Text: H.R.1568 — 106th Congress (1999-2000)All Information (Except Text)

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Public Law No: 106-50 (08/17/1999)

 
[106th Congress Public Law 50]
[From the U.S. Government Printing Office]


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[DOCID: f:publ050.106]


[[Page 113 STAT. 233]]

Public Law 106-50
106th Congress

                                 An Act


 
To <<NOTE: Aug. 17, 1999 -  [H.R. 1568]>> provide technical, financial, 
 and procurement assistance to veteran owned small businesses, and for 
                             other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Veterans Entre- preneurship 
and Small Business Development Act of 1999. 15 USC 631 
note.>> assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

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

                       TITLE I--GENERAL PROVISIONS

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

                 TITLE II--VETERANS BUSINESS DEVELOPMENT

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

                     TITLE III--TECHNICAL ASSISTANCE

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

                     TITLE IV--FINANCIAL ASSISTANCE

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

                     TITLE V--PROCUREMENT ASSISTANCE

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

                  TITLE VI--REPORTS AND DATA COLLECTION

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

                   TITLE VII--MISCELLANEOUS PROVISIONS

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

[[Page 113 STAT. 234]]

                       TITLE I--GENERAL PROVISIONS

SEC. 101. <<NOTE: 15 USC 657b note.>> FINDINGS.

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

SEC. <<NOTE: 15 USC 657b note.>> 102. PURPOSE.

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

SEC. 103. DEFINITIONS.

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

[[Page 113 STAT. 235]]

                severe disability, the spouse or permanent caregiver of 
                such veteran.
            ``(3) Small business concern owned and controlled by 
        veterans.--The term `small business concern owned and controlled 
        by veterans' means a small business concern--
                    ``(A) not less than 51 percent of which is owned by 
                one or more veterans or, in the case of any publicly 
                owned business, not less than 51 percent of the stock of 
                which is owned by one or more veterans; and
                    ``(B) the management and daily business operations 
                of which are controlled by one or more veterans.
            ``(4) Veteran.--The term `veteran' has the meaning given the 
        term in section 101(2) of title 38, United States Code.''.

    (b) Applicability <<NOTE: 15 USC 657b note.>> to This Act.--In this 
Act, the definitions contained in section 3(q) of the Small Business 
Act, as added by this section, apply.

                 TITLE II--VETERANS BUSINESS DEVELOPMENT

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

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

    (b) Office of Veterans Business Development; Associate 
Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section <<NOTE: 15 USC 631 note.>> 32 
        as section 34; and
            (2) by inserting after section 31 the following:

``SEC. 32. <<NOTE: 15 USC 657b.>> VETERANS PROGRAMS.

    ``(a) Office <<NOTE: Establishment.>> of Veterans Business 
Development.--There is established in the Administration an Office of 
Veterans Business Development, which shall be administered by the 
Associate Administrator for Veterans Business Development (in this 
section referred to as the `Associate Administrator') appointed under 
section 4(b)(1).

    ``(b) Associate Administrator for Veterans Business Development.--
The Associate Administrator--
            ``(1) shall be an appointee in the Senior Executive Service;
            ``(2) shall be responsible for the formulation, execution, 
        and promotion of policies and programs of the Administration 
        that provide assistance to small business concerns owned and 
        controlled by veterans and small business concerns owned and 
        controlled by service-disabled veterans. The Associate 
        Administrator shall act as an ombudsman for full consideration 
        of veterans in all programs of the Administration; and

[[Page 113 STAT. 236]]

            ``(3) shall report to and be responsible directly to the 
        Administrator.''.

SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

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

``SEC. <<NOTE: 15 USC 657c.>> 33. NATIONAL VETERANS BUSINESS DEVELOPMENT 
            CORPORATION.

    ``(a) Establishment.--There is established a federally chartered 
corporation to be known as the National Veterans Business Development 
Corporation (in this section referred to as the `Corporation') which 
shall be incorporated under the laws of the District of Columbia and 
which shall have the powers granted in this section.
    ``(b) Purposes of the Corporation.--The purposes of the 
Corporation shall be--
            ``(1) to expand the provision of and improve access to 
        technical assistance regarding entrepreneurship for the Nation's 
        veterans; and
            ``(2) to assist veterans, including service-disabled 
        veterans, with the formation and expansion of small business 
        concerns by working with and organizing public and private 
        resources, including those of the Small Business Administration, 
        the Department of Veterans Affairs, the Department of Labor, the 
        Department of Commerce, the Department of Defense, the Service 
        Corps of Retired Executives (described in section 8(b)(1)(B) of 
        this Act), the Small Business Development Centers (described in 
        section 21 of this Act), and the business development staffs of 
        each department and agency of the United States.

    ``(c) Board of Directors.--
            ``(1) In general.--The management of the Corporation shall 
        be vested in a Board of Directors composed of nine voting 
        members and three nonvoting ex officio members.
            ``(2) Appointment <<NOTE: President.>> of voting members.--
        The President shall, after considering recommendations which 
        shall be proposed by the Chairmen and Ranking Members of the 
        Committees on Small Business and the Committees on Veterans 
        Affairs of the House of Representatives and the Senate, appoint 
        United States citizens to be voting members of the Board, not 
        more than five of whom shall be members of the same political 
        party.
            ``(3) Ex officio members.--The Administrator of the Small 
        Business Administration, the Secretary of Defense, and the 
        Secretary of Veterans Affairs shall serve as the nonvoting ex 
        officio members of the Board of Directors.
            ``(4) Initial <<NOTE: Deadline.>> appointments.--The initial 
        members of the Board of Directors shall be appointed not later 
        than 60 days after the date of enactment of this Act.
            ``(5) Chairperson.--The members of the Board of Directors 
        appointed under paragraph (2) shall elect one such member to 
        serve as chairperson of the Board of Directors for a term of 2 
        years.
            ``(6) Terms of appointed members.--

[[Page 113 STAT. 237]]

                    ``(A) In general.--Each member of the Board of 
                Directors appointed under paragraph (2) shall serve a 
                term of 6 years, except as provided in subparagraph (B).
                    ``(B) Terms of initial appointees.--As designated by 
                the President at the time of appointment, of the members 
                first appointed--
                          ``(i) three shall be for a term of 2 years; 
                      and
                          ``(ii) three shall be for a term of 4 years.
                    ``(C) Unexpired terms.--Any member of the Board of 
                Directors appointed to fill a vacancy occurring before 
                the expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of the term. A member may serve after the 
                expiration of that member's term until a successor has 
                taken office.
            ``(7) Vacancies.--Any vacancy on the Board of Directors 
        shall be filled in the manner in which the original appointment 
        was made. In the case of a vacancy in the office of the 
        Administrator of the Small Business Administration or the 
        Secretary of Veterans Affairs, and pending the appointment of a 
        successor, an acting appointee for such vacancy may serve as an 
        ex officio member.
            ``(8) Ineligibility for other offices.--No voting member of 
        the Board of Directors may be an officer or employee of the 
        United States while serving as a member of the Board of 
        Directors or during the 2-year period preceding such service.
            ``(9) Impartiality and nondiscrimination.--The Board of 
        Directors shall administer the affairs of the Corporation fairly 
        and impartially and without discrimination.
            ``(10) Obligations and expenses.--The Board of Directors 
        shall prescribe the manner in which the obligations of the 
        Corporation may be incurred and in which its expenses shall be 
        allowed and paid.
            ``(11) Quorum.--Five voting members of the Board of 
        Directors shall constitute a quorum, but a lesser number may 
        hold hearings.

    ``(d) Corporate <<NOTE: Effective date.>> Powers.--On October 1, 
1999, the Corporation shall become a body corporate and as such shall 
have the authority to do the following:
            ``(1) To adopt and use a corporate seal.
            ``(2) To have succession until dissolved by an Act of 
        Congress.
            ``(3) To make contracts or grants.
            ``(4) To sue and be sued, and to file and defend against 
        lawsuits in State or Federal court.
            ``(5) To appoint, through the actions of its Board of 
        Directors, officers and employees of the Corporation, to define 
        their duties and responsibilities, fix their compensations, and 
        to dismiss at will such officers or employees.
            ``(6) To prescribe, through the actions of its Board of 
        Directors, bylaws not inconsistent with Federal law and the law 
        of the State of incorporation, regulating the manner in which 
        its general business may be conducted and the manner in which 
        the privileges granted to it by law may be exercised.
            ``(7) To exercise, through the actions of its Board of 
        Directors or duly authorized officers, all powers specifically 
        granted

[[Page 113 STAT. 238]]

        by the provisions of this section, and such incidental powers as 
        shall be necessary.
            ``(8) To solicit, receive, and disburse funds from private, 
        Federal, State and local organizations.
            ``(9) To accept and employ or dispose of in furtherance of 
        the purposes of this section any money or property, real, 
        personal, or mixed, tangible or intangible, received by gift, 
        devise, bequest, or otherwise.
            ``(10) To accept voluntary and uncompensated services.

    ``(e) Corporate Funds.--
            ``(1) Deposit of funds.--The Board of Directors shall 
        deposit all funds of the Corporation in federally chartered and 
        insured depository institutions until such funds are disbursed 
        under paragraph (2).
            ``(2) Disbursement of funds.--Funds of the Corporation may 
        be disbursed only for purposes that are--
                    ``(A) approved by the Board of Directors by a 
                recorded vote with a quorum present; and
                    ``(B) in accordance with the purposes of the 
                Corporation as specified in subsection (b).

    ``(f ) Network <<NOTE: Establishment.>> of Information and 
Assistance Centers.--In carrying out the purpose described in subsection 
(b), the Corporation shall establish and maintain a network of 
information and assistance centers for use by veterans and the public.

    ``(g) Annual <<NOTE: Deadline.>> Report.--On or before October 1 of 
each year, the Board of Directors shall transmit a report to the 
President and the Congress describing the activities and accomplishments 
of the Corporation for the preceding year and the Corporation's findings 
regarding the efforts of Federal, State and private organizations to 
assist veterans in the formation and expansion of small business 
concerns.

    ``(h) Assumption of <<NOTE: Effective date.>> Duties of Advisory 
Committee.--On October 1, 2004, the Corporation established under this 
section shall assume the duties, responsibilities, and authority of the 
Advisory Committee on Veterans Affairs established under section 203 of 
this Act.

    ``(i) Use of Mails.--The Corporation may use the United States mails 
in the same manner and under the same conditions as the departments and 
agencies of the United States.
    ``( j) Professional <<NOTE: Establishment.>> Certification Advisory 
Board.--
            ``(1) In general.--Acting through the Board of Directors, 
        the Corporation shall establish a Professional Certification 
        Advisory Board to create uniform guidelines and standards for 
        the professional certification of members of the Armed Services 
        to aid in their efficient and orderly transition to civilian 
        occupations and professions and to remove potential barriers in 
        the areas of licensure and certification.
            ``(2) Membership.--The members of the Advisory Board shall 
        serve without compensation, shall meet in the District of 
        Columbia no less than quarterly, and shall be appointed by the 
        Board of Directors as follows:
                    ``(A) Private sector members.--The Corporation shall 
                appoint not less than seven members for terms of 2 years 
                to represent private sector organizations and 
                associations, including the American Association of 
                Community Colleges, the Society for Human Resource 
                Managers, the Coalition

[[Page 113 STAT. 239]]

                for Professional Certification, the Council on Licensure 
                and Enforcement, and the American Legion.
                    ``(B) Public sector members.--The Corporation shall 
                invite public sector members to serve at the discretion 
                of their departments or agencies and shall--
                          ``(i) encourage the participation of the Under 

                      Secretary of Defense for Personnel and Readiness;
                          ``(ii) encourage the participation of two 
                      officers from each branch of the Armed Forces to 
                      represent the Training Commands of their branch; 
                      and
                          ``(iii) seek the participation and guidance of 
                      the Assistant Secretary of Labor for Veterans' 
                      Employment and Training.

    ``(k) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to the Corporation to carry out 
        this section--
                    ``(A) $2,000,000 for fiscal year 2000;
                    ``(B) $4,000,000 for fiscal year 2001;
                    ``(C) $4,000,000 for fiscal year 2002; and
                    ``(D) $2,000,000 for fiscal year 2003.
            ``(2) Matching requirement.--
                    ``(A) Fiscal year 2001.--The amount made available 
                to the Corporation for fiscal year 2001 may not exceed 
                twice the amount that the Corporation certifies that it 
                will provide for that fiscal year from sources other 
                than the Federal Government.
                    ``(B) Subsequent fiscal years.--The amount made 
                available to the Corporation for fiscal year 2002 or 
                2003 may not exceed the amount that the Corporation 
                certifies that it will provide for that fiscal year from 
                sources other than the Federal Government.
            ``(3) Privatization.--The Corporation shall institute and 
        implement a plan to raise private funds and become a self-
        sustaining corporation.''.

    (b) GAO <<NOTE: Deadline. 15 USC 657c note.>> Report.--Not later 
than 180 days after the last day of the second fiscal year beginning 
after the date on which the initial members of the Board of Directors of 
the National Veterans Business Development Corporation are appointed 
under section 33(c) of the Small Business Act (as added by this 
section), the Comptroller General of the United States shall evaluate 
the effectiveness of the National Veterans Business Development 
Corporation in carrying out the purposes under section 33(b) of the 
Small Business Act (as added by this section), and submit to Congress a 
report on the results of that evaluation.

SEC. 203. <<NOTE: Establishment. 15 USC 657b note.>> ADVISORY COMMITTEE 
            ON VETERANS BUSINESS AFFAIRS.

    (a) In General.--There is established an advisory committee to be 
known as the ``Advisory Committee on Veterans Business Affairs'' (in 
this section referred to as the ``Committee''), which shall serve as an 
independent source of advice and policy recommendations to--
            (1) the Administrator of the Small Business Administration 
        (in this section referred to as the ``Administrator'');
            (2) the Associate Administrator for Veterans Business 
        Development of the Small Business Administration;
            (3) the Congress;

[[Page 113 STAT. 240]]

            (4) the <<NOTE: President.>> President; and
            (5) other United States policymakers.

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

    (c) Duties.--The duties of the Committee shall be the following:
            (1) Review, coordinate, and monitor plans and programs 
        developed in the public and private sectors, that affect the 
        ability of small business concerns owned and controlled by 
        veterans to obtain capital and credit and to access markets.

[[Page 113 STAT. 241]]

            (2) Promote the collection of business information and 
        survey data as they relate to veterans and small business 
        concerns owned and controlled by veterans.
            (3) Monitor and promote plans, programs, and operations of 
        the departments and agencies of the United States that may 
        contribute to the formation and growth of small business 
        concerns owned and controlled by veterans.
            (4) Develop and promote initiatives, policies, programs, and 
        plans designed to foster small business concerns owned and 
        controlled by veterans.
            (5) In cooperation with the National Veterans Business 
        Development Corporation, develop a comprehensive plan, to be 
        updated annually, for joint public-private sector efforts to 
        facilitate growth and development of small business concerns 
        owned and controlled by veterans.

    (d) Powers.--
            (1) Hearings.--Subject to subsection (e), the Committee may 
        hold such hearings, sit and act at such times and places, take 
        such testimony, and receive such evidence as the Committee 
        considers advisable to carry out its duties.
            (2) Information from federal agencies.--Upon request of the 
        Chairperson of the Committee, the head of any department or 
        agency of the United States shall furnish such information to 
        the Committee as the Committee considers to be necessary to 
        carry out its duties.
            (3) Use of mails.--The Committee may use the United States 
        mails in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (4) Gifts.--The Committee may accept, use, and dispose of 
        gifts or donations of services or property.

    (e) Meetings.--
            (1) In general.--The Committee shall meet, not less than 
        three times per year, at the call of the Chairperson or at the 
        request of the Administrator.
            (2) Location.--Each meeting of the full Committee shall be 
        held at the headquarters of the Small Business Administration 
        located in Washington, District of Columbia. The Administrator 
        shall provide suitable meeting facilities and such 
        administrative support as may be necessary for each full meeting 
        of the Committee.
            (3) Task groups.--The Committee may, from time-to-time, 
        establish temporary task groups as may be necessary in order to 
        carry out its duties.

    (f ) Compensation and Expenses.--
            (1) No compensation.--Members of the Committee shall serve 
        without compensation for their service to the Committee.
            (2) Expenses.--The members of the Committee shall be 
        reimbursed for travel and subsistence expenses in accordance 
        with section 5703 of title 5, United States Code.

    (g) Report.--Not <<NOTE: Deadline.>> later than 30 days after the 
end of each fiscal year beginning after the date of the enactment of 
this section, the Committee shall transmit to the Congress 
and <<NOTE: President.>> the President a report describing the 
activities of the Committee and any recommendations developed by the 
Committee for the promotion of small business concerns owned and 
controlled by veterans.

    (h) Termination.--The Committee shall terminate its business on 
September 30, 2004.

[[Page 113 STAT. 242]]

                     TITLE III--TECHNICAL ASSISTANCE

SEC. 301. <<NOTE: 15 USC 657b note.>> SCORE PROGRAM.

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

    (b) Resources.--The Administrator shall provide to SCORE such 
resources as the Administrator determines necessary for SCORE to carry 
out the requirements of the memorandum of understanding specified in 
paragraph (1).

SEC. 302. <<NOTE: 15 USC 657b note.>> ENTREPRENEURIAL ASSISTANCE.

    Not <<NOTE: Deadline. Memorandums.>> later than 180 days after the 
date of the enactment of this Act, the Secretary of Veterans Affairs, 
the Administrator of the Small Business Administration, and the head of 
the association formed pursuant to section 21(a)(3)(A) of the Small 
Business Act (15 U.S.C. 648(a)(3)(A)) shall enter into a memorandum of 
understanding with respect to entrepreneurial assistance to veterans, 
including service-disabled veterans, through Small Business Development 
Centers (described in section 21 of the Small Business Act (15 U.S.C. 
648)) and facilities of the Department of Veterans Affairs. Such 
assistance shall include the following:
            (1) Conducting of studies and research, and the distribution 
        of information generated by such studies and research, on the 
        formation, management, financing, marketing, and operation of 
        small business concerns by veterans.
            (2) Provision of training and counseling to veterans 
        concerning the formation, management, financing, marketing, and 
        operation of small business concerns.
            (3) Provision of management and technical assistance to the 
        owners and operators of small business concerns regarding 
        international markets, the promotion of exports, and the 
        transfer of technology.
            (4) Provision of assistance and information to veterans 
        regarding procurement opportunities with Federal, State, and 
        local agencies, especially such agencies funded in whole or in 
        part with Federal funds.

[[Page 113 STAT. 243]]

            
        (5) <<NOTE: Establishment. Records. Internet.>> Establishment of 
        an information clearinghouse to collect and distribute 
        information, including by electronic means, on the assistance 
        programs of Federal, State, and local governments, and of the 
        private sector, including information on office locations, key 
        personnel, telephone numbers, mail and electronic addresses, and 
        contracting and subcontracting opportunities.
            (6) Provision of Internet or other distance learning 
        academic instruction for veterans in business subjects, 
        including accounting, marketing, and business fundamentals.
            (7) <<NOTE: Records.>> Compilation of a list of small 
        business concerns owned and controlled by service-disabled 
        veterans that provide products or services that could be 
        procured by the United States and delivery of such list to each 
        department and agency of the United States. Such list shall be 
        delivered in hard copy and electronic form and shall include the 
        name and address of each such small business concern and the 
        products or services that it provides.

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

    (a) In General.--Section 8 of the Small Business Act (15 U.S.C. 637) 
is amended by adding at the end the following:
    ``(l) Management Assistance for Small Businesses Affected by 
Military Operations.--The Administration shall utilize, as appropriate, 
its entrepreneurial development and management assistance programs, 
including programs involving State or private sector partners, to 
provide business counseling and training to any small business concern 
adversely affected by the deployment of units of the Armed Forces of the 
United States in support of a period of military conflict (as defined in 
section 7(n)(1)).''.
    (b) Enhanced <<NOTE: 15 USC 637 note.>> Publicity During Operation 
Allied Force.--For the duration of Operation Allied Force and for 120 
days thereafter, the Administration shall enhance its publicity of the 
availability of assistance provided pursuant to the amendment made by 
this section, including information regarding the appropriate local 
office at which affected small businesses may seek such assistance.

    (c) Guidelines.--Not <<NOTE: Deadline.>> later than 30 days after 
the date of the enactment of this section, the Administrator of the 
Small Business Administration shall issue such guidelines as the 
Administrator determines to be necessary to carry out this section and 
the amendment made by this section.

                     TITLE IV--FINANCIAL ASSISTANCE

SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

    (a) Definition of Handicapped Individual.--Section 3(f ) of the 
Small Business Act (15 U.S.C. 632(f )) is amended to read as follows:
    ``(f ) For purposes of section 7 of this Act, the term `handicapped 
individual' means an individual--
            ``(1) who has a physical, mental, or emotional impairment, 
        defect, ailment, disease, or disability of a permanent nature 
        which in any way limits the selection of any type of employment

[[Page 113 STAT. 244]]

        for which the person would otherwise be qualified or 
        qualifiable; or
            ``(2) who is a service-disabled veteran.''.

    (b) Authorization To Make Loans.--Section 7(a)(10) of the Small 
Business Act (15 U.S.C. 636(a)(10)) is amended--
            (1) by inserting ``guaranteed'' after ``provide''; and
            (2) by inserting ``, including service-disabled veterans,'' 
        after ``handicapped individual''.

SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.

    (a) Repayment Deferral for Active Duty Reservists.--
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by adding 
at the end the following:
    ``(n) Repayment Deferred for Active Duty Reservists.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible reservist.--The term `eligible 
                reservist' means a member of a reserve component of the 
                Armed Forces ordered to active duty during a period of 
                military conflict.
                    ``(B) Essential employee.--The term `essential 
                employee' means an individual who is employed by a small 
                business concern and whose managerial or technical 
                expertise is critical to the successful day-to-day 
                operations of that small business concern.
                    ``(C) Period of military conflict.--The term `period 
                of military conflict' means--
                          ``(i) a period of war declared by the 
                      Congress;
                          ``(ii) a period of national emergency declared 
                      by the Congress or by the President; or
                          ``(iii) a period of a contingency operation, 
                      as defined in section 101(a) of title 10, United 
                      States Code.
                    ``(D) Qualified borrower.--The term `qualified 
                borrower' means--
                          ``(i) an individual who is an eligible 
                      reservist and who received a direct loan under 
                      subsection (a) or (b) before being ordered to 
                      active duty; or
                          ``(ii) a small business concern that received 
                      a direct loan under subsection (a) or (b) before 
                      an eligible reservist, who is an essential 
                      employee, was ordered to active duty.
            ``(2) Deferral of direct loans.--
                    ``(A) In general.--The Administration shall, upon 
                written request, defer repayment of principal and 
                interest due on a direct loan made under subsection (a) 
                or (b), if such loan was incurred by a qualified 
                borrower.
                    ``(B) Period of deferral.--The period of deferral 
                for repayment under this paragraph shall begin on the 
                date on which the eligible reservist is ordered to 
                active duty and shall terminate on the date that is 180 
                days after the date such eligible reservist is 
                discharged or released from active duty.
                    ``(C) Interest rate reduction during deferral.--
                Notwithstanding any other provision of law, during the 
                period of deferral described in subparagraph (B), the 
                Administration may, in its discretion, reduce the 
                interest rate on any loan qualifying for a deferral 
                under this paragraph.

[[Page 113 STAT. 245]]

            ``(3) Deferral of loan guarantees and other financings.--The 
        Administration shall--
                    ``(A) encourage intermediaries participating in the 
                program under subsection (m) to defer repayment of a 
                loan made with proceeds made available under that 
                subsection, if such loan was incurred by a small 
                business concern that is eligible to apply for 
                assistance under subsection (b)(3); and
                    ``(B) not <<NOTE: Deadline. Guidelines.>> later than 
                30 days after the date of the enactment of this 
                subsection, establish guidelines to--
                          ``(i) encourage lenders and other 
                      intermediaries to defer repayment of, or provide 
                      other relief relating to, loan guarantees under 
                      subsection (a) and financings under section 504 of 
                      the Small Business Investment Act of 1958 that 
                      were incurred by small business concerns that are 
                      eligible to apply for assistance under subsection 
                      (b)(3), and loan guarantees provided under 
                      subsection (m) if the intermediary provides relief 
                      to a small business concern under this paragraph; 
                      and
                          ``(ii) implement a program to provide for the 
                      deferral of repayment or other relief to any 
                      intermediary providing relief to a small business 
                      borrower under this paragraph.''.

    (b) Disaster Loan Assistance for Military Reservists' Small 
Businesses.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
is amended by inserting after the undesignated paragraph that begins 
with ``Provided, That no loan'', the following:
            ``(3)(A) In this paragraph--
                    ``(i) the term `essential employee' means an 
                individual who is employed by a small business concern 
                and whose managerial or technical expertise is critical 
                to the successful day-to-day operations of that small 
                business concern;
                    ``(ii) the term `period of military conflict' has 
                the meaning given the term in subsection (n)(1); and
                    ``(iii) the term `substantial economic injury' means 
                an economic harm to a business concern that results in 
                the inability of the business concern--
                          ``(I) to meet its obligations as they mature;
                          ``(II) to pay its ordinary and necessary 
                      operating expenses; or
                          ``(III) to market, produce, or provide a 
                      product or service ordinarily marketed, produced, 
                      or provided by the business concern.
            ``(B) The Administration may make such disaster loans 
        (either directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis) to assist a small business concern that has 
        suffered or that is likely to suffer substantial economic injury 
        as the result of an essential employee of such small business 
        concern being ordered to active military duty during a period of 
        military conflict.
            ``(C) <<NOTE: Effective date.>> A small business concern 
        described in subparagraph (B) shall be eligible to apply for 
        assistance under this paragraph during the period beginning on 
        the date on which the essential employee is ordered to active 
        duty and ending on the date that is 90 days after the date on 
        which such essential employee is discharged or released from 
        active duty.

[[Page 113 STAT. 246]]

            ``(D) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(E) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, if the total amount outstanding and committed 
        to the borrower under this subsection would exceed $1,500,000, 
        unless such applicant constitutes a major source of employment 
        in its surrounding area, as determined by the Administration, in 
        which case the Administration, in its discretion, may waive the 
        $1,500,000 limitation.
            ``(F) For purposes of assistance under this paragraph, no 
        declaration of a disaster area shall be required.''.

    (c) Enhanced <<NOTE: 15 USC 636 note.>> Publicity During Operation 
Allied Force.--For the duration of Operation Allied Force and for 120 
days thereafter, the Administration shall enhance its publicity of the 
availability of assistance provided pursuant to the amendments made by 
this section, including information regarding the appropriate local 
office at which affected small businesses may seek such assistance.

    (d) Guidelines.--Not <<NOTE: Deadline. 15 USC 636 note.>> later than 
30 days after the date of the enactment of this section, the 
Administrator of the Small Business Administration shall issue such 
guidelines as the Administrator determines to be necessary to carry out 
this section and the amendments made by this section.

    (e) Effective <<NOTE: 15 USC 636 note.>> Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date of 
        the enactment of this section.
            (2) Disaster <<NOTE: Applicability.>> loans.--The amendments 
        made by subsection (b) shall apply to economic injury suffered 
        or likely to be suffered as the result of a period of military 
        conflict occurring or ending on or after March 24, 1999.

SEC. 403. MICROLOAN PROGRAM.

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

SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PROGRAM.

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

SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

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

[[Page 113 STAT. 247]]

                     TITLE V--PROCUREMENT ASSISTANCE

SEC. 501. SUBCONTRACTING.

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

    (c) Conforming Amendments.--Section 8(d) of the Small Business Act 
(15 U.S.C. 637(d)) is amended by inserting ``small business concerns 
owned and controlled by veterans,'' after ``small business concerns,'' 
the first place it appears in each of paragraphs (4)(D), (4)(E), (6)(A), 
(6)(C), (6)(F), and (10)(B).

SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

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

[[Page 113 STAT. 248]]

    (b) Agency Participation Goals.--Section 15 of the Small Business 
Act (15 U.S.C. 644(g)(2)) is amended--
            (1) in the first sentence, by inserting ``by small business 
        concerns owned and controlled by service-disabled veterans,'' 
        after ``small business concerns,''; the first place it appears;
            (2) in the second sentence, by inserting ``small business 
        concerns owned and controlled by service-disabled veterans,'' 
        after ``small business concerns,'' the first place it appears; 
        and
            (3) in the fourth sentence, by inserting ``small business 
        concerns owned and controlled by service-disabled veterans, by'' 
        after ``including participation by''.

                  TITLE VI--REPORTS AND DATA COLLECTION

SEC. 601. REPORTING REQUIREMENTS.

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

SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.

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

SEC. 603. <<NOTE: 15 USC 657b note.>> ANNUAL REPORT OF THE 
            ADMINISTRATOR.

    The Administrator of the Small Business Administration shall 
transmit annually to the Committees on Small Business and Veterans 
Affairs of the House of Representatives and the Senate a report on the 
needs of small business concerns owned and controlled by veterans and 
small business concerns owned and controlled by service-disabled 
veterans, which shall include information on--
            (1) the availability of Small Business Administration 
        programs for such small business concerns and the degree of 
        utilization of such programs by such small business concerns 
        during the preceding 12-month period, including statistical

[[Page 113 STAT. 249]]

        information on such utilization as compared to the small 
        business community as a whole;
            (2) the percentage and dollar value of Federal contracts 
        awarded to such small business concerns during the preceding 12-
        month period, based on the data collected pursuant to section 
        604(d); and
            (3) proposals to improve the access of such small business 
        concerns to the assistance made available by the United States.

SEC. 604. <<NOTE: 15 USC 657b note.>> DATA AND INFORMATION COLLECTION.

    (a) Information on Federal Procurement Practices.--The Administrator 
of the Small Business Administration shall, for each fiscal year--
            (1) collect information concerning the procurement practices 
        and procedures of each department and agency of the United 
        States having procurement authority;
            (2) <<NOTE: Publication.>> publish and disseminate such 
        information to procurement officers in all Federal agencies; and
            (3) make such information available to any small business 
        concern requesting such information.

    (b) Identification of Small Business Concerns Owned by Eligible 
Veterans.--Each fiscal year, the Secretary of Veterans Affairs shall, in 
consultation with the Assistant Secretary of Labor for Veterans' 
Employment and Training and the Administrator of the Small Business 
Administration, identify small business concerns owned and controlled by 
veterans in the United States. The Secretary shall inform each small 
business concern identified under this paragraph that information on 
Federal procurement is available from the Administrator.
    (c) Self-Employment <<NOTE: Memorandums.>> Opportunities.--The 
Secretary of Labor, the Secretary of Veterans Affairs, and the 
Administrator of the Small Business Administration shall enter into a 
memorandum of understanding to provide for coordination of vocational 
rehabilitation services, technical and managerial assistance, and 
financial assistance to veterans, including service-disabled veterans, 
seeking to employ themselves by forming or expanding small business 
concerns. The memorandum of understanding shall include recommendations 
for expanding existing programs or establishing new programs to provide 
such services or assistance to such veterans.

    (d) Data Collection Required.--The Federal Procurement Data System 
described in section 6(d)(4)(A) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data 
regarding the percentage and dollar value of prime contracts and 
subcontracts awarded to small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by service-
disabled veterans.

                   TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. ADMINISTRATOR'S <<NOTE: 15 USC 633 note.>> ORDER.

    The Administrator of the Small Business Administration shall 
strengthen and reissue the Administrator's order regarding the third 
sentence of section 4(b)(1) of the Small Business Act (15

[[Page 113 STAT. 250]]

U.S.C. 633(b)(1)), relating to nondiscrimination and special 
considerations for veterans, and take all necessary steps to ensure that 
its provisions are fully and vigorously implemented.

SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.

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

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

    (a)  In General.--The Comptroller General shall conduct a study on 
whether there would exist any additional risk or cost to the United 
States if--
            (1) up to 10 percent of the loans guaranteed under chapter 
        37 of title 38, United States Code, were made for the 
        acquisition or construction of fixed assets used in a trade or 
        business rather than for the construction or purchase of 
        residential buildings; and
            (2) such loans for acquisition or construction of fixed 
        assets were for a term of not more than 10 years and the terms 
        regarding eligibility, loan limits, interest, fees, and down 
        payment were the same as for other loans guaranteed under such 
        chapter.

    (b) Report.--
            (1) In <<NOTE: Deadline.>> general.--Not later than 180 days 
        after the enactment of this Act, the Comptroller General shall 
        transmit the report described in subsection (a) to the 
        Committees on Veterans' Affairs and the Committees on Small 
        Business of the House of Representatives and the Senate.
            (2) Contents of report.--The report required by paragraph 
        (1) shall specifically address the following:
                    (A) With respect to the change in the veterans' 
                housing loan program contemplated under subsection (a):
                          (i) The increase or decrease in administrative 
                      costs to the Department of Veterans Affairs.
                          (ii) The increase or decrease in the degree of 
                      exposure of the United States as the guarantor of 
                      the loans.
                          (iii) The increase or decrease in the Federal 
                      subsidy rate that would be possible.
                          (iv) Any increase in the interest rate or fees 
                      charged to the borrower or lender that would be 
                      required to maintain present program costs.

[[Page 113 STAT. 251]]

                    (B) Information regarding the delinquency rates, 
                default rates, length of time required for recovery 
                after default, for fixed-asset business loans, of a size 
                and duration comparable to those contemplated under 
                subsection (a), made available in the private market or 
                under section 503 of the Small Business Investment Act 
                of 1958.

    Approved August 17, 1999.

LEGISLATIVE HISTORY--H.R. 1568:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 106-206, Pt. 1 (Comm. on Small Business).
SENATE REPORTS: No. 106-136 (Comm. on Small Business).
CONGRESSIONAL RECORD, Vol. 145 (1999):
            June 29, considered and passed House.
            Aug. 5, considered and passed Senate, amended. House 
                concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 35 (1999):
            Aug. 17, Presidential statement.

                                  <all>