[House Report 117-330]
[From the U.S. Government Publishing Office]


117th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
 2nd Session   }                                          { 117-330

======================================================================
 
                SUPPORTING SMALL BUSINESS AND CAREER AND 
                 TECHNICAL EDUCATION ACT OF 2022

                                _______
                                

  May 17, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7664]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 7664) to amend the Small Business Act to include 
requirements relating to graduates of career and technical 
education programs or programs of study for small business 
development centers and women's business centers, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Bill Summary.........................................2
 II. Background and Need for Legislation..............................2
III. Hearings.........................................................2
 IV. Committee Consideration..........................................3
  V. Committee Votes..................................................3
 VI. Section-by-Section for H.R. 7664.................................3
VII. Congressional Budget Cost Estimate...............................3
VIII.New Budget Authority, Entitlement Authority, and Tax Expenditures3

 IX. Committee Oversight Findings and Recommendations.................4
  X. Statement of General Performance Goals and Objectives............4
 XI. Duplication of Federal Programs..................................4
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
     Benefits.........................................................4
XIII.Federal Mandates Statement.......................................4

XIV. Federal Advisory Committee Statement.............................4
 XV. Applicability to Legislative Branch..............................4
XVI. Changes in Existing Law Made by the Bill, as Reported............4

                      I. Purpose and Bill Summary

    The purpose of H.R. 7664, the ``Supporting Small Business 
and Career and Technical Education Act of 2022'', is to direct 
Small Business Development Centers (SBDCs) and Women's Business 
Centers (WBCs) to provide support to small businesses looking 
to utilize career and technical education programs to meet 
hiring needs and help recent graduates of career and technical 
education programs start businesses.

                II. Background and Need for Legislation

    H.R. 7664 was introduced by Representatives Roger Williams 
(R-TX) and Marie Newman (D-IL) on May 3, 2022.
    The Small Business Administration (SBA) provides mentoring 
and counseling to more than 1 million entrepreneurs through its 
network of resource partners each year. Small Business 
Development Centers (SBDCs) are the largest of the resource 
partners within the network, with more than 1,000 locations 
nationwide, SBDCs provide valuable resources to small 
businesses across the country, including networking, one on one 
counseling, and extensive training. Through a partnership with 
SBA, SBDCs are hosted by universities, colleges, state economic 
development agencies, or private entities, and their goal is to 
help launch and grow small businesses.
    The Women's Business Centers, another resource partner of 
SBA, have more than 130 centers across the country that offer a 
wide variety of services to women business owners, particularly 
socially and economically disadvantaged. These services include 
personalized counseling and training, classes, and technical 
assistance. Many WBCs offer flexible hours, including weekends 
and evenings, to allow mothers to attend programs and obtain 
services.
    Throughout the pandemic, small firms have faced issues 
related to attracting and retaining a skilled workforce. 
According to the Bureau of Labor Statistics (BLS), there are 
nearly two jobs open for every unemployed individual. Business 
owners understand it is crucial to rebuild this country's 
workforce and give people the skills they need to succeed in 
the 21st century. Career and technical education opportunities 
provide a competitive and practical career path and can help 
address the current labor and skills shortage. Moreover, SBDCs 
and WBCs can be valuable resource partners in supporting small 
businesses in meeting their labor needs and finding skilled 
workers.

                             III. Hearings

    On March 31, 2022, the Subcommittee on Innovation, 
Entrepreneurship, and Workforce Development held a hearing 
examining the factors contributing to the ongoing labor 
shortage. In addition, the hearing focused on potential 
solutions to the workforce development system to address the 
workforce shortage. Ms. Diana Benck, General Operations Manager 
and Owner, West Side Tractor Sales Company, testified that the 
equipment industry foregoes at least $2.4 billion in lost 
revenue annually due to the inability to find skilled service 
technicians. She added if there is not a skilled workforce to 
maintain heavy equipment that can lead to a delay in completing 
construction projects, which can cost its customers lost time 
and money. Ms. Benck testified that investing in career and 
technical education programs to build a pipeline of skilled 
workers can help address the skilled workforce shortages. 
Additionally, Subcommittee Chairman Jason Crow (D-CO) stated 
that initiatives like career and technical education can help 
upskill the American labor force. Furthermore, Subcommittee 
Ranking Member Young Kim (R-CA) spoke in favor of Congressman 
Roger Williams' (R-TX) bipartisan legislation to utilize SBDCs 
and WBCs in hiring career and technical education graduates.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on May 11, 2022, and ordered H.R. 7664 
favorably reported to the House of Representatives. During the 
markup, no amendments were offered.

                           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 legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 7664 to the House at 10:49 a.m.

                  VI. Section-by-Section for H.R. 7664


Section 1. Short title

    This Act may be cited as the ``Supporting Small Business 
and Career and Technical Education Act of 2022''.

Section 2. Inclusion of career and technical education

    This section aims to help small businesses meet their 
hiring needs and support career and technical education 
graduates. Specifically, this section amends the Small Business 
Act to direct SBDCs and WBCs to assist small businesses in 
hiring graduates from career and technical education programs 
and support graduates of career and technical education 
programs in starting up a small business.

                VII. Congressional Budget Cost Estimate

    The Committee has not requested a cost estimate from the 
Director of the Congressional Budget Office.

VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. While 
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 Sec. 
402 of the Congressional Budget Act of 1974, the Committee does 
not believe that there will be any additional costs 
attributable to this legislation.

          IX. Committee Oversight Findings and Recommendations

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
the H.R. 7664 are incorporated into the descriptive portions of 
this report.

        X. Statement of General Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 7664 is to modernize 
and strengthen the SBDC and WBC networks and increase the 
general awareness of the SBDCs and WBCs programs and services.

                  XI. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 7664 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairwoman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

               XIV. Federal Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

       XVI. 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, as 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:

         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 italics, 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) and subject to the 
                requirements specified under subparagraph (C), 
                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 (including the Administration when 
                acting pursuant to subparagraph (A)) 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 24 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 5 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 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) The term ``credit elsewhere'' means--
          (1) for the purposes of this Act (except as used in 
        section 7(b)), the availability of credit on reasonable 
        terms and conditions to the individual loan applicant 
        from non-Federal, non-State, or non-local government 
        sources, considering factors associated with 
        conventional lending practices, including--
                  (A) the business industry in which the loan 
                applicant operates;
                  (B) whether the loan applicant is an 
                enterprise that has been in operation for a 
                period of not more than 2 years;
                  (C) the adequacy of the collateral available 
                to secure the requested loan;
                  (D) the loan term necessary to reasonably 
                assure the ability of the loan applicant to 
                repay the debt from the actual or projected 
                cash flow of the business; and
                  (E) any other factor relating to the 
                particular credit application, as documented in 
                detail by the lender, that cannot be overcome 
                except through obtaining a Federal loan 
                guarantee under prudent lending standards; and
          (2) for the purposes of section 7(b), the 
        availability of credit on reasonable terms and 
        conditions from non-Federal sources taking into 
        consideration the prevailing rates and terms in the 
        community in or near where the applicant business 
        concern transacts business, or the applicant 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) Qualified Hubzone Small Business Concern.--In this Act, 
the term ``qualified HUBZone small business concern'' has the 
meaning given such term in section 31(b).
  (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 any of the following:
                  (A) A small business concern--
                          (i) 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 (not 
                        including any stock owned by an ESOP) 
                        of which is owned by one or more 
                        service-disabled veterans; and
                          (ii) 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.
                  (B) A small business concern--
                          (i) not less than 51 percent of which 
                        is owned by one or more service-
                        disabled veterans with a disability 
                        that is rated by the Secretary of 
                        Veterans Affairs as a permanent and 
                        total disability who are unable to 
                        manage the daily business operations of 
                        such concern; or
                          (ii) in the case of a publicly owned 
                        business, not less than 51 percent of 
                        the stock (not including any stock 
                        owned by an ESOP) of which is owned by 
                        one or more such veterans.
                  (C)(i) During the time period described in 
                clause (ii), a small business concern that was 
                a small business concern described in 
                subparagraph (A) or (B) immediately prior to 
                the death of a service-disabled veteran who was 
                the owner of the concern, the death of whom 
                causes the concern to be less than 51 percent 
                owned by one or more service-disabled veterans, 
                if--
                                  (I) the surviving spouse of 
                                the deceased veteran acquires 
                                such veteran's ownership 
                                interest in such concern;
                                  (II) such veteran had a 
                                service-connected disability 
                                (as defined in section 101(16) 
                                of title 38, United States 
                                Code); and
                                  (III) immediately prior to 
                                the death of such veteran, and 
                                during the period described in 
                                clause (ii), the small business 
                                concern is included in the 
                                database described in section 
                                36.
                          (ii) The time period described in 
                        this clause is the time period 
                        beginning on the date of the veteran's 
                        death and ending on the earlier of--
                                  (I) the date on which the 
                                surviving spouse remarries;
                                  (II) the date on which the 
                                surviving spouse relinquishes 
                                an ownership interest in the 
                                small business concern; or
                          (III) the date that--
                                  (aa) in the case of a 
                                surviving spouse of a veteran 
                                with a service-connected 
                                disability rated as 100 percent 
                                disabling or who dies as a 
                                result of a service-connected 
                                disability, is 10 years after 
                                the date of the death of the 
                                veteran; or
                                  (bb) in the case of a 
                                surviving spouse of a veteran 
                                with a service-connected 
                                disability rated as less than 
                                100 percent disabling who does 
                                not die as a result of a 
                                service-connected disability, 
                                is 3 years after the date of 
                                the death of the 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.).
          (6) ESOP.--The term ``ESOP'' has the meaning given 
        the term ``employee stock ownership plan'' in section 
        4975(e)(7) of the Internal Revenue Code of 1986 (26 
        U.S.C. 4975(e)(7)).
          (7) Surviving spouse.--The term ``surviving spouse'' 
        has the meaning given such term in section 101(3) of 
        title 38, United States Code.
  (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 lender.--The term ``non-
        Federally regulated 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.
  (ee) Puerto Rico Business.--In this Act, the term ``Puerto 
Rico business'' means a small business concern that has its 
principal office located in the Commonwealth of Puerto Rico.
  (ff) Covered Territory Business.--In this Act, the term 
``covered territory business'' means a small business concern 
that has its principal office located in one of the following:
          (1) The United States Virgin Islands.
          (2) American Samoa.
          (3) Guam.
          (4) The Northern Mariana Islands.
  (gg) Career and Technical Education.--The term ``career and 
technical education'' has the meaning given the term in section 
3 of the Carl D. Perkins Career and Technical Education Act of 
2006 (20 U.S.C. 2302).

           *       *       *       *       *       *       *

  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 previous sentence shall not apply to an applicant that has 
its principal office located in the Commonwealth of the 
Northern Mariana Islands. 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, American Samoa, and the 
                Commonwealth of the Northern Mariana Islands.
  (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 2209(a) of the 
                Homeland Security Act of 2002.
  (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;
          (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[.];
          [(U)] (V) in conjunction with the United States 
        Patent and Trademark Office, providing training--
                  (i) to small business concerns relating to--
                          (I) domestic and international 
                        intellectual property protections; and
                          (II) how the protections described in 
                        subclause (I) should be considered in 
                        the business plans and growth 
                        strategies of the small business 
                        concerns; and
                  (ii) that may be delivered--
                          (I) in person; or
                          (II) through a website[.];
          (W) assisting small businesses in hiring graduates 
        from career and technical education programs or 
        programs of study; and
          (X) assisting graduates of career and technical 
        education programs or programs of study in starting up 
        a small business concern.
  (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.

           *       *       *       *       *       *       *


SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.

  (a) Definitions.--In this section--
          (1) the term ``Assistant Administrator'' means the 
        Assistant Administrator of the Office of Women's 
        Business Ownership established under subsection (g);
          (2) the term ``private nonprofit organization'' means 
        an entity that is described in section 501(c) of the 
        Internal Revenue Code of 1986 and exempt from taxation 
        under section 501(a) of such Code;
          (3) the term ``small business concern owned and 
        controlled by women'', either startup or existing, 
        includes any small business concern--
                  (A) that is not less than 51 percent owned by 
                1 or more women; and
                  (B) the management and daily business 
                operations of which are controlled by 1 or more 
                women; and
          (4) the term ``women's business center site'' means 
        the location of--
                  (A) a women's business center; or
                  (B) 1 or more women's business centers, 
                established in conjunction with another women's 
                business center in another location within a 
                State or region--
                          (i) that reach a distinct population 
                        that would otherwise not be served;
                          (ii) whose services are targeted to 
                        women; and
                          (iii) whose scope, function, and 
                        activities are similar to those of the 
                        primary women's business center or 
                        centers in conjunction with which it 
                        was established.
  (b) Authority.--The Administration may provide financial 
assistance to private nonprofit organizations to conduct 5-year 
projects for the benefit of small business concerns owned and 
controlled by women. The projects shall provide--
          (1) financial assistance, including training and 
        counseling in how to apply for and secure business 
        credit and investment capital, preparing and presenting 
        financial statements, and managing cash flow and other 
        financial operations of a business concern;
          (2) management assistance, including training and 
        counseling in how to plan, organize, staff, direct, and 
        control each major activity and function of a small 
        business concern; [and]
          (3) marketing assistance, including training and 
        counseling in identifying and segmenting domestic and 
        international market opportunities, preparing and 
        executing marketing plans, developing pricing 
        strategies, locating contract opportunities, 
        negotiating contracts, and utilizing varying public 
        relations and advertising techniques[.];
          (4) assistance for small business concerns to hire 
        graduates from career and technical education programs 
        or programs of study; and
          (5) assistance for graduates of career and technical 
        education programs or programs of study to start up a 
        small business concern.
  (c) Conditions of Participation.--
          (1) Non-federal contributions.--As a condition of 
        receiving financial assistance authorized by this 
        section, the recipient organization shall agree to 
        obtain, after its application has been approved and 
        notice of award has been issued, cash contributions 
        from non-Federal sources as follows:
                  (A) in the first and second years, 1 non-
                Federal dollar for each 2 Federal dollars; and
                  (B) in the third, fourth, and fifth years, 1 
                non-Federal dollar for each Federal dollar.
          (2) Form of non-federal contributions.--Not more than 
        one-half of the non-Federal sector matching assistance 
        may be in the form of in-kind contributions that are 
        budget line items only, including office equipment and 
        office space.
          (3) Form of federal contributions.--The financial 
        assistance authorized pursuant to this section may be 
        made by grant, contract, or cooperative agreement and 
        may contain such provision, as necessary, to provide 
        for payments in lump sum or installments, and in 
        advance or by way of reimbursement. The Administration 
        may disburse up to 25 percent of each year's Federal 
        share awarded to a recipient organization after notice 
        of the award has been issued and before the non-Federal 
        sector matching funds are obtained.
          (4) Failure to obtain non-federal funding.--If any 
        recipient of assistance fails to obtain the required 
        non-Federal contribution during any project, it shall 
        not be eligible thereafter for advance disbursements 
        pursuant to paragraph (3) during the remainder of that 
        project, or for any other project for which it is or 
        may be funded by the Administration, and prior to 
        approving assistance to such organization for any other 
        projects, the Administration shall specifically 
        determine whether the Administration believes that the 
        recipient will be able to obtain the requisite non-
        Federal funding and enter a written finding setting 
        forth the reasons for making such determination.
  (d) Contract Authority.--A women's business center may enter 
into a contract with a Federal department or agency to provide 
specific assistance to women and other underserved small 
business concerns. Performance of such contract should not 
hinder the women's business centers in carrying out the terms 
of the grant received by the women's business centers from the 
Administration.
  (e) Submission of 5-Year Plan.--Each applicant organization 
initially shall submit a 5-year plan to the Administration on 
proposed fundraising and training activities, and a recipient 
organization may receive financial assistance under this 
program for a maximum of 5 years per women's business center 
site.
  (f) Criteria.--The Administration shall evaluate and rank 
applicants in accordance with predetermined selection criteria 
that shall be stated in terms of relative importance. Such 
criteria and their relative importance shall be made publicly 
available and stated in each solicitation for applications made 
by the Administration. The criteria shall include--
          (1) the experience of the applicant in conducting 
        programs or ongoing efforts designed to impart or 
        upgrade the business skills of women business owners or 
        potential owners;
          (2) the present ability of the applicant to commence 
        a project within a minimum amount of time;
          (3) the ability of the applicant to provide training 
        and services to a representative number of women who 
        are both socially and economically disadvantaged; and
          (4) the location for the women's business center site 
        proposed by the applicant.
  (g) Office of Women's Business Ownership.--
          (1) Establishment.--There is established within the 
        Administration an Office of Women's Business Ownership, 
        which shall be responsible for the administration of 
        the Administration's programs for the development of 
        women's business enterprises (as defined in section 408 
        of the Women's Business Ownership Act of 1988 (15 
        U.S.C. 631 note)). The Office of Women's Business 
        Ownership shall be administered by an Assistant 
        Administrator, who shall be appointed by the 
        Administrator.
          (2) Assistant administrator of the office of women's 
        business ownership.--
                  (A) Qualification.--The position of Assistant 
                Administrator shall be a Senior Executive 
                Service position under section 3132(a)(2) of 
                title 5, United States Code. The Assistant 
                Administrator shall serve as a noncareer 
                appointee (as defined in section 3132(a)(7) of 
                that title).
                  (B) Responsibilities and duties.--
                          (i) Responsibilities.--The 
                        responsibilities of the Assistant 
                        Administrator shall be to administer 
                        the programs and services of the Office 
                        of Women's Business Ownership 
                        established to assist women 
                        entrepreneurs in the areas of--
                                  (I) starting and operating a 
                                small business;
                                  (II) development of 
                                management and technical 
                                skills;
                                  (III) seeking Federal 
                                procurement opportunities; and
                                  (IV) increasing the 
                                opportunity for access to 
                                capital.
                          (ii) Duties.--The Assistant 
                        Administrator shall--
                                  (I) administer and manage the 
                                Women's Business Center 
                                program;
                                  (II) recommend the annual 
                                administrative and program 
                                budgets for the Office of 
                                Women's Business Ownership 
                                (including the budget for the 
                                Women's Business Center 
                                program);
                                  (III) establish appropriate 
                                funding levels therefore;
                                  (IV) review the annual 
                                budgets submitted by each 
                                applicant for the Women's 
                                Business Center program;
                                  (V) select applicants to 
                                participate in the program 
                                under this section;
                                  (VI) implement this section;
                                  (VII) maintain a 
                                clearinghouse to provide for 
                                the dissemination and exchange 
                                of information between women's 
                                business centers;
                                  (VIII) serve as the vice 
                                chairperson of the Interagency 
                                Committee on Women's Business 
                                Enterprise;
                                  (IX) serve as liaison for the 
                                National Women's Business 
                                Council; and
                                  (X) advise the Administrator 
                                on appointments to the Women's 
                                Business Council.
                  (C) Consultation requirements.--In carrying 
                out the responsibilities and duties described 
                in this paragraph, the Assistant Administrator 
                shall confer with and seek the advice of the 
                Administration officials in areas served by the 
                women's business centers.
  (h) Program Examination.--
          (1) In general.--The Administration shall--
                  (A) develop and implement an annual 
                programmatic and financial examination of each 
                women's business center established pursuant to 
                this section, pursuant to which each such 
                center shall provide to the Administration--
                          (i) an itemized cost breakdown of 
                        actual expenditures for costs incurred 
                        during the preceding year; and
                          (ii) documentation regarding the 
                        amount of matching assistance from non-
                        Federal sources obtained and expended 
                        by the center during the preceding year 
                        in order to meet the requirements of 
                        subsection (c) and, with respect to any 
                        in-kind contributions described in 
                        subsection (c)(2) that were used to 
                        satisfy the requirements of subsection 
                        (c), verification of the existence and 
                        valuation of those contributions; and
                  (B) analyze the results of each such 
                examination and, based on that analysis, make a 
                determination regarding the programmatic and 
                financial viability of each women's business 
                center.
          (2) Conditions for continued funding.--In determining 
        whether to award a contract (as a sustainability grant) 
        under subsection (l) or to renew a contract (either as 
        a grant or cooperative agreement) under this section 
        with a women's business center, the Administration--
                  (A) shall consider the results of the most 
                recent examination of the center under 
                paragraph (1); and
                  (B) may withhold such award or renewal, if 
                the Administration determines that--
                          (i) the center has failed to provide 
                        any information required to be provided 
                        under clause (i) or (ii) of paragraph 
                        (1)(A), or the information provided by 
                        the center is inadequate; or
                          (ii) the center has failed to provide 
                        any information required to be provided 
                        by the center for purposes of the 
                        report of the Administration under 
                        subsection (j), or the information 
                        provided by the center is inadequate.
  (i) Contract Authority.--The authority of the Administrator 
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 Administrator has 
entered into 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 Administrator provides the applicant with 
written notification setting forth the reasons therefore and 
affords the applicant an opportunity for a hearing, appeal, or 
other administrative proceeding under chapter 5 of title 5, 
United States Code.
  (j) Management Report.--
          (1) In general.--The Administration shall prepare and 
        submit to the Committees on Small Business of the House 
        of Representatives and the Senate a report on the 
        effectiveness of all projects conducted under this 
        section.
          (2) Contents.--Each report submitted under paragraph 
        (1) shall include information concerning, with respect 
        to each women's business center established pursuant to 
        this section--
                  (A) the number of individuals receiving 
                assistance;
                  (B) the number of startup business concerns 
                formed;
                  (C) the gross receipts of assisted concerns;
                  (D) the employment increases or decreases of 
                assisted concerns;
                  (E) to the maximum extent practicable, 
                increases or decreases in profits of assisted 
                concerns; and
                  (F) the most recent analysis, as required 
                under subsection (h)(1)(B), and the subsequent 
                determination made by the Administration under 
                that subsection.
  (k) Authorization of Appropriations.--
          (1) In general.--There is authorized to be 
        appropriated, to remain available until the expiration 
        of the pilot program under subsection (l)--
                  (A) $12,000,000 for fiscal year 2000;
                  (B) $12,800,000 for fiscal year 2001;
                  (C) $13,700,000 for fiscal year 2002; and
                  (D) $14,500,000 for fiscal year 2003.
          (2) Use of amounts.--
                  (A) In general.--Except as provided in 
                subparagraph (B), amounts made available under 
                this subsection for fiscal year 1999, and each 
                fiscal year thereafter, may only be used for 
                grant awards and may not be used for costs 
                incurred by the Administration in connection 
                with the management and administration of the 
                program under this section.
                  (B) Exceptions.--Of the amount made available 
                under this subsection for a fiscal year, the 
                following amounts shall be available for 
                selection panel costs, post-award conference 
                costs, and costs related to monitoring and 
                oversight:
                          (i) For fiscal year 2000, 2 percent.
                          (ii) For fiscal year 2001, 1.9 
                        percent.
                          (iii) For fiscal year 2002, 1.9 
                        percent.
                          (iv) For fiscal year 2003, 1.6 
                        percent.
          (3) Expedited acquisition.--Notwithstanding any other 
        provision of law, the Administrator, acting through the 
        Assistant Administrator, may use such expedited 
        acquisition methods as the Administrator determines to 
        be appropriate to carry out this section, except that 
        the Administrator shall ensure that all small business 
        sources are provided a reasonable opportunity to submit 
        proposals.
          (4) Reservation of funds for sustainability pilot 
        program.--
                  (A) In general.--Subject to subparagraph (B), 
                of the total amount made available under this 
                subsection for a fiscal year, the following 
                amounts shall be reserved for sustainability 
                grants under subsection (l):
                          (i) For fiscal year 2000, 17 percent.
                          (ii) For fiscal year 2001, 18.8 
                        percent.
                          (iii) For fiscal year 2002, 30.2 
                        percent.
                          (iv) For fiscal year 2003, 30.2 
                        percent.
                  (B) Use of unawarded funds for sustainability 
                pilot program grants.--If the amount reserved 
                under subparagraph (A) for any fiscal year is 
                not fully awarded to private nonprofit 
                organizations described in subsection 
                (l)(1)(B), the Administration is authorized to 
                use the unawarded amount to fund additional 
                women's business center sites or to increase 
                funding of existing women's business center 
                sites under subsection (b).
  (m) Continued Funding for Centers.--
          (1) In general.--A nonprofit organization described 
        in paragraph (2) shall be eligible to receive, subject 
        to paragraph (3), a 3-year grant under this subsection.
          (2) Applicability.--A nonprofit organization 
        described in this paragraph is a nonprofit organization 
        that has received funding under subsection (b) or (l).
          (3) Application and approval criteria.--
                  (A) Criteria.--Subject to subparagraph (B), 
                the Administrator shall develop and publish 
                criteria for the consideration and approval of 
                applications by nonprofit organizations under 
                this subsection.
                  (B) Contents.--Except as otherwise provided 
                in this subsection, the conditions for 
                participation in the grant program under this 
                subsection shall be the same as the conditions 
                for participation in the program under 
                subsection (l), as in effect on the date of 
                enactment of this Act.
                  (C) Notification.--Not later than 60 days 
                after the date of the deadline to submit 
                applications for each fiscal year, the 
                Administrator shall approve or deny any 
                application under this subsection and notify 
                the applicant for each such application.
          (4) Award of grants.--
                  (A) In general.--Subject to the availability 
                of appropriations, the Administrator shall make 
                a grant for the Federal share of the cost of 
                activities described in the application to each 
                applicant approved under this subsection.
                  (B) Amount.--A grant under this subsection 
                shall be for not more than $150,000, for each 
                year of that grant.
                  (C) Federal share.--The Federal share under 
                this subsection shall be not more than 50 
                percent.
                  (D) Priority.--In allocating funds made 
                available for grants under this section, the 
                Administrator shall give applications under 
                this subsection or subsection (l) priority over 
                first-time applications under subsection (b).
          (5) Renewal.--
                  (A) In general.--The Administrator may renew 
                a grant under this subsection for additional 3-
                year periods, if the nonprofit organization 
                submits an application for such renewal at such 
                time, in such manner, and accompanied by such 
                information as the Administrator may establish.
                  (B) Unlimited renewals.--There shall be no 
                limitation on the number of times a grant may 
                be renewed under subparagraph (A).
  (n) Privacy Requirements.--
          (1) In general.--A women's business 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--
                  (A) 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
                  (B) the Administrator considers such a 
                disclosure to be necessary for the purpose of 
                conducting a financial audit of a women's 
                business center, but a disclosure under this 
                subparagraph shall be limited to the 
                information necessary for such audit.
          (2) Administration use of information.--This 
        subsection shall not--
                  (A) restrict Administration access to program 
                activity data; or
                  (B) prevent the Administration from using 
                client information (other than the information 
                described in subparagraph (A)) to conduct 
                client surveys.
          (3) Regulations.--The Administrator shall issue 
        regulations to establish standards for requiring 
        disclosures during a financial audit under paragraph 
        (1)(B).
  (o) Study and Report on Representation of Women.--
          (1) Study.--The Administrator shall periodically 
        conduct a study to identify industries, as defined 
        under the North American Industry Classification 
        System, underrepresented by small business concerns 
        owned and controlled by women.
          (2) Report.--Not later than 3 years after the date of 
        enactment of this subsection, and every 5 years 
        thereafter, the Administrator 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 on the results of each 
        study under paragraph (1) conducted during the 5-year 
        period ending on the date of the report.

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