaction of the Administrator 
                        that--
                                  (aa) the average annual loss 
                                rate for the intermediary 
                                during the preceding 5-year 
                                period is less than 15 percent; 
                                and
                                  (bb) that no other factors 
                                exist that may impair the 
                                ability of the intermediary to 
                                repay all obligations owed to 
                                the Administration under this 
                                subsection.
                  (E) Unavailability of comparable credit.--An 
                intermediary may make a loan under this 
                subsection of more than $20,000 to a small 
                business concern only if such small business 
                concern demonstrates that it is unable to 
                obtain credit elsewhere at comparable interest 
                rates and that it has good prospects for 
                success. In no case shall an intermediary make 
                a loan under this subsection of more than 
                $50,000, or have outstanding or committed to 
                any 1 borrower more than $50,000.
                  (F) Loan duration; interest rates.--
                          (i) Loan duration.--Loans made by the 
                        Administration under this subsection 
                        shall be for a term of 10 years.
                          (ii) Applicable interest rates.--
                        Except as provided in clause (iii), 
                        loans made by the Administration under 
                        this subsection to an intermediary 
                        shall bear an interest rate equal to 
                        1.25 percentage points below the rate 
                        determined by the Secretary of the 
                        Treasury for obligations of the United 
                        States with a period of maturity of 5 
                        years, adjusted to the nearest one-
                        eighth of 1 percent.
                          (iii) Rates applicable to certain 
                        small loans.--Loans made by the 
                        Administration to an intermediary that 
                        makes loans to small business concerns 
                        and entrepreneurs averaging not more 
                        than $7,500, shall bear an interest 
                        rate that is 2 percentage points below 
                        the rate determined by the Secretary of 
                        the Treasury for obligations of the 
                        United States with a period of maturity 
                        of 5 years, adjusted to the nearest 
                        one-eighth of 1 percent.
                          (iv) Rates applicable to multiple 
                        sites or offices.--The interest rate 
                        prescribed in clause (ii) or (iii) 
                        shall apply to each separate loan-
                        making site or office of 1 intermediary 
                        only if such site or office meets the 
                        requirements of that clause.
                          (v) Rate basis.--The applicable rate 
                        of interest under this paragraph 
                        shall--
                                  (I) be applied retroactively 
                                for the first year of an 
                                intermediary's participation in 
                                the program, based upon the 
                                actual lending practices of the 
                                intermediary as determined by 
                                the Administration prior to the 
                                end of such year; and
                                  (II) be based in the second 
                                and subsequent years of an 
                                intermediary's participation in 
                                the program, upon the actual 
                                lending practices of the 
                                intermediary during the term of 
                                the intermediary's 
                                participation in the program.
                          (vii) Covered intermediaries.--The 
                        interest rates prescribed in this 
                        subparagraph shall apply to all loans 
                        made to intermediaries under this 
                        subsection on or after October 28, 
                        1991.
                  (G) Delayed payments.--The Administration 
                shall not require repayment of interest or 
                principal of a loan made to an intermediary 
                under this subsection during the first year of 
                the loan.
                  (H) Fees; collateral.--Except as provided in 
                subparagraphs (B) and (D), the Administration 
                shall not charge any fees or require collateral 
                other than an assignment of the notes 
                receivable of the microloans with respect to 
                any loan made to an intermediary under this 
                subsection.
          (4) Marketing, management and technical assistance 
        grants to intermediaries.--Grants made in accordance 
        with subparagraph (B)(ii) of paragraph (1) shall be 
        subject to the following requirements:
                  (A) Grant amounts.--Except as otherwise 
                provided in subparagraph (C) and subject to 
                subparagraph (B), each intermediary that 
                receives a loan under subparagraph (B)(i) of 
                paragraph (1) shall be eligible to receive a 
                grant to provide marketing, management, and 
                technical assistance to small business concerns 
                that are borrowers under this subsection. 
                Except as provided in subparagraph (C), each 
                intermediary meeting the requirements of 
                subparagraph (B) may receive a grant of not 
                more than 25 percent of the total outstanding 
                balance of loans made to it under this 
                subsection.
                  (B) Contribution.--As a condition of a grant 
                made under subparagraph (A), the Administrator 
                shall require the intermediary to contribute an 
                amount equal to 25 percent of the amount of the 
                grant, obtained solely from non-Federal 
                sources. In addition to cash or other direct 
                funding, the contribution may include indirect 
                costs or in-kind contributions paid for under 
                non-Federal programs.
                  (C) Additional technical assistance grants 
                for making certain loans.--
                          (i) In general.--In addition to 
                        grants made under subparagraph (A), 
                        each intermediary shall be eligible to 
                        receive a grant equal to 5 percent of 
                        the total outstanding balance of loans 
                        made to the intermediary under this 
                        subsection if--
                                  (I) the intermediary provides 
                                not less than 25 percent of its 
                                loans to small business 
                                concerns located in or owned by 
                                one or more residents of an 
                                economically distressed area; 
                                or
                                  (II) the intermediary has a 
                                portfolio of loans made under 
                                this subsection that averages 
                                not more than $10,000 during 
                                the period of the 
                                intermediary's participation in 
                                the program.
                          (ii) Purposes.--A grant awarded under 
                        clause (i) may be used to provide 
                        marketing, management, and technical 
                        assistance to small business concerns 
                        that are borrowers under this 
                        subsection.
                          (iii) Contribution exception.--The 
                        contribution requirements in 
                        subparagraph (B) do not apply to grants 
                        made under this subparagraph.
                  (D) Eligibility for multiple sites or 
                offices.--The eligibility for a grant described 
                in subparagraph (A) or (C) shall be determined 
                separately for each loan-making site or office 
                of 1 intermediary.
                  (E) Assistance to certain small business 
                concerns.--
                          (i) In general.--Each intermediary 
                        may expend an amount not to exceed 25 
                        percent of the grant funds received 
                        under paragraph (1)(B)(ii) to provide 
                        information and technical assistance to 
                        small business concerns that are 
                        prospective borrowers under this 
                        subsection.
                          (ii) Technical assistance.--An 
                        intermediary may expend not more than 
                        25 percent of the funds received under 
                        paragraph (1)(B)(ii) to enter into 
                        third party contracts for the provision 
                        of technical assistance.
                  (F) Supplemental grant.--
                          (i) In general.--The Administration 
                        may accept any funds transferred to the 
                        Administration from other departments 
                        or agencies of the Federal Government 
                        to make grants in accordance with this 
                        subparagraph and section 202(b) of the 
                        Small Business Reauthorization Act of 
                        1997 to participating intermediaries 
                        and technical assistance providers 
                        under paragraph (5), for use in 
                        accordance with clause (iii) to provide 
                        additional technical assistance and 
                        related services to recipients of 
                        assistance under a State program 
                        described in paragraph (1)(A)(iv) at 
                        the time they initially apply for 
                        assistance under this subparagraph.
                          (ii) Eligible recipients; grant 
                        amounts.--In making grants under this 
                        subparagraph, the Administration may 
                        select, from among participating 
                        intermediaries and technical assistance 
                        providers described in clause (i), not 
                        more than 20 grantees in fiscal year 
                        1998, not more than 25 grantees in 
                        fiscal year 1999, and not more than 30 
                        grantees in fiscal year 2000, each of 
                        whom may receive a grant under this 
                        subparagraph in an amount not to exceed 
                        $200,000 per year.
                          (iii) Use of grant amounts.--Grants 
                        under this subparagraph--
                                  (I) are in addition to other 
                                grants provided under this 
                                subsection and shall not 
                                require the contribution of 
                                matching amounts as a condition 
                                of eligibility; and
                                  (II) may be used by a 
                                grantee--
                                          (aa) to pay or 
                                        reimburse a portion of 
                                        child care and 
                                        transportation costs of 
                                        recipients of 
                                        assistance described in 
                                        clause (i), to the 
                                        extent such costs are 
                                        not otherwise paid by 
                                        State block grants 
                                        under the Child Care 
                                        Development Block Grant 
                                        Act of 1990 (42 U.S.C. 
                                        9858 et seq.) or under 
                                        part A of title IV of 
                                        the Social Security Act 
                                        (42 U.S.C. 601 et 
                                        seq.); and
                                          (bb) for marketing, 
                                        management, and 
                                        technical assistance to 
                                        recipients of 
                                        assistance described in 
                                        clause (i).
                          (iv) Memorandum of understanding.--
                        Prior to accepting any transfer of 
                        funds under clause (i) from a 
                        department or agency of the Federal 
                        Government, the Administration shall 
                        enter into a Memorandum of 
                        Understanding with the department or 
                        agency, which shall--
                                  (I) specify the terms and 
                                conditions of the grants under 
                                this subparagraph; and
                                  (II) provide for appropriate 
                                monitoring of expenditures by 
                                each grantee under this 
                                subparagraph and each recipient 
                                of assistance described in 
                                clause (i) who receives 
                                assistance from a grantee under 
                                this subparagraph, in order to 
                                ensure compliance with this 
                                subparagraph by those grantees 
                                and recipients of assistance.
          (5) Private sector borrowing technical assistance 
        grants.--Grants made in accordance with subparagraph 
        (B)(iii) of paragraph (1) shall be subject to the 
        following requirements:
                  (A) Grant amounts.--Subject to the 
                requirements of subparagraph (B), the 
                Administration may make not more than 55 grants 
                annually, each in amounts not to exceed 
                $200,000 for the purposes specified in 
                subparagraph (B)(iii) of paragraph (1).
                  (B) Contribution.--As a condition of any 
                grant made under subparagraph (A), the 
                Administration shall require the grant 
                recipient to contribute an amount equal to 20 
                percent of the amount of the grant, obtained 
                solely from non-Federal sources. In addition to 
                cash or other direct funding, the contribution 
                may include indirect costs or in-kind 
                contributions paid for under non-Federal 
                programs.
          (6) Loans to small business concerns from eligible 
        intermediaries.--
                  (A) In general.--An eligible intermediary 
                shall make short-term, fixed rate loans to 
                startup, newly established, and growing small 
                business concerns from the funds made available 
                to it under subparagraph (B)(i) of paragraph 
                (1) for working capital and the acquisition of 
                materials, supplies, furniture, fixtures, and 
                equipment.
                  (B) Portfolio requirement.--To the extent 
                practicable, each intermediary that operates a 
                microloan program under this subsection shall 
                maintain a microloan portfolio with an average 
                loan size of not more than $15,000.
                  (C) Interest limit.--Notwithstanding any 
                provision of the laws of any State or the 
                constitution of any State pertaining to the 
                rate or amount of interest that may be charged, 
                taken, received, or reserved on a loan, the 
                maximum rate of interest to be charged on a 
                microloan funded under this subsection shall 
                not exceed the rate of interest applicable to a 
                loan made to an intermediary by the 
                Administration--
                          (i) in the case of a loan of more 
                        than $7,500 made by the intermediary to 
                        a small business concern or 
                        entrepreneur by more than 7.75 
                        percentage points; and
                          (ii) in the case of a loan of not 
                        more than $7,500 made by the 
                        intermediary to a small business 
                        concern or entrepreneur by more than 
                        8.5 percentage points.
                  (D) Review restriction.--The Administration 
                shall not review individual microloans made by 
                intermediaries prior to approval.
                  (E) Establishment of child care or 
                transportation businesses.--In addition to 
                other eligible small businesses concerns, 
                borrowers under any program under this 
                subsection may include individuals who will use 
                the loan proceeds to establish for-profit or 
                nonprofit child care establishments or 
                businesses providing for-profit transportation 
                services.
          (7) Program funding for microloans.--
                  (A) Number of participants.--Under the 
                program authorized by this subsection, the 
                Administration may fund, on a competitive 
                basis, not more than 300 intermediaries.
                  (B) Allocation.--
                          (i) Minimum allocation.--Subject to 
                        the availability of appropriations, of 
                        the total amount of new loan funds made 
                        available for award under this 
                        subsection in each fiscal year, the 
                        Administration shall make available for 
                        award in each State (including the 
                        District of Columbia, the Commonwealth 
                        of Puerto Rico, the United States 
                        Virgin Islands, Guam, and American 
                        Samoa) an amount equal to the sum of--
                                  (I) the lesser of--
                                          (aa) $800,000; or
                                          (bb) \1/55\ of the 
                                        total amount of new 
                                        loan funds made 
                                        available for award 
                                        under this subsection 
                                        for that fiscal year; 
                                        and
                                  (II) any additional amount, 
                                as determined by the 
                                Administration.
                          (ii) Redistribution.--If, at the 
                        beginning of the third quarter of a 
                        fiscal year, the Administration 
                        determines that any portion of the 
                        amount made available to carry out this 
                        subsection is unlikely to be made 
                        available under clause (i) during that 
                        fiscal year, the Administration may 
                        make that portion available for award 
                        in any one or more States (including 
                        the District of Columbia, the 
                        Commonwealth of Puerto Rico, the United 
                        States Virgin Islands, Guam, and 
                        American Samoa) without regard to 
                        clause (i).
          (8) Equitable distribution of intermediaries.--In 
        approving microloan program applicants and providing 
        funding to intermediaries under this subsection, the 
        Administration shall select and provide funding to such 
        intermediaries as will ensure appropriate availability 
        of loans for small businesses in all industries located 
        throughout each State, particularly those located in 
        urban and in rural areas.
          (9) Grants for management, marketing, technical 
        assistance, and related services.--
                  (A) In general.--The Administration may 
                procure technical assistance for intermediaries 
                participating in the Microloan Program to 
                ensure that such intermediaries have the 
                knowledge, skills, and understanding of 
                microlending practices necessary to operate 
                successful microloan programs.
                  (B) Assistance amount.--The Administration 
                shall transfer 7 percent of its annual 
                appropriation for loans and loan guarantees 
                under this subsection to the Administration's 
                Salaries and Expense Account for the specific 
                purpose of providing 1 or more technical 
                assistance grants to experienced microlending 
                organizations and national and regional 
                nonprofit organizations that have demonstrated 
                experience in providing training support for 
                microenterprise development and financing. to 
                achieve the purpose set forth in subparagraph 
                (A).
                  (C) Welfare-to-work microloan initiative.--Of 
                amounts made available to carry out the 
                welfare-to-work microloan initiative under 
                paragraph (1)(A)(iv) in any fiscal year, the 
                Administration may use not more than 5 percent 
                to provide technical assistance, either 
                directly or through contractors, to welfare-to-
                work microloan initiative grantees, to ensure 
                that, as grantees, they have the knowledge, 
                skills, and understanding of microlending and 
                welfare-to-work transition, and other related 
                issues, to operate a successful welfare-to-work 
                microloan initiative.
          (10) Report to congress.--On November 1, 1995, the 
        Administration shall submit to the Committees on Small 
        Business of the Senate and the House of Representatives 
        a report, including the Administration's evaluation of 
        the effectiveness of the first 3\1/2\ years of the 
        microloan program and the following:
                  (A) the numbers and locations of the 
                intermediaries funded to conduct microloan 
                programs;
                  (B) the amounts of each loan and each grant 
                to intermediaries;
                  (C) a description of the matching 
                contributions of each intermediary;
                  (D) the numbers and amounts of microloans 
                made by the intermediaries to small business 
                concern borrowers;
                  (E) the repayment history of each 
                intermediary;
                  (F) a description of the loan portfolio of 
                each intermediary including the extent to which 
                it provides microloans to small business 
                concerns in rural areas; and
                  (G) any recommendations for legislative 
                changes that would improve program operations.
          (11) Definitions.--For purposes of this subsection--
                  (A) the term ``intermediary'' means--
                          (i) a private, nonprofit entity;
                          (ii) a private, nonprofit community 
                        development corporation;
                          (iii) a consortium of private, 
                        nonprofit organizations or nonprofit 
                        community development corporations;
                          (iv) a quasi-governmental economic 
                        development entity (such as a planning 
                        and development district), other than a 
                        State, county, municipal government, or 
                        any agency thereof, if--
                                  (I) no application is 
                                received from an eligible 
                                nonprofit organization; or
                                  (II) the Administration 
                                determines that the needs of a 
                                region or geographic area are 
                                not adequately served by an 
                                existing, eligible nonprofit 
                                organization that has submitted 
                                an application; or
                          (v) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government,
                that seeks to borrow or has borrowed funds from 
                the Administration to make microloans to small 
                business concerns under this subsection;
                  (B) the term ``microloan'' means a short-
                term, fixed rate loan of not more than $50,000, 
                made by an intermediary to a startup, newly 
                established, or growing small business concern;
                  (C) the term ``rural area'' means any 
                political subdivision or unincorporated area--
                          (i) in a nonmetropolitan county (as 
                        defined by the Secretary of 
                        Agriculture) or its equivalent thereof; 
                        or
                          (ii) in a metropolitan county or its 
                        equivalent that has a resident 
                        population of less than 20,000 if the 
                        Small Business Administration has 
                        determined such political subdivision 
                        or area to be rural; and
                  (D) the term ``economically distressed 
                area'', as used in paragraph (4), means a 
                county or equivalent division of local 
                government of a State in which the small 
                business concern is located, in which, 
                according to the most recent data available 
                from the Bureau of the Census, Department of 
                Commerce, not less than 40 percent of residents 
                have an annual income that is at or below the 
                poverty level.
          (12) Deferred participation loan pilot.--In lieu of 
        making direct loans to intermediaries as authorized in 
        paragraph (1)(B), during fiscal years 1998 through 
        2000, the Administration may, on a pilot program basis, 
        participate on a deferred basis of not less than 90 
        percent and not more than 100 percent on loans made to 
        intermediaries by a for-profit or nonprofit entity or 
        by alliances of such entities, subject to the following 
        conditions:
                  (A) Number of loans.--In carrying out this 
                paragraph, the Administration shall not 
                participate in providing financing on a 
                deferred basis to more than 10 intermediaries 
                in urban areas or more than 10 intermediaries 
                in rural areas.
                  (B) Term of loans.--The term of each loan 
                shall be 10 years. During the first year of the 
                loan, the intermediary shall not be required to 
                repay any interest or principal. During the 
                second through fifth years of the loan, the 
                intermediary shall be required to pay interest 
                only. During the sixth through tenth years of 
                the loan, the intermediary shall be required to 
                make interest payments and fully amortize the 
                principal.
                  (C) Interest rate.--The interest rate on each 
                loan shall be the rate specified by paragraph 
                (3)(F) for direct loans.
          (13) Evaluation of welfare-to-work microloan 
        initiative.--On January 31, 1999, and annually 
        thereafter, the Administration shall submit to the 
        Committees on Small Business of the House of 
        Representatives and the Senate a report on any monies 
        distributed pursuant to paragraph (4)(F).
  (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
                          (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 
                the 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.

           *       *       *       *       *       *       *

  Sec. 21. (a)(1) The Administration is authorized to make 
grants (including contracts and cooperative agreements) to any 
State government or any agency thereof, any regional entity, 
any State-chartered development, credit or finance corporation, 
any women's business center operating pursuant to section 29, 
any public or private institution of higher education, 
including but not limited to any land-grant college or 
university, any college or school of business, engineering, 
commerce, or agriculture, community college or junior college, 
or to any entity formed by two or more of the above entities 
(herein referred to as ``applicants'') to assist in 
establishing small business development centers and to any such 
labor for: small business oriented employment or natural 
resources development programs; studies, research, and 
counseling concerning the managing, financing, and operation of 
small business enterprises, management and technical assistance 
regarding small business participation in international 
markets, export promotion and technology transfer; delivery or 
distribution of such services and information; providing access 
to business analysts who can refer small business concerns to 
available experts; and, to the extent practicable, providing 
assistance in furtherance of the Small Business Development 
Center Cyber Strategy developed under section 1841(a) of the 
National Defense Authorization Act for Fiscal Year 2017: 
Provided, That after December 31, 1990, the Administration 
shall not make a grant to any applicant other than an 
institution of higher education or a women's business center 
operating pursuant to section 29 as a Small Business 
Development Center unless the applicant was receiving a grant 
(including a contract or cooperative agreement) on such date. 
The Administration shall require any applicant for a small 
business development center grant with performance commencing 
on or after January 1, 1992 to have its own budget and to 
primarily utilize institutions of higher education and women's 
business centers operating pursuant to section 29 to provide 
services to the small business community. The term of such 
grants shall be made on a calendar year basis or to coincide 
with the Federal fiscal year.
          (2) Cooperation to provide international trade 
        services.--
                  (A) Information and services.--The small 
                business development centers shall work in 
                close cooperation with the Administration's 
                regional and local offices, the Department of 
                Commerce, appropriate Federal, State and local 
                agencies (including State trade agencies), and 
                the small business community to serve as an 
                active information dissemination and service 
                delivery mechanism for existing trade 
                promotion, trade finance, trade adjustment, 
                trade remedy and trade data collection programs 
                of particular utility for small businesses.
                  (B) Cooperation with state trade agencies and 
                export assistance centers.--A small business 
                development center that counsels a small 
                business concern on issues relating to 
                international trade shall--
                          (i) consult with State trade agencies 
                        and Export Assistance Centers to 
                        provide appropriate services to the 
                        small business concern; and
                          (ii) as necessary, refer the small 
                        business concern to a State trade 
                        agency or an Export Assistance Center 
                        for further counseling or assistance.
                  (C) Definition.--In this paragraph, the term 
                ``Export Assistance Center'' has the same 
                meaning as in section 22.
  (3) The Small Business Development Center Program shall be 
under the general management and oversight of the 
Administration for the delivery of programs and services to the 
small business community. Such programs and services shall be 
jointly developed, negotiated, and agreed upon, with full 
participation of both parties, pursuant to an executed 
cooperative agreement between the Small Business Development 
Center applicant and the Administration.
  (A) Small business development centers are authorized to form 
an association to pursue matters of common concern. If more 
than a majority of the small business development centers which 
are operating pursuant to agreements with the Administration 
are members of such an association, the Administration is 
authorized and directed to recognize the existence and 
activities of such an association and to consult with it and 
develop documents (i) announcing the annual scope of activities 
pursuant to this section, (ii) requesting proposals to deliver 
assistance as provided in this section and (iii) governing the 
general operations and administration of the Small Business 
Development Center Program, specifically including the 
development of regulations and a uniform negotiated cooperative 
agreement for use on an annual basis when entering into 
individual negotiated agreements with small business 
development centers.
  (B) Provisions governing audits, cost principles and 
administrative requirements for Federal grants, contracts and 
cooperative agreements which are included in uniform 
requirements of Office of Management and Budget (OMB) Circulars 
shall be incorporated by reference and shall not be set forth 
in summary or other form in regulations.
          (C) Whereas On an annual basis, the Small Business 
        Development Center shall review and coordinate public 
        and private partnerships and cosponsorships with the 
        Administration for the purpose of more efficiently 
        leveraging available resources on a National and a 
        State basis.
  (4) Small business development center program level.--
          (A) In general.--The Administration shall require as 
        a condition of any grant (or amendment or modification 
        thereof) made to an applicant under this section, that 
        a matching amount (excluding any fees collected from 
        recipients of such assistance) equal to the amount of 
        such grant be provided from sources other than the 
        Federal Government, to be comprised of not less than 50 
        percent cash and not more than 50 percent of indirect 
        costs and in-kind contributions.
          (B) Restriction.--The matching amount described in 
        subparagraph (A) shall not include any indirect costs 
        or in-kind contributions derived from any Federal 
        program.
          (C) Funding formula.--
                  (i) In general.--Subject to clause (iii), the 
                amount of a formula grant received by a State 
                under this subparagraph shall be equal to an 
                amount determined in accordance with the 
                following formula:
                          (I) The annual amount made available 
                        under section 20(a) for the Small 
                        Business Development Center Program, 
                        less any reductions made for expenses 
                        authorized by clause (v) of this 
                        subparagraph, shall be divided on a pro 
                        rata basis, based on the percentage of 
                        the population of each State, as 
                        compared to the population of the 
                        United States.
                          (II) If the pro rata amount 
                        calculated under subclause (I) for any 
                        State is less than the minimum funding 
                        level under clause (iii), the 
                        Administration shall determine the 
                        aggregate amount necessary to achieve 
                        that minimum funding level for each 
                        such State.
                          (III) The aggregate amount calculated 
                        under subclause (II) shall be deducted 
                        from the amount calculated under 
                        subclause (I) for States eligible to 
                        receive more than the minimum funding 
                        level. The deductions shall be made on 
                        a pro rata basis, based on the 
                        population of each such State, as 
                        compared to the total population of all 
                        such States.
                          (IV) The aggregate amount deducted 
                        under subclause (III) shall be added to 
                        the grants of those States that are not 
                        eligible to receive more than the 
                        minimum funding level in order to 
                        achieve the minimum funding level for 
                        each such State, except that the 
                        eligible amount of a grant to any State 
                        shall not be reduced to an amount below 
                        the minimum funding level.
                  (ii) Grant determination.--The amount of a 
                grant that a State is eligible to apply for 
                under this subparagraph shall be the amount 
                determined under clause (i), subject to any 
                modifications required under clause (iii), and 
                shall be based on the amount available for the 
                fiscal year in which performance of the grant 
                commences, but not including amounts 
                distributed in accordance with clause (iv). The 
                amount of a grant received by a State under any 
                provision of this subparagraph shall not exceed 
                the amount of matching funds from sources other 
                than the Federal Government, as required under 
                subparagraph (A).
                  (iii) Minimum funding level.--The amount of 
                the minimum funding level for each State shall 
                be determined for each fiscal year based on the 
                amount made available for that fiscal year to 
                carry out this section, as follows:
                          (I) If the amount made available is 
                        not less than $81,500,000 and not more 
                        than $90,000,000, the minimum funding 
                        level shall be $500,000.
                          (II) If the amount made available is 
                        less than $81,500,000, the minimum 
                        funding level shall be the remainder of 
                        $500,000 minus a percentage of $500,000 
                        equal to the percentage amount by which 
                        the amount made available is less than 
                        $81,500,000.
                          (III) If the amount made available is 
                        more than $90,000,000, the minimum 
                        funding level shall be the sum of 
                        $500,000 plus a percentage of $500,000 
                        equal to the percentage amount by which 
                        the amount made available exceeds 
                        $90,000,000.
                  (iv) Distributions.--Subject to clause (iii), 
                if any State does not apply for, or use, its 
                full funding eligibility for a fiscal year, the 
                Administration shall distribute the remaining 
                funds as follows:
                          (I) If the grant to any State is less 
                        than the amount received by that State 
                        in fiscal year 2000, the Administration 
                        shall distribute such remaining funds, 
                        on a pro rata basis, based on the 
                        percentage of shortage of each such 
                        State, as compared to the total amount 
                        of such remaining funds available, to 
                        the extent necessary in order to 
                        increase the amount of the grant to the 
                        amount received by that State in fiscal 
                        year 2000, or until such funds are 
                        exhausted, whichever first occurs.
                          (II) If any funds remain after the 
                        application of subclause (I), the 
                        remaining amount may be distributed as 
                        supplemental grants to any State, as 
                        the Administration determines, in its 
                        discretion, to be appropriate, after 
                        consultation with the association 
                        referred to in subsection (a)(3)(A).
                  (v) Use of amounts.--
                          (I) In general.--Of the amounts made 
                        available in any fiscal year to carry 
                        out this section--
                                  (aa) not more than $500,000 
                                may be used by the 
                                Administration to pay expenses 
                                enumerated in subparagraphs (B) 
                                through (D) of section 
                                20(a)(1); and
                                  (bb) not more than $500,000 
                                may be used by the 
                                Administration to pay the 
                                examination expenses enumerated 
                                in section 20(a)(1)(E).
                          (II) Limitation.--No funds described 
                        in subclause (I) may be used for 
                        examination expenses under section 
                        20(a)(1)(E) if the usage would reduce 
                        the amount of grants made available 
                        under clause (i)(I) of this 
                        subparagraph to less than $85,000,000 
                        (after excluding any amounts provided 
                        in appropriations Acts, or accompanying 
                        report language, for specific 
                        institutions or for purposes other than 
                        the general small business development 
                        center program) or would further reduce 
                        the amount of such grants below such 
                        amount.
                  (vi) Exclusions.--Grants provided to a State 
                by the Administration or another Federal agency 
                to carry out subsection (a)(6) or (c)(3)(G), or 
                for supplemental grants set forth in clause 
                (iv)(II) of this subparagraph, shall not be 
                included in the calculation of maximum funding 
                for a State under clause (ii) of this 
                subparagraph.
                  (vii) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                this subparagraph--
                          (I) $130,000,000 for fiscal year 
                        2005; and
                          (II) $135,000,000 for fiscal year 
                        2006.
                  (viii) Limitation.--From the funds 
                appropriated pursuant to clause (vii), the 
                Administration shall reserve not less than 
                $1,000,000 in each fiscal year to develop 
                portable assistance for startup and 
                sustainability non-matching grant programs to 
                be conducted by eligible small business 
                development centers in communities that are 
                economically challenged as a result of a 
                business or government facility down sizing or 
                closing, which has resulted in the loss of jobs 
                or small business instability. A non-matching 
                grant under this clause shall not exceed 
                $100,000, and shall be used for small business 
                development center personnel expenses and 
                related small business programs and services.
                  (ix) State defined.--In this subparagraph, 
                the term ``State'' means each of the several 
                States, the District of Columbia, the 
                Commonwealth of Puerto Rico, the Virgin 
                Islands, Guam, and American Samoa.
  (5) Federal contracts with small business development 
centers.--
          (A) In general.--Subject to the conditions set forth 
        in subparagraph (B), a small business development 
        center may enter into a contract with a Federal 
        department or agency to provide specific assistance to 
        small business concerns.
          (B) Contract prerequisites.--Before bidding on a 
        contract described in subparagraph (A), a small 
        business development center shall receive approval from 
        the Associate Administrator of the small business 
        development center program of the subject and general 
        scope of the contract. Each approval under subparagraph 
        (A) shall be based upon a determination that the 
        contract will provide assistance to small business 
        concerns and that performance of the contract will not 
        hinder the small business development center in 
        carrying out the terms of the grant received by the 
        small business development center from the 
        Administration.
          (C) Exemption from matching requirement.--A contract 
        under this paragraph shall not be subject to the 
        matching funds or eligibility requirements of paragraph 
        (4).
          (D) Additional provision.--Notwithstanding any other 
        provision of law, a contract for assistance under this 
        paragraph shall not be applied to any Federal 
        department or agency's small business, woman-owned 
        business, or socially and economically disadvantaged 
        business contracting goal under section 15(g).
          (6) Any applicant which is funded by the 
        Administration as a Small Business Development Center 
        may apply for an additional grant to be used solely to 
        assist--
                  (A) with the development and enhancement of 
                exports by small business concerns;
                  (B) in technology transfer; and
                  (C) with outreach, development, and 
                enhancement of minority-owned small business 
                startups or expansions, HUBZone small business 
                concerns, veteran-owned small business startups 
                or expansions, and women-owned small business 
                startups or expansions, in communities impacted 
                by base closings or military or corporate 
                downsizing, or in rural or underserved 
                communities;
        as provided under subparagraphs (B) through (G) of 
        subsection (c)(3). Applicants for such additional 
        grants shall comply with all of the provisions of this 
        section, including providing matching funds, except 
        that funding under this paragraph shall be effective 
        for any fiscal year to the extent provided in advance 
        in appropriations Acts and shall be in addition to the 
        dollar program limitations specified in paragraphs (4) 
        and (5). No recipient of funds under this paragraph 
        shall receive a grant which would exceed its pro rata 
        share of a $15,000,000 program based upon the 
        populations to be served by the Small Business 
        Development Center as compared to the total population 
        of the United States. The minimum amount of eligibility 
        for any State shall be $100,000.
          (7) Privacy requirements.--
                  (A) In general.--A small business development 
                center, consortium of small business 
                development centers, or contractor or agent of 
                a small business development center may not 
                disclose the name, address, or telephone number 
                of any individual or small business concern 
                receiving assistance under this section without 
                the consent of such individual or small 
                business concern, unless--
                          (i) the Administrator is ordered to 
                        make such a disclosure by a court in 
                        any civil or criminal enforcement 
                        action initiated by a Federal or State 
                        agency; or
                          (ii) the Administrator considers such 
                        a disclosure to be necessary for the 
                        purpose of conducting a financial audit 
                        of a small business development center, 
                        but a disclosure under this clause 
                        shall be limited to the information 
                        necessary for such audit.
                  (B) Administrator use of information.--This 
                section shall not--
                          (i) restrict Administrator access to 
                        program activity data; or
                          (ii) prevent the Administrator from 
                        using client information to conduct 
                        client surveys.
                  (C) Regulations.--
                          (i) In general.--The Administrator 
                        shall issue regulations to establish 
                        standards--
                                  (I) for disclosures with 
                                respect to financial audits 
                                under subparagraph (A)(ii); and
                                  (II) for client surveys under 
                                subparagraph (B)(ii), including 
                                standards for oversight of such 
                                surveys and for dissemination 
                                and use of client information.
                          (ii) Maximum privacy protection.--
                        Regulations under this subparagraph, 
                        shall, to the extent practicable, 
                        provide for the maximum amount of 
                        privacy protection.
                          (iii) Inspector general.--Until the 
                        effective date of regulations under 
                        this subparagraph, any client survey 
                        and the use of such information shall 
                        be approved by the Inspector General 
                        who shall include such approval in his 
                        semi-annual report.
          (8) Cybersecurity assistance.--
                  (A) In general.--The Department of Homeland 
                Security, and any other Federal department or 
                agency in coordination with the Department of 
                Homeland Security, may leverage small business 
                development centers to provide assistance to 
                small business concerns by disseminating 
                information relating to cybersecurity risks and 
                other homeland security matters to help small 
                business concerns in developing or enhancing 
                cybersecurity infrastructure, awareness of 
                cyber threat indicators, and cyber training 
                programs for employees.
                  (B) Definitions.--In this paragraph, the 
                terms ``cybersecurity risk'' and ``cyber threat 
                indicator'' have the meanings given such terms, 
                respectively, under section 227(a) of the 
                Homeland Security Act of 2002 (6 U.S.C. 
                148(a)).
  (b)(1) Financial assistance shall not be made available to 
any applicant if approving such assistance would be 
inconsistent with a plan for the area involved which has been 
adopted by an agency recognized by the State government as 
authorized to do so and approved by the Administration in 
accordance with the standards and requirements established 
pursuant to this section.
  (2) An applicant may apply to participate in the program by 
submitting to the Administration for approval a plan naming 
those authorized in subsection (a) to participate in the 
program, the geographic area to be served, the services that it 
would provide, the method for delivering services, a budget, 
and any other information and assurances the Administration may 
require to insure that the applicant will carry out the 
activities eligible for assistance. The Administration is 
authorized to approve, conditionally approve or reject a plan 
or combination of plans submitted. In all cases, the 
Administration shall review plans for conformity with the plan 
submitted pursuant to paragraph (1) of this subsection, and 
with a view toward providing small business with the most 
comprehensive and coordinated assistance in the State or part 
thereof to be served.
          (3) Assistance to out-of-state small business 
        concerns.--
                  (A) In general.--At the discretion of the 
                Administration, the Administration is 
                authorized to permit a small business 
                development center to provide advice, 
                information and assistance, as described in 
                subsection (c), to small businesses located 
                outside the State, but only to the extent such 
                businesses are located within close 
                geographical proximity to the small business 
                development center, as determined by the 
                Administration.
                  (B) Disaster recovery assistance.--
                          (i) In general.--At the discretion of 
                        the Administrator, the Administrator 
                        may authorize a small business 
                        development center to provide advice, 
                        information, and assistance, as 
                        described in subsection (c), to a small 
                        business concern located outside of the 
                        State, without regard to geographic 
                        proximity to the small business 
                        development center, if the small 
                        business concern is located in an area 
                        for which the President has declared a 
                        major disaster.
                          (ii) Term.--
                                  (I) In general.--A small 
                                business development center may 
                                provide advice, information, 
                                and assistance to a small 
                                business concern under clause 
                                (i) for a period of not more 
                                than 2 years after the date on 
                                which the President declared a 
                                major disaster for the area in 
                                which the small business 
                                concern is located.
                                  (II) Extension.--The 
                                Administrator may, at the 
                                discretion of the 
                                Administrator, extend the 
                                period described in subclause 
                                (I).
                          (iii) Continuity of services.--A 
                        small business development center that 
                        provides counselors to an area 
                        described in clause (i) shall, to the 
                        maximum extent practicable, ensure 
                        continuity of services in any State in 
                        which the small business development 
                        center otherwise provides services.
                          (iv) Access to disaster recovery 
                        facilities.--For purposes of this 
                        subparagraph, the Administrator shall, 
                        to the maximum extent practicable, 
                        permit the personnel of a small 
                        business development center to use any 
                        site or facility designated by the 
                        Administrator for use to provide 
                        disaster recovery assistance.
  (c)(1) Applicants receiving grants under this section shall 
assist small businesses in solving problems concerning 
operations, manufacturing, engineering, technology exchange and 
development, personnel administration, marketing, sales, 
merchandising, finance, accounting, business strategy 
development, and other disciplines required for small business 
growth and expansion, innovation, increased productivity, and 
management improvement, and for decreasing industry economic 
concentrations. Applicants receiving grants under this section 
may also assist small businesses by providing, where 
appropriate, education on the requirements applicable to small 
businesses under the regulations issued under section 38 of the 
Arms Export Control Act (22 U.S.C. 2778) and on compliance with 
those requirements.
  (2) A small business development center shall provide 
services as close as possible to small businesses by providing 
extension services and utilizing satellite locations when 
necessary. The facilities and staff of each Small Business 
Development Center shall be located in such places as to 
provide maximum accessibility and benefits to the small 
businesses which the center is intended to serve. To the extent 
possible, it also shall make full use of other Federal and 
State government programs that are concerned with aiding small 
business. A small business development center shall have--
          (A) a full-time staff, including a full-time director 
        who shall have the authority to make expenditures under 
        the center's budget and who shall manage the program 
        activities;
          (B) access to business analysts to counsel, assist, 
        and inform small business clients;
          (C) access to technology transfer agent to provide 
        state or art technology to small businesses through 
        coupling with national and regional technology data 
        sources;
          (D) access to information specialists to assist in 
        providing information searches and referrals to small 
        business;
          (E) access to part-time professional specialists to 
        conduct research or to provide counseling assistance 
        whenever the need arises;
          (F) access to laboratory and adaptive engineering 
        facilities; and
          (G) access to cybersecurity specialists to counsel, 
        assist, and inform small business concern clients, in 
        furtherance of the Small Business Development Center 
        Cyber Strategy developed under section 1841(a) of the 
        National Defense Authorization Act for Fiscal Year 
        2017.
  (3) Services provided by a small business development center 
shall include, but shall not be limited to--
          (A) furnishing one-to-one individual counseling to 
        small businesses, including--
                  (i) working with individuals to increase 
                awareness of basic credit practices and credit 
                requirements;
                  (ii) working with individuals to develop 
                business plans, financial packages, credit 
                applications, and contract proposals;
                  (iii) working with the Administration to 
                develop and provide informational tools for use 
                in working with individuals on pre-business 
                startup planning, existing business expansion, 
                and export planning; and
                  (iv) working with individuals referred by the 
                local offices of the Administration and 
                Administration participating lenders;
          (B) assisting in technology transfer, research and 
        development, including applied research, and coupling 
        from existing sources to small businesses, including--
                  (i) working to increase the access of small 
                businesses to the capabilities of automated 
                flexible manufacturing systems;
                  (ii) working through existing networks and 
                developing new networks for technology transfer 
                that encourage partnership between the small 
                business and academic communities to help 
                commercialize university-based research and 
                development and introduce university-based 
                engineers and scientists to their counterparts 
                in small technology-based firms; and
                  (iii) exploring the viability of developing 
                shared production facilities, under appropriate 
                circumstances;
          (C) in cooperation with the Department of Commerce 
        and other relevant Federal agencies, actively assisting 
        small businesses in exporting by identifying and 
        developing potential export markets, facilitating 
        export transactions, developing linkages between United 
        States small business firms and prescreened foreign 
        buyers, assisting small businesses to participate in 
        international trade shows, assisting small businesses 
        in obtaining export financing, and facilitating the 
        development or reorientation of marketing and 
        production strategies; where appropriate, the Small 
        Business Development Center and the Administration may 
        work in cooperation with the State to establish a State 
        international trade center for these purposes;
          (D) developing a program in conjunction with the 
        Export-Import Bank and local and regional 
        Administration offices that will enable Small Business 
        Development Centers to serve as an information network 
        and to assist small business applicants for Export-
        Import Bank financing programs, and otherwise identify 
        and help to make available export financing programs to 
        small businesses;
          (E) working closely with the small business 
        community, small business consultants, State agencies, 
        universities and other appropriate groups to make 
        translation services more readily available to small 
        business firms doing business, or attempting to develop 
        business, in foreign markets;
          (F) in providing assistance under this subsection, 
        applicants shall cooperate with the Department of 
        Commerce and other relevant Federal agencies to 
        increase access to available export market information 
        systems, including the CIMS system;
          (G) assisting small businesses to develop and 
        implement strategic business plans to timely and 
        effectively respond to the planned closure (or 
        reduction) of a Department of Defense facility within 
        the community, or actual or projected reductions in 
        such firms' business base due to the actual or 
        projected termination (or reduction) of a Department of 
        Defense program or a contract in support of such 
        program--
                  (i) by developing broad economic assessments 
                of the adverse impacts of--
                          (I) the closure (or reduction) of the 
                        Department of Defense facility on the 
                        small business concerns providing goods 
                        or services to such facility or to the 
                        military and civilian personnel 
                        currently stationed or working at such 
                        facility; and
                          (II) the termination (or reduction) 
                        of a Department of Defense program (or 
                        contracts under such program) on the 
                        small business concerns participating 
                        in such program as a prime contractor, 
                        subcontractor or supplier at any tier;
                  (ii) by developing, in conjunction with 
                appropriate Federal, State, and local 
                governmental entities and other private sector 
                organizations, the parameters of a transition 
                adjustment program adaptable to the needs of 
                individual small business concerns;
                  (iii) by conducting appropriate programs to 
                inform the affected small business community 
                regarding the anticipated adverse impacts 
                identified under clause (i) and the economic 
                adjustment assistance available to such firms; 
                and
                  (iv) by assisting small business concerns to 
                develop and implement an individualized 
                transition business plan.
          (H) maintaining current information concerning 
        Federal, State, and local regulations that affect small 
        businesses and counsel small businesses on methods of 
        compliance. Counseling and technology development shall 
        be provided when necessary to help small businesses 
        find solutions for complying with environmental, 
        energy, health, safety, and other Federal, State, and 
        local regulations;
          (I) coordinating and conducting research into 
        technical and general small business problems for which 
        there are no ready solutions;
          (J) providing and maintaining a comprehensive library 
        that contains current information and statistical data 
        needed by small businesses;
          (K) maintaining a working relationship and open 
        communications with the financial and investment 
        communities, legal associations, local and regional 
        private consultants, and local and regional small 
        business groups and associations in order to help 
        address the various needs of the small business 
        community;
          (L) conducting in-depth surveys for local small 
        business groups in order to develop general information 
        regarding the local economy and general small 
        businesses strengths and weaknesses in the locality;
          (M) in cooperation with the Department of Commerce, 
        the Administration and other relevant Federal agencies, 
        actively assisting rural small businesses in exporting 
        by identifying and developing potential export markets 
        for rural small businesses, facilitating export 
        transactions for rural small businesses, developing 
        linkages between United States' rural small businesses 
        and prescreened foreign buyers, assisting rural small 
        businesses to participate in international trade shows, 
        assisting rural small businesses in obtaining export 
        financing and developing marketing and production 
        strategies;
          (N) assisting rural small businesses--
                  (i) in developing marketing and production 
                strategies that will enable them to better 
                compete in the domestic market--
                  (ii) by providing technical assistance needed 
                by rural small businesses;
                  (iii) by making available managerial 
                assistance to rural small business concerns; 
                and
                  (iv) by providing information and assistance 
                in obtaining financing for business startups 
                and expansion;
          (O) in conjunction with the United States Travel and 
        Tourism Administration, assist rural small business in 
        developing the tourism potential of rural communities 
        by--
                  (i) identifying the cultural, historic, 
                recreational, and scenic resources of such 
                communities;
                  (ii) providing assistance to small businesses 
                in developing tourism marketing and promotion 
                plans relating to tourism in rural areas; and
                  (iii) assisting small business concerns to 
                obtain capital for starting or expanding 
                businesses primarily serving tourists;
          (P) maintaining lists of local and regional private 
        consultants to whom small business can be referred;
          (Q) providing information to small business concerns 
        regarding compliance with regulatory requirements;
          (R) developing informational publications, 
        establishing resource centers of reference materials, 
        and distributing compliance guides published under 
        section 312(a) of the Small Business Regulatory 
        Enforcement Fairness Act of 1996;
          (S) providing small business owners with access to a 
        wide variety of export-related information by 
        establishing on-line computer linkages between small 
        business development centers and an international trade 
        data information network with ties to the Export 
        Assistance Center program; [and]
          (T) providing information and assistance to small 
        business concerns with respect to establishing drug-
        free workplace programs on or before October 1, 
        2006[.]; and
          (U) encouraging and assisting the provision of 
        succession planning to small business concerns with a 
        focus on transitioning to cooperatives, as defined in 
        section 7(a)(35), and qualified employee trusts 
        (collectively referred to in this subparagraph as 
        ``employee-owned business concerns''), including by--
                  (i) providing training to individuals to 
                promote the successful management, governance, 
                or operation of a business purchased by those 
                individuals in the formation of an employee-
                owned business concern;
                  (ii) assisting employee-owned business 
                concerns that meet applicable size standards 
                established under section 3(a) with education 
                and technical assistance with respect to 
                financing and contracting programs administered 
                by the Administration;
                  (iii) coordinating with lenders on conducting 
                outreach on financing through programs 
                administered by the Administration that may be 
                used to support the transition of ownership to 
                employees;
                  (iv) supporting small business concerns in 
                exploring or assessing the possibility of 
                transitioning to an employee-owned business 
                concern; and
                  (v) coordinating with the cooperative 
                development centers of the Department of 
                Agriculture, the land grant extension network, 
                the Manufacturing Extension Partnership, 
                community development financial institutions, 
                employee ownership associations and service 
                providers, and local, regional and national 
                cooperative associations.
  (4) A small business development center shall continue to 
upgrade and modify its services, as needed, in order to meet 
the changing and evolving needs of the small business 
community.
  (5) In addition to the methods prescribed in section 
21(c)(2), a small business development center shall utilize and 
compensate as one of its resources qualified small business 
vendors, including but not limited to, private management 
consultants, private consulting engineers and private testing 
laboratories, to provide services as described in this 
subsection to small businesses on behalf of such small business 
development center.
  (6) In any State (A) in which the Administration has not made 
a grant pursuant to paragraph (1) of subsection (a), or (B) in 
which no application for a grant has been made by a Small 
Business Development Center pursuant to paragraph (6) of such 
subsection within 60 days after the effective date of any grant 
under subsection (a)(1) to such center or the date the 
Administration notifies the grantee funded under subsection 
(a)(1) that funds are available for grant applications pursuant 
to subsection (a)(6), whichever date occurs last, the 
Administration may make grants to a non-profit entity in that 
State to carry out the activities specified in paragraph (6) of 
subsection (a). Any such applicants shall comply with the 
matching funds requirement of paragraph (4) of subsection (a). 
Such grants shall be effective for any fiscal year only to the 
extent provided in advance in appropriations Acts, and each 
State shall be limited to the pro rata share provisions of 
paragraph (6) of subsection (a).
          (7) In performing the services identified in 
        paragraph (3), the Small Business Development Centers 
        shall work in close cooperation with the 
        Administration's regional and local offices, the local 
        small business community, and appropriate State and 
        local agencies.
          (8) The Associate Administrator for Small Business 
        Development Centers, in consultation with the Small 
        Business Development Centers, shall develop and 
        implement an information sharing system. Subject to 
        amounts approved in advance in appropriations Acts, the 
        Administration may make grants or enter cooperative 
        agreements with one or more centers to carry out the 
        provisions of this paragraph. Said grants or 
        cooperative agreements shall be awarded for periods of 
        no more than five years duration. The matching funds 
        provisions of subsection (a) shall not be applicable to 
        grants or cooperative agreements under this paragraph. 
        The system shall--
                  (A) allow Small Business Development Centers 
                participating in the program to exchange 
                information about their programs; and
                  (B) provide information central to technology 
                transfer.
  (d) Where appropriate, the Small Business Development Centers 
shall work in conjunction with the relevant State agency and 
the Department of Commerce to develop a comprehensive plan for 
enhancing the export potential of small businesses located 
within the State. This plan may involve the cofunding and 
staffing of a State Office of International Trade within the 
State Small Business Development Center, using joint State and 
Federal funding, and any other appropriate measures directed at 
improving the export performance of small businesses within the 
State.
  (e) Laboratories operated and funded by the Federal 
Government are authorized and directed to cooperate with the 
Administration in developing and establishing programs to 
support small business development centers by making facilities 
and equipment available; providing experiment station 
capabilities in adaptive engineering; providing library and 
technical information processing capabilities; and providing 
professional staff for consulting. The Administration is 
authorized to reimburse the laboratories for such services.
  (f) The National Science Foundation is authorized and 
directed to cooperate with the Administration and with the 
Small Business Development Centers in developing and 
establishing programs to support the centers.
  (g) National Aeronautics and Space Administration and 
Regional Technology Transfer Centers.--The National Aeronautics 
and Space Administration and regional technology transfer 
centers supported by the National Aeronautics and Space 
Administration are authorized and directed to cooperate with 
small business development centers participating in the 
program.
  (h) Associate Administrator for Small Business Development 
Centers.--
          (1) Appointment and compensation.--The Administrator 
        shall appoint an Associate Administrator for Small 
        Business Development Centers who shall report to an 
        official who is not more than one level below the 
        Office of the Administrator and who shall serve without 
        regard to the provisions of title 5, governing 
        appointments in the competitive service, and without 
        regard to chapter 51, and subchapter III of chapter 53 
        of such title relating to classification and General 
        Schedule pay rates, but at a rate not less than the 
        rate of GS-17 of the General Schedule.
          (2) Duties.--
                  (A) In general.--The sole responsibility of 
                the Associate Administrator for Small Business 
                Development Centers shall be to administer the 
                small business development center program. 
                Duties of the position shall include 
                recommending the annual program budget, 
                reviewing the annual budgets submitted by each 
                applicant, establishing appropriate funding 
                levels therefore, selecting applicants to 
                participate in this program, implementing the 
                provisions of this section, maintaining a 
                clearinghouse to provide for the dissemination 
                and exchange of information between small 
                business development centers and conducting 
                audits of recipients of grants under this 
                section.
                  (B) Consultation requirements.--In carrying 
                out the duties described in this subsection, 
                the Associate Administrator shall confer with 
                and seek the advice of the Board established by 
                subsection (i) and Administration officials in 
                areas served by the small business development 
                centers; however, the Associate Administrator 
                shall be responsible for the management and 
                administration of the program and shall not be 
                subject to the approval or concurrence of such 
                Administration officials.
  (i)(1) There is established a National Small Business 
Development Center Advisory Board (herein referred to as 
``Board'') which shall consist of nine members appointed from 
civilian life by the Administrator and who shall be persons of 
outstanding qualifications known to be familiar and sympathetic 
with small business needs and problems. No more than three 
members shall be from universities or their affiliates and six 
shall be from small businesses or associations representing 
small businesses. At the time of the appointment of the Board, 
the Administrator shall designate one-third of the members and 
at least one from each category whose term shall end in two 
years from the date of appointment, a second third whose term 
shall end in three years from the date of appointment, and the 
final third whose term shall end in four years from the date of 
appointment. Succeeding Boards shall have three-year terms, 
with one-third of the Board changing each year.
  (2) The Board shall elect a Chairman and advise, counsel, and 
confer with the Associate Administrator for Small Business 
Development Centers in carrying out the duties described in 
this section. The Board shall meet at least semiannually and at 
the call of the Chairman of the Board. Each member of the Board 
shall be entitled to be compensated at the rate not in excess 
of the per diem equivalent of the highest rate of pay for 
individuals occupying the position under GS-18 of the General 
Schedule for each day engaged in activities of the Board and 
shall be entitled to be reimbursed for expenses as a member of 
the Board.
  (j)(1) Each small business development center shall establish 
an advisory board.
  (2) Each small business development center advisory board 
shall elect a chairman and advise, counsel, and confer with the 
director of the small business development center on all policy 
matters pertaining to the operation of the small business 
development center, including who may be eligible to receive 
assistance from, and how local and regional private consultants 
may participate with the small business development center.
  (k) Program Examination and Accreditation.--
          (1) Examination.--Not later than 180 days after the 
        date of enactment of this subsection, the 
        Administration shall develop and implement a biennial 
        programmatic and financial examination of each small 
        business development center established pursuant to 
        this section.
          (2) Accreditation.--The Administration may provide 
        financial support, by contract or otherwise, to the 
        association authorized by subsection (a)(3)(A) for the 
        purpose of developing a small business development 
        center accreditation program.
          (3) Extension or renewal of cooperative agreements.--
                  (A) In general.--In extending or renewing a 
                cooperative agreement of a small business 
                development center, the Administration shall 
                consider the results of the examination and 
                accreditation program conducted pursuant to 
                paragraphs (1) and (2).
                  (B) Accreditation requirement.--After 
                September 30, 2000, the Administration may not 
                renew or extend any cooperative agreement with 
                a small business development center unless the 
                center has been approved under the 
                accreditation program conducted pursuant to 
                this subsection, except that the Associate 
                Administrator for Small Business Development 
                Centers may waive such accreditation 
                requirement, in the discretion of the Associate 
                Administrator, upon a showing that the center 
                is making a good faith effort to obtain 
                accreditation.
  (l) Contract Authority.--The authority to enter into 
contracts shall be in effect for each fiscal year only to the 
extent and in the amounts as are provided in advance in 
appropriations Acts. After the administration has entered a 
contract, either as a grant or a cooperative agreement, with 
any applicant under this section, it shall not suspend, 
terminate, or fail to renew or extend any such contract unless 
the Administration provides the applicant with written 
notification setting forth the reasons therefore and affording 
the applicant an opportunity for a hearing, appeal, or other 
administrative proceeding under the provisions of chapter 5 of 
title 5, United States Code. If any contract or cooperative 
agreement under this section with an entity that is covered by 
this section is not renewed or extended, any award of a 
successor contract or cooperative agreement under this section 
to another entity shall be made on a competitive basis.
  (m) Prohibition on Certain Fees.--A small business 
development center shall not impose or otherwise collect a fee 
or other compensation in connection with the provision of 
counseling services under this section.
  (n) Veterans Assistance and Services Program.--
          (1) In general.--A small business development center 
        may apply for a grant under this subsection to carry 
        out a veterans assistance and services program.
          (2) Elements of program.--Under a program carried out 
        with a grant under this subsection, a small business 
        development center shall--
                  (A) create a marketing campaign to promote 
                awareness and education of the services of the 
                center that are available to veterans, and to 
                target the campaign toward veterans, service-
                disabled veterans, military units, Federal 
                agencies, and veterans organizations;
                  (B) use technology-assisted online counseling 
                and distance learning technology to overcome 
                the impediments to entrepreneurship faced by 
                veterans and members of the Armed Forces; and
                  (C) increase coordination among organizations 
                that assist veterans, including by establishing 
                virtual integration of service providers and 
                offerings for a one-stop point of contact for 
                veterans who are entrepreneurs or owners of 
                small business concerns.
          (3) Amount of grants.--A grant under this subsection 
        shall be for not less than $75,000 and not more than 
        $250,000.
          (4) Funding.--Subject to amounts approved in advance 
        in appropriations Acts, the Administration may make 
        grants or enter into cooperative agreements to carry 
        out the provisions of this subsection.

           *       *       *       *       *       *       *