Text: H.R.1983 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (04/21/2009)

 
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1983 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1983

 To enact certain laws relating to small business as title 53, United 
                    States Code, ``Small Business''.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 2009

    Mr. Conyers (for himself and Mr. Smith of Texas) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To enact certain laws relating to small business as title 53, United 
                    States Code, ``Small Business''.

  Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1.  Table of contents.
Sec. 2.  Purpose; conformity with original intent.
Sec. 3.  Enactment of title 53, United States Code.
Sec. 4.  Conforming amendments to positive law provisions of the United 
          States Code.
Sec. 5.  Conforming amendments to non-positive law provisions of the 
          United States Code.
Sec. 6.  Transitional and savings provisions.
Sec. 7.  Repeals.

SEC. 2. PURPOSE; CONFORMITY WITH ORIGINAL INTENT.

  (a) Purpose.--The purpose of this Act is to codify certain existing 
laws relating to small business as a positive law title of the United 
States Code.
  (b) Conformity With Original Intent.--In the codification of laws by 
this Act, the intent is to conform to the understood policy, intent, 
and purpose of Congress in the original enactments, with such 
amendments and corrections as will remove ambiguities, contradictions, 
and other imperfections, in accordance with section 205(c)(1) of House 
Resolution No. 988, 93d Congress, as enacted into law by Public Law 93-
554 (2 U.S.C. 285b(1)).

SEC. 3. ENACTMENT OF TITLE 53, UNITED STATES CODE.

  Title 53, United States Code, ``Small Business'', is enacted as 
follows:

                        TITLE 53--SMALL BUSINESS

                     Subtitle I--General Provisions

Chap.                                                               Sec.

Definitions and declarations.......................................10101
Small Business Administration......................................10301
Penalties..........................................................10501
Periodic reports...................................................10701
Funding............................................................10901

    Subtitle II--Loan, Contracting, and Related Assistance Programs

                     DIVISION A--GENERAL PROVISIONS

General Provisions.................................................20101

               DIVISION B--GENERAL BUSINESS LOAN PROGRAM

General purpose loans..............................................20301
Special purpose loans..............................................20501
Small business lending companies and non-federally regulated lender20701

                     DIVISION C--MICROLOAN PROGRAM

Microloan program..................................................21101

                DIVISION D--DISASTER ASSISTANCE PROGRAMS

Disaster loan program..............................................21301
Private disaster assistance program................................21501
Immediate disaster assistance program..............................21501
Expedited disaster assistance business loan guarantee program......21901

                DIVISION E--BUSINESS DEVELOPMENT PROGRAM

General provisions.................................................23101
Contracting........................................................23301
Technical and management assistance................................21701

                   DIVISION F--PROCUREMENT ASSISTANCE

General provisions.................................................24101
Subcontracting provisions..........................................24301
Notice provisions..................................................24501
Noncompetitive procedures..........................................24701
Small business competitiveness demonstration program...............24901

               DIVISION G--CONTRACT RESERVATION PROGRAMS

General provisions.................................................25101
HUBZone program....................................................25301
Small business concerns owned and controlled by service-disabled 
veterans...........................................................25501
Small business concerns owned and controlled by women..............25701

                  DIVISION H--RESEARCH AND DEVELOPMENT

General provisions.................................................26101
SBIRs and STTRs....................................................26301

             DIVISION I--SMALL BUSINESS DEVELOPMENT PROGRAM

Small business development center program..........................27101

              DIVISION J--WOMEN'S BUSINESS CENTER PROGRAM

Women's business center program....................................27301

                  DIVISION K--VETERANS AND RESERVISTS

Veterans and reservists............................................27501

                       DIVISION X--MISCELLANEOUS

Miscellaneous......................................................29101

                   Subtitle III--Investment Division

                     DIVISION A--GENERAL PROVISIONS

General provisions.................................................30101

                    DIVISION B--INVESTMENT PROGRAMS

Small Business Investment Company Program..........................30301
New Markets Venture Capital Company Program........................30501
Renewable Fuel Capital Investment Pilot Program....................30701

               DIVISION C--SURETY BOND GUARANTEE PROGRAM

Surety and bond guarantee program..................................32101

           DIVISION D--CERTIFIED DEVELOPMENT COMPANY PROGRAM

Certified development company program..............................33101

                       Subtitle IV--Miscellaneous

PRIME program......................................................40101
Women's business enterprise development............................40301
Miscellaneous......................................................45101

                     Subtitle I--General Provisions

               CHAPTER 101--DEFINITIONS AND DECLARATIONS

Sec.
10101.  Definitions.
10102.  Declarations.
Sec. 10101. Definitions
  In this title:
          (1) Accredited lenders program.--The term ``accredited 
        lenders program'' means the program under section 33107 of this 
        title.
          (2) Activated.--The term ``activated'', with respect to a 
        reservist, means having received an order placing the reservist 
        on active duty.
          (3) Active duty.--The term ``active duty'' has the meaning 
        given the term in section 101 of title 10.
          (4) Administration.--The term ``Administration'' means the 
        Small Business Administration.
          (5) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
          (6) Agricultural commodity.--The term ``agricultural 
        commodity'' has the meaning given the term in section 102 of 
        the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
          (7) Agricultural enterprise.--The term ``agricultural 
        enterprise'' means a business engaged in--
                  (A) the production of food or fiber;
                  (B) ranching;
                  (C) raising of livestock;
                  (D) aquaculture; or
                  (E) any other industry related to agriculture.
          (8) Alaska native corporation.--The term ``Alaska Native 
        Corporation'' has the meaning given the term ``Native 
        Corporation'' in section 3 of the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1602).
          (9) Alaska native village.--The term ``Alaska Native 
        Village'' has the meaning given the term ``Native village'' in 
        section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 
        1602).
          (10) Association.--The term ``Association'' means the 
        association of small business development centers recognized 
        under section 27102(f) of this title.
          (11) Base closure area.--The term ``base closure area'' has 
        the meaning given the term in section 25301 of this title.
          (12) Biomass.--
                  (A) In general.--The term ``biomass'' means any 
                organic material that is available on a renewable or 
                recurring basis.
                  (B) Inclusions.--The term ``biomass'' includes--
                          (i) agricultural crops;
                          (ii) trees grown for energy production;
                          (iii) wood waste and wood residues;
                          (iv) plants (including aquatic plants and 
                        grasses);
                          (v) residues;
                          (vi) fibers;
                          (vii) animal wastes and other waste 
                        materials; and
                          (viii) fats, oils, and greases (including 
                        recycled fats, oils, and greases).
                  (C) Exclusions.--The term ``biomass'' does not 
                include--
                          (i) paper that is commonly recycled; or
                          (ii) unsegregated solid waste.
          (13) 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.
          (14) Bundling of contract requirements.--
                  (A) In general.--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--
                          (i) the diversity, size, or specialized 
                        nature of the elements of the performance 
                        specified;
                          (ii) the aggregate dollar value of the 
                        anticipated award;
                          (iii) the geographical dispersion of the 
                        contract performance sites; or
                          (iv) a combination of the factors described 
                        in clauses (i), (ii), and (iii).
                  (B) Separate smaller contract.--In subparagraph (A), 
                the term ``separate smaller contract'' means a contract 
                that--
                          (i) has been performed by one or more small 
                        business concerns; or
                          (ii) was suitable for award to one or more 
                        small business concerns.
          (15) Business development program.--The term ``business 
        development program'' means the program under division E of 
        subtitle II.
          (16) Certified development company program.--The term 
        ``certified development company program'' means the program 
        under division D of subtitle III.
          (17) Computer crime.--The term ``computer crime'' means--
                  (A) a crime committed against a small business 
                concern by means of the use of a computer; and
                  (B) a crime involving the illegal use of, or 
                tampering with, a computer owned or utilized by a small 
                business concern.
          (18) Contracting officer.--The term ``contracting officer'' 
        has the meaning given the term in section 27(f) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 423(f)).
          (19) Credit elsewhere.--The term ``credit elsewhere'', with 
        respect to a concern or homeowner, means sufficient credit that 
        is available from a non-Federal source on reasonable terms and 
        conditions taking into consideration the prevailing rates and 
        terms in the community in or near which the concern transacts 
        business or the homeowner resides, for similar purposes and 
        periods of time.
          (20) Defense agency.--The term ``defense agency'' has the 
        meaning given the term in section 101 of title 10.
          (21) Disabled individual.--The term ``disabled individual'' 
        means an individual who--
                  (A) has a physical, mental, or emotional impairment, 
                defect, ailment, disease, or disability of a permanent 
                nature that in any way limits the selection of any type 
                of employment for which the person would otherwise be 
                qualified or qualifiable; or
                  (B) is a service-disabled veteran.
          (22) Disabled veteran.--The term ``disabled veteran'' has the 
        meaning given the term in section 4211 of title 38.
          (23) Disadvantaged owner.--The term ``disadvantaged owner'' 
        has the meaning given the term in section 23101 of this title.
          (24) Disaster.--
                  (A) In general.--The term ``disaster'' means a sudden 
                event that causes severe damage.
                  (B) Inclusions.--The term ``disaster'' includes a 
                flood, hurricane, tornado, earthquake, fire, explosion, 
                volcano, windstorm, landslide or mudslide, tidal wave, 
                commercial fishery failure or fishery resource disaster 
                (as determined by the Secretary of Commerce under 
                section 308(b) of the Interjurisdictional Fisheries Act 
                of 1986 (16 U.S.C. 4107(b))), ocean condition resulting 
                in the closure of customary fishing water, riot, civil 
                disorder, or other catastrophe.
                  (C) Exclusion.--The term ``disaster'' does not 
                include an economic dislocation.
          (25) Disaster area.--The term ``disaster area'' means an area 
        affected by a natural or other disaster, as determined for 
        purposes of section 21301 or 21302 of this title, during the 
        period of the declaration.
          (26) Disaster assistance program.--The term ``disaster 
        assistance program'' means--
                  (A) the disaster loan program;
                  (B) the private disaster assistance program;
                  (C) the immediate disaster assistance program; and
                  (D) the expedited disaster assistance business loan 
                guarantee program.
          (27) Disaster loan program.--The term ``disaster loan 
        program'' means the program under chapter 213.
          (28) Economically disadvantaged indian tribe.--The term 
        ``economically disadvantaged Indian tribe'' has the meaning 
        given the term in section 23101 of this title.
          (29) Energy efficiency project.--The term ``energy efficiency 
        project'' means the installation or upgrading of equipment that 
        results in a significant reduction in energy usage.
          (30) Energy measure.--The term ``energy measure'' includes--
                  (A) solar thermal energy equipment that is--
                          (i) of the active type based on mechanically 
                        forced energy transfer;
                          (ii) of the passive type based on convective, 
                        conductive, or radiant energy transfer; or
                          (iii) a combination of the types described in 
                        clauses (i) and (ii);
                  (B) photovoltaic cells and related equipment;
                  (C) a product or service--
                          (i) the primary purpose of which is 
                        conservation of energy through a device or 
                        technique that increases the energy efficiency 
                        of existing equipment, methods of operation, or 
                        systems that use fossil fuel; and
                          (ii) that is on the Energy Conservation 
                        Measures list of the Secretary of Energy or 
                        that the Administrator determines to be 
                        consistent with the intent of this paragraph;
                  (D) equipment the primary purpose of which is 
                production of energy from wood, biological waste, 
                grain, or another biomass (as defined by the 
                Administrator) source of energy;
                  (E) equipment the primary purpose of which is 
                industrial cogeneration of energy, district heating, or 
                production of energy from industrial waste;
                  (F) hydroelectric power equipment;
                  (G) wind energy conversion equipment; and
                  (H) an engineering, architectural, consulting, or 
                other professional service that is necessary or 
                appropriate to aid citizens in using any of the 
                measures described in subparagraphs (A) to (G).
          (31) Expedited disaster assistance loan guarantee program.--
        The term ``expedited disaster assistance loan guarantee 
        program'' means the program under chapter 219.
          (32) Export working capital program.--The term ``export 
        working capital program'' means the program established under 
        section 20508 of this title.
          (33) Express lender.--The term ``express lender'' means a 
        lender authorized by the Administrator to participate in the 
        express loan program.
          (34) Express loan.--The term ``express loan'' means a loan 
        made pursuant to section 20320 of this title in which a lender 
        utilizes to the maximum extent practicable its own loan 
        analyses, procedures, and documentation.
          (35) Express loan program.--The term ``express loan program'' 
        means the program for express loans established by the 
        Administrator under section 7(a)(25)(B) of the Small Business 
        Act (15 U.S.C. 636(a)(25)(B)) (as in existence on April 5, 
        2004), with a guarantee rate of not more than 50 percent.
          (36) Federal agency.--Except in subtitles III and IV:
                  (A) In general.--The term ``Federal agency'' has the 
                meaning given the term ``agency'' in section 551 of 
                title 5.
                  (B) Exclusion.--The term ``Federal agency'' does not 
                include--
                          (i) the United States Postal Service; or
                          (ii) the Government Accountability Office.
          (37) General business loan program.--The term ``general 
        business loan program'' means the program under division B of 
        subtitle II.
          (38) Historically underutilized business zone.--The term 
        ``historically underutilized business zone'' has the meaning 
        given the term in section 25301 of this title.
          (39) Homeowner.--The term ``homeowner'' includes an owner or 
        lessee of residential property (including personal property of 
        the owner or lessee of the residential property).
          (40) HUBZone.--The term ``HUBZone'' has the meaning given the 
        term in section 25301 of this title.
          (41) HUBZone program.--The term ``HUBZone program'' means the 
        program under chapter 253.
          (42) HUBZone small business concern.--The term ``HUBZone 
        small business concern'' has the meaning given the term in 
        section 25301 of this title.
          (43) Immediate disaster assistance program.--The term 
        ``immediate disaster assistance program'' means the program 
        under chapter 217.
          (44) Indian reservation.--
                  (A) In general.--The term ``Indian reservation'' has 
                the meaning given the term ``Indian country'' in 
                section 1151 of title 18.
                  (B) Exclusions.--The term ``Indian reservation'' does 
                not include--
                          (i) land located in a State in which an 
                        Indian tribe did not exercise governmental 
                        jurisdiction on December 21, 2000, unless that 
                        Indian tribe is recognized after December 21, 
                        2000, by either an Act of Congress or pursuant 
                        to regulations of the Secretary of the Interior 
                        for the administrative recognition that an 
                        Indian group exists as an Indian tribe (part 83 
                        of title 25, Code of Federal Regulations); or
                          (ii) land taken into trust or acquired by an 
                        Indian tribe after December 21, 2000, if the 
                        land--
                                  (I) is not located within the 
                                external boundaries of an Indian 
                                reservation or former reservation; or
                                  (II) is not contiguous to the land 
                                held in trust or restricted status on 
                                December 21, 2000.
                  (C) Land in oklahoma.--With respect to land in the 
                State of Oklahoma, the term ``Indian reservation'' 
                means land that--
                          (i) is within the jurisdictional areas of an 
                        Oklahoma Indian tribe (as determined by the 
                        Secretary of the Interior); and
                          (ii) is recognized by the Secretary of the 
                        Interior as eligible for trust land status 
                        under part 151 of title 25, Code of Federal 
                        Regulations (as in effect on December 21, 
                        2000).
          (45) Major disaster.--The term ``major disaster'' has the 
        meaning given the term in section 102 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122).
          (46) Major disaster area.--The term ``major disaster area'' 
        means the area for which a major disaster is declared.
          (47) Microloan program.--The term ``microloan program'' means 
        the program under chapter 211.
          (48) Military department.--The term ``military department'' 
        has the meaning given the term in section 101 of title 10.
          (49) Native hawaiian organization.--The term ``Native 
        Hawaiian organization'' means a community service organization 
        serving Native Hawaiians in the State of Hawaii--
                  (A) that is a nonprofit corporation that has filed 
                articles of incorporation with the director of the 
                Hawaii Department of Commerce and Consumer Affairs, or 
                any successor agency;
                  (B) that is controlled by Native Hawaiians; and
                  (C) the business activities of which will principally 
                benefit Native Hawaiians in the State of Hawaii.
          (50) New markets venture capital company program.--The term 
        ``new markets venture capital company program'' means the 
        program under chapter 305.
          (51) Non-federally regulated lender.--The term ``non-
        federally regulated lender'' means a business concern (other 
        than a small business lending company)--
                  (A) that is authorized by the Administrator to make 
                loans under the general business loan program;
                  (B) that is subject to regulation by a State; and
                  (C) the lending activities of which are not regulated 
                by any Federal banking authority.
          (52) Preferred lender.--The term ``preferred lender'' means a 
        lender participating in the preferred lenders program.
          (53) Preferred lenders program.--The term ``preferred lenders 
        program'' means the preferred lenders program carried out under 
        section 10332(f)(3) of this title.
          (54) Premier certified lenders program.--The term ``premier 
        certified lenders program'' means the program under section 
        33108 of this title.
          (55) PRIME program.--The term ``PRIME program'' means the 
        program under chapter 401.
          (56) Private disaster assistance program.--The term ``private 
        disaster assistance program'' means the program under chapter 
        215.
          (57) Procuring agency.--The term ``procuring agency'' means a 
        Federal agency that has procurement power.
          (58) Public or private organization for the disabled.--The 
        term ``public or private organization for the disabled'' means 
        an organization--
                  (A) that is organized under the laws of the United 
                States or of a State;
                  (B) that is operated in the interest of disabled 
                individuals;
                  (C) the net income of which does not inure in whole 
                or in part to the benefit of any shareholder or other 
                individual;
                  (D) that complies with any applicable occupational 
                health and safety standard prescribed by the Secretary 
                of Labor; and
                  (E) that, in the production of commodities and in the 
                provision of services during any fiscal year in which 
                the organization received financial assistance under 
                the general business loan program, employs disabled 
                individuals for not less than 75 percent of the man-
                hours required for the production or provision of the 
                commodities or services.
          (59) Qualified census tract.--The term ``qualified census 
        tract'' has the meaning given the term in section 
        42(d)(5)(C)(ii) of the Internal Revenue Code of 1986 (26 U.S.C. 
        42(d)(5)(C)(ii)).
          (60) Qualified employee trust.--The term ``qualified employee 
        trust'' has the meaning given the term in section 20509(a) of 
        this title.
          (61) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given the term in section 25301 of this title.
          (62) Qualified indian tribe.--The term ``qualified Indian 
        tribe'' means an Indian tribe (as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)) that owns and controls 100 percent of a small 
        business concern.
          (63) Qualified nonmetropolitan county.--The term ``qualified 
        nonmetropolitan county'' has the meaning given the term in 
        section 25301 of this title.
          (64) Redesignated area.--The term ``redesignated area'' has 
        the meaning given the term in section 25301 of this title.
          (65) Renewable energy system.--The term ``renewable energy 
        system'' means a system of energy derived from--
                  (A) a wind, solar, biomass (including biodiesel), or 
                geothermal source; or
                  (B) hydrogen derived from biomass or water using an 
                energy source described in subparagraph (A).
          (66) Renewable fuel capital investment pilot program.--The 
        term ``renewable fuel capital investment pilot program'' means 
        the program under chapter 307.
          (67) Reservist.--The term ``reservist'' means a member of a 
        reserve component of the Armed Forces, as described in section 
        101 of title 10.
          (68) SCORE.--The term ``SCORE'' means the volunteer program 
        known as SCORE.
          (69) Service-disabled veteran.--The term ``service-disabled 
        veteran'' means a veteran with a disability that is service-
        connected (as defined in section 101 of title 38).
          (70) Simplified acquisition threshold.--The term ``simplified 
        acquisition threshold'' has the meaning given the term in 
        section 4 of the Office of Federal Procurement Policy Act (41 
        U.S.C. 403).
          (71) Small agricultural cooperative.--
                  (A) In general.--The term ``small agricultural 
                cooperative'' means an association (corporate or 
                otherwise) acting pursuant to the Agricultural 
                Marketing Act (12 U.S.C. 1141j) the size of which does 
                not exceed the size standard established by the 
                Administrator for other similar agricultural small 
                business concerns.
                  (B) Size determination.--In determining the size of 
                an association described in subparagraph (A), the 
                Administrator--
                          (i) shall regard the association as a 
                        business concern; and
                          (ii) shall not include the income or 
                        employees of any member shareholder of the 
                        association.
          (72) Small business competitiveness demonstration program.--
        The term ``small business competitiveness demonstration 
        program'' means the program under chapter 249.
          (73) Small business concern.--
                  (A) In general.--The term ``small business concern'' 
                means a business concern (including an agricultural 
                enterprise) that--
                          (i) is independently owned and operated; and
                          (ii) is not dominant in its field of 
                        operation.
                  (B) Inclusions.--Notwithstanding any other provision 
                of law, an agricultural enterprise that has annual 
                receipts (including receipts of its affiliates) not in 
                excess of $750,000 shall be deemed to be a small 
                business concern.
                  (C) Establishment of size standards.--
                          (i) In general.--In addition to the criteria 
                        specified in subparagraph (A), 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 title or any other law.
                          (ii) Additional criteria.--The standards 
                        described in clause (i) may use--
                                  (I) number of employees, dollar 
                                volume of business, net worth, net 
                                income, or a combination thereof; or
                                  (II) other appropriate factors.
                          (iii) Requirements for prescription of size 
                        standard.--Unless specifically authorized by 
                        statute, no Federal agency may prescribe a size 
                        standard for categorizing a business concern as 
                        a small business concern unless the proposed 
                        size standard--
                                  (I) is proposed after an opportunity 
                                for public notice and comment;
                                  (II) provides for determining--
                                          (aa) the size of a 
                                        manufacturing concern as 
                                        measured by the manufacturing 
                                        concern's average employment 
                                        based on employment during each 
                                        of the manufacturing concern's 
                                        pay periods for the preceding 
                                        12 months;
                                          (bb) the size of a business 
                                        concern providing services on 
                                        the basis of the annual average 
                                        gross receipts of the business 
                                        concern over a period of not 
                                        less than 3 years;
                                          (cc) the size of other 
                                        business concerns on the basis 
                                        of data over a period of not 
                                        less than 3 years; or
                                          (dd) other appropriate 
                                        factors; and
                                  (III) is approved by the 
                                Administrator.
                          (iv) Factors to be considered.--In 
                        establishing or approving a size standard under 
                        this subparagraph, the Administrator shall--
                                  (I) ensure that the size standard 
                                varies from industry to industry to the 
                                extent necessary to reflect the 
                                differing characteristics of the 
                                various industries; and
                                  (II) consider other factors that the 
                                Administrator considers to be relevant.
                          (v) Listing of additional size standards.--
                        The Administrator shall prescribe regulations 
                        to carry out this subparagraph. The regulations 
                        shall include a listing of all small business 
                        size standards prescribed by statute or by 
                        individual Federal agencies, identifying the 
                        programs or purposes to which the size 
                        standards apply.
          (74) 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; and
                  (B) the management and daily business operations of 
                which are controlled by--
                          (i) one or more service-disabled veterans; or
                          (ii) in the case of a veteran with permanent 
                        and severe disability, the spouse or permanent 
                        caregiver of the veteran.
          (75) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--The term ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the meaning given 
        the term in section 23101 of this title.
          (76) 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; and
                  (B) the management and daily business operations of 
                which are controlled by one or more veterans.
          (77) Small business concern owned and controlled by women.--
        The term ``small business concern owned and controlled by 
        women'' means a small business concern--
                  (A)(i) at least 51 percent of which is owned by one 
                or more women; or
                  (ii) in the case of a publicly owned business, at 
                least 51 percent of the stock of which is owned by one 
                or more women; and
                  (B) the management and daily business operations of 
                the business of which are controlled by one or more 
                women.
          (78) Small business development center.--The term ``small 
        business development center'' means a small business 
        development center that receives financial assistance under 
        chapter 271.
          (79) Small business development center program.--The term 
        ``small business development center program'' means the small 
        business development center program under chapter 271.
          (80) Small business investment company program.--The term 
        ``small business investment company program'' means the program 
        under chapter 303.
          (81) Small business lending company.--The term ``small 
        business lending company'' means a business concern--
                  (A) that is authorized by the Administrator to make 
                loans under the general business loan program; and
                  (B) the lending activities of which are not subject 
                to regulation by any Federal or State regulatory 
                agency.
          (82) Socially and economically disadvantaged individual.--The 
        term ``socially and economically disadvantaged individual'' has 
        the meaning given the term in section 23101 of this title.
          (83) Socially disadvantaged individual.--The term ``socially 
        disadvantaged individual'' has the meaning given the term in 
        section 23101 of this title.
          (84) Surety bond guarantee program.--The term ``surety bond 
        guarantee program'' means the program under chapter 321.
          (85) United states.--The term ``United States'' includes the 
        States, the District of Columbia, Puerto Rico, and the 
        territories and possessions of the United States.
          (86) Veteran.--The term ``veteran'' has the meaning given the 
        term in section 101 of title 38.
          (87) Women's business center.--The term ``women's business 
        center'' means a women's business center operating under 
        chapter 273.
          (88) Women's business center program.--The term ``women's 
        business center program'' means the women's business center 
        program under chapter 273.
Sec. 10102. Declarations
  All declarations of findings, purposes, or policies enacted in 
connection with the enactment of any source law for this title, as 
originally enacted, or in connection with any amendment to this title, 
are incorporated in this title by reference.

               CHAPTER 103--SMALL BUSINESS ADMINISTRATION

                       Subchapter I--Organization

Sec.
10301.  Establishment.
10302.  Administrator.
10303.  Deputy Administrator.
10304.  Associate Administrators.
10305.  Personnel.
10306.  Small Business Investment Division.
10307.  Office of Advocacy.
10308.  Division of Program Certification and Eligibility.
10309.  Office of International Trade.
10310.  Office of Rural Affairs.
10311.  Office of Women's Business Ownership.
10312.  Small Business and Agriculture Regulatory Enforcement Ombudsman; 
          regional small business regulatory fairness boards.
10313.  Office of Veterans Business Development.
10314.  Task force on purchases from the blind and severely disabled.
10315.  Advisory committees.
10316.  Bureau of PCLP Oversight.

                        Subchapter II--Functions

10331.  General powers.
10332.  Financial management.
10333.  Small business economic database.
10334.  Small business computer security and education program.
10335.  General policies governing the granting and denial of 
          applications.
10336.  Retention of records.
10337.  Consultation and cooperation with other Federal agencies.
10338.  Representation of status as small business concern.
10339.  Criminal background checks.

                       Subchapter I--Organization

Sec. 10301. Establishment
  (a) In General.--There is established to carry out the authorities 
committed to the Administrator under this title and other law an agency 
to be known as the Small Business Administration.
  (b) Independent Establishment.--The Administration shall be under the 
general direction and supervision of the President and shall not be 
affiliated with or be within any other Federal agency.
  (c) Offices.--The principal office of the Administration shall be 
located in the District of Columbia. The Administrator may establish 
such branch and regional offices in other places in the United States 
as the Administrator may determine.
Sec. 10302. Administrator
  (a) In General.--The management of the Administration shall be vested 
in an Administrator who shall be appointed from civilian life by the 
President, by and with the advice and consent of the Senate, and who 
shall be a person of outstanding qualifications known to be familiar 
and sympathetic with small business needs and problems.
  (b) Full-Time Position.--The Administrator shall not engage in any 
business, vocation, or employment other than that of serving as 
Administrator.
Sec. 10303. Deputy Administrator
  (a) In General.--The President may appoint a Deputy Administrator of 
the Administration, by and with the advice and consent of the Senate.
  (b) Duties.--The Deputy Administrator shall be Acting Administrator 
of the Administration during the absence or disability of the 
Administrator or in the event of a vacancy in the office of 
Administrator.
Sec. 10304. Associate Administrators
  (a) In General.--The Administrator may appoint 5 Associate 
Administrators (including the Associate Administrator specified in 
10306 of this title) to assist in the execution of the functions vested 
in the Administrator.
  (b) Associate Administrator for Veterans Business Development.--
          (1) In general.--One Associate Administrator appointed under 
        subsection (a) shall be the Associate Administrator for 
        Veterans Business Development.
          (2) Position.--The Associate Administrator for Veterans 
        Business Development shall be an appointee in the Senior 
        Executive Service.
          (3) Reporting.--The Associate Administrator for Veterans 
        Business Development shall report to and be responsible 
        directly to the Administrator.
          (4) Duties.--The Associate Administrator for Veterans 
        Business Development shall administer the Office of Veterans 
        Business Development established under section 10313 of this 
        title.
  (c) Associate Administrator for Minority Small Business and Capital 
Ownership Development.--
          (1) In general.--One of the Associate Administrators shall be 
        designated at the time of appointment as the Associate 
        Administrator for Minority Small Business and Capital Ownership 
        Development.
          (2) Position.--The Associate Administrator for Minority Small 
        Business and Capital Ownership Development shall be an employee 
        in the competitive service or a career appointee in the Senior 
        Executive Service, and the position of Associate Administrator 
        for Minority Small Business and Capital Ownership Development 
        shall be a career reserved position.
          (3) Duties.--
                  (A) Formulation and coordination of policies.--The 
                Associate Administrator for Minority Small Business and 
                Capital Ownership Development shall be responsible for 
                formulating and coordinating policies relating to 
                Federal assistance to small business concerns eligible 
                for assistance under section 20504 of this title and 
                small business concerns eligible to receive contracts 
                under the business development program.
                  (B) Business development program.--The Associate 
                Administrator for Minority Small Business and Capital 
                Ownership Development shall be responsible to the 
                Administrator for the formulation, execution, and 
                management of the business development program 
                (including the making of determinations under 
                paragraphs (8), (15), (16), and (17) of section 23101 
                of this title and sections 23310, 23312(a)(1), and 
                23318(g) of this title), under the supervision of the 
                Administrator.
  (d) 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--
                  (A) report to an official who is not more than one 
                level below the Office of the Administrator; and
                  (B) 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 that title relating to classification and 
                General Schedule pay rates, but at a rate not less than 
                the rate of pay for a position classified above GS-15 
                pursuant to section 5108 of title 5.
          (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.
                  (B) Duties included.--Duties of the position shall 
                include--
                          (i) recommending the annual budget for the 
                        small business development center program;
                          (ii) reviewing the annual budgets submitted 
                        by each applicant under the small business 
                        development center program;
                          (iii) establishing appropriate funding levels 
                        for applicants under the small business 
                        development center program;
                          (iv) selecting applicants to participate in 
                        the small business development center program;
                          (v) implementing chapter 271;
                          (vi) maintaining a clearinghouse to provide 
                        for the dissemination and exchange of 
                        information between small business development 
                        centers; and
                          (vii) conducting audits of recipients of 
                        grants under chapter 241.
          (3) Consultation.--
                  (A) In general.--In carrying out the duties described 
                in this subsection, the Associate Administrator for 
                Small Business Development Centers shall confer with 
                and seek the advice of the National Small Business 
                Development Center Advisory Board and Administration 
                officials in areas served by the small business 
                development centers.
                  (B) Responsibility.--Notwithstanding subparagraph 
                (A), 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 Administration officials described in subparagraph 
                (A).
Sec. 10305. Personnel
  (a) In General.--The Administrator may, subject to the civil service 
and classification laws--
          (1) select, employ, appoint, and fix the compensation of such 
        officers, employees, attorneys, and agents as are necessary to 
        carry out this title;
          (2) define their authority and duties; and
          (3) pay the costs of qualification of certain of them as 
        notaries public.
  (b) Individuals Employed To Render Temporary Services in Connection 
With a Disaster.--
          (1) In general.--The Administrator may pay the transportation 
        expenses and per diem in lieu of subsistence expenses, in 
        accordance with subchapter I of chapter 57 of title 5, for 
        travel of any individual employed by the Administration to 
        render temporary services not in excess of 6 months in 
        connection with a disaster from place of appointment to, and 
        while at, the disaster area and any other temporary posts of 
        duty and return on completion of the assignment.
          (2) Extension of term.--The Administrator may extend the six-
        month limitation under paragraph (1) for an additional 6 months 
        if the Administrator determines that the extension is necessary 
        to continue efficient disaster loan making activities.
  (c) Experts and Consultants.--
          (1) In general.--To such extent as the Administrator finds 
        necessary to carry out this title, the Administrator may 
        procure the temporary (not in excess of one year) or 
        intermittent services of experts or consultants (including 
        stenographic reporting services) by contract or appointment.
          (2) Inapplicability of other law.--Service procured under 
        paragraph (1)--
                  (A) shall be without regard to the civil service and 
                classification laws; and
                  (B) except in the case of stenographic reporting 
                services by an organization, shall be without regard to 
                section 3709 of the Revised Statutes (41 U.S.C. 5).
          (3) Compensation.--An individual employed under paragraph 
        (1)--
                  (A) may be compensated at a rate not in excess of the 
                daily equivalent of the maximum rate payable under 
                section 5376 of title 5, including travel time; and
                  (B) while away from the individual's home or regular 
                place of business, may be allowed travel expenses 
                (including per diem in lieu of subsistence) as 
                authorized by section 5703 of title 5.
Sec. 10306. Small Business Investment Division
  (a) Establishment.--There is established in the Administration a 
division to be known as the Small Business Investment Division.
  (b) Associate Administrator.--The Small Business Investment Division 
shall be headed by an Associate Administrator appointed by the 
Administrator.
  (c) Compensation.--The Associate Administrator shall receive 
compensation at the rate provided by law for other Associate 
Administrators of the Administration.
Sec. 10307. Office of Advocacy
  (a) Definitions.--In this section:
          (1) Chief counsel.--The term ``Chief Counsel'' means the 
        Chief Counsel for Advocacy appointed under subsection (c).
          (2) Office.--The term ``Office'' means the Office of Advocacy 
        established by subsection (b).
  (b) Establishment.--There is established within the Administration an 
Office of Advocacy.
  (c) Chief Counsel for Advocacy.--The management of the Office shall 
be vested in a Chief Counsel for Advocacy, who shall be appointed from 
civilian life by the President, by and with the advice and consent of 
the Senate.
  (d) Primary Functions.--The primary functions of the Chief Counsel 
shall be to--
          (1) examine the role of small business in the American 
        economy and the contribution that small business can make in 
        improving competition, encouraging economic and social mobility 
        for all citizens, restraining inflation, spurring production, 
        expanding employment opportunities, increasing productivity, 
        promoting exports, stimulating innovation and entrepreneurship, 
        and providing an avenue through which new and untested products 
        and services can be brought to the marketplace;
          (2) assess the effectiveness of Federal subsidy and 
        assistance programs for small business and the desirability of 
        reducing the emphasis on such programs and increasing the 
        emphasis on general assistance programs designed to benefit all 
        small business concerns;
          (3)(A) measure the direct costs and other effects of 
        government regulation on small business concerns; and
          (B) make legislative and nonlegislative proposals for 
        eliminating excessive or unnecessary regulation of small 
        business concerns;
          (4) determine the impact of the tax structure on small 
        business concerns and make legislative and other proposals for 
        altering the tax structure to enable all small business 
        concerns to realize their potential for contributing to the 
        improvement of the Nation's economic well-being;
          (5) study the ability of financial markets and institutions 
        to meet small business credit needs and determine the impact of 
        government demands for credit on small business concerns;
          (6) determine financial resource availability and recommend 
        methods for delivery of financial assistance to minority 
        enterprises, including methods for--
                  (A) securing equity capital;
                  (B) generating markets for goods and services;
                  (C) providing effective business education, more 
                effective management and technical assistance, and 
                training; and
                  (D) providing assistance in complying with Federal, 
                State, and local law;
          (7) evaluate the efforts of Federal agencies, business, and 
        industry to assist minority business concerns;
          (8) make such recommendations as may be appropriate to assist 
        the development and strengthening of minority and other small 
        business concerns;
          (9)(A) recommend specific measures for creating an 
        environment in which all businesses will have the opportunity 
        to compete effectively and expand to their full potential; and
          (B) ascertain the common reasons, if any, for small business 
        successes and failures;
          (10)(A) determine the desirability of developing a set of 
        rational, objective criteria to be used to define small 
        business; and
          (B) develop such criteria, if appropriate; and
          (11)(A) evaluate the efforts of each Federal agency, and of 
        private industry, to assist small business concerns owned and 
        controlled by veterans and small business concerns owned and 
        controlled by service-disabled veterans;
          (B) provide statistical information on the use of such 
        programs by small business concerns owned and controlled by 
        veterans and small business concerns owned and controlled by 
        service-disabled veterans; and
          (C) make appropriate recommendations to the Administrator and 
        to Congress to promote the establishment and growth of small 
        business concerns owned and controlled by veterans and small 
        business concerns owned and controlled by service-disabled 
        veterans.
  (e) Duties To Be Performed on a Continuing Basis.--
          (1) In general.--The Chief Counsel shall perform the duties 
        described in this subsection on a continuing basis.
          (2) Complaints, criticisms, and suggestions.--The Chief 
        Counsel shall serve as a focal point for the receipt of 
        complaints, criticisms, and suggestions concerning the policies 
        and activities of the Administration and any other Federal 
        agency that affects small business concerns.
          (3) Counseling.--The Chief Counsel shall counsel small 
        business concerns on how to resolve questions and problems 
        concerning the relationship of the small business to the 
        Federal Government.
          (4) Proposals for change.--The Chief Counsel shall--
                  (A) develop proposals for changes in the policies and 
                activities of any Federal agency that will better 
                fulfill the purposes of subtitle II; and
                  (B) communicate the proposals to the appropriate 
                Federal agencies.
          (5) Representation of views and interests.--The Chief Counsel 
        shall represent the views and interests of small business 
        concerns before other Federal agencies the policies and 
        activities of which may affect small business.
          (6) Dissemination of information.--The Chief Counsel shall 
        enlist the cooperation and assistance of public and private 
        agencies, businesses, and other organizations in 
        disseminating--
                  (A) information about the programs and services 
                provided by the Federal Government that are of benefit 
                to small business concerns; and
                  (B) information on how small business concerns can 
                participate in or make use of those programs and 
                services.
  (f) Rural Tourism Training Program.--In conjunction with the Office 
of Rural Affairs and appropriate personnel designated by each district 
office of the Administration, the Chief Counsel shall conduct training 
sessions on the types of Federal assistance available for the 
development of rural small business concerns engaged in tourism and 
tourism-related activities.
  (g) Powers.--In carrying out this section, the Chief Counsel may--
          (1) employ and fix the compensation of such additional staff 
        personnel as the Chief Counsel considers necessary, without 
        regard to the provisions of title 5, governing appointments in 
        the competitive service, and without regard to chapter 51 or 
        subchapter III of chapter 53 of that title relating to 
        classification and General Schedule pay rates but at rates not 
        in excess of the lowest rate for GS-15 of the General Schedule, 
        except that not more than 14 staff personnel at any one time 
        may be employed and compensated at a rate not in excess of GS-
        15, step 10, of the General Schedule;
          (2) procure temporary and intermittent services to the same 
        extent as is authorized by section 3109 of title 5;
          (3) consult--
                  (A) with experts and authorities in the fields of 
                small business investment, venture capital, and 
                investment and commercial banking and with other 
                comparable lending institutions involved in the 
                financing of business;
                  (B) with individuals with regulatory, legal, 
                economic, or financial expertise, including members of 
                the academic community; and
                  (C) with individuals who generally represent the 
                public interest;
          (4)(A) use the services of the National Advisory Council 
        established under section 10315 of this title; and
          (B) in accordance with that section, appoint such other 
        advisory boards or committees as the Chief Counsel considers 
        reasonably appropriate and necessary to carry out this section; 
        and
          (5) hold hearings and sit and act at such times and places as 
        the Chief Counsel considers advisable.
  (h) Assistance of Federal Agencies.--Each Federal agency shall 
furnish the Chief Counsel such reports and other information as the 
Chief Counsel considers necessary to carry out this section.
  (i) Reports.--The Chief Counsel may from time to time prepare and 
publish such reports as the Chief Counsel considers appropriate.
Sec. 10308. Division of Program Certification and Eligibility
  (a) Definitions.--In this section:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Minority 
        Small Business and Capital Ownership Development.
          (2) Director.--The term ``Director'' means the Director of 
        the Division.
          (3) Division.--The term ``Division'' means the Division of 
        Program Certification and Eligibility established by subsection 
        (b).
  (b) Establishment.--There is established in the Office of Minority 
Small Business and Capital Ownership Development a Division of Program 
Certification and Eligibility.
  (c) Director.--The Division shall be headed by a Director, who shall 
report directly to the Associate Administrator.
  (d) Field Offices.--The Director shall establish field offices within 
such regional offices of the Administration as are necessary to perform 
efficiently the functions and responsibilities of the Director.
  (e) Duties.--The duties of the Director are--
          (1) to receive, review, and evaluate applications for 
        certification under the business development program;
          (2) to advise a business development program applicant within 
        15 days after receipt of an application whether the application 
        is complete and suitable for evaluation and, if not, what 
        matters must be rectified;
          (3) to make recommendations on such applications to the 
        Associate Administrator;
          (4) to review and evaluate financial statements and other 
        submissions from small business concerns participating in the 
        business development program to ascertain continued eligibility 
        to receive subcontracts under the business development program;
          (5) to make a request for the initiation of termination or 
        graduation proceedings, as appropriate, to the Associate 
        Administrator;
          (6) to make recommendations to the Associate Administrator 
        concerning protests from applicants that are denied admission 
        to the business development program;
          (7) to decide protests regarding the status of a small 
        business concern as a small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals for purposes of any program or activity conducted 
        under chapter 243 or any other provision of Federal law that 
        refers to that chapter for a definition of eligibility for any 
        program; and
          (8) to implement such policy directives as are issued by the 
        Associate Administrator under section 23326 of this title 
        regarding, among other things, the geographic distribution of 
        small business concerns to be admitted to the business 
        development program and the industrial makeup of those small 
        business concerns.
  (f) Decisions on Protests.--
          (1) In general.--A decision under subsection (e)(7) shall--
                  (A) be made available to the protestor, the protested 
                party, the contracting officer (if not the protestor), 
                and all other parties to the proceeding, and published 
                in full text; and
                  (B) include findings of fact and conclusions of law, 
                with specific reasons supporting the findings or 
                conclusions, on each material issue of fact and law of 
                decisional significance regarding the disposition of 
                the protest.
          (2) Precedential value of prior decisions.--A decision under 
        subsection (e)(7) that was issued before September 4, 1992, 
        shall not have value as precedent in deciding any subsequent 
        protest until the decision is published in full text.
Sec. 10309. Office of International Trade
  (a) Definition of Office.--In this section, the term ``Office'' means 
the Office of International Trade.
  (b) Establishment of Office.--There is established within the 
Administration an Office of International Trade, which shall implement 
the programs under this section.
  (c) Distribution Network; Marketing of Programs and Dissemination of 
Information; Bilingual Job Applicants.--
          (1) In general.--The Office, working in close cooperation 
        with the Department of Commerce and other Federal agencies, 
        small business development centers engaged in export promotion 
        efforts, regional and local Administration offices, the small 
        business community, and State and local export promotion 
        programs, shall--
                  (A) assist in developing a distribution network for 
                existing trade promotion, trade finance, trade 
                adjustment, trade remedy assistance and trade data 
                collection programs through use of the Administration's 
                regional and local offices and the small business 
                development center network;
                  (B) assist in the aggressive marketing of the 
                programs described in subparagraph (A) and the 
                dissemination of marketing information, including 
                computerized marketing data, to the small business 
                community; and
                  (C) give preference in hiring or approving the 
                transfer of any employee into the Office or to a 
                position described in subsection (d)(2)(H) to otherwise 
                qualified applicants who are fluent in a language in 
                addition to English.
          (2) Bilingual employees.--Bilingual employees hired or 
        transferred under paragraph (1)(C)--
                  (A) shall accompany foreign trade missions if 
                designated by the director of the Office; and
                  (B) shall be available as needed to translate 
                documents, interpret conversations, and facilitate 
                multilingual transactions including providing referral 
                lists for translation services if required.
  (d) Promotion of Sales Opportunities for Goods and Services Abroad.--
          (1) In general.--The Office shall promote sales opportunities 
        for small business goods and services abroad.
          (2) Activities.--To accomplish the objective stated in 
        paragraph (1), the Office shall--
                  (A) in cooperation with the Department of Commerce, 
                other Federal agencies, regional and local 
                Administration offices, the small business development 
                center network, and State programs, develop a mechanism 
                for--
                          (i) identifying subsectors of the small 
                        business community with strong export 
                        potential;
                          (ii) identifying areas of demand in foreign 
                        markets;
                          (iii) prescreening foreign buyers for 
                        commercial and credit purposes; and
                          (iv) assisting in increasing international 
                        marketing by disseminating relevant information 
                        regarding market leads, linking potential 
                        sellers and buyers, and catalyzing the 
                        formation of joint ventures, where appropriate;
                  (B) in cooperation with the Department of Commerce, 
                actively assist small business concerns in the 
                formation and utilization of export trading companies, 
                export management companies and research and 
                development pools authorized under division H of 
                subtitle II;
                  (C) work in conjunction with other Federal agencies, 
                regional and local offices of the Administration, the 
                small business development center network, and the 
                private sector to identify and publicize existing 
                translation services, including those available through 
                colleges and universities participating in the small 
                business development center program;
                  (D) work closely with the Department of Commerce and 
                other relevant Federal agencies to--
                          (i)(I) collect, analyze and periodically 
                        update relevant data regarding the small 
                        business share of United States exports and the 
                        nature of State exports (including the 
                        production of Gross State Product figures); and
                          (II) disseminate those data to the public and 
                        to Congress;
                          (ii) make recommendations to the Secretary of 
                        Commerce and to Congress regarding revision of 
                        the North American Industry Classification 
                        System codes to encompass industries currently 
                        overlooked and to create North American 
                        Industry Classification System codes for export 
                        trading companies and export management 
                        companies;
                          (iii) improve the utility and accessibility 
                        of existing export promotion programs for small 
                        business concerns; and
                          (iv) increase the accessibility of the Export 
                        Trading Company contact facilitation service of 
                        the Department of Commerce;
                  (E) make available to the small business community 
                information regarding conferences on exporting and 
                international trade sponsored by the public and private 
                sectors;
                  (F) provide small business concerns with access to 
                current and complete export information by--
                          (i) making available, at the Administration's 
                        regional offices through cooperation with the 
                        Department of Commerce, export information, 
                        including the worldwide information and trade 
                        system and world trade data reports;
                          (ii) maintaining a current list of financial 
                        institutions that finance export operations;
                          (iii) maintaining a current directory of all 
                        Federal, regional, State and private sector 
                        programs that provide export information and 
                        assistance to small business concerns; and
                          (iv) preparing and publishing such reports as 
                        the Office determines to be necessary 
                        concerning market conditions, sources of 
                        financing, export promotion programs, and other 
                        information pertaining to the needs of 
                        exporting small business concerns so as to 
                        ensure that the maximum information is made 
                        available to small business concerns in a 
                        readily usable form;
                  (G) in cooperation with the Department of Commerce, 
                encourage greater participation by small business 
                concerns in trade fairs, shows, missions, and other 
                domestic and overseas export development activities of 
                the Department of Commerce; and
                  (H) facilitate decentralized delivery of export 
                information and assistance to small business concerns 
                by--
                          (i) assigning full-time export development 
                        specialists to each Administration regional 
                        office; and
                          (ii) assigning primary responsibility for 
                        export development to one person in each 
                        district office.
          (3) Duties of export development specialists and district 
        personnel assigned primary responsibility for export 
        development.--An export development specialist assigned to an 
        Administration regional office under paragraph (2)(H)(i) and a 
        person in a district assigned primary responsibility for export 
        development shall--
                  (A) assist small business concerns in obtaining 
                export information and assistance from other Federal 
                agencies;
                  (B) maintain a current directory of all programs that 
                provide export information and assistance to small 
                business concerns in the region;
                  (C) encourage financial institutions to develop and 
                expand programs for export financing;
                  (D) provide advice to Administration personnel 
                involved in granting loans, loan guarantees, and 
                extensions and revolving lines of credit and providing 
                other forms of assistance to small business concerns 
                engaged in exporting; and
                  (E) within 180 days after being appointed as an 
                export development specialist, participate in a 
                training program designed by the Administrator, in 
                conjunction with the Department of Commerce and other 
                Federal agencies, to study export programs and to 
                examine the needs of small business concerns for export 
                information and assistance.
  (e) Access to Export and Pre-export Financing Programs.--
          (1) In general.--The Office shall work in cooperation with 
        the Export-Import Bank of the United States, the Department of 
        Commerce, other Federal agencies, and the States to develop a 
        program through which export specialists in the regional 
        offices of the Administration, regional and local loan 
        officers, and small business development center personnel can 
        facilitate the access of small business concerns to relevant 
        export financing programs of the Export-Import Bank of the 
        United States and to export and pre-export financing programs 
        available from the Administration and the private sector.
          (2) Activities.--To accomplish the goal stated in paragraph 
        (1), the Office shall work in cooperation with the Export-
        Import Bank of the United States and the small business 
        community, including small business trade associations, to--
                  (A) aggressively market existing Administration 
                export financing and pre-export financing programs;
                  (B) identify financing available under various 
                programs of the Export-Import Bank of the United 
                States, and aggressively market those programs to small 
                business concerns;
                  (C) assist in the development of financial 
                intermediaries and facilitate the access of those 
                intermediaries to existing financing programs;
                  (D) promote greater participation by private 
                financial institutions, particularly those institutions 
                already participating in loan programs under subtitle 
                II, in export finance; and
                  (E) provide for the participation of appropriate 
                Administration personnel in training programs conducted 
                by the Export-Import Bank of the United States.
  (f) Trade Proceedings.--The Office shall--
          (1) work in cooperation with other Federal agencies and the 
        private sector to counsel small business concerns with respect 
        to initiating and participating in any proceedings relating to 
        the administration of the United States trade laws; and
          (2) work with the Department of Commerce, the Office of the 
        United States Trade Representative, and the International Trade 
        Commission to increase access to trade remedy proceedings for 
        small business concerns.
Sec. 10310. Office of Rural Affairs
  (a) Definition of Office.--In this section, the term ``Office'' means 
the Office of Rural Affairs.
  (b) Establishment of Office.--There is established in the 
Administration an Office of Rural Affairs.
  (c) Director.--The Office shall be headed by a director appointed by 
the Administrator.
  (d) Functions.--The Office shall--
          (1) strive to achieve an equitable distribution of the 
        financial assistance available from the Administration for 
        small business concerns located in rural areas;
          (2) to the extent practicable, compile annual statistics on 
        rural areas, including statistics concerning the population, 
        poverty, job creation and retention, unemployment, business 
        failures, and business startups;
          (3) provide information to industries, organizations, and 
        State and local governments concerning the assistance available 
        to rural small business concerns through the Administration and 
        through other Federal agencies;
          (4) provide information to industries, organizations, 
        educational institutions, and State and local governments 
        concerning programs administered by private organizations, 
        educational institutions, and Federal, State, and local 
        governments that improve the economic opportunities of rural 
        citizens; and
          (5) work with the United States National Tourism Organization 
        to assist small business concerns in rural areas with tourism 
        promotion and development.
Sec. 10311. Office of Women's Business Ownership
  (a) Definitions.--In this section:
          (1) Assistant administrator.--The term ``Assistant 
        Administrator'' means the Assistant Administrator appointed 
        under subsection (c).
          (2) Office.--The term ``Office'' means the Office of Women's 
        Business ownership established by subsection (b).
  (b) Establishment of Office.--There is established within the 
Administration an Office of Women's Business Ownership.
  (c) Assistant Administrator.--
          (1) In general.--The Office shall be administered by an 
        Assistant Administrator, who shall be appointed by the 
        Administrator.
          (2) Qualification.--The position of Assistant Administrator 
        shall be a Senior Executive Service position under section 
        3132(a)(2) of title 5. The Assistant Administrator shall serve 
        as a noncareer appointee (as defined in section 3132(a)(7) of 
        that title).
  (d) Duties.--The Assistant Administrator shall--
          (1) administer the Administration's programs for the 
        development of women's business enterprises (as defined in 
        section 40301 of this title);
          (2) administer the programs and services of the Office to 
        assist women entrepreneurs in the areas of--
                  (A) starting and operating a small business concern;
                  (B) development of management and technical skills;
                  (C) seeking Federal procurement opportunities; and
                  (D) increasing the opportunity for access to capital;
          (3) administer and manage the women's business center 
        program;
          (4) recommend the annual administrative and program budgets 
        for the Office (including the budget for the women's business 
        center program);
          (5) establish appropriate funding levels for the Office;
          (6) review the annual budgets submitted by each applicant for 
        the women's business center program;
          (7) select applicants to participate in the women's business 
        center program;
          (8) implement chapter 273;
          (9) maintain a clearinghouse to provide for the dissemination 
        and exchange of information between women's business centers;
          (10) serve as the vice chairperson of the Interagency 
        Committee on Women's Business Enterprise;
          (11) serve as liaison for the National Women's Business 
        Council; and
          (12) advise the Administrator on appointments to the Women's 
        Business Council.
  (e) Consultation.--In carrying out the duties described in paragraphs 
(2) to (12) of subsection (d), the Assistant Administrator shall confer 
with and seek the advice of the Administration officials in areas 
served by the women's business centers.
Sec. 10312. Small Business and Agriculture Regulatory Enforcement 
                    Ombudsman; regional small business regulatory 
                    fairness boards
  (a) Definitions.--In this section:
          (1) Board.--The term ``Board'' means a regional small 
        business regulatory fairness board established under subsection 
        (e).
          (2) Ombudsman.--The term ``Ombudsman'' means the Small 
        Business and Agriculture Regulatory Enforcement Ombudsman 
        designated under subsection (b).
  (b) Small Business and Agriculture Regulatory Enforcement 
Ombudsman.--The Administrator shall designate a Small Business and 
Agriculture Regulatory Enforcement Ombudsman, who shall report directly 
to the Administrator, using personnel of the Administration to the 
extent practicable.
  (c) Duties.--The Ombudsman shall--
          (1) work with each Federal agency with regulatory authority 
        over small business concerns to ensure that small business 
        concerns that receive or are subject to an audit, on-site 
        inspection, compliance assistance effort, or other enforcement-
        related communication or contact by Federal agency personnel 
        are provided with a means by which to comment on the 
        enforcement activity conducted by those personnel;
          (2)(A) establish means by which to--
                  (i) receive comments from a small business concern 
                regarding actions by Federal agency employees 
                conducting compliance or enforcement activities with 
                respect to the small business concern; and
                  (ii) refer comments to the Inspector General of the 
                Federal agency in the appropriate circumstances; and
          (B) otherwise seek to maintain the identity of the person and 
        small business concern making such comments on a confidential 
        basis to the same extent as employee identities are protected 
        under section 7 of the Inspector General Act of 1978 (5 U.S.C. 
        App.);
          (3) based on substantiated comments received from small 
        business concerns and the Boards, after having provided each 
        Federal agency described in paragraph (1) an opportunity to 
        comment on drafts of the report, annually submit to Congress 
        and those Federal agencies a report that--
                  (A) evaluates the enforcement activities of Federal 
                agency personnel; and
                  (B) includes--
                          (i) a rating of the responsiveness to small 
                        business concerns of the various regional and 
                        program offices of each such Federal agency; 
                        and
                          (ii) a section in which any such Federal 
                        agency may make such comments made by the 
                        Federal agency to drafts of the report as are 
                        not addressed by the Ombudsman in the final 
                        draft; and
          (4) coordinate, and annually submit to the Administrator and 
        to the heads of Federal agencies described in paragraph (1) a 
        report on, the activities, findings, and recommendations of the 
        Boards.
  (d) Federal Agencies Other Than the Administration.--
          (1) Actions to ensure compliance.--Federal agencies other 
        than the Administration shall assist the Ombudsman and take 
        actions as necessary to ensure compliance with this section.
          (2) Effect of section.--Nothing in this section replaces or 
        diminishes the activities of any ombudsman or similar office in 
        any Federal agency.
  (e) Regional Small Business Regulatory Fairness Boards.--
          (1) Establishment.--The Administrator shall establish a small 
        business regulatory fairness board in each regional office of 
        the Administration.
          (2) Membership.--
                  (A) In general.--A Board shall consist of 5 members 
                who are owners, operators, or officers of small 
                business concerns, appointed by the Administrator, 
                after receiving the recommendations of the chair and 
                ranking minority member of the Committee on Small 
                Business and Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
                  (B) Political affiliation.--Not more than 3 of the 
                members of a Board shall be of the same political 
                party.
                  (C) Government officers or employees.--No member of a 
                Board shall be an officer or employee of the Federal 
                Government in the executive branch or in Congress.
                  (D) Term.--A member of a Board shall serve at the 
                pleasure of the Administrator for a term of 3 years or 
                less.
                  (E) Compensation.--A member of a Board shall serve 
                without compensation, except that a member shall be 
                allowed travel expenses, including per diem in lieu of 
                subsistence, at rates authorized for employees of 
                agencies under subchapter I of chapter 57 of title 5 
                while away from the home or regular place of business 
                of the member in the performance of services for the 
                Board.
          (3) Chair.--The Administrator shall select a chair from among 
        the members of a Board, who shall serve at the pleasure of the 
        Administrator for not more than one year as chair.
          (4) Quorum.--A majority of the members of a Board shall 
        constitute a quorum for the conduct of business, but a lesser 
        number may hold hearings.
          (5) Duties.--A Board shall--
                  (A) meet at least annually to advise the Ombudsman on 
                matters of concern to small business concerns relating 
                to the enforcement activities of Federal agencies;
                  (B) report to the Ombudsman on substantiated 
                instances of excessive enforcement actions of Federal 
                agencies against small business concerns, including any 
                findings or recommendations of the Board as to Federal 
                agency enforcement policy or practice; and
                  (C) prior to publication, provide comment on the 
                annual report of the Ombudsman prepared under 
                subsection (c).
          (6) Powers.--
                  (A) Hearings; collection of information.--A Board may 
                hold hearings and collect information as appropriate 
                for carrying out this section.
                  (B) Mail.--A Board may use the United States mails in 
                the same manner and under the same conditions as other 
                Federal agencies.
                  (C) Acceptance of donations.--A Board may accept 
                donations of services necessary to conduct its 
                business, so long as the donations and their sources 
                are disclosed by the Board.
Sec. 10313. Office of Veterans Business Development
  (a) Definition of Associate Administrator.--In this section, the term 
``Associate Administrator'' means the Associate Administrator for 
Veterans Business Development under section 10304(b) of this title.
  (b) Office of Veterans Business Development.--There is established in 
the Administration an Office of Veterans Business Development, which 
shall be administered by the Associate Administrator.
  (c) Duties.--The Associate Administrator--
          (1) 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; and
          (2) shall act as an ombudsman for full consideration of 
        veterans in all programs of the Administration.
Sec. 10314. Task force on purchases from the blind and severely 
                    disabled
  (a) Establishment.--There is established within the Administration a 
task force on purchases from the blind and severely disabled.
  (b) Membership.--The task force shall consist of one representative 
of the small business community appointed by the Administrator and one 
individual knowledgeable in the affairs of or experienced in the work 
of sheltered workshops appointed by the Executive Director of the 
Committee for Purchase from the Blind and Other Severely Disabled 
established under the first section of the Act of June 25, 1938 (41 
U.S.C. 46).
  (c) Duties.--The task force shall meet at least once every 6 months 
for the purpose of--
          (1) reviewing the award of contracts under section 25103 of 
        this title; and
          (2) recommending to the Administrator such administrative or 
        statutory changes as the task force considers appropriate.
Sec. 10315. Advisory committees
  (a) In General.--The Administrator shall--
          (1) establish such advisory committees as are necessary to 
        achieve the purposes of this subtitle and subtitles II and III; 
        and
          (2) call meetings of the advisory committees from time to 
        time.
  (b) Expenses.--The Administrator shall--
          (1) pay the transportation expenses and a per diem allowance 
        in accordance with section 5703 of title 5 to a member of an 
        advisory committee for travel and subsistence expenses incurred 
        at the request of the Administrator in connection with travel 
        to points more than 50 miles distant from the home of the 
        member in attending a meeting of the advisory committee; and
          (2) rent temporarily, within the District of Columbia or 
        elsewhere, such hotel or other accommodations as are needed to 
        facilitate the conduct of meetings of an advisory committee.
Sec. 10316. Bureau of PCLP Oversight
  (a) Establishment.--There is established within the Administration a 
bureau to be known as the Bureau of PCLP Oversight.
  (b) Purpose.--The Bureau of PCLP Oversight shall carry out such 
functions of the Administrator under section 33108(c) of this title as 
the Administrator may designate.

                        Subchapter II--Functions

Sec. 10331. General powers
  (a) Seal.--The Administrator shall have power to adopt, alter, and 
use a seal, which shall be judicially noticed.
  (b) Services and Facilities.--At the request of the Administrator, 
the head of any Federal agency or of the Government Accountability 
Office or Postal Service may provide to the Administrator (on a 
reimbursable or nonreimbursable basis) information, services, 
facilities (including any field service of the Federal agency), 
officers, and employees of the Federal agency to assist in carrying out 
this title or any other law under which the Administrator provides 
assistance to small business concerns.
  (c) Court Proceedings.--The Administrator may sue and be sued in any 
court of record of a State having general jurisdiction, or in any 
United States district court, and jurisdiction is conferred on a United 
States district court to determine such controversies without regard to 
the amount in controversy; but no attachment, injunction, garnishment, 
or other similar process, mesne or final, shall be issued against the 
Administrator or property of the Administration.
  (d) Limitation on Advertising Requirement.--Section 3709 of the 
Revised Statutes (41 U.S.C. 5) shall not apply to a contract of hazard 
insurance or a purchase or contract for a service or supply on account 
of property obtained by the Administrator as a result of a loan made 
under this subtitle or subtitle II or III if the premium for the 
insurance or the amount of the purchase or contract does not exceed 
$1,000.
  (e) Regulations.--The Administrator may prescribe such regulations as 
the Administrator considers necessary to carry out the authority vested 
in the Administrator under this subtitle and subtitles II and III.
  (f) Acceptance of Services and Facilities.--The Administrator may--
          (1) accept the services and facilities of Federal, State, and 
        local agencies and groups, both public and private; and
          (2) use such gratuitous services and facilities as may from 
        time to time be necessary to further the objectives of the 
        disaster assistance programs.
  (g) Investigations.--
          (1) In general.--The Administrator may make such 
        investigations as the Administrator considers necessary to 
        determine whether a recipient of or participant in assistance 
        under this subtitle or subtitle II or III or any other person 
        has engaged or is about to engage in any act or practice that 
        constitutes or will constitute a violation of any provision of 
        this subtitle or subtitle II or III (including a regulation or 
        order issued under this subtitle or subtitle II or III).
          (2) Statements.--The Administrator shall permit any person to 
        file with the Administrator a statement in writing, under oath 
        or otherwise as the Administrator shall determine, as to all 
        the facts and circumstances concerning a matter to be 
        investigated.
          (3) Powers.--For the purpose of any investigation, the 
        Administration may administer oaths and affirmations, subpoena 
        witnesses, compel the attendance of witnesses, take evidence, 
        and require the production of any records that are relevant to 
        the inquiry. Attendance of witnesses and the production of any 
        such records may be required from any place in the United 
        States.
          (4) Contumacy or refusal to obey.--
                  (A) In general.--In case of contumacy by, or refusal 
                to obey a subpoena issued to, any person (including a 
                recipient or participant), the Administrator may invoke 
                the aid of any court of the United States within the 
                jurisdiction of which an investigation or proceeding is 
                carried on, or in which the person resides or carries 
                on business, in requiring the attendance and testimony 
                of witnesses and the production of records, and the 
                court may issue an order requiring the person to appear 
                before the Administrator, to produce records, if so 
                ordered, or to give testimony touching the matter under 
                investigation.
                  (B) Failure to obey.--A failure to obey an order 
                under subparagraph (A) may be punished by the court as 
                a contempt of court, for which purpose process may be 
                served in any judicial district of which the person is 
                an inhabitant or in which the person may be found.
  (h) Examination and Review Fees.--
          (1) In general.--The Administrator may require a lender 
        authorized to make loans under the general business loan 
        program, the disaster loan program, or the microloan program to 
        pay examination and review fees.
          (2) Use.--Fees collected under paragraph (1) shall be 
        deposited in the account for salaries and expenses of the 
        Administrator and shall be available for the costs of 
        examinations, reviews, and other lender oversight activities.
  (i) Loan Requirements Relating to Assistance Provided to Loan 
Applicants, Nonemployment of Persons Associated With the 
Administration, and Loan Applications.--No loan shall be made or 
equipment, facilities, or services furnished by the Administrator under 
this subtitle or subtitle II or III to any business concern unless the 
owners, partners, or officers of the business concern--
          (1) certify to the Administrator--
                  (A) the names of any attorneys, agents, or other 
                persons engaged by or on behalf of the business concern 
                for the purpose of expediting applications made to the 
                Administrator for assistance of any sort; and
                  (B) the amount of fees paid or to be paid to any such 
                persons;
          (2) execute an agreement binding the business concern, for a 
        period of 2 years after any assistance is rendered by the 
        Administrator to the business concern, to refrain from 
        employing, tendering any office or employment to, or retaining 
        for professional services any individual who, on the date on 
        which any part of the assistance was rendered, or within one 
        year prior to that date, served as an officer, attorney, agent, 
        or employee of the Administrator occupying a position or 
        engaging in an activity that, as determined by the 
        Administrator, involves the exercise of discretion with respect 
        to the granting of assistance under this subtitle or subtitle 
        II or III; and
          (3) furnish--
                  (A) the names of lending institutions to which the 
                business concern has applied for a loan; and
                  (B) the date, amount, terms, and proof of refusal of 
                any loan.
  (j) Authority Relating to Transfer of Functions, Powers, and 
Duties.--The President may--
          (1) transfer to the Administrator any function, power, or 
        duty of any Federal agency that relates primarily to small 
        business problems; and
          (2) in connection with the transfer, provide for appropriate 
        transfers of records, property, necessary personnel, and 
        unexpended balances of appropriations and other funds available 
        to the Federal agency from which the transfer is made.
  (k) Fair Charges; Recovery of Direct Costs.--To the fullest extent 
that the Administrator considers practicable, the Administrator shall--
          (1) make a fair charge for the use of Government-owned 
        property; and
          (2) make and let contracts on a basis that will result in a 
        recovery of the direct costs incurred by the Administrator.
  (l) Nonduplication of Work or Activity.--The Administrator shall not 
duplicate the work or activity of any other Federal agency unless such 
work or activity is expressly provided for in this subtitle or subtitle 
II or III.
  (m) Safe Deposit Box Rentals.--Subsections (a) and (b) of section 
3324 of title 31 shall not apply to prepayments of rentals made by the 
Administrator on safe deposit boxes used by the Administrator for the 
safeguarding of instruments held as security for loans or for the 
safeguarding of other documents.
  (n) Nondiscrimination.--In carrying out the programs administered by 
the Administrator, the Administrator shall not discriminate on the 
basis of sex or marital status against any small business concern or 
other person applying for or receiving assistance from the 
Administration.
  (o) Special Consideration to Veterans.--In carrying out the programs 
administered by the Administrator, the Administrator shall give special 
consideration to veterans and their survivors or dependents.
  (p) Prohibition of Use of Funds for Individuals Not Lawfully Within 
United States.--None of the funds made available under this subtitle or 
subtitle II or III may be used to provide any direct benefit or 
assistance to any individual in the United States if the Administrator 
or the official to which the funds are made available receives 
notification that the individual is not lawfully within the United 
States.
  (q) Obscene Products and Services.--Notwithstanding any other 
provision of law, the Administrator shall not provide any financial or 
other assistance to any business concern or other person engaged in the 
production or distribution of any product or service that has been 
determined by a court of competent jurisdiction to be obscene.
  (r) Gifts.--In carrying out the functions of the Administrator under 
this subtitle and subtitles II and III and to carry out the activities 
authorized by chapter 403, the Administrator may--
          (1) accept, in the name of the Administrator, and employ or 
        dispose of in furtherance of the purposes of this subtitle or 
        subtitle II or III, any money or property, real, personal, or 
        mixed, tangible, or intangible, received by gift, devise, 
        bequest, or otherwise; and
          (2) accept gratuitous services and facilities.
Sec. 10332. Financial management
  (a) Accounts.--
          (1) In general.--All repayments of loans, debentures, 
        payments of interest, and other receipts arising out of 
        transactions entered into by the Administrator shall be 
        deposited in appropriate accounts as determined by the 
        Administrator.
          (2) Budgets.--Business-type budgets for each of the accounts 
        referred to in paragraph (1) shall be--
                  (A) submitted to the Committee on Appropriations and 
                Committee on Small Business and Entrepreneurship of the 
                Senate and the Committee on Appropriations and 
                Committee on Small Business of the House of 
                Representatives; and
                  (B) enacted in the manner prescribed by sections 9103 
                and 9104 of title 31 for wholly owned Government 
                corporations.
          (3) Reports.--As soon as possible after the beginning of each 
        calendar quarter, the Administrator shall submit to the 
        Committee on Appropriations and Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on 
        Appropriations and Committee on Small Business of the House of 
        Representatives a report that describes the status of each of 
        the accounts referred to in paragraph (1).
          (4) Issuance of notes.--
                  (A) In general.--The Administrator may issue notes to 
                the Secretary of the Treasury for the purpose of 
                obtaining funds necessary for discharging obligations 
                under, and for authorized expenditures out of, the 
                accounts referred to in paragraph (1).
                  (B) Form.--Notes issued under subparagraph (A) shall 
                be in such form and denominations, have such 
                maturities, and be subject to such terms and conditions 
                as the Administrator may prescribe with the approval of 
                the Secretary of the Treasury.
                  (C) Interest.--Notes issued under subparagraph (A) 
                shall bear interest at a rate fixed by the Secretary of 
                the Treasury, taking into consideration the current 
                average market yield of outstanding marketable 
                obligations of the United States having maturities 
                comparable to those of the notes issued under 
                subparagraph (A).
                  (D) Purchase by the secretary of the treasury.--The 
                Secretary of the Treasury shall purchase any notes of 
                the Administration issued under subparagraph (A), and 
                for that purpose the Secretary of the Treasury may use 
                as a public debt transaction the proceeds from the sale 
                of any securities issued under chapter 31 of title 31, 
                and the purposes for which such securities may be 
                issued under that chapter are extended to include the 
                purchase of notes issued under subparagraph (A).
                  (E) Treatment as public debt transactions.--All 
                redemptions, purchases, and sales by the Secretary of 
                the Treasury of notes issued under subparagraph (A) 
                shall be treated as public debt transactions of the 
                United States.
                  (F) Borrowing authority subject to availability of 
                appropriations.--All borrowing authority contained in 
                this paragraph shall be effective only to such extent 
                or in such amounts as are provided in advance in 
                appropriation Acts.
          (5) Unneeded amounts.--Amounts in an account referred to in 
        paragraph (1) that are not needed for current operations may be 
        paid into miscellaneous receipts of the Treasury.
          (6) Interest.--
                  (A) Actual interest collected.--Following the close 
                of each fiscal year, the Administrator shall pay into 
                the miscellaneous receipts of the United States 
                Treasury the actual interest that the Administration 
                collects during that fiscal year on all financings made 
                under subtitle II.
                  (B) Interest received on financing functions.--
                          (i) In general.--Except on loan disbursements 
                        on which interest is paid under subparagraph 
                        (A), following the close of each fiscal year, 
                        the Administrator shall pay into miscellaneous 
                        receipts of the Treasury interest received by 
                        the Administration on financing functions 
                        performed under this subtitle, subtitle II, and 
                        divisions B and C of subtitle III if the 
                        capital used to perform those functions 
                        originates from appropriated funds.
                          (ii) Treatment.--Payments under clause (i) 
                        shall be treated by the Department of the 
                        Treasury as interest income, not as retirement 
                        of indebtedness.
          (7) Contributions to employees' compensation funds.--
                  (A) In general.--The Administrator shall contribute 
                to the employees' compensation fund, on the basis of 
                annual billings as determined by the Secretary of 
                Labor, for the benefit payments made from the fund on 
                account of employees engaged in carrying out functions 
                financed under the accounts described in paragraph (1).
                  (B) Statement of cost.--The annual billings shall 
                include a statement of the fair portion of the cost of 
                the administration of the employees' compensation fund, 
                which shall be paid by the Administrator into the 
                Treasury as miscellaneous receipts.
  (b) Financial Management Powers.--
          (1) Disposition of evidence of debt, contract, claim, 
        personal property, or security.--Under regulations prescribed 
        by the Administrator, the Administrator may--
                  (A) assign or sell at public or private sale, or 
                otherwise dispose of for cash or credit, in the 
                discretion of the Administrator and on such terms and 
                conditions and for such consideration as the 
                Administrator determines to be reasonable, any evidence 
                of debt, contract, claim, personal property, or 
                security assigned to or held by the Administrator in 
                connection with the payment of loans granted under 
                subtitle II or III; and
                  (B) collect or compromise all obligations assigned to 
                or held by the Administrator and all legal or equitable 
                rights accruing to the Administrator in connection with 
                the payment of such loans until such time as such 
                obligations may be referred to the Attorney General for 
                suit or collection.
          (2) Administration moneys.--
                  (A) Deposit in treasury.--All moneys of the 
                Administration not otherwise employed may be deposited 
                in the Treasury subject to check by authority of the 
                Administrator.
                  (B) Federal reserve banks.--
                          (i) In general.--The Federal Reserve banks 
                        shall act as depositaries, custodians, and 
                        fiscal agents for the Administration in the 
                        general performance of its powers under this 
                        subtitle and subtitles II and III.
                          (ii) Reimbursement.--A Federal Reserve bank, 
                        when designated by the Administrator as fiscal 
                        agent for the Administration, shall be entitled 
                        to be reimbursed for all expenses incurred as 
                        fiscal agent.
                  (C) Banks insured by fdic.--A bank insured by the 
                Federal Deposit Insurance Corporation, when designated 
                by the Secretary of the Treasury, shall act as 
                custodian and financial agent for the Administration.
          (3) Real property.--
                  (A) Conveyance.--The power to convey and to execute 
                in the name of the Administrator a deed of conveyance, 
                deed of release, assignment and satisfaction of 
                mortgages, or any other written instrument relating to 
                real property or any interest in real property acquired 
                by the Administrator under this subtitle or subtitle II 
                or III may be exercised--
                          (i) by the Administrator; or
                          (ii) by any officer or agent appointed by the 
                        Administrator, with or without the execution of 
                        an express delegation of power or power of 
                        attorney.
                  (B) Other authority.--The Administrator may deal 
                with, complete, renovate, improve, modernize, insure, 
                or rent, or sell for cash or credit, on such terms and 
                conditions and for such consideration as the 
                Administrator determines to be reasonable, any real 
                property conveyed to or otherwise acquired by the 
                Administrator in connection with the payment of loans 
                granted under subtitle II or III.
          (4) Collections.--
                  (A) In general.--The Administrator may pursue to 
                final collection, by way of compromise or otherwise, 
                all claims against third parties assigned to the 
                Administrator in connection with loans made by the 
                Administrator.
                  (B) Deficiency judgments.--The authority under 
                subparagraph (A) includes authority to obtain a 
                deficiency judgment or otherwise in the case of a 
                mortgage assigned to the Administrator.
          (5) Acquisition of property.--The Administrator may acquire, 
        in any lawful manner, any property (real, personal, or mixed, 
        tangible or intangible), when the Administrator considers it 
        necessary or appropriate to the conduct of the general business 
        loan program and disaster assistance programs.
          (6) Asset sales.--In connection with the Administrator's 
        implementation of a program to sell to the private sector loans 
        and other assets held by the Administrator, the Administrator 
        shall provide to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a copy of the draft 
        and final plans describing the sale and the anticipated 
        benefits resulting from the sale.
  (c) Sale of Guaranteed Portion of Loan by Lender or Subsequent 
Holder.--
          (1) In general.--The guaranteed portion of a loan made under 
        subtitle II or III may be sold by the lender, and by any 
        subsequent holder, consistent with regulations prescribed by 
        the Administrator, subject to the limitations stated in 
        paragraph (2).
          (2) Limitations.--
                  (A) Approval.--Before the Administrator approves a 
                sale or resale under paragraph (1), if the lender 
                certifies that the loan has been properly closed and 
                that the lender has substantially complied with the 
                guarantee agreement and the regulations of the 
                Administrator, the Administrator shall review and 
                approve only materials not previously approved.
                  (B) Fees.--All fees due the Administrator on a 
                guaranteed loan shall be paid in full prior to a sale 
                or resale under paragraph (1).
                  (C) Disbursement.--A loan (except a loan made under 
                section 20508 of this title) shall be fully disbursed 
                to the borrower before a sale or resale under paragraph 
                (1).
          (3) Continuing obligation.--After a loan is sold, the lender 
        shall remain obligated under its guarantee agreement with the 
        Administrator and shall continue to service the loan in a 
        manner consistent with the terms and conditions of the 
        guarantee agreement.
          (4) Secondary market.--
                  (A) Procedures.--The Administrator shall develop such 
                procedures as are necessary for--
                          (i) the facilitation, administration, and 
                        promotion of secondary market operations; and
                          (ii) assessing the increase of small business 
                        access to capital at reasonable rates and terms 
                        as a result of secondary market operations.
                  (B) Uniform regulations.--The sale of the 
                unguaranteed portion of a loan made under the general 
                business loan program shall not be permitted except in 
                accordance with a regulation prescribed by the 
                Administrator that--
                          (i) applies uniformly to both depository 
                        institutions and other lenders; and
                          (ii) specifies the terms and conditions under 
                        which such sales can be permitted, including 
                        maintenance of appropriate reserve requirements 
                        and other safeguards to protect the safety and 
                        soundness of the program.
                  (C) Long-term viability.--The Administrator shall 
                take such actions in the awarding of contracts as the 
                Administrator considers necessary to ensure the 
                continued long-term viability of the secondary market 
                in loans, debentures, and other securities guaranteed 
                by the Administrator.
          (5) Effect of subsections.--Nothing in this subsection or 
        subsection (d) impedes or extinguishes--
                  (A) the right of a borrower or a successor in 
                interest to a borrower to prepay (in whole or in part) 
                a loan made under the general business loan program, 
                the guaranteed portion of which may be included in a 
                trust or pool; or
                  (B) the rights of any person under subsection (i).
  (d) Trust Certificates.--
          (1) In general.--The Administrator may issue trust 
        certificates representing ownership of all or a fractional part 
        of the guaranteed portion of one or more loans guaranteed by 
        the Administrator under subtitle II or section 33103 of this 
        title.
          (2) Trust or pool.--A trust certificate shall be based on and 
        backed by a trust or pool approved by the Administrator and 
        composed solely of the entire guaranteed portion of a loan.
          (3) Guarantee.--
                  (A) In general.--The Administrator, on such terms and 
                conditions as the Administrator considers appropriate, 
                may guarantee the timely payment of the principal of 
                and interest on trust certificates issued by the 
                Administrator or an agent of the Administrator for 
                purposes of this subsection.
                  (B) Limit.--
                          (i) In general.--A guarantee under 
                        subparagraph (A) shall be limited to the extent 
                        of principal and interest on the guaranteed 
                        portion of the loan or loans that compose the 
                        trust or pool.
                          (ii) Prepayment.--If a loan in a trust or 
                        pool is prepaid, either voluntarily or in the 
                        event of default, the guarantee of timely 
                        payment of principal and interest on the trust 
                        certificate shall be reduced in proportion to 
                        the amount of principal and interest that the 
                        prepaid loan represents in the trust or pool.
                          (iii) Interest.--Interest on prepaid or 
                        defaulted loans shall accrue and be guaranteed 
                        by the Administrator only through the date of 
                        payment on the guarantee.
                          (iv) Call.--During the term of a trust 
                        certificate, the trust certificate may be 
                        called for redemption due to prepayment or 
                        default of all loans constituting the trust or 
                        pool.
          (4) Full faith and credit of the united states.--The full 
        faith and credit of the United States is pledged to the payment 
        of all amounts that may be required to be paid under any 
        guarantee of a trust certificate issued by the Administration 
        or its agent under this subsection.
          (5) Fees.--
                  (A) In general.--The Administrator may impose a fee 
                for a loan guarantee sold into the secondary market 
                under subsection (c) in an amount equal to not more 
                than 50 percent of the portion of the sale price that 
                exceeds 110 percent of the outstanding principal amount 
                of the portion of the loan guaranteed by the 
                Administrator.
                  (B) Collection; use.--A fee under subparagraph (A)--
                          (i) shall be collected by the Administrator 
                        or by the agent that carries out on behalf of 
                        the Administrator the central registration 
                        functions required by subsection (e); and
                          (ii) shall be paid to the Administrator and 
                        used solely to reduce the subsidy on loans 
                        guaranteed under the general business loan 
                        program.
                  (C) No charge to borrower.--A fee under subparagraph 
                (A) shall not be charged to the borrower under the loan 
                that is guaranteed.
                  (D) No preclusion.--Nothing in this paragraph 
                precludes an agent of the Administrator from collecting 
                a fee approved by the Administrator for the functions 
                described in subsection (e)(2)(A)(ii).
                  (E) Penalty.--The Administrator may impose and 
                collect, directly or through a fiscal and transfer 
                agent, a reasonable penalty on late payment of a fee 
                under subparagraph (A) in an amount not to exceed 5 
                percent of the fee per month plus interest.
                  (F) Agents.--
                          (i) In general.--The Administrator may 
                        contract with an agent to carry out, on behalf 
                        of the Administration, the assessment and 
                        collection of the annual fee established under 
                        section 20314 of this title.
                          (ii) Compensation.--An agent may receive, as 
                        compensation for services, any interest earned 
                        on the fee while in the control of the agent 
                        before the time at which the agent is 
                        contractually required to remit the fee to the 
                        Administrator.
          (6) Subrogation.--If the Administrator pays a claim under a 
        guarantee issued under this subsection, the Administrator shall 
        be subrogated fully to the rights satisfied by the payment.
          (7) Exercise of ownership rights.--No Federal, State, or 
        local law shall preclude or limit the exercise by the 
        Administration of its ownership rights in the portions of loans 
        constituting the trust or pool against which a trust 
        certificate is issued.
  (e) Central Registration of Loans and Trust Certificates.--
          (1) Definition of seller.--In this subsection, the term 
        ``seller'', with respect to a sale of a loan, does not 
        include--
                  (A) an entity that made the loan; or
                  (B) an individual or entity that sells 3 or fewer 
                guaranteed loans per year.
          (2) In general.--Under regulations prescribed by the 
        Administrator--
                  (A) the Administrator shall--
                          (i) provide for a central registration of all 
                        loans and trust certificates sold under 
                        subsections (c) and (d);
                          (ii) contract with an agent to carry out on 
                        behalf of the Administrator the central 
                        registration functions of this section and the 
                        issuance of trust certificates to facilitate 
                        pooling; and
                          (iii) prior to any sale, require the seller 
                        to disclose to a purchaser of the guaranteed 
                        portion of a loan guaranteed under subtitle II 
                        and to the purchaser of a trust certificate 
                        issued under subsection (d) information on the 
                        terms, conditions, and yield of the instrument 
                        to be sold; and
                  (B) the Administrator may regulate brokers and 
                dealers in guaranteed loans and trust certificates sold 
                under subsections (c) and (d).
          (3) Agent.--An agent described in paragraph (2)(A)(ii)--
                  (A) shall provide a fidelity bond or insurance in 
                such amounts as the Administrator determines to be 
                necessary to fully protect the interest of the 
                Government; and
                  (B) may be compensated through any of the fees 
                assessed under this section and any interest earned on 
                any funds collected by the agent while the funds are in 
                the control of the agent and before the time at which 
                the agent is contractually required to transfer the 
                funds to the Administrator or to the holders of the 
                trust certificates, as appropriate.
          (4) Form of registration.--
                  (A) In general.--This subsection does not preclude 
                the use of a book-entry or other electronic form of 
                registration for trust certificates.
                  (B) Book-entry system.--The Administration may, with 
                the consent of the Secretary of the Treasury, use the 
                book-entry system of the Federal Reserve System.
  (f) Action Dealing With or Realizing on Loan.--
          (1) In general.--In addition to exercising any power, 
        function, privilege, or immunity vested in the Administrator by 
        any other provision of law, the Administrator may take any and 
        all actions (including the procurement of the services of an 
        attorney by contract in any office in which an attorney is not 
        or cannot be economically employed full time to render such 
        services) if the Administrator determines that such action is 
        necessary or desirable in making, servicing, compromising, 
        modifying, liquidating, or otherwise dealing with or realizing 
        on a loan made under subtitle II or III.
          (2) Deferred participation loan.--With respect to a deferred 
        participation loan, the Administrator may, in the discretion of 
        and pursuant to regulations promulgated by the Administrator, 
        authorize a participating lending institution to take action 
        relating to loan servicing on behalf of the Administrator, 
        including determining eligibility and creditworthiness and loan 
        monitoring, collection, and liquidation.
          (3) Preferred lenders program.--
                  (A) In general.--Under this subsection, the 
                Administrator may carry out a preferred lenders program 
                under which a written agreement between a lender and 
                the Administrator delegates to the lender--
                          (i) complete authority to make and close 
                        loans with a guarantee from the Administrator 
                        without obtaining the prior specific approval 
                        of the Administrator; and
                          (ii) complete authority to service and 
                        liquidate the loans without obtaining the prior 
                        specific approval of the Administrator for 
                        routine servicing and liquidation activities, 
                        subject to the limitation that the lender shall 
                        not take any action creating an actual or 
                        apparent conflict of interest.
                  (B) Standard review program.--The Administrator shall 
                carry out a standard review program under which, on 
                entry into the preferred lenders program and annually 
                or more frequently thereafter, each preferred lender's 
                participation in the preferred lenders program is 
                assessed, including an assessment of defaults, loans, 
                and recoveries of loans made by the preferred lender 
                under the general business loan program.
  (g) Fees.--
          (1) In general.--Except as provided in paragraph (2), the 
        Administrator may impose, retain, and use only--
                  (A) fees that are specifically authorized by law; and
                  (B) fees that were in effect on September 30, 1994, 
                in the amounts and at the rates in effect on that date.
          (2) Additional fees.--The Administrator may, subject to 
        approval in appropriations Acts, impose, retain, and use, in 
        addition to fees described in paragraph (1)--
                  (A) a fee not exceeding $100 for a loan servicing 
                action (other than a loan assumption) requested after 
                disbursement of the loan, including any substitution of 
                collateral, release or substitution of a guarantor, 
                reamortization, or similar action;
                  (B) a fee not exceeding $300 for a loan assumption;
                  (C) a fee not exceeding one percent of the amount of 
                requested financings under chapter 303 for which the 
                applicant requests a commitment from the Administration 
                for funding during the following year; and
                  (D) fees to recover the direct, incremental cost 
                involved in the production and dissemination of 
                compilations of information produced by the 
                Administrator under this title.
          (3) Limitation on use.--Amounts collected under this 
        subsection shall be used solely to facilitate the 
        administration of the program that generated the excess 
        amounts.
  (h) Amounts Collected by Fiscal Transfer Agents.--
          (1) In general.--The Administrator may collect, retain and 
        use, subject to approval in appropriations Acts, any amount 
        collected by a fiscal transfer agent that is not used by the 
        fiscal transfer agent as payment of the cost of loan pooling or 
        debenture servicing operations.
          (2) Limitation on use.--Amounts collected under this 
        subsection shall be used solely to facilitate the 
        administration of the program that generated the excess 
        amounts.
  (i) Undertaking or Suspension of Payment Obligation.--
          (1) Definition of required payments.--In this subsection, the 
        term ``required payment'', with respect to a loan, means a 
        payment of principal and interest under the loan.
          (2) In general.--Subject to the requirements and conditions 
        contained in this subsection, on application by a small 
        business concern that is the recipient of a loan made under 
        subtitle II or III, the Administrator may--
                  (A) undertake the small business concern's obligation 
                to make the required payments under the loan; or
                  (B) if the loan was a direct loan made by the 
                Administrator, suspend the obligation.
          (3) No requirement for payment.--During any period in which 
        required payments are being made by the Administrator pursuant 
        to an undertaking of an obligation or in which an obligation is 
        suspended, no required payment with respect to the loan may be 
        required to be made by the small business concern.
          (4) Conditions.--The Administrator may undertake or suspend 
        for a period of not to exceed 5 years a small business 
        concern's obligation under this subsection only if--
                  (A) without the undertaking or suspension of the 
                obligation, the small business concern would, as 
                determined in the sole discretion of the Administrator, 
                become insolvent or remain insolvent;
                  (B) with the undertaking or suspension of the 
                obligation, the small business concern would, as 
                determined in the sole discretion of the Administrator, 
                become or remain a viable business; and
                  (C) the small business concern executes an agreement 
                in writing satisfactory to the Administrator as 
                provided in paragraph (6).
          (5) Extension of term.--Notwithstanding section 20309 of this 
        title, the Administrator may extend the term of a loan on which 
        the Administrator undertakes or suspends the obligation under 
        this subsection for a corresponding period of time.
          (6) Agreement; required action.--
                  (A) Agreement.--Before undertaking or suspending a 
                small business concern's obligation under this 
                subsection, the Administrator, consistent with the 
                purposes of this subsection, shall require the small 
                business concern to agree in writing to repay to the 
                Administrator the aggregate amount of the required 
                payments during the period for which the obligation was 
                undertaken or suspended--
                          (i) by periodic payments not less in amount 
                        or less frequently falling due than those that 
                        were due under the loan during that period;
                          (ii) pursuant to a repayment schedule agreed 
                        on by the Administrator and the small business 
                        concern; or
                          (iii) by a combination of the payments 
                        described in clauses (i) and (ii).
                  (B) Required action.--In addition to requiring the 
                small business concern to execute the agreement 
                described in subparagraph (A), the Administrator shall, 
                before undertaking or suspending the obligation, take 
                such action, and require the small business concern to 
                take such action, as the Administrator considers 
                appropriate in the circumstances (including the 
                provision of such security as the Administrator 
                considers necessary or appropriate) to ensure that the 
                rights and interests of the lender will be safeguarded 
                adequately during and after the period in which the 
                obligation is undertaken or suspended.
  (j) Interest Rate on Deferred Participation.--On purchase by the 
Administrator of a deferred participation entered into under the 
general business loan program or disaster loan program, the 
Administrator may continue to charge a rate of interest not to exceed 
that initially charged by the participating institution on the amount 
purchased for the remaining term of the indebtedness.
  (k) Subordination to Certain State Tax Liens.--Any interest held by 
the Administrator in property as security for a loan shall be 
subordinate to any lien on the property for taxes due on the property 
to a State or political subdivision of a State in any case in which the 
lien would, under applicable State law, be superior to that interest if 
the interest were held by any party other than the United States.
  (l) Risk Management Database.--
          (1) Establishment.--The Administrator shall establish, within 
        the management system for the general business loan program, 
        disaster assistance programs, and certified development company 
        program a management information system that will generate a 
        database capable of providing timely and accurate information 
        in order to identify loan underwriting, collections, recovery, 
        and liquidation problems.
          (2) Information to be maintained.--In addition to such other 
        information as the Administrator considers appropriate, the 
        database established under paragraph (1) shall, with respect to 
        each loan program described in paragraph (1), include 
        information relating to--
                  (A) the identity of the institution making the 
                guaranteed loan or issuing the debenture;
                  (B) the identity of the borrower;
                  (C) the total dollar amount of the loan or debenture;
                  (D) the total dollar amount of Government exposure in 
                each loan;
                  (E) the district of the Administration in which the 
                borrower has its principal office;
                  (F) the principal line of business of the borrower, 
                as identified by North American Industry Classification 
                System (or any successor to that system) code;
                  (G) the delinquency rate for each program (including 
                number of instances and days overdue);
                  (H) the number and amount of repurchases, losses, and 
                recoveries in each program;
                  (I) the number of deferrals or forbearances in each 
                program (including days and number of instances);
                  (J) comparisons, on the basis of loan program, 
                lender, Administration district and region, for all the 
                data elements maintained; and
                  (K) underwriting characteristics of each loan that 
                has entered into default, including term, amount and 
                type of collateral, loan-to-value and other actual and 
                projected ratios, line of business, credit history, and 
                type of loan.
Sec. 10333. Small business economic database
  (a) In General.--The Administrator shall maintain an external small 
business economic database for the purpose of providing Congress and 
the Administration information on the economic condition and the 
expansion or contraction of the small business sector.
  (b) Economic Indices.--In carrying out subsection (a), the 
Administrator shall publish on a regular basis national small business 
economic indices and, to the extent feasible, regional small business 
economic indices that include data relating to--
          (1) employment, layoffs, and new hires;
          (2) number of business establishments and the types of such 
        establishments such as sole proprietorships, corporations, and 
        partnerships;
          (3) number of business formations and failures;
          (4) sales and new orders;
          (5) back orders;
          (6) investment in plant and equipment;
          (7) changes in inventory and rate of inventory turnover;
          (8) sources and amounts of capital investment, including 
        debt, equity, and internally generated funds;
          (9) debt-to-equity ratios;
          (10) exports;
          (11) number and dollar amount of mergers and acquisitions by 
        size of acquiring and acquired firm; and
          (12) concentration ratios.
Sec. 10334. Small business computer security and education program
  (a) In General.--The Administrator shall establish a small business 
computer security and education program to--
          (1) provide small business concerns information regarding--
                  (A) utilization and management of computer 
                technology;
                  (B) computer crimes committed against small business 
                concerns; and
                  (C) security for computers owned or utilized by small 
                business concerns;
          (2) provide for periodic forums for small business concerns 
        to improve their knowledge of the matters described in 
        paragraph (1); and
          (3) provide training opportunities to educate small business 
        users on computer security techniques.
  (b) Information and Materials.--The Administrator, after consultation 
with the Director of the National Institute of Standards and Technology 
of the Department of Commerce, shall develop information and materials 
to carry out the activities described in subsection (a).
Sec. 10335. General policies governing the granting and denial of 
                    applications
  The Administrator shall establish general policies (particularly with 
reference to the public interest in the granting and denial of 
applications for financial assistance by the Administrator and with 
reference to the coordination of the functions of the Administration 
with other activities and policies of the Government), which shall 
govern the granting and denial of applications for financial assistance 
by the Administrator.
Sec. 10336. Retention of records
  The Administrator and the Inspector General of the Administration 
shall--
          (1) retain all correspondence, records of inquiries, 
        memoranda, reports, books, and other records, including 
        memoranda as to all investigations conducted by or for the 
        Administration, for a period of at least one year after the 
        date of the record; and
          (2) at all times keep the records available for inspection 
        and examination by the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives or the authorized 
        representatives of either Committee.
Sec. 10337. Consultation and cooperation with other Federal agencies
  (a) In General.--To the extent that the Administrator considers it 
necessary to protect and preserve small business interests, the 
Administrator shall consult and cooperate with other Federal agencies 
in the formulation by the Administrator of policies affecting small 
business concerns.
  (b) Response.--When requested by the Administrator, a Federal agency 
shall consult and cooperate with the Administrator in the formulation 
by the Federal agency of policies affecting small business concerns to 
ensure that small business interests will be recognized, protected, and 
preserved.
  (c) Effect of Section.--This section does not require a Federal 
agency to consult or cooperate with the Administrator in a case in 
which the head of the Federal agency determines that such consultation 
or cooperation would unduly delay action that must be taken by the 
Federal agency to protect the national interest in an emergency.
Sec. 10338. Representation of status as small business concern
  (a) In General.--Any representation of the status of any concern or 
person as a small business concern, HUBZone small business concern, 
small business concern owned and controlled by socially and 
economically disadvantaged individuals, or small business concern owned 
and controlled by women in order to obtain any prime contract or 
subcontract described in subsection (b) shall be of no effect unless 
the representation is in writing.
  (b) Prime Contracts and Subcontracts.--A prime contract or 
subcontract referred to in subsection (a) is--
          (1) a prime contract to be awarded under chapter 251, 253, 
        261, or 263;
          (2) a subcontract to be awarded under chapter 233;
          (3) a subcontract that is to be included as part or all of a 
        goal contained in a subcontracting plan required under section 
        24303 of this title; or
          (4) a prime contract or subcontract to be awarded as a 
        result, or in furtherance, of any other provision of Federal 
        law that specifically references chapter 243 for a definition 
        of program eligibility.
Sec. 10339. Criminal background checks
  Before approval of a loan under the general business loan program or 
a debenture guarantee under the certified development company program, 
the Administrator may verify the applicant's criminal background (or 
lack of criminal background) through the best available means, 
including, if possible, use of the National Crime Information Center 
computer system at the Federal Bureau of Investigation.

                         CHAPTER 105--PENALTIES

Sec.
10501.  False statement; overvaluation of security.
10502.  Unlawful act by person connected with the Administration.
10503.  Concealment, disposal, or conversion of property.
10504.  Misrepresentation of status as small business concern.
10505.  False certification of past compliance.
Sec. 10501. False statement; overvaluation of security
  A person that makes a statement, knowing the statement to be false, 
or willfully overvalues a security for the purpose of obtaining for 
himself or for any applicant a loan, or a loan extension by renewal, 
deferment of action, or otherwise, or the acceptance, release, or 
substitution of security for a loan, or for the purpose of influencing 
in any way the action of the Administrator, or for the purpose of 
obtaining money, property, or anything of value, under this subtitle or 
subtitle II or III, shall be imprisoned not more than 2 years, fined 
not more than $5,000, or both.
Sec. 10502. Unlawful act by person connected with the Administration
  A person connected in any capacity with the Administration that--
          (1) embezzles, abstracts, purloins, or willfully misapplies 
        any money, funds, security, or other thing of value, whether 
        belonging to the Administrator or pledged or otherwise 
        entrusted to the Administrator;
          (2) with intent to defraud the Administrator or any other 
        body politic or corporate, or any individual, or to deceive any 
        officer, auditor, or examiner of the Administration--
                  (A) makes a false entry in a book, report, or 
                statement of or to the Administrator; or
                  (B) without being duly authorized, draws an order or 
                issues, puts forth, or assigns a note, debenture, bond, 
                or other obligation, or draft, bill of exchange, 
                mortgage, judgment, or decree of judgment;
          (3) with intent to defraud, participates or shares in or 
        receives directly or indirectly any money, profit, property, or 
        benefit through any transaction, loan, commission, contract, or 
        other act of the Administrator; or
          (4)(A) gives any unauthorized information concerning a future 
        action or plan of the Administrator that might affect the value 
        of a security; or
          (B) having such knowledge, invests or speculates, directly or 
        indirectly, in a security or property of any company or 
        corporation receiving a loan or other assistance from the 
        Administrator;
shall be imprisoned not more than 5 years, fined not more than $10,000, 
or both.
Sec. 10503. Concealment, disposal, or conversion of property
  A person that, with intent to defraud, knowingly conceals, removes, 
disposes of, or converts to the use of that person or any other person 
any property mortgaged or pledged to, or held by, the Administrator--
          (1) shall be imprisoned not more than one year, fined not 
        more than $1,000, or both; or
          (2) if the value of the property exceeds $100, shall be 
        imprisoned not more than 5 years, fined not more than $5,000, 
        or both.
Sec. 10504. Misrepresentation of status as small business concern
  (a) Offense.--A person that, in writing, misrepresents the status of 
a concern or person as a small business concern, qualified HUBZone 
small business concern, small business concern owned and controlled by 
socially and economically disadvantaged individuals, or small business 
concern owned and controlled by women, in order to obtain for that 
person or any other person--
          (1) a prime contract to be awarded under chapter 251, 253, 
        261, or 263;
          (2) a subcontract to be awarded under chapter 233;
          (3) a subcontract that is to be included as part or all of a 
        goal contained in a subcontracting plan required under section 
        24303 of this title; or
          (4) a prime contract or subcontract to be awarded as a 
        result, or in furtherance, of any other provision of Federal 
        law that specifically references chapter 243 for a definition 
        of program eligibility;
shall be subject to the penalties described in subsection (b).
  (b) Penalties.--A person that violates subsection (a)--
          (1) shall be imprisoned not more than 10 years, fined not 
        more than $500,000 or both;
          (2) shall be subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (3) shall be subject to suspension and debarment as specified 
        in subpart 9.4 of title 48, Code of Federal Regulations (or any 
        successor regulation) on the basis that the misrepresentation 
        indicates a lack of business integrity that seriously and 
        directly affects the present responsibility to perform any 
        contract awarded by the Federal Government or a subcontract 
        under such a contract; and
          (4) shall be ineligible for participation in any program or 
        activity conducted under this subtitle or subtitle II or III 
        for a period not to exceed 3 years.
Sec. 10505. False certification of past compliance
  A person that falsely certifies past compliance with the requirements 
of section 23328 of this title--
          (1) shall be imprisoned not more than 10 years, fined not 
        more than $500,000 or both;
          (2) shall be subject to the administrative remedies 
        prescribed by chapter 38 of title 31;
          (3) shall be subject to suspension and debarment as specified 
        in subpart 9.4 of title 48, Code of Federal Regulations (or any 
        successor regulation) on the basis that the misrepresentation 
        indicates a lack of business integrity that seriously and 
        directly affects the present responsibility to perform any 
        contract awarded by the Federal Government or a subcontract 
        under such a contract; and
          (4) shall be ineligible for participation in any program or 
        activity conducted under this subtitle or subtitle II or III 
        for a period not to exceed 3 years.

                     CHAPTER 107--PERIODIC REPORTS

Sec.
10701.  Comprehensive annual report on the state of small business and 
          on Administration operations.
10702.  Annual report on expenditures.
10703.  Annual report on secondary market operations.
10704.  Annual report on impact of authority to impose secondary market 
          fees.
10705.  Annual report on needs of small business concerns owned and 
          controlled by veterans and small business concerns owned and 
          controlled by service-disabled veterans.
10706.  Annual report on contract bundling.
10707.  Annual report on business development program.
10708.  Annual report on contract participation goals.
10709.  Annual report on cost savings from breakout procurement center 
          representatives.
10710.  Annual reports on SBIRs, STTRs, and the FAST program.
10711.  Annual report on women's business center program.
10712.  Annual report of the Office of International Trade.
10713.  Annual report on historical trends of the small business sector.
10714.  Biennial report on accredited lenders program.
10715.  Annual report on premier certified lenders program.
10716.  Annual report on foreclosure and liquidation of loans under the 
          certified development company program.
10717.  Reports on disaster assistance.
Sec. 10701. Comprehensive annual report on the state of small business 
                    and on Administration operations
  (a) In General.--As soon as practicable each fiscal year, the 
Administrator shall submit to the President a comprehensive annual 
report.
  (b) Contents.--A report under subsection (a) shall include--
          (1) a description of the state of small business in the 
        Nation as a whole and in each State;
          (2) a description of the operations of the Administration 
        under this subtitle and subtitle II, including the general 
        lending, disaster relief, Government regulation relief, 
        procurement and property disposal, research and development, 
        technical assistance, dissemination of data and information, 
        and other functions under the jurisdiction of the 
        Administration during the previous fiscal year;
          (3) recommendations--
                  (A) for strengthening or improving the functions 
                described in paragraph (2); or
                  (B) when necessary or desirable to implement more 
                effectively congressional policies and proposals, for 
                establishing new or alternative programs;
          (4) the names of the business concerns to which contracts are 
        let and for which financing is arranged by the Administrator, 
        including the amounts of the contracts and financings;
          (5) the proportion of loans and other assistance under 
        subtitle II and provided to minority small business concerns, 
        the goals of the Administrator for the next fiscal year with 
        respect to minority small business concerns, and 
        recommendations for improving assistance to minority small 
        business concerns under subtitle II; and
          (6)(A) a full and detailed account of operations under 
        subtitle III that--
                  (i) discloses the amount of losses sustained by the 
                Government as a result of such operations during the 
                preceding fiscal year; and
                  (ii) includes an estimate of the total losses that 
                the Government can reasonably expect to incur as a 
                result of such operations during the then-current 
                fiscal year;
          (B) full and detailed accounts relating to--
                  (i) the Administrator's recommendations with respect 
                to the feasibility and organization of a small business 
                capital bank to encourage private financing of small 
                business investment companies (as defined in section 
                30101 of this title) to replace Government financing of 
                small business investment companies;
                  (ii) the Administrator's plans to ensure the 
                provision of small business investment company 
                financing to all areas of the country and to all 
                eligible small business concerns, including steps taken 
                to accomplish that;
                  (iii) steps taken by the Administrator to maximize 
                recoupment of Government funds incident to the 
                inauguration and administration of the small business 
                investment company program and to ensure compliance 
                with statutory and regulatory standards relating to the 
                small business investment company program;
                  (iv) an accounting by the Director of the Office of 
                Management and Budget with respect to Federal 
                expenditures to business by executive agencies, 
                specifying the proportion of those expenditures going 
                to business concerns falling above and below small 
                business size standards applicable to small business 
                investment companies;
                  (v) an accounting by the Secretary of the Treasury 
                with respect to tax revenues accruing to the Government 
                from business concerns, specifying the source of those 
                revenues by concerns falling above and below the small 
                business size standards applicable to small business 
                investment companies;
                  (vi) an accounting by the Secretary of the Treasury 
                with respect to tax losses and increased tax revenues 
                related to small business investment company financing 
                of both individual and corporate business taxpayers;
                  (vii) recommendations of the Secretary of the 
                Treasury with respect to additional tax incentives to 
                improve and facilitate the operations of small business 
                investment companies and to encourage the use of their 
                financing facilities by eligible small business 
                concerns;
                  (viii) a report from the Securities and Exchange 
                Commission enumerating actions undertaken by the 
                Securities and Exchange Commission to simplify and 
                minimize the regulatory requirements governing small 
                business investment companies under the Federal 
                securities laws and to eliminate overlapping regulation 
                and jurisdiction as between the Securities and Exchange 
                Commission, the Administration, and other agencies of 
                the executive branch;
                  (ix) a report from the Securities and Exchange 
                Commission with respect to actions taken to facilitate 
                and stabilize the access of small business concerns (as 
                defined in section 30101 of this title) to the 
                securities markets; and
                  (x) actions undertaken by the Securities and Exchange 
                Commission to simplify compliance by small business 
                investment companies with the requirements of 
                Investment Company Act of 1940 (15 U.S.C. 80a-1 et 
                seq.) and to facilitate the election to be taxed as 
                regulated investment companies under section 851 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 851); and
          (C) a full and detailed description or account relating to--
                  (i) the number of small business investment companies 
                the Administrator licensed under subtitle III, the 
                number of licensees (as defined in section 30101 of 
                this title) that have been placed in liquidation, and 
                the number of licensees that have surrendered their 
                licenses in the previous year, identifying the amount 
                of leverage (as defined in section 30101 of this title) 
                each has received and the type of leverage instruments 
                each has used;
                  (ii) the amount of leverage that each licensee 
                received in the previous year and the types of leverage 
                instruments each licensee used;
                  (iii) for each type of financing instrument, the 
                sizes, geographic locations, and other characteristics 
                of the small business investment companies using the 
                financing instrument, including the extent to which 
                small business investment companies have used the 
                leverage from each instrument to make small business 
                loans, equity investments, or both; and
                  (iv) the frequency with which each type of investment 
                instrument has been used in the current year and a 
                comparison of the current year with previous years.
Sec. 10702. Annual report on expenditures
  (a) In General.--As soon as practicable each fiscal year, the 
Administrator shall submit to the President a report showing as 
accurately as possible for the fiscal year the amount of funds 
appropriated to the Administration that the Administrator has expended 
in the conduct of each of the principal activities of the 
Administration such as lending, procurement, contracting, and providing 
technical and managerial aids.
  (b) Contents.--A report under subsection (a) shall disclose, 
separately for each type of loan made under sections 20503 to 20509 of 
this title and separately for all other loan programs, the number and 
amount of loans, the number of applications, the total amount applied 
for, and the number and amount of defaults for each type of equipment 
or service for which loans are authorized by subtitle II.
Sec. 10703. Annual report on secondary market operations
  (a) In General.--Not later than March 31 of each year, 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 secondary market 
operations during the preceding calendar year.
  (b) Contents.--A report under subsection (a) shall include--
          (1) the number and the total dollar amount of loans sold into 
        the secondary market and the distribution of such loans by size 
        of loan, size of lender, geographic location of lender, 
        interest rate, maturity, lender servicing fees, whether the 
        rate is fixed or variable, and premium paid;
          (2) the number and dollar amount of loans resold in the 
        secondary market with a distribution by size of loan, interest 
        rate, and premiums;
          (3) the number and total dollar amount of pools formed;
          (4) the number and total dollar amount of loans in each pool;
          (5) the dollar amount, interest rate, and terms on each loan 
        in each pool and whether the rate is fixed or variable;
          (6) the number, face value, interest rate, and terms of the 
        trust certificates issued for each pool;
          (7) to the maximum extent possible, the use by the lender of 
        the proceeds of sales of loans in the secondary market for 
        additional lending to small business concerns; and
          (8) an analysis of the information reported under paragraphs 
        (1) to (7) to assess the access of small business concerns to 
        capital at reasonable rates and terms as a result of secondary 
        market operations.
Sec. 10704. Annual report on impact of authority to impose secondary 
                    market fees
  (a) Definition of Small Business Concern Owned and Controlled by 
Minorities.--In this section, the term ``small business concerns owned 
and controlled by minorities'' includes a small business concern that 
is owned and controlled by individuals belonging to one of the 
designated groups listed in subclause (1)(B) of the contract clause 
described in section 24301(c) of this title.
  (b) Study, Monitoring, and Evaluation.--The Administrator shall 
study, monitor, and evaluate the impact of subparagraphs (A) to (E) of 
section 10332(d)(5) of this title on--
          (1) the ability of small business concerns owned and 
        controlled by minorities, small business concerns owned and 
        controlled by women, and other small business concerns to 
        obtain financing; and
          (2) the effectiveness, viability, and growth of the secondary 
        market authorized by section 10332(c) of this title.
  (c) Annual Reports.--
          (1) In general.--The Administrator shall annually 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 containing the Administrator's 
        findings and recommendations on the impact described in 
        subsection (b), specifically including changes in the interest 
        rates on financings provided to small business concerns owned 
        and controlled by minorities, small business concerns owned and 
        controlled by women, and other small business concerns through 
        the use of the secondary market.
          (2) Findings and recommendations.--The report under paragraph 
        (1) shall state findings and recommendations separately for the 
        ethnic and gender components of the small business concerns 
        described in paragraph (1).
Sec. 10705. Annual report on needs of small business concerns owned and 
                    controlled by veterans and small business concerns 
                    owned and controlled by service-disabled veterans
  (a) In General.--The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship and Committee on 
Veterans Affairs of the Senate and the Committee on Small Business and 
Committee on Veterans Affairs of the House of Representatives 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.
  (b) Contents.--A report under subsection (a) shall include 
information on--
          (1)(A) the availability of Administration programs for small 
        business concerns owned and controlled by veterans and small 
        business concerns owned and controlled by service-disabled 
        veterans; and
          (B) the degree of utilization of those programs by small 
        business concerns owned and controlled by veterans and small 
        business concerns owned and controlled by service-disabled 
        veterans during the preceding 12-month period, including 
        statistical information on such utilization as compared with 
        the small business community as a whole;
          (2) the percentage and dollar value of Federal contracts 
        awarded to small business concerns owned and controlled by 
        veterans and small business concerns owned and controlled by 
        service-disabled veterans during the preceding 12-month period, 
        based on the data collected under section 27513 of this title; 
        and
          (3) proposals to improve the access of small business 
        concerns owned and controlled by veterans and small business 
        concerns owned and controlled by service-disabled veterans to 
        the assistance made available by the United States.
Sec. 10706. Annual report on contract bundling
  (a) In General.--In March of each year, using information maintained 
under section 25105(e) of this title, 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 contract bundling.
  (b) Contents.--A report under subsection (a) shall include--
          (1) information on the number (arranged by industrial 
        classification) of small business concerns displaced as prime 
        contractors as a result of the award of bundled contracts by 
        Federal agencies; and
          (2) a description of the activities with respect to 
        previously bundled contracts of each Federal agency during the 
        preceding year, including--
                  (A) information on the number and total dollar amount 
                of all contract requirements that were bundled; and
                  (B) with respect to each bundled contract, 
                information on--
                          (i) the justification for the bundling of 
                        contract requirements;
                          (ii) the cost savings realized by bundling 
                        the contract requirements over the life of the 
                        contract;
                          (iii) the extent to which maintaining the 
                        bundled status of contract requirements is 
                        projected to result in continued cost savings;
                          (iv) the extent to which the bundling of 
                        contract requirements complied with the 
                        procuring agency's small business 
                        subcontracting plan, including the total dollar 
                        value awarded to small business concerns as 
                        subcontractors and the total dollar value 
                        previously awarded to small business concerns 
                        as prime contractors; and
                          (v) the impact of the bundling of contract 
                        requirements on small business concerns unable 
                        to compete as prime contractors for the 
                        consolidated requirements and on the industries 
                        of such small business concerns, including a 
                        description of any changes to the proportion of 
                        any such industry that is composed of small 
                        business concerns.
Sec. 10707. Annual report on business development program
  (a) In General.--Not later than April 30 of each year, the 
Administrator shall submit to Congress a report on the business 
development program.
  (b) Contents.--
          (1) Net worth of participating individuals.--A report under 
        subsection (a) shall disclose--
                  (A) the average personal net worth of individuals who 
                own and control small business concerns that were 
                initially certified for participation in the business 
                development program during the immediately preceding 
                fiscal year; and
                  (B) the dollar distribution of net worths, at $50,000 
                increments, of all such individuals determined to be 
                socially and economically disadvantaged.
          (2) Description and estimate of benefits and costs.--A report 
        under subsection (a) shall include a description and estimate 
        of the benefits and costs that have accrued to the economy and 
        the Government in the immediately preceding fiscal year due to 
        the operations of the program participants that were performing 
        contracts awarded under the business development program.
          (3) Program participants exiting the program.--
                  (A) In general.--A report under subsection (a) shall 
                include a compilation and evaluation of the former 
                program participants that exited the program during the 
                immediately preceding 3 fiscal years.
                  (B) Contents.--The compilation and evaluation under 
                subparagraph (A) shall--
                          (i)(I) disclose the number of former program 
                        participants that are actively engaged in 
                        business operations; and
                          (II) for those former program participants, 
                        separately detail the benefits and costs that 
                        have accrued to the economy during the 
                        immediately preceding fiscal year due to the 
                        operations of the former program participants;
                          (ii)(I) disclose the number of former program 
                        participants that have ceased or substantially 
                        curtailed business operations; and
                          (II) describe the reasons for the cessation 
                        or curtailment; and
                          (iii) disclose the number of former program 
                        participants that have been acquired by other 
                        business concerns or organizations owned and 
                        controlled by other than socially and 
                        economically disadvantaged individuals.
          (4) List of program participants.--A report under subsection 
        (a) shall include a list of all program participants that 
        participated in the program during the preceding fiscal year 
        that discloses, by State and by Administration region, for each 
        program participant--
                  (A) the name of the program participant;
                  (B) the race or ethnicity and gender of the 
                disadvantaged owners;
                  (C) the dollar value of all contracts received in the 
                preceding year;
                  (D) the dollar amount of advance payments received 
                under contracts awarded under the business development 
                program; and
                  (E) a description (including (if appropriate) an 
                estimate of the dollar value) of all benefits received 
                under sections 20511 and 23327 of this title during the 
                preceding year.
          (5) Contract and option value.--A report under subsection (a) 
        shall include the total dollar value of contracts and options 
        awarded under this chapter during the preceding fiscal year--
                  (A) expressed as an absolute amount;
                  (B) expressed as a percentage of total sales--
                          (i) of all program participants during that 
                        year; and
                          (ii) of program participants in each of the 9 
                        years of program participation; and
                  (C) expressed, at such dollar increments as the 
                Administrator considers appropriate, for each 6-digit 
                North American Industry Classification System code 
                under which the contracts and options were classified.
          (6) Additional resources or authorities.--A report under 
        subsection (a) shall include a description of such additional 
        resources or program authorities as may be required to provide 
        the types of services needed over the next 2-year period to 
        service the expected portfolio of program participants.
Sec. 10708. Annual report on contract participation goals
  (a) Report by the Administrator.--
          (1) In general.--The Administrator shall annually--
                  (A) compile and analyze the reports submitted by 
                Federal agencies under section 25106(c) of this title; 
                and
                  (B) submit the reports to the President and Congress.
          (2) Contents.--The Administrator's submission to the 
        President shall include--
                  (A)(i) the Governmentwide goals for participation by 
                qualified HUBZone small business concerns, small 
                business concerns owned and controlled by service-
                disabled veterans, small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals, small business concerns owned and 
                controlled by women, and other small business concerns; 
                and
                  (ii) the performance in attaining those goals;
                  (B)(i) the goals in effect for each Federal agency; 
                and
                  (ii) each Federal agency's performance in attaining 
                those goals;
                  (C)(i) an analysis of any failure to achieve the 
                Governmentwide goals or any Federal agency goals; and
                  (ii) the actions planned by each Federal agency and 
                approved by the Administrator to achieve the goals in 
                the succeeding fiscal year;
                  (D) for each Federal agency and on a Governmentwide 
                basis, the number and dollar value of contracts awarded 
                to qualified HUBZone small business concerns, small 
                business concerns owned and controlled by service-
                disabled veterans, small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals, small business concerns owned and 
                controlled by women, and other small business concerns 
                through--
                          (i) noncompetitive negotiation;
                          (ii) competition restricted to small business 
                        concerns owned and controlled by socially and 
                        economically disadvantaged individuals;
                          (iii) competition restricted to small 
                        business concerns; and
                          (iv) unrestricted competitions; and
                  (E) the number and dollar value of subcontracts 
                awarded to qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals, small business concerns 
                owned and controlled by women, and other small business 
                concerns.
  (b) Report by the President.--The President shall include the 
information required by subsection (a) in each annual report to 
Congress on the state of small business under section 45101(c) of this 
title.
Sec. 10709. Annual report on cost savings from breakout procurement 
                    center representatives
  The Administrator shall annually submit to Congress a report that--
          (1) describes the cost savings achieved during the year 
        covered by the report through the efforts of breakout 
        procurement center representatives assigned to major 
        procurement centers under section 25110 of this title;
          (2) contains an evaluation of the extent to which competition 
        has been increased as a result of those efforts; and
          (3) includes such other information relating to breakout 
        procurement center representatives as the Administrator 
        considers appropriate.
Sec. 10710. Annual reports on SBIRs, STTRs, and the FAST program
  (a) SBIR and STTR Programs.--
          (1) In general.--The Administrator, not less than annually, 
        shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Science and 
        Committee on Small Business of the House of Representatives a 
        report on the SBIRs (as defined in section 26101 of this title) 
        and STTRs (as defined in section 26101 of this title) of the 
        Federal agencies and the Administrator's information and 
        monitoring efforts relating to the SBIRs and STTRs.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A) the data on output and outcomes collected under 
                section 26302(a)(9) and paragraphs (9) and (14) of 
                section 26322 of this title;
                  (B) the number of proposals received from, and the 
                number and total amount of awards to, HUBZone small 
                business concerns under each of the SBIRs and STTRs; 
                and
                  (C) a description of the extent to which Federal 
                agencies are providing in a timely manner information 
                needed to maintain the database under section 26341 of 
                this title.
  (b) FAST Program.--The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Science and Committee on Small Business of the House of 
Representatives a report regarding--
          (1) the number and amount of awards provided and cooperative 
        agreements entered into under the FAST program (as defined in 
        section 26345 of this title) during the preceding year;
          (2) a list of recipients under section 26345 of this title, 
        including their location and the activities being performed 
        with the awards made or under the cooperative agreements 
        entered into; and
          (3) the mentoring networks and the mentoring database, as 
        provided for under section 26345(f) of this title, including--
                  (A) the status of the inclusion of mentoring 
                information in the database required by section 26341 
                of this title; and
                  (B) the status of the implementation and description 
                of the usage of the mentoring networks.
Sec. 10711. Annual report on women's business center program
  (a) In General.--The Administrator shall annually 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 effectiveness of all projects conducted under chapter 273.
  (b) Contents.--A report under subsection (a) shall include 
information concerning, with respect to each women's business center--
          (1) the number of individuals receiving assistance;
          (2) the number of startup business concerns formed;
          (3) the gross receipts of assisted business concerns;
          (4) the employment increases or decreases of assisted 
        business concerns;
          (5) to the maximum extent practicable, increases or decreases 
        in profits of assisted business concerns; and
          (6) the most recent analysis and determination made by the 
        Administrator under section 27307(a)(2) of this title.
Sec. 10712. Annual report of the Office of International Trade
  The Office of International Trade shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report 
that describes the progress that the Office of International Trade has 
made in carrying out section 10309.
Sec. 10713. Annual report on historical trends of the small business 
                    sector
  The Administrator shall publish annually a report giving a 
comparative analysis and interpretation of the historical trends of the 
small business sector as reflected by the data acquired under section 
10333 of this title.
Sec. 10714. Biennial report on accredited lenders program
  The Administrator shall biennially 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 implementation 
of section 33107 of this title that includes data on the number of 
qualified development companies (as defined in section 33101 of this 
title) designated as accredited lenders, their debenture guarantee 
volume, their loss rates, the average processing time on their 
guarantee applications, and such other information as the Administrator 
considers appropriate.
Sec. 10715. Annual report on premier certified lenders program
  (a) In General.--The Administration shall annually 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 implementation of section 33108 of this title.
  (b) Contents.--A report under subsection (a) shall include--
          (1) the number of certified development companies designated 
        as premier certified lenders;
          (2) the debenture guarantee volume of those certified 
        development companies;
          (3) a comparison of the loss rate of premier certified 
        lenders with the loss rate of accredited lenders under section 
        33107 of this title and the loss rate of other certified 
        development companies under chapter 331, specifically comparing 
        default rates and recovery rates on liquidations; and
          (4) such other information as the Administrator considers 
        appropriate.
Sec. 10716. Annual report on foreclosure and liquidation of loans under 
                    the certified development company program
  (a) In General.--Based on information provided by qualified 
development companies (as defined in section 33101 of this title) and 
the Administration, the Administrator shall annually 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 delegation of authority under section 33109 of this 
title.
  (b) Contents.--A report under subsection (a)--
          (1) shall disclose, with respect to each loan foreclosed or 
        liquidated by a qualified development company under section 
        33109 of this title, or for which losses were otherwise 
        mitigated by the qualified development company pursuant to a 
        workout plan under that section--
                  (A) the total cost of the project financed with the 
                loan;
                  (B) the total original dollar amount guaranteed by 
                the Administrator;
                  (C) the total dollar amount of the loan at the time 
                of liquidation, foreclosure, or mitigation of loss;
                  (D) the total dollar losses resulting from the 
                liquidation, foreclosure, or mitigation of loss; and
                  (E) the total recoveries resulting from the 
                liquidation, foreclosure, or mitigation of loss, both 
                as a percentage of the amount guaranteed and the total 
                cost of the project financed;
          (2) shall disclose, with respect to each qualified 
        development company to which authority is delegated under 
        section 33109 of this title, the totals of each of the amounts 
        described in subparagraphs (A) to (E) of paragraph (1);
          (3) shall disclose, with respect to all loans subject to 
        foreclosure, liquidation, or mitigation under section 33109 of 
        this title, the totals of each of the amounts described in 
        subparagraphs (A) to (E) of paragraph (1);
          (4) include a comparison between--
                  (A) the information provided under paragraph (3) with 
                respect to the 12-month period preceding the date on 
                which the report is submitted; and
                  (B) the same information with respect to loans 
                foreclosed and liquidated, or otherwise treated, by the 
                Administrator during the same period; and
          (5)(A) shall disclose the number of times that the 
        Administrator has failed to--
                  (i) approve or reject a liquidation plan in 
                accordance with subparagraph (A)(ii) or a workout plan 
                in accordance with subparagraph (C)(ii) of section 
                33109(c)(2) of this title; or
                  (ii) approve or deny a request for purchase of 
                indebtedness under section 33109(c)(2)(B)(ii) of this 
                title; and
          (B) include specific information regarding--
                  (i) the reasons for the Administrator's failure; and
                  (ii) any delays that resulted.
Sec. 10717. Reports on disaster assistance
  (a) Definitions.--In this section:
          (1) Major disaster update period.--The term ``major disaster 
        update period'', with respect to a major disaster, means the 
        period beginning on the date on which the President declares 
        the major disaster (including any major disaster relating to 
        which the Administrator declares eligibility for additional 
        disaster assistance under 21308 of this title) and ending on 
        the date on which the declaration terminates.
          (2) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, the Virgin Islands, Guam, American Samoa, and 
        any territory or possession of the United States.
  (b) Monthly Accounting Reports for Major Disasters.--
          (1) Reporting requirements.--Not later than the fifth 
        business day of each month during the applicable period for a 
        major disaster, the Administrator shall submit to the Committee 
        on Small Business and Entrepreneurship and Committee on 
        Appropriations of the Senate and the Committee on Small 
        Business and Committee on Appropriations of the House of 
        Representatives a report on the operation of the disaster 
        assistance programs for that major disaster during the 
        preceding month.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A)(i) the daily average lending volume, in number of 
                loans and dollars, of each category of loan; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report;
                  (B)(i) the weekly average lending volume, in number 
                of loans and dollars, of each category of loan; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report;
                  (C)(i) the amount of funding spent over the month for 
                each category of loan, both in amount of appropriations 
                and in program level; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report;
                  (D)(i) the amount of funding available for loans, in 
                amount of appropriations and in program level, for each 
                category of loan; and
                  (ii) the percentage by which each category has 
                increased or decreased since the previous report, 
                noting the source of any additional funding;
                  (E) an estimate of how long the available funding for 
                loans will last, based on the spending rate;
                  (F)(i) the amount of funding spent over the month for 
                staff engaged in the operation of the disaster 
                assistance programs;
                  (ii) the number of staff engaged in the operation of 
                the disaster assistance programs; and
                  (iii) the percentage by which the funding and number 
                of staff engaged in the operation of the disaster 
                assistance programs have increased or decreased since 
                the previous report;
                  (G)(i) the amount of funding spent over the month for 
                administrative costs of the disaster assistance 
                programs; and
                  (ii) the percentage by which spending for those 
                administrative costs has increased or decreased since 
                the previous report;
                  (H)(i) the amount of funding available for salaries 
                and expenses combined for operation of the disaster 
                assistance programs; and
                  (ii) the percentage by which that funding has 
                increased or decreased since the previous report, 
                noting the source of any additional funding; and
                  (I) an estimate of how long the available funding for 
                those salaries and expenses will last, based on the 
                spending rate.
  (c) Weekly Disaster Updates for Major Disasters.--
          (1) In general.--Each week during a major disaster update 
        period, 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 operation of the disaster assistance programs for 
        the major disaster area.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A)(i) the number of Administration staff performing 
                loan processing, field inspection, and other duties for 
                the major disaster; and
                  (ii) the allocations of the staff in the disaster 
                field offices, disaster recovery centers, workshops, 
                and other Administration offices nationwide;
                  (B)(i) the daily number of applications received from 
                applicants in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (C)(i) the daily number of applications pending 
                application entry from applicants in the major disaster 
                area; and
                  (ii) a breakdown of that number by State;
                  (D)(i) the daily number of applications withdrawn by 
                applicants in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (E)(i) the daily number of applications summarily 
                declined by the Administrator from applicants in the 
                major disaster area; and
                  (ii) a breakdown of that number by State;
                  (F)(i) the daily number of applications declined by 
                the Administrator from applicants in the major disaster 
                area; and
                  (ii) a breakdown of that number by State;
                  (G)(i) the daily number of applications in process 
                from applicants in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (H)(i) the daily number of applications approved by 
                the Administrator from applicants in the major disaster 
                area; and
                  (ii) a breakdown of that number by State;
                  (I)(i) the daily dollar amount of applications 
                approved by the Administrator from applicants in the 
                major disaster area; and
                  (ii) a breakdown of that number by State;
                  (J)(i) the daily number of loans disbursed, both 
                partially and fully, by the Administrator to applicants 
                in the major disaster area; and
                  (ii) a breakdown of that number by State;
                  (K)(i) the daily dollar amount of loans disbursed, 
                both partially and fully, to applicants in the major 
                disaster area; and
                  (ii) a breakdown of that number by State;
                  (L)(i) the number of applications approved, including 
                dollar amount approved, and applications partially and 
                fully disbursed, including dollar amounts, since the 
                last report under paragraph (1); and
                  (M)(i) the declaration date, physical damage closing 
                date, and economic injury closing date for the major 
                disaster; and
                  (ii) the number of counties in the major disaster 
                area.
  (d) Periods When Additional Disaster Assistance Is Made Available.--
          (1) In general.--During any period for which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title, the Administrator 
        shall, on a monthly basis, 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 disaster assistance operations of the Administrator with 
        respect to the applicable major disaster.
          (2) Contents.--A report under paragraph (1) shall specify--
                  (A) the number of applications for disaster 
                assistance distributed;
                  (B) the number of applications for disaster 
                assistance received;
                  (C) the average time for the Administrator to approve 
                or disapprove an application for disaster assistance;
                  (D) the number of disaster loans approved;
                  (E) the average time for initial disbursement of 
                disaster loan proceeds; and
                  (F) the dollar amount of disaster loan proceeds 
                disbursed.
  (e) Notice of Need for Supplemental Funds.--On the date on which the 
Administrator notifies any committee of the Senate or the House of 
Representatives that supplemental funding is necessary for the disaster 
assistance programs in any fiscal year, the Administrator shall notify 
in writing the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives regarding the need for supplemental funds for the 
disaster assistance programs.
  (f) Report on Contracting.--
          (1) In general.--Not later than 6 months after the date on 
        which the President declares a major disaster, and every 6 
        months thereafter until the date that is 18 months after the 
        date on which the major disaster is declared, 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 regarding 
        Federal contracts awarded as a result of the major disaster.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A) the number of contracts awarded as a result of 
                the major disaster;
                  (B) the number of contracts awarded to small business 
                concerns as a result of the major disaster;
                  (C) the number of contracts awarded to women-owned 
                business concerns and minority-owned business concerns 
                as a result of the major disaster; and
                  (D) the number of contracts awarded to business 
                concerns local to the major disaster area as a result 
                of the major disaster.
  (g) Annual Reports on Disaster Assistance.--
          (1) In general.--Not later than 45 days after the end of a 
        fiscal year, 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 disaster assistance operations of the 
        Administration for the fiscal year.
          (2) Contents.--A report under paragraph (1) shall--
          (1) specify the number of Administration personnel involved 
        in disaster assistance operations;
          (2) describe any material changes to disaster assistance 
        operations, such as changes to technologies used or to 
        personnel responsibilities;
          (3) describe and assess the effectiveness of the 
        Administrator in responding to disasters during the fiscal 
        year, including a description of the number and dollar amounts 
        of loans made for damage and for economic injury; and
          (4) describe the plans of the Administrator for preparing to 
        respond to disasters during the next fiscal year.

                          CHAPTER 109--FUNDING

Sec.
10901.  Commitments in full amounts provided by law.
10902.  Program levels.
10903.  Authorization of appropriations.
Sec. 10901. Commitments in full amounts provided by law
  (a) In General.--Notwithstanding any other provision of law, the 
Administrator shall enter into commitments for direct loans and to 
guarantee loans, debentures, payment of rentals, or other amounts due 
under qualified contracts and other types of financial assistance, and 
enter into commitments to purchase debentures and preferred securities 
and to guarantee sureties against loss pursuant to programs under 
subtitles II and III, in the full amounts provided by law subject only 
to--
          (1) the availability of qualified applications; and
          (2) limitations contained in appropriations Acts.
  (b) Effect of Section.--Nothing in this section authorizes the 
Administrator to reduce or limit the authority of the Administrator to 
enter into a commitment described in subsection (a).
  (c) Multiple Fiscal Years.--Subject to approval in appropriations 
Acts, amounts authorized for preferred securities, debentures, or 
participating securities under chapter 303 may be obligated in one 
fiscal year and disbursed or guaranteed in any one or more of the 4 
subsequent fiscal years.
Sec. 10902. Program levels
  (a) Fiscal Year 2005.--The following program levels are authorized 
for fiscal year 2005:
          (1) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make--
                  (A) $75,000,000 in technical assistance grants, as 
                provided in chapter 211; and
                  (B) $105,000,000 in direct loans, as provided in 
                chapter 211.
          (2) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make $23,050,000,000 in deferred 
        participation loans and other financings. Of that sum, the 
        Administrator may make--
                  (A) $16,500,000,000 in general business loans, as 
                provided in division B of subtitle II;
                  (B) $6,000,000,000 in certified development company 
                financings, as provided in section 20507 of this title 
                and chapter 331;
                  (C) $500,000,000 in loans, as provided in section 
                20512 of this title; and
                  (D) $50,000,000 in loans, as provided in chapter 211.
          (3) For the programs authorized by chapter 303, the 
        Administrator may make--
                  (A) $4,250,000,000 in purchases of participating 
                securities; and
                  (B) $3,250,000,000 in guarantees of debentures.
          (4) For the programs authorized by chapter 321, the 
        Administrator may enter into guarantees not to exceed 
        $6,000,000,000, of which not more than 50 percent may be in 
        bonds approved under section 32102(a)(4) of this title.
          (5) The Administrator may make grants or enter into 
        cooperative agreements for a total amount of $7,000,000 for 
        SCORE.
  (b) Fiscal Year 2006.--The following program levels are authorized 
for fiscal year 2006:
          (1) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make--
                  (A) $80,000,000 in technical assistance grants, as 
                provided in chapter 211; and
                  (B) $110,000,000 in direct loans, as provided in 
                chapter 211.
          (2) For the programs authorized by this subtitle and subtitle 
        II, the Administrator may make $25,050,000,000 in deferred 
        participation loans and other financings. Of that sum, the 
        Administrator may make--
                  (A) $17,000,000,000 in general business loans, as 
                provided in division B of subtitle II;
                  (B) $7,500,000,000 in certified development company 
                financings, as provided in section 20507 of this title 
                and chapter 331;
                  (C) $500,000,000 in loans, as provided in section 
                20512 of this title; and
                  (D) $50,000,000 in loans, as provided in chapter 211.
          (3) For the programs authorized by chapter 303, the 
        Administrator may make--
                  (A) $4,500,000,000 in purchases of participating 
                securities; and
                  (B) $3,500,000,000 in guarantees of debentures.
          (4) For the programs authorized by chapter 321, the 
        Administrator may enter into guarantees not to exceed 
        $6,000,000,000, of which not more than 50 percent may be in 
        bonds approved under section 32102(a)(4) of this title.
          (5) The Administrator may make grants or enter into 
        cooperative agreements for a total amount of $7,000,000 for 
        SCORE.
  (c) Amount of Deferred Participation Loans.--Except as may be 
otherwise specifically provided by law, the amount of deferred 
participation loans authorized in this section--
          (1) means the net amount of the loan principal guaranteed by 
        the Administrator and does not include any amount that is not 
        guaranteed; and
          (2) shall be available for a national program, except that 
        the Administrator may use not more than an amount equal to 10 
        percent of the amount authorized each year for any special or 
        pilot program directed to identified sectors of the small 
        business community or to specific geographic regions of the 
        United States.
Sec. 10903. Authorization of appropriations
  (a) Certain Administrative Expenses.--For each fiscal year, there are 
authorized to be appropriated such sums as are necessary, to remain 
available until expended--
          (1) to carry out the small business development center 
        program, but not to exceed the annual funding level specified 
        in section 27102 of this title;
          (2) to pay the expenses of the National Small Business 
        Development Center Advisory Board under section 27109 of this 
        title;
          (3) to pay the expenses of the information sharing system 
        under section 27104(j) of this title;
          (4) to pay the expenses of the Association for conducting the 
        accreditation program under section 27111 of this title;
          (5) to pay the expenses of the Administration, including 
        salaries of examiners, for conducting examinations as part of 
        the accreditation program conducted by the Association; and
          (6) to pay for small business development center grants as 
        directed by Congress.
  (b) Programs for Which Program Levels Are Established Under Section 
10902.--
          (1) In general.--There are authorized to be appropriated to 
        the Administration for each of fiscal years 2005 and 2006 such 
        sums as are necessary to carry out--
                  (A) the provisions of this subtitle and subtitle II 
                not elsewhere provided for (including salaries and 
                expenses of the Administration and necessary loan 
                capital for loans under the disaster loan program); and
                  (B) subtitle III.
          (2) Limitations.--Notwithstanding any other provision of this 
        subsection, for each of fiscal years 2005 and 2006, 
        respectively--
                  (A) no funds are authorized to be used as loan 
                capital for the loan program authorized by section 
                20512 of this title except by transfer from another 
                Federal agency to the Administration, unless the 
                program level authorized for general business loans 
                under subsection (a)(2)(A) or (b)(2)(A) of section 
                10902 of this title is fully funded; and
                  (B) the Administrator may not approve loans on behalf 
                of the Administration or on behalf of any other Federal 
                agency, by contract or otherwise, under terms or 
                conditions other than those specifically authorized 
                under this subtitle or subtitle II or III, except that 
                the Administrator may approve loans under section 20512 
                of this title in gross amounts of not more than 
                $2,000,000.
  (c) Office of Advocacy.--There is authorized to be appropriated to 
carry out section 10307 of this title $1,000,000, to remain available 
until expended.
  (d) Office of Veterans Business Development.--There are authorized to 
be appropriated to carry out section 10313 of this title--
          (1) $1,500,000 for fiscal year 2005; and
          (2) $2,000,000 for fiscal year 2006.
  (e) Losses and Interest Subsidies.--There are authorized to be 
appropriated for each fiscal year such sums as are necessary for losses 
and interest subsidies incurred by the accounts referred to in section 
10332(a)(1) of this title.
  (f) HUBZone Program.--There is authorized to be appropriated to carry 
out chapter 253 $10,000,000 for each of fiscal years 2004 through 2006.
  (g) FAST Program.--
          (1) In general.--There is authorized to be appropriated to 
        carry out the FAST program (including mentoring networks) under 
        section 26345 of this title $10,000,000 for each of fiscal 
        years 2001 through 2005.
          (2) Mentoring database.--Of the total amount made available 
        under paragraph (1) for fiscal years 2001 through 2005, a 
        reasonable amount, not to exceed a total of $500,000, may be 
        used by the Administrator to carry out section 26345(f)(3) of 
        this title.
  (h) Small Business Development Center Program.--There are authorized 
to be appropriated to carry out chapter 271--
          (1) $130,000,000 for fiscal year 2005; and
          (2) $135,000,000 for fiscal year 2006.
  (i) National Veterans Business Development Corporation.--
          (1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to the National Veterans Business 
        Development Corporation to carry out section 27514 of this 
        title--
                  (A) $4,000,000 for fiscal year 2001;
                  (B) $4,000,000 for fiscal year 2002;
                  (C) $2,000,000 for fiscal year 2003; and
                  (D) $2,000,000 for fiscal year 2004.
          (2) Matching requirement.--
                  (A) Fiscal year 2002.--The amount made available to 
                the National Veterans Business Development Corporation 
                for fiscal year 2002 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 National Veterans Business Development 
                Corporation for fiscal year 2003 or 2004 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 National Veterans Business 
        Development Corporation shall institute and implement a plan to 
        raise private funds and become a self-sustaining corporation.
  (j) Business Grants and Cooperative Agreements.--There is authorized 
to be appropriated to carry out section 29102 of this title $6,600,000 
for each of fiscal years 2001 through 2006, to remain available until 
expended.
  (k) Paul D. Coverdell Drug-Free Workplace Program.--
          (1) In general.--There is authorized to be appropriated to 
        carry out section 29104 of this title (other than section 
        29104(b)(2) of this title) $5,000,000 for each of fiscal years 
        2005 and 2006. Amounts made available under this paragraph 
        shall remain available until expended.
          (2) Small business development centers.--Of the total amount 
        made available under paragraph (1) for each of fiscal years 
        2005 and 2006, not more than the greater of 10 percent or 
        $500,000 may be used to carry out section 27104(b)(20) of this 
        title.
          (3) Additional authorization for technical assistance 
        grants.--There are authorized to be appropriated to carry out 
        section 29104(b)(2) of this title $1,500,000 for each of fiscal 
        years 2005 and 2006. Amounts made available under this 
        paragraph shall remain available until expended.
          (4) Limitation on administrative costs.--Not more than 5 
        percent of the total amount made available under this 
        subsection for any fiscal year shall be used for administrative 
        costs (determined without regard to the administrative costs of 
        eligible intermediaries).
  (l) New Markets Venture Capital Company Program.--
          (1) In general.--There are authorized to be appropriated for 
        fiscal years 2001 through 2006, to remain available until 
        expended, the following sums:
                  (A) Such subsidy budget authority as is necessary to 
                guarantee $150,000,000 of debentures under chapter 305.
                  (B) $30,000,000 to make grants under chapter 305.
          (2) Funds collected for examinations.--Funds deposited under 
        section 30512(d) of this title are authorized to be 
        appropriated only for the costs of examinations under section 
        30512 of this title and for the costs of other oversight 
        activities with respect to the new markets venture capital 
        company program.
  (m) Renewable Fuel Capital Investment Company Program.--
          (1) In general.--Subject to the availability of 
        appropriations, the Administrator may make $15,000,000 in 
        operational assistance grants under section 30707 of this title 
        for each of fiscal years 2008 and 2009.
          (2) Funds collected for examinations.--Funds deposited under 
        section 30711(d) of this title are authorized to be 
        appropriated only for the costs of examinations under section 
        30711 of this title and for the costs of other oversight 
        activities with respect to the renewable fuel capital 
        investment company program.

    Subtitle II--Loan, Contracting, and Related Assistance Programs

                     DIVISION A--GENERAL PROVISIONS

                    CHAPTER 201--GENERAL PROVISIONS

Sec.
20101.  Certification of compliance with child support obligations.
20102.  Authorities in carrying out programs for small business concerns 
          in areas with high proportions of unemployed or low-income 
          individuals and small business concerns owned by low-income 
          individuals.
20103.  Extension or renewal of loans.
20104.  Deferral of repayment for active duty reservists.
20105.  Ownership interest arising from community property law.
Sec. 20101. Certification of compliance with child support obligations
  (a) In General.--A recipient of financial assistance under this 
subtitle shall certify that the recipient is not more than 60 days 
delinquent under the terms of any--
          (1) administrative order;
          (2) court order; or
          (3) repayment agreement entered into between the recipient 
        and the custodial parent or State agency providing child 
        support enforcement services;
that requires the recipient to pay child support (as defined in section 
459(i) of the Social Security Act (42 U.S.C. 659(i))).
  (b) Enforcement.--The Administrator shall promulgate such regulations 
as are necessary to enforce compliance with this section.
Sec. 20102. Authorities in carrying out programs for small business 
                    concerns in areas with high proportions of 
                    unemployed or low-income individuals and small 
                    business concerns owned by low-income individuals
  In carrying out section 20504 of this title and the business 
development program, the Administrator may--
          (1) use, with their consent, the services and facilities of 
        Federal agencies without reimbursement, and, with the consent 
        of any State or political subdivision of a State, accept and 
        use the services and facilities of the State or subdivision 
        without reimbursement;
          (2) accept, in the name of the Administration, and employ or 
        dispose of in furtherance of the purposes of this subtitle, any 
        money or property, real, personal, or mixed, tangible, or 
        intangible, received by gift, devise, bequest, or otherwise;
          (3) accept voluntary and uncompensated services, 
        notwithstanding section 1342 of title 31; and
          (4)(A) employ experts and consultants or organizations of 
        experts and consultants as authorized by section 3109 of title 
        5, except that no individual may be employed under this 
        subsection for more than 100 days in any fiscal year;
          (B) compensate individuals employed under subparagraph (A) at 
        rates not in excess of the daily equivalent of the highest rate 
        payable under section 5332 of title 5, including travel time;
          (C) allow individuals employed under subparagraph (A), while 
        away from their homes or regular places of business, travel 
        expenses (including per diem in lieu of subsistence) as 
        authorized by section 5703 of title 5 for persons in the 
        Government service employed intermittently, while so employed; 
        and
          (D) notwithstanding section 3109(b) of title 5, renew 
        contracts for employment under subparagraph (A) annually.
Sec. 20103. Extension or renewal of loans
  (a) In General.--The Administrator may extend the maturity of or 
renew a loan under the general business loan program, disaster loan 
program, or microloan program for additional periods not to exceed 10 
years beyond the period stated in the loan if the extension or renewal 
will aid in the orderly liquidation of the loan.
  (b) Inapplicability to Certain Disaster Loans.--Subsection (a) does 
not apply to a loan under the disaster loan program that has a term of 
more than 20 years.
Sec. 20104. Deferral of repayment for active duty reservists
  (a) Definitions.--In this section:
          (1) 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.
          (2) 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 the small business concern.
          (3) Period of military conflict.--The term ``period of 
        military conflict'' means--
                  (A) a period of war declared by Congress;
                  (B) a period of national emergency declared by 
                Congress or by the President; or
                  (C) a period of a contingency operation (as defined 
                in section 101(a) of title 10).
          (4) Qualified borrower.--The term ``qualified borrower'' 
        means--
                  (A) an individual who is an eligible reservist and 
                who received a direct loan under the general business 
                loan program or a disaster assistance program before 
                being ordered to active duty; or
                  (B) a small business concern that received a direct 
                loan under the general business loan program or a 
                disaster assistance program before an eligible 
                reservist, who is an essential employee, was ordered to 
                active duty.
  (b) Deferral of Direct Loans.--
          (1) In general.--The Administrator shall, on written request, 
        defer repayment of principal and interest due on a direct loan 
        made under the general business loan program or a disaster 
        assistance program if the loan was incurred by a qualified 
        borrower.
          (2) Period of deferral.--The period of deferral for repayment 
        under paragraph (1) shall begin on the date on which the 
        eligible reservist is ordered to active duty and terminate on 
        the date that is 180 days after the date on which the eligible 
        reservist is discharged or released from active duty.
          (3) Interest rate reduction during deferral.--Notwithstanding 
        any other provision of law, during the period of deferral under 
        paragraph (2), the Administrator may reduce the interest rate 
        on a loan qualifying for a deferral under this subsection.
  (c) Deferral of Loan Guarantees and Other Financings.--The 
Administrator shall--
          (1) encourage intermediaries participating in the microloan 
        program to defer repayment of a microloan made with proceeds 
        made available under the microloan program, if the microloan 
        was incurred by a small business concern that is eligible to 
        apply for assistance under section 21303 of this title; and
          (2) establish guidelines to--
                  (A) encourage lenders and other intermediaries to 
                defer repayment of, or provide other relief relating 
                to--
                          (i) loan guarantees under the general 
                        business loan program and financings under the 
                        certified development company program that were 
                        incurred by small business concerns that are 
                        eligible to apply for assistance under section 
                        21303 of this title; and
                          (ii) loan guarantees provided under the 
                        microloan program if the intermediary provides 
                        relief to a small business concern under this 
                        subsection; and
                  (B) 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 subsection.
Sec. 20105. Ownership interest arising from community property law
  Ownership requirements to determine the eligibility of a small 
business concern that applies for assistance under any credit program 
under this subtitle shall be determined without regard to any ownership 
interest of a spouse arising solely from the application of the 
community property law of a State for purposes of determining marital 
interests.

               DIVISION B--GENERAL BUSINESS LOAN PROGRAM

                   CHAPTER 203--GENERAL PURPOSE LOANS

Sec.
20301.  Loan authority.
20302.  Methods of participation.
20303.  No credit elsewhere.
20304.  Sound and secure requirement.
20305.  Level of participation in guaranteed loans.
20306.  Maximum loan amounts.
20307.  Interest rates.
20308.  Prepayment charges.
20309.  Maximum term.
20310.  Deferment of payments.
20311.  Guarantee fees.
20312.  Certified lenders program.
20313.  Penalty fee on late payment.
20314.  Yearly fee.
20315.  Notification to Congress of significant policy or administrative 
          changes.
20316.  Pilot programs.
20317.  Calculation of subsidy rate.
20318.  Leasing.
20319.  Real estate appraisals.
20320.  Express loan program.
20321.  Loan application preparation and loan servicing by qualified 
          development companies.
20322.  Increased veteran/reservist participation program.
Sec. 20301. Loan authority
  To the extent and in such amounts as are provided in advance in 
appropriation Acts, the Administrator may make loans to small business 
concerns (including a small business concern owned by a qualified 
Indian tribe) for plant acquisition, construction, conversion, or 
expansion, including the acquisition of land, material, supplies, 
equipment, and working capital.
Sec. 20302. Methods of participation
  The Administrator may make a loan under section 20301 of this title--
          (1) directly; or
          (2) in cooperation with a bank or other lending institution 
        or any other entity through an agreement to participate on an 
        immediate or deferred (guaranteed) basis.
Sec. 20303. No credit elsewhere
  (a) In General.--No financial assistance shall be extended under the 
general business loan program if the applicant can obtain credit 
elsewhere.
  (b) Immediate Participation.--No immediate participation may be 
purchased unless it is shown that a deferred participation is not 
available.
  (c) Direct Financing.--No direct financing may be made unless it is 
shown that a participation is not available.
Sec. 20304. Sound and secure requirement
  (a) In General.--A loan made under the general business loan program 
shall be of such sound value or so secured as reasonably to ensure 
repayment.
  (b) Reasonable Doubt.--In applying subsection (a) in the case of a 
loan to assist a public or private organization for the disabled or to 
assist a disabled individual as provided in section 20503 of this 
title, any reasonable doubt shall be resolved in favor of the 
applicant.
  (c) Energy Measures.--Recognizing that greater risk may be associated 
with a loan for an energy measure as provided in section 20505 of this 
title, in applying subsection (a) in the case of such a loan--
          (1) factors in determining sound value shall include--
                  (A) quality of the product or service;
                  (B) technical qualifications of the applicant or 
                employees of the applicant;
                  (C) sales projections; and
                  (D) the financial status of the applicant; and
          (2) the loan need not be as sound as is generally required 
        for a loan under the general business loan program.
  (d) No Delegation of Authority.--The authority conferred by this 
subsection shall be exercised solely by Administration personnel and 
shall not be delegated to other than Administration personnel.
Sec. 20305. Level of participation in guaranteed loans
  (a) In General.--Except as provided in subsection (b), in an 
agreement to participate in a loan on a deferred basis under the 
general business loan program (including a loan made under the 
preferred lenders program), participation by the Administrator shall be 
equal to--
          (1) 75 percent of the balance of the financing outstanding at 
        the time of disbursement of the loan, if the balance exceeds 
        $150,000; or
          (2) 85 percent of the balance of the financing outstanding at 
        the time of disbursement of the loan, if the balance is less 
        than or equal to $150,000.
  (b) Reduced Participation on Request.--
          (1) In general.--The guarantee percentage specified by 
        subsection (a) for a loan under the general business loan 
        program may be reduced on the request of the participating 
        lender.
          (2) Prohibition.--The Administrator shall not use the 
        guarantee percentage requested by a participating lender under 
        paragraph (1) as a criterion for establishing priorities in 
        approving loan guarantee requests under the general business 
        loan program.
  (c) Participation Under Export Working Capital Program.--
Notwithstanding subsection (a), under an agreement to participate in a 
loan on a deferred basis under the export working capital program, 
participation by the Administrator shall not exceed 90 percent.
  (d) Refinancing of Indebtedness.--On any portion of a loan used to 
refinance indebtedness held by a bank or other lending institution, the 
Administrator shall limit the amount of deferred participation to 80 
percent of the amount of the loan at the time of disbursement.
Sec. 20306. Maximum loan amounts
  (a) In General.--Except as provided in subsection (b) and subject to 
subsection (c), no loan shall be made to a borrower under the general 
business loan program if the total amount outstanding and committed (on 
a deferred basis, through a participation on an immediate basis, or 
directly) to the borrower under the general business loan program and 
microloan program would exceed $1,500,000 (or if the gross loan amount 
would exceed $2,000,000).
  (b) Small Business Concern in Industry Engaged in or Adversely 
Affected by International Trade.--A loan solely for the purposes 
provided in section 20510 of this title may be made under the general 
business loan program and microloan program if the total amount 
outstanding and committed (on a deferred basis) to the borrower under 
the general business loan program would not exceed $1,750,000, of which 
not more than $1,250,000 may be used for working capital, supplies, or 
financings under section 20508 of this title for export purposes.
  (c) Direct Loans; Participation on an Immediate Basis.--No loan shall 
be made under the general business loan program, either directly or in 
cooperation with banks or other lending institutions through agreements 
to participate on an immediate basis, if the amount would exceed 
$350,000.
Sec. 20307. Interest rates
  (a) Maximum Rate Prescribed by the Administrator.--Notwithstanding 
the provisions of the constitution of any State or the laws of any 
State limiting the rate or amount of interest that may be charged, 
taken, received, or reserved, the maximum legal rate of interest on a 
financing made on a deferred basis under the general business loan 
program shall not exceed a rate prescribed by the Administrator.
  (b) Direct Loans and Immediate Participation Loans.--The rate of 
interest for the Administrator's share of any direct loan or immediate 
participation loan under the general business loan program shall not 
exceed the current average market yield on outstanding marketable 
obligations of the United States with remaining periods to maturity 
comparable to the average maturities of such loans and adjusted to the 
nearest 0.125 percent, and an additional amount as determined by the 
Administrator, but not to exceed one percent per year.
  (c) Preferred Lenders Program.--The maximum interest rate for a loan 
under the general business loan program that is guaranteed under the 
preferred lenders program shall not exceed the maximum interest rate, 
as determined by the Administrator, applicable to other loans 
guaranteed under the general business loan program.
  (d) Loans To Assist the Disabled.--In the case of a loan under the 
general business loan program to assist a public or private 
organization for the disabled or to assist a disabled individual as 
provided in section 20503 of this title, the interest rate shall be 3 
percent per year.
  (e) Payment of Accrued Interest.--
          (1) In general.--A bank or other lending institution making a 
        claim for payment on the guaranteed portion of a loan made 
        under the general business loan program shall be paid the 
        accrued interest due on the loan from the earliest date of 
        default to the date of payment of the claim at a rate not to 
        exceed the rate of interest on the loan on the date of default, 
        minus one percent.
          (2) Loans sold on secondary market.--If a loan described in 
        paragraph (1) is sold on the secondary market, the amount of 
        interest paid to a bank or other lending institution described 
        in that paragraph from the earliest date of default to the date 
        of payment of the claim shall be no more than the agreed upon 
        rate, minus one percent.
          (3) Applicability.--Paragraphs (1) and (2) do not apply to 
        loans made on or after October 1, 2000.
Sec. 20308. Prepayment charges
  (a) In General.--A borrower that prepays a loan guaranteed under the 
general business loan program shall remit to the Administrator a 
subsidy recoupment fee calculated in accordance with subsection (b) 
if--
          (1) the loan is for a term of not less than 15 years;
          (2) the prepayment is voluntary;
          (3) the amount of prepayment in any calendar year is more 
        than 25 percent of the outstanding balance of the loan; and
          (4) the prepayment is made within the first 3 years after 
        disbursement of the loan proceeds.
  (b) Subsidy Recoupment Fee.--The subsidy recoupment fee charged under 
subsection (a) shall be--
          (1) 5 percent of the amount of prepayment, if the borrower 
        prepays during the first year after disbursement;
          (2) 3 percent of the amount of prepayment, if the borrower 
        prepays during the second year after disbursement; and
          (3) one percent of the amount of prepayment, if the borrower 
        prepays during the third year after disbursement.
Sec. 20309. Maximum term
  (a) In General.--Except as provided in subsection (b), no loan 
(including a loan renewal or extension) shall be made under the general 
business loan program for a term or terms exceeding 25 years.
  (b) Exception.--Any portion of a loan that is made under the general 
business loan program for the purpose of acquiring real property or 
constructing, converting, or expanding a facility may have a term of 25 
years plus such additional period as is estimated may be required to 
complete the construction, conversion, or expansion.
Sec. 20310. Deferment of payments
  The Administrator may defer payments on the principal of a loan under 
the general business loan program for a grace period, and use such 
other methods as the Administrator considers necessary and appropriate, 
to ensure the successful establishment and operation of a small 
business concern.
Sec. 20311. Guarantee fees
  (a) In General.--With respect to a loan guaranteed under the general 
business loan program (other than a loan that is repayable in one year 
or less), the Administrator shall collect a guarantee fee, which shall 
be payable by the participating lender, and may be charged to the 
borrower, as follows:
          (1) A guarantee fee of not to exceed 2 percent of the 
        deferred participation share of a total loan amount that is not 
        more than $150,000.
          (2) A guarantee fee of not to exceed 3 percent of the 
        deferred participation share of a total loan amount that is 
        more than $150,000, but not more than $700,000.
          (3) A guarantee fee of not to exceed 3.5 percent of the 
        deferred participation share of a total loan amount that is 
        more than $700,000.
          (4) In addition to the guarantee fee under paragraph (3), a 
        guarantee fee equal to 0.25 percent of any portion of the 
        deferred participation share that is more than $1,000,000.
  (b) Retention of Certain Fees.--A lender participating in the general 
business loan program may retain not more than 25 percent of a fee 
collected under subsection (a)(1).
Sec. 20312. Certified lenders program
  (a) In General.--The Administrator may establish a certified lenders 
program for lenders that establish their knowledge of Administration 
laws (including regulations) concerning the guaranteed loan program and 
their proficiency in program requirements.
  (b) Suspension or Revocation.--The designation of a lender as a 
certified lender shall be suspended or revoked at any time that the 
Administrator determines that the lender is not adhering to regulations 
prescribed by the Administrator or that the loss experience of the 
lender is excessive as compared with that of other lenders, but the 
suspension or revocation shall not affect any outstanding guarantee.
  (c) Uniform and Simplified Loan Form.--To encourage all lending 
institutions and other entities making loans under the general business 
loan program to provide loans of $50,000 or less in guarantees to 
eligible small business loan applicants, the Administrator shall 
develop, and allow participating lenders to solely use, a uniform and 
simplified loan form for such loans.
  (d) Loan Liquidation.--
          (1) In general.--The Administrator may permit a lender 
        participating in the certified lenders program to liquidate a 
        loan made with a guarantee from the Administrator in accordance 
        with a liquidation plan approved by the Administrator.
          (2) Automatic approval.--If the Administrator does not 
        approve or deny a request for approval of a liquidation plan 
        within 10 business days after the date on which the request is 
        made (or with respect to any routine liquidation activity under 
        such a plan, within 5 business days), the request shall be 
        deemed to be approved.
Sec. 20313. Penalty fee on late payment
  The Administrator may permit a participating lender to impose and 
collect a reasonable penalty fee on late payment of a loan guaranteed 
under the general business loan program in an amount not to exceed 5 
percent of the monthly loan payment per month plus interest.
Sec. 20314. Yearly fee
  (a) Definition of Cost.--In this section, the term ``cost'' has the 
meaning given the term in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a).
  (b) Fee.--With respect to a loan approved under the general business 
loan program, the Administrator shall assess, collect, and retain a 
fee, not to exceed 0.55 percent per year of the outstanding balance of 
the deferred participation share of the loan, in an amount established 
once annually by the Administrator in the Administrator's annual budget 
request to Congress, as necessary to reduce to zero the cost to the 
Administrator of making guarantees under the general business loan 
program.
  (c) Payer.--The yearly fee assessed under subsection (b) shall be 
payable by the participating lender and shall not be charged to the 
borrower.
  (d) Lowering of Borrower Fees.--If the Administrator determines that 
fees paid by lenders and by small business borrowers for guarantees 
under the general business loan program may be reduced, consistent with 
reducing to zero the cost to the Administrator of making such 
guarantees--
          (1) the Administrator shall first consider reducing fees paid 
        by small business borrowers under paragraphs (1) to (3) of 
        section 20311(a) of this title, to the maximum extent possible; 
        and
          (2) fees paid by small business borrowers shall not be 
        increased above the levels in effect on December 8, 2004.
Sec. 20315. Notification to Congress of significant policy or 
                    administrative changes
  Not later than 15 days before making any significant policy or 
administrative change affecting the operation of the general business 
loan program, the Administrator shall notify the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives of the change.
Sec. 20316. Pilot programs
  (a) Definition of Pilot Program.--In this section, the term ``pilot 
program'' means a lending program initiative, project, innovation, or 
other activity not specifically authorized by law.
  (b) Limitation.--Not more than 10 percent of the number of loans 
guaranteed in any fiscal year under the general business loan program 
may be awarded as part of a pilot program commenced on or after October 
1, 1996.
  (c) Low Documentation Loan Program.--
          (1) In general.--The Administrator may carry out the low 
        documentation loan program for loans of $100,000 or less only 
        through lenders with significant experience in making small 
        business loans.
          (2) Regulations.--The Administrator shall promulgate 
        regulations defining the experience necessary for participation 
        as a lender in the low documentation loan program.
Sec. 20317. Calculation of subsidy rate
  All fees, interest, and profits received and retained by the 
Administrator under the general business loan program shall be included 
in the calculations made by the Director of the Office of Management 
and Budget to offset the cost (as defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administrator of 
purchasing and guaranteeing loans under this subtitle.
Sec. 20318. Leasing
  In addition to such other lease arrangements as the Administrator may 
authorize, a borrower may permanently lease to one or more tenants not 
more than 20 percent of any property constructed with the proceeds of a 
loan guaranteed under the general business loan program if the borrower 
permanently occupies and uses not less than 60 percent of the total 
business space in the property.
Sec. 20319. Real estate appraisals
  With respect to a loan under the general business loan program that 
is secured by commercial real property, an appraisal of the property by 
a State licensed or certified appraiser--
          (1) shall be required by the Administrator in connection with 
        any such loan for more than $250,000; or
          (2) may be required by the Administrator or the lender in 
        connection with any such loan for $250,000 or less, if an 
        appraisal is necessary for appropriate evaluation of 
        creditworthiness.
Sec. 20320. Express loan program
  (a) Restriction to Express Lender.--The authority to make an express 
loan shall be limited to lenders that the Administrator considers 
qualified to make express loans.
  (b) Effect of Designation.--Designation as an express lender for 
purposes of making an express loan does not preclude the lender from 
taking any other action authorized by the Administrator for that lender 
under the general business loan program.
  (c) Retention of Designation of Express Lender.--An express lender 
shall retain that designation unless--
          (1) the Administrator determines that the express lender has 
        violated the law (including regulations); or
          (2) the Administrator modifies the requirements to be an 
        express lender and the lender no longer satisfies those 
        requirements.
  (d) Maximum Loan Amount.--The maximum loan amount under the express 
loan program is $350,000.
  (e) Option To Participate.--Except as otherwise provided in this 
section, the Administrator shall take no regulatory, policy, or 
administrative action, without regard to whether the action requires 
notification under section 20315 of this title, that has the effect of 
requiring a lender to make an express loan.
  (f) Renewable Energy and Energy Efficiency.--The Administrator may 
make a loan under the express loan program for the purpose of--
          (1) purchasing a renewable energy system; or
          (2) carrying out an energy efficiency project for a small 
        business concern.
Sec. 20321. Loan application preparation and loan servicing by 
                    qualified development companies
  Notwithstanding any other provision of law, a qualified development 
company (as defined in section 33101 of this title) may--
          (1) prepare applications for deferred participation loans 
        under the general business loan program; and
          (2) service loans under the general business loan program and 
        charge a reasonable fee for servicing the loans.
Sec. 20322. Increased veteran/reservist participation program
  (a) Definitions.--In this section:
          (1) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
          (2) Pilot program.--The term ``pilot program'' means the 
        pilot program established under subsection (b).
          (3) Veteran/reservist participation loan.--The term 
        ``veteran/reservist participation loan'' means a loan made 
        under the general business loan program to a small business 
        concern owned and controlled by veterans or by reservists.
  (b) Establishment.--The Administrator shall establish and carry out a 
pilot program under which the Administrator shall reduce the fees for 
veteran/reservist participation loans.
  (c) Duration.--The pilot program shall terminate at the end of the 
second full fiscal year after the date on which the Administrator 
establishes the pilot program.
  (d) Maximum participation.--A veteran/reservist participation loan 
shall include the maximum participation levels by the Administrator 
permitted for loans made under the general business loan program.
  (e) Fees.--
          (1) In general.--The fee on a veteran/reservist participation 
        loan shall be equal to 50 percent of the fee otherwise 
        applicable to that loan under section 20311 of this title.
          (2) Waiver.--The Administrator may waive paragraph (1) for a 
        fiscal year if--
                  (A) for the fiscal year before that fiscal year, the 
                annual estimated rate of default of veteran/reservist 
                participation loans exceeds that of loans made under 
                the general business loan program that are not veteran/
                reservist participation loans;
                  (B) the cost to the Administrator of making loans 
                under the general business loan program is greater than 
                zero and the cost is directly attributable to the cost 
                of making veteran/reservist participation loans; and
                  (C) no additional source of revenue authority is 
                available to reduce the cost of making loans under the 
                general business loan program to zero.
          (3) Effect of waiver.--If the Administrator waives the 
        reduction of fees under paragraph (2), the Administrator--
                  (A) shall not assess or collect fees in an amount 
                greater than necessary to ensure that the cost of the 
                general business loan program is not greater than zero; 
                and
                  (B) shall reinstate the fee reductions under 
                paragraph (1) when the conditions in paragraph (2) no 
                longer apply.
          (4) No increase of fees.--The Administrator shall not 
        increase the fees under 20311 of this title on loans made under 
        the general business loan program that are not veteran/
        reservist participation loans as a direct result of the pilot 
        program.
  (f) GAO Report.--
          (1) In general.--Not later than one year after the date on 
        which the pilot program terminates, the Comptroller General 
        shall submit to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a report on the pilot program.
          (2) Contents.--The report under paragraph (1) shall include--
                  (A) the number of veteran/reservist participation 
                loans for which fees were reduced under the pilot 
                program;
                  (B) a description of the impact of the pilot program 
                on the general business loan program;
                  (C) an evaluation of the efficacy and potential fraud 
                and abuse of the pilot program; and
                  (D) recommendations for improving the pilot program.

                   CHAPTER 205--SPECIAL PURPOSE LOANS

Sec.
20501.  Applicability of chapter 203.
20502.  Residential or commercial construction or rehabilitation for 
          sale.
20503.  The disabled.
20504.  Unemployed or low-income individuals.
20505.  Energy measures.
20506.  Pollution control facilities.
20507.  Certified development companies.
20508.  Export working capital program.
20509.  Qualified employee trusts.
20510.  International trade.
20511.  Business development.
20512.  Closure of defense installations; termination of defense 
          programs; veterans and certain other individuals associated 
          with defense.
20513.  Loans for energy efficient technologies.
Sec. 20501. Applicability of chapter 203
  The provisions of chapter 203 apply to this chapter except to the 
extent that any such provision is inconsistent with a provision of this 
chapter.
Sec. 20502. Residential or commercial construction or rehabilitation 
                    for sale
  (a) In General.--The Administrator may provide a loan under the 
general business loan program to finance residential or commercial 
construction or rehabilitation for sale.
  (b) Limitation.--A loan under subsection (a) shall not be used 
primarily for the acquisition of land.
Sec. 20503. The disabled
  The Administrator may provide a guaranteed loan under the general 
business loan program to assist a public or private organization for 
the disabled or a disabled individual (including a service-disabled 
veteran) in establishing, acquiring, or operating a small business 
concern.
Sec. 20504. Unemployed or low-income individuals
  (a) Implementation.--The general business loan program shall be used 
to--
          (1) assist in the establishment, preservation, and 
        strengthening of small business concerns and improve the 
        managerial skills employed in small business concerns, with 
        special attention to, and particular emphasis on the 
        preservation or establishment of, small business concerns that 
        are--
                  (A) located in urban or rural areas with high 
                proportions of unemployed or low-income individuals; or
                  (B) owned by low-income individuals; and
          (2) mobilize for those objectives private as well as public 
        managerial skills and resources.
  (b) Loan Authority.--The Administrator may provide a loan under the 
general business loan program to a small business concern or to a 
qualified person seeking to establish a small business concern if the 
Administrator determines that providing the loan will further the 
purposes stated in subsection (a).
Sec. 20505. Energy measures
  (a) In General.--The Administrator may provide a loan under the 
general business loan program to provide assistance (including startup 
assistance) to a small business concern to enable the small business 
concern to design architecturally, or engineer, manufacture, 
distribute, market, install, or service, an energy measure.
  (b) Limitation.--The proceeds of a loan under subsection (a) shall 
not be used primarily for research and development.
Sec. 20506. Pollution control facilities
  (a) In General.--The Administrator may provide a deferred 
participation loan under the general business loan program to finance 
the planning, design, or installation of a pollution control facility 
for the purposes specified in section 404 of the Small Business 
Investment Act of 1958 (15 U.S.C. 694-1), as in effect before the date 
of repeal of that section.
  (b) Limit on Amount.--A loan under subsection (a) may not result in a 
total amount outstanding and committed (on a deferred basis) to a 
borrower under the general business loan program and microloan program 
of more than $1,000,000.
Sec. 20507. Certified development companies
  The Administrator may provide financing under the general business 
loan program to certified development companies for the purposes of, 
and subject to the restrictions in, the certified development company 
program.
Sec. 20508. Export working capital program
  (a) In General.--The Administrator may provide extensions of credit, 
standby letters of credit, revolving lines of credit for export 
purposes, and other financing to enable small business concerns 
(including small business export trading companies and small business 
export management companies) to develop foreign markets.
  (b) Rate of Interest.--A bank or participating lending institution 
may establish such a rate of interest on a financing under subsection 
(a) as is legal and reasonable.
  (c) Considerations.--When considering a loan or guarantee 
application, the Administrator shall give weight to export-related 
benefits, including the opening of new markets for United States goods 
and services abroad and encouraging the involvement of small business 
concerns (including agricultural concerns) in the export market.
  (d) Marketing of Export Financing Program.--The Administrator shall 
aggressively market the export working capital program to small 
business concerns.
Sec. 20509. Qualified employee trusts
  (a) Definition of Qualified Employee Trust.--In this section:
          (1) Trust maintained by small business concern.--The term 
        ``qualified employee trust'', with respect to a small business 
        concern, means a trust--
                  (A) that forms part of an employee stock ownership 
                plan (as defined in section 4975(e) of the Internal 
                Revenue Code of 1986 (26 U.S.C. 4975(e)) that--
                          (i) is maintained by the small business 
                        concern; and
                          (ii) 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 (as defined in section 
                        4975(e) of the Internal Revenue Code of 1986 
                        (26 U.S.C. 4975(e)) that are allocated to the 
                        account of the participant are to be exercised 
                        with respect to a corporate matter that (by law 
                        or charter) must be decided by a majority vote 
                        of outstanding common shares voted; and
                  (B) the trustee of which enters into an agreement 
                with the Administrator that is binding on the trust and 
                on the small business concern and provides that--
                          (i) a loan guaranteed under the general 
                        business loan program shall be used solely for 
                        the purchase of qualifying employer securities 
                        of the small business concern;
                          (ii) all funds acquired by the small business 
                        concern in the purchase shall be used by the 
                        small business concern solely for the purposes 
                        for which the loan was guaranteed;
                          (iii) the small business concern will provide 
                        such funds as are necessary for the timely 
                        repayment of the loan, and the property of the 
                        small business concern shall be available as 
                        security for repayment of the loan; and
                          (iv) all qualifying employer securities 
                        acquired by the trust in the purchase shall be 
                        allocated to the accounts of participants in 
                        the plan who are entitled to share in the 
                        allocation, and each participant has a 
                        nonforfeitable right, not later than the date 
                        on which the loan is repaid, to all such 
                        qualifying employer securities that are 
                        allocated to the participant's account.
          (2) Trust maintained by employee organization.--A trust 
        maintained by an employee organization may be treated as a 
        qualified employee trust with respect to a small business 
        concern in accordance with regulations prescribed under 
        subsection (f).
  (b) In General.--The Administrator may guarantee a loan under the 
general business loan program to a qualified employee trust with 
respect to a small business concern, on the same basis as if the 
qualified employee trust were the same entity as the small business 
concern, for the purpose of purchasing stock of the small business 
concern under a plan approved by the Administrator that, when carried 
out, results in the qualified employee trust owning at least 51 percent 
of the stock of the small business concern.
  (c) Plan.--
          (1) Submission with application.--A plan requiring approval 
        under subsection (b) shall be submitted to the Administrator by 
        the trustee of the qualified employee trust with the 
        application for a loan guarantee.
          (2) Agreement.--The plan shall include an agreement with the 
        Administrator that is binding on the qualified employee trust 
        and on the small business concern and provides that--
                  (A) not later than the date on which the loan 
                guaranteed under subsection (b) is repaid (or as soon 
                after that date as is consistent with the requirements 
                of section 401(a) of the Internal Revenue Code of 1986 
                (26 U.S.C. 401(a))), at least 51 percent of the total 
                stock of the small business concern shall be allocated 
                to the accounts of at least 51 percent of the employees 
                of the small business concern who are entitled to share 
                in the allocation;
                  (B) there will be periodic reviews of the role in the 
                management of the small business concern of employees 
                to whose accounts stock is allocated; and
                  (C) there will be adequate management to ensure 
                management expertise and continuity.
  (d) Criteria.--
          (1) In general.--Except as provided in paragraph (2), in 
        determining whether to guarantee a loan under this section, the 
        Administrator shall not use the individual business experience 
        or personal assets of employee-owners as criteria.
          (2) Exception.--To the that extent that any employee-owner 
        assumes managerial responsibilities, the Administrator may 
        consider the business expertise of that employee-owner.
  (e) Treatment of Corporation as Small Business Concern.--For purposes 
of this section, a corporation that is controlled by any other person 
shall be treated as a small business concern if the corporation would, 
after the plan under subsection (c) is carried out, be treated as a 
small business concern.
  (f) Regulations Relating To Treatment of a Trust Maintained by an 
Employee Organization.--The Administrator may prescribe regulations 
under which a trust maintained by an employee organization may be 
treated as a qualified employee trust with respect to a small business 
concern if--
          (1) the employee organization represents at least 51 percent 
        of the employees of the small business concern;
          (2) the small business concern maintains a plan that--
                  (A) is an employee benefit plan that is designed to 
                invest primarily in qualifying employer securities (as 
                defined in section 4975(e) of the Internal Revenue Code 
                of 1986 (26 U.S.C. 4975(e)));
                  (B) 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 that 
                are allocated to the account of the participant are to 
                be exercised with respect to a corporate matter that 
                (by law or charter) must be decided by a majority vote 
                of the outstanding common shares voted;
                  (C) provides that each participant who is entitled to 
                distribution from the plan has a right, in the case of 
                qualifying employer securities that are not readily 
                tradable on an established market, to require that the 
                small business concern repurchase the securities under 
                a fair valuation formula; and
                  (D) meets such other requirements (similar to 
                requirements applicable to employee stock ownership 
                plans (as defined in section 4975(e) of the Internal 
                Revenue Code of 1986 (26 U.S.C. 4975(e))) as the 
                Administrator may prescribe; and
          (3) in the case of a loan guarantee under the general 
        business loan program, the employee organization enters into an 
        agreement with the Administrator that is described in 
        subsection (a)(1)(B).
  (g) Reports.--The Administrator shall--
          (1) compile a separate list of applications for assistance 
        under this section, indicating which applications are accepted 
        and which denied; and
          (2) periodically submit to Congress a report on the status of 
        employee-owned firms assisted by the Administrator.
Sec. 20510. International trade
  (a) In General.--If the Administrator determines that a loan 
guaranteed under the general business loan program will allow an 
eligible small business concern that is engaged in or adversely 
affected by international trade to improve its competitive position, 
the Administrator may provide a loan guarantee to assist the small 
business concern in--
          (1) the financing of the acquisition, construction, 
        renovation, modernization, improvement, or expansion of 
        productive facilities or equipment to be used in the United 
        States in the production of a good or service involved in 
        international trade; or
          (2) the refinancing of existing indebtedness that is not 
        structured with reasonable terms and conditions.
  (b) Security.--A loan under this section shall be secured by a first 
lien position or first mortgage on the property or equipment financed 
by the loan or on other assets of the small business concern.
  (c) Engagement in International Trade.--For purposes of this section, 
a small business concern shall be considered to be engaged in 
international trade if, as determined by the Administrator, the small 
business concern is in a position to expand existing export markets or 
develop new export markets.
  (d) Adverse Effect of International Trade.--For purposes of this 
section, a small business concern shall be considered to be adversely 
affected by international trade if, as determined by the Administrator, 
the small business concern--
          (1) is confronting increased competition with foreign firms 
        in the relevant market; and
          (2) is injured by such competition.
  (e) Findings by Certain Federal Agencies.--For purposes of subsection 
(d)(2), the Administrator shall accept any finding of injury by the 
International Trade Commission or any finding of injury by the 
Secretary of Commerce under chapter 3 of title II of the Trade Act of 
1974 (19 U.S.C. 2341 et seq.).
Sec. 20511. Business development
  (a) In General.--The Administrator may make a loan under the general 
business loan program to a small business concern that is eligible for 
assistance under the business development program.
  (b) Requirements.--Assistance may be provided under subsection (a) if 
the Administrator determines that--
          (1) the type and amount of assistance requested by a small 
        business concern is not otherwise available on reasonable terms 
        from other sources;
          (2) with the assistance, the small business concern has a 
        reasonable prospect for operating soundly and profitably within 
        a reasonable period of time;
          (3) the proceeds of the assistance will be used within a 
        reasonable time--
                  (A) for plant construction, conversion, or expansion, 
                including the acquisition of equipment, facilities, 
                machinery, supplies, or material; or
                  (B) to supply the small business concern with working 
                capital to be used in the manufacture of articles, 
                equipment, supplies, or material for defense or 
                civilian production or as may be necessary to ensure a 
                well-balanced national economy; and
          (4) the assistance is of such sound value as reasonably to 
        ensure that the terms under which the assistance is provided 
        will not be breached by the small business concern.
  (c) Limit on Amount.--
          (1) In general.--No loan shall be made under this section if 
        the total amount outstanding and committed (on a deferred 
        basis, through a participation on an immediate basis, or 
        directly) to the borrower under the general business loan 
        program would exceed $750,000.
          (2) Amount of participation.--Subject to paragraph (1), in an 
        agreement to participate in a loan on a deferred (guaranteed) 
        basis, participation by the Administrator shall be not less 
        than 85 percent of the balance of the financing outstanding at 
        the time of disbursement.
  (d) Rate of Interest.--The rate of interest on a financing made on a 
deferred (guaranteed) basis shall be an amount that is legal and 
reasonable.
  (e) Limitations.--
          (1) In general.--A financing under this section shall be 
        subject to the limitations stated in this subsection.
          (2) Immediate financing.--No immediate participation may be 
        purchased unless it is shown that a deferred participation is 
        not available.
          (3) Direct financing.--No direct financing may be made unless 
        it is shown that a participation is unavailable.
  (f) Secured Debt Instrument.--A direct loan or the Administrator's 
share of an immediate participation loan under this section shall be 
any secured debt instrument--
          (1) that is subordinated by its terms to all other borrowings 
        of the issuer;
          (2) the rate of interest on which does not exceed the current 
        average market yield on outstanding marketable obligations of 
        the United States with remaining periods to maturity comparable 
        to the average maturities of such loans and adjusted to the 
        nearest 0.125 percent;
          (3) the term of which is not more than 25 years;
          (4) the principal on which is amortized at such a rate as the 
        Administrator considers appropriate; and
          (5) the interest on which is payable not less often than 
        annually.
Sec. 20512. Closure of defense installations; termination of defense 
                    programs; veterans and certain other individuals 
                    associated with defense
  (a) Definition of Qualified Individual.--In this section, the term 
``qualified individual'' means--
          (1) a member of the Armed Forces honorably discharged from 
        active duty involuntarily or under a program providing bonuses 
        or other inducements to encourage voluntary separation or early 
        retirement;
          (2) a civilian employee of the Department of Defense 
        involuntarily separated from Federal service or retired under a 
        program offering inducements to encourage early retirement; or
          (3) an employee of a prime contractor, subcontractor, or 
        supplier at any tier of a Department of Defense program whose 
        employment is involuntarily terminated (or voluntarily 
        terminated under a program offering inducements to encourage 
        voluntary separation or early retirement) due to the 
        termination or substantial reduction of a Department of Defense 
        program.
  (b) Loans.--The Administrator may make a loan on a guaranteed basis 
under the general business loan program--
          (1) to a small business concern that has been (or can 
        reasonably be expected to be) detrimentally affected by--
                  (A) the closure or substantial reduction of a 
                Department of Defense installation; or
                  (B) the termination or substantial reduction of a 
                Department of Defense program on which the small 
                business concern was a prime contractor or 
                subcontractor or supplier at any tier; or
          (2) to a qualified individual or a veteran seeking to 
        establish (or acquire) and operate a small business concern.
  (c) Resolution of Doubt.--Recognizing that greater risk may be 
associated with a loan to a small business concern described in 
subsection (b)(1), in making a determination regarding the sound value 
of the proposed loan under section 20304, any reasonable doubt 
concerning the small business concern's proposed business plan for 
transition to nondefense-related markets shall be resolved in favor of 
the loan applicant.
  (d) Amounts of Loans.--Loans under this section shall be authorized 
in such amounts as are provided in advance in appropriation Acts for 
the purposes of loans under this section.
  (e) Job Creation and Community Benefit.--In providing assistance 
under this section, the Administrator shall develop procedures to 
ensure, to the maximum extent practicable, that the assistance is used 
for projects that--
          (1) have the greatest potential for--
                  (A) creating new jobs for individuals whose 
                employment is involuntarily terminated due to 
                reductions in Federal defense expenditures; or
                  (B) preventing the loss of jobs by employees of small 
                business concerns described in subsection (b)(1); and
          (2) have substantial potential for stimulating new economic 
        activity in communities most affected by reductions in Federal 
        defense expenditures.
Sec. 20513. Loans for energy efficient technologies
  (a) Definitions.--In this section:
          (1) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
          (2) Covered energy efficiency loan.--The term ``covered 
        energy efficiency loan'' means a loan--
                  (A) made under the general business loan program; and
                  (B) the proceeds of which are used to--
                          (i) purchase energy efficient designs, 
                        equipment, or fixtures; or
                          (ii) reduce the energy consumption of the 
                        borrower by 10 percent or more.
          (3) Pilot program.--The term ``pilot program'' means the 
        pilot program established under subsection (b).
  (b) Establishment.--The Administrator shall establish and carry out a 
pilot program under which the Administrator shall reduce the fees for 
covered energy efficiency loans.
  (c) Duration.--The pilot program shall terminate at the end of the 
second full fiscal year after the date on which the Administrator 
establishes the pilot program.
  (d) Maximum participation.--A covered energy efficiency loan shall 
include the maximum participation levels by the Administrator permitted 
for loans made under this division.
  (e) Fees.--
          (1) In general.--The fee on a covered energy efficiency loan 
        shall be equal to 50 percent of the fee otherwise applicable to 
        that loan under 20311 of this title.
          (2) Waiver.--The Administrator may waive paragraph (1) for a 
        fiscal year if--
                  (A) for the fiscal year before that fiscal year, the 
                annual rate of default of covered energy efficiency 
                loans exceeds that of loans made under this division 
                that are not covered energy efficiency loans;
                  (B) the cost to the Administrator of making loans 
                under this division--
                          (i) is greater than zero; and
                          (ii) is directly attributable to the cost of 
                        making covered energy efficiency loans; and
                  (C) no additional sources of revenue authority are 
                available to reduce the cost of making loans under this 
                division to zero.
          (3) Effect of waiver.--If the Administrator waives the 
        reduction of fees under paragraph (2), the Administrator--
                  (A) shall not assess or collect fees in an amount 
                greater than necessary to ensure that the cost of the 
                program under this division is not greater than zero; 
                and
                  (B) shall reinstate the fee reductions under 
                paragraph (1) when the conditions in paragraph (2) no 
                longer apply.
          (4) No increase of fees.--The Administrator shall not 
        increase the fees under section 20311 of this title on loans 
        made under this division that are not covered energy efficiency 
        loans as a direct result of the pilot program.
  (f) GAO Report.--
          (1) In general.--Not later than one year after the date on 
        which the pilot program terminates, the Comptroller General 
        shall submit to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a report on the pilot program.
          (2) Contents.--The report under paragraph (1) shall include--
                  (A) the number of covered energy efficiency loans for 
                which fees were reduced under the pilot program;
                  (B) a description of the energy efficiency savings 
                with the pilot program;
                  (C) a description of the impact of the pilot program 
                on the program under this division;
                  (D) an evaluation of the efficacy and potential fraud 
                and abuse of the pilot program; and
                  (E) recommendations for improving the pilot program.

    CHAPTER 207--SMALL BUSINESS LENDING COMPANIES AND NON-FEDERALLY 
                           REGULATED LENDERS

Sec.
20701.  Authority to regulate.
20702.  Capital directive.
20703.  Civil action.
20704.  Revocation or suspension of loan authority; cease and desist 
          orders.
20705.  Removal or suspension of management officials.
20706.  Appointment of receiver.
20707.  Taking of possession of assets.
20708.  Reports.
Sec. 20701. Authority to regulate
  The Administrator--
          (1) may supervise the safety and soundness of small business 
        lending companies and non-federally regulated lenders;
          (2) in accordance with the purposes of this subtitle, may--
                  (A) regulate small business lending companies;
                  (B) set capital standards for small business lending 
                companies;
                  (C) examine small business lending companies; and
                  (D) enforce laws governing small business lending 
                companies; and
          (3) in accordance with the purposes of this subtitle, may--
                  (A) regulate non-federally regulated lenders;
                  (B) examine non-federally regulated lenders; and
                  (C) enforce laws governing the lending activities of 
                non-federally regulated lenders under the general 
                business loan program.
Sec. 20702. Capital directive
  (a) In General.--If the Administrator determines that a small 
business lending company is being operated in an imprudent manner, the 
Administrator may, in addition to any other action authorized by law, 
issue a directive to the small business lending company to increase 
capital to such level as the Administrator determines will result in 
the safe and sound operation of the small business lending company.
  (b) Limit on Delegability.--The Administrator may not delegate the 
authority granted under subsection (a) except to an Associate Deputy 
Administrator.
  (c) Regulations.--The Administrator shall issue regulations outlining 
the conditions under which the Administrator may determine the level of 
capital under subsection (a).
Sec. 20703. Civil action
  If a small business lending company violates this subtitle or 
subtitle I, the Administrator may bring a civil action in United States 
district court to terminate the rights, privileges, and franchises of 
the small business lending company under this subtitle or subtitle I.
Sec. 20704. Revocation or suspension of loan authority; cease and 
                    desist orders
  (a) Revocation or Suspension of Loan Authority.--
          (1) In general.--The Administrator may revoke or suspend the 
        authority of a small business lending company or a non-
        federally regulated lender to make, service, or liquidate 
        business loans under the general business loan program--
                  (A) for false statements knowingly made in any 
                written submission required under this subtitle;
                  (B) for omission of a material fact from any written 
                submission required under this subtitle;
                  (C) for willful or repeated violation of this 
                subtitle;
                  (D) for willful or repeated violation of any 
                condition imposed by the Administrator with respect to 
                any application, request, or agreement under this 
                subtitle; or
                  (E) for violation of any cease and desist order of 
                the Administrator under this chapter.
          (2) Limitation on delegability.--The Administrator may 
        delegate power to revoke or suspend authority under paragraph 
        (1) only to the Deputy Administrator and only if the 
        Administrator is unavailable to take the action.
          (3) Procedure.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Administrator may revoke or suspend authority 
                under paragraph (1) only after a hearing under 
                subsection (c).
                  (B) Suspension before hearing.--
                          (i) In general.--The Administrator, after 
                        finding extraordinary circumstances and in 
                        order to protect the financial or legal 
                        position of the United States, may issue a 
                        suspension order without conducting a hearing 
                        under subsection (c).
                          (ii) Hearing.--If the Administrator issues a 
                        suspension under clause (i), the Administrator 
                        shall, within 2 business days after issuance of 
                        the suspension, follow the procedure specified 
                        in subsection (c).
                  (C) Action by the administrator after hearing by 
                administrative law judge.--
                          (i) In general.--A revocation or suspension 
                        under paragraph (1) shall be made by the 
                        Administrator, except that the Administrator 
                        shall delegate to an administrative law judge 
                        appointed under section 3105 of title 5 the 
                        authority to conduct any hearing required under 
                        subsection (c).
                          (ii) Basis of decision.--The Administrator 
                        shall base the decision to revoke or suspend on 
                        the record of the hearing.
          (4) Effective period of suspension.--A suspension under 
        paragraph (1) shall remain in effect until the Administrator 
        makes a decision under paragraph (3)(C) to permanently revoke 
        the authority of the small business lending company or non-
        federally regulated lender, suspend the authority for a time 
        certain, or terminate the suspension.
          (5) Notification of borrowers.--On revocation of the 
        authority of a small business lending company or non-federally 
        regulated lender under paragraph (1), the small business 
        lending company or non-federally regulated lender shall, and 
        the Administrator may, notify borrowers of the revocation and 
        of the appointment of a new entity to service the borrowers' 
        loans.
  (b) Cease and Desist Orders.--
          (1) In general.--If a small business lending company, a non-
        federally regulated lender, or other person violates this 
        subtitle or subtitle I or is engaging or is about to engage in 
        any act or practice that constitutes or will constitute a 
        violation of this subtitle or subtitle I, the Administrator, 
        after an opportunity for hearing under subsection (c), may 
        order that--
                  (A) the small business lending company, non-federally 
                regulated lender, or other person cease and desist from 
                engaging in the act or practice or in any failure to 
                act;
                  (B) the small business lending company, non-federally 
                regulated lender, or other person take such action or 
                to refrain from such action as the Administrator 
                considers necessary to ensure compliance with this 
                subtitle; or
                  (C) the authority of the small business lending 
                company or non-federally regulated lender to lend be 
                suspended under subsection (a).
          (2) Limitation on delegability.--The Administrator may 
        delegate the authority under paragraph (1) only to the Deputy 
        Administrator and only if the Administrator is unavailable to 
        take the action.
          (3) Order before hearing.--
                  (A) In general.--The Administrator, after finding 
                extraordinary circumstances and in order to protect the 
                financial or legal position of the United States, may 
                issue a cease and desist order without conducting a 
                hearing under subsection (c).
                  (B) Hearing.--If the Administrator issues a cease and 
                desist order under subparagraph (A), the Administrator 
                shall within 2 business days follow the procedures 
                specified in subsection (c).
  (c) Procedure.--
          (1) Order to show cause.--
                  (A) In general.--Before revoking or suspending 
                authority under subsection (a) or issuing a cease and 
                desist order under subsection (b), the Administrator 
                shall serve an order to show cause on the small 
                business lending company, non-federally regulated 
                lender, or other person why an order revoking or 
                suspending the authority or a cease and desist order 
                should not be issued.
                  (B) Contents.--An order under subparagraph (A) 
                shall--
                          (i) contain a statement of the matters of 
                        fact and law asserted by the Administrator and 
                        the legal authority and jurisdiction under 
                        which a hearing is to be held; and
                          (ii) state that a hearing will be held before 
                        an administrative law judge at a time and place 
                        stated in the order.
          (2) Hearing.--A hearing shall be conducted under sections 
        554, 556, and 557 of title 5.
          (3) Order of revocation or suspension; cease and desist 
        order.--
                  (A) In general.--If, after hearing or a waiver of 
                hearing, the Administrator determines that an order 
                revoking or suspending the authority or a cease and 
                desist order should be issued, the Administrator shall 
                promptly issue the order.
                  (B) Contents.--An order under subparagraph (A) 
                shall--
                          (i) include a statement of the findings of 
                        the Administrator and the grounds and reasons 
                        for the findings; and
                          (ii) specify the effective date of the order.
                  (C) Service.--The Administrator shall cause an order 
                under subparagraph (A) to be served on the small 
                business lending company, non-federally regulated 
                lender, or other person that is subject to the order.
          (4) Witnesses.--A witness summoned before the Administrator 
        shall be paid by the party at whose instance the witness is 
        called the same fees and mileage that are paid witnesses in the 
        courts of the United States.
  (d) Final Agency Action.--An order under subsection (c)(3) is final 
agency action for purposes of chapter 7 of title 5.
  (e) Judicial Review.--An adversely affected party shall have 20 days 
from the date of issuance of an order under subsection (c)(3) to seek 
judicial review in United States district court.
Sec. 20705. Removal or suspension of management officials
  (a) Definition of Management Official.--In this section, the term 
``management official'' means an officer, director, general partner, 
manager, employee, agent, or other participant in the management of the 
affairs of a small business lending company's or non-federally 
regulated lender's activities under the general business loan program.
  (b) Removal of Management Official.--
          (1) Notice.--The Administrator may serve on a management 
        official a written notice of the Administrator's intention to 
        remove that management official if, in the opinion of the 
        Administrator, the management official--
                  (A) willfully and knowingly commits a substantial 
                violation of--
                          (i) this subtitle or subtitle I (including 
                        any regulation issued under this subtitle or 
                        subtitle I);
                          (ii) a final cease and desist order under 
                        this subtitle; or
                          (iii) any agreement under this subtitle by--
                                  (I) the management official; or
                                  (II) the small business lending 
                                company or non-federally regulated 
                                lender in which the management official 
                                is a participant; or
                  (B) willfully and knowingly commits a substantial 
                breach of a fiduciary duty of that participant as a 
                management official, if the violation or breach of 
                fiduciary duty is one involving personal dishonesty on 
                the part of the management official.
          (2) Contents.--A notice under paragraph (1) shall--
                  (A) contain a statement of the facts constituting 
                grounds for the notice; and
                  (B) state a time and place at which a hearing under 
                paragraph (3) will be held on the notice.
          (3) Hearing.--
                  (A) Timing.--A hearing under sections 554, 556, and 
                557 of title 5 shall be held not earlier than 30 nor 
                later than 60 days after the date of service of notice 
                of the hearing, unless an earlier or a later date is 
                set by the Administrator at the request of--
                          (i) the management official, for good cause; 
                        or
                          (ii) the Attorney General.
                  (B) Consent.--Unless the management official appears 
                at a hearing under this subsection in person or by an 
                authorized representative, the management official 
                shall be deemed to have consented to the issuance of an 
                order of removal under paragraph (1).
          (4) Order of removal.--
                  (A) In general.--In the event of consent under 
                paragraph (3)(B), or if on the record made at a hearing 
                under this section, the Administrator finds that any of 
                the grounds specified in the notice of removal has been 
                established, the Administrator may issue such orders of 
                removal from office as the Administrator considers 
                appropriate.
                  (B) Effectiveness.--An order under subparagraph (A) 
                shall--
                          (i) take effect 30 days after the date of 
                        service on the subject small business lending 
                        company or non-federally regulated lender and 
                        the management official concerned (except in 
                        the case of an order issued on consent as 
                        described in paragraph (3)(B), which shall 
                        become effective at the time specified in the 
                        order); and
                          (ii) remain effective and enforceable, except 
                        to such extent as the order is stayed, 
                        modified, terminated, or set aside by action of 
                        the Administrator or a court in accordance with 
                        this chapter.
  (c) Authority To Suspend or Prohibit Participation.--
          (1) In general.--To protect a small business lending company, 
        a non-federally regulated lender, or the interests of the 
        Administration or the United States, the Administrator may 
        suspend from office or prohibit from further participation in 
        any manner in the management or conduct of the affairs of a 
        small business lending company or non-federally regulated 
        lender a management official by written notice to that effect 
        served on the management official.
          (2) Prohibited activities.--A suspension or prohibition under 
        paragraph (1) may prohibit the management official from making, 
        servicing, reviewing, approving, or liquidating any loan under 
        the general business loan program.
          (3) Effectiveness.--A suspension or prohibition under 
        paragraph (1)--
                  (A) shall take effect on service of notice under 
                subsection (b); and
                  (B) unless stayed by a court in proceedings under 
                paragraph (4), shall remain in effect--
                          (i) pending the completion of the 
                        administrative proceedings pursuant to a notice 
                        of intention to remove served under subsection 
                        (b); and
                          (ii) until such time as the Administrator 
                        dismisses the charges specified in the notice, 
                        or, if an order of removal or prohibition is 
                        issued against the management official, until 
                        the effective date of any such order.
          (4) Judicial review of suspension prior to hearing.--Not 
        later than 10 days after a management official is suspended or 
        prohibited from participation under paragraph (1), the 
        management official may apply to a United States district court 
        for a stay of the suspension or prohibition pending the 
        completion of the administrative proceedings pursuant to a 
        notice of intent to remove served on the management official 
        under subsection (b).
  (d) Authority To Suspend on Criminal Charges.--
          (1) In general.--If a management official is charged in an 
        information, indictment, or complaint authorized by a United 
        States attorney, with a felony involving dishonesty or breach 
        of trust, the Administrator may, by written notice served on 
        the management official, suspend the management official from 
        office or prohibit the management official from further 
        participation in any manner in the management or conduct of the 
        affairs of the small business lending company or non-federally 
        regulated lender in which the management official is a 
        participant described in subsection (a).
          (2) Effectiveness.--A suspension or prohibition under 
        paragraph (1) shall remain in effect until the information, 
        indictment, or complaint is finally disposed of, or until 
        terminated by the Administrator or by order of a United States 
        district court.
          (3) Authority on conviction.--
                  (A) In general.--If a judgment of conviction with 
                respect to an offense described in paragraph (1) is 
                entered against a management official, at such time as 
                the judgment is not subject to further judicial review, 
                the Administrator may issue and serve on the management 
                official an order removing the management official, 
                effective on service of a copy of the order on the 
                small business lending company or non-federally 
                regulated lender in which the management official is a 
                participant described in subsection (a).
                  (B) Judgment not subject to further judicial 
                review.--For purposes of subparagraph (A), further 
                judicial review does not include the possibility of 
                review of a petition for a writ of habeas corpus.
          (4) Authority on dismissal or other disposition.--A finding 
        of not guilty or other disposition of charges described in 
        paragraph (1) shall not preclude the Administrator from 
        instituting proceedings under section 20704 of this title.
  (e) Notification to Small Business Lending Company or Non-federally 
Regulated Lender.--A copy of a notice required to be served on a 
management official under this chapter shall also be served on the 
small business lending company or non-federally regulated lender in 
which the management official is a participant described in subsection 
(a).
  (f) Decision.--After a hearing under this section, and not later than 
30 days after the Administrator notifies the parties that the case has 
been submitted for final decision, the Administrator shall--
          (1) render a decision in the matter (which shall include 
        findings of fact on which its decision is predicated); and
          (2) issue and cause to be served on each party to the 
        proceeding an order or orders consistent with this chapter.
  (g) Final Agency Action.--A decision under subsection (f) shall 
constitute final agency action for purposes of chapter 7 of title 5.
  (h) Judicial Review.--An adversely affected party shall have 20 days 
from the date of issuance of the order to seek judicial review in 
United States district court.
Sec. 20706. Appointment of receiver
  (a) In General.--In a civil action under this division, the court 
may--
          (1) take exclusive jurisdiction over a small business lending 
        company or non-federally regulated lender; and
          (2) appoint a receiver to hold and administer the assets of 
        the small business lending company or non-federally regulated 
        lender.
  (b) Appointment of Administrator.--On request of the Administrator, 
the court may appoint the Administrator as a receiver under subsection 
(a).
Sec. 20707. Taking of possession of assets
  (a) Taking of Possession of Loan Portfolio.--If a small business 
lending company or non-federally regulated lender is not in compliance 
with capital requirements or is insolvent, the Administrator may take 
possession of the portfolio of loans guaranteed by the Administrator 
and sell the loans to a third party by means of a receiver appointed 
under section 20706 of this title.
  (b) Taking of Possession of Servicing Activities.--If a small 
business lending company or non-federally regulated lender is not in 
compliance with capital requirements or is insolvent or otherwise 
operating in an unsafe and unsound condition, the Administrator may 
take possession of servicing activities of loans that are guaranteed by 
the Administrator and sell the servicing rights to a third party by 
means of a receiver appointed under section 20706 of this title.
Sec. 20708. Reports
  (a) Civil Penalty for Failure To File.--
          (1) In general.--A small business lending company or non-
        federally regulated lender that violates a regulation or 
        written directive issued by the Administrator regarding the 
        filing of a regular or special report shall pay to the United 
        States a civil penalty of not more than $5,000 for each day of 
        the continuance of the failure to file the report, unless it is 
        shown that the violation is due to reasonable cause and not due 
        to willful neglect.
          (2) Enforcement.--A civil penalty under paragraph (1) may be 
        enforced in a civil action brought by the Administrator.
          (3) Nonapplicability to certain small business lending 
        companies.--Paragraph (1) does not apply to an affiliate of a 
        small business lending company that procures at least 10 
        percent of its annual purchasing requirements from small 
        manufacturers.
  (b) Exemption.--
          (1) In general.--If the Administrator determines that 
        granting an exemption would not be inconsistent with the public 
        interest or the protection of the Administration, the 
        Administrator may exempt a small business lending company or 
        non-federally regulated lender from subsection (a)--
                  (A) in whole or in part; and
                  (B) on such terms and conditions and for such period 
                of time as the Administrator considers necessary and 
                appropriate.
          (2) Procedure.--The Administrator may grant an exemption 
        under paragraph (1)--
                  (A) by regulation prescribed after an opportunity for 
                notice and comment; or
                  (B) on application of an interested party, at any 
                time previous to a violation described in subsection 
                (a), by order, after notice and opportunity for hearing 
                under sections 554, 556, and 557 of title 5.
  (c) Alternative Requirements.--The Administrator may for purposes of 
this section make any alternative requirement that the Administrator 
considers to be appropriate to a situation.

                     DIVISION C--MICROLOAN PROGRAM

                     CHAPTER 211--MICROLOAN PROGRAM

Sec.
21101.  Definitions.
21102.  Establishment of microloan program.
21103.  Purposes of microloan program.
21104.  Eligibility for participation.
21105.  Loans to intermediaries; loans by intermediaries to small 
          business concerns.
21106.  Marketing, management, and technical assistance grants to 
          intermediaries.
21107.  Private sector borrowing technical assistance grants.
21108.  Grants for management, marketing, technical assistance, and 
          related services.
Sec. 21101. Definitions
  In this chapter:
          (1) Intermediary.--The term ``intermediary'' means--
                  (A) a private, nonprofit entity;
                  (B) a private, nonprofit community development 
                corporation;
                  (C) a consortium of private, nonprofit organizations 
                or nonprofit community development corporations;
                  (D) a quasi-governmental economic development entity 
                (such as a planning and development district), other 
                than a State, county, or municipal government (or any 
                agency of a State, county, or municipal government), in 
                a geographic area--
                          (i) in which no application is received from 
                        an eligible nonprofit organization; or
                          (ii) with respect to which the Administrator 
                        determines that the needs of the geographic 
                        area are not adequately served by an existing, 
                        eligible nonprofit organization that has 
                        submitted an application; or
                  (E) an agency of or nonprofit entity established by a 
                Native American Tribal Government;
        that seeks to borrow or has borrowed funds from the 
        Administrator to make microloans to small business concerns 
        under the microloan program.
          (2) Microloan.--The term ``microloan'' means a short-term, 
        fixed rate loan of not more than $35,000, made by an 
        intermediary to a startup, newly established, or growing small 
        business concern.
          (3) Rural area.--The term ``rural area'' means a political 
        subdivision or unincorporated area--
                  (A) in a nonmetropolitan county (as defined by the 
                Secretary of Agriculture) or its equivalent; or
                  (B) in a metropolitan county or its equivalent that 
                has a resident population of less than 20,000 if the 
                Administrator determines the political subdivision or 
                unincorporated area to be rural.
          (4) State.--The term ``State'' includes the District of 
        Columbia, Puerto Rico, the United States Virgin Islands, Guam, 
        and American Samoa.
Sec. 21102. Establishment of microloan program
  There is established within the Administration a microloan program.
Sec. 21103. Purposes of microloan program
  The purposes of the microloan program are--
          (1) to assist women, low-income, veteran, and minority 
        entrepreneurs and business owners and other such individuals 
        possessing the capability to operate successful business 
        concerns;
          (2) to assist small business concerns in areas suffering from 
        a lack of credit due to economic downturns;
          (3) to make loans to eligible intermediaries to enable the 
        intermediaries to provide small-scale loans, particularly loans 
        in amounts averaging not more than $10,000, to startup, newly 
        established, or growing small business concerns for working 
        capital or the acquisition of materials, supplies, or 
        equipment;
          (4) to make grants to eligible intermediaries that, together 
        with non-Federal matching funds, will enable the intermediaries 
        to provide intensive marketing, management, and technical 
        assistance to microloan borrowers;
          (5) to make grants to eligible nonprofit entities that, 
        together with non-Federal matching funds, will enable the 
        entities to provide intensive marketing, management, and 
        technical assistance to assist low-income entrepreneurs and 
        other low-income individuals obtain private sector financing 
        for their businesses, with or without loan guarantees;
          (6) to report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives on the effectiveness 
        of the microloan program and the advisability and feasibility 
        of implementing such a program nationwide; and
          (7) to establish a welfare-to-work microloan initiative to 
        test the feasibility of supplementing the technical assistance 
        grants provided under sections 21106 and 21107 of this title to 
        individuals who are receiving assistance under the State 
        program funded under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.), or under any comparable State-
        funded means-tested program of assistance for low-income 
        individuals, to adequately assist those individuals in--
                  (A) establishing small business concerns; and
                  (B) eliminating their dependence on that assistance.
Sec. 21104. Eligibility for participation
  An intermediary shall be eligible to receive loans and grants under 
sections 21105 and 21106 of this title if the intermediary has at least 
one year of experience making microloans to startup, newly established, 
or growing small business concerns and providing, as an integral part 
of the microloan program, intensive marketing, management, and 
technical assistance to its borrowers.
Sec. 21105. Loans to intermediaries; loans by intermediaries to small 
                    business concerns
  (a) In General.--Under the microloan program, the Administrator may 
make direct loans to eligible intermediaries for the purpose of making 
microloans to small business concerns under this section.
  (b) Loan Applications.--
          (1) In general.--As part of an application for a loan, an 
        intermediary shall submit to the Administrator a description 
        of--
                  (A) the type of businesses to be assisted;
                  (B) the size and range of loans to be made;
                  (C) the geographic area to be served, including a 
                description of the economic, poverty, and unemployment 
                characteristics of the area;
                  (D) the status of small business concerns in the area 
                to be served, including an analysis of their credit and 
                technical assistance needs;
                  (E) any marketing, management, and technical 
                assistance to be provided in connection with a loan 
                made under this chapter;
                  (F) the local economic credit markets, including the 
                costs associated with obtaining credit locally;
                  (G) the qualifications of the applicant to carry out 
                the purposes of the microloan program; and
                  (H) any plan to involve other technical assistance 
                providers (such as counselors from SCORE or small 
                business development centers) or private sector lenders 
                in assisting selected business concerns.
          (2) Selection of intermediaries.--In selecting intermediaries 
        to participate in the microloan program, the Administrator 
        shall give priority to applicants that provide loans in amounts 
        averaging not more than $10,000.
  (c) Intermediary Contribution.--As a condition of a loan under 
subsection (a), the Administrator shall require an intermediary to 
contribute not less than 15 percent of the loan amount in cash from a 
non-Federal source.
  (d) Loan Limits.--A loan shall not be made under the microloan 
program if the total amount outstanding and committed (on a deferred 
basis, through a participation on an immediate basis, or directly) to 
one intermediary (excluding outstanding grants) under the general 
business loan program and microloan program would, as a result of the 
loan, exceed $750,000 in the first year of the intermediary's 
participation in the microloan program or $3,500,000 in any subsequent 
year of the intermediary's participation in the microloan program.
  (e) Loan Term.--A loan made by the Administrator under this chapter 
shall be for a term of 10 years.
  (f) Delayed Payments.--Except for a loan loss reserve fund under 
subsection (i), the Administrator shall not require repayment of 
principal or interest on a loan made to an intermediary under this 
chapter during the first year of the loan.
  (g) No Fee or Collateral.--Except for a loan loss reserve fund under 
subsection (i), the Administrator shall not charge any fee or require 
collateral other than an assignment of the notes receivable of the 
microloans with respect to any loan made to an intermediary under the 
microloan program.
  (h) Interest Rates.--
          (1) In general.--Except as provided in paragraph (2), a loan 
        made by the Administrator to an intermediary under this chapter 
        shall bear an interest rate equal to 1.25 percentage points 
        below the rate determined by the Secretary of the Treasury for 
        obligations of the United States with a period of maturity of 5 
        years, adjusted to the nearest 0.125 percent.
          (2) Rates applicable to certain small loans.--A loan made by 
        the Administrator to an intermediary that makes loans to small 
        business concerns and entrepreneurs averaging not more than 
        $7,500 shall bear an interest rate that is 2 percentage points 
        below the rate determined by the Secretary of the Treasury for 
        obligations of the United States with a period of maturity of 5 
        years, adjusted to the nearest 0.125 percent.
          (3) Multiple sites or offices.--The interest rate determined 
        under paragraph (1) or (2) shall apply to each separate 
        loanmaking site or office of an intermediary only if the site 
        or office meets the requirements of that paragraph.
          (4) Rate basis.--The applicable rate of interest under this 
        subsection--
                  (A) for the first year of an intermediary's 
                participation in the microloan program, shall be 
                applied retroactively based on the actual lending 
                practices of the intermediary as determined by the 
                Administrator before the end of that year; and
                  (B) for each subsequent year of an intermediary's 
                participation in the microloan program, shall be based 
                on the actual lending practices of the intermediary 
                during the term of the intermediary's participation in 
                the microloan program.
  (i) Loss Reserve of Intermediaries.--
          (1) In general.--The Administrator shall by regulation 
        require an intermediary to establish and maintain a loan loss 
        reserve fund until all obligations owed to the Administrator 
        under the microloan program are repaid.
          (2) Level of loan loss reserve fund.--
                  (A) In general.--Subject to subparagraph (C), the 
                Administrator shall require the loan loss reserve fund 
                of an intermediary to be maintained at a level equal to 
                15 percent of the outstanding balance of the notes 
                receivable owed to the intermediary.
                  (B) Review of loan loss reserve.--  
                          (i) In general.--After the initial 5 years of 
                        an intermediary's participation in the 
                        microloan program, the Administrator shall, at 
                        the request of the intermediary, conduct a 
                        review of the annual loss rate of the 
                        intermediary.
                          (ii) Review period.--An intermediary that 
                        requests a reduction in its loan loss reserve 
                        shall be reviewed based on the most recent 5-
                        year period preceding the request.
                  (C) Reduction of loan loss reserve.--Subject to 
                subparagraph (D), the Administrator may reduce the 
                annual loan loss reserve requirement of an intermediary 
                to reflect the actual average loan loss rate for the 
                intermediary during the preceding 5-year period, except 
                that in no case shall the loan loss reserve be reduced 
                to less than 10 percent of the outstanding balance of 
                the notes receivable owed to the intermediary.
                  (D) Requirements.--The Administrator may reduce the 
                annual loan loss reserve requirement of an intermediary 
                only if the intermediary demonstrates to the 
                satisfaction of the Administrator that--
                          (i) the average annual loss rate for the 
                        intermediary during the preceding 5-year period 
                        is less than 15 percent; and
                          (ii) no other factors exist that may impair 
                        the ability of the intermediary to repay all 
                        obligations owed to the Administrator under 
                        this chapter.
  (j) Loans by Intermediaries to Small Business Concerns.--
          (1) In general.--From funds made available to an intermediary 
        under the microloan program, the intermediary shall make short-
        term, fixed rate loans to startup, newly established, and 
        growing small business concerns for working capital and the 
        acquisition of materials, supplies, furniture, fixtures, and 
        equipment.
          (2) Loan amount.--
                  (A) Portfolio requirement.--To the extent 
                practicable, an intermediary that operates under the 
                microloan program shall maintain a microloan portfolio 
                with an average loan size of not more than $15,000.
                  (B) Unavailability of comparable credit.--An 
                intermediary may make a loan under the microloan 
                program of more than $20,000 to a small business 
                concern only if the small business concern demonstrates 
                that--
                          (i) it is unable to obtain credit elsewhere 
                        at comparable interest rates; and
                          (ii) it has good prospects for success.
                  (C) Maximum amount.--An intermediary shall not--
                          (i) make a loan under this chapter of more 
                        than $35,000; or
                          (ii) have outstanding or committed to any one 
                        borrower more than $35,000.
          (3) Interest limit.--Notwithstanding any provision of law of 
        any State (including the constitution of a State) pertaining to 
        the rate or amount of interest that may be charged, taken, 
        received, or reserved on a loan, the maximum rate of interest 
        to be charged on a microloan funded under this chapter shall 
        not exceed the rate of interest applicable to a loan made to an 
        intermediary by the Administrator--
                  (A) in the case of a loan of more than $7,500 made by 
                the intermediary to a small business concern or 
                entrepreneur, by more than 7.75 percentage points; and
                  (B) in the case of a loan of not more than $7,500 
                made by the intermediary to a small business concern or 
                entrepreneur by more than 8.5 percentage points.
          (4) Review restriction.--The Administrator shall not review 
        individual microloans made by intermediaries prior to approval.
          (5) Establishment of child care or transportation 
        businesses.--In addition to other eligible small business 
        concerns, a borrower under the microloan program may include an 
        individual who will use the loan proceeds to establish--
                  (A) a for-profit or nonprofit child care 
                establishment; or
                  (B) a business providing a for-profit transportation 
                service.
  (k) Program Funding for Microloans.--
          (1) Number of participants.--Under the microloan program, the 
        Administrator may fund, on a competitive basis, not more than 
        300 intermediaries.
          (2) Allocation.--
                  (A) Minimum allocation.--Subject to the availability 
                of appropriations, of the total amount of new loan 
                funds made available for award under the microloan 
                program for each fiscal year, the Administrator shall 
                make available for award in each State an amount equal 
                to the sum of--
                          (i) the lesser of--
                                  (I) $800,000; or
                                  (II) \1/55\ of the total amount of 
                                new loan funds made available for award 
                                under the microloan program for that 
                                fiscal year; and
                          (ii) any additional amount, as determined by 
                        the Administrator.
                  (B) Redistribution.--If, at the beginning of the 
                third quarter of a fiscal year, the Administrator 
                determines that any portion of the amount made 
                available to carry out the microloan program is 
                unlikely to be made available under subparagraph (A) 
                during that fiscal year, the Administrator may make 
                that portion available for award in any one or more 
                States without regard to subparagraph (A).
  (l) Equitable Distribution of Intermediaries.--In approving microloan 
program applicants and providing funding to intermediaries under the 
microloan program, the Administrator shall select and provide funding 
to such intermediaries as will ensure appropriate availability of loans 
for small business concerns in all industries located throughout each 
State, particularly industries located in urban areas and industries 
located in rural areas.
Sec. 21106. Marketing, management, and technical assistance grants to 
                    intermediaries
  (a) In General.--In conjunction with a loan to an intermediary under 
section 21105 of this title, the Administrator may make a grant to the 
eligible intermediary for the purpose of providing intensive marketing, 
management, and technical assistance to small business concerns that 
are borrowers under the microloan program.
  (b) Grant Amount.--
          (1) In general.--An intermediary that receives a loan under 
        section 21105 of this title shall be eligible to receive a 
        grant in an amount equal to not more than 25 percent of the 
        total outstanding balance of loans made to the intermediary 
        under the microloan program.
          (2) Intermediary contribution.--
                  (A) In general.--As a condition of a grant under 
                paragraph (1), the Administrator shall require the 
                intermediary to contribute an amount equal to 25 
                percent of the amount of the grant, obtained solely 
                from a non-Federal source.
                  (B) Form.--In addition to cash or other direct 
                funding, a contribution under subparagraph (A) may 
                include indirect costs or in-kind contributions paid 
                for under a non-Federal program.
  (c) Additional Technical Assistance Grants for Making Certain 
Loans.--
          (1) In general.--An intermediary that has a portfolio of 
        loans under the microloan program that averages not more than 
        $10,000 during the period of the intermediary's participation 
        in the microloan program shall be eligible to receive a grant 
        equal to 5 percent of the total outstanding balance of loans 
        made to the intermediary under the microloan program, in 
        addition to any grant made under subsection (b).
          (2) Use.--A grant under paragraph (1) shall be used to 
        provide marketing, management, and technical assistance to 
        small business concerns that are borrowers under the microloan 
        program.
  (d) Multiple Sites or Offices.--Eligibility for a grant under 
subsection (b) or (c) shall be determined separately for each 
loanmaking site or office of an intermediary.
  (e) Assistance to Certain Small Business Concerns.--
          (1) In general.--An intermediary may expend an amount not to 
        exceed 25 percent of the funds received under subsection (a) to 
        provide information and technical assistance to small business 
        concerns that are prospective borrowers under section 21108 of 
        this title.
          (2) Technical assistance.--An intermediary may provide 
        technical assistance under paragraph (1) through a third party 
        contract.
Sec. 21107. Private sector borrowing technical assistance grants
  (a) In General.--The Administrator may make grants to nonprofit 
entities for the purpose of providing marketing, management, and 
technical assistance to low-income individuals seeking to start or 
enlarge their own businesses, if the assistance includes working with 
the grant recipient to secure loans in amounts not to exceed $35,000 
from private sector lending institutions, with or without a loan 
guarantee from the nonprofit entity.
  (b) Grant Amounts.--The Administrator may make not more than 55 
grants annually under subsection (a), each in an amount not to exceed 
$200,000.
  (c) Grant Recipient Contribution.--
          (1) In general.--As a condition of a grant under subsection 
        (a), the Administrator shall require the grant recipient to 
        contribute an amount equal to 20 percent of the amount of the 
        grant, obtained solely from a non-Federal source.
          (2) Form.--In addition to cash or other direct funding, a 
        contribution under paragraph (1) may include indirect costs or 
        in-kind contributions paid for under a non-Federal program.
Sec. 21108. Grants for management, marketing, technical assistance, and 
                    related services
  (a) In General.--The Administrator may procure technical assistance 
for intermediaries participating in the microloan program to ensure 
that the intermediaries have the knowledge, skills, and understanding 
of microlending practices necessary to operate a successful microloan 
program.
  (b) Assistance Amount.--The Administrator shall transfer 7 percent of 
the annual appropriation for loans and loan guarantees under this 
chapter to the Administration's Salaries and Expense Account for the 
specific purpose of providing one or more technical assistance grants 
to experienced microlending organizations and national and regional 
nonprofit organizations that have demonstrated experience in providing 
training support for microenterprise development and financing to 
achieve the purpose specified in subsection (a).
  (c) Welfare-to-Work Microloan Initiative.--Of amounts made available 
to carry out the welfare-to-work microloan initiative under section 
21103(7) of this title for any fiscal year, the Administrator may use 
not more than 5 percent to provide technical assistance, either 
directly or through contractors, to welfare-to-work microloan 
initiative grantees, to ensure that the grantees have the knowledge, 
skills, and understanding of microlending and welfare-to-work 
transition, and other related issues, to operate a successful welfare-
to-work microloan initiative.

                DIVISION D--DISASTER ASSISTANCE PROGRAMS

                   CHAPTER 213--DISASTER LOAN PROGRAM

Sec.
21301.  Physical loss disaster loans.
21302.  Economic injury disaster loans.
21303.  Loans to assist small business concerns that suffer injury as a 
          result of an essential employee's being ordered to active 
          military duty.
21304.  Public awareness of disaster declaration and application 
          periods.
21305.  Disaster loan processing.
21306.  Disaster assistance employees.
21307.  Maximum loan amount.
21308.  Declaration of eligility for additional disaster assistance.
21309.  Interest rates.
21310.  Maximum term.
21311.  Deferment of repayment.
21312.  Suspension of payments.
21313.  Participation in loans on deferred basis.
21314.  Assistance and counseling for disaster victims.
21315.  Priority in allocating funds.
21316.  Prohibition of cancellation of certain disaster loans.
21317.  Prohibition of net earnings clauses.
21318.  Biennial disaster simulation exercise.
21319.  Disaster planning responsibilities.
21320.  Disaster response plan.
21321.  Coordination of disaster assistance programs with FEMA.
21322.  Plans to secure sufficient office space.
21323.  Bond guarantees in procurements relating to a major disaster.
21324.  Civil penalty.
Sec. 21301. Physical loss disaster loans
  (a) In General.--Except as to agricultural enterprises, to the extent 
and in such amounts as are provided in advance in appropriation Acts, 
the Administrator may make such a loan (directly or in cooperation with 
a bank or other lending institution through an agreement to participate 
on an immediate or deferred (guaranteed) basis) as the Administrator 
determines to be necessary or appropriate to repair, rehabilitate, or 
replace property, real or personal, damaged or destroyed by or as a 
result of a natural or other disaster.
  (b) Loan Amount.--
          (1) In general.--The amount of a loan under subsection (a) 
        shall be equal to 100 percent of the amount of the loss, minus 
        any amount compensated for by insurance or otherwise.
          (2) Protection from future disasters.--The Administrator may 
        increase the amount of a loan under subsection (a) by up to 20 
        percent of the aggregate costs of the damage or destruction 
        (whether or not compensated for by insurance or otherwise) if 
        the Administrator determines the increase to be necessary or 
        appropriate to protect the damaged or destroyed property from 
        future disasters by taking mitigating measures, including 
        construction of retaining walls and sea walls, grading and 
        contouring land, relocating utilities, and modifying 
        structures.
          (3) Limitation on loan amount.--
                  (A) In general.--No loan under this section shall be 
                made if the total amount outstanding and committed to 
                the borrower under the disaster loan program would 
                exceed $1,500,000 for any one disaster unless an 
                applicant constitutes a major source of employment in 
                an area suffering a disaster, in which case the 
                Administrator may waive the $1,500,000 limitation.
                  (B) Major source of employment.--For purposes of 
                determining whether a nonprofit applicant that owns a 
                premises constitutes a major source of employment under 
                subparagraph (A), the employees of 2 or more concerns 
                that share the premises as a common business premises 
                shall be aggregated.
          (4) Limitation on reduction of loan amount.--
                  (A) In general.--The Administrator shall not reduce 
                the amount of a loan--
                          (i) for any homeowner on account of loss of 
                        real estate to less than $100,000 for any one 
                        disaster; or
                          (ii) for any homeowner or lessee on account 
                        of loss of personal property to less than 
                        $20,000 for any one disaster.
                  (B) Refinancing.--The $100,000 and $20,000 amounts in 
                subparagraph (A) are in addition to any refinancing for 
                which a loan applicant is eligible.
  (c) Refinancings.--
          (1) In general.--A loan or guarantee may be made to refinance 
        a mortgage or other lien against a totally destroyed or 
        substantially damaged home or business concern (other than an 
        agricultural enterprise).
          (2) Requirements.--A loan or guarantee under paragraph (1) 
        shall not be made unless the Administrator determines that--
                  (A) the applicant is not able to obtain credit 
                elsewhere; and
                  (B) the property is to be repaired, rehabilitated, or 
                replaced.
          (3) Amount.--The amount refinanced under paragraph (1)--
                  (A) shall not exceed the amount of physical loss 
                sustained; and
                  (B) shall be reduced to the extent that the mortgage 
                or lien is satisfied by insurance or otherwise.
  (d) Collateral.--The Administrator shall not require collateral for a 
loan of $14,000 (or such greater amount as the Administrator determines 
to be appropriate in the event of a major disaster) or less that is 
made under this section.
Sec. 21302. Economic injury disaster loans
  (a) Definitions.--In this section:
          (1) Disaster.--The term ``disaster'' includes--
                  (A) a drought;
                  (B) a below average water level in one or more of the 
                Great Lakes or on any other body of water in the United 
                States that supports commerce by small business 
                concerns; and
                  (C) an ice storm or blizzard.
          (2) Disaster area.--The term ``disaster area'' includes--
                  (A) a county determined to be a disaster by the 
                President, the Secretary of Agriculture, or the 
                Administrator; and
                  (B) a county contiguous to a county described in 
                subparagraph (A).
  (b) Loans.--Except as to agricultural enterprises, to the extent and 
in such amounts as are provided in advance in appropriation Acts, the 
Administrator may make such a loan (directly or in cooperation with a 
bank or other lending institution through an agreement to participate 
on an immediate or deferred (guaranteed) basis) as the Administrator 
determines to be necessary or appropriate to a small business concern, 
private nonprofit organization, or small agricultural cooperative 
located in a disaster area if--
          (1) the Administrator determines that the small business 
        concern, private nonprofit organization, or agricultural 
        cooperative has suffered a substantial economic injury as a 
        result of the disaster;
          (2)(A) the disaster constitutes--
                  (i) a major disaster;
                  (ii) a natural disaster, as determined by the 
                Secretary of Agriculture under section 321 of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                1961), in which case, assistance under this section may 
                be provided to farm-related and nonfarm-related small 
                business concerns, subject to the other applicable 
                requirements of this section; or
                  (iii) a disaster, as determined by the Administrator; 
                or
          (B) if no disaster described in subparagraph (A) is declared, 
        the Governor of a State in which a disaster has occurred 
        certifies to the Administrator that small business concerns, 
        private nonprofits organizations, or small agricultural 
        cooperatives--
                  (i) have suffered economic injury as a result of the 
                disaster; and
                  (ii) are in need of financial assistance that is not 
                available on reasonable terms in the disaster area; and
          (3) the Administrator determines that the applicant is not 
        able to obtain credit elsewhere.
  (c) Prompt Response to Certification.--Not later than 30 days after 
the date of receipt of a certification by a Governor of a State under 
subsection (b)(2)(B), the Administrator shall respond in writing to the 
Governor on the Administrator's determination regarding the 
certification, stating the reasons for the determination.
  (d) Limitation on Loan Amount.--
          (1) In general.--No loan under this section shall be made if 
        the total amount outstanding and committed to a borrower under 
        the disaster loan program would exceed $1,500,000 for any one 
        disaster unless the borrower constitutes a major source of 
        employment in a disaster area, in which case the Administrator 
        may waive the $1,500,000 limitation.
          (2) Major source of employment.--For purposes of determining 
        whether a nonprofit applicant that owns a premises constitutes 
        a major source of employment under paragraph (1), the employees 
        of 2 or more concerns that share the premises as a common 
        business premises shall be aggregated.
  (e) Nurseries.--The Administrator shall not withhold disaster 
assistance under this section to a nursery that is a victim of a 
drought disaster.
Sec. 21303. Loans to assist small business concerns that suffer injury 
                    as a result of an essential employee's being 
                    ordered to active military duty
  (a) Definitions.--In this section:
          (1) 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 the small business concern.
          (2) Period of military conflict.--The term ``period of 
        military conflict'' has the meaning given the term in section 
        20104(a) of this title.
          (3) Reservist expecting activation.--The term ``reservist 
        expecting activation'' means a reservist who--
                  (A) has not been ordered to active duty;
                  (B) expects to be ordered to active duty during a 
                period of military conflict; and
                  (C) is a key employee of a small business concern 
                that can reasonably demonstrate that the small business 
                concern will suffer economic injury in the absence of 
                the reservist.
          (4) Substantial economic injury.--The term ``substantial 
        economic injury'' means an economic harm to a small business 
        concern that results in the inability of the small business 
        concern to--
                  (A) meet its obligations as they mature;
                  (B) pay its ordinary and necessary operating 
                expenses; or
                  (C) market, produce, or provide a product or service 
                ordinarily marketed, produced, or provided by the small 
                business concern.
  (b) In General.--Except as to agricultural enterprises, to the extent 
and in such amounts as are provided in advance in appropriation Acts, 
the Administrator may make a loan (directly or in cooperation with a 
bank or other lending institution through an agreement 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 the small business 
concern's being ordered to active military duty during a period of 
military conflict.
  (c) Eligibility Period.--
          (1) In general.--A small business concern shall be eligible 
        for assistance under this section during the period beginning 
        on the date on which an essential employee is ordered to active 
        duty and ending on the date that is one year after the date on 
        which the essential employee is discharged or released from 
        active duty.
          (2) Extension.--The Administrator may, when appropriate (as 
        determined by the Administrator), extend the ending date 
        specified in paragraph (1) by not more than one year.
  (d) Interest Rate.--A loan or guarantee made under this section shall 
be made at the same interest rate as in the case of an economic injury 
loan under section 21302 of this title.
  (e) Loan Amount.--
          (1) In general.--Except as provided in paragraph (2), no loan 
        may be made under this section if the total amount outstanding 
        and committed to the borrower under the disaster loan program 
        would exceed $1,500,000.
          (2) Major source of employment.--If the Administrator 
        determines that the applicant constitutes a major source of 
        employment in its surrounding area (including a borrower that 
        was not a major source of employment before the disaster but 
        became a major source of employment after the disaster), as 
        determined by the Administrator, the Administrator may waive 
        the $1,500,000 limitation under paragraph (1).
  (f) Preconsideration Process.--The Administrator shall establish a 
preconsideration process under which the Administrator--
          (1) may collect all relevant materials necessary for 
        processing a loan to a small business concern under this 
        section before a reservist expecting activation who is employed 
        by the small business concern is activated; and
          (2) shall distribute funds for any loan approved under 
        paragraph (1) if the reservist expecting activation is 
        activated.
  (g) Outreach and Technical Assistance Program.--
          (1) In general.--The Administrator, in consultation with the 
        Secretary of Veterans Affairs and the Secretary of Defense, may 
        develop a comprehensive outreach and technical assistance 
        program (referred to in this subsection as the ``program'') 
        to--
                  (A) market the loans available under this section to 
                reservists and family members of reservists (including 
                both reservists that are on active duty and reservists 
                that are not on active duty); and
                  (B) provide technical assistance to a small business 
                concern applying for a loan under this section.
          (2) Components.--The program shall--
                  (A) incorporate appropriate websites maintained by 
                the Administration, the Department of Veterans Affairs, 
                and the Department of Defense; and
                  (B) require that information on the program be made 
                available to small business concerns directly through--
                          (i) the district offices and resource 
                        partners of the Administration, including small 
                        business development centers, women's business 
                        centers, and the SCORE; and
                          (ii) the Department of Veterans Affairs, the 
                        Department of Defense, and other Federal 
                        agencies.
          (3) Report.--
                  (A) In general.--The Administrator shall submit to 
                Congress a biannnual report on the status of the 
                program.
                  (B) Contents.--A report under subparagraph (A) shall 
                include--
                          (i) for the 6-month period ending on the date 
                        of the report--
                                  (I) the number of loans approved 
                                under this section;
                                  (II) the number of loans disbursed 
                                under this section; and
                                  (III) the total amount disbursed 
                                under this section; and
                          (ii) recommendations, if any, to make the 
                        program more effective in serving small 
                        business concerns that employ reservists.
                  (C) Repeal.--This paagraph is repealed effective 
                February 14, 2011.
  (h) Noncollateralized Loans.--
          (1) In general.--Notwithstanding any other provision of law, 
        the Administrator may make a loan under this section of not 
        more than $50,000 without collateral.
          (2) Deferral of payment.--The Administrator may defer payment 
        of principal and interest on a loan described in paragraph (1) 
        during the longer of--
                  (A) the one-year period beginning on the date of the 
                initial disbursement of the loan; or
                  (B) the period during which the essential employee is 
                on active duty.
  (i) Priority.--The Administrator shall--
          (1) give priority to any application for a loan under this 
        section; and
          (2) process and make a determination regarding applications 
        under this section prior to processing or making a 
        determination on other loan applications under the disaster 
        loan program, on a rolling basis.
Sec. 21304. Public awareness of disaster declaration and application 
                    periods
  (a) Coordination With FEMA.--
          (1) In general.--Notwithstanding any other provision of law, 
        for any disaster declared under this chapter or major disaster 
        (including any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title), the 
        Administrator, in consultation with the Administrator of the 
        Federal Emergency Management Agency, shall ensure, to the 
        maximum extent practicable, that all application periods for 
        disaster relief under this subtitle correspond with application 
        deadlines established under the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
        or as extended by the President.
          (2) Deadlines.--Notwithstanding any other provision of law, 
        not later than 10 days before the closing date of an 
        application period for a major disaster (including any major 
        disaster relating to which the Administrator declares 
        eligibility for additional disaster assistance under section 
        21308 of this title), the Administrator, in consultation with 
        the Administrator of the Federal Emergency Management Agency, 
        shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report that 
        includes--
                  (A) the deadline for submitting applications for 
                assistance under this subtitle relating to the major 
                disaster;
                  (B) information regarding the number of loan 
                applications and disbursements processed by the 
                Administrator relating to the major disaster for each 
                day during the period beginning on the date on which 
                the major disaster was declared and ending on the date 
                of the report; and
                  (C) an estimate of the number of potential applicants 
                that have not submitted an application relating to the 
                major disaster.
  (b) Public Awareness of Disasters.--If a disaster is declared under 
this chapter or the Administrator declares eligibility for additional 
disaster assistance under section 21308 of this title, the 
Administrator shall make every effort to communicate through radio, 
television, print, and web-based outlets all relevant information 
needed by disaster loan applicants, including--
          (1) the date of the declaration;
          (2) the names of cities and towns within the disaster area;
          (3) loan application deadlines related to the disaster;
          (4) all relevant contact information for victim services 
        available through the Administrator (including links to small 
        business development center websites);
          (5) links to relevant Federal and State disaster assistance 
        websites, including links to websites providing information 
        regarding assistance available from the Federal Emergency 
        Management Agency;
          (6) information on eligibility criteria for the disaster 
        assistance programs, including where loan applications can be 
        found; and
          (7) loan application materials that clearly state the 
        function of the Administration as the Federal source of 
        disaster loans for homeowners and renters.
  (c) Marketing and Outreach.--The Administrator shall create a 
marketing and outreach plan that--
          (1) encourages a proactive approach to the disaster relief 
        efforts of the Administrator;
          (2) makes clear the services provided by the Administrator, 
        including contact information, application information, and 
        timelines for submitting applications, the review of 
        applications, and the disbursement of funds;
          (3) describes each of the disaster assistance programs, 
        including how each disaster assistance program is made 
        available and the eligibility requirements for each disaster 
        assistance program;
          (4) provides for regional marketing, focusing on disasters 
        occurring in each Administration region before June 18, 2008, 
        and likely scenarios for disasters in each Administration 
        region; and
          (5) ensures that the marketing plan is made available at 
        small business development centers and on the website of the 
        Administration.
Sec. 21305. Disaster loan processing
  (a) Major Disaster Loan Processing and Loss Verification by Qualified 
Private Contractors.--
          (1) Major disaster loan processing.--The Administrator may 
        enter into an agreement with a qualified private contractor, as 
        determined by the Administrator, to process loans under this 
        chapter in the event of a major disaster (including any major 
        disaster relating to which the Administrator declares 
        eligibility for additional disaster assistance under section 
        21308 of this title), under which the Administrator shall pay 
        the contractor a fee for each loan processed.
          (2) Loan loss verification.--The Administrator may enter into 
        an agreement with a qualified lender or loss verification 
        professional, as determined by the Administrator, to verify 
        losses for loans under this chapter in the event of a major 
        disaster (including any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title), under which the 
        Administrator shall pay the lender or verification professional 
        a fee for each loan for which the lender or verification 
        professional verifies a loss.
  (b) Coordination of Efforts Between the Administrator and the 
Commissioner of Internal Revenue To Expedite Loan Processing.--The 
Administrator and the Commissioner of Internal Revenue shall, to the 
maximum extent practicable, ensure that all relevant and allowable tax 
records for loan approval are shared with loan processors in an 
expedited manner on request by the Administrator.
  (c) Information Tracking and Followup System.--
          (1) Information tracking.--
                  (A) In general.--The Administrator shall develop, 
                implement, and maintain a centralized information 
                system to track communications between Administration 
                personnel and applicants for disaster assistance.
                  (B) Information to be recorded.--The information 
                system shall ensure that when an applicant for disaster 
                assistance communicates with Administration personnel 
                on a matter relating to the application, the following 
                information is recorded:
                          (i) The method of communication.
                          (ii) The date of the communication.
                          (iii) The identity of the Administration 
                        personnel.
                          (iv) A summary of the subject matter of the 
                        communication.
          (2) Followup.--The Administrator shall ensure that an 
        applicant for disaster assistance receives, by telephone, mail, 
        or electronic mail, followup communications from Administration 
        personnel at all critical stages of the application process, 
        including the following:
                  (A) When Administration personnel determine that 
                additional information or documentation is required to 
                process the application.
                  (B) When Administration personnel determine whether 
                to approve or deny the disaster assistance.
                  (C) When the primary contact person managing the 
                application for disaster assistance has changed.
  (d) Disaster Assistance Processing Redundancy.--The Administrator 
shall ensure that the Administration has in place a facility for 
disaster assistance processing that, when the Administration's primary 
facility for disaster loan processing becomes unavailable, is able to 
take over all disaster loan processing from the primary facility within 
2 days.
Sec. 21306. Disaster assistance employees
  (a) In General.--In carrying out the disaster assistance programs, 
the Administrator may, where practicable, ensure that the number of 
full-time equivalent employees--
          (1) in the Office of the Disaster Assistance is not fewer 
        than 800; and
          (2) in the Disaster Cadre of the Administration is not fewer 
        than 1,000.
  (b) Report.--In carrying out the disaster assistance programs, if the 
number of full-time employees for the Office of Disaster Assistance or 
the Disaster Cadre of the Administration is below the level required by 
subsection (a) for that office, not later than 21 days after the date 
on which the staffing level decreases below the level required by 
subsection (a), the Administrator shall submit to the Committee on 
Appropriations and Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Appropriations and Committee on Small 
Business of the House of Representatives a report that--
          (1) details staffing levels on that date;
          (2) requests, if practicable and determined to be appropriate 
        by the Administrator, additional funds for additional 
        employees; and
          (3) contains such additional information as the Administrator 
        determines to be appropriate.
Sec. 21307. Maximum loan amount
  (a) Aggregate Loan Amounts.--Except as provided in subsection (b), 
and notwithstanding any other provision of law, the aggregate loan 
amount outstanding and committed to a borrower under the disaster loan 
program shall not exceed $2,000,000.
  (b) Waiver.--The Administrator may increase the aggregate loan amount 
under subsection (a) for loans relating to a disaster to a level 
established by the Administrator based on appropriate economic 
indicators for the region in which the disaster occurred.
Sec. 21308. Declaration of eligibility for additional disaster 
                    assistance
  (a) Definitions.--In this section:
          (1) Eligible small business concern.--The term ``eligible 
        small business concern'' means a small business concern--
                  (A) that has suffered major disaster-related 
                substantial economic injury as a result of a major 
                disaster; and
                  (B)(i) for which not less than 25 percent of the 
                market share of the small business concern is from 
                business transacted in the major disaster area;
                  (ii) for which not less than 25 percent of an input 
                into a production process of the small business concern 
                is from the major disaster area; or
                  (iii) that relies on a provider located in the major 
                disaster area for a service that is not readily 
                available elsewhere.
          (2) Major disaster-related substantial economic injury.--The 
        term ``major disaster-related substantial economic injury'' 
        means economic harm to a business concern that results in the 
        inability of the business concern to--
                  (A) meet its obligations as they mature;
                  (B) meet its ordinary and necessary operating 
                expenses; or
                  (C) market, produce, or provide a product or service 
                ordinarily marketed, produced, or provided by the 
                business concern because the business concern relies on 
                materials from the major disaster area or sells or 
                markets in the major disaster area.
  (b) Declaration of Eligibility.--If the President declares a major 
disaster, the Administrator may declare eligibility for additional 
disaster assistance in accordance with this section.
  (c) Threshold.--A major disaster for which the Administrator declares 
eligibility for additional disaster assistance under this section shall 
be a major disaster that--
          (1) results in--
                  (A) extraordinary levels of casualties or damage; or
                  (B) disruption severely affecting the population 
                (including a mass evacuation), the infrastructure, the 
                environment, the economy, national morale, or 
                government functions in an area;
          (2) is comparable to a catastrophic incident described in the 
        Administrator's national response plan (including any successor 
        to the national response plan), unless the national response 
        plan expires and there is no successor to the plan, in which 
        case this paragraph shall be of no effect; and
          (3) is of such size and scope that--
                  (A) the disaster loan program is incapable of 
                providing adequate and timely assistance to individuals 
                or business concerns located within the major disaster 
                area; or
                  (B) a significant number of business concerns outside 
                the major disaster area have suffered major disaster-
                related substantial economic injury as a result of the 
                major disaster.
  (d) Additional Economic Injury Disaster Loan Assistance.--
          (1) In general.--If the Administrator declares eligibility 
        for additional disaster assistance under this section, the 
        Administrator may make such loans under this subsection as the 
        Administrator determines to be appropriate to eligible small 
        business concerns located anywhere in the United States.
          (2) Processing time.--
                  (A) In general.--If the Administrator determines that 
                the average processing time for applications for 
                disaster loans under this subsection relating to a 
                specific major disaster is more than 15 days, the 
                Administrator shall give priority to the processing of 
                such applications submitted by eligible small business 
                concerns located inside the major disaster area until 
                the Administrator determines that the average 
                processing time for such applications is not more than 
                15 days.
                  (B) Suspension of applications from outside major 
                disaster area.--If the Administrator determines that 
                the average processing time for applications for 
                disaster loans under this subsection relating to a 
                specific major disaster is more than 30 days, the 
                Administrator shall suspend the processing of such 
                applications submitted by eligible small business 
                concerns located outside the major disaster area until 
                the Administrator determines that the average 
                processing time for such applications is not more than 
                15 days.
          (3) Loan terms.--A loan under this subsection shall be made 
        on the same terms as a loan under section 21302 of this title.
Sec. 21309. Interest rates
  (a) In General.--Notwithstanding any other provision of law, except 
as provided in subsection (b), the interest rate on the Administrator's 
share of a loan under the disaster loan program shall not exceed--
          (1) the average annual interest rate on all interest-bearing 
        obligations of the United States then forming a part of the 
        public debt as computed at the end of the fiscal year next 
        preceding the date of the loan and adjusted to the nearest 
        0.125 percent; plus
          (2) 0.25 percent.
  (b) Loans Under Section 21301 or 21302.--
          (1) In general.--The interest rate for a loan under section 
        21301 or 21302 of this title shall not exceed the rate of 
        interest that is in effect at the time of the occurrence of the 
        disaster.
          (2) Determination.--Notwithstanding any other provision of 
        law, the interest rate on the Federal share of a loan under 
        section 21301 or 21302 of this title, determined as of the date 
        of the disaster, shall be--
                  (A) in the case of a homeowner unable to secure 
                credit elsewhere, the lesser of--
                          (i) a rate prescribed by the Administrator, 
                        not to exceed half a rate determined by the 
                        Secretary of the Treasury taking into 
                        consideration the current average market yield 
                        on outstanding marketable obligations of the 
                        United States with remaining periods to 
                        maturity comparable to the average maturities 
                        of such loans plus an additional charge of not 
                        to exceed one percent per year as determined by 
                        the Administrator, and adjusted to the nearest 
                        0.125 percent; or
                          (ii) 4 percent per year;
                  (B) in the case of a homeowner able to secure credit 
                elsewhere, the lesser of--
                          (i) a rate prescribed by the Administrator, 
                        not to exceed a rate determined by the 
                        Secretary of the Treasury taking into 
                        consideration the current average market yield 
                        on outstanding marketable obligations of the 
                        United States with remaining periods to 
                        maturity comparable to the average maturities 
                        of such loans plus an additional charge of not 
                        to exceed one percent per year as determined by 
                        the Administrator, and adjusted to the nearest 
                        0.125 percent; or
                          (ii) 8 percent per year;
                  (C) in the case of a business concern, private 
                nonprofit organization, or other concern (including an 
                agricultural cooperative) unable to obtain credit 
                elsewhere, not to exceed 4 percent per year; or
                  (D) in the case of a business concern able to obtain 
                credit elsewhere, a rate prescribed by the 
                Administrator, not to exceed the lowest of--
                          (i) the rate prevailing in the private market 
                        for similar loans;
                          (ii) the rate prescribed by the Administrator 
                        as the maximum interest rate for deferred 
                        participation (guaranteed) loans under the 
                        general business loan program; or
                           (iii) 8 percent per year.
Sec. 21310. Maximum term
  No loan under the disaster loan program (including any renewal or 
extension of a loan) may be made for a period or periods exceeding--
          (1) 30 years; or
          (2) in the case of a loan to a business concern under section 
        21309(b)(2)(D) of this title that is able to obtain credit 
        elsewhere, 3 years.
Sec. 21311. Deferment of repayment
  (a) In General.--In making a loan under this chapter, the 
Administrator may provide the person receiving the loan an option to 
defer repayment on the loan.
  (b) Deferment Period.--The period of a deferment under subsection (a) 
shall not exceed 4 years.
Sec. 21312. Suspension of payments
  (a) In General.--The Administrator may consent to a suspension in the 
payment of principal and interest on, and to an extension in the 
maturity of, the Federal share of a loan under the disaster loan 
program, for a period not to exceed 5 years, if--
          (1) the borrower under the loan is a homeowner or a small 
        business concern;
          (2) the loan was made to enable--
                  (A) the homeowner to repair or replace his or her 
                home; or
                  (B) the small business concern to repair or replace 
                plant or equipment that was damaged or destroyed as the 
                result of a disaster described in clause (i) or (ii) of 
                section 21302(b)(2)(A) of this title; and
          (3) the Administrator determines that the suspension is 
        necessary to avoid severe financial hardship.
  (b) Purchase of Participation or Assumption of Obligation.--During 
any period in which principal and interest charges are suspended under 
subsection (a), the Administrator shall, on the request of any person 
having a participation in the loan, purchase the participation, or 
assume the obligation of the borrower, for the balance of the period, 
to make principal and interest payments on the non-Federal share of the 
loan, if--
          (1) the Administrator determines that the action is necessary 
        to avoid a default; and
          (2) the borrower agrees to make payments to the Administrator 
        in an aggregate amount equal to the amount paid in the 
        borrower's behalf by the Administrator, in such manner and at 
        such times (during or after the term of the loan) as the 
        Administrator determines having due regard for the purposes 
        sought to be achieved by this subsection.
Sec. 21313. Participation in loans on deferred basis
  In an agreement to participate in a loan on a deferred basis under 
the disaster loan program, participation by the Administrator shall not 
be in excess of 90 percent of the balance of the loan outstanding at 
the time of disbursement.
Sec. 21314. Assistance and counseling for disaster victims
  In administering the disaster assistance programs, to the maximum 
extent possible, the Administrator shall provide assistance and 
counseling to disaster victims in--
          (1) filing applications (including the provision of 
        information relevant to loan processing); and
          (2) loan closing and prompt disbursement of loan proceeds.
Sec. 21315. Priority in allocating funds
  In administering the disaster assistance programs, to the maximum 
extent possible, the Administrator shall give the disaster loan program 
a high priority in allocating funds for administrative expenses.
Sec. 21316. Prohibition of cancellation of certain disaster loans
  No portion of a loan under section 21301 or 21302 of this title shall 
be subject to cancellation under any provision of law.
Sec. 21317. Prohibition of net earnings clauses
  In making a loan under this chapter, the Administrator shall not 
require the borrower to pay any nonamortized amount for the first 5 
years after repayment begins.
Sec. 21318. Biennial disaster simulation exercise
  (a) In General.--The Administrator shall conduct a disaster 
simulation exercise at least once every 2 fiscal years.
  (b) Requirements.--A disaster simulation exercise shall--
          (1) include the participation of, at a minimum, not fewer 
        than 50 percent of the individuals in the disaster reserve 
        corps; and
          (2) test, at maximum capacity, all of the information 
        technology and telecommunications systems of the Administrator 
        that are vital to the activities of the Administrator during a 
        disaster.
  (c) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on a disaster simulation 
exercise conducted under subsection (a).
Sec. 21319. Disaster planning responsibilities
  (a) Definitions.--In this section:
          (1) Disaster planning officer.--The term``disaster planning 
        officer'' means the individual to whom the disaster planning 
        function of the Administrator is assigned under subsection (b).
          (2) State.--The term ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, the Virgin Islands, Guam, American Samoa, and 
        any territory or possession of the United States.
  (b) Assignment of Small Business Administration Disaster Planning 
Responsibilities.--The disaster planning function of the Administrator 
shall be assigned to an individual appointed by the Administrator who--
          (1) is not an employee of the Office of Disaster Assistance 
        of the Administration;
          (2) has proven management ability;
          (3) has substantial knowledge in the field of disaster 
        readiness and emergency response; and
          (4) has demonstrated significant experience in the area of 
        disaster planning.
  (c) Responsibilities.--The disaster planning officer shall report 
directly and solely to the Administrator and shall be responsible for--
          (1) developing, implementing, and maintaining the 
        comprehensive disaster response plan under section 21320 of 
        this title;
          (2) ensuring that there are in-service and pre-service 
        training procedures for the disaster response staff of the 
        Administration;
          (3) coordinating and directing the training exercises of the 
        Administration relating to disasters, including disaster 
        simulation exercises and disaster exercises coordinated with 
        other government agencies; and
          (4) other responsibilities relevant to disaster planning and 
        readiness, as determined by the Administrator.
  (d) Coordination.--In carrying out the responsibilities described in 
subsection (c), the disaster planning officer shall coordinate with--
          (1) the Office of Disaster Assistance of the Administration;
          (2) the Administrator of the Federal Emergency Management 
        Agency; and
          (3) other Federal, State, and local disaster planning 
        offices, as necessary.
  (e) Resources.--The Administrator shall ensure that the disaster 
planning officer has adequate resources to carry out the 
responsibilities described in subsection (c).
Sec. 21320. Disaster response plan
  (a) Definition of State.--In this section, the term ``State'' means a 
State of the United States, the District of Columbia, Puerto Rico, the 
Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and 
any territory or possession of the United States.
  (b) Plan.--
          (1) In general.--The Administrator shall develop, implement, 
        and maintain a comprehensive written disaster response plan.
          (2) Contents.--The disaster response plan shall include the 
        following:
                  (A) For each Administration region, a description of 
                the disasters most likely to occur in the 
                Administration region.
                  (B) For each disaster described under subparagraph 
                (A)--
                          (i) an assessment of the disaster;
                          (ii) an assessment of the demand for 
                        Administration assistance most likely to occur 
                        in response to the disaster;
                          (iii) an assessment of the needs of the 
                        Administration, with respect to such resources 
                        as information technology, telecommunications, 
                        human resources, and office space, to meet the 
                        demand referred to in clause (ii); and
                          (iv) guidelines pursuant to which the 
                        Administrator will coordinate with other 
                        Federal agencies and with State and local 
                        authorities to best respond to the demand 
                        described in clause (ii) and to best use the 
                        resources referred to in that clause.
  (c) Plan Revision.--The Administrator shall update the disaster 
response plan--
          (1) annually; and
          (2) following any major disaster relating to which the 
        Administrator declares eligibility for additional disaster 
        assistance under section 21308 of this title.
  (d) Required Knowledge.--The Administrator shall carry out 
subsections (b) and (c) through an individual with substantial 
knowledge in the field of disaster readiness and emergency response.
  (e) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on the disaster response plan.
Sec. 21321. Coordination of disaster assistance programs with FEMA
  (a) In General.--The Administrator shall ensure that the disaster 
assistance programs of the Administration are coordinated, to the 
maximum extent practicable, with the disaster assistance programs of 
the Federal Emergency Management Agency.
  (b) Regulations.--
          (1) In general.--The Administrator, in consultation with the 
        Administrator of the Federal Emergency Management Agency, shall 
        establish regulations to ensure that each application for 
        disaster assistance is submitted as quickly as practicable to 
        the Administration or directed to the appropriate agency under 
        the circumstances.
          (2) Revision.--The regulations shall be revised annually.
  (c) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on the regulations under 
subsection (b).
Sec. 21322. Plans to secure sufficient office space
  (a) In General.--The Administrator shall develop long-term plans to 
secure sufficient office space to accommodate an expanded workforce in 
times of disaster.
  (b) Report.--The Administrator shall include in a report under 
section 10717(g) of this title a report on the plans developed under 
subsection (a).
Sec. 21323. Bond guarantees in procurements relating to a major 
                    disaster
  (a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement 
relating to a major disaster, the Administrator may, on such terms and 
conditions as the Administrator may prescribe, guarantee and enter into 
commitments to guarantee a surety against loss resulting from a breach 
of the terms of a bid bond, payment bond, performance bond, or bonds 
ancillary thereto, by a principal on any total work order or contract 
amount at the time of bond execution that does not exceed $5,000,000.
  (b) Increase in Amount.--On request of the head of any Federal agency 
(other than the Administration) involved in reconstruction efforts in 
response to a major disaster, the Administrator may guarantee and enter 
into a commitment to guarantee a surety against loss under subsection 
(a) on any total work order or contract amount at the time of bond 
execution that does not exceed $10,000,000.
  (c) Limitation on Use of Other Funds.--The Administrator may carry 
out this section only with amounts appropriated in advance specifically 
to carry out this section.
Sec. 21324. Civil penalty
  A person that wrongfully misapplies the proceeds of a loan made under 
the disaster loan program shall be liable to the Administrator for a 
civil penalty in the amount that is equal to 1.5 times the original 
principal amount of the loan.

            CHAPTER 215--PRIVATE DISASTER ASSISTANCE PROGRAM

Sec.
21501.  Definitions.
21502.  Program.
21503.  Use of loans.
21504.  Online applications.
21505.  Maximum amounts.
21506.  Terms and conditions.
21507.  Lenders.
21508.  Fees.
21509.  Documentation.
21510.  Purchase of loans.
21511.  Regulations.
21512.  Authorization of appropriations.
Sec. 21501. Definitions
  In this chapter:
          (1) Eligible individual.--The term ``eligible individual'' 
        means an individual who is eligible for disaster assistance 
        under section 21301 of this title relating to a major disaster 
        relating to which the Administrator declares eligibility for 
        additional disaster assistance under section 21308 of this 
        title.
          (2) Major disaster area.--The term ``major disaster area'' 
        means an area for which the President declares a major disaster 
        relating to which the Administrator declares eligibility for 
        additional disaster assistance under section 21308 of this 
        title, during the period of the major disaster declaration.
          (3) Qualified private lender.--The term ``qualified private 
        lender'' means a privately-owned bank or other lending 
        institution that--
                  (A) is not a preferred lender; and
                  (B) the Administrator determines meets the criteria 
                established under section 20511 of this title.
          (4) Small business concern.--The term ``small business 
        concern'' means a small business concern (as defined in section 
        10101 or 30101 of this title).
Sec. 21502. Program
  The Administrator shall carry out a program, to be known as the 
private disaster assistance program, under which the Administrator may 
guarantee timely payment of principal and interest, as scheduled, on 
any loan made to a small business concern located in a major disaster 
area or to an eligible individual.
Sec. 21503. Use of loans
  A loan guaranteed by the Administrator under this chapter may be used 
for any purpose authorized under chapter 213.
Sec. 21504. Online applications
  (a) Establishment of Process.--The Administrator may establish, 
directly or through an agreement with another entity, an online 
application process for loans guaranteed under this chapter.
  (b) Other Federal Assistance.--The Administrator may coordinate with 
the head of any other appropriate Federal agency so that any 
application submitted through an online application process established 
under this section may be considered for any other Federal assistance 
program for disaster relief.
  (c) Consultation.--In establishing an online application process 
under this section, the Administrator shall consult with appropriate 
persons from the public and private sectors, including private lenders.
Sec. 21505. Maximum amounts
  (a) Guarantee Percentage.--The Administrator may guarantee not more 
than 85 percent of a loan under this chapter.
  (b) Loan Amount.--The maximum amount of a loan guaranteed under this 
chapter shall be $2,000,000.
Sec. 21506. Terms and conditions
  A loan guaranteed under this chapter shall be made under the same 
terms and conditions as a loan under chapter 213.
Sec. 21507. Lenders
  (a) In General.--
          (1) Loans to an eligible individual.--A loan guaranteed under 
        this chapter made to an eligible individual may be made by a 
        preferred lender.
          (2) Loans to a small business concern.--A loan guaranteed 
        under this chapter made to a small business concern may be made 
        by a qualified private lender or by a preferred lender that 
        also makes loans to eligible individuals.
  (b) Compliance.--If the Administrator determines that a preferred 
lender knowingly failed to comply with the underwriting standards for 
loans guaranteed under this chapter or violated the terms of the 
standard operating procedure agreement between the preferred lender and 
the Administrator, the Administrator shall do one or both of the 
following:
          (1) Exclude the preferred lender from participating in the 
        private disaster assistance program.
          (2) Exclude the preferred lender from participating in the 
        preferred lender program for a period of not more than 5 years.
Sec. 21508. Fees
  (a) In General.--The Administrator shall not collect a guarantee fee 
under this chapter.
  (b) Origination Fee.--The Administrator may pay a qualified private 
lender or preferred lender an origination fee for a loan guaranteed 
under this chapter in an amount agreed on in advance between the 
qualified private lender or preferred lender and the Administrator.
Sec. 21509. Documentation
  (a) In General.--A qualified private lender or preferred lender may 
use its own loan documentation for a loan guaranteed by the 
Administrator under this chapter, to the extent authorized by the 
Administrator.
  (b) Not Part of Qualification Criteria.--The ability of a lender to 
use its own loan documentation for a loan guaranteed under this chapter 
shall not be considered part of the criteria for becoming a qualified 
private lender under the regulations promulgated under section 21511 of 
this title.
Sec. 21510. Purchase of loans
  The Administrator may enter into an agreement with a qualified 
private lender or preferred lender to purchase any loan guaranteed 
under this chapter.
Sec. 21511. Regulations
  The Administrator shall promulgate regulations establishing permanent 
criteria for qualified private lenders.
Sec. 21512. Authorization of appropriations
  (a) In General.--Amounts necessary to carry out this chapter shall be 
made available from amounts appropriated to the Administration to carry 
out chapter 213.
  (b) Authority To Reduce Interest Rates and Other Terms and 
Conditions.--Funds appropriated to the Administration to carry out this 
chapter may be used by the Administrator to meet the loan terms and 
conditions specified in section 21506 of this title.

           CHAPTER 217--IMMEDIATE DISASTER ASSISTANCE PROGRAM

Sec.
21701.  Definition of program.
21702.  Program.
21703.  Eligibility.
21704.  Use of proceeds.
21705.  Loan terms.
21706.  Approval or disapproval.
Sec. 21701. Definition of program
  In this chapter, the term ``program'' means the immediate disaster 
assistance program established under section 21702 of this title.
Sec. 21702. Program
  The Administrator shall carry out a program, to be known as the 
immediate disaster assistance program, under which the Administrator 
participates on a deferred (guaranteed) basis in 85 percent of the 
balance of the financing outstanding at the time of disbursement of the 
loan if the balance is less than or equal to $25,000 for business 
concerns affected by a disaster.
Sec. 21703. Eligibility
  To receive a loan guarantee under section 21702 of this title, an 
applicant shall apply for, and meet basic eligibility standards for, a 
loan under chapter 213 or 215.
Sec. 21704. Use of proceeds
  A business concern that receives a loan under chapter 213 or 215 
shall use the proceeds of the loan to repay all loans guaranteed under 
section 21702 of this title, if any, before using the proceeds for any 
other purpose.
Sec. 21705. Loan terms
  (a) No Prepayment Penalty.--There shall be no prepayment penalty on a 
loan guaranteed under section 21702 of this title.
  (b) Repayment.--A business concern that receives a loan guaranteed 
under section 21702 of this title and that is disapproved for a loan 
under chapter 213 or 215 shall repay the loan guaranteed under section 
21702 of this title not later than the date established by the 
Administrator, which shall not be earlier than 10 years after the date 
on which the loan guaranteed under section 21702 of this title is 
disbursed.
Sec. 21706. Approval or disapproval
  The Administrator shall ensure that each applicant for a loan under 
the program receives a decision approving or disapproving the 
application within 36 hours after the Administrator receives the 
application.

  CHAPTER 219--EXPEDITED DISASTER ASSISTANCE BUSINESS LOAN GUARANTEE 
                                PROGRAM

Sec.
21901.  Definition of program.
21902.  Program.
21903.  Consultation.
21904.  Regulations.
Sec. 21901. Definition of program
  In this chapter, the term ``program'' means the expedited disaster 
assistance business loan guarantee program established under section 
21902 of this title.
Sec. 21902. Program
  The Administrator shall establish and implement an expedited disaster 
assistance business loan guarantee program under which the 
Administrator may, on an expedited basis, guarantee timely payment of 
principal and interest, as scheduled on any loan made to an eligible 
small business concern under section 21308 of this title.
Sec. 21903. Consultation
  In establishing the program, the Administrator shall consult with--
          (1) appropriate personnel (including district office 
        personnel) of the Administration;
          (2) appropriate technical assistance providers (including 
        small business development centers);
          (3) appropriate lenders and credit unions; and
          (4) the Committee on Small Business and Entrepreneurship of 
        the Senate and Committee on Small Business of the House of 
        Representatives.
Sec. 21904. Regulations
  (a) In General.--The Administrator shall issue regulations 
establishing and implementing the program in accordance with this 
chapter.
  (b) Contents.--The regulations shall--
          (1) identify whether appropriate uses of funds under the 
        program may include--
                  (A) paying employees;
                  (B) paying bills and other financial obligations;
                  (C) making repairs;
                  (D) purchasing inventory;
                  (E) restarting or operating a small business concern 
                in the community in which the small business concern 
                was conducting operations prior to the applicable major 
                disaster or in a neighboring area in the disaster area; 
                or
                  (F) covering additional costs until the small 
                business concern is able to obtain funding through 
                insurance claims, Federal assistance programs, or other 
                sources; and
          (2) set the terms and conditions of any loan made under the 
        program.
  (c) Terms and Conditions.--A loan guaranteed by the Administrator 
under the program--
          (1) shall be for not more than $150,000;
          (2) shall be a short-term loan, not to exceed 180 days, 
        except that the Administrator may extend the term as the 
        Administrator determines to be appropriate on a case-by-case 
        basis;
          (3) shall have an interest rate not to exceed 300 basis 
        points above the interest rate established by the Board of 
        Governors of the Federal Reserve System that one bank charges 
        another for reserves that are lent on an overnight basis on the 
        date on which the loan is made;
          (4) shall have no prepayment penalty;
          (5) may be made only to a borrower that meets the 
        requirements for a loan under chapter 213;
          (6) may be refinanced as part of any subsequent disaster 
        assistance provided under chapter 213;
          (7) may receive expedited loss verification and loan 
        processing, if the applicant--
                  (A) is a major source of employment in the disaster 
                area (which shall be determined in the same manner as 
                under section 21303(e)(2) of this title); or
                  (B) is vital to recovery efforts in the region 
                (including providing debris removal services, 
                manufactured housing, or building materials); and
          (8) shall be subject to such additional terms as the 
        Administrator determines to be appropriate.

                DIVISION E--BUSINESS DEVELOPMENT PROGRAM

                    CHAPTER 231--GENERAL PROVISIONS

Sec.
23101.  Definitions.
23102.  Establishment of business development program.
23103.  Unemployed or low-income individuals.
23104.  Restrictions on activities of Administration employees.
23105.  Encouragement of subcontracts.
23106.  Federal contracts, subcontracts, and deposits.
23107.  Business opportunity specialists.
23108.  Requests for investigation.
Sec. 23101. Definitions
  In this division:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Minority 
        Small Business and Capital Ownership Development.
          (2) Business activity target.--The term ``business activity 
        target'' means a target contained in a business plan for 
        contracts awarded other than through the program.
          (3) Business opportunity specialist.--The term ``business 
        opportunity specialist'' means an Administration employee 
        responsible for providing business development assistance to a 
        program participant.
          (4) Business plan.--The term ``business plan'' means the 
        business plan of a program participant under section 23318 of 
        this title.
          (5) Director.--The term ``Director'' means the Director of 
        the Division.
          (6) Disadvantaged owner.--The term ``disadvantaged owner'' 
        means an individual on whom eligibility is based for 
        participation in the business development program.
          (7) Division.--The term ``Division'' means the Division of 
        Program Certification and Eligibility established by section 
        10308 of this title.
          (8) Economically disadvantaged indian tribe.--The term 
        ``economically disadvantaged Indian tribe'' means an Indian 
        tribe that the Administrator determines to be economically 
        disadvantaged based on consideration of available information 
        such as--
                  (A) the per capita income of members of the Indian 
                tribe, excluding judgment awards;
                  (B) the percentage of the local Indian population 
                below the poverty level; and
                  (C) the Indian tribe's access to capital markets.
          (9) Executive agency.--The term ''executive agency'' has the 
        meaning given the term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
          (10) Graduate.--The term ``graduate'', with reference to a 
        program participant, means to graduate the program participant 
        from the program under section 23320 of this title.
          (11) Indian tribe.--The term ``Indian tribe'' means an Indian 
        tribe, band, nation, or other organized group or community of 
        Indians, including any Alaska Native village or regional or 
        village corporation (within the meaning of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1601 et seq.)) that--
                  (A) is recognized as eligible for the special 
                programs and services provided by the United States to 
                Indians because of their status as Indians; or
                  (B) is recognized as such by the State in which the 
                Indian tribe, band, nation, group, or community 
                resides.
          (12) Program.--The term ``program'' means the business 
        development program.
          (13) Program participant.--The term ``program participant'' 
        means a small business concern that is participating in the 
        program.
          (14) Program participation period.--The term ``program 
        participation period'', with respect to a program participant, 
        means the period of program participation applicable to the 
        program participant under section 23329 of this title.
          (15) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--
                  (A) In general.--The term ``small business concern 
                owned and controlled by socially and economically 
                disadvantaged individuals'' means a small business 
                concern--
                          (i) not less than 51 percent of which is 
                        unconditionally owned by--
                                  (I) one or more socially and 
                                economically disadvantaged individuals;
                                  (II) an economically disadvantaged 
                                Indian tribe (or a wholly owned 
                                business entity of an economically 
                                disadvantaged Indian tribe); or
                                  (III) an economically disadvantaged 
                                Native Hawaiian organization; and
                          (ii) the management and daily business 
                        operations of which are controlled by one or 
                        more--
                                  (I) socially and economically 
                                disadvantaged individuals;
                                  (II) members of an economically 
                                disadvantaged Indian tribe; or
                                  (III) Native Hawaiian organizations.
                  (B) Size determination for indian tribes.--In 
                determining the size of a concern owned by an 
                economically disadvantaged Indian tribe (or a wholly 
                owned business entity of an economically disadvantaged 
                Indian tribe) for purposes of subparagraph (A), the 
                concern's size shall be independently determined 
                without regard to its affiliation with the Indian 
                tribe, any entity of the tribal government, or any 
                other business enterprise owned by the Indian tribe, 
                unless the Administrator determines that one or more 
                such tribally owned business concerns have obtained, or 
                are likely to obtain, a substantial unfair competitive 
                advantage within an industry category.
          (16) Socially and economically disadvantaged individual.--
                  (A) In general.--The term ``socially and economically 
                disadvantaged individual'' means a member of a group of 
                socially disadvantaged individuals whose ability to 
                compete in the free enterprise system has been impaired 
                due to diminished capital and credit opportunities as 
                compared with others in the same business area who are 
                not socially disadvantaged.
                  (B) Determination of degree of diminished credit and 
                capital opportunities.--In determining the degree of 
                diminished credit and capital opportunities, the 
                Administrator shall consider the assets and net worth 
                of a socially disadvantaged individual.
                  (C) Net worth.--In computing personal net worth for 
                purposes of this paragraph, there shall be excluded--
                          (i) the value of investments that 
                        disadvantaged owners have in their concern, 
                        except that the value of such investments shall 
                        be taken into account when comparing the 
                        concern to other concerns in the same business 
                        area that are owned by other than socially 
                        disadvantaged persons; and
                          (ii) the equity that disadvantaged owners 
                        have in their primary personal residences, 
                        except that any portion of such equity that is 
                        attributable to unduly excessive withdrawals 
                        from a program participant or a concern 
                        applying for program participation shall be 
                        taken into account.
          (17) Socially disadvantaged individual.--
                  (A) In general.--The term ``socially disadvantaged 
                individual'' means a member of a group of individuals 
                who have been subjected to racial or ethnic prejudice 
                or cultural bias because of their identity as members 
                of the group without regard to their individual 
                qualities.
                  (B) Determination.--
                          (i) In general.--A determination under 
                        subparagraph (A) with respect to whether a 
                        group has been subjected to prejudice or bias 
                        shall be made by the Administrator after 
                        consultation with the Associate Administrator 
                        for Minority Small Business and Capital 
                        Ownership Development.
                          (ii) Nondelegability.--The authority of the 
                        Administrator under clause (i) may not be 
                        delegated.
          (18) Terminate.--The term ``terminate'', with reference to a 
        program participant, means to suspend or totally deny 
        assistance to a program participant under the program, prior to 
        the graduation of the program participant or prior to the 
        expiration of the program participant's program participation 
        period, under section 23321 of this title.
Sec. 23102. Establishment of business development program
  There is established within the Administration the business 
development program.
Sec. 23103. Unemployed or low-income individuals
  The program shall be used to--
          (1) assist in the establishment, preservation, and 
        strengthening of small business concerns and improve the 
        managerial skills employed in small business concerns, with 
        special attention to, and particular emphasis on the 
        preservation or establishment of, small business concerns that 
        are--
                  (A) located in urban or rural areas with high 
                proportions of unemployed or low-income individuals; or
                  (B) owned by low-income individuals; and
          (2) mobilize for those objectives private as well as public 
        managerial skills and resources.
Sec. 23104. Restrictions on activities of Administration employees
  (a) Activities and Transactions Relating to Ownership of a Program 
Participant.--
          (1) In general.--A person within the employ of the 
        Administration shall not, during the term of such employment 
        and for a period of 2 years after the employment has been 
        terminated, engage in any activity or transaction described in 
        paragraph (2) with respect to any program participant during 
        the person's term of employment, if the person participated 
        personally (directly or indirectly)--
                  (A) in decisionmaking responsibilities relating to 
                the program participant; or
                  (B) with respect to the administration of any 
                assistance provided to program participants generally 
                under the program.
          (2) Activities and transactions.--The activities and 
        transactions referred to in paragraph (1) are--
                  (A) the buying, selling, or receiving (except by 
                inheritance) of any legal or beneficial ownership of 
                stock or any other ownership interest or the right to 
                acquire any such interest;
                  (B) the entering into or execution of any written or 
                oral agreement (whether or not legally enforceable) to 
                purchase or otherwise obtain any right or interest 
                described in subparagraph (A); and
                  (C) the receipt of any other benefit or right that 
                may be an incident of ownership.
          (3) Annual certification.--
                  (A) In general.--An employee described in 
                subparagraph (B) shall annually submit to the 
                Administrator a written certification regarding 
                compliance with this section.
                  (B) Employee.--The employees referred to in 
                subparagraph (A) are--
                          (i) a regional administrator;
                          (ii) a district director;
                          (iii) the Associate Administrator;
                          (iv) an employee whose principal duties 
                        relate to the award of contracts or the 
                        provision of other assistance under the 
                        program; and
                          (v) such other employees as the Administrator 
                        may designate.
          (4) Civil penalties.--
                  (A) In general.--An employee or former employee of 
                the Administration who violates this section shall be 
                subject to a civil penalty, assessed by the Attorney 
                General, that shall not exceed 300 percent of the 
                maximum amount of gain that the employee realized or 
                could have realized as a result of engaging in the 
                activity and transaction prohibited by paragraph (1).
                  (B) False certification.--In addition to any other 
                remedy or sanction provided for under law (including a 
                regulation), a person who makes a false certification 
                under paragraph (3)(A) shall be subject to a civil 
                penalty under section 3802 of title 31.
  (b) Political Activities and Affiliations.--
          (1) Prohibition.--An employee of the Administration who has 
        authority to take, direct others to take, recommend, or approve 
        any action with respect to any program or activity under the 
        program shall not, with respect to any such action, exercise or 
        threaten to exercise that authority on the basis of the 
        political activity or affiliation of any person.
          (2) Reporting of solicitation to violate.--An employee of the 
        Administration whose participation in a violation of paragraph 
        (1) is directed or solicited shall expeditiously report the 
        direction or solicitation to the Inspector General of the 
        Administration.
          (3) Disciplinary action.--An employee of the Administration 
        who willfully and knowingly violates paragraph (1) or (2) shall 
        be subject to disciplinary action, which may consist of 
        separation from service, reduction in grade, suspension, or 
        reprimand.
          (4) Applicability.--Paragraphs (1) and (2) do not apply to an 
        action taken as a penalty or other enforcement of a violation 
        of any law (including a regulation) prohibiting or restricting 
        political activity.
          (5) Other prohibitions, measures, and liabilities.--
        Paragraphs (1) to (4) are in addition to, and not in lieu of, 
        any other prohibitions, measures, or liabilities that may arise 
        under any other provision of law.
Sec. 23105. Encouragement of subcontracts
  (a) In General.--The Administrator shall encourage the placement of 
subcontracts by businesses with small business concerns located in 
areas of high concentration of unemployed or low-income individuals and 
with program participants.
  (b) Incentives and Assistance.--The Administrator may provide 
incentives and assistance to a business to aid in the training and 
upgrading of potential program participant subcontractors.
Sec. 23106. Federal contracts, subcontracts, and deposits
  The Administrator shall take such steps as are necessary and 
appropriate, in coordination and cooperation with the heads of other 
Federal agencies, to ensure that contracts, subcontracts, and deposits 
made by the Federal Government or with programs aided with Federal 
funds are placed in such a way as to further the purposes of the 
program.
Sec. 23107. Business opportunity specialists
  (a) Position.--In each Administration field office responsible for 
assisting one or more program participants there shall be a position 
designated as a business opportunity specialist.
  (b) Adequate Number.--To the maximum extent practicable, the 
Administrator shall ensure that an adequate number of business 
opportunity specialists are assigned to each district office to carry 
out the responsibilities of the program and to assist program 
participants.
  (c) Training.--The Administrator shall take such actions as are 
appropriate to ensure that any person employed as a business 
opportunity specialist receives adequate periodic training to ensure 
that the employee is capable of assisting program participants in fully 
utilizing the program and meeting the requirements of this subtitle and 
subtitle I.
Sec. 23108. Requests for investigation
  The Committee on Small Business and Entrepreneurship of the Senate or 
the Committee on Small Business of the House of Representatives may 
request that the Office of the Inspector General of the Administration 
conduct an investigation of any activity conducted under the program. 
Not later than 30 days after the receipt of such a request, the 
Inspector General shall inform the committee, in writing, of the 
disposition of the request.

                        CHAPTER 233--CONTRACTING

Sec.
23301.  Contracting authority.
23302.  Contracting procedure.
23303.  Fair market price.
23304.  Award after completion of program participation period.
23305.  Award through competition.
23306.  Participation by program participants in negotiation of 
          contracts to be awarded noncompetitively.
23307.  Sole source award.
23308.  Annual certification regarding ownership and control.
23309.  Annual submission regarding economic disadvantage.
23310.  Review of economic disadvantage and withdrawal of assets.
23311.  Hearing on the record.
23312.  Program participant capability.
23313.  Percentages of contract performance by program participants.
23314.  Wholesalers and retailers.
23315.  Reporting by program participants to business opportunity 
          specialists.
23316.  Transfer of ownership or control.
23317.  Assistance for program participants.
23318.  Business plans.
23319.  Denial of further assistance.
23320.  Graduation.
23321.  Termination.
23322.  Evaluation of eligibility.
23323.  Limitation of eligibility to one small business concern.
23324.  Limitation on denial of admission into program based on 
          unavailability of specific contract opportunities.
23325.  Certification decision.
23326.  Review of new entrants into the program.
23327.  Program stages.
23328.  Attainment of business activity targets.
23329.  Program participation period.
23330.  Collection of data on program operations.
23331.  Approval of contract options and modifications.
23332.  Orderly and efficient management of program.
23333.  Participation in federally funded programs and projects.
Sec. 23301. Contracting authority
  (a) In General.--When the Administrator determines that such action 
is necessary or appropriate, the Administrator shall--
          (1) enter into contracts with procuring agencies obligating 
        the Administrator to furnish articles, equipment, supplies, 
        services, or materials to the Government or to perform 
        construction work for the Government; and
          (2) arrange for the performance of such contracts by 
        negotiating or otherwise letting a subcontract to one or more 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals--
                  (A) for the manufacture, supply, assembly of the 
                articles, equipment, supplies, materials, or parts 
                thereof, for the construction work, for the services, 
                or for servicing or processing in connection with the 
                manufacturing, construction, or services; or
                  (B) for such management services as are necessary to 
                enable the Administrator to perform the contract.
  (b) Construction Subcontracts.--To the maximum extent practicable, 
construction subcontracts awarded by the Administrator under the 
program shall be awarded within the county or State in which the work 
is to be performed.
  (c) Inapplicability to Certain Procurements.--The requirements of the 
program do not apply to--
          (1) a procurement under conditions described in--
                  (A) paragraph (2), (3), (4), (5), or (7) of section 
                303(c) of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 253(c)); or
                  (B) paragraph (2), (3), (4), (5), or (7) of section 
                2304(c) of title 10; or
          (2) a procurement by an executive agency for which the head 
        of the executive agency makes a determination in writing, after 
        consultation with the Administrator and the Administrator for 
        Federal Procurement Policy, that it is not appropriate or 
        reasonable to publish a notice before issuing a solicitation.
Sec. 23302. Contracting procedure
  (a) In General.--If the Administrator certifies to a contracting 
officer of a procuring agency that the Administrator is competent and 
responsible to perform a specific Government procurement contract to be 
let by the contracting officer, the contracting officer may let the 
contract to the Administrator on such terms and conditions as may be 
agreed on between the Administrator and the contracting officer.
  (b) Failure To Agree.--
          (1) In general.--If the Administrator and the contracting 
        officer fail to agree on a procurement contract--
                  (A) not later than 5 days after the date on which the 
                Administrator is notified of the contracting officer's 
                adverse decision, the Administrator may notify the 
                contracting officer of the intent to appeal the adverse 
                decision; and
                  (B) not later than 15 days after that date, the 
                Administrator shall file a written request for a 
                reconsideration of the adverse decision with the head 
                of the procuring agency.
          (2) Adverse decision.--For the purposes of paragraph (1)(A), 
        a contracting officer's adverse decision includes--
                  (A) a decision not to make available for award under 
                the program a particular procurement requirement; and
                  (B) a failure to agree on the terms and conditions of 
                a contract to be awarded noncompetitively under the 
                program.
          (3) Suspension of action.--On receipt of a notice of intent 
        to appeal under paragraph (1)(A), the agency head shall suspend 
        further action regarding the procurement until a written 
        decision on the Administrator's request for reconsideration is 
        issued by the agency head, unless the contracting officer makes 
        a written determination that urgent and compelling 
        circumstances that significantly affect interests of the United 
        States will not permit waiting for a reconsideration of the 
        adverse decision.
          (4) Denial of request for reconsideration.--If the 
        Administrator's request for reconsideration is denied, the 
        procuring agency head shall specify the reasons why the small 
        business concern selected by the Administrator to perform the 
        procurement requirement was determined to be incapable of 
        performing the procurement requirement, and the findings 
        supporting the determination, which shall be made a part of the 
        contract file for the requirement.
Sec. 23303. Fair market price
  (a) In General.--A contract may not be awarded under the program if 
the award of the contract would result in a cost to the procuring 
agency that exceeds a fair market price.
  (b) Determination.--
          (1) In general.--The fair market price under subsection (a) 
        shall be determined by the procuring agency in accordance with 
        this subsection.
          (2) New procurement.--
                  (A) In general.--The estimate of a current fair 
                market price for a new procurement requirement, or a 
                requirement that does not have a satisfactory 
                procurement history, shall be derived from a price or 
                cost analysis.
                  (B) Factors.--A price or cost analysis--
                          (i) may take into account prevailing market 
                        conditions, commercial prices for similar 
                        products or services, or data obtained from any 
                        other Federal agency; and
                          (ii) shall consider such cost or pricing data 
                        as may be timely submitted by the 
                        Administrator.
          (3) Procurements with satisfactory procurement history.--
                  (A) In general.--The estimate of a current fair 
                market price for a procurement requirement that has a 
                satisfactory procurement history shall be based on 
                recent award prices adjusted to ensure comparability.
                  (B) Adjustment.--An adjustment under subparagraph (A) 
                shall take into account differences in quantities, 
                performance times, plans, specifications, 
                transportation costs, packaging and packing costs, 
                labor and materials costs, overhead costs, and any 
                other additional costs that are considered appropriate.
  (c) Estimation Method.--
          (1) In general.--On the request of the Administrator, the 
        procuring agency shall promptly submit to the Administrator a 
        written statement detailing the method used by the procuring 
        agency to estimate the current fair market price for the 
        contract, identifying the information, studies, analyses, and 
        other data used by the procuring agency.
          (2) Nondisclosure.--The procuring agency's estimate of the 
        current fair market price and any supporting data furnished to 
        the Administrator shall not be disclosed to any potential 
        offeror other than the Administrator.
  (d) Protest.--A small business concern selected by the Administrator 
to perform or negotiate a contract to be let under the program may 
request the Administrator to protest the procuring agency's estimate of 
the fair market price for the contract.
Sec. 23304. Award after completion of program participation period
  The Administrator shall make an award to a small business concern 
owned and controlled by socially and economically disadvantaged 
individuals that has completed its program participation period if--
          (1) the contract will be awarded as a result of an offer 
        (including price) submitted in response to a published 
        solicitation relating to a competition conducted under section 
        23305 of this title; and
          (2) the prospective contract awardee was a program 
        participant eligible for award of the contract on the date 
        specified for receipt of offers contained in the contract 
        solicitation.
Sec. 23305. Award through competition
  (a) In General.--Except as provided in subsections (b) and (c), a 
contract opportunity offered for award under the program shall be 
awarded on the basis of competition restricted to eligible program 
participants if--
          (1) there is a reasonable expectation that--
                  (A) at least 2 eligible program participants will 
                submit offers; and
                  (B) an award can be made at a fair market price; and
          (2) the anticipated award price of the contract (including 
        options) will exceed--
                  (A) $5,000,000, in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $3,000,000, in the case of any other contract 
                opportunity.
  (b) Restricted Competition for Smaller Contracts.--
          (1) In general.--The Associate Administrator may approve a 
        request from a Federal agency to award a contract opportunity 
        under the program on the basis of a competition restricted to 
        eligible program participants even if the anticipated award 
        price is not expected to exceed the dollar amounts specified in 
        subsection (a)(2).
          (2) Approvals.--Approvals under paragraph (1) shall be 
        granted only on a limited basis.
          (3) Nondelegability.--The authority of the Associate 
        Administrator under paragraph (1) may not be delegated.
  (c) Program Participants Owned and Controlled by an Economically 
Disadvantaged Indian Tribe.--Subsection (a) does not preclude the award 
of a sole source contract under section 23307 of this title, without 
regard to the anticipated award price of the contract, to a program 
participant that is owned and controlled by an economically 
disadvantaged Indian tribe.
  (d) Program Participants Owned and Controlled by Native Hawaiian 
Organizations.--For purposes of contracting with agencies of the 
Department of Defense, subsection (a) does not preclude the award of a 
sole source contract under section 23307 of this title, without regard 
to the anticipated award price of the contract, to a program 
participant that is owned and controlled by a Native Hawaiian 
organization.
Sec. 23306. Participation by program participants in negotiation of 
                    contracts to be awarded noncompetitively
  A program participant selected by the Administrator to perform a 
contract to be let noncompetitively under the program shall, when 
practicable, participate in any negotiation of the terms and conditions 
of the contract.
Sec. 23307. Sole source award
  (a) In General.--The Administrator shall award a sole source contract 
under the program to a program participant recommended by the Federal 
agency offering the contract opportunity if--
          (1) the program participant is determined to be a responsible 
        contractor with respect to performance of the contract;
          (2) the award of the contract would be consistent with the 
        program participant's business plan; and
          (3) the award of the contract would not result in the program 
        participant's exceeding the requirements established by section 
        23328 of this title.
  (b) Equitable Geographic Distribution.--To the maximum extent 
practicable, the Administrator shall promote the equitable geographic 
distribution of sole source contracts awarded under this section.
Sec. 23308. Annual certification regarding ownership and control
  A program participant shall annually certify that the program 
participant meets the requirements of section 23101(15) of this title 
regarding ownership and control.
Sec. 23309. Annual submission regarding economic disadvantage
  A program participant shall annually submit to the Administrator--
          (1) a personal financial statement for each disadvantaged 
        owner;
          (2) a record of all payments made by the program participant 
        to each of its disadvantaged owners or to any person or entity 
        affiliated with its disadvantaged owners; and
          (3) such other information as the Administrator considers 
        necessary to make the determinations required by paragraphs (8) 
        and (16) of section 23101 of this title and section 23310 of 
        this title.
Sec. 23310. Review of economic disadvantage and withdrawal of assets
  (a) Economic Disadvantage.--If, on the basis of information provided 
by a program participant under section 23309 of this title or 
information otherwise obtained by the Administrator, the Administrator 
has reason to believe that the standards to establish economic 
disadvantage under section 23101(15) of this title are not met, the 
Administrator shall conduct a review to determine whether the program 
participant and its disadvantaged owners continue to be impaired in 
their ability to compete in the free enterprise system due to 
diminished capital and credit opportunities as compared with others in 
the same business area who are not socially disadvantaged.
  (b) Withdrawal of Assets.--
          (1) In general.--If, on the basis of information provided by 
        a program participant under section 23309 of this title or 
        information otherwise obtained by the Administrator, the 
        Administrator has reason to believe that the amount of funds or 
        other assets withdrawn from a program participant for the 
        personal benefit of its disadvantaged owners or any person or 
        entity affiliated with its disadvantaged owners may have been 
        unduly excessive, the Administrator shall conduct a review to 
        determine whether the withdrawal of funds or other assets was 
        detrimental to the achievement of the targets, objectives, and 
        goals contained in the program participant's business plan.
          (2) Termination or requirement to reinvest assets.--If the 
        Administrator determines in a review under paragraph (1) that 
        funds or other assets have been withdrawn to the detriment of 
        the program participant's business, the Administrator shall--
                  (A) initiate a proceeding to terminate the program 
                participant under section 23321 of this title; or
                  (B) require an appropriate reinvestment of funds or 
                other assets and such other steps as the Administrator 
                considers necessary to ensure the protection of the 
                program participant.
Sec. 23311. Hearing on the record
  (a) Opportunity for Hearing.--Before taking an action described in 
subsection (b) with respect to a small business concern, the 
Administrator shall provide the small business concern an opportunity 
for a hearing on the record in accordance with chapter 5 of title 5.
  (b) Actions.--The actions referred to in subsection (a) are--
          (1) denial of admission to the program based on a 
        determination that--
                  (A) a small business concern is not a small business 
                concern owned and controlled by socially and 
                economically disadvantaged individuals under section 
                23101(15) of this title;
                  (B) one or more of the owners of a small business 
                concern is not a socially disadvantaged individual 
                under section 23101(17) of this title; or
                  (C) one or more of the owners of a small business 
                concern is not a socially and economically 
                disadvantaged individual under section 23101(16);
          (2) graduation under section 23320 of this title;
          (3) termination under section 23321 of this title; and
          (4) denial of a request to issue a waiver under section 
        23316(b) of this title.
  (c) Declination of Jurisdiction.--The administrative law judge 
selected to preside over a proceeding under this section shall decline 
to accept jurisdiction over any matter that--
          (1) does not, on its face, allege facts that, if proven to be 
        true, would warrant reversal or modification of the 
        Administrator's position;
          (2) is untimely filed;
          (3) is not filed in accordance with the rules of procedure 
        governing the proceeding; or
          (4) has been decided by or is the subject of an adjudication 
        before a court of competent jurisdiction over such matters.
  (d) Timing.--A proceeding under this section shall be completed and a 
decision rendered, insofar as practicable, not later than 90 days after 
a petition for a hearing is filed with the Office of Hearings and 
Appeals.
  (e) Final Decision.--A decision rendered under this section shall be 
the final decision of the Administrator and shall be binding on the 
Administrator and persons in the employ of the Administrator.
Sec. 23312. Program participant capability
  (a) Eligibility for Assistance.--
          (1) In general.--A small business concern shall not be 
        eligible for assistance under the program unless the 
        Administrator determines that with contract, financial, 
        technical, and management support, the small business concern--
                  (A) will be able to perform contracts that may be 
                awarded to the small business concern under 23304 of 
                this title; and
                  (B) has reasonable prospects for success in competing 
                in the private sector.
          (2) Period of operation.--
                  (A) In general.--The Administrator may prescribe a 
                minimum period of time during which a prospective 
                program participant must be in operation to meet the 
                eligibility requirements of paragraph (1) only if the 
                Administrator provides a waiver of the minimum period 
                as provided in subparagraph (B).
                  (B) Waiver.--The Administrator shall provide that any 
                requirement that the Administrator establishes 
                regarding the period of time during which a prospective 
                program participant must have been in operation may be 
                waived, and that a prospective program participant that 
                otherwise meets the requirements of paragraph (1) shall 
                be considered to have demonstrated reasonable prospects 
                for success, if--
                          (i) the individual or individuals upon whom 
                        eligibility is to be based have substantial and 
                        demonstrated business management experience;
                          (ii) the prospective program participant has 
                        demonstrated technical expertise to carry out 
                        its business plan with a substantial likelihood 
                        for success;
                          (iii) the prospective program participant has 
                        adequate capital to carry out its business 
                        plan;
                          (iv) the prospective program participant has 
                        a record of successful performance on contracts 
                        from governmental and nongovernmental sources 
                        in the primary industry category in which the 
                        prospective program participant is seeking 
                        certification; and
                          (v) the prospective program participant has, 
                        or can demonstrate its ability to timely 
                        obtain, the personnel, facilities, equipment, 
                        and any other requirements needed to perform 
                        such contracts.
  (b) Capability.--
          (1) Capability statements.--
                  (A) Annual submission.--A program participant shall 
                annually submit to the Administrator a capability 
                statement.
                  (B) Contents.--A capability statement shall--
                          (i) briefly describe the program 
                        participant's various contract performance 
                        capabilities; and
                          (ii) include the name and telephone number of 
                        the business opportunity specialist assigned 
                        the program participant.
                  (C) Statement categories.--The Administrator shall 
                categorize capability statements as--
                          (i) statements indicating capability 
                        primarily dependent on local contract support; 
                        and
                          (ii) statements indicating capability 
                        primarily requiring a national marketing 
                        effort.
                  (D) Dissemination of capability statements.--
                          (i) Local.--The Administrator shall 
                        disseminate capability statements described in 
                        subparagraph (C)(i) to appropriate contracting 
                        activities in the marketing area of each 
                        program participant, respectively.
                          (ii) National.--The Administrator shall 
                        disseminate capability statements described in 
                        subparagraph (C)(ii) to the directors of the 
                        offices of small and disadvantaged business 
                        utilization for the appropriate Federal 
                        agencies, who shall further distribute the 
                        capability statements to contracting activities 
                        with Federal agencies that may purchase the 
                        types of items or services described in the 
                        capability statements.
          (2) Contact by contracting activities.--A contracting 
        activity that receives a capability statement of a program 
        participant under paragraph (1)(D) shall, within 60 days after 
        receipt of the capability statement, contact the business 
        opportunity specialist identified in the capability statement 
        to indicate the number, type, and approximate dollar value of 
        contract opportunities that the contracting activity may award 
        over the succeeding 12-month period and that may be appropriate 
        to consider for award to program participants for which the 
        contracting activity has received capability statements.
          (3) Forecast of contract opportunities.--
                  (A) In general.--An executive agency that reports to 
                the Federal Procurement Data System contract actions 
                with an aggregate value in excess of $50,000,000 in any 
                fiscal year shall--
                          (i) prepare a forecast of expected contract 
                        opportunities or classes of contract 
                        opportunities for the next and succeeding 
                        fiscal years that program participants are 
                        capable of performing; and
                          (ii) periodically revise the forecast during 
                        the following year.
                  (B) Contents.--To the extent that the information is 
                available, a forecast under subparagraph (A) shall 
                specify--
                          (i) the approximate number of individual 
                        contract opportunities (and the number of 
                        opportunities within a class);
                          (ii) the approximate dollar value, or range 
                        of dollar values, for each contract opportunity 
                        or class of contract opportunities;
                          (iii) the anticipated time (by fiscal year 
                        quarter) for the issuance of a procurement 
                        request; and
                          (iv) the activity responsible for the award 
                        and administration of the contract.
                  (C) Submission of forecasts.--Not later than 10 days 
                after completion of a forecast under subparagraph (A), 
                the head of the executive agency that prepared the 
                forecast shall submit the forecast to--
                          (i) the director of the office of small and 
                        disadvantaged business utilization established 
                        under section 25109 of this title for the 
                        executive agency; and
                          (ii) the Administrator.
                  (D) Scope of information reported.--A forecast 
                submitted under subparagraph (C) may be limited to 
                classes of items and services for which there are 
                substantial annual purchases.
                  (E) Availability of forecasts.--A forecast submitted 
                under subparagraph (C) shall be available to small 
                business concerns.
Sec. 23313. Percentages of contract performance by program participants
  (a) In General.--A program participant may not be awarded a contract 
under the program unless the program participant agrees that--
          (1) in the case of a contract for services (except 
        construction), at least 50 percent of the cost of contract 
        performance incurred for personnel shall be expended for 
        employees of the program participant; and
          (2) in the case of a contract for procurement of supplies 
        (other than procurement from a regular dealer in such 
        supplies), the program participant will perform work for at 
        least 50 percent of the cost of manufacturing the supplies (not 
        including the cost of materials).
  (b) Change in Percentage.--
          (1) In general.--The Administrator may change the percentage 
        under paragraph (1) or (2) of subsection (a) if the 
        Administrator determines that a change is necessary to reflect 
        conventional industry practices among business concerns that 
        are below the numerical size standard for businesses in that 
        industry category.
          (2) Limitation.--A percentage established under paragraph (1) 
        may not differ from a percentage established under section 
        25113 of this title.
  (c) Other Categories of Contract.--
          (1) In general.--The Administrator shall by regulation 
        establish requirements similar to those specified in subsection 
        (a) to be applicable to--
                  (A) contracts for general and specialty construction; 
                and
                  (B) contracts for any other industry category not 
                otherwise subject to subsection (a).
          (2) Applicable percentage.--The percentage applicable to a 
        requirement under paragraph (1) shall be determined in 
        accordance with subsection (b), except that such a percentage 
        may not differ from a percentage established under section 
        25113 of this title for the same industry category.
Sec. 23314. Wholesalers and retailers
  (a) In General.--An otherwise responsible program participant that is 
described in subsection (b) shall not be denied the opportunity to 
submit and have considered its offer for a procurement contract for the 
supply of a product to be let under the program or section 25101 of 
this title solely because the program participant is other than the 
manufacturer or processor of the product to be supplied under the 
contract.
  (b) Requirements.--A program participant referred to in subsection 
(a) is a program participant that--
          (1) is primarily engaged in wholesale or retail trade;
          (2) is a small business concern under the numerical size 
        standard for the North American Industry Classification System 
        code assigned to the contract solicitation on which the offer 
        is being made;
          (3) is a regular dealer (as defined under section 11 of the 
        Act of June 30, 1936 (41 U.S.C. 43b) (commonly known as the 
        Walsh-Healey Act)) in the product to be offered the Government; 
        and
          (4) represents that the program participant will supply the 
        product of a domestic small business manufacturer or processor, 
        unless a waiver of this paragraph is granted--
                  (A) by the Administrator, after reviewing a 
                determination by the contracting officer that no small 
                business manufacturer or processor can reasonably be 
                expected to offer a product meeting the specifications 
                (including period for performance) required of an 
                offeror by the solicitation; or
                  (B) by the Administrator for a product (or class of 
                products), after determining that no small business 
                manufacturer or processor is available to participate 
                in the Federal procurement market.
Sec. 23315. Reporting by program participants to business opportunity 
                    specialists
  (a) In General.--A program participant shall semiannually submit to 
its assigned business opportunity specialist a report identifying each 
agent, representative, attorney, accountant, consultant, or other 
person (other than an employee of the program participant) that 
received compensation during the reporting period to assist the program 
participant in obtaining a Federal contract.
  (b) Contents.--A report under subsection (a) shall--
          (1) disclose the amount of compensation received by each 
        person identified in the report during the reporting period; 
        and
          (2) describe the activities performed for the compensation.
  (c) Review and Transmittal.--The business opportunity specialist 
shall promptly--
          (1) review the report; and
          (2) transmit the report to the Associate Administrator.
  (d) Suspicion of Improper Activity.--The Associate Administrator 
shall transmit to the Inspector General of the Administration any 
report that raises a suspicion of improper activity.
  (e) Failure To Submit Report.--A failure of a program participant to 
submit a report under subsection (a) shall constitute good cause for 
initiation of a termination proceeding under section 23321(b) of this 
title.
Sec. 23316. Transfer of ownership or control
  (a) In General.--
          (1) Performance by contract awardee.--A contract (including 
        options) awarded under the program shall be performed by the 
        program participant that is initially awarded the contract.
          (2) Relinquishment of ownership or control.--
                  (A) In general.--Notwithstanding paragraph (1), if 
                the owner or owners on whom eligibility for award of 
                the contract was based relinquish ownership or control 
                of the program participant, or enter into any agreement 
                to relinquish such ownership or control, the contract 
                or option shall be terminated for the convenience of 
                the Government.
                  (B) No damages.--No repurchase costs or other damages 
                may be assessed against a program participant due 
                solely to the operation of subparagraph (A).
  (b) Waiver.--
          (1) In general.--The Administrator may waive subsection (a) 
        only if--
                  (A)(i) it is necessary for the owner of the program 
                participant to surrender partial control of the program 
                participant on a temporary basis to obtain equity 
                financing; and
                  (ii) the Administrator is requested to waive 
                subsection (a) prior to the actual transfer of 
                ownership or control;
                  (B)(i) the procuring agency head certifies that 
                termination of the contract would severely impair 
                attainment of the procuring agency's program objectives 
                or missions; and
                  (ii) the Administrator is requested to waive 
                subsection (a) prior to the actual transfer of 
                ownership or control;
                  (C)(i) ownership and control of the program 
                participant will pass to another program participant; 
                and
                  (ii) the acquiring program participant would 
                otherwise be eligible to receive the award directly 
                under the program;
                  (D)(i) due to incapacity or death, none of one or 
                more individuals on whom eligibility was based is able 
                to continue to exercise control of the program 
                participant; and
                  (ii) the Administrator is requested to waive 
                subsection (a) as soon as possible after the incapacity 
                or death occurs; or
                  (E)(i) to raise equity capital, it is necessary for 
                the disadvantaged owner of the program participant to 
                transfer ownership of a majority of the voting stock of 
                the program participant;
                  (ii) the program participant has exited the program;
                  (iii) the disadvantaged owner will maintain ownership 
                of the largest single outstanding block of voting stock 
                (including stock held by affiliated persons); and
                  (iv) the disadvantaged owner will maintain control of 
                daily business operations of the program participant.
          (2) Nondelegability.--The authority of the Administrator 
        under paragraph (1) may not be delegated.
  (c) Notification of Agreement To Transfer.--The owner of a program 
participant that is performing a contract awarded under the program 
shall notify the Administrator immediately on entering into an oral or 
written agreement to transfer all or part of the stock or other 
ownership interest in the program participant to any other person.
  (d) Treatment of Certain Potential Ownership Interests.--
Notwithstanding any other provision of law, for the purposes of 
determining ownership and control of a program participant, any 
potential ownership interest held by an investment company licensed 
under subtitle III shall be treated in the same manner as an interest 
held by the individuals on whom eligibility is based.
  (e) Continued Eligibility.--A program participant shall remain 
eligible for contracts under the program if there is a transfer of 
ownership and control to individuals whom the Administrator determines 
to be socially and economically disadvantaged. In the event of such a 
transfer, the transferee program participant, if not terminated or 
graduated, shall be eligible for a period of continued participation in 
the program for the remainder of the program participation period of 
the transferor.
Sec. 23317. Assistance for program participants
  (a) In General.--The Administrator shall--
          (1) assist program participants in developing and maintaining 
        comprehensive business plans that specify the program 
        participant's specific business targets, objectives, and goals 
        developed and maintained in conformity with section 23318 of 
        this title;
          (2) provide for such other nonfinancial services as the 
        Administrator considers necessary for the establishment, 
        preservation, and growth of program participants;
          (3) assist program participants in obtaining equity and debt 
        financing;
          (4) establish regular performance monitoring and reporting 
        systems for program participants to ensure compliance with 
        their business plans;
          (5) analyze and report the causes of success and failure of 
        program participants; and
          (6) provide assistance necessary to help program participants 
        procure surety bonds.
  (b) Nonfinancial Services.--Nonfinancial services provided under 
subsection (a)(2) may include--
          (1) loan packaging;
          (2) financial counseling;
          (3) accounting and bookkeeping assistance;
          (4) marketing assistance; and
          (5) management assistance.
  (c) Surety Bonds.--Assistance provided under subsection (a)(6) may 
include--
          (1) assistance in the preparation of application forms 
        required to receive a surety bond;
          (2) special management and technical assistance designed to 
        meet the specific needs of program participants that have 
        received or are applying for a surety bond; and
          (3) preparation of all forms necessary to receive a surety 
        bond guarantee under chapter 321.
  (d) Outreach Program.--
          (1) In general.--The Administrator shall develop and 
        implement an outreach program to inform and recruit small 
        business concerns to apply for eligibility for assistance under 
        the program.
          (2) Activities.--The outreach program shall make a sustained 
        and substantial effort to solicit applications for 
        certification from--
                  (A) small business concerns located in areas of 
                concentrated unemployment or underemployment or within 
                labor surplus areas and within States having relatively 
                few program participants; and
                  (B) small disadvantaged business concerns in industry 
                categories that have not substantially participated in 
                the award of contracts under the program.
Sec. 23318. Business plans
  (a) Submission.--Promptly after certification under section 23325 of 
this title, a program participant shall submit a business plan for 
review by the business opportunity specialist assigned to assist the 
program participant.
  (b) Form; Objective.--A business plan--
          (1) may be a revision of a preliminary business plan 
        submitted by the program participant or required by the 
        Administrator as a part of the application for certification 
        under the program; and
          (2) shall be designed to result in the elimination by the 
        program participant of the conditions or circumstances on which 
        the Administrator determined eligibility under paragraph (8) or 
        (16) of section 23101 of this title.
  (c) Approval of Business Plan as Condition on Contract Award.--Prior 
approval of a business plan by the business opportunity specialist, and 
of subsequent modifications submitted under subsection (e), shall be a 
condition on the eligibility of a program participant for award of a 
contract under the program.
  (d) Contents.--A business plan shall include--
          (1) an analysis of market potential, competitive environment, 
        and other business analyses estimating the program 
        participant's prospects for profitable operations during the 
        term of program participation and after graduation;
          (2) an analysis of the program participant's strengths and 
        weaknesses, with particular attention to correcting any 
        financial, managerial, technical, or personnel conditions that 
        are likely to impede the program participant in receiving 
        contracts other than contracts awarded under the program;
          (3) specific targets, objectives, and goals for the business 
        development of the program participant during the next and 
        succeeding years using the results of the analyses conducted 
        under paragraphs (1) and (2);
          (4) a transition management plan outlining specific steps to 
        ensure profitable business operations after graduation (to be 
        incorporated into the program participant's plan during the 
        first year of the transitional stage of program participation); 
        and
          (5) estimates of contract awards under the program and from 
        other sources that the program participant will require to meet 
        the specific targets, objectives, and goals for the years 
        covered by the business plan, which estimates shall be 
        consistent with section 23328 of this title and other 
        applicable provisions of this chapter.
  (e) Annual Review.--
          (1) In general.--A program participant shall annually review 
        its currently approved business plan with its business 
        opportunity specialist and modify the business plan as 
        appropriate.
          (2) Approval.--
                  (A) Submission.--A modified business plan shall be 
                submitted to the Administrator for approval.
                  (B) Continued validity of current plan.--The 
                currently approved business plan shall be valid until 
                such time as a modified business plan is approved by 
                the business opportunity specialist.
          (3) Transitional stage.--Annual reviews pertaining to years 
        in the transitional stage of program participation shall 
        require, as appropriate, a written verification that the 
        program participant has complied with the requirements of 
        section 23328 of this title relating to attaining business 
        activity from sources other than contracts awarded under the 
        program.
  (f) Annual Needs Forecast.--
          (1) In general.--During the review of its plan conducted 
        under subsection (e), a program participant shall annually 
        forecast its needs for contract awards under the program for 
        the next program year and the succeeding program year.
          (2) Inclusion in business plan.--An annual needs forecast 
        shall be included in a program participant's business plan.
          (3) Contents.--An annual needs forecast shall include--
                  (A) the aggregate dollar value of contract support to 
                be sought on a noncompetitive basis under the program, 
                reflecting compliance with the requirements of section 
                23328 of this title relating to attaining business 
                activity from sources other than contracts awarded 
                under the program;
                  (B) the types of contract opportunities being sought, 
                identified by North American Industry Classification 
                System code or otherwise;
                  (C) an estimate of the dollar value of contract 
                support to be sought on a competitive basis; and
                  (D) such other information the business opportunity 
                specialist may request to provide effective business 
                development assistance to the program participant.
  (g) Logical Business Progression.--Limitations established by the 
Administrator restricting the award of contracts under the program to a 
limited number of North American Industry Classification System codes 
in an approved business plan shall not be applied in a manner that 
inhibits the logical business progression by a program participant into 
areas of industrial endeavor in which the program participant has 
potential for success.
Sec. 23319. Denial of further assistance
  (a) In General.--A program participant shall be denied any assistance 
under the program if the program participant--
          (1) voluntarily elects not to continue participation;
          (2) completes its program participation period;
          (3) is graduated; or
          (4) is terminated.
  (b) No Subsequent Recertification.--If participation in the program 
by a program participant is concluded for any of the reasons described 
in subsection (a), the former program participant shall not 
subsequently be recertified for participation in the program.
Sec. 23320. Graduation
  A program participant shall be graduated from the program--
          (1) when a program participant successfully completes the 
        program by substantially achieving the targets, objectives, and 
        goals contained in the program participant's business plan, 
        thereby demonstrating the ability of the program participant to 
        compete in the marketplace without assistance under the 
        program; or
          (2) if, in a review of economic disadvantage under section 
        23310(a) of this title, the Administrator determines that the 
        program participant and its disadvantaged owners are no longer 
        economically disadvantaged.
Sec. 23321. Termination
  (a) Basis for Termination.--
          (1) In general.--Termination from the program shall be based 
        on good cause.
          (2) Good cause.--For purposes of paragraph (1), good cause 
        includes--
                  (A) the failure of a program participant to maintain 
                eligibility for program participation;
                  (B) the failure of a program participant to engage in 
                business practices that will promote its 
                competitiveness within a reasonable period of time as 
                evidenced by, among other indicators, a pattern of 
                unjustified delinquent performance or terminations for 
                default with respect to contracts awarded under the 
                program;
                  (C) a demonstrated pattern of failing to make 
                required submissions or responses to the Administrator 
                in a timely manner;
                  (D) the willful violation of any regulation of the 
                Administrator pertaining to a material issue;
                  (E) the debarment of a program participant or its 
                disadvantaged owners by any agency under subpart 9.4 of 
                title 48, Code of Federal Regulations (or any successor 
                regulation); and
                  (F) the conviction of the disadvantaged owner or an 
                officer of a program participant for an offense 
                indicating a lack of business integrity (including a 
                conviction for embezzlement, theft, forgery, bribery, 
                falsification, or violation of chapter 105).
          (3) Termination for conviction.--For purposes of paragraph 
        (2)(F), a termination action shall not be taken with respect to 
        a disadvantaged owner of a program participant solely because 
        of the conviction of an officer of the program participant (who 
        is not a disadvantaged owner) unless the disadvantaged owner 
        conspired with, abetted, or otherwise knowingly acquiesced in 
        the activity or omission that was the basis of the officer's 
        conviction.
  (b) Procedure.--
          (1) Initiation of proceeding.--The Director may initiate a 
        termination proceeding by recommending a termination proceeding 
        to the Associate Administrator.
          (2) Notice of intent to terminate.--If the Associate 
        Administrator determines that termination is appropriate, the 
        Associate Administrator shall, not later than 15 days after 
        making the determination, provide the program participant 
        written notice of intent to terminate, specifying the reasons 
        for the termination.
Sec. 23322. Evaluation of eligibility
  (a) In General.--The Administrator shall conduct an evaluation of a 
program participant's eligibility for continued participation in the 
program whenever the Administrator receives specific and credible 
information alleging that the program participant no longer meets the 
requirements for program eligibility.
  (b) Termination Proceeding.--On making a finding that a program 
participant is no longer eligible, the Administrator shall initiate a 
termination proceeding under section 23321 of this title.
  (c) Suspension.--A program participant's eligibility for award of a 
contract under the program may be suspended under subpart 9.4 of title 
48, Code of Federal Regulations (or any successor regulation).
Sec. 23323. Limitation of eligibility to one small business concern
  (a) Determination of Social and Economic Disadvantage.--Except as 
provided in subsection (c), an individual who was determined to be 
socially and economically disadvantaged before August 15, 1989, shall 
not be permitted to assert such disadvantage with respect to any other 
concern making application for certification as a small business 
concern owned and controlled by socially and economically disadvantaged 
individuals.
  (b) Eligibility as a Socially and Economically Disadvantaged Small 
Business Concern.--Except as provided in subsection (c), an individual 
on whom eligibility as a small business concern owned and controlled by 
socially and economically disadvantaged individuals is based under 
section 23101(15) of this title shall be permitted to assert such 
eligibility for only one small business concern.
  (c) Exception.--An economically disadvantaged Indian tribe may own 
more than one small business concern eligible for assistance under the 
program if--
          (1) the Indian tribe does not own another concern in the same 
        industry that has been determined to be eligible to receive 
        contracts under the program; and
          (2) the individuals responsible for the management and daily 
        operations of the concern do not manage more than 2 program 
        participants.
Sec. 23324. Limitation on denial of admission into program based on 
                    unavailability of specific contract opportunities
  An applicant shall not be denied admission into the program based 
solely on a determination that specific contract opportunities are 
unavailable to assist in the development of the applicant unless--
          (1) the Government has not previously procured and is 
        unlikely to procure the types of products or services offered 
        by the applicant; or
          (2) the purchases of such products or services by the 
        Government will not be in quantities sufficient to support the 
        developmental needs of the applicant and other program 
        participants providing the same or similar products or 
        services.
Sec. 23325. Certification decision
  Not later than 90 days after receipt of a completed application for 
program certification, the Associate Administrator shall--
          (1) certify a small business concern as a program 
        participant; or
          (2) deny the application.
Sec. 23326. Review of new entrants into the program
  (a) Review.--Thirty days before the conclusion of each fiscal year, 
the Director shall review all small business concerns that have been 
admitted into the program during the preceding 12-month period.
  (b) Determination and Estimate.--In a review under subsection (a), 
the Director shall--
          (1) determine the number of entrants and their geographic 
        distribution and industrial classification; and
          (2) estimate--
                  (A) the expected growth of the program during the 
                next fiscal year; and
                  (B) the number of additional business opportunity 
                specialists, if any, that will be needed to meet the 
                anticipated demand for the program.
  (c) Report.--Not later than September 30 of each year, the Director 
shall report to the Associate Administrator the determination and 
estimates made under subsection (b).
  (d) Directives.--
          (1) In general.--Based on the report under subsection (c) and 
        such additional data as are relevant, the Associate 
        Administrator shall, not later than October 31 of each fiscal 
        year, issue policy and program directives applicable to the 
        fiscal year that--
                  (A) establish priorities for the solicitation of 
                program applications from underrepresented regions and 
                industry categories;
                  (B) assign staffing levels and allocate other program 
                resources as necessary to meet program needs; and
                  (C) establish priorities in the processing and 
                admission of new program participants as necessary to 
                achieve an equitable geographic distribution of small 
                business concerns and a distribution of concerns across 
                all industry categories in proportions needed to 
                increase significantly contract awards to small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals.
          (2) Considerations.--In considering an increase described in 
        paragraph (1)(C), the Associate Administrator shall give due 
        consideration to industrial categories in which Federal 
        purchases have been substantial but in which the participation 
        rate of small business concerns owned and controlled by 
        socially and economically disadvantaged individuals has been 
        limited.
Sec. 23327. Program stages
  (a) In General.--The Administrator shall segment a program 
participant's participation in the program into a developmental stage 
and a transitional stage.
  (b) Developmental Stage.--The developmental stage of program 
participation shall be designed to assist a program participant in its 
effort to overcome its economic disadvantage by providing such 
assistance as is necessary and appropriate to access markets and 
strengthen its financial and managerial skills.
  (c) Transitional Stage.--The transitional stage of program 
participation shall be designed to overcome, insofar as practicable, 
the remaining elements of economic disadvantage and to prepare a 
program participant for graduation from the program.
  (d) Available Assistance.--
          (1) In general.--A program participant, if otherwise 
        eligible, shall be qualified to receive assistance as provided 
        in this subsection.
          (2) Contract support.--A program participant in the 
        developmental stage or transitional stage shall be qualified to 
        receive contract support under the program.
          (3) Financial assistance.--A program participant in the 
        developmental stage or transitional stage shall be qualified to 
        receive financial assistance under section 20511 of this title.
          (4) Employee skills training or upgrading.--
                  (A) Definition of training provider.--In this 
                paragraph, the term ``training provider'' means an 
                institution of higher education, a community or 
                vocational college, or an institution eligible to 
                provide skills training or upgrading under title I of 
                the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.).
                  (B) In general.--A program participant in the 
                developmental stage shall be qualified to receive 
                financial assistance under which the Administrator may, 
                without regard to section 10331(l) of this title, 
                purchase in whole or in part, on behalf of the program 
                participant, skills training or upgrading for employees 
                or potential employees of the program participant.
                  (C) Form of assistance.--Financial assistance under 
                subparagraph (B) may be made--
                          (i) by direct payment to the training 
                        provider; or
                          (ii) by reimbursing the program participant 
                        or the program participant's employee, if the 
                        Administrator considers reimbursement to be 
                        reasonable and appropriate.
                  (D) Limitation.--Financial assistance under 
                subparagraph (B) shall not be granted to a program 
                participant unless the program participant first 
                documents that the program participant has explored the 
                use of existing cost-free or cost-subsidized training 
                programs offered by public and private sector agencies 
                working with programs of employment and training and 
                economic development.
                  (E) Number of employees.--Not more than 5 employees 
                or potential employees of the program participant are 
                recipients of skills training or upgrading under 
                subparagraph (B) at any one time.
                  (F) Amount.--Not more than $2,500 shall be made 
                available for any one employee or potential employee 
                for skills training or upgrading under subparagraph 
                (B).
                  (G) Length of training or upgrading.--The length of 
                training or upgrading financed under subparagraph (B) 
                shall be not less than one nor more than 6 months.
                  (H) Length of employment.--
                          (i) Assurances.--Financial assistance under 
                        subparagraph (B) shall not be granted to a 
                        program participant unless--
                                  (I) the program participant has given 
                                adequate assurance that it will employ 
                                the trainee or upgraded employee for a 
                                period of at least 6 months after the 
                                training or upgrading financed under 
                                subparagraph (B) has been completed; 
                                and
                                  (II) each trainee or upgraded 
                                employee has given a similar assurance 
                                to remain within the employ of the 
                                program participant for that period.
                          (ii) Breach.--If a program participant, 
                        trainee, or upgraded employee fails to fulfill 
                        the assurance under clause (i)--
                                  (I) the Administrator shall be 
                                entitled to, and shall make diligent 
                                efforts to obtain from the violating 
                                program participant, trainee, or 
                                upgraded employee, the repayment of all 
                                funds expended on behalf of the program 
                                participant, trainee, or upgraded 
                                employee;
                                  (II) such repayment shall be made to 
                                the Administrator with such interest 
                                and costs of collection as are 
                                reasonable; and
                                  (III) the program participant, 
                                trainee, or upgraded employee shall be 
                                barred from receiving any further 
                                assistance under subparagraph (B).
                  (I) Location.--Training or upgrading financed under 
                subparagraph (B) may take place at a facility of the 
                program participant or of the training provider.
                  (J) Records.--A program participant that receives 
                assistance under subparagraph (B) shall maintain such 
                records as the Administrator considers appropriate to 
                ensure that this subsection and any other applicable 
                law have not been violated.
                  (K) Regulations.--The Administrator shall, in 
                consultation with the Secretary of Labor, promulgate 
                regulations to implement this paragraph that establish 
                acceptable training and upgrading performance standards 
                and provide for such monitoring or audit requirements 
                as are necessary to ensure the integrity of the 
                training effort.
          (5) Technology and surplus property transfer.--
                  (A) In general.--A program participant in the 
                developmental stage or transitional stage shall be 
                qualified to receive the transfer of technology or 
                surplus property owned by the United States.
                  (B) Effectuation.--Activities designed to effect 
                transfers under subparagraph (A)--
                          (i) shall be developed in cooperation with 
                        the heads of Federal agencies; and
                          (ii) shall include the transfer by grant, 
                        license, or sale of technology or property to 
                        program participants.
                  (C) Priority.--Property under subparagraph (A) may be 
                transferred to program participants on a priority 
                basis.
                  (D) Use.--Technology or property transferred under 
                subparagraph (A)--
                          (i) shall be used by a program participant 
                        during the normal conduct of its business 
                        operation; and
                          (ii) shall not be sold or transferred to any 
                        other person (other than the Government) until 
                        one year after the program participant's term 
                        of participation.
          (6) Training in the development of business principles and 
        strategies.--A program participant in the developmental stage 
        or transitional stage shall be qualified to receive training 
        assistance under which the Administrator shall conduct training 
        sessions to assist program participants in the development of 
        business principles and strategies to enhance their ability to 
        compete successfully for contracts in the marketplace.
          (7) Participation in joint ventures, leader-follower 
        arrangements, and teaming agreements.--
                  (A) In general.--A program participant in the 
                transitional stage shall be qualified to participate in 
                joint ventures, leader-follower arrangements, and 
                teaming agreements between the program participant and 
                other program participants and other business concerns 
                with respect to contracting opportunities for the 
                research, development, full-scale engineering, or 
                production of major systems.
                  (B) Agency programs.--Activities under subparagraph 
                (A) shall be undertaken on the basis of programs 
                developed by the Federal agency responsible for the 
                procurement of the major system, with the assistance of 
                the Administrator.
          (8) Business planning training and technical assistance.--A 
        program participant in the transitional stage shall be 
        qualified to receive transitional management business planning 
        training and technical assistance.
Sec. 23328. Attainment of business activity targets
  (a) Developmental Stage.--During the developmental stage of 
participation in the program, a program participant shall take all 
reasonable efforts within its control to attain the business activity 
targets contained in its business plan. Those efforts shall be made a 
part of the business plan and shall be sufficient in scope and duration 
to satisfy the Administrator that the program participant will engage a 
reasonable marketing strategy that will maximize its potential to 
attain its business activity targets.
  (b) Transitional Stage.--
          (1) In general.--During the transitional stage of 
        participation in the program, a program participant shall be 
        subject to regulations regarding business activity targets that 
        are promulgated by the Administrator.
          (2) Establishment of business activity targets.--The 
        regulations under paragraph (1) shall establish business 
        activity targets applicable to program participants during the 
        fifth year and each succeeding year of program participation. 
        The business activity targets, for that period of time, shall 
        reflect a reasonably consistent increase in contracts awarded 
        other than under the program, expressed as a percentage of 
        total sales.
          (3) Attainment.--The regulations under paragraph (1) shall 
        require a program participant to attain its business activity 
        targets.
          (4) Certification of compliance.--The regulations under 
        paragraph (1) shall provide that, before the receipt of any 
        contract to be awarded under the program, the program 
        participant (if it is in the transitional stage) shall certify 
        that it--
                  (A) has complied with the regulations; or
                  (B) is in compliance with such remedial measures as 
                have been ordered under regulations promulgated under 
                paragraph (6).
          (5) Performance review.--The regulations under paragraph (1) 
        shall require the Administrator to review a program 
        participant's performance regarding attainment of business 
        activity targets during periodic reviews of the program 
        participant's business plan.
          (6) Remedial measures.--
                  (A) In general.--The regulations under paragraph (1) 
                shall authorize the Administrator to take appropriate 
                remedial measures with respect to a program participant 
                that fails to attain a required business activity 
                target for the purpose of reducing the program 
                participant's dependence on contracts awarded under the 
                program.
                  (B) Measures.--Remedial measures may include--
                          (i) assisting the program participant in 
                        expanding the dollar volume of its competitive 
                        business activity; and
                          (ii) limiting the dollar volume of contracts 
                        awarded to the program participant under the 
                        program.
                  (C) Nonreviewability.--Except for a remedial measure 
                that would constitute a termination, a remedial measure 
                taken under this paragraph shall not be reviewable 
                under section 23311 of this title.
Sec. 23329. Program participation period
  A program participant may receive assistance under the program for a 
total period of not longer than 9 years, measured from the date of its 
certification under section 23325 of this title, of which--
          (1) not more than 4 years may be spent in the developmental 
        stage of program participation; and
          (2) not more than 5 years may be spent in the transitional 
        stage of program participation.
Sec. 23330. Collection of data on program operations
  The Administrator shall develop and implement a process for the 
systematic collection of data on the operations of the program.
Sec. 23331. Approval of contract options and modifications
  The Administrator shall make substantial and sustained efforts to 
achieve a maximum 10-day period as the average processing time for 
approving options and modifications to contracts awarded under the 
program and submitted to the Administrator for approval.
Sec. 23332. Orderly and efficient management of program
  The Administrator shall, to the maximum extent practicable, minimize 
delay, eliminate excess regulation, and require only such paperwork as 
is necessary to effect the orderly and efficient management of the 
program and the award of contracts under the program.
Sec. 23333. Participation in federally funded programs and projects
  (a) In General.--A small business concern that is certified, or 
otherwise meets the criteria for participation in any program under the 
program, shall not be required by any State or political subdivision of 
a State to meet additional criteria or certification, unrelated to the 
capability to provide the requested product or service, to participate 
as a small business concern owned and controlled by socially and 
economically disadvantaged individuals in any program or project that 
is funded, in whole or in part, by the Federal Government.
  (b) Notice of Participation by the Secretary of Transportation.--The 
Secretary of Transportation shall notify each State or political 
subdivision of a State to which the Secretary of Transportation awards 
a grant or other Federal funds of the criteria for participation by a 
small business concern owned and controlled by socially and 
economically disadvantaged individuals in any program or project that 
is funded, in whole or in part, by the Federal Government.

            CHAPTER 235--TECHNICAL AND MANAGEMENT ASSISTANCE

Sec.
23501.  Financial assistance for projects providing technical or 
          management assistance.
23502.  Eligible projects.
23503.  Location of service.
Sec. 23501. Financial assistance for projects providing technical or 
                    management assistance
  (a) In General.--The Administrator shall provide financial assistance 
to public or private organizations to pay all or part of the cost of 
projects designed to provide technical or management assistance to 
program participants, with special attention to small business concerns 
located in areas with high proportions of unemployed or low-income 
individuals.
  (b) Form of Assistance.--The financial assistance authorized for 
projects under this chapter includes assistance advanced by grant, 
agreement, or contract.
  (c) Payment.--The Administrator may make payments under a grant or 
contract under this chapter in lump sum or installments, and in advance 
or by way of reimbursement, and in the case of grants, with necessary 
adjustments on account of overpayments or underpayments.
Sec. 23502. Eligible projects
  (a) In General.--Financial assistance under this chapter may be 
provided for projects, including projects for--
          (1) planning and research, including feasibility studies and 
        market research;
          (2) the identification and development of new business 
        opportunities;
          (3) the furnishing of centralized services with regard to 
        public services and Federal Government programs including the 
        programs authorized under this division and section 20511 of 
        this title;
          (4) the establishment and strengthening of business service 
        agencies, including trade associations and cooperatives; and
          (5) the furnishing of business counseling, management 
        training, and legal and other related services, with special 
        emphasis on the development of management training programs 
        using the resources of the business community (including the 
        development of management training opportunities in existing 
        business) and with emphasis in all cases on providing 
        management training of sufficient scope and duration to develop 
        entrepreneurial and managerial self-sufficiency on the part of 
        the individuals served.
  (b) Preference.--The Administrator shall give preference to projects 
that promote the ownership, participation in ownership, or management 
of small business concerns owned by program participants.
Sec. 23503. Location of service
  To the extent feasible, service under this chapter shall be provided 
in a location that is easily accessible to the program participants 
served.

                   DIVISION F--PROCUREMENT ASSISTANCE

                    CHAPTER 241--GENERAL PROVISIONS

Sec.
24101.  Definition of executive agency.
24102.  Authority.
24103.  Technical, managerial, and informational aids.
24104.  Inventory of productive facilities.
24105.  Utilization of productive capacity.
24106.  Subcontracting to small business concerns.
24107.  Size certification.
24108.  Responsibility certification.
24109.  Information pertaining to Federal procurement or production.
24110.  Information pertaining to disposal of Federal property.
24111.  Information pertaining to supplies of materials.
24112.  Fair proportions of business for small business concerns.
24113.  Fair and reasonable treatment of small business concerns.
24114.  Information and assistance pertaining to federally aided urban 
          renewal projects.
24115.  Dissemination of information by the Administrator.
24116.  Availability of information from Federal agencies.
24117.  Adjustment of regulations and programs to the needs of small 
          business concerns.
24118.  Outreach programs for disabled veterans, veterans, and 
          reservists.
Sec. 24101. Definition of executive agency
  In this division, the term ''executive agency'' has the meaning given 
the term in section 4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403).
Sec. 24102. Authority
  The Administrator shall take an action under this chapter when the 
Administrator determines that the action is necessary.
Sec. 24103. Technical, managerial, and informational aids
  (a) In General.--
          (1) Activities.--The Administrator shall provide technical, 
        managerial, and informational aids to small business concerns--
                  (A) by advising and counseling on matters in 
                connection with Government procurement and policies, 
                principles, and practices of good management;
                  (B) by cooperating and advising with--
                          (i) voluntary business, professional, 
                        educational, and other nonprofit organizations, 
                        associations, and institutions; and
                          (ii) other Federal and State agencies;
                  (C) by maintaining a clearinghouse for information on 
                managing, financing, and operating small business 
                concerns; and
                  (D) by disseminating such information, including 
                through recognition events, and by other activities 
                that the Administration determines to be appropriate.
          (2) No endorsement; appropriate recognition.--In cooperating 
        and advising with an entity under paragraph (1)(B)(i), the 
        Administrator shall take such actions as the Administrator 
        determines to be necessary to ensure that--
                  (A) the cooperation does not constitute or imply an 
                endorsement by the Administrator of the entity or its 
                products or services; and
                  (B) the Administration receives appropriate 
                recognition in all printed material.
          (3) For-profit concerns.--The Administrator may provide 
        technical, managerial, and informational aids to small business 
        concerns through cooperation with a for-profit concern 
        (referred to in this paragraph as a ``cosponsor'') if the 
        Administrator--
                  (A) takes such action as the Administrator determines 
                to be appropriate to ensure that--
                          (i) the Administration receives appropriate 
                        recognition and publicity;
                          (ii) the cooperation does not constitute or 
                        imply an endorsement by the Administrator of 
                        any product or service of the cosponsor;
                          (iii) unnecessary promotion of the products 
                        or services of the cosponsor is avoided; and
                          (iv) the use of any one cosponsor in a 
                        marketing area is minimized; and
                  (B) develops an agreement, executed on behalf of the 
                Administrator by an employee of the Administration in 
                Washington, the District of Columbia, that, at a 
                minimum--
                          (i) specifies the terms and conditions of the 
                        cooperation; and
                          (ii) provides that--
                                  (I) any printed material to announce 
                                the cosponsorship or to be distributed 
                                at the cosponsored activity shall be 
                                approved in advance by the 
                                Administrator;
                                  (II) only minimal charges may be 
                                imposed on any small business concern 
                                to cover the direct costs of providing 
                                the assistance;
                                  (III) the Administrator may provide 
                                to the cosponsor mailing labels but not 
                                lists of names and addresses of small 
                                business concerns compiled by the 
                                Administrator;
                                  (IV) all printed materials containing 
                                the names of both the Administration 
                                and the cosponsor shall include a 
                                prominent disclaimer that the 
                                cooperation does not constitute or 
                                imply an endorsement by the 
                                Administrator of any product or service 
                                of the cosponsor; and
                                  (V) the Administration shall receive 
                                appropriate recognition in all 
                                cosponsorship printed materials.
  (b) Volunteer Programs.--
          (1) In general.--In carrying out this section, the 
        Administrator shall establish, conduct, and publicize, and 
        recruit, select, and train volunteers for, and enter into 
        contracts, grants, or cooperative agreements for, volunteer 
        programs, including SCORE and an Active Corps of Executives for 
        the purposes of subsection (a).
          (2) Staff.--To facilitate the implementation of the volunteer 
        programs, the Administrator shall, to the extent and in such 
        amounts as are provided in advance in appropriation Acts, 
        maintain at Administration headquarters, and pay the salaries, 
        benefits, and expenses of, a volunteer and professional staff 
        to manage and oversee the volunteer programs.
          (3) Contributions.--Notwithstanding any other provision of 
        law, SCORE may--
                  (A) solicit cash and in-kind contributions from the 
                private sector to be used to carry out its functions 
                under this subtitle; and
                  (B) use payments made by the Administrator under this 
                subsection for such solicitation and management of the 
                contributions received.
  (c) Use of Administration Facilities.--The Administrator shall allow 
any individual or group of persons participating with the Administrator 
in furtherance of this section to use such of the Administration's 
office facilities and related material and services (including clerical 
and stenographic services) as the Administrator considers appropriate.
  (d) Volunteers Deemed To Be Federal Employees for Federal Tort Claims 
Purposes.--A volunteer, while carrying out an activity under this 
section, shall be deemed to be a Federal employee for purposes of 
chapter 171 of title 28.
  (e) Volunteers Deemed To Be Civil Employees for Work Injury 
Compensation Purposes.--A volunteer, while carrying out an activity 
under this section, shall, for purposes of subchapter I of chapter 81 
of title 5 (relative to compensation to Federal employees for work 
injuries), be deemed to be a civil employee of the United States within 
the meaning of the term ``employee'' as defined in section 8101 of 
title 5, and that subchapter shall apply except that in computing 
compensation benefits for disability or death, the monthly pay of a 
volunteer shall be deemed to be that received under the entrance salary 
for a grade GS-11 employee.
  (f) Reimbursement of Volunteers.--
          (1) In general.--The Administrator may reimburse a volunteer 
        carrying out an activity under this section for--
                  (A) all necessary out-of-pocket expenses incident to 
                the volunteer's provision of services under this 
                subtitle, or in connection with attendance at a meeting 
                sponsored by the Administration;
                  (B) the cost of malpractice insurance, as the 
                Administrator shall determine, in accordance with 
                regulations that the Administrator shall prescribe; and
                  (C) travel expenses (including per diem in lieu of 
                subsistence) as authorized by section 5703 of title 5 
                for individuals serving without pay, while the 
                volunteer is carrying out such an activity away from 
                the volunteer's home or regular place of business.
          (2) Treatment of payments.--Notwithstanding any other 
        provision of law, no payment for supportive services or 
        reimbursement of out-of-pocket expenses made to a volunteer 
        serving under this section shall be subject to any tax or 
        charge or be treated as wages or compensation for the purposes 
        of unemployment, disability, retirement, public assistance, or 
        similar benefit payments, or minimum wage laws.
  (g) Limitation on Provision of Services to Persons With a Delinquent 
Loan.--A volunteer carrying out an activity under this section shall 
not provide any service to a person with a loan under this subtitle 
that is delinquent except on a specific request for assistance signed 
by the person in connection with the delinquency.
  (h) Grants for Business Counseling and Assistance.--
          (1) In general.--In carrying out this section, the 
        Administrator may make a grant to, or enter into a contract or 
        cooperative agreement with, a public or private institution of 
        higher education for the establishment and operation of a small 
        business institute, which shall be used to provide business 
        counseling and assistance to small business concerns through 
        the activities of students enrolled at the institution.
          (2) Educational credits.--A student engaged in an activity 
        funded under paragraph (1) shall be entitled to receive 
        educational credit for the activity.
  (i) Payment of Expenses in Judicial or Administrative Proceedings.--
Notwithstanding any other provision of law and in accordance with 
regulations that the Administrator shall prescribe, in a judicial or 
administrative proceeding arising directly out of the performance of an 
activity under this section to which a volunteer is made a party, the 
Administrator may employ counsel and pay counsel fees, court costs, 
bail, and other expenses incidental to the defense of the volunteer.
Sec. 24104. Inventory of productive facilities
  (a) In General.--The Administrator shall--
          (1) make a complete inventory of all productive facilities of 
        small business concerns; or
          (2) arrange for such an inventory to be made by any other 
        governmental agency that has the facilities.
  (b) Information From State Agencies.--In making an inventory under 
subsection (a), the Administrator or other governmental agency may 
request an appropriate agency of a State to furnish an inventory of the 
productive facilities of small business concerns in the State if such 
an inventory is available or in prospect.
Sec. 24105. Utilization of productive capacity
  The Administrator shall--
          (1) coordinate and ascertain the means by which the 
        productive capacity of small business concerns can be most 
        effectively utilized; and
          (2) consult and cooperate with officers of the Government 
        having procurement or property disposal powers, in order to 
        utilize the potential productive capacity of plants operated by 
        small business concerns.
Sec. 24106. Subcontracting to small business concerns
  The Administrator shall--
          (1) obtain information concerning methods and practices that 
        Government prime contractors utilize in letting subcontracts; 
        and
          (2) take action to encourage the letting of subcontracts by 
        prime contractors to small business concerns at prices and on 
        terms and conditions that are fair and equitable.
Sec. 24107. Size certification
  (a) In General.--The Administrator shall determine within any 
industry the concerns that qualify as a small business concern for 
purposes of this subtitle.
  (b) Issuance of Certificate.--When requested to do so, the 
Administrator shall issue a certificate certifying a concern as a small 
business concern in accordance with the criteria stated in this 
subtitle and section 10101 of this title.
  (c) Revocation of Certificate.--A certificate issued under subsection 
(b) shall be subject to revocation when the concern covered by the 
certificate ceases to qualify as a small business concern.
  (d) Conclusive Determination.--An officer of the Government having 
procurement or lending power, or engaging in the disposal of Federal 
property or allocating materials or supplies, or promulgating 
regulations affecting the distribution of materials or supplies, shall 
accept as conclusive the Administrator's determination whether a 
concern qualifies as a small business concern.
Sec. 24108. Responsibility certification
  (a) Definitions.--In this section:
          (1) Contracting officer.--The term ``contracting officer'' 
        means--
                  (A) a contracting officer; and
                  (B) any other officer engaged in the sale and 
                disposal of Federal property.
          (2) Responsibility.--The term ``responsibility'' includes 
        capability, competency, capacity, credit, integrity, 
        perseverance, and tenacity.
  (b) Certification.--The Administrator shall certify to a contracting 
officer with respect to all elements of the responsibility of a small 
business concern or group of small business concerns to receive and 
perform a specific Government contract.
  (c) No Preclusion From Award of Contract Without Referral to the 
Administrator.--A contracting officer may not, for any reason relating 
to an element of responsibility as determined under subsection (b), 
preclude a small business concern or group of small business concerns 
from being awarded a contract without referring the matter for a final 
disposition to the Administrator.
  (d) Conclusive Determination.--A contracting officer shall--
          (1) accept as conclusive a certification made under 
        subsection (b) as to the specific Government contract with 
        respect to which the certification is made; and
          (2) let the contract to the small business concern or group 
        of small business concerns without requiring the small business 
        concern or group of small business concerns to meet any other 
        requirement of responsibility or eligibility.
  (e) No Exemption.--The Administrator may not establish an exemption 
from referral or notification or refuse to accept a referral or 
notification from a contracting officer made under subsection (c), but 
nothing in this section requires the processing of an application for 
certification if the small business concern to which the referral 
pertains declines to have the application processed.
Sec. 24109. Information pertaining to Federal procurement or production
  The Administrator shall obtain from any Federal agency engaged in 
procurement or in the financing of procurement or production such 
reports concerning the letting of contracts and subcontracts and the 
making of loans to business concerns as the Administrator considers 
pertinent in carrying out the functions of the Administrator under this 
subtitle and subtitle I.
Sec. 24110. Information pertaining to disposal of Federal property
  The Administrator shall obtain from any Federal agency engaged in the 
disposal of Federal property such reports concerning the solicitation 
of bids, time of sale, or otherwise as the Administrator considers 
pertinent in carrying out the functions of the Administrator under this 
subtitle and subtitle I.
Sec. 24111. Information pertaining to supplies of materials
  The Administrator shall obtain from suppliers of materials 
information pertaining to the method of filling orders for materials, 
and the bases for allocating their supplies of materials, when it 
appears that a small business concern is unable to obtain material from 
its normal sources.
Sec. 24112. Fair proportions of business for small business concerns
  The Administrator shall make studies and recommendations to the 
appropriate Federal agencies to ensure that--
          (1) a fair proportion of the total purchases and contracts 
        for property and services for the Government is placed with 
        small business concerns;
          (2) a fair proportion of Government contracts for research 
        and development is placed with small business concerns;
          (3) a fair proportion of the total sales of Government 
        property is made to small business concerns; and
          (4) a fair and equitable share of materials, supplies, and 
        equipment is available to small business concerns.
Sec. 24113. Fair and reasonable treatment of small business concerns
  The Administrator shall consult and cooperate with all Federal 
agencies for the purpose of ensuring that small business concerns 
receive fair and reasonable treatment from Federal agencies.
Sec. 24114. Information and assistance pertaining to federally aided 
                    urban renewal projects
  The Administrator shall provide at the earliest practicable time such 
information and assistance as are appropriate (including information 
concerning eligibility for loans under section 21303 of this title) to 
local public agencies (as defined in section 110(h) of the Housing Act 
of 1949 (42 U.S.C. 1460(h))) and to small business concerns to be 
displaced by federally aided urban renewal projects in order to assist 
the small business concerns in reestablishing operations.
Sec. 24115. Dissemination of information by the Administrator
  (a) In General.--The Administrator shall disseminate, without regard 
to section 3204 of title 39, information, in such form as the 
Administrator considers appropriate, to public agencies, private 
organizations, and the general public.
  (b) Information on Federal Procurement Practices.--The Administrator 
shall, for each fiscal year--
          (1) collect information concerning the procurement practices 
        and procedures of each Federal agency having procurement 
        authority;
          (2) publish and disseminate the information to contracting 
        officers in all Federal agencies; and
          (3) make the information available to any small business 
        concern that requests the information.
Sec. 24116. Availability of information from Federal agencies
  (a) Requests for Information.--For any contract to be let by any 
Federal agency, the Federal agency shall provide to any small business 
concern, on request by the small business concern--
          (1) a copy of bid sets and specifications with respect to the 
        contract;
          (2) the name and telephone number of an employee of the 
        Federal agency to answer questions with respect to the 
        contract; and
          (3) adequate citations to each major Federal law (including a 
        regulation) with which the small business concern must comply 
        in performing the contract.
  (b) Exempt Contracts.--Subsection (a) does not apply to a contract 
(or subcontract) that--
          (1) will be performed entirely outside the United States; or
          (2) is for services that are personal in nature.
Sec. 24117. Adjustment of regulations and programs to the needs of 
                    small business concerns
  The Administrator shall--
          (1) make studies of matters materially affecting the 
        competitive strength of small business concerns and of the 
        effect on small business concerns of Federal laws (including 
        regulations) and programs; and
          (2) make recommendations to Federal agencies as appropriate 
        for the adjustment of regulations and programs to the needs of 
        small business concerns.
Sec. 24118. Outreach programs for disabled veterans, veterans, and 
                    reservists
  (a) In General.--The Administrator shall make grants to, and enter 
into contracts and cooperative agreements with, educational 
institutions, private businesses, veterans' nonprofit community-based 
organizations, and Federal agencies and State and local agencies for 
the establishment and implementation of outreach programs for disabled 
veterans, veterans, and reservists.
  (b) Increase in Number of Veterans Business Outreach Centers.--The 
Administrator shall use the authority under subsection (a) to ensure 
that the number of veterans business outreach centers throughout the 
United States increases by the number that the Administrator considers 
appropriate, based on need, for each fiscal year.

                 CHAPTER 243--SUBCONTRACTING PROVISIONS

Sec.
24301.  Opportunity to participate in performance of contracts.
24302.  Notice of provisions relating to contracts awarded pursuant to 
          the negotiated method of procurement.
24303.  Subcontracting plans.
24304.  Incentives.
24305.  Liquidated damages.
24306.  Material breach.
24307.  Effect of chapter.
Sec. 24301. Opportunity to participate in performance of contracts
  (a) In General.--The clause stated in subsection (c) shall be 
included in all contracts let by a Federal agency except a contract 
described in subsection (b).
  (b) Excepted Contracts.--The clause stated in subsection (c) need not 
be included in--
          (1) a contract that does not exceed the simplified 
        acquisition threshold;
          (2) a contract (including all subcontracts under the 
        contract) that will be performed entirely outside the United 
        States; or
          (3) a contract for a service that is personal in nature.
  (c) Required Clause.--The clause required by subsection (a) is as 
follows:
          ``(1) Definitions.--
                  ``(A) In general.--As used in this contract, each of 
                the terms `qualified HUBZone small business concern', 
                `small business concern', `small business concern owned 
                and controlled by service-disabled veterans', `small 
                business concern owned and controlled by socially and 
                economically disadvantaged individuals', `small 
                business concern owned and controlled by veterans', and 
                `small business concern owned and controlled by women' 
                has the meaning given the term in section 10101 of 
                title 53, United States Code.
                  ``(B) Presumption.--For purposes of applying the 
                definition of `small business concern owned and 
                controlled by socially and economically disadvantaged 
                individuals', the contractor shall presume that 
                socially and economically disadvantaged individuals 
                include Black Americans, Hispanic Americans, Native 
                Americans, Asian Pacific Americans, and other 
                minorities, or any other individual found to be 
                disadvantaged by the United States Small Business 
                Administration.
          ``(2) Policy.--It is the policy of the United States that 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns 
        shall have the maximum practicable opportunity to participate 
        in the performance of contracts let by any Federal agency, 
        including contracts and subcontracts for subsystems, 
        assemblies, components, and related services for major systems. 
        It is further the policy of the United States that its prime 
        contractors establish procedures to ensure the timely payment 
        of amounts due pursuant to the terms of their subcontracts with 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns.
          ``(3) Agreement.--The contractor agrees--
                  ``(A) to carry out the policy stated in paragraph (2) 
                in the awarding of subcontracts to the fullest extent 
                consistent with the efficient performance of this 
                contract; and
                  ``(B) to cooperate in any studies or surveys that may 
                be conducted by the United States Small Business 
                Administration or the awarding agency of the United 
                States as necessary to determine the extent of the 
                contractor's compliance with this clause.
          ``(4) Reliance on written representation.--The contractor, 
        acting in good faith, may rely on a written representation by a 
        subcontractor regarding its status as a qualified HUBZone small 
        business concern, small business concern owned and controlled 
        by service-disabled veterans, small business concern owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concern owned and controlled by 
        veterans, small business concern owned and controlled by women, 
        or other small business concern.''
Sec. 24302. Notice of provisions relating to contracts awarded pursuant 
                    to the negotiated method of procurement
  (a) Required Clause.--A solicitation of an offer for a contract 
described in subsection (b) shall contain a clause notifying potential 
offering companies of the provisions of this chapter relating to 
contracts awarded pursuant to the negotiated method of procurement.
  (b) Contracts.--A contract referred to in subsection (a) is a 
contract let by a Federal agency that--
          (1) is to be awarded pursuant to the negotiated method of 
        procurement; and
          (2) may exceed--
                  (A) $1,000,000, in the case of a contract for the 
                construction of a public facility; or
                  (B) $500,000, in the case of any other contract.
Sec. 24303. Subcontracting plans
  (a) Definitions.--In this section:
          (1) Bidder.--The term ``bidder'' does not include a bidder 
        that is a small business concern.
          (2) Offeror.--The term ``offeror'' does not include an 
        offeror that is a small business concern.
  (b) Negotiated Procurements.--
          (1) Negotiation.--Before the award of any contract described 
        in paragraph (2), or any amendment or modification to such a 
        contract, the apparent successful offeror shall negotiate with 
        the procurement authority a subcontracting plan that 
        incorporates the information prescribed in subsection (d).
          (2) Contracts.--A contract referred to in paragraph (1) is a 
        contract let by a Federal agency that--
                  (A) is to be (or was) awarded pursuant to the 
                negotiated method of procurement;
                  (B) is required to include the clause stated in 
                section 24301 of this title;
                  (C) may exceed--
                          (i) $1,000,000, in the case of a contract for 
                        the construction of a public facility; or
                          (ii) $500,000, in the case of any other 
                        contract; and
                  (D) offers a subcontracting possibility.
          (3) Inclusion in contract.--The subcontracting plan shall be 
        included in and made a material part of the contract.
          (4) Failure to negotiate subcontracting plan.--If, within the 
        time prescribed in regulations of the procuring agency, the 
        apparent successful offeror fails to negotiate the 
        subcontracting plan required by paragraph (2), the offeror 
        shall be ineligible to be awarded the contract.
          (5) Prior compliance a factor in determining 
        responsibility.--Prior compliance of the offeror with other 
        subcontracting plans under this subsection shall be considered 
        by a procuring agency in determining the responsibility of the 
        offeror for the award of the contract.
          (6) Maximum opportunity.--No contract shall be awarded to any 
        offeror unless the procuring agency determines that the 
        subcontracting plan to be negotiated by the offeror under 
        paragraph (2) provides the maximum practicable opportunity for 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns, to 
        participate in the performance of the contract.
  (c) Advertised Procurements.--
          (1) Required clause.--A solicitation of a bid for a contract 
        described in paragraph (2), or any amendment or modification to 
        such a contract, shall contain a clause requiring any bidder 
        that is selected to be awarded a contract to submit to the 
        procuring agency a subcontracting plan that incorporates the 
        information prescribed in subsection (d).
          (2) Contracts.--A contract referred to in paragraph (1) is a 
        contract let by a Federal agency that--
                  (A) is to be awarded pursuant to the formal 
                advertising method of procurement;
                  (B) is required to contain the clause stated in 
                section 24301 of this title;
                  (C) may exceed--
                          (i) $1,000,000, in the case of a contract for 
                        the construction of a public facility; or
                          (ii) $500,000, in the case of any other 
                        contract; and
                  (D) offers a subcontracting possibility.
          (3) Inclusion in contract.--The subcontracting plan of the 
        bidder awarded the contract shall be included in and made a 
        material part of the contract.
          (4) Failure to submit subcontracting plan.--If, within the 
        time prescribed in regulations of the procuring agency, the 
        bidder selected to be awarded the contract fails to submit the 
        subcontracting plan required by paragraph (1), the bidder shall 
        become ineligible to be awarded the contract.
          (5) Prior compliance a factor in determining 
        responsibility.--Prior compliance of the bidder with other 
        subcontracting plans under this subsection shall be considered 
        by the procuring agency in determining the responsibility of 
        the bidder for the award of the contract.
  (d) Contents of Subcontracting Plan.--A subcontracting plan shall 
include--
          (1) percentage goals for the utilization as subcontractors of 
        qualified HUBZone small business concerns, small business 
        concerns owned and controlled by service-disabled veterans, 
        small business concerns owned and controlled by socially and 
        economically disadvantaged individuals, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns;
          (2) the name of an individual within the employ of the 
        offeror or bidder who will administer the subcontracting 
        program of the offeror or bidder and a description of the 
        duties of that individual;
          (3) a description of the efforts that the offeror or bidder 
        will take to ensure that qualified HUBZone small business 
        concerns, small business concerns owned and controlled by 
        service-disabled veterans, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concerns owned and controlled by 
        veterans, small business concerns owned and controlled by 
        women, and other small business concerns will have an equitable 
        opportunity to compete for subcontracts;
          (4) assurances that the offeror or bidder will--
                  (A) include the clause required by section 24301 of 
                this title in all subcontracts that offer further 
                subcontracting opportunities; and
                  (B) require all subcontractors (except small business 
                concerns) that receive subcontracts in excess of 
                $1,000,000 in the case of a contract for the 
                construction of a public facility, or in excess of 
                $500,000 in the case of any other contract, to adopt a 
                subcontracting plan similar to the subcontracting plan 
                required under subsection (b) or (c);
          (5) assurances that the offeror or bidder will submit such 
        periodic reports and cooperate in any studies or surveys as may 
        be required by the procuring agency or the Administrator to 
        determine the extent of compliance by the offeror or bidder 
        with the subcontracting plan; and
          (6) a recitation of--
                  (A) the types of records that the successful offeror 
                or bidder will maintain to demonstrate procedures that 
                are adopted to comply with the requirements and goals 
                set forth in the subcontracting plan, including the 
                establishment of source lists of qualified HUBZone 
                small business concerns, small business concerns owned 
                and controlled by service-disabled veterans, small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals, small business 
                concerns owned and controlled by veterans, small 
                business concerns owned and controlled by women, and 
                other small business concerns; and
                  (B) efforts to identify and award subcontracts to 
                small business concerns.
  (e) Attainment of Goals.--
          (1) Attainability of goals.--A Federal agency shall ensure 
        that the goals offered by an apparent successful bidder or 
        offeror are attainable in relation to--
                  (A) the subcontracting opportunities available to the 
                contractor, commensurate with the efficient and 
                economical performance of the contract;
                  (B) the pool of eligible subcontractors available to 
                fulfill the subcontracting opportunities; and
                  (C) the actual performance of the contractor in 
                fulfilling the subcontracting goals specified in prior 
                subcontracting plans.
          (2) Credit for development assistance.--For purposes of 
        determining the attainment of a subcontract utilization goal 
        under a subcontracting plan entered into with an executive 
        agency under subsection (b) or (c), a mentor firm that provides 
        development assistance to a protege firm under the pilot 
        Mentor-Protege Program established pursuant to section 831 of 
        the National Defense Authorization Act for Fiscal Year 1991 
        (Public Law 101-510; 10 U.S.C. 2302 note) shall be granted 
        credit for the assistance in accordance with subsection (g) of 
        that section.
  (f) Bundled Contracts.--The following factors shall be designated by 
a Federal agency as significant factors for purposes of evaluating 
offers for a bundled contract if the head of the Federal agency 
determines that the contract offers a significant opportunity for 
subcontracting:
          (1) A factor that is based on the rate provided under the 
        subcontracting plan for small business participation in the 
        performance of the contract.
          (2) For the evaluation of past performance of an offeror, a 
        factor that is based on the extent to which the offeror 
        attained applicable goals for small business participation in 
        the performance of contracts.
  (g) Compliance Assistance.--The Administrator may--
          (1) assist Federal agencies and businesses in complying with 
        their responsibilities under this section, including the 
        formulation of subcontracting plans;
          (2)(A) review any solicitation for any contract to be let 
        under subsection (b) or (c) to determine the maximum 
        practicable opportunity for qualified HUBZone small business 
        concerns, small business concerns owned and controlled by 
        service-disabled veterans, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concerns, small business concerns 
        owned and controlled by veterans, small business concerns owned 
        and controlled by women, and other small business concerns to 
        participate as subcontractors in the performance of any 
        contract resulting from any solicitation; and
          (B) submit findings, which shall be advisory in nature, to 
        the procuring agency; and
          (3) evaluate compliance with subcontracting plans--
                  (A) on a contract-by-contract basis; or
                  (B) in the case of a contractor having multiple 
                contracts, on an aggregate basis.
Sec. 24304. Incentives
  Notwithstanding any other provision of law, a Federal agency, to 
encourage subcontracting opportunities for qualified HUBZone small 
business concerns, small business concerns owned and controlled by 
service-disabled veterans, small business concerns owned and controlled 
by socially and economically disadvantaged individuals, small business 
concerns owned and controlled by veterans, small business concerns 
owned and controlled by women, and other small business concerns, may 
provide such incentives as the Federal agency considers appropriate to 
encourage such subcontracting opportunities as are commensurate with 
the efficient and economical performance of a contract that is let 
pursuant to the negotiated method of procurement.
Sec. 24305. Liquidated damages
  (a) Required Clause.--
          (1) In general.--A contract subject to subsection (b) or (c) 
        of section 24303 of this title shall contain a clause for the 
        payment of liquidated damages on a finding that a prime 
        contractor has failed to make a good faith effort to comply 
        with the requirements imposed on the contractor by this 
        chapter.
          (2) Inclusion in federal acquisition regulation.--The clause 
        required by paragraph (1) shall be made part of the Federal 
        Acquisition Regulation and promulgated pursuant to section 22 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        418b).
  (b) Demonstration of Good Faith Effort.--A contractor shall be 
afforded an opportunity to demonstrate a good faith effort regarding 
compliance prior to the contracting officer's final decision regarding 
the imposition of damages and the amount of damages under subsection 
(a).
  (c) Dispute Resolution.--The final decision of a contracting officer 
regarding the contractor's obligation to pay damages under subsection 
(a) or the amount of damages shall be subject to the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).
Sec. 24306. Material breach
  The failure of a contractor or subcontractor to comply in good faith 
with--
          (1) the clause required under section 24301 of this title; or
          (2) a subcontracting plan required of the contractor pursuant 
        under section 24303 of this title to be included in its 
        contract or subcontract;
shall be a material breach of the contract or subcontract.
Sec. 24307. Effect of chapter
  Nothing in this chapter supersedes the requirements of part 331 of 
title 44, Code of Federal Regulations (or any successor regulation).

                     CHAPTER 245--NOTICE PROVISIONS

Sec.
24501.  Notice provisions.
24502.  Availability of complete solicitation package.
24503.  Limited applicability to Tennessee Valley Authority.
Sec. 24501. Notice provisions
  (a) In General.--Except as provided in subsection (e)--
          (1) an executive agency intending to--
                  (A) solicit bids or proposals for a contract for 
                property or services for a price expected to exceed 
                $25,000; or
                  (B) place an order, expected to exceed $25,000, under 
                a basic agreement, basic ordering agreement, or similar 
                arrangement;
        shall publish a notice described in subsection (d);
          (2) an executive agency intending to solicit bids or 
        proposals for a contract for property or services shall post, 
        for a period of not less than 10 days, in a public place at the 
        contracting office issuing the solicitation, a notice of 
        solicitation described in subsection (d)--
                  (A) in the case of an executive agency other than the 
                Department of Defense, if the contract is for a price 
                expected to exceed $10,000, but not to exceed $25,000; 
                and
                  (B) in the case of the Department of Defense, if the 
                contract is for a price expected to exceed $5,000, but 
                not to exceed $25,000; and
          (3) an executive agency awarding a contract for property or 
        services for a price exceeding $100,000, or placing an order 
        described in paragraph (1)(B) exceeding $100,000, shall furnish 
        for publication by the Secretary of Commerce a notice 
        announcing the award or order if there is likely to be a 
        subcontract under the contract or order.
  (b) Means of Publication.--
          (1) Notices of solicitation.--A notice of solicitation 
        required to be published under subsection (a) may be published 
        by electronic means that meet the accessibility requirements 
        under section 18(a)(7) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416(a)(7)).
          (2) Notices of subcontracting opportunity.--
                  (A) In general.--A notice of subcontracting 
                opportunity may be submitted for publication by--
                          (i) a business concern awarded a contract by 
                        an executive agency subject to subsection 
                        (a)(3); and
                          (ii) a business concern that is a 
                        subcontractor or supplier (at any tier) to such 
                        a business concern having a subcontracting 
                        opportunity in excess of $10,000.
                  (B) Contents.--A notice of a subcontracting 
                opportunity shall include--
                          (i) a description of the business opportunity 
                        that is comparable to the description specified 
                        in subparagraphs (A), (B), (C), and (D) of 
                        subsection (d)(1); and
                          (ii) the due date for receipt of offers.
                  (C) Uniform implementation.--The Federal Acquisition 
                Regulation shall provide for uniform implementation of 
                this paragraph.
  (c) Limitations.--When an executive agency is required by subsection 
(a)(1) to publish a notice of solicitation, the executive agency shall 
not--
          (1) issue the solicitation earlier than 15 days after the 
        date on which the notice is published; or
          (2) in the case of a contract or order estimated to be 
        greater than the simplified acquisition threshold, establish a 
        deadline for the submission of all bids or proposals in 
        response to the notice required by subsection (a)(1) that--
                  (A) in the case of an order under a basic agreement, 
                basic ordering agreement, or similar arrangement, is 
                earlier than the date that is 30 days after the date on 
                which the notice required by subsection (a)(1)(B) is 
                published;
                  (B) in the case of a solicitation for research and 
                development, is earlier than the date that is 45 days 
                after the date on which the notice required by 
                subsection (a)(1)(A) is published; or
                  (C) in any other case, is earlier than the date that 
                is 30 days after the date on which the solicitation is 
                issued.
  (d) Contents of Notice.--
          (1) In general.--A notice of solicitation required by 
        paragraph (1) or (2) of subsection (a) shall include--
                  (A) an accurate description of the property or 
                services to be contracted for;
                  (B) provisions that--
                          (i)(I) state whether the technical data 
                        required to respond to the solicitation will 
                        not be furnished as part of the solicitation; 
                        and
                          (II) identify the source in the Government, 
                        if any, from which the technical data may be 
                        obtained; and
                          (ii)(I) state whether an offeror, its 
                        product, or service must meet a qualification 
                        requirement in order to be eligible for award; 
                        and
                          (II) if so, identify the office from which a 
                        qualification requirement may be obtained;
                  (C) the name, business address, and telephone number 
                of the contracting officer;
                  (D) a statement that all responsible sources may 
                submit a bid, proposal, or quotation (as appropriate) 
                that shall be considered by the agency;
                  (E) in the case of a procurement using procedures 
                other than competitive procedures, a statement of the 
                reason justifying the use of such procedures and the 
                identity of the intended source; and
                  (F) in the case of a contract in an amount estimated 
                to be greater than $25,000 but not greater than the 
                simplified acquisition threshold--
                          (i) a description of the procedures to be 
                        used in awarding the contract; and
                          (ii) a statement specifying the periods for 
                        prospective offerors and the contracting 
                        officer to take the necessary preaward and 
                        award actions.
          (2) Property or service description.--A property or service 
        description under paragraph (1)(A)--
                  (A) shall not be unnecessarily restrictive of 
                competition; and
                  (B) shall include, as appropriate, the agency 
                nomenclature, National Stock Number or other part 
                number, and a brief description of the item's form, 
                fit, or function, physical dimensions, predominant 
                material of manufacture, or similar information that 
                will assist a prospective contractor in making an 
                informed business judgment concerning whether the 
                prospective contractor should request a copy of the 
                solicitation.
  (e) Exempted Activities.--A notice is not required under subsection 
(a)(1) if--
          (1) the proposed procurement--
                  (A) is for an amount not greater than the simplified 
                acquisition threshold; and
                  (B) is to be conducted by--
                          (i) using widespread electronic public notice 
                        of the solicitation in a form that allows 
                        convenient and universal user access through a 
                        single, Governmentwide point of entry; and
                          (ii) permitting the public to respond to the 
                        solicitation electronically;
          (2)(A) the notice would disclose the executive agency's 
        needs; and
          (B) the disclosure of those needs would compromise the 
        national security;
          (3)(A) the proposed procurement would result from acceptance 
        of an unsolicited proposal that demonstrates a unique and 
        innovative research concept; and
          (B) the publication of a notice of the unsolicited research 
        proposal would disclose the originality of thought or 
        innovativeness of the proposal or would disclose proprietary 
        information associated with the proposal;
          (4) the proposed procurement would result from acceptance of 
        a proposal submitted under chapter 263;
          (5) the procurement is made against an order placed under a 
        requirements contract;
          (6) the procurement is made for perishable subsistence 
        supplies;
          (7)(A) the procurement is for a utility service other than a 
        telecommunication service; and
          (B) only one source is available; or
          (8) the procurement is for the service of an expert for use 
        in any litigation or dispute (including preparation for any 
        foreseeable litigation or dispute) that involves or could 
        involve the Federal Government in any trial, hearing, or 
        proceeding before any court, administrative tribunal, or 
        agency, or in any part of an alternative dispute resolution 
        process, whether or not the expert is expected to testify.
Sec. 24502. Availability of complete solicitation package
  (a) In General.--An executive agency shall make available to any 
business concern, or the authorized representative of a business 
concern, the complete solicitation package for any ongoing procurement 
announced in a notice under section 24501 of this title.
  (b) Fee.--An executive agency may require the payment of a fee, not 
exceeding the actual cost of duplication, for a copy of a solicitation 
package under subsection (a).
Sec. 24503. Limited applicability to Tennessee Valley Authority
  This chapter applies to the Tennessee Valley Authority only with 
respect to procurements to be paid from appropriated funds.

                 CHAPTER 247--NONCOMPETITIVE PROCEDURES

Sec.
24701.  Limitation on use of noncompetitive procedures.
24702.  Limited applicability to Tennessee Valley Authority.
Sec. 24701. Limitation on use of noncompetitive procedures
  (a) In General.--An executive agency may not award a contract using 
procedures other than competitive procedures unless--
          (1) except as provided in subsection (c), a written 
        justification for the use of noncompetitive procedures has been 
        approved--
                  (A) in the case of a contract for an amount exceeding 
                $100,000 (but equal to or less than $1,000,000), by the 
                advocate for competition for the procurement activity;
                  (B) in the case of a contract for an amount exceeding 
                $1,000,000 (but equal to or less than $10,000,000), by 
                the head of the procurement activity or a delegate 
                who--
                          (i) if a member of the Armed Forces, is a 
                        general or flag officer; or
                          (ii) if a civilian, is serving in a position 
                        classified above GS-15 pursuant to section 5108 
                        of title 5; or
                  (C) in the case of a contract for an amount exceeding 
                $10,000,000, by the senior procurement executive of the 
                agency designated pursuant to section 16(c) of the 
                Office of Federal Procurement Policy Act (41 U.S.C. 
                414(c)); and
          (2) all other requirements applicable to the use of 
        noncompetitive procedures under title III of the Federal 
        Property and Administrative Services Act of 1949 (41 U.S.C. 251 
        et seq.) or chapter 137 of title 10, as appropriate, have been 
        satisfied.
  (b) Nondelegability.--The authority of an advocate for competition to 
approve the use of noncompetitive procedures under subsection (a)(1)(A) 
and the authority of a senior procurement executive to approve the use 
of noncompetitive procedures under subsection (a)(1)(C) may not be 
delegated.
  (c) Exceptions.--The same exceptions as are provided in section 
303(f)(2) of the Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 253(f)(2)) or section 2304(f)(2) of title 10 shall 
apply with respect to the requirements of subsection (a)(1) of this 
section in the same manner as those exceptions apply to the 
requirements of section 303(f)(1) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(f)(1)) or section 
2304(f)(1) of title 10, as appropriate.
Sec. 24702. Limited applicability to Tennessee Valley Authority
  This chapter applies to the Tennessee Valley Authority only with 
respect to procurements to be paid from appropriated funds.

   CHAPTER 249--SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM

Sec.
24901.  Definitions.
24902.  Establishment of program.
24903.  Enhanced small business participation goals.
24904.  Procurement procedures.
24905.  Reporting and collection of data.
24906.  Test plan and policy direction.
Sec. 24901. Definitions
  In this chapter:
          (1) Designated industry group.--
                  (A) In general.--The term ``designated industry 
                group'' means--
                          (i) construction (excluding dredging);
                          (ii) refuse systems and related services;
                          (iii) architectural and engineering services 
                        (including surveying and mapping);
                          (iv) non-nuclear ship repair; and
                          (v) landscaping and pest control services.
                  (B) Construction.--In subparagraph (A)(i), the term 
                ``construction'' includes a contract award that is 
                assigned a North American Industry Classification 
                System code in--
                          (i) Subsector 236 (Construction of 
                        Buildings);
                          (ii) Subsector 237 (Heavy and Civil 
                        Engineering Construction) (excluding dredging); 
                        or
                          (iii) Subsector 238 (Specialty Trade 
                        Contractors).
                  (C) Refuse and related services.--In subparagraph 
                (A)(ii), the term ``refuse systems and related 
                services'' includes a contract award that is assigned--
                          (i) a North American Industry Classification 
                        System code in Subsector 562 (Waste Management 
                        and Remediation Services) except code 56291;
                          (ii) North American Industry Classification 
                        System code 48411 (index item ``local general 
                        freight trucking without storage'' only);
                          (iii) North American Industry Classification 
                        System code 48421 (index item ``household goods 
                        moving without storage'' only); or
                          (iv) North American Industry Classification 
                        System code 48422 (index item ``local 
                        specialized freight without storage'' only).
                  (D) Architectural and engineering services.--In 
                subparagraph (A)(iii), the term ``architectural and 
                engineering services (including surveying and 
                mapping)'' includes a contract award that--
                          (i) is assigned North American Industry 
                        Classification System code 54131, 54133 (except 
                        index item ``traffic engineering''), 54136 
                        (index item ``geophysical surveying services'' 
                        only), or 54137; and
                          (ii) is awarded under the qualification-based 
                        selection procedures required by sections 1101 
                        to 1104 of title 40.
                  (E) Landscaping and pest control services.--In 
                subparagraph (A)(v), the term ``landscaping and pest 
                control services'' includes a contract award that is 
                assigned North American Industry Classification System 
                code 561710 (relating to extermination and pest control 
                services) or 561730 (relating to landscaping services).
          (2) Emerging small business concern.--The term ``emerging 
        small business concern'' means a small business concern whose 
        size is not greater than 50 percent of the numerical size 
        standard applicable to the North American Industry 
        Classification System code assigned to a contracting 
        opportunity.
          (3) Enhanced small business participation goal.--The term 
        ``enhanced small business participation goal'', with respect to 
        a participating agency, means an enhanced small business 
        participation goal established for the participating agency 
        under section 24903 of this title.
          (4) Full and open competition.--The term ``full and open 
        competition'' has the meaning given the term in section 4 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 403).
          (5) Participating agency.--
                  (A) In general.--The term ``participating agency'' 
                means an executive agency (as defined in section (4) of 
                the Office of Federal Procurement Policy Act (41 U.S.C. 
                403)) that the Administrator for Federal Procurement 
                Policy designates to participate in the program.
                  (B) Executive agencies required to be designated.--
                Under subparagraph (A), the Administrator for Federal 
                Procurement Policy shall designate to participate in 
                the program--
                          (i) the Department of Agriculture;
                          (ii) the Department of Defense (with the 
                        Department of the Army, the Department of the 
                        Navy, the Department of the Air Force, and the 
                        defense agencies reporting separately);
                          (iii) the Department of Energy;
                          (iv) the Department of Health and Human 
                        Services;
                          (v) the Department of the Interior;
                          (vi) the Department of Transportation;
                          (vii) the Environmental Protection Agency;
                          (viii) the General Services Administration 
                        (with the Public Building Service reporting 
                        separately);
                          (ix) the National Aeronautics and Space 
                        Administration; and
                          (x) the Department of Veterans Affairs.
                  (C) Reporting.--The Administrator for Federal 
                Procurement Policy may require any participating 
                agencies to report separately in any manner that the 
                Administrator for Federal Procurement Policy considers 
                appropriate to enhance the attainment of the test 
                activities authorized by this chapter.
          (6) Program.--The term ``program'' means the small business 
        competitiveness demonstration program.
          (7) Small business participation.--The term ``small business 
        participation'' includes the aggregate dollar value of every 
        procurement contract award made to a small business concern, 
        without regard to whether an award was based on restricted or 
        unrestricted competition or was made on a sole source basis.
Sec. 24902. Establishment of program
  (a) In General.--There is established a small business 
competitiveness demonstration program under section 15 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 413) to provide for the 
testing of innovative procurement methods and procedures.
  (b) Executive Agent.--The Administrator of Federal Procurement Policy 
shall designate the Administrator as the executive agent responsible 
for conducting the testing.
  (c) Purpose.--The purpose of the program is to demonstrate whether--
          (1) the competitive capabilities of small business concerns 
        in certain industry groups will enable the small business 
        concerns to compete successfully on an unrestricted basis for 
        Federal contracting opportunities;
          (2) the use of targeted goaling and management techniques by 
        procuring agencies, in conjunction with the Administrator, can 
        expand small business participation in Federal contracting 
        opportunities that have been historically low, despite adequate 
        numbers of qualified small business contractors in the economy; 
        and
          (3) expanded use of full and open competition adversely 
        affects small business participation in certain industry 
        groups, taking into consideration the numerical dominance of 
        small firms, the size and scope of most contracting 
        opportunities, and the competitive capabilities of small 
        business concerns.
  (d) Applicability.--The program shall apply to contract solicitations 
for the procurement of services in the designated industry groups.
Sec. 24903. Enhanced small business participation goals
  (a) Enhanced Goals for Designated Industry Groups.--
          (1) Establishment of goals.--A participating agency shall 
        establish an annual small business participation goal that is 
        40 percent of the dollar value of the contract awards for each 
        of the designated industry groups.
          (2) Good faith effort.--In attaining its small business 
        participation goal for contract awards for each of the 
        designated industry groups, a participating agency shall make a 
        good faith effort to ensure that emerging small business 
        concerns are awarded not less than 15 percent of the dollar 
        value of the contract awards for each of the designated 
        industry groups.
  (b) Special Assistance for Emerging Small Business Concerns.--
          (1) Small business reserve.--All contract opportunities in 
        the designated industry groups shall be reserved for exclusive 
        competition among emerging small business concerns in 
        accordance with the competition standard specified in section 
        25108 of this title if the estimated award value of the 
        contract is equal to or less than the greater of--
                  (A) $25,000; or
                  (B) such larger dollar amount as may be established 
                under paragraph (2).
          (2) Adjustments to the small business reserve.--If the goal 
        of awarding emerging small business concerns 15 percent of the 
        total dollar value of contracts in a designated industry group 
        is determined not to have been attained, on the review of award 
        data conducted in accordance with subsection (d)(1), the 
        Administrator for Federal Procurement Policy, to ensure 
        attainment of the goal, shall prescribe, on a semiannual basis, 
        appropriate adjustments to the dollar threshold for contract 
        opportunities in that designated industry group below which 
        competition shall be conducted exclusively among emerging small 
        business concerns.
          (3) Small business small purchase reserve.--The requirements 
        of this subsection dealing with the reserve amount shall apply 
        notwithstanding the amount specified in section 25108 of this 
        title.
          (4) Exclusion of modifications to existing contracts above 
        the small purchase threshold.--Any modification or follow-on 
        award to a contract having an initial award value in excess of 
        $25,000 shall not be subject to the limitations on competition 
        required by this subsection.
  (c) Targeting of Industry Groups With Limited Small Business 
Participation.--
          (1) In general.--The head of a participating agency shall 
        implement a program to expand small business participation in 
        the participating agency's acquisition of selected products and 
        services in 10 industry groups (other than the designated 
        industry groups) that have historically demonstrated low rates 
        of small business participation.
          (2) Development.--The products and services to be targeted 
        for the small business participation expansion program and the 
        special goals for the program--
                  (A) shall be developed in conjunction with the 
                Administrator; and
                  (B) shall be subject to the requirements of section 
                25106 of this title.
          (3) Products and services.--The products and services 
        selected for the small business participation expansion program 
        shall be drawn from industry groups that--
                  (A) are the recipients of substantial purchases by 
                the Federal Government;
                  (B) have less than 10 percent of such annual 
                purchases made from small business concerns; and
                  (C) have significant amounts of small business 
                productive capacity that have not been utilized by the 
                Government.
          (4) Requirements.--In developing its small business 
        participation expansion program, a participating agency shall--
                  (A) provide the Administrator a detailed, time-phased 
                strategy that includes incremental numerical goals; and
                  (B) encourage and promote joint ventures, teaming 
                agreements, and other similar arrangements that permit 
                small business concerns to compete effectively for 
                contract solicitations for which an individual small 
                business concern would lack the requisite capacity or 
                capability needed to establish responsibility for the 
                award of a contract.
  (d) Monitoring of Participating Agency Performance.--
          (1) In general.--A participating agency shall monitor the 
        attainment of its small business participation goals on an 
        annual basis. An annual review by each participating agency 
        shall be completed not later than January 31 of each year, 
        based on the data for the preceding fiscal year, from October 1 
        through September 30.
          (2) Counting of awards.--All awards to small business 
        concerns shall be counted toward attainment of the goals 
        specified in subsection (a).
          (3) Modifications.--If an annual review discloses that the 
        rate of small business participation is less than 40 percent of 
        the contract awards for a fiscal year, modifications to a 
        participating agency's solicitation practices under section 
        24904(b) of this title shall be made at the beginning of the 
        fiscal year quarter following the review.
Sec. 24904. Procurement procedures
  (a) Full and Open Competition.--
          (1) In general.--Except as provided in subsections (b) and 
        (c), a contract opportunity with an anticipated value of more 
        than $25,000 for the procurement of services from firms in a 
        designated industry group (unless set aside under chapter 233 
        of this title or section 2323 of title 10) shall be solicited 
        on an unrestricted basis if the participating agency has 
        attained its small business participation goal under section 
        24903(a) of this title.
          (2) Waiver of regulatory requirements.--Any regulatory 
        requirements that are inconsistent with paragraph (1) shall be 
        waived.
  (b) Restricted Competition.--
          (1) In general.--If a participating agency fails to attain an 
        enhanced small business participation goal, subsequent 
        contracting opportunities that are in excess of the reserve 
        thresholds specified under section 24903(b) of this title shall 
        be solicited through a competition restricted to eligible small 
        business concerns under section 25101 of this title only at the 
        buying activities of the participating agency that failed to 
        attain the enhanced small business participation goal.
          (2) Resumation of unrestricted competition.--On determining 
        that its contract awards to small business concerns again meet 
        an enhanced small business participation goal, a participating 
        agency shall promptly resume the use of unrestricted 
        solicitations under subsection (a).
          (3) Timing.--A modification in the solicitation practices of 
        a participating agency under this subsection shall be made as 
        soon as practicable, but not later than the beginning of the 
        quarter following completion of the review made under section 
        24903(d) of this title indicating that a modification to the 
        solicitation practices is required.
  (c) Relationship to Other Law.--
          (1) Competition in contracting act of 1984.--Subsections (a) 
        and (b) do not supersede the application of the Competition in 
        Contracting Act of 1984 (98 Stat. 1175) (including the 
        amendments made by that Act).
          (2) Other applicable law.--A solicitation for the award of a 
        contract for architectural or engineering service (including 
        surveying and mapping) issued by a military department or a 
        Defense agency shall comply with the requirements of 
        subsections (a) and (b) of section 2855 of title 10.
Sec. 24905. Reporting and collection of data
  (a) Awards of $25,000 or Less.--An award of $25,000 or less made by a 
participating agency for the procurement of a service in any designated 
industry group shall be reported to the Federal Procurement Data Center 
in the same manner as if the purchase were in excess of $25,000.
  (b) Size and Status of Small Business Concerns.--A participating 
agency shall collect data pertaining to the size of the small business 
concern and the status of the small business concern (as a small 
business concern owned and controlled by socially and economically 
disadvantaged individuals) that receives any award for the procurement 
of--
          (1) a service in any designated industry group; or
          (2) a product or service from an industry group selected for 
        participation in the program under section 24903(c) of this 
        title.
Sec. 24906. Test plan and policy direction
  (a) Test Plan.--The Administrator for Federal Procurement Policy may 
further specify the manner and conduct of the test activities required 
by this chapter through a test plan issued under section 15 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 413).
  (b) Policy Direction.--The Administrator for Federal Procurement 
Policy, in cooperation with the Administrator, shall issue a policy 
directive (which shall be binding on all participating agencies) to 
ensure consistent Governmentwide implementation of this chapter in the 
Federal Acquisition Regulation.

               DIVISION G--CONTRACT RESERVATION PROGRAMS

                    CHAPTER 251--GENERAL PROVISIONS

Sec.
25101.  Awards of contracts to small business concerns.
25102.  Placement of contracts by procuring agency.
25103.  Disabled individuals.
25104.  Priority for areas of concentrated unemployment or 
          underemployment and for labor surplus areas.
25105.  Procurement strategies; contract bundling.
25106.  Goals for participation by small business concerns in 
          procurement contracts.
25107.  No effect on certain small business setasides.
25108.  Mandatory contract reservation.
25109.  Offices of Small and Disadvantaged Business Utilization.
25110.  Breakout procurement center representatives.
25111.  Department of Defense, Coast Guard, and National Aeronautics and 
          Space Administration contract goals.
25112.  Actions by procurement center representatives to ensure 
          compliance.
25113.  Percentages of contract performance.
Sec. 25101. Awards of contracts to small business concerns
  (a) In General.--Subject to subsection (b), a small business concern 
shall receive any award or contract (or any part of an award or 
contract), and be awarded any contract for the sale of Government 
property, as to which the Administrator and the contracting procurement 
or disposal agency determine it to be in the interest of--
          (1) maintaining or mobilizing the Nation's full productive 
        capacity;
          (2) war or national defense programs;
          (3) ensuring that a fair proportion of the total purchases 
        and contracts for property and services for the Government in 
        each industry category are placed with small business concerns; 
        or
          (4) ensuring that a fair proportion of the total sales of 
        Government property be made to small business concerns.
  (b) No Change in Preferences or Priorities.--Nothing in this subtitle 
changes any preference or priority established by law with respect to 
the sale of electric power or other property by the Government or any 
Government agency.
  (c) Determinations.--A determination under subsection (a) may be made 
for individual awards or contracts or for classes of awards or 
contracts.
  (d) Industry Categories.--
          (1) In general.--For purposes of subsection (a)(3), an 
        industry category is a discrete group of similar goods and 
        services.
          (2) Determination.--A discrete group of similar goods and 
        services shall be determined by the Administrator in accordance 
        with the definition of a United States industry under the North 
        American Industry Classification System, as established by the 
        Office of Management and Budget, except that the Administrator 
        shall limit such an industry category to a greater extent than 
        provided under the North American Industry Classification 
        System if the Administrator receives evidence indicating that 
        further segmentation for purposes of subsection (a)(3) is 
        warranted due to special capital equipment needs or special 
        labor or geographic requirements or to recognize a new 
        industry.
          (3) Limitation.--A market for goods or services may not be 
        segmented under paragraph (2) due to geographic requirements 
        unless--
                  (A) the Government typically designates the area 
                where work for contracts for such goods or services is 
                to be performed;
                  (B) Government purchases comprise the major portion 
                of the entire domestic market for such goods or 
                services; and
                  (C) due to the fixed location of facilities, high 
                mobilization costs, or similar economic factors, it is 
                unreasonable to expect competition from business 
                concerns located outside the general areas where the 
                business concerns are located.
          (4) Segmentation of industry category of shipbuilding and 
        ship repair.--The Administrator shall segment the industry 
        category of shipbuilding and ship repair as follows:
                  (A) Nuclear shipbuilding and repair.
                  (B) Non-nuclear shipbuilding.
                  (C) Non-nuclear ship repair, which shall be further 
                segmented by, at least, east coast and west coast 
                facilities.
  (e) Avoidance of Contract Bundling.--To foster the participation of 
small business concerns in the contracting opportunities of the 
Government, a Federal agency, to the maximum extent practicable, 
shall--
          (1) foster the participation of small business concerns as 
        prime contractors, subcontractors, and suppliers;
          (2) structure its contracting requirements to facilitate 
        competition by and among small business concerns, taking all 
        reasonable steps to eliminate obstacles to participation by 
        small business concerns; and
          (3) avoid unnecessary and unjustified bundling of contract 
        requirements that precludes participation by small business in 
        procurements as prime contractors.
  (f) Proposed Procurements That Make Participation by Small Business 
Concerns Unlikely.--
          (1) Notification of small business procurement center 
        representative.--If--
                  (A)(i) a proposed procurement includes in its 
                statement of work a good or service currently being 
                performed by a small business concern; and
                  (ii) the proposed procurement is in a quantity or 
                estimated dollar value the magnitude of which renders 
                prime contract participation by small business concerns 
                unlikely;
                  (B) a proposed procurement for construction seeks to 
                package or consolidate discrete construction projects; 
                or
                  (C) a solicitation involves an unnecessary or 
                unjustified bundling of contract requirements, as 
                determined by the Administrator;
        the procurement activity shall, at least 30 days before 
        issuance of the solicitation, provide to the procurement 
        activity's small business procurement center representative a 
        copy of the proposed procurement and a statement of 
        explanation.
          (2) Contents of statement of explanation.--A statement of 
        explanation under paragraph (1) shall explain--
                  (A) why the proposed acquisition cannot be divided 
                into reasonably small lots (not less than economic 
                production runs) to permit offers on quantities less 
                than the total requirement;
                  (B) why delivery schedules cannot be established on a 
                realistic basis that will encourage participation by 
                small business concerns to the extent consistent with 
                the actual requirements of the Government;
                  (C) why the proposed acquisition cannot be offered so 
                as to make participation by small business concerns 
                likely;
                  (D) why construction cannot be procured as separate 
                discrete projects; or
                  (E) why the procurement activity determined that the 
                bundled contract is necessary and justified.
          (3) Concurrent process.--The 30-day notification process 
        shall occur concurrently with other processing steps required 
        before issuance of the solicitation.
          (4) Alternative procurement methods.--Within 15 days after 
        receipt of the proposed procurement and statement of 
        explanation, if the procurement center representative believes 
        that the procurement as proposed will render prime contract 
        participation by small business concerns unlikely, the 
        procurement center representative shall recommend to the 
        procurement activity alternative procurement methods that would 
        increase prime contracting opportunities for small business 
        concerns.
          (5) Failure to agree.--If the Administrator and the 
        contracting procurement agency fail to agree, the Administrator 
        shall appeal the matter to the head of the appropriate Federal 
        agency for determination.
  (g) Fair Market Price.--A contract may not be awarded under this 
section if the award of the contract would result in a cost to the 
procurement activity that exceeds a fair market price.
Sec. 25102. Placement of contracts by procuring agency
  With respect to any work to be performed the amount of which would 
exceed the maximum amount of a contract for which a surety may be 
guaranteed against loss under section 32102 of this title, the 
contracting procurement agency shall, to the extent practicable, place 
contracts so as to allow more than one small business concern to 
perform the work.
Sec. 25103. Disabled individuals
  (a) Definition of Committee.--In this section, the term ``Committee'' 
means the Committee for Purchase From People Who Are Blind or Severely 
Disabled established under the first section of the Act of June 25, 
1938 (41 U.S.C. 46).
  (b) Participation.--
          (1) In general.--During fiscal year 1995, public or private 
        organizations for the disabled shall be eligible to participate 
        in programs authorized under this chapter in an aggregate 
        amount not to exceed $40,000,000.
          (2) Procurement list.--None of the amounts authorized for 
        participation by paragraph (1) may be placed on the procurement 
        list maintained by the Committee under section 2 of the Act of 
        June 25, 1938 (41 U.S.C. 47).
  (c) Monitoring and Evaluation.--The Administrator shall monitor and 
evaluate participation under subsection (b).
  (d) Appeal.--
          (1) Filing.--Not later than 10 days after the announcement of 
        a proposed award of a contract by a Federal agency to a public 
        or private organization for the disabled, a for-profit small 
        business concern that has experienced or is likely to 
        experience severe economic injury as the result of the proposed 
        award may file an appeal of the proposed award with the 
        Administrator.
          (2) Alleviation of injury.--If a small business concern files 
        an appeal of a proposed award under paragraph (1) and the 
        Administrator, after consultation with the Executive Director 
        of the Committee, finds that the small business concern has 
        experienced or is likely to experience severe economic injury 
        as the result of the proposed award, not later than 30 days 
        after the filing of the appeal, the Administrator shall require 
        each Federal agency having procurement powers to take such 
        action as is appropriate to alleviate economic injury sustained 
        or likely to be sustained by the small business concern.
  (e) Maximum Amount of Awards.--
          (1) Reporting.--A Federal agency having procurement powers 
        shall report to the Office of Federal Procurement Policy each 
        time a contract subject to subsection (b) is entered into and 
        shall include in its report the amount of the next higher bid 
        submitted by a for-profit small business concern.
          (2) Data collection.--The Office of Federal Procurement 
        Policy shall collect data reported under paragraph (1) through 
        the Federal procurement data system and shall report the data 
        to the Administrator.
          (3) Notification.--The Administrator shall notify all Federal 
        agencies having procurement powers when the maximum amount of 
        awards authorized under subsection (b) has been made during any 
        fiscal year.
  (f) Contract Performance by Disabled Individuals.--A contract may be 
awarded under this section only if at least 75 percent of the direct 
labor performed on each item being produced under the contract in a 
sheltered workshop or performed in providing each type of service under 
the contract by a sheltered workshop is performed by disabled 
individuals.
  (g) Multiyear Contracts.--A Federal agency that awards one or more 
contracts to such a public or private organization for the disabled 
under this section may use multiyear contracts, if appropriate.
Sec. 25104. Priority for areas of concentrated unemployment or 
                    underemployment and for labor surplus areas
  (a) In General.--For purposes of this chapter, priority shall be 
given to the awarding of contracts and the placement of subcontracts to 
small business concerns that shall perform a substantial proportion of 
the production on the contracts and subcontracts in--
          (1) an area of concentrated unemployment or underemployment; 
        or
          (2) a labor surplus area.
  (b) Setasides.--
          (1) In general.--Notwithstanding any other provision of law, 
        total labor surplus area setasides under part 331 of title 44, 
        Code of Federal Regulations (or any successor regulation), 
        shall be authorized if the Secretary of Defense specifically 
        determines that there is a reasonable expectation that offers 
        will be obtained from a sufficient number of eligible concerns 
        so that awards will be made at reasonable prices.
          (2) Determination of labor surplus areas.--
                  (A) Consideration of persons available for 
                employment.--To the extent possible, in determining 
                labor surplus areas, consideration shall be given to 
                persons who would be available for employment were 
                suitable employment available.
                  (B) Criteria in effect.--For purposes of this 
                chapter, the determination of a labor surplus area 
                shall be made on the basis of the criteria in effect at 
                the time of the determination, except that any minimum 
                population criteria shall not exceed 25,000.
                  (C) Determination by secretary of labor.--A 
                determination of a labor surplus area shall be made by 
                the Secretary of Labor.
Sec. 25105. Procurement strategies; contract bundling
  (a) In General.--To the maximum extent practicable, procurement 
strategies used by a Federal agency having contracting authority shall 
facilitate the maximum participation of small business concerns as 
prime contractors, subcontractors, and suppliers.
  (b) Market Research.--
          (1) In general.--Before proceeding with an acquisition 
        strategy that could lead to a contract containing consolidated 
        procurement requirements, the head of a Federal agency shall 
        conduct market research to determine whether consolidation of 
        the requirements is necessary and justified.
          (2) Factors.--For purposes of paragraph (1), consolidation of 
        the requirements may be determined as being necessary and 
        justified if, as compared with the benefits that would be 
        derived from contracting to meet those requirements if not 
        consolidated, the Federal Government would derive from the 
        consolidation measurably substantial benefits, including any 
        combination of benefits that, in combination, are measurably 
        substantial.
          (3) Benefits.--Benefits described in paragraph (2) may 
        include--
                  (A) cost savings;
                  (B) quality improvements;
                  (C) reduction in acquisition cycle times;
                  (D) better terms and conditions; or
                  (E) any other benefit.
          (4) Reduction of administrative or personnel costs not a 
        sufficient justification.--A reduction of administrative or 
        personnel costs alone shall not be a justification for bundling 
        of contract requirements unless the cost savings are expected 
        to be substantial in relation to the dollar value of the 
        procurement requirements to be consolidated.
  (c) Strategy Specifications.--If the head of a procuring agency 
determines that a proposed procurement strategy for a procurement 
involves a substantial bundling of contract requirements, the proposed 
procurement strategy shall--
          (1) identify specifically the benefits anticipated to be 
        derived from the bundling of contract requirements;
          (2) set forth an assessment of the specific impediments to 
        participation by small business concerns as prime contractors 
        that result from the bundling of contract requirements and 
        specify actions designed to maximize small business 
        participation as subcontractors (including suppliers) at 
        various tiers under the contract or contracts that are awarded 
        to meet the requirements; and
          (3) include a specific determination that the anticipated 
        benefits of the proposed bundled contract justify its use.
  (d) Contract Teaming.--
          (1) In general.--In the case of a solicitation of offers for 
        a bundled contract that is issued by the head of a Federal 
        agency, a small business concern may submit an offer that 
        provides for use of a particular team of subcontractors for the 
        performance of the contract.
          (2) Evaluation.--The head of the Federal agency shall 
        evaluate the offer in the same manner as other offers, with due 
        consideration to the capabilities of all of the proposed 
        subcontractors.
          (3) No effect on status as small business concern.--Teaming 
        by a small business concern under this subsection shall not 
        affect the status of the small business concern as a small 
        business concern for any other purpose.
  (e) Database and Analysis With Respect to Bundled Contracts.--
          (1) Database.--The Administrator shall maintain a database 
        containing information regarding--
                  (A) each bundled contract awarded by a Federal 
                agency; and
                  (B) each small business concern that has been 
                displaced as a prime contractor as a result of the 
                award of a bundled contract.
          (2) Analysis.--For each bundled contract that is to be 
        recompeted as a bundled contract, the Administrator shall 
        determine--
                  (A) the amount of savings and benefits (in accordance 
                with subsection (b)) achieved under the bundling of 
                contract requirements; and
                  (B) whether such savings and benefits will continue 
                to be realized if the contract remains bundled, and 
                whether such savings and benefits would be greater if 
                the procurement requirements were divided into separate 
                solicitations suitable for award to small business 
                concerns.
          (3) Access to data.--
                  (A) Federal procurement data system.--To assist in 
                the implementation of this subsection and section 10706 
                of this title, the Administrator shall have access to 
                information collected through the Federal Procurement 
                Data System.
                  (B) Agency procurement data sources.--To assist in 
                the implementation of this subsection and section 10706 
                of this title, the head of each procuring agency shall 
                provide, on request of the Administrator, procurement 
                information collected through existing agency data 
                collection sources.
Sec. 25106.  Goals for participation by small business concerns in 
                    procurement contracts
  (a) Governmentwide Goals.--
          (1) In general.--The President shall annually establish 
        Governmentwide goals for procurement contracts awarded to small 
        business concerns (including qualified HUBZone small business 
        concerns, small business concerns owned and controlled by 
        service-disabled veterans, small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals, small business concerns owned and controlled by 
        women, and other small business concerns).
          (2) Overall goal.--The overall Governmentwide goal for 
        participation by small business concerns shall be established 
        at not less than 23 percent of the total value of all prime 
        contract awards for each fiscal year.
          (3) Goals for specific types of small business concern.--
                  (A) Qualified hubzone small business concerns.--The 
                Governmentwide goal for participation by qualified 
                HUBZone small business concerns shall be established at 
                not less than 3 percent of the total value of all prime 
                contract awards for each fiscal year.
                  (B) Small business concerns owned and controlled by 
                service-disabled veterans.--The Governmentwide 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.
                  (C) Small business concerns owned and controlled by 
                socially and economically disadvantaged individuals.--
                The Governmentwide goal for participation by small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals shall be 
                established at not less than 5 percent of the total 
                value of all prime contract and subcontract awards for 
                each fiscal year.
                  (D) Small business concerns owned and controlled by 
                women.--The Governmentwide goal for participation by 
                small business concerns owned and controlled by women 
                shall be established at not less than 5 percent of the 
                total value of all prime contract and subcontract 
                awards for each fiscal year.
          (4) Federal agency goals.--
                  (A) In general.--Notwithstanding the Governmentwide 
                goal, each Federal agency shall have an annual goal 
                that presents, for that Federal agency, the maximum 
                practicable opportunity for small business concerns 
                (including qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals, small business concerns 
                owned and controlled by women, and other small business 
                concerns) to participate in the performance of 
                contracts let by the Federal agency.
                  (B) Cumulative federal agency goals to meet or exceed 
                governmentwide goal.--The Administrator and the 
                Administrator of the Office of Federal Procurement 
                Policy shall, when exercising authority under 
                subsection (b), ensure that the cumulative annual prime 
                contract goals for all Federal agencies meet or exceed 
                the annual Governmentwide prime contract goal 
                established by the President under this subsection.
          (5) Procurement procedures.--
                  (A) In general.--To facilitate the attainment of a 
                goal for the participation of small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals that is established for a 
                Federal agency under this subsection, the head of the 
                Federal agency may enter into contracts using--
                          (i) less than full and open competition by 
                        restricting the competition for such awards to 
                        small business concerns owned and controlled by 
                        socially and economically disadvantaged 
                        individuals; and
                          (ii) a price evaluation preference not in 
                        excess of 10 percent when evaluating an offer 
                        received from a small business concern owned 
                        and controlled by socially and economically 
                        disadvantaged individuals as the result of an 
                        unrestricted solicitation.
                  (B) Applicability.--Subparagraph (A) does not apply 
                to the Department of Defense, the Coast Guard, or the 
                National Aeronautics and Space Administration.
                  (C) Implementation through the federal acquisition 
                regulation.--
                          (i) In general.--The Federal Acquisition 
                        Regulation shall provide for uniform 
                        implementation of the authority provided in 
                        subparagraph (A).
                          (ii) Matters to be addressed.--The provisions 
                        of the Federal Acquisition Regulation under 
                        clause (i) shall include--
                                  (I) conditions for the use of advance 
                                payments;
                                  (II) provisions for contract payment 
                                terms that provide for--
                                          (aa) accelerated payment for 
                                        work performed during the 
                                        period for contract 
                                        performance; and
                                          (bb) full payment for work 
                                        performed;
                                  (III) guidance on how contracting 
                                officers may use, in solicitations for 
                                various classes of products or 
                                services, a price evaluation preference 
                                under subparagraph (A)(ii), to provide 
                                a reasonable advantage to small 
                                business concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals without 
                                effectively eliminating any 
                                participation of other small business 
                                concerns; and
                                  (IV)(aa) procedures for a person to 
                                request the head of a Federal agency to 
                                determine whether the use of 
                                competitions restricted to small 
                                business concerns owned and controlled 
                                by socially and economically 
                                disadvantaged individuals at a 
                                contracting activity of the Federal 
                                agency has caused a particular industry 
                                category to bear a disproportionate 
                                share of the contracts awarded to 
                                attain the goal established for that 
                                contracting activity; and
                                  (bb) guidance for limiting the use of 
                                such restricted competitions in the 
                                case of any contracting activity and 
                                class of contracts determined in 
                                accordance with such procedures to have 
                                caused a particular industry category 
                                to bear a disproportionate share of the 
                                contracts awarded to attain the goal 
                                established for that contracting 
                                activity.
                  (D) Termination.--This paragraph shall cease to be 
                effective at the end of September 30, 2003.
  (b) Federal Agency Goals.--
          (1) In general.--The Administrator and the head of each 
        Federal agency shall jointly establish goals for the 
        participation by small business concerns (including qualified 
        HUBZone small business concerns, small business concerns owned 
        and controlled by service-disabled veterans, small business 
        concerns owned and controlled by socially and economically 
        disadvantaged individuals, small business concerns owned and 
        controlled by women, and other small business concerns) in 
        procurement contracts of the Federal agency.
          (2) Requirements.--The goals of a Federal agency established 
        under paragraph (1) shall--
                  (A) present, for that Federal agency, the maximum 
                practicable opportunity for small business concerns 
                (including qualified HUBZone small business concerns, 
                small business concerns owned and controlled by 
                service-disabled veterans, small business concerns 
                owned and controlled by socially and economically 
                disadvantaged individuals, small business concerns 
                owned and controlled by women, and other small business 
                concerns) to participate in the performance of 
                contracts let by the Federal agency; and
                  (B) realistically reflect the potential of qualified 
                HUBZone small business concerns, small business 
                concerns owned and controlled by service-disabled 
                veterans, small business concerns owned and controlled 
                by socially and economically disadvantaged individuals, 
                small business concerns owned and controlled by women, 
                and other small business concerns to perform such 
                contracts and to perform subcontracts under such 
                contracts.
          (3) Disagreement.--If the Administrator and the head of a 
        Federal agency fail to agree on established goals, the 
        disagreement shall be submitted to the Administrator for 
        Federal Procurement Policy for final determination.
          (4) Expansion of participation.--
                  (A) In general.--For the purpose of establishing 
                goals under this section, the head of a Federal agency 
                shall make consistent efforts to annually expand 
                participation by small business concerns from each 
                industry category in procurement contracts of the 
                agency, including participation by qualified HUBZone 
                small business concerns, small business concerns owned 
                and controlled by service-disabled veterans, small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals, and small 
                business concerns owned and controlled by women.
                  (B) Considerations.--The head of a Federal agency, in 
                attempting to attain such participation, shall 
                consider--
                          (i) contracts awarded as the result of 
                        unrestricted competition; and
                          (ii) contracts awarded after competition 
                        restricted to eligible small business concerns 
                        under this chapter and under the business 
                        development program.
  (c) Reporting by Federal Agencies.--
          (1) In general.--At the end of each fiscal year, the head of 
        a Federal agency shall submit to the Administrator a report on 
        the extent of participation by small business concerns 
        (including qualified HUBZone small business concerns, small 
        business concerns owned and controlled by service-disabled 
        veterans, small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, small 
        business concerns owned and controlled by veterans, small 
        business concerns owned and controlled by women, and other 
        small business concerns) in procurement contracts of the 
        Federal agency.
          (2) Contents.--A report under paragraph (1) shall contain 
        appropriate justifications for failure to meet the goals under 
        this section.
Sec. 25107. No effect on certain small business setasides
  (a) In General.--Nothing in this chapter or any other provision of 
law precludes exclusive small business setasides for procurements of 
architectural and engineering services, research, development, test, 
and evaluation.
  (b) Authority.--A Federal agency may develop setasides described in 
subsection (a) to further the interests of small business in the areas 
described in that subsection.
Sec. 25108. Mandatory contract reservation
  (a) In General.--A contract for the purchase of a good or service 
that has an anticipated value greater than $2,500 but not greater than 
$100,000 shall be reserved exclusively for small business concerns 
unless the contracting officer is unable to obtain offers from 2 or 
more small business concerns that are--
          (1) competitive with market prices; and
          (2) competitive with regard to the quality and delivery of 
        the good or service being purchased.
  (b) Consideration of Timely Offers.--In carrying out subsection (a), 
a contracting officer shall consider a responsive offer timely received 
from an eligible small business concern offeror.
  (c) Effect of Section.--Nothing in this section precludes an award of 
a contract with a value not greater than $100,000 under--
          (1) division B of this subtitle;
          (2) section 2323 of title 10;
          (3) section 24903 of this title; or
          (4) section 25106(a)(4) of this title.
Sec. 25109. Offices of Small and Disadvantaged Business Utilization
  (a) Definitions.--In this section:
          (1) Director.--The term ``Director'' means the Director of 
        Small and Disadvantaged Business Utilization of a Federal 
        agency appointed under subsection (c).
          (2) Office.--The term ``Office'' means the Office of Small 
        and Disadvantaged Business Utilization of a Federal agency 
        established by subsection (b).
  (b) Establishment of Offices.--There is established in each Federal 
agency having procurement powers an office to be known as the Office of 
Small and Disadvantaged Business Utilization.
  (c) Director.--
          (1) In general.--The management of an Office shall be vested 
        in an officer or employee of the Federal agency, appointed by 
        the head of the Federal agency, who shall be known as the 
        Director of Small and Disadvantaged Business Utilization for 
        the Federal agency.
          (2) Line of authority.--The Director for a Federal agency 
        shall be responsible only to, and report directly to, the head 
        or deputy head of the Federal agency, except that the Director 
        in the Department of Defense shall be responsible only to, and 
        report directly to, the Secretary of Defense or any other 
        designee of the Secretary.
  (d) General Responsibilities.--The Director for a Federal agency 
shall be responsible for the implementation and execution of the 
functions and duties under this chapter and divisions E and F that 
relate to the Federal agency.
  (e) Duties.--The Director for a Federal agency shall--
          (1)(A) identify proposed solicitations that involve 
        significant bundling of contract requirements; and
          (B) work with the agency acquisition officials and the 
        Administrator to revise the procurement strategies for such 
        proposed solicitations where appropriate to increase the 
        probability of participation by small business concerns as 
        prime contractors or to facilitate small business concern 
        participation as subcontractors and suppliers, if a 
        solicitation for a bundled contract is to be issued; and
          (2) assist small business concerns in obtaining payments, 
        required late payment interest penalties, or information 
        regarding payments due to small business concerns from an 
        executive agency or a contractor, in conformity with chapter 39 
        of title 31 or any other protection for contractors or 
        subcontractors (including suppliers) that is included in the 
        Federal Acquisition Regulation or any individual agency 
        supplement to the Governmentwide regulation.
  (f) Supervisory Authority.--The Director for a Federal agency shall 
have supervisory authority over personnel of the Federal agency to the 
extent that the functions and duties of those personnel relate to 
functions and duties under this chapter and divisions E and F.
  (g) Small Business Technical Advisers.--
          (1) Assignment.--The Director for a Federal agency shall 
        assign a small business technical adviser to each office to 
        which the Administrator assigns a procurement center 
        representative.
          (2) Qualifications.--A small business technical adviser--
                  (A) shall be a full-time employee of the procurement 
                activity; and
                  (B) shall be well qualified, technically trained, and 
                familiar with the goods or services purchased at the 
                procurement activity.
          (3) Principal duty.--The principal duty of a small business 
        technical adviser shall be to assist the Administration 
        procurement center representative in carrying out duties and 
        functions relating to this chapter and divisions E and F.
  (h) Cooperation and Consultation.--The Director for a Federal agency 
shall cooperate, and consult on a regular basis, with the Administrator 
with respect to carrying out the functions and duties described in 
subsection (d).
  (i) Recommendations Concerning Award of Contracts.--
          (1) In general.--The Director for a Federal agency shall make 
        recommendations to contracting officers concerning whether a 
        particular contract requirement should be awarded pursuant to 
        section 25101 of this title, division E of this subtitle, or 
        section 2323 of title 10.
          (2) Considerations.--A recommendation under paragraph (1) 
        shall be made with due regard to the requirements of sections 
        25111 and 25112 of this title.
          (3) Documentation of failure to accept recommendation.--The 
        failure of a contracting officer to accept a recommendation 
        under paragraph (1) shall be documented and included within the 
        appropriate contract file.
  (j) Applicability of Section.--This section does not apply to the 
Administration.
Sec. 25110. Breakout procurement center representatives
  (a) Definition of Major Procurement Center.--In this section, the 
term ``major procurement center'' means a procurement center that--
          (1) in the opinion of the Administrator, purchases 
        substantial dollar amounts of other than commercial items; and
          (2) has the potential to incur significant savings as the 
        result of the assignment of a breakout procurement center 
        representative.
  (b) Assignment of Breakout Procurement Center Representatives.--
          (1) In general.--The Administration shall assign to each 
        major procurement center a breakout procurement center 
        representative with such assistance as may be appropriate.
          (2) Additional position.--A breakout procurement center 
        representative shall be in addition to the procurement center 
        representative referred to in section 25109(g)(1) of this 
        title.
  (c) Advocacy.--A breakout procurement center representative shall be 
an advocate for--
          (1) the breakout of items for procurement through full and 
        open competition, whenever appropriate, while maintaining the 
        integrity of the system in which items are used; and
          (2) the use of full and open competition, whenever 
        appropriate, for the procurement of goods and services by a 
        major procurement center.
  (d) Functions.--In addition to carrying out the responsibilities 
assigned by the Administrator, a breakout procurement center 
representative may--
          (1)(A) attend any provisioning conference or similar 
        evaluation session during which determinations are made 
        concerning whether requirements are to be procured through 
        other than full and open competition; and
          (B) make recommendations with respect to those requirements 
        to the members of the conference or session;
          (2)(A) review, at any time, restrictions on competition 
        previously imposed on items through acquisition method coding 
        or similar procedures; and
          (B) recommend to personnel of the appropriate activity the 
        prompt reevaluation of such limitations;
          (3)(A) review restrictions on competition arising out of 
        restrictions on the rights of the United States in technical 
        data; and
          (B) when appropriate, recommend that personnel of the 
        appropriate activity initiate a review of the validity of such 
        an asserted restriction;
          (4) obtain from any governmental source, and make available 
        to personnel of the appropriate activity, technical data 
        necessary for the preparation of a competitive solicitation 
        package for any item of a good or service previously procured 
        noncompetitively due to the unavailability of such technical 
        data;
          (5) have access to procurement records and other data of the 
        major procurement center commensurate with the level of the 
        breakout procurement center representative's approved security 
        clearance classification;
          (6)(A) receive unsolicited engineering proposals; and
          (B) when appropriate--
                  (i)(I) conduct a value analysis of a proposal to 
                determine whether the proposal, if adopted, will result 
                in lower costs to the United States without 
                substantially impeding legitimate acquisition 
                objectives; and
                  (II) forward to personnel of the appropriate activity 
                recommendations with respect to the proposal; or
                  (ii) forward a proposal without analysis to personnel 
                of the activity responsible for reviewing such 
                proposals, which personnel shall furnish the breakout 
                procurement center representative with information 
                regarding the disposition of the proposal; and
          (7) review the systems that account for the acquisition and 
        management of technical data within the major procurement 
        center to ensure that the systems provide the maximum 
        availability and access to data that--
                  (A) are needed for the preparation of offers to sell 
                to the United States the goods and services to which 
                the data pertain; and
                  (B) potential offerors are entitled to receive.
  (e) Appeal of Failure To Act Favorably on Recommendation.--
          (1) In general.--A breakout procurement center representative 
        may appeal the failure to act favorably on any recommendation 
        made under subsection (d).
          (2) Procedure.--An appeal under paragraph (1) shall be filed 
        and processed in the same manner and shall be subject to the 
        same conditions and limitations as an appeal filed by the 
        Administrator under section 25101(f)(5) of this title.
  (f) Small Business Technical Advisers.--
          (1) In general.--The Administrator shall assign and co-locate 
        at least 2 small business technical advisers to each major 
        procurement center in addition to such other advisers as may be 
        authorized from time to time.
          (2) Duties.--The sole duties of small business technical 
        advisers assigned under paragraph (1) shall be--
                  (A) to assist the breakout procurement center 
                representative for the center to which the small 
                business technical advisers are assigned in carrying 
                out the functions described in subsection (d); and
                  (B) to assist the procurement center representative 
                for each office to which the Administrator assigns a 
                procurement center representative.
  (g) Status; Qualifications.--
          (1) In general.--A breakout procurement center representative 
        and a small business technical adviser--
                  (A) shall be full-time employees of the 
                Administration; and
                  (B) shall be fully qualified, technically trained, 
                and familiar with the goods and services procured by 
                the major procurement center to which the individual is 
                assigned.
          (2) Accredited engineer.--In addition to the requirements of 
        paragraph (1), a breakout procurement center representative and 
        at least one small business technical adviser assigned under 
        this section shall be accredited engineers.
  (h) Personnel Positions.--The Administrator shall establish personnel 
positions for breakout procurement representatives and small business 
technical advisers assigned under this section that are classified at a 
grade level of the General Schedule sufficient to attract and retain 
highly qualified personnel.
  (i) Familiarization Sessions.--
          (1) In general.--At such times as the Administrator considers 
        appropriate, a breakout procurement center representative shall 
        conduct familiarization sessions for contracting officers and 
        other appropriate personnel of the major procurement center to 
        which the breakout procurement center representative is 
        assigned.
          (2) Purpose.--A familiarization session shall acquaint the 
        participants with, and instruct the participants in methods 
        designed to further the purposes of, this section.
  (j) Briefing and Report.--
          (1) In general.--A breakout procurement center representative 
        shall prepare and personally deliver an annual briefing and 
        report to the head of the major procurement center to which the 
        breakout procurement center representative is assigned.
          (2) Contents.--A briefing and report under paragraph (1) 
        shall--
                  (A) detail the past and planned activities of the 
                breakout procurement center representative; and
                  (B) contain such recommendations for improvement in 
                the operation of the major procurement center as may be 
                appropriate.
          (3) Response.--The head of the major procurement center 
        shall--
                  (A) personally receive the briefing and report; and
                  (B) not later than 60 calendar days after receipt, 
                respond, in writing, to each recommendation made by the 
                breakout procurement center representative.
  (k) Standards for Measuring Cost Savings From Breakout Procurement 
Center Representatives.--The Administrator and the Comptroller General 
shall jointly establish standards for measuring--
          (1) cost savings achieved through the efforts of breakout 
        procurement center representatives; and
          (2) the extent to which competition has been increased as a 
        result of those efforts.
Sec. 25111. Department of Defense, Coast Guard, and National 
                    Aeronautics and Space Administration contract goals
  A Federal agency subject to the requirements of section 2323 of title 
10 shall, when implementing those requirements--
          (1) establish policies and procedures that ensure that there 
        will be no reduction in the number or dollar value of contracts 
        awarded under this chapter or division E to achieve any goal or 
        other program objective; and
          (2) ensure that those requirements will not alter or change 
        the procurement process used to implement this chapter or 
        division E.
Sec. 25112. Actions by procurement center representatives to ensure 
                    compliance
  A procurement center representative assigned under section 25109 or 
25110 of this title, in addition to such other duties as the 
Administrator may assign, shall--
          (1) monitor the performance of the procurement activities to 
        which the procurement center representative is assigned to 
        ascertain the degree of compliance with the requirements of 
        section 25111 of this title;
          (2) report to the procurement center representative's 
        immediate supervisors all instances of noncompliance with those 
        requirements; and
          (3) increase, insofar as possible, the number and dollar 
        value of procurements that may be used for the programs 
        established under this chapter, division E of this subtitle, 
        and section 2323 of title 10.
Sec. 25113. Percentages of contract performance
  (a) In General.--A concern may not be awarded a contract under 
section 25101 of this title as a small business concern unless the 
concern agrees that--
          (1) in the case of a contract for services (except 
        construction), at least 50 percent of the cost of contract 
        performance incurred for personnel shall be expended for 
        employees of the concern;
          (2) in the case of a contract for procurement of goods (other 
        than procurement from a regular dealer in such goods), the 
        concern will perform work for at least 50 percent of the cost 
        of manufacturing the goods (not including the cost of 
        materials).
  (b) Change in Percentage.--The Administrator may change the 
percentage under paragraph (1) or (2) of subsection (a) if the 
Administrator determines that a change is necessary to reflect 
conventional industry practices among business concerns that are below 
the numerical size standard for businesses in that industry category.
  (c) Requirements Applicable to Other Contracts.--The Administrator 
shall establish, through public rulemaking, requirements similar to 
those specified in subsection (a) to be applicable to contracts for 
general and specialty construction and to contracts for any other 
industry category not otherwise subject to the requirements of that 
subsection. The percentage applicable to any such requirement shall be 
determined in accordance with subsection (b).

                      CHAPTER 253--HUBZONE PROGRAM

Sec.
25301.  Definitions.
25302.  Establishment of HUBZone program.
25303.  Sole source contracts.
25304.  Restricted competition.
25305.  Appeal of decision not to award contract.
25306.  Price evaluation preference in full and open competition.
25307.  Relationship to other contracting preferences.
25308.  Verification of eligibility.
25309.  Regulations.
25310.  List of qualified HUBZone small business concerns.
25311.  Penalties.
Sec. 25301. Definitions
  In this chapter:
          (1) Base closure area.--The term ``base closure area'' means 
        land within the external boundaries of a military installation 
        that was closed through a privatization process under--
                  (A) the Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of division B of Public Law 
                101-510; 10 U.S.C. 2687 note);
                  (B) title II of the Defense Authorization Amendments 
                and Base Closure and Realignment Act (Public Law 100-
                526; 10 U.S.C. 2687 note);
                  (C) section 2687 of title 10; or
                  (D) any other provision of law authorizing or 
                directing the Secretary of Defense or the Secretary of 
                a military department to dispose of real property at 
                the military installation for purposes relating to base 
                closures or redevelopment, while retaining the 
                authority to enter into a leaseback of all or a portion 
                of the property for military use.
          (2) Full and open competition.--The term ``full and open 
        competition'' has the meaning given the term in section 4 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 403).
          (3) Historically underutilized business zone.--The term 
        ``historically underutilized business zone'' means an area 
        located within one or more--
                  (A) qualified census tracts;
                  (B) qualified nonmetropolitan counties;
                  (C) areas of land within the external boundaries of 
                an Indian reservation;
                  (D) redesignated areas; or
                  (E) base closure areas (until the date that is 5 
                years after the date of final closure of a base closure 
                area).
          (4) HUBZone.--The term ``HUBZone'' means a historically 
        underutilized business zone.
          (5) HUBZone small business concern.--The term ``HUBZone small 
        business concern'' means--
                  (A) a small business concern that is at least 51 
                percent owned and controlled by United States citizens;
                  (B) a small business concern that is--
                          (i) an Alaska Native Corporation owned and 
                        controlled by Natives (as determined under 
                        section 29(e)(1) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1626(e)(1))); or
                          (ii) a direct or indirect subsidiary 
                        corporation, joint venture, or partnership of 
                        an Alaska Native Corporation qualifying under 
                        section 29(e)(1) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1626(e)(1)), if that 
                        subsidiary, joint venture, or partnership is 
                        owned and controlled by Natives (as determined 
                        under section 29(e)(2) of the Alaska Native 
                        Claims Settlement Act (43 U.S.C. 1626(e)(2)));
                  (C) a small business concern--
                          (i) that is wholly owned by one or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by one or more Indian 
                        tribal governments; or
                          (ii) that is owned in part by one or more 
                        Indian tribal governments, or by a corporation 
                        that is wholly owned by one or more Indian 
                        tribal governments, if all other owners are 
                        either United States citizens or small business 
                        concerns;
                  (D) a small business concern that is--
                          (i) wholly owned by a community development 
                        corporation that has received financial 
                        assistance under part 1 of subchapter A of the 
                        Community Economic Development Act of 1981 (42 
                        U.S.C. 9805 et seq.); or
                          (ii) owned in part by one or more community 
                        development corporations, if all other owners 
                        are either United States citizens or small 
                        business concerns; or
                  (E) a small business concern that is--
                          (i) a small agricultural cooperative 
                        organized or incorporated in the United States;
                          (ii) wholly owned by one or more small 
                        agricultural cooperatives organized or 
                        incorporated in the United States; or
                          (iii) owned in part by one or more small 
                        agricultural cooperatives organized or 
                        incorporated in the United States, if all 
                        owners are small business concerns or United 
                        States citizens.
          (6) Program.--The term ``program'' means the HUBZone program.
          (7) Qualified hubzone small business concern.--
                  (A) In general.--The term ``qualified HUBZone small 
                business concern'' means a small business concern--
                          (i) that certifies in writing to the 
                        Administrator (or with respect to which the 
                        Administrator otherwise determines, based on 
                        information submitted to the Administrator by 
                        the small business concern, or based on 
                        certification procedures established under 
                        section 25309 of this title) that--
                                  (I) it is a HUBZone small business 
                                concern--
                                          (aa) under subparagraph (A), 
                                        (B), (C), (D), or (E) of 
                                        paragraph (5), and its 
                                        principal office is located in 
                                        a HUBZone and not fewer than 35 
                                        percent of its employees reside 
                                        in a HUBZone; or
                                          (bb) under paragraph (5)(C), 
                                        and not fewer than 35 percent 
                                        of its employees engaged in 
                                        performing a contract awarded 
                                        to the small business concern 
                                        on the basis of a preference 
                                        provided under the HUBZone 
                                        program reside within any 
                                        Indian reservation governed by 
                                        one or more of the tribal 
                                        government owners, or reside 
                                        within any HUBZone adjoining 
                                        any such Indian reservation;
                                  (II) the small business concern will 
                                attempt to maintain the applicable 
                                employment percentage under subclause 
                                (I) during the performance of any 
                                contract awarded to the small business 
                                concern on the basis of a preference 
                                provided this chapter; and
                                  (III) with respect to any subcontract 
                                entered into by the small business 
                                concern under a contract awarded to the 
                                small business concern under this 
                                chapter, the small business concern 
                                will ensure that--
                                          (aa) in the case of a 
                                        contract for a service (except 
                                        construction), not less than 50 
                                        percent of the cost of contract 
                                        performance incurred for 
                                        personnel will be expended for 
                                        its employees or for employees 
                                        of other HUBZone small business 
                                        concerns;
                                          (bb) in the case of a 
                                        contract for procurement of a 
                                        supply (other than procurement 
                                        from a regular dealer in the 
                                        supply), not less than 50 
                                        percent of the cost of 
                                        manufacturing the supply (not 
                                        including the cost of material) 
                                        will be incurred in connection 
                                        with the performance of the 
                                        contract in a HUBZone by one or 
                                        more HUBZone small business 
                                        concerns;
                                          (cc) in the case of a 
                                        contract for general or 
                                        specialty construction or a 
                                        contract for any other industry 
                                        category that is not otherwise 
                                        subject to the requirements of 
                                        item (aa) or (bb), the small 
                                        business concern meets 
                                        requirements established by 
                                        regulation under section 
                                        25309(b) of this title; and
                                          (dd) in the case of a 
                                        contract for the procurement by 
                                        the Secretary of Agriculture of 
                                        an agricultural commodity, none 
                                        of the commodity being procured 
                                        will be obtained by the prime 
                                        contractor through a 
                                        subcontract for the purchase of 
                                        the commodity in substantially 
                                        the final form in which it is 
                                        to be supplied to the 
                                        Government; and
                          (ii) with respect to which no certification 
                        made or information provided by the small 
                        business concern under clause (i) has been, in 
                        accordance with the procedures established 
                        under section 25308 of this title--
                                  (I) successfully challenged by an 
                                interested party; or
                                  (II) otherwise determined by the 
                                Administrator to be materially false.
                  (B) Change in percentages.--The Administrator may 
                utilize a percentage other than the percentage 
                specified in item (aa) or (bb) of subparagraph 
                (A)(i)(III) if the Administrator determines that such 
                action is necessary to reflect conventional industry 
                practices among small business concerns that are below 
                the numerical size standard for businesses in that 
                industry category.
          (8) Qualified nonmetropolitan county.--The term ``qualified 
        nonmetropolitan county'' means a county--
                  (A) that was not located in a metropolitan 
                statistical area (as defined in section 143(k)(2)(B) of 
                the Internal Revenue Code of 1986 (26 U.S.C. 
                143(k)(2)(B))) at the time of the most recent census 
                taken for purposes of selecting qualified census tracts 
                under section 42(d)(5)(C)(ii) of the Internal Revenue 
                Code of 1986 (26 U.S.C. 42(d)(5)(C)(ii)); and
                  (B) in which--
                          (i) the median household income is less than 
                        80 percent of the nonmetropolitan State median 
                        household income, based on the most recent data 
                        available from the Bureau of the Census of the 
                        Department of Commerce;
                          (ii) the unemployment rate is not less than 
                        140 percent of the average unemployment rate 
                        for the United States or for the State in which 
                        the county is located, whichever is less, based 
                        on the most recent data available from the 
                        Secretary of Labor; or
                          (iii) there is located a difficult 
                        development area, as designated by the 
                        Secretary of Housing and Urban Development in 
                        accordance with section 42(d)(5)(C)(iii) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)(5)(C)(iii)), within Alaska, Hawaii, or 
                        any territory or possession of the United 
                        States outside the 48 contiguous States.
          (9) Redesignated area.--
                  (A) In general.--Subject to subparagraph (B), the 
                term ``redesignated area'' means--
                          (i) a census tract that was, but ceases to 
                        be, a qualified census tract; and
                          (ii) a nonmetropolitan county that was, but 
                        ceases to be, a qualified nonmetropolitan 
                        county.
                  (B) Limitation.--A census tract or nonmetropolitan 
                county described in subparagraph (A) shall cease to be 
                a redesignated area on the later of--
                          (i) the date on which the Bureau of the 
                        Census publicly releases the first results from 
                        the 2010 decennial census; or
                          (ii) 3 years after the date on which the 
                        census tract or nonmetropolitan county ceases 
                        to be a qualified census tract or qualified 
                        nonmetropolitan county.
Sec. 25302. Establishment of HUBZone program
  There is established within the Administration a program to be 
carried out by the Administrator, to be known as the HUBZone program, 
to provide for Federal contracting assistance to qualified HUBZone 
small business concerns in accordance with this chapter.
Sec. 25303. Sole source contracts
  Notwithstanding any other provision of law, a contracting officer may 
award a sole source contract under the program to a qualified HUBZone 
small business concern if--
          (1) the contracting officer or the Administrator determines 
        that the qualified HUBZone small business concern is a 
        responsible contractor with respect to performance of the 
        contract opportunity;
          (2) the contracting officer does not have a reasonable 
        expectation that 2 or more qualified HUBZone small business 
        concerns will submit offers for the contracting opportunity;
          (3) the anticipated award price of the contract (including 
        options) will not exceed--
                  (A) $5,500,000 (subject to adjustment under section 
                35A of the Office of Federal Procurement Policy Act (41 
                U.S.C. 431a)), in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $3,500,000 (subject to adjustment under section 
                35A of the Office of Federal Procurement Policy Act (41 
                U.S.C. 431a)), in the case of all other contract 
                opportunities; and
          (4) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price.
Sec. 25304. Restricted competition
  Notwithstanding any other law, a contract opportunity shall be 
awarded under the program on the basis of competition restricted to 
qualified HUBZone small business concerns if the contracting officer 
has a reasonable expectation that--
          (1) not fewer than 2 qualified HUBZone small business 
        concerns will submit offers; and
          (2) the award can be made at a fair market price.
Sec. 25305. Appeal of decision not to award contract
  Notwithstanding any other law, not later than 5 days after the date 
on which the Administrator is notified of a decision by a contracting 
officer of a Federal agency not to award a contract opportunity under 
the program to a qualified HUBZone small business concern, the 
Administrator may notify the contracting officer of the intent to 
appeal the contracting officer's decision, and within 15 days after 
that date the Administrator may file a written request for 
reconsideration of the contracting officer's decision with the head of 
the Federal agency.
Sec. 25306. Price evaluation preference in full and open competition
  (a) In General.--Subject to subsection (b), in a case in which a 
contract is to be awarded on the basis of full and open competition, 
the price offered by a qualified HUBZone small business concern shall 
be deemed to be lower than the price offered by another offeror (other 
than another small business concern) if the price offered by the 
qualified HUBZone small business concern is not more than 10 percent 
higher than the price offered by the otherwise lowest, responsive, and 
responsible offeror.
  (b) Agricultural Commodities.--
          (1) In general.--In the case of a purchase by the Secretary 
        of Agriculture of agricultural commodities, the price 
        evaluation preference shall be--
                  (A) 10 percent for the portion of a contract to be 
                awarded that is not greater than 25 percent of the 
                total volume being procured for each agricultural 
                commodity in a single invitation;
                  (B) 5 percent for the portion of a contract to be 
                awarded that is greater than 25 percent, but not 
                greater than 40 percent, of the total volume being 
                procured for each agricultural commodity in a single 
                invitation; and
                  (C) zero, for the portion of a contract to be awarded 
                that is greater than 40 percent of the total volume 
                being procured for each agricultural commodity in a 
                single invitation.
          (2) Treatment of preference.--A contract awarded to a 
        qualified HUBZone small business concern under a preference 
        described in paragraph (1) shall not be counted toward the 
        fulfillment of any requirement partially set aside for 
        competition restricted to small business concerns.
          (3) International food aid export operations.--The price 
        evaluation preference for a purchase of an agricultural 
        commodity by the Secretary of Agriculture for export operations 
        through an international food aid program administered by the 
        Farm Service Agency shall be 5 percent on the first portion of 
        a contract to be awarded that is not greater than 20 percent of 
        the total volume of each agricultural commodity being procured 
        in a single invitation.
Sec. 25307. Relationship to other contracting preferences
  A procurement may not be made from a source on the basis of a 
preference under the program if the procurement would otherwise be made 
from a different source under--
          (1) section 4124 or 4125 of title 18; or
          (2) the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
Sec. 25308. Verification of eligibility
  (a) In General.--In carrying out this chapter, the Administrator 
shall establish procedures relating to--
          (1) the filing, investigation, and disposition by the 
        Administrator of any challenge to the eligibility of a small 
        business concern to receive assistance under the program 
        (including a challenge, filed by an interested party, relating 
        to the veracity of a certification made or information provided 
        to the Administrator by a small business concern under section 
        25301(7) of this title); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the 
        Administration by a small business concern under section 
        25301(7) of this title.
  (b) Examinations.--The procedures established under subsection (a) 
may provide for program examinations (including random program 
examinations) by the Administrator of any small business concern making 
a certification or providing information to the Administrator under 
section 25301(7) of this title.
  (c) Provision of Data.--On the request of the Administrator, the 
Secretary of Labor, the Secretary of Housing and Urban Development, and 
the Secretary of the Interior (or the Assistant Secretary for Indian 
Affairs) shall promptly provide to the Administrator such information 
as the Administrator determines to be necessary to carry out this 
section.
Sec. 25309. Regulations
  (a) Certification Procedures.--The Administrator shall by regulation 
establish procedures for the certification of a small business concern 
as a qualified HUBZone small business concern.
  (b) Construction Contracts and Other Contracts.--The Administrator 
shall by regulation establish requirements that are similar to the 
requirements specified in items (aa) and (bb) of section 
25301(7)(A)(i)(III) of this title on contracts for general and 
specialty construction and contracts for any other industry category 
that would not otherwise be subject to those requirements. The 
percentage applicable to any such requirement shall be determined in 
accordance with section 25301(7)(B) of this title.
Sec. 25310. List of qualified HUBZone small business concerns
  The Administrator shall establish and maintain a list of qualified 
HUBZone small business concerns, which list, to the extent 
practicable--
          (1) after the Administrator makes the certification required 
        by section 25301(7)(A)(i) of this title regarding a qualified 
        HUBZone small business concern and determines that subparagraph 
        section 25301(7)(A)(ii) of this title does not apply to that 
        qualified HUBZone small business concern, shall include the 
        name, address, and type of business with respect to each such 
        small business concern;
          (2) shall be updated by the Administrator not less than 
        annually; and
          (3) on request, shall be provided to any Federal agency or 
        other entity.
Sec. 25311. Penalties
  In addition to the penalties described in section 10504 of this 
title, a small business concern that is determined by the Administrator 
to have misrepresented the status of that small business concern as a 
HUBZone small business concern for purposes of this section shall be 
subject to--
          (1) section 1001 of title 18; and
          (2) sections 3729 to 3733 of title 31.

 CHAPTER 255--SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY SERVICE-
                           DISABLED VETERANS

Sec.
25501.  Sole source contracts.
25502.  Restricted competition.
25503.  Relationship to other contracting preferences.
25504.  Provision of data.
25505.  Verification of eligibility.
25506.  Penalties.
Sec. 25501. Sole source contracts
  A contracting officer may award a sole source contract to any small 
business concern owned and controlled by service-disabled veterans if--
          (1) the Administrator determines that the small business 
        concern owned and controlled by service-disabled veterans is a 
        responsible contractor with respect to performance of the 
        contract opportunity;
          (2) the contracting officer does not have a reasonable 
        expectation that 2 or more small business concerns owned and 
        controlled by service-disabled veterans will submit offers for 
        the contracting opportunity;
          (3) the anticipated award price of the contract (including 
        options) will not exceed--
                  (A) $5,000,000, in the case of a contract opportunity 
                assigned a North American Industry Classification 
                System code for manufacturing; or
                  (B) $3,000,000, in the case of any other contract 
                opportunity; and
          (4) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price.
Sec. 25502. Restricted competition
  A contracting officer may award a contract on the basis of 
competition restricted to small business concerns owned and controlled 
by service-disabled veterans if the contracting officer has a 
reasonable expectation that--
          (1) not fewer than 2 small business concerns owned and 
        controlled by service-disabled veterans will submit offers; and
          (2) the award can be made at a fair market price.
Sec. 25503. Relationship to other contracting preferences
  A procurement may not be made from a source on the basis of a 
preference provided under section 25501 or 25502 of this title if the 
procurement would otherwise be made from a different source under--
          (1) section 4124 or 4125 of title 18; or
          (2) the Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
Sec. 25504. Provision of data
  On the request of the Administrator, the head of any Federal agency 
shall promptly provide to the Administrator such information as the 
Administrator determines to be necessary to carry out this chapter.
Sec. 25505. Verification of eligibility
  (a) In General.--In carrying out this chapter, the Administrator 
shall establish procedures relating to--
          (1) the filing, investigation, and disposition by the 
        Administrator of any challenge to the eligibility of a small 
        business concern to receive assistance under this subsection 
        (including a challenge, filed by an interested party, relating 
        to the veracity of a certification made or information provided 
        to the Administration by a small business concern); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the 
        Administration by a small business concern.
  (b) Examinations.--The procedures established under subsection (a) 
may provide for program examinations (including random program 
examinations) by the Administrator of any small business concern making 
a certification or providing information to the Administrator.
Sec. 25506. Penalties
  In addition to the penalties described in section 10504 of this 
title, a small business concern that is determined by the Administrator 
to have misrepresented the status of the small business concern as a 
small business concern owned and controlled by service-disabled 
veterans for purposes of this chapter shall be subject to--
          (1) section 1001 of title 18; and
          (2) sections 3729 to 3733 of title 31.

   CHAPTER 257--SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY WOMEN

Sec.
25701.  Definition of small business concern owned and controlled by 
          women.
25702.  Restricted competition.
25703.  Identification of industries.
25704.  Provision of data.
25705.  Verification of eligibility.
25706.  Penalties.
Sec. 25701. Definition of small business concern owned and controlled 
                    by women
  In this chapter, the term ``small business concern owned and 
controlled by women'' has the meaning given the term in section 10101 
of this title, except that ownership shall be determined without regard 
to any community property law.
Sec. 25702. Restricted competition
  (a) In General.--A contracting officer may restrict competition for 
any contract for the procurement of a good or service by the Federal 
Government to small business concerns owned and controlled by women 
if--
          (1) each of the small business concerns owned and controlled 
        by women is not less than 51 percent owned by one or more women 
        who are economically disadvantaged (for which purpose ownership 
        shall be determined without regard to any community property 
        law);
          (2) the contracting officer has a reasonable expectation that 
        2 or more small business concerns owned and controlled by 
        economically disadvantaged women will submit offers for the 
        contract;
          (3) the contract is for the procurement of a good or service 
        with respect to an industry identified by the Administrator 
        under section 25703 of this title;
          (4) the anticipated award price of the contract (including 
        options) does not exceed--
                  (A) $5,000,000, in the case of a contract assigned a 
                North American Industry Classification System code for 
                manufacturing; or
                  (B) $3,000,000, in the case of any other contract;
          (5) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price; and
          (6) each of the small business concerns owned and controlled 
        by women--
                  (A) is certified by a Federal agency, a State 
                government, or a national certifying entity approved by 
                the Administrator, as a small business concern owned 
                and controlled by women; or
                  (B)(i) certifies to the contracting officer that it 
                is a small business concern owned and controlled by 
                women; and
                  (ii) provides adequate documentation, in accordance 
                with standards established by the Administrator, to 
                support the certification.
  (b) Waiver.--The Administrator may waive subsection (a)(1) with 
respect to a small business concern owned and controlled by women if 
the Administrator determines that the small business concern owned and 
controlled by women is in an industry in which small business concerns 
owned and controlled by women are substantially underrepresented.
Sec. 25703. Identification of industries
  The Administrator shall conduct a study to identify industries in 
which small business concerns owned and controlled by women are 
underrepresented with respect to Federal procurement contracting.
Sec. 25704. Provision of data
  On the request of the Administrator, the head of a Federal agency 
shall promptly provide to the Administrator such information as the 
Administrator determines to be necessary to carry out this chapter.
Sec. 25705. Verification of eligibility
  (a) In General.--In carrying out this chapter, the Administrator 
shall establish procedures relating to--
          (1) the filing, investigation, and disposition by the 
        Administrator of any challenge to the eligibility of a small 
        business concern to receive assistance under this chapter 
        (including a challenge, filed by an interested party, relating 
        to the veracity of a certification made or information provided 
        to the Administrator by a small business concern under section 
        25702(a)(6) of this title); and
          (2) verification by the Administrator of the accuracy of any 
        certification made or information provided to the Administrator 
        by a small business concern under section 25702(a)(6) of this 
        title.
  (b) Examinations.--The procedures established under subsection (a) 
may provide for program examinations (including random program 
examinations) by the Administrator of any small business concern making 
a certification or providing information to the Administrator under 
section 25702(a)(6) of this title.
Sec. 25706. Penalties
  In addition to the penalties described in section 10504 of this 
title, a small business concern that is determined by the Administrator 
to have misrepresented the status of the small business concern as a 
small business concern owned and controlled by women for purposes of 
this chapter shall be subject to--
          (1) section 1001 of title 18; and
          (2) sections 3729 to 3733 of title 31.

                  DIVISION H--RESEARCH AND DEVELOPMENT

                    CHAPTER 261--GENERAL PROVISIONS

Sec.
26101.  Definitions.
26102.  Assistance to small business concerns.
26103.  Federal agency cooperation.
26104.  Joint research and development programs.
Sec. 26101. Definitions
  In this division:
          (1) Commercial application.--The term ``commercial 
        application'' includes testing and evaluation of products, 
        services, or technologies for use in technical or weapons 
        systems.
          (2) Cooperative research and development.--The term 
        ``cooperative research and development'' means research or 
        research and development conducted jointly by a small business 
        concern and a research institution in which not less than 40 
        percent of the work is performed by the small business concern 
        and not less than 30 percent of the work is performed by the 
        research institution.
          (3) Extramural budget.--
                  (A) In general.--The term ``extramural budget'', in 
                reference to the extramural budget of a Federal agency, 
                means the sum of the total obligations minus amounts 
                obligated for research or research and development by 
                employees of the Federal agency in or through 
                Government-owned, Government-operated facilities.
                  (B) Applicability to department of energy.--As 
                applied with respect to the Department of Energy, the 
                term ``extramural budget'' does not include amounts 
                obligated for atomic energy defense programs solely for 
                weapons activities or for naval reactor programs.
                  (C) Applicability to agency for international 
                development.--As applied to the Agency for 
                International Development, the term ``extramural 
                budget'' does not include amounts obligated solely for 
                general institutional support of international research 
                centers or for grants to foreign countries.
          (4) Federal agency.--
                  (A) In general.--The term ``Federal agency'' means--
                          (i) an executive agency (as defined in 
                        section 105 of title 5); or
                          (ii) a military department.
                  (B) Exclusion.--The term ``Federal agency'' does not 
                include an agency within the Intelligence Community (as 
                defined in section 3.4(f) of Executive Order 12333 (50 
                U.S.C. 401 note) (or any successor Executive order)).
          (5) Federally funded research and development center.--The 
        term ``Federally funded research and development center'' means 
        a federally funded research and development center identified 
        by the National Scientific Foundation in accordance with the 
        Governmentwide Federal Acquisition Regulation issued under 
        section 25(c)(1) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 421(c)(1)) (or any successor regulation).
          (6) First phase.--The term ``first phase''--
                  (A) with respect to an SBIR, means the phase 
                described in paragraph (13)(A); and
                  (B) with respect to an STTR, means the phase 
                described in paragraph (14)(A).
          (7) Funding agreement.--The term ``funding agreement'' means 
        a contract, grant, or cooperative agreement entered into 
        between a Federal agency and a small business concern for the 
        performance of experimental, developmental, or research work 
        funded in whole or in part by the Federal Government.
          (8) Research institution.--
                  (A) In general.--The term ``research institution'' 
                means a nonprofit institution (as defined in section 4 
                of the Stevenson-Wydler Technology Innovation Act of 
                1980 (15 U.S.C. 3703)).
                  (B) Inclusion.--The term ``research institution'' 
                includes a federally funded research and development 
                center.
          (9) Research or research and development.--The term 
        ``research or research and development'' means an activity that 
        is--
                  (A) a systematic, intensive study directed toward 
                greater knowledge or understanding of the subject 
                studied;
                  (B) a systematic study directed specifically toward 
                applying new knowledge to meet a recognized need; or
                  (C) a systematic application of knowledge toward the 
                production of useful materials, devices, and systems or 
                methods, including design, development, and improvement 
                of prototypes and new processes to meet specific 
                requirements.
          (10) SBIR.--The term ``SBIR'' means a small business 
        innovation research program.
          (11) SBIR agency.--The term ``SBIR agency'' means a Federal 
        agency that is required by section 26301 of this title to have 
        an SBIR.
          (12) Second phase.--The term ``second phase''--
                  (A) with respect to an SBIR, means the phase 
                described in paragraph (13)(B); and
                  (B) with respect to an STTR, means the phase 
                described in paragraph (14)(B).
          (13) Small business innovation research program.--The term 
        ``small business innovation research program'' means a program 
        under which a portion of a Federal agency's research or 
        research and development effort is reserved for award to small 
        business concerns through a uniform process having--
                  (A) a first phase for determining, insofar as 
                possible, the scientific and technical merit and 
                feasibility of ideas that appear to have commercial 
                potential, as described in subparagraph (B), submitted 
                pursuant to SBIR solicitations;
                  (B) a second phase, to further develop proposals that 
                meet particular program needs, in which awards shall be 
                made based on the scientific and technical merit and 
                feasibility of the proposals, as evidenced by the first 
                phase, considering, among other things, the proposal's 
                commercial potential, as evidenced by--
                          (i) the small business concern's record of 
                        successfully commercializing SBIR or other 
                        research;
                          (ii) the existence of second phase funding 
                        commitments from private sector or non-SBIR 
                        funding sources;
                          (iii) the existence of third phase, follow-on 
                        commitments for the subject of the research; 
                        and
                          (iv) the presence of other indicators of the 
                        commercial potential of the idea; and
                  (C) where appropriate, a third phase--
                          (i) in which commercial applications of SBIR-
                        funded research or research and development are 
                        funded--
                                  (I) by non-Federal sources of 
                                capital; or
                                  (II) for products or services 
                                intended for use by the Federal 
                                Government, by follow-on non-SBIR 
                                Federal funding awards; or
                          (ii) for which awards from non-SBIR Federal 
                        funding sources are used for the continuation 
                        of research or research and development that 
                        has been competitively selected using peer 
                        review or scientific review criteria.
          (14) Small business technology transfer program.--The term 
        ``small business technology transfer program'' means a program 
        under which a portion of a Federal agency's extramural research 
        or research and development effort is reserved for award to 
        small business concerns for cooperative research and 
        development through a uniform process having--
                  (A) a first phase, to determine, to the extent 
                possible, the scientific, technical, and commercial 
                merit and feasibility of ideas submitted pursuant to 
                STTR solicitations;
                  (B) a second phase, to further develop proposed ideas 
                to meet particular program needs, in which awards shall 
                be made based on the scientific, technical, and 
                commercial merit and feasibility of the idea, as 
                evidenced by the first phase and by other relevant 
                information; and
                  (C) where appropriate, a third phase--
                          (i) in which commercial applications of STTR-
                        funded research or research and development are 
                        funded--
                                  (I) by non-Federal sources of 
                                capital; or
                                  (II) for products or services 
                                intended for use by the Federal 
                                Government, by follow-on non-STTR 
                                Federal funding awards; and
                          (ii) for which awards from non-STTR Federal 
                        funding sources are used for the continuation 
                        of research or research and development that 
                        has been competitively selected using peer 
                        review or scientific review criteria.
          (15) STTR.--The term ``STTR'' means a small business 
        technology transfer program.
          (16) STTR agency.--The term ``STTR agency'' means a Federal 
        agency that is required by section 26321 of this title to have 
        an STTR.
          (17) Third phase.--The term ``third phase''--
                  (A) with respect to an SBIR, means the phase 
                described in paragraph (13)(C); and
                  (B) with respect to an STTR, means the phase 
                described in paragraph (14)(C).
          (18) Third phase agreement.--The term ``third phase 
        agreement'' means a follow-on, non-SBIR-funded contract or non-
        STTR-funded contract described in paragraph (13)(C) or (14)(C).
Sec. 26102. Assistance to small business concerns
  The Administrator shall--
          (1) assist small business concerns in obtaining Government 
        contracts for research and development;
          (2) assist small business concerns in obtaining the benefits 
        of research and development performed under Government 
        contracts or at Government expense;
          (3) provide technical assistance to small business concerns 
        to accomplish the purposes of this division;
          (4) develop and maintain a source file and an information 
        program to assure each qualified and interested small business 
        concern the opportunity to participate in Federal agency SBIRs 
        and STTRs;
          (5) coordinate with participating Federal agencies a schedule 
        for release of SBIR and STTR solicitations, and prepare a 
        master release schedule so as to maximize the opportunity of 
        small business concerns to respond to solicitations;
          (6) independently survey and monitor the operation of SBIRs 
        and STTRs within participating Federal agencies; and
          (7) provide for and fully implement the tenets of Executive 
        Order No. 13329 (Encouraging Innovation in Manufacturing).
Sec. 26103. Federal agency cooperation
  The Administrator may consult and cooperate with, and make studies 
and recommendations to, all Federal agencies and the Government 
Accountability Office, and a Federal agency or the Government 
Accountability Office shall cooperate with the Administrator in order 
to carry out and to accomplish the purposes of this division.
Sec. 26104. Joint research and development programs
  (a) In General.--The Administrator may consult with representatives 
of small business concerns with a view to assisting and encouraging 
small business concerns in undertaking joint programs for research and 
development carried out through such corporate or other mechanism as 
may be most appropriate for the purpose.
  (b) Purposes.--A joint program under subsection (a) may, among other 
things, include the purposes of--
          (1) constructing, acquiring, or establishing a laboratory or 
        other facility for the conduct of research;
          (2) undertaking and utilizing applied research;
          (3) collecting research information related to a particular 
        industry and disseminating the information to participating 
        members;
          (4) conducting applied research on a protected, proprietary, 
        and contractual basis with member or nonmember concerns, 
        Government agencies, and others;
          (5) prosecuting applications for patents and rendering patent 
        services for participating members; and
          (6) negotiating and granting licenses under patents held 
        under the joint program and establishing corporations designed 
        to exploit particular patents obtained by the joint venture.
  (c) Approval of Agreements.--After consultation with the Attorney 
General and the Chairman of the Federal Trade Commission, and with the 
prior written approval of the Attorney General, the Administrator may 
approve an agreement between small business concerns providing for a 
joint program of research and development if the Administrator 
determines that the joint program proposed will maintain and strengthen 
the free enterprise system and the economy of the Nation.
  (d) Withdrawal of Approval.--The Administrator or the Attorney 
General may at any time withdraw approval of the agreement and the 
joint program of research and development covered by the agreement if 
the Administrator or Attorney General determines that the agreement or 
the joint program is no longer in the best interests of the competitive 
free enterprise system and the economy of the Nation.
  (e) Publication in Federal Register.--A copy of an approval or 
disapproval and of any determination made under subsection (c) or (d) 
shall be published in the Federal Register.
  (f) Nondelegability.--The authority of the Administrator under this 
section may not be delegated.
  (g) No Violation of Antitrust Laws or Federal Trade Commission Act.--
          (1) In general.--Subject to paragraph (2), no act or omission 
        to act pursuant to and within the scope of a joint program for 
        research and development under an agreement approved by the 
        Administrator under this section shall be within the 
        prohibitions of the antitrust laws or the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
          (2) Withdrawal of approval.--On publication in the Federal 
        Register of the notice of withdrawal of approval of an 
        agreement granted under this section, by the Administrator or 
        by the Attorney General, this section shall not apply to any 
        subsequent act or omission to act by reason of the agreement or 
        the approval.

                      CHAPTER 263--SBIRs AND STTRs

                          Subchapter I--SBIRs

Sec.
26301.  Federal agency SBIRs.
26302.  Administration of SBIRs by Federal agencies.
26303.  Funding agreement goals.
26304.  SBIR policy directives.
26305.  Discretionary technical assistance.
26306.  Coordination of technology development programs.
26307.  Purchase of American-made equipment and products.
26308.  Use of Department of Agriculture extramural budget funds.
26309.  Commercialization pilot program.
26310.  Reports by Federal agencies.
26311.  Termination.

                          Subchapter II--STTRs

26321.  Federal agency STTRs.
26322.  Administration of STTRs by Federal agencies.
26323.  STTR policy directive.
26324.  STTR model agreement for intellectual property rights.

      Subchapter III--Provisions Relating to Both SBIRs and STTRs

26341.  Database.
26342.  Third phase agreements.
26343.  Inclusion of SBIR and STTR information in strategic plans.
26344.  Simplified reporting requirements.
26345.  Federal and State Technology Partnership program.
26346.  Second phase and third phase awards for testing and evaluation 
          of products, services, and technologies for use in a technical 
          or weapons system.
26347.  Innovation in energy efficiency

                          Subchapter I--SBIRs

Sec. 26301. Federal agency SBIRs
  (a) SBIR Budget.--A Federal agency that has an extramural budget for 
research or research and development in excess of $100,000,000 for any 
fiscal year shall expend with small business concerns not less than 2.5 
percent of the extramural budget specifically in connection with an 
SBIR that meets the requirements of this division (including policy 
directives under section 26304 of this title).
  (b) Limitations.--An SBIR agency shall not--
          (1) use any of its SBIR budget established under subsection 
        (a) for the purpose of funding administrative costs of the 
        program, including costs associated with salaries and expenses; 
        or
          (2) make available for the purpose of meeting the 
        requirements of subsection (a) an amount of its extramural 
        budget for basic research that exceeds the percentage specified 
        in subsection (a).
  (c) Exclusion of Certain Funding Agreements.--A funding agreement 
with a small business concern for research or research and development 
that results from a competitive or single source selection other than 
an SBIR shall not be considered to meet any portion of the percentage 
requirement of subsection (a).
Sec. 26302. Administration of SBIRs by Federal agencies
  (a) In General.--An SBIR agency shall, in accordance with this 
division (including policy directives under section 26304 of this 
title)--
          (1) unilaterally determine categories of projects to be in 
        its SBIR;
          (2) issue SBIR solicitations in accordance with a schedule 
        determined cooperatively with the Administrator;
          (3) unilaterally determine research topics within the SBIR 
        agency's SBIR solicitations, giving special consideration to 
        broad research topics and to topics that further one or more 
        critical technologies, as identified by--
                  (A) the National Critical Technologies Panel in the 
                reports required under section 603 of the National 
                Science and Technology Policy, Organization, and 
                Priorities Act of 1976 (42 U.S.C. 6683) (as in effect 
                before January 1, 2001); or
                  (B) the Secretary of Defense, in the reports required 
                under section 2522 of title 10 (as in effect before 
                February 10, 1996);
          (4) unilaterally receive and evaluate proposals resulting 
        from SBIR proposals;
          (5) subject to section 26310(b) of this title--
                  (A) unilaterally select awardees for its SBIR funding 
                agreements; and
                  (B) inform each awardee under a funding agreement, to 
                the extent possible, of the expenses of the awardee 
                that will be allowable under the funding agreement;
          (6) administer its own SBIR funding agreements (or delegate 
        such administration to another Federal agency);
          (7)(A) make payments to recipients of SBIR funding agreements 
        on the basis of progress toward or completion of the funding 
        agreement requirements; and
          (B) in all cases, make payment to recipients under such 
        agreements in full, subject to audit, on or before the last day 
        of the 12-month period beginning on the date of completion of 
        the funding agreement requirements;
          (8)(A) include a section on its SBIR in its annual 
        performance plan required by subsections (a) and (b) of section 
        1115 of title 31; and
          (B) submit that section to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Science 
        and Committee on Small Business of the House of 
        Representatives;
          (9) collect, and maintain in a common format in accordance 
        with section 26344 of this title, such information from 
        awardees as is necessary to assess the SBIR, including 
        information necessary to maintain the database under section 
        26341 of this title; and
          (10) provide for and fully implement the tenets of Executive 
        Order No. 13329 (Encouraging Innovation in Manufacturing).
  (b) Research and Development Focus.--
          (1) Revision and update of criteria and procedures of 
        identification.--In carrying out subsection (a), the Secretary 
        of Defense shall, not less often than once every 4 years, 
        revise and update the criteria and procedures used to identify 
        areas of the research and development efforts of the Department 
        of Defense that are suitable for the provision of funds under 
        the SBIR and the STTR of the Department of Defense.
          (2) Use of plans.--The criteria and procedures described in 
        paragraph (1) shall be developed through the use of the most 
        current versions of the following plans:
                  (A) The Joint Warfighting Science and Technology Plan 
                required under section 270 of the National Defense 
                Authorization Act for Fiscal Year 1997 (10 U.S.C. 2501 
                note; Public Law 104-201).
                  (B) The Defense Technology Area Plan of the 
                Department of Defense.
                  (C) The Basic Research Plan of the Department of 
                Defense.
          (3) Input in identification of areas of effort.--The criteria 
        and procedures described in paragraph (1) shall include input 
        in the identification of areas of research and development 
        efforts described in that paragraph from Department of Defense 
        program managers and program executive officers.
Sec. 26303. Funding agreement goals
  (a) In General.--A Federal agency that has a budget for research or 
research and development in excess of $20,000,000 for any fiscal year 
shall establish goals specifically for funding agreements for research 
or research and development to small business concerns.
  (b) No Backsliding.--No goal established by a Federal agency under 
subsection (a) shall be less than the percentage of the Federal 
agency's research or research and development budget expended under 
funding agreements with small business concerns in the immediately 
preceding fiscal year.
Sec. 26304. SBIR policy directives
  (a) In General.--The Administrator, after consultation with the 
Administrator of the Office of Federal Procurement Policy, the Director 
of the Office of Science and Technology Policy, and the 
Intergovernmental Affairs Division of the Office of Management and 
Budget, shall issue policy directives for the general conduct of the 
SBIRs within the Federal Government.
  (b) Matters To Be Provided For.--Policy directives under subsection 
(a) shall provide for--
          (1) simplified, standardized, and timely SBIR solicitations;
          (2) a simplified, standardized funding process that provides 
        for--
                  (A) the timely receipt and review of proposals;
                  (B) outside peer review for at least phase two 
                proposals, if appropriate;
                  (C) protection of proprietary information provided in 
                proposals;
                  (D) selection of awardees;
                  (E) retention by a small business concern of the 
                rights to data generated by the small business concern 
                in the performance of an SBIR award for a period of not 
                less than 4 years;
                  (F) transfer of title to property provided by a 
                Federal agency to a small business concern if such a 
                transfer would be more cost effective than recovery of 
                the property by the Federal agency;
                  (G) cost sharing; and
                  (H) cost principles and payment schedules;
          (3) exemptions from the policy directives under paragraph (2) 
        if national security or intelligence functions clearly would be 
        jeopardized;
          (4) minimizing the regulatory burden associated with 
        participation in an SBIR for a small business concern so as to 
        stimulate the cost-effective conduct of Federal research and 
        development and the likelihood of commercialization of the 
        results of research and development conducted under the SBIR;
          (5) the submission by a Federal agency to the Administrator 
        and the Office of Science and Technology Policy of a 
        simplified, standardized, and timely annual report on its SBIR;
          (6) standardized and orderly withdrawal from SBIR 
        participation by a Federal agency;
          (7) the voluntary participation in an SBIR by a Federal 
        agency not required by section 26301 of this title to have an 
        SBIR;
          (8) continued use by a small business concern participating 
        in the third phase of an SBIR, as a directed bailment, of any 
        property transferred by a Federal agency to the small business 
        concern in the second phase of an SBIR for a period of not less 
        than 2 years, beginning on the initial date of the small 
        business concern's participation in the third phase of an SBIR;
          (9) procedures to ensure, to the extent practicable, that a 
        Federal agency that intends to pursue research, development, or 
        production of a technology developed by a small business 
        concern under an SBIR enters into a follow-on, non-SBIR funding 
        agreement with the small business concern for the research, 
        development, or production;
          (10) limits in the amounts of funds that a Federal agency may 
        award of $100,000 in the first phase of an SBIR and $750,000 in 
        the second phase of an SBIR, adjusted once every 5 years to 
        reflect economic adjustments and programmatic considerations;
          (11) a process for notifying SBIR agencies and potential SBIR 
        participants of the critical technologies, as identified--
                  (A) by the National Critical Technologies Panel in 
                accordance with section 603 of the National Science and 
                Technology Policy, Organization, and Priorities Act of 
                1976 (42 U.S.C. 6683) (as in effect before January 1, 
                2001); or
                  (B) by the Secretary of Defense in accordance with 
                section 2522 of title 10 (as in effect before February 
                10, 1996);
          (12)(A) enhanced outreach efforts to increase the 
        participation of small business concerns owned and controlled 
        by socially and economically disadvantaged individuals and the 
        participation of small business concerns owned and controlled 
        by women in technological innovation and in SBIRs, including 
        the third phase of SBIRs; and
          (B) the collection of data to document that participation;
          (13) technical and programmatic guidance to encourage Federal 
        agencies to develop gap-funding programs to address the delay 
        between an award for the first phase of an SBIR and the 
        application for and extension of an award for the second phase 
        of the SBIR;
          (14) procedures to ensure that a small business concern that 
        submits a proposal for a funding agreement for the first phase 
        of an SBIR and that has received more than 15 second phase SBIR 
        awards during the preceding 5 fiscal years is able to 
        demonstrate the extent to which the small business concern was 
        able to secure third phase funding to develop concepts 
        resulting from previous second phase SBIR awards;
          (15) the requirement of a succinct commercialization plan 
        with each application for a second phase SBIR award that is 
        moving toward commercialization;
          (16) a requirement that a Federal agency report to the 
        Administrator, not less frequently than annually, all instances 
        in which the Federal agency pursued research, development, or 
        production of a technology developed by a small business 
        concern using an award made under the SBIR of the Federal 
        agency and determined that it was not practicable to enter into 
        a follow-on non-SBIR funding agreement with the small business 
        concern; and
          (17) implementation of section 26344 of this title, including 
        establishing standardized procedures for the provision of 
        information under section 26341(c) of this title.
  (c) Phased Withdrawal From SBIR Program.--At the discretion of the 
Administrator, the policy directive under subsection (b)(6) may require 
a phased withdrawal over a period of time sufficient in duration to 
minimize any adverse impact on small business concerns.
  (d) Rights to Data.--The rights provided for under subsection 
(b)(1)(E) shall apply to all Federal funding awards under this 
division, including first phase, second phase, and third phase awards.
  (e) Reports on Impracticability of Follow-on Agreements.--A report 
under subsection (b)(16) shall include, at a minimum--
          (1) the reasons why the follow-on funding agreement with the 
        small business concern was not practicable;
          (2) the identity of the entity with which the Federal agency 
        contracted to perform the research, development, or production; 
        and
          (3) a description of the type of funding agreement under 
        which the research, development, or production was obtained.
Sec. 26305. Discretionary technical assistance
  (a) In General.--An SBIR agency may enter into an agreement with a 
vendor selected under subsection (b) to provide small business concerns 
engaged in SBIR projects with technical assistance services, such as 
access to a network of scientists and engineers engaged in a wide range 
of technologies or access to technical and business literature 
available through on-line data bases, for the purpose of assisting the 
small business concerns in--
          (1) making better technical decisions concerning the 
        projects;
          (2) solving technical problems that arise during the conduct 
        of the projects;
          (3) minimizing technical risks associated with the projects; 
        and
          (4) developing and commercializing new commercial products 
        and processes resulting from the projects.
  (b) Vendor Selection.--
          (1) In general.--An SBIR agency may select a vendor to assist 
        small business concerns in meeting the goals listed in 
        subsection (a) for a term not to exceed 3 years.
          (2) Competition.--Selection of a vendor shall be competitive 
        and shall use merit-based criteria.
  (c) Additional Technical Assistance.--
          (1) First phase.--An SBIR agency may provide services 
        described in subsection (a) to first phase SBIR award 
        recipients in an amount equal to not more than $4,000, which 
        shall be in addition to the amount of the recipient's award.
          (2) Second phase.--An SBIR agency described in subsection (a) 
        may authorize any second phase SBIR award recipient to 
        purchase, with funds available from its SBIR awards, services 
        described in subsection (a), in an amount equal to not more 
        than $4,000 per year.
Sec. 26306. Coordination of technology development programs
  (a) Definition of Technology Development Program.--In this section, 
the term ``technology development program'' means--
          (1) the Experimental Program to Stimulate Competitive 
        Research of the National Science Foundation, as established 
        under section 113 of the National Science Foundation 
        Authorization Act of 1988 (42 U.S.C. 1862g);
          (2) the Defense Experimental Program to Stimulate Competitive 
        Research of the Department of Defense;
          (3) the Experimental Program to Stimulate Competitive 
        Research of the Department of Energy;
          (4) the Experimental Program to Stimulate Competitive 
        Research of the Environmental Protection Agency;
          (5) the Experimental Program to Stimulate Competitive 
        Research of the National Aeronautics and Space Administration;
          (6) the Institutional Development Award Program of the 
        National Institutes of Health; and
          (7) the National Research Initiative Competitive Grants 
        Program of the Department of Agriculture.
  (b) Coordination Requirements.--A Federal agency that is subject to 
section 26301 of this title and that has established a technology 
development program may, in each fiscal year, review for funding under 
the technology development program--
          (1) a proposal to provide outreach and assistance to one or 
        more small business concerns interested in participating in the 
        Federal agency's SBIR (including a proposal to make a grant or 
        loan to a business concern to pay a portion or all of the cost 
        of developing an SBIR proposal) from an entity, organization, 
        or individual located in--
                  (A) a State that is eligible to participate in the 
                technology development program; or
                  (B) a State described in subsection (c); or
          (2) a proposal for the first phase of the SBIR program (if 
        the proposal, though meritorious, is not funded through the 
        SBIR program for that fiscal year due to funding restraints) 
        from a small business concern located in--
                  (A) a State that is eligible to participate in the 
                technology development program; or
                  (B) a State described in subsection (c).
  (c) Additionally Eligible State.--A State referred to in paragraph 
(1)(B) or (2)(B) of subsection (b) is a State in which the total value 
of contracts awarded to small business concerns under all SBIRs is less 
than the total value of contracts awarded to small business concerns in 
a majority of other States, as determined by the Administrator in even-
numbered fiscal years, based on the most recent statistics compiled by 
the Administrator.
Sec. 26307. Purchase of American-made equipment and products
  (a) Purchase of American-Made Equipment and Products.--It is the 
sense of Congress that an entity that is awarded a funding agreement 
under the SBIR of a Federal agency should, when purchasing any 
equipment or a product with funds provided through the funding 
agreement, purchase only American-made equipment and products, to the 
extent possible in keeping with the overall purposes of the SBIR.
  (b) Notice to SBIR Awardees.--A Federal agency that awards a funding 
agreement under an SBIR shall provide to each recipient of such an 
award a notice describing the sense of the Congress stated in 
subsection (a).
Sec. 26308. Use of Department of Agriculture extramural budget funds
  All funds appropriated that are determined to be part of the 
extramural budget of the Department of Agriculture for any fiscal year 
for purposes of meeting the requirements of this division shall be 
available for funding agreements with small business concerns for any 
purpose in furtherance of the SBIR of the Department of Agriculture. 
Such funds may be transferred for that purpose from one appropriation 
account to another or to a single account.
Sec. 26309. Commercialization pilot program
  (a) In General.--The Secretary of Defense and each Secretary of a 
military department may create and administer a commercialization pilot 
program to accelerate the transition of technologies, products, and 
services developed under the SBIR of the Department of Defense or of 
the military department to the third phase, including the acquisition 
process.
  (b) Identification of Research Programs for Accelerated Transition to 
Acquisition Process.--In carrying out a commercialization pilot 
program, the Secretary of Defense and the Secretary of each military 
department shall identify research programs of an SBIR that have the 
potential for rapid transitioning to the third phase and into the 
acquisition process.
  (c) Limitation.--No research program of a military department may be 
identified under subsection (b) unless the Secretary of the military 
department certifies in writing that the successful transition of the 
research program to the third phase and into the acquisition process is 
expected to meet high priority military requirements of the military 
department.
  (d) Funding.--
          (1) In general.--For payment of expenses incurred to 
        administer the commercialization pilot program under this 
        subsection, the Secretary of Defense and a Secretary of a 
        military department may use not more than an amount equal to 
        one percent of the funds available to the Department of Defense 
        or the military department under an SBIR.
          (2) Use of funds.--Funds used as described in paragraph (1)--
                  (A) shall not be subject to the limitations on the 
                use of funds in section 26301(b) of this title; and
                  (B) shall not be used to make third phase awards.
  (e) Evaluative Report.--
          (1) In general.--At the end of each fiscal year, the 
        Secretary of Defense shall submit to the Committee on Armed 
        Services and Committee on Small Business and Entrepreneurship 
        of the Senate and the Committee on Armed Services and Committee 
        on Small Business of the House of Representatives an evaluative 
        report regarding activities under the commercialization pilot 
        program.
          (2) Contents.--A report under paragraph (1) shall include--
                  (A) an accounting of the funds used in the 
                commercialization pilot program;
                  (B) a detailed description of the commercialization 
                pilot program, including incentives and activities 
                undertaken by acquisition program managers, program 
                executive officers, and prime contractors; and
                  (C) a detailed compilation of results achieved by the 
                commercialization pilot program, including the number 
                of small business concerns assisted and the number of 
                projects commercialized.
  (f) Sunset.--A commercialization pilot program under this section 
shall terminate at the end of fiscal year 2009.
Sec. 26310. Reports by Federal agencies
  (a) Annual Report.--An SBIR agency shall annually submit to the 
Administrator and the Office of Science and Technology Policy a report 
on the Federal agency's SBIR.
  (b) Reporting of Awards Made From Single Proposals, Awards to 
Multiple Award Winners, and Awards to Critical Technology Topics.--
          (1) Single proposal.--If an SBIR agency makes an award with 
        respect to an SBIR solicitation topic or subtopic for which the 
        Federal agency received only one proposal, the SBIR agency 
        shall provide written justification for making the award in its 
        next quarterly report to the Administrator and in the SBIR 
        agency's next annual report required under subsection (a).
          (2) Multiple awards.--An SBIR agency shall include in its 
        next annual report required under subsection (a) an accounting 
        of the awards that the SBIR agency has made for the first phase 
        of its SBIR during the reporting period to entities that have 
        received more than 15 awards for the second phase of the SBIR 
        during the preceding 5 fiscal years.
          (3) Critical technology awards.--
                  (A) In general.--An SBIR agency shall include in its 
                next annual report required under subsection (a) an 
                accounting of the number of awards that the SBIR agency 
                has made to critical technology topics described in 
                section 26302(3) of this title.
                  (B) Contents.--An accounting under subparagraph (A) 
                shall--
                          (i) include an identification of the specific 
                        critical technologies topics; and
                          (ii) disclose the percentage by number and 
                        dollar amount of the SBIR agency's total SBIR 
                        awards to critical technology topics.
  (c) Number and Dollar Amount of Awards.--
          (1) In general.--A Federal agency required by section 26301 
        of this title to have an SBIR or to establish goals shall 
        annually submit to the Administrator a report that discloses--
                  (A) the number of awards pursuant to grants, 
                contracts, or cooperative agreements over $10,000 in 
                amount; and
                  (B) the dollar value of all such awards.
          (2) Contents.--A report under paragraph (1) shall identify 
        SBIR awards and compare the number and amount of those awards 
        with awards to other than small business concerns.
          (3) Calculation of extramural budget.--
                  (A) Methodology.--Not later than 4 months after the 
                date of enactment of each appropriations Act for an 
                SBIR agency, the SBIR agency shall submit to the 
                Administrator a report that includes a description of 
                the methodology used for calculating the amount of the 
                extramural budget of that SBIR agency.
                  (B) Administrator's analysis.--The Administrator 
                shall include an analysis of the methodology received 
                from each SBIR agency in the report required by section 
                10710(a) of this title.
Sec. 26311. Termination
  The authorization to carry out an SBIR under this chapter terminates 
on September 30, 2008.

                          Subchapter II--STTRs

Sec. 26321. Federal agency STTRs
  (a) STTR Budget.--With respect to each fiscal year through fiscal 
year 2009, a Federal agency that has an extramural budget for research 
or research and development in excess of $1,000,000,000 for the fiscal 
year shall expend with small business concerns not less than 0.3 
percent, specifically in connection with an STTR that meets the 
requirements of this division (including any policy directive under 
section 26323 of this title).
  (b) Limitations.--A Federal agency shall not--
          (1) use any of its STTR budget established under subsection 
        (a) for the purpose of funding--
                  (A) administrative costs of the STTR program, 
                including costs associated with salaries and expenses; 
                or
                  (B) in the case of a small business concern or a 
                research institution, costs associated with salaries, 
                expenses, and administrative overhead (other than 
                direct or indirect costs allowable under guidelines of 
                the Office of Management and Budget and the 
                Governmentwide Federal Acquisition Regulation issued 
                under section 25(c)(1) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 421(c)(1))); or
          (2) make available for the purpose of meeting the 
        requirements of subsection (a) an amount of its extramural 
        budget for basic research that exceeds the percentage specified 
        in subsection (a).
  (c) Exclusion of Certain Funding Agreements.--A funding agreement 
with a small business concern for research or research and development 
that results from a competitive or single source selection other than 
an STTR shall not be considered to meet any portion of the percentage 
requirement of subsection (a).
Sec. 26322. Administration of STTRs by Federal agencies
  An STTR agency shall--
          (1) unilaterally determine categories of projects to be 
        included in its STTR;
          (2) issue STTR solicitations in accordance with a schedule 
        determined cooperatively with the Administrator;
          (3) unilaterally determine research topics within the Federal 
        agency's STTR solicitations, giving special consideration to 
        broad research topics and to topics that further one or more 
        critical technologies, as identified by--
                  (A) the National Critical Technologies Panel in the 
                reports required under section 603 of the National 
                Science and Technology Policy, Organization, and 
                Priorities Act of 1976 (42 U.S.C. 6683) (as in effect 
                before January 1, 2001); or
                  (B) the Secretary of Defense, in the reports required 
                under section 2522 of title 10 (as in effect before 
                February 10, 1996);
          (4) unilaterally receive and evaluate proposals resulting 
        from STTR solicitations;
          (5)(A) unilaterally select awardees for its STTR funding 
        agreements; and
          (B) inform each awardee under a funding agreement, to the 
        extent possible, of the expenses of the awardee that will be 
        allowable under the funding agreement;
          (6) administer its own STTR funding agreements (or delegate 
        such administration to another Federal agency);
          (7)(A) make payments to recipients of STTR funding agreements 
        on the basis of progress toward or completion of the funding 
        agreement requirements; and
          (B) in all cases, make payment to recipients under funding 
        agreements in full, subject to audit, on or before the last day 
        of the 12-month period beginning on the date of the completion 
        of the funding agreement requirements;
          (8)(A) include as part of its annual performance plan as 
        required by subsections (a) and (b) of section 1115 of title 31 
        a section on its STTR; and
          (B) submit that section to the Committee on Small Business of 
        the Senate and the Committee on Science and the Committee on 
        Small Business of the House of Representatives;
          (9) collect such information from awardees as is necessary to 
        assess STTR outputs and outcomes;
          (10) adopt the agreement developed by the Administrator under 
        section 26324 of this title as the STTR agency's model 
        agreement for allocating between small business concerns and 
        research institutions--
                  (A) intellectual property rights; and
                  (B) rights, if any, to carry out follow-on research, 
                development, or commercialization;
          (11) develop, in consultation with the Office of Federal 
        Procurement Policy and the Office of Government Ethics, 
        procedures to ensure that federally funded research and 
        development centers that participate in STTR agreements--
                  (A) are free from organizational conflicts of 
                interests relative to the program;
                  (B) do not use privileged information gained through 
                work performed for an STTR agency or private access to 
                STTR agency personnel in the development of an STTR 
                proposal; and
                  (C) use outside peer review, as appropriate;
          (12) develop procedures for assessing the commercial merit 
        and feasibility of STTR proposals, as evidenced by--
                  (A) the small business concern's record of 
                successfully commercializing STTR or other research;
                  (B) the existence of second phase funding commitments 
                from private sector or non-STTR funding sources;
                  (C) the existence of third phase follow-on 
                commitments for the subject of the research; and
                  (D) the presence of other indicators of the 
                commercial potential of the idea;
          (13) implement an outreach program to research institutions 
        and small business concerns for the purpose of enhancing its 
        STTR, in conjunction with any such outreach done for purposes 
        of the STTR agency's SBIR;
          (14) collect, and maintain in a common format in accordance 
        with section 26344 of this title, such information from 
        awardees as is necessary to assess its STTR, including 
        information necessary to maintain the database under section 
        26341 of this title;
          (15) annually submit to the Administrator and the Office of 
        Science and Technology Policy a report on its STTR; and
          (16) provide for and fully implement the tenets of Executive 
        Order No. 13329 (Encouraging Innovation in Manufacturing).
Sec. 26323. STTR policy directive
  (a) Issuance.--The Administrator shall issue a policy directive for 
the general conduct of the STTRs within the Federal Government.
  (b) Consultation.--The STTR policy directive shall be issued after 
consultation with--
          (1) the heads of each of the STTR agencies;
          (2) the Under Secretary of Commerce for Intellectual Property 
        and Director of the United States Patent and Trademark Office; 
        and
          (3) the Director of the Office of Federal Procurement Policy.
  (c) Contents.--The policy directive required by subsection (a) shall 
provide for--
          (1) simplified, standardized, and timely STTR solicitations;
          (2) a simplified, standardized funding process that provides 
        for--
                  (A) the timely receipt and review of proposals;
                  (B) outside peer review, if appropriate;
                  (C) protection of proprietary information provided in 
                proposals;
                  (D) selection of awardees;
                  (E) retention by a small business concern of the 
                rights to data generated by the small business concern 
                in the performance of an STTR award for a period of not 
                less than 4 years;
                  (F) continued use by a small business concern, as a 
                directed bailment, of any property transferred by a 
                Federal agency to the small business concern in the 
                second phase of the Federal agency's STTR for a period 
                of not less than 2 years, beginning on the initial date 
                of the small business concern's participation in the 
                third phase of the STTR;
                  (G) cost sharing;
                  (H) cost principles and payment schedules; and
                  (I)(i) one-year awards for the first phase of an 
                STTR, generally not to exceed $100,000, greater or 
                lesser amounts to be awarded at the discretion of the 
                awarding Federal agency, and shorter or longer periods 
                of time to be approved at the discretion of the 
                awarding agency where appropriate for a particular 
                project; and
                  (ii) 2-year awards for the second phase of the STTR, 
                generally not to exceed $750,000, greater or lesser 
                amounts to be awarded at the discretion of the awarding 
                Federal agency, and shorter or longer periods of time 
                to be approved at the discretion of the awarding agency 
                where appropriate for a particular project;
          (3) minimizing the regulatory burdens associated with 
        participation in an STTR;
          (4) guidelines for a model agreement, to be used by all 
        Federal agencies, for allocating between small business 
        concerns and research institutions--
                  (A) intellectual property rights; and
                  (B) rights, if any, to carry out follow-on research, 
                development, or commercialization;
          (5) procedures to ensure that--
                  (A) a recipient of an STTR award is a small business 
                concern; and
                  (B) the small business concern exercises management 
                and control of the performance of the STTR funding 
                agreement under a business plan providing for the 
                commercialization of the technology that is the subject 
                matter of the award; and
          (6) procedures to ensure, to the extent practicable, that a 
        Federal agency that intends to pursue research, development, or 
        production of a technology developed by a small business 
        concern under an STTR enters into a follow-on, non-STTR funding 
        agreement with the small business concern for the research, 
        development, or production.
  (d) Rights to Data.--The rights provided for under subsection 
(c)(2)(E) shall apply to all Federal funding awards under this 
division, including first phase, second phase, and third phase awards.
Sec. 26324. STTR model agreement for intellectual property rights
  (a) In General.--The Administrator shall promulgate regulations 
establishing a single model agreement for use in an STTR that allocates 
between small business concerns and research institutions--
          (1) intellectual property rights; and
          (2) rights, if any, to carry out follow-on research, 
        development, or commercialization.
  (b) Opportunity for Comment.--In promulgating regulations under 
subsection (a), the Administrator shall provide to affected Federal 
agencies, small business concerns, research institutions, and other 
interested parties the opportunity to submit written comments.

      Subchapter III--Provisions Relating to Both SBIRs and STTRs

Sec. 26341. Database
  (a) Public Database.--The Administrator shall develop, maintain, and 
make available to the public a searchable, up-to-date, electronic 
database that includes--
          (1) the name, size, location, and an identifying number 
        assigned by the Administrator of each small business concern 
        that has received a first phase or second phase SBIR or STTR 
        award from a Federal agency;
          (2) a description of each first phase or second phase SBIR or 
        STTR award received by that small business concern, including--
                  (A) an abstract of the project funded by the award, 
                excluding any information identified by the small 
                business concern as proprietary information;
                  (B) the Federal agency making the award; and
                  (C) the date and amount of the award;
          (3) an identification of any business concern or subsidiary 
        established for the commercial application of a product or 
        service for which an SBIR or STTR award is made;
          (4) information regarding mentors and mentoring networks, as 
        required by section 26345(f)(3) of this title; and
          (5) with respect to assistance under STTR--
                  (A) whether the small business concern or the 
                research institution initiated their collaboration on 
                each assisted STTR project;
                  (B) whether the small business concern or the 
                research institution originated any technology relating 
                to the assisted STTR project;
                  (C) the length of time it took to negotiate any 
                licensing agreement between the small business concern 
                and the research institution under each assisted STTR 
                project; and
                  (D) how the proceeds from commercialization, 
                marketing, or sale of technology resulting from each 
                assisted STTR project were allocated (by percentage) 
                between the small business concern and the research 
                institution.
  (b) Government Database.--
          (1) In general.--The Administrator, in consultation with SBIR 
        agencies and STTR agencies, shall develop and maintain a 
        database that--
                  (A) contains for each second phase award made by a 
                Federal agency--
                          (i) information collected in accordance with 
                        subsection (c) on revenue from the sale of new 
                        products or services resulting from the 
                        research conducted under the award;
                          (ii) information collected in accordance with 
                        subsection (c) on additional investment from 
                        any source, other than first phase or second 
                        phase SBIR or STTR awards, to further the 
                        research and development conducted under the 
                        award; and
                          (iii) any other information received in 
                        connection with the award that the 
                        Administrator, in conjunction with the SBIR and 
                        STTR managers of Federal agencies, considers 
                        relevant and appropriate;
                  (B) includes any narrative information that a small 
                business concern receiving a second phase award 
                voluntarily submits to further describe the outputs and 
                outcomes of its awards;
                  (C) includes for each applicant for a first phase or 
                second phase award that does not receive such an 
                award--
                          (i) the name, size, and location, and an 
                        identifying number assigned by the 
                        Administration;
                          (ii) an abstract of the project; and
                          (iii) the Federal agency to which the 
                        application was made; and
                  (D) includes any other data collected by or available 
                to any Federal agency that the Federal agency considers 
                may be useful for SBIR or STTR evaluation.
          (2) Use.--The database under paragraph (1) shall be available 
        for use solely--
                  (A) for program evaluation purposes by the Federal 
                Government; or
                  (B) in accordance with policy directives issued by 
                the Administrator, by other authorized persons that are 
                subject to a use and nondisclosure agreement with the 
                Federal Government covering the use of the database.
  (c) Updating of Information.--
          (1) In general.--A small business concern applying for a 
        second phase award under this division shall be required to 
        update information in the database established under this 
        section for any prior second phase award received by that small 
        business concern.
          (2) Apportionment.--In complying with this subsection, a 
        small business concern may apportion sales or additional 
        investment information relating to more than one second phase 
        award among those awards, if the small business concern notes 
        the apportionment for each award.
          (3) Updates at termination.--
                  (A) In general.--A small business concern receiving a 
                second phase award under this division shall update 
                information in the database concerning that award at 
                the termination of the award period.
                  (B) Voluntary updates.--The Administrator shall 
                request a small business concern described in 
                subparagraph (A) to voluntarily update such information 
                described in subparagraph (A) annually after 
                termination for a period of 5 years.
  (d) Protection of Information.--Information provided under subsection 
(b) or (c) shall be considered privileged and confidential and not 
subject to disclosure under section 552 of title 5.
  (e) Effect of Inclusion of Information in Database.--Inclusion of 
information in the database under this section shall not be considered 
to be publication for purposes of subsection (a) or (b) of section 102 
of title 35.
Sec. 26342. Third phase agreements
  (a) In General.--In the case of a small business concern that is 
awarded a funding agreement for the second phase of an SBIR or STTR, a 
Federal agency may enter into a third phase agreement with the small 
business concern for additional work to be performed during or after 
the second phase period.
  (b) Procedures.--The second phase funding agreement with the small 
business concern may, at the discretion of the Federal agency awarding 
the agreement, set out the procedures applicable to third phase 
agreements with that Federal agency or any other Federal agency.
  (c) Intellectual Property Rights.--A funding agreement under an SBIR 
or STTR shall include provisions setting forth the respective rights of 
the United States and the small business concern with respect to--
          (1) intellectual property rights; and
          (2) any right to carry out follow-on research.
Sec. 26343. Inclusion of SBIR and STTR information in strategic plans
  Program information relating to SBIRs and STTRs shall be included by 
a Federal agency in any update or revision required of the Federal 
agency under section 306(b) of title 5.
Sec. 26344. Simplified reporting requirements
  (a) In General.--The Administrator shall work with SBIR agencies and 
STTR agencies to standardize reporting requirements for the collection 
of data from SBIR or STTR applicants and awardees, including data for 
inclusion in the database under section 26341 of this title, taking 
into consideration the unique needs of each Federal agency, and to the 
extent possible, permitting the updating of previously reported 
information by electronic means.
  (b) Minimization of Burden.--The reporting requirements described in 
subsection (a) shall be designed to minimize the burden on small 
business concerns.
Sec. 26345. Federal and State Technology Partnership program
  (a) Definitions.--In this section:
          (1) Applicant.--The term ``applicant'' means an entity, 
        organization, or individual that submits a proposal for an 
        award or a cooperative agreement under this section.
          (2) Business advice and counseling.--The term ``business 
        advice and counseling'' means advice and assistance on matters 
        described in subsection (f) to small business concerns to guide 
        small business concerns through the SBIR and STTR process, from 
        application to award and successful completion of each phase of 
        an SBIR or STTR.
          (3) FAST program.--The term ``FAST program'' means the 
        Federal and State Technology Partnership program established 
        under subsection (b).
          (4) Mentor.--The term ``mentor'' means an individual 
        described in subsection (f).
          (5) Mentoring network.--The term ``mentoring network'' means 
        an association, organization, coalition, or other entity 
        (including an individual) that meets the requirements of 
        subsection (f).
          (6) Recipient.--The term ``recipient'' means a person that 
        receives an award or becomes party to a cooperative agreement 
        under this section.
          (7) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, and American 
        Samoa.
  (b) Establishment of FAST Program.--The Administrator shall establish 
a program to be known as the Federal and State Technology Partnership 
program or FAST program, the purpose of which shall be to strengthen 
the technological competitiveness of small business concerns in the 
States.
  (c) Grants and Cooperative Agreements.--
          (1) Joint review.--In carrying out the FAST program under 
        this section, the Administrator and the SBIR managers at the 
        National Science Foundation and the Department of Defense shall 
        jointly review proposals submitted by applicants and may make 
        awards or enter into cooperative agreements under this section 
        based on the factors for consideration specified in paragraph 
        (2), to enhance or develop in a State--
                  (A) technology research and development by small 
                business concerns;
                  (B) technology transfer from university research to 
                technology-based small business concerns;
                  (C) technology deployment and diffusion benefiting 
                small business concerns;
                  (D) the technological capabilities of small business 
                concerns through the establishment or operation of 
                consortia comprised of entities, organizations, or 
                individuals, including--
                          (i) State and local development agencies and 
                        entities;
                          (ii) representatives of technology-based 
                        small business concerns;
                          (iii) industries and emerging companies;
                          (iv) universities; and
                          (v) small business development centers; and
                  (E) outreach, financial support, and technical 
                assistance to technology-based small business concerns 
                participating in or interested in participating in an 
                SBIR, including initiatives--
                          (i) to make grants or loans to companies to 
                        pay a portion or all of the cost of developing 
                        SBIR proposals;
                          (ii) to establish or operate a mentoring 
                        network within the FAST program to provide 
                        business advice and counseling that will assist 
                        small business concerns that have been 
                        identified by FAST program participants, 
                        program managers of participating SBIR 
                        agencies, the Administrator, or other entities 
                        that--
                                  (I) are knowledgeable about the SBIRs 
                                and STTRs as good candidates for SBIRs 
                                and STTRs; and
                                  (II) would benefit from mentoring, in 
                                accordance with subsection (f);
                          (iii) to create or participate in a training 
                        program for individuals providing SBIR outreach 
                        and assistance at the State and local levels; 
                        and
                          (iv) to encourage the commercialization of 
                        technology developed through SBIR funding.
          (2) Selection considerations.--In making awards or entering 
        into cooperative agreements under this section, the 
        Administrator and the SBIR managers at the National Science 
        Foundation and the Department of Defense--
                  (A) may consider only proposals by applicants that 
                intend to use a portion of the Federal assistance 
                provided under this section to provide outreach, 
                financial support, or technical assistance to 
                technology-based small business concerns participating 
                in or interested in participating in an SBIR; and
                  (B) shall consider, at a minimum--
                          (i) whether the applicant has demonstrated 
                        that the assistance to be provided would 
                        address unmet needs of small business concerns 
                        in the community, and whether it is important 
                        to use Federal funding for the proposed 
                        activities;
                          (ii) whether the applicant has demonstrated 
                        that a need exists to increase the number or 
                        success of small high-technology businesses in 
                        the State, as measured by the number of first 
                        phase and second phase SBIR awards that have 
                        historically been received by small business 
                        concerns in the State;
                          (iii) whether the projected costs of the 
                        proposed activities are reasonable;
                          (iv) whether the proposal integrates and 
                        coordinates the proposed activities with other 
                        State and local programs assisting small high-
                        technology firms in the State;
                          (v) the manner in which the applicant will 
                        measure the results of the activities to be 
                        conducted; and
                          (vi) whether the proposal addresses the needs 
                        of--
                                  (I) small business concerns owned and 
                                controlled by women;
                                  (II) small business concerns owned 
                                and controlled by minorities; and
                                  (III) small business concerns located 
                                in areas that have historically not 
                                participated in the SBIR and STTR 
                                programs.
          (3) Proposal limit.--Not more than one proposal may be 
        submitted for inclusion in the FAST program under this section 
        to provide services in any one State in any one fiscal year.
          (4) Process.--
                  (A) Proposals and application.--A proposal or 
                application for assistance under this section shall be 
                in such form and subject to such procedures as the 
                Administrator shall establish.
                  (B) Regulations.--The Administrator shall promulgate 
                regulations establishing standards for the 
                consideration of proposals under paragraph (2), 
                including standards regarding each of the 
                considerations described in paragraph (2)(B).
  (d) Cooperation and Coordination.--In carrying out the FAST program, 
the Administrator shall cooperate and coordinate with--
          (1) SBIR agencies; and
          (2) entities, organizations, and individuals actively engaged 
        in enhancing or developing the technological capabilities of 
        small business concerns, including--
                  (A) State and local development agencies and 
                entities;
                  (B) State committees established under the 
                Experimental Program to Stimulate Competitive Research 
                of the National Science Foundation established under 
                section 113 of the National Science Foundation Act of 
                1988 (42 U.S.C. 1862g);
                  (C) State science and technology councils; and
                  (D) representatives of technology-based small 
                business concerns.
  (e) Requirements.--
          (1) Competitive basis.--An award under this section shall be 
        made or a cooperative agreement under this section shall be 
        entered into on a competitive basis.
          (2) Matching requirements.--
                  (A) Amount of non-federal share.--
                          (i) In general.--The non-Federal share of the 
                        cost of an activity (other than a planning 
                        activity) carried out using an award or under a 
                        cooperative agreement under this section shall 
                        be--
                                  (I) one-third, in the case of a 
                                recipient that will serve small 
                                business concerns located in one of the 
                                18 States receiving the fewest SBIR 
                                first phase awards;
                                  (II) except as provided in 
                                subparagraph (B), one-half, in the case 
                                of a recipient that will serve small 
                                business concerns located in one of the 
                                16 States receiving the greatest number 
                                of SBIR first phase awards; and
                                  (III) except as provided in 
                                subparagraph (B), three-sevenths, in 
                                the case of a recipient that will serve 
                                small business concerns located in a 
                                State not described in subclause (I) or 
                                (II) that is receiving SBIR first phase 
                                awards.
                          (ii) Rankings.--For purposes of clause (i), 
                        the Administrator shall reevaluate the ranking 
                        of a State once every 2 fiscal years, based on 
                        the most recent statistics compiled by the 
                        Administrator.
                  (B) Low-income areas.--To the extent that the Federal 
                contribution to the cost of the activity will be 
                directly allocated by a recipient described in 
                subparagraph (A) to serve small business concerns 
                located in a qualified census tract, the non-Federal 
                share of the cost of an activity carried out using an 
                award or under a cooperative agreement under this 
                section shall be one-third.
                  (C) Types of funding.--
                          (i) In general.--The non-Federal share of the 
                        cost of an activity carried out by a recipient 
                        shall be comprised of not less than 50 percent 
                        cash and not more than 50 percent of indirect 
                        costs and in-kind contributions.
                          (ii) Non-federal source.--None of the non-
                        Federal share of costs or contributions may be 
                        derived from funds from any other Federal 
                        program.
          (3) Duration.--An award may be made or a cooperative 
        agreement may be entered into under this section for multiple 
        years, not to exceed 5 years in total.
  (f) Mentoring Networks.--
          (1) In general.--A recipient of an award or participant in a 
        cooperative agreement under this section may use a reasonable 
        amount of the assistance for the establishment of a mentoring 
        network under this section.
          (2) Criteria.--A mentoring network established using 
        assistance under this section shall--
                  (A) provide business advice and counseling to high 
                technology small business concerns located in the State 
                or region served by the mentoring network and 
                identified under subsection (c)(1)(E)(ii) as potential 
                candidates for an SBIR or STTR;
                  (B) identify volunteer mentors who--
                          (i) are persons associated with a small 
                        business concern that has successfully 
                        completed one or more SBIR or STTR funding 
                        agreements; and
                          (ii) have agreed to guide small business 
                        concerns through all stages of the SBIR or STTR 
                        process, including providing assistance 
                        relating to--
                                  (I) proposal writing;
                                  (II) marketing;
                                  (III) Government accounting;
                                  (IV) Government audits;
                                  (V) project facilities and equipment;
                                  (VI) human resources;
                                  (VII) third phase partners;
                                  (VIII) commercialization;
                                  (IX) venture capital networking; and
                                  (X) other matters relevant to the 
                                SBIRs and STTRs;
                  (C) have experience working with small business 
                concerns participating in the SBIRs and STTRs;
                  (D) contribute information to the national database 
                referred to in paragraph (3); and
                  (E) agree to reimburse volunteer mentors for out-of-
                pocket expenses related to service as a mentor under 
                this section.
          (3) Mentoring database.--The Administrator, directly or by 
        contract, shall--
                  (A) include in the database required by section 26341 
                of this title, in cooperation with the SBIR program, 
                STTR program, and FAST program, information on 
                mentoring networks and mentors participating under this 
                subsection, including a description of their areas of 
                expertise;
                  (B) work cooperatively with mentoring networks to 
                maintain and update the database; and
                  (C) take such action as is necessary to aggressively 
                promote mentoring networks under this subsection.
  (g) Termination.--The authority to carry out the FAST program under 
this section terminates on September 30, 2005.
Sec. 26346. Second phase and third phase awards for testing and 
                    evaluation of products, services, and technologies 
                    for use in a technical or weapons system
  An award for testing and evaluation of a product, service, or 
technology for use in a technical or weapons system may be made in the 
second or third phase of an SBIR or STTR.
Sec. 26347. Innovation in energy efficiency
  (a) Federal Agency Energy-Related Priority.--In carrying out its 
duties under this division relating to SBIR and STTR solicitations by 
Federal agencies, the Administrator shall--
          (1) ensure that Federal agencies give high priority to small 
        business concerns that participate in or conduct energy 
        efficiency or renewable energy system research and development 
        projects; and
          (2) include in the annual report to Congress under section 
        10710(a) of this title a determination of whether the priority 
        described in paragraph (1) is being carried out.
  (b) Consultation.--The Administrator shall consult with the heads of 
other Federal agencies in determining whether priority has been given 
to small business concerns that participate in or conduct energy 
efficiency or renewable energy system research and development 
projects, as required by this section.
  (c) Guidelines.--The Administrator shall, as soon as practicable 
after December 19, 2007, issue guidelines and directives to assist 
Federal agencies in meeting the requirements of this section.

         DIVISION I--SMALL BUSINESS DEVELOPMENT CENTER PROGRAM

         CHAPTER 271--SMALL BUSINESS DEVELOPMENT CENTER PROGRAM

Sec.
27101.  Definitions.
27102.  Financial assistance agreements.
27103.  Plans.
27104.  Services.
27105.  Export enhancement plans.
27106.  Assistance from Federal laboratories.
27107.  Assistance from the National Science Foundation.
27108.  Assistance from the National Aeronautics and Space 
          Administration.
27109.  National Small Business Development Center Advisory Board.
27110.  Small business development center advisory boards.
27111.  Program examination and accreditation.
27112.  Limitations on authority.
27113.  Prohibition of fees for counseling service.
27114.  Veterans assistance and services program
Sec. 27101. Definitions
  In this chapter:
          (1) Associate administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Small 
        Business Development Centers.
          (2) Financial assistance.--The term ``financial assistance'' 
        means financial assistance under a grant, contract, or 
        cooperative agreement.
          (3) Financial assistance agreement.--The term ``financial 
        assistance agreement'' means a grant agreement, contract, or 
        cooperative agreement under which financial assistance is 
        provided under this chapter.
          (4) Program.--The term ``program'' means the small business 
        development center program under this chapter.
          (5) Qualified entity.--The term ``qualified entity'' means--
                  (A) a public or private institution of higher 
                education (including a land-grant college or 
                university, a college or school of business, 
                engineering, commerce, or agriculture, and a community 
                college or junior college);
                  (B) a women's business center operating under chapter 
                273; and
                  (C) any other entity if the entity, on December 31, 
                1990, was receiving a grant or was a party to a 
                contract or cooperative agreement under this chapter.
          (7) State.--The term ``State'' means a State, the District of 
        Columbia, Puerto Rico, the Virgin Islands, Guam, and American 
        Samoa.
Sec. 27102. Financial assistance agreements
  (a) In General.--Under a program to be known as the small business 
development center program, the Administrator may provide financial 
assistance to a qualified entity to assist in establishing a small 
business development center project for the purpose of providing--
          (1) a small business oriented employment or natural resources 
        development program;
          (2) studies, research, and counseling concerning the 
        managing, financing, and operation of small business concerns;
          (3) management and technical assistance regarding 
        participation by small business concerns in international 
        markets, export promotion, and technology transfer;
          (4) delivery or distribution of services and information in 
        connection with an activity described in paragraph (1), (2), or 
        (3); and
          (5) providing access to business analysts that can refer 
        small business concerns to available experts.
  (b) Requirements.--The Administrator shall require an applicant for 
financial assistance under this chapter with performance commencing on 
or after January 1, 1992, to--
          (1) have its own budget; and
          (2) primarily use institutions of higher education and 
        women's business centers operating under chapter 273 to provide 
        services to the small business community.
  (c) Term.--The term of a financial assistance agreement under 
subsection (a) shall be made on a calendar year basis or to coincide 
with the Federal fiscal year.
  (d) Cooperation.--A small business development center shall work in 
close cooperation with the Administration's regional and local offices, 
the Department of Commerce, appropriate Federal, State, and local 
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 business 
concerns.
  (e) Management.--
          (1) In general.--The program shall be under the general 
        management and oversight of the Administrator for the delivery 
        of programs and services to the small business community.
          (2) Programs and services.--Programs and services referred to 
        in paragraph (1) shall be jointly developed, negotiated, and 
        agreed on, with full participation of a qualified entity and 
        the Administrator, under an executed financial assistance 
        agreement between the qualified entity and the Administrator.
  (f) Association of Small Business Development Centers.--
          (1) In general.--Small business development centers may form 
        an Association to pursue matters of common concern.
          (2) Recognition; documents.--
                  (A) In general.--If more than a majority of the small 
                business development centers that are operating under 
                agreements with the Administrator are members of an 
                Association formed under paragraph (1), the 
                Administrator shall--
                          (i) recognize the existence and activities of 
                        the Association; and
                          (ii) consult with the Association and develop 
                        documents--
                                  (I) announcing the annual scope of 
                                activities under this chapter;
                                  (II) requesting proposals to deliver 
                                assistance as provided in this chapter; 
                                and
                                  (III) governing the general 
                                operations and administration of the 
                                program, specifically including the 
                                development of regulations and a 
                                uniform negotiated financial assistance 
                                agreement for use on an annual basis 
                                when entering into individual 
                                negotiated financial assistance 
                                agreements with small business 
                                development centers.
                  (B) Incorporation of certain provisions.--In 
                regulations under subparagraph (A)(ii)((III), 
                provisions governing audits, cost principles and 
                administrative requirements for financial assistance 
                that are included in uniform requirements of Office of 
                Management and Budget Circulars shall be incorporated 
                by reference and shall not be set forth in summary or 
                other form.
          (3) Leveraging of resources.--On an annual basis, a small 
        business development center shall review and coordinate public 
        and private partnerships and cosponsorships with the 
        Administrator for the purpose of more efficiently leveraging 
        available resources on a national and a State basis.
  (g) Funding.--
          (1) Matching amount.--
                  (A) In general.--The Administrator shall require as a 
                condition of any financial assistance agreement (or 
                amendment or modification of a financial assistance 
                agreement) made to a qualified entity under this 
                chapter that a matching amount (excluding any fees 
                collected from recipients of such assistance) equal to 
                the amount of the financial assistance 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.
          (2) Funding formula.--
                  (A) In general.--Subject to subparagraph (C), the 
                total amount of financial assistance received by 
                recipients of financial assistance in a State under 
                this section shall be equal to an amount determined in 
                accordance with the following formula:
                          (i) Pro rata basis.--The annual amount made 
                        available under section 10903(a) of this title 
                        for the small business development center 
                        program, less any reductions made for expenses 
                        authorized by subparagraph (E), shall be 
                        divided on a pro rata basis, based on the 
                        percentage of the population of each State, as 
                        compared with the population of the United 
                        States.
                          (ii) Minimum funding level.--If the pro rata 
                        amount calculated under clause (i) for any 
                        State is less than the minimum funding level 
                        under subparagraph (C), the Administrator shall 
                        determine the aggregate amount necessary to 
                        achieve that minimum funding level for each 
                        such State.
                          (iii) Deduction.--The aggregate amount 
                        calculated under clause (ii) shall be deducted 
                        from the amount calculated under clause (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 with 
                        the total population of all such States.
                          (iv) Addition.--The aggregate amount deducted 
                        under clause (iii) shall be added to the amount 
                        of financial assistance of the 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 financial assistance to 
                        any State shall not be reduced to an amount 
                        below the minimum funding level.
                  (B) Determination of amount of financial 
                assistance.--The amount of financial assistance for 
                which a State is eligible to apply under this paragraph 
                shall be the amount determined under subparagraph (A), 
                subject to any modifications required under 
                subparagraph (C), and shall be based on the amount 
                available for the fiscal year in which performance of 
                the financial assistance agreement commences, but not 
                including amounts distributed in accordance with 
                subparagraph (D). The total amount of financial 
                assistance received by recipients of financial 
                assistance in a State under any provision of this 
                paragraph shall not exceed the amount of matching funds 
                from sources other than the Federal Government, as 
                required under paragraph (1).
                  (C) 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 chapter, as follows:
                          (i) Not less than $81,500,000 and not more 
                        than $90,000,000 made available.--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) Less than $81,500,000 made available.--
                        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) More than $90,000,000 made available.--
                        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.
                  (D) Distributions.--Subject to subparagraph (C), if 
                qualified entities in any State do not apply for, or 
                use the full funding eligibility for the State for a 
                fiscal year, the Administrator shall distribute the 
                remaining funds as follows:
                          (i) Amount less than the amount received in 
                        fiscal year 2000.--If the amount of financial 
                        assistance to any State is less than the amount 
                        received by recipients of financial assistance 
                        in that State in fiscal year 2000, the 
                        Administrator shall distribute the remaining 
                        funds, on a pro rata basis, based on the 
                        percentage of shortage of each such State, as 
                        compared with the total amount of such 
                        remaining funds available, to the extent 
                        necessary to increase the amount of the 
                        financial assistance to the amount received by 
                        recipients of financial assistance in that 
                        State in fiscal year 2000, or until such funds 
                        are exhausted, whichever first occurs.
                          (ii) Remaining amount.--If any funds remain 
                        after application of clause (i), the remaining 
                        amount may be distributed as supplemental 
                        financial assistance to applicants in any 
                        State, as the Administrator determines, in the 
                        discretion of the Administrator, to be 
                        appropriate, after consultation with the 
                        Association.
                  (E) Use of amounts.--
                          (i) In general.--Of the amounts made 
                        available in any fiscal year to carry out this 
                        chapter--
                                  (I) not more than $500,000 may be 
                                used by the Administrator to pay 
                                expenses described in paragraphs (2) to 
                                (4) of section 10903(a) of this title; 
                                and
                                  (II) not more than $500,000 may be 
                                used by the Administrator to pay the 
                                examination expenses described in 
                                section 10903(a)(5) of this title.
                          (ii) Limitation.--No funds described in 
                        clause (i) may be used for examination expenses 
                        under section 10903(a)(5) of this title if the 
                        use would reduce the amount of financial 
                        assistance made available under subparagraph 
                        (A)(i) 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 program) or 
                        would further reduce the amount of such 
                        financial assistance below that amount.
                  (F) Exclusions.--Financial assistance provided to 
                grant recipients in a State by the Administrator or 
                another Federal agency to carry out subsection (j) or 
                section 27104(b)(7) of this title, or for supplemental 
                financial assistance under subparagraph (D)(ii) of this 
                paragraph, shall not be included in the calculation of 
                maximum funding for a State under subparagraph (B) of 
                this paragraph.
  (h) Portable Assistance for Startup and Sustainability Non-Matching 
Financial Assistance Programs.--
          (1) In general.--From the funds appropriated under section 
        10903(h) of this title, the Administrator shall reserve not 
        less than $1,000,000 for each fiscal year to develop portable 
        assistance for startup and sustainability non-matching 
        financial assistance 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 downsizing or closing that has resulted in the loss of 
        jobs or small business instability.
          (2) Maximum amount.--Non-matching financial assistance under 
        this subsection shall not exceed $100,000.
          (3) Use.--Non-matching financial assistance under this 
        subsection shall be used for small business development center 
        personnel expenses and related small business programs and 
        services.
  (i) Federal Contracts With Small Business Development Centers.--
          (1) In general.--Subject to paragraph (2), a small business 
        development center may enter into a contract with a Federal 
        agency to provide specific assistance to small business 
        concerns.
          (2) Contract prerequisites.--
                  (A) In general.--Before bidding on a contract under 
                paragraph (1), a small business development center 
                shall receive approval from the Associate Administrator 
                of the subject and general scope of the contract.
                  (B) Approval.--Approval of a contract under paragraph 
                (1) shall be based on a determination that--
                          (i) the contract will provide assistance to 
                        small business concerns; and
                          (ii) performance of the contract will not 
                        hinder the small business development center in 
                        carrying out the terms of the financial 
                        assistance agreement received by the small 
                        business development center from the 
                        Administrator.
          (3) Exemption from matching requirement.--A contract under 
        this subsection shall not be subject to the matching funds or 
        eligibility requirements of subsection (g).
          (4) Nonapplicability to certain contracting goals.--
        Notwithstanding any other provision of law, a contract for 
        assistance under this subsection shall not be applied to a 
        Federal agency's contracting goal under section 25106 of this 
        title for small business concerns owned and controlled by 
        socially and economically disadvantaged individuals, small 
        business concerns owned and controlled by women, or other small 
        business concerns.
  (j) Additional Financial Assistance.--
          (1) In general.--A qualified entity that is funded by the 
        Administrator as a small business development center may apply 
        to the Administrator for additional financial assistance to be 
        used solely to assist, as provided in paragraphs (2) to (7) of 
        section 27104(b), in--
                  (A) the development and enhancement of exports by 
                small business concerns;
                  (B) technology transfer; and
                  (C) 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 
                affected by base closings or military or corporate 
                downsizing or in rural or underserved communities.
          (2) Compliance requirement.--An applicant applying for 
        additional financial assistance under paragraph (1) shall 
        comply with all of the provisions of this chapter, including 
        providing matching funds.
          (3) Funding.--Funding under this subsection shall be 
        effective for any fiscal year to the extent provided in advance 
        in appropriations Acts.
          (4) Limitation on amount of grant.--No recipient of funds 
        under this subsection shall receive financial assistance that 
        would exceed its pro rata share of a $15,000,000 program based 
        on the populations to be served by the small business 
        development center as compared with the total population of the 
        United States.
          (5) Minimum state eligibility amount.--The minimum amount of 
        eligibility for recipients of financial assistance in any State 
        shall be $100,000.
          (6) Financial assistance to nonprofit entities.--
                  (A) In general.--In a State described in subparagraph 
                (B), the Administrator may provide financial assistance 
                to a nonprofit entity in the State to carry out the 
                activities specified in this subsection.
                  (B) States.--A State referred to in subparagraph (A) 
                is a State in which--
                          (i) the Administrator has not provided 
                        financial assistance under subsection (a); or
                          (ii) no application for financial assistance 
                        has been made by a small business development 
                        center under this subsection within 60 days 
                        after the later of--
                                  (I) the effective date of a financial 
                                assistance agreement under subsection 
                                (a) to the small business development 
                                center; or
                                  (II) the date on which the 
                                Administrator notifies the financial 
                                assistance recipient funded under 
                                subsection (a) that funds are available 
                                for applications for financial 
                                assistance under this subsection.
                  (C) Matching funds.--A nonprofit entity that receives 
                financial assistance under this paragraph shall comply 
                with the matching funds requirement of subsection (g).
                  (D) Appropriations.--Financial assistance under this 
                paragraph shall be effective for any fiscal year only 
                to the extent provided in advance in an appropriations 
                Act.
                  (E) Pro rata share.--The amount of financial 
                assistance provided under this paragraph in a State 
                shall be limited to the pro rata share provisions of 
                paragraph (4).
  (k) Privacy Requirements.--
          (1) 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 chapter without the consent of the 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 agency or 
                State agency; or
                  (B) the Administrator considers such a disclosure to 
                be necessary for the purpose of conducting a financial 
                audit of a small business development center.
          (2) Limitation.--A disclosure under this paragraph (1)(B) 
        shall be limited to the information necessary for an audit.
          (3) Use of information by the administrator.--This chapter 
        does not--
                  (A) restrict access by the Administrator to program 
                activity data; or
                  (B) preclude the Administrator from using client 
                information to conduct client surveys.
          (4) Regulations.--
                  (A) In general.--The Administrator shall issue 
                regulations to establish standards--
                          (i) for disclosures with respect to financial 
                        audits under paragraph (1)(B); and
                          (ii) for client surveys under paragraph 
                        (3)(B), including standards for oversight of 
                        such surveys and for dissemination and use of 
                        client information.
                  (B) Maximum privacy protection.--Regulations under 
                this paragraph, shall, to the extent practicable, 
                provide for the maximum amount of privacy protection.
                  (C) Inspector general.--Until the effective date of 
                regulations under this paragraph, any client survey and 
                the use of such information shall be approved by the 
                Inspector General of the Administration, who shall 
                include such approval in a semiannual report.
Sec. 27103. Plans
  (a) Provision of Financial Assistance Consistent With Area Plan.--
Financial assistance shall not be made available to a qualified entity 
if approving the assistance would be inconsistent with a plan for the 
area of a State in which service is to be provided that has been 
adopted by an agency recognized by the State as authorized to adopt an 
area plan and approved by the Administrator in accordance with 
standards and requirements established under this chapter.
  (b) Plan.--
          (1) In general.--A qualified entity may apply to participate 
        in the small business development center program by submitting 
        to the Administrator for approval a plan that--
                  (A) identifies the entities authorized under this 
                chapter to participate in the small business 
                development center program;
                  (B) identifies the geographic area to be served;
                  (C) describes the services that the applicant would 
                provide and the method for delivering the services;
                  (D) includes a budget; and
                  (E) includes any other information and assurances 
                that the Administrator may require to ensure that the 
                qualified entity will carry out the activities eligible 
                for assistance.
          (2) Action by the administrator.--
                  (A) In general.--The Administrator may approve, 
                conditionally approve, or reject a qualified entity 
                plan or combination of plans submitted.
                  (B) Review.--In all cases, the Administrator shall 
                review a qualified entity plan--
                          (i) for conformity with an area plan approved 
                        under subsection (a); and
                          (ii) with a view toward providing small 
                        business concerns with the most comprehensive 
                        and coordinated assistance in the State or part 
                        of a State to be served.
  (c) Assistance Outside the State.--The Administrator may permit a 
small business development center to provide advice, information, and 
assistance, as described in section 27104 of this title, to small 
business concerns located outside the State in which the small business 
development center is located, but only to the extent that the small 
business concerns are located within close geographical proximity to 
the small business development center, as determined by the 
Administrator.
Sec. 27104. Services
  (a) In General.--A small business development center shall assist 
small business concerns 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.
  (b) Services To Be Provided.--Services provided by a small business 
development center shall include--
          (1) furnishing one-to-one individual counseling to small 
        business concerns, including--
                  (A) working with individuals to increase awareness of 
                basic credit practices and credit requirements;
                  (B) working with individuals to develop business 
                plans, financial packages, credit applications, and 
                contract proposals;
                  (C) working with the Administrator to develop and 
                provide informational tools for use in working with 
                individuals on pre-business startup planning, existing 
                business expansion, and export planning; and
                  (D) working with individuals referred by the local 
                offices of the Administration and participating 
                lenders;
          (2) assisting in technology transfer, research and 
        development (including applied research), and coupling from 
        existing sources to small business concerns, including--
                  (A) working to increase the access of small business 
                concerns to the capabilities of automated flexible 
                manufacturing systems;
                  (B) 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
                  (C) exploring the viability of developing shared 
                production facilities, under appropriate circumstances;
          (3)(A) in cooperation with the Department of Commerce and 
        other relevant Federal agencies, actively assisting small 
        business concerns in exporting by--
                  (i) identifying and developing potential export 
                markets for small business concerns;
                  (ii) facilitating export transactions for small 
                business concerns;
                  (iii) developing linkages between small business 
                concerns and prescreened foreign buyers;
                  (iv) assisting small business concerns in 
                participating in international trade shows;
                  (v) assisting small business concerns in obtaining 
                export financing; and
                  (vi) facilitating the development or reorientation of 
                marketing and production strategies; and
          (B) where appropriate, working with the Administrator in 
        cooperation with the State to establish a State international 
        trade center for the purposes described in subparagraph (A);
          (4)(A) developing a program in conjunction with the Export-
        Import Bank of the United States and local and regional 
        Administration offices that will enable the small business 
        development center to serve as an information network and to 
        assist small business concern applicants for financing programs 
        of the Export-Import Bank of the United States; and
          (B) otherwise identifying and helping to make available 
        export financing programs to small business concerns;
          (5) 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 concerns doing business, or 
        attempting to develop business, in foreign markets;
          (6) cooperating with the Department of Commerce and other 
        relevant Federal agencies to increase access to available 
        export market information systems, including the Commercial 
        Information Management System;
          (7) assisting small business concerns in developing and 
        implementing 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 small business concerns' business base 
        due to the actual or projected termination (or reduction) of a 
        Department of Defense program or a contract in support of a 
        Department of Defense program by--
                  (A) 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 the facility or to the military and civilian 
                        personnel stationed or working at the facility; 
                        and
                          (ii) the termination (or reduction) of a 
                        Department of Defense program (or contracts 
                        under a Department of Defense program) on the 
                        small business concerns participating in the 
                        program as a prime contractor, subcontractor, 
                        or supplier at any tier;
                  (B) developing, in conjunction with appropriate 
                Federal, State, and local governmental entities and 
                private sector organizations, the parameters of a 
                transition adjustment program adaptable to the needs of 
                individual small business concerns;
                  (C) conducting appropriate programs to inform the 
                affected small business community regarding the 
                anticipated adverse impacts identified under 
                subparagraph (A) and the economic adjustment assistance 
                available to small business concerns; and
                  (D) assisting small business concerns in developing 
                and implementing an individualized transition business 
                plan;
          (8)(A) maintaining current information concerning Federal, 
        State, and local regulations that affect small business 
        concerns and counsel small business concerns on methods of 
        compliance; and
          (B) providing counseling and technology development when 
        necessary to help small business concerns find solutions for 
        complying with environmental, energy, health, safety, and other 
        Federal, State, and local regulations;
          (9) coordinating and conducting research into technical and 
        general small business problems for which there are no ready 
        solutions;
          (10) providing and maintaining a comprehensive library that 
        contains current information and statistical data needed by 
        small business concerns;
          (11) 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 associates to help 
        address the various needs of the small business community;
          (12) conducting in-depth surveys for local small business 
        groups to develop general information regarding the local 
        economy and general small business strengths and weaknesses in 
        the locality;
          (13) in cooperation with the Department of Commerce, the 
        Administrator, and relevant Federal agencies, actively 
        assisting rural small business concerns in exporting by--
                  (A) identifying and developing potential export 
                markets for rural small business concerns;
                  (B) facilitating export transactions for rural small 
                business concerns;
                  (C) developing linkages between rural small business 
                concerns and prescreened foreign buyers;
                  (D) assisting rural small business concerns in 
                participating in international trade shows; and
                  (E) assisting rural small business concerns in 
                obtaining export financing and developing marketing and 
                production strategies;
          (14) assisting rural small business concerns in developing 
        marketing and production strategies that will enable rural 
        small business concerns to better compete in the domestic 
        market;
          (15) assisting rural small business concerns by--
                  (A) providing technical assistance needed by rural 
                small business concerns;
                  (B) making available managerial assistance to rural 
                small business concerns; and
                  (C) providing information and assistance in obtaining 
                financing for business startups and expansion;
          (16) in conjunction with the United States National Tourism 
        Organization, assist rural small business concerns in 
        developing the tourism potential of rural communities by--
                  (A) identifying the cultural, historic, recreational, 
                and scenic resources of rural communities;
                  (B) providing assistance to small business concerns 
                in developing tourism marketing and promotion plans 
                relating to tourism in rural areas; and
                  (C) assisting small business concerns in obtaining 
                capital for starting or expanding businesses primarily 
                serving tourists;
          (17) maintaining lists of local and regional private 
        consultants to whom small business concerns can be referred;
          (18) providing information to small business concerns 
        regarding compliance with regulatory requirements;
          (19) developing informational publications, establishing 
        resource centers of reference materials, and distributing 
        compliance guides published under section 212(a) of the Small 
        Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 
        601 note, Public Law 104-121);
          (20) providing small business concern 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 United States Export Assistance Center 
        program; and
          (21) providing information and assistance to small business 
        concerns with respect to establishing drug-free workplace 
        programs on or before October 1, 2006.
  (c) Upgrading and Modification of Services.--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.
  (d) Location.--
          (1) Proximity of service.--A small business development 
        center shall provide service as close as possible to small 
        business concerns by providing extension services and using 
        satellite locations when necessary.
          (2) Facilities and staff.--The facilities and staff of a 
        small business development center shall be located in such 
        places as to provide maximum accessibility and benefits to the 
        small business concerns that the small business development 
        center is intended to serve.
  (e) Other Programs.--To the extent possible, a small business 
development center shall make full use of other Federal and State 
government programs that are concerned with aiding small business 
concerns.
  (f) Staff.--A small business development center shall have a full-
time staff, including a full-time director who shall have the authority 
to make expenditures under the small business development center's 
budget and who shall manage the program activities.
  (g) Access.--A small business development center shall have access 
to--
          (1) business analysts to counsel, assist, and inform small 
        business clients;
          (2) technology transfer agents to provide state-of-art 
        technology to small business concerns through coupling with 
        national and regional technology data sources;
          (3) information specialists to assist in providing 
        information searches and referrals to small business;
          (4) part-time professional specialists to conduct research or 
        to provide counseling assistance whenever the need arises; and
          (5) laboratory facilities and adaptive engineering 
        facilities.
  (h) Use of Small Business Vendors.--A small business development 
center shall use and compensate as one of its resources qualified 
vendors that are small business concerns, including private management 
consultants, private consulting engineers, and private testing 
laboratories, to provide services as described in this section to small 
business concerns on behalf of the small business development center.
  (i) Cooperation in the Provision of Services.--In performing the 
services described in subsection (b), a small business development 
center shall work in close cooperation with the Administration's 
regional and local offices, the local small business community, and 
appropriate State and local agencies.
  (j) Information Sharing System.--
          (1) In general.--The Associate Administrator, in consultation 
        with the small business development centers, shall develop and 
        implement an information sharing system.
          (2) Financial assistance.--
                  (A) In general.--Subject to amounts approved in 
                advance in appropriations Acts, the Administrator may 
                provide grants or enter into cooperative agreements to 
                one or more small business development centers to carry 
                out this subsection.
                  (B) Duration.--Financial assistance under 
                subparagraph (A) shall be awarded for a period of not 
                more than 5 years.
                  (C) Matching funds.--The matching funds provisions of 
                section 27102 of this title shall not be applicable to 
                a grant or cooperative agreement under subparagraph 
                (A).
          (3) Functions.--The information sharing system shall--
                  (A) allow small business development centers 
                participating in the small business development center 
                program to exchange information about their programs; 
                and
                  (B) provide information central to technology 
                transfer.
Sec. 27105. Export enhancement plans
  (a) In General.--Where appropriate, a small business development 
center 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 business concerns located in the State.
  (b) State Office of International Trade.--An export enhancement plan 
may provide for--
          (1) the cofunding and staffing of a State office of 
        international trade within a small business development center, 
        using joint Federal and State funding; and
          (2) any other appropriate measures directed at improving the 
        export performance of small business concerns in the State.
Sec. 27106. Assistance from Federal laboratories
  (a) In General.--A laboratory that is operated and funded by the 
Federal Government shall cooperate with the Administrator in developing 
and establishing programs to support small business development centers 
by--
          (1) making facilities and equipment available;
          (2) providing experiment station capabilities in adaptive 
        engineering;
          (3) providing library and technical information processing 
        capabilities; and
          (4) providing professional staff for consulting.
  (b) Reimbursement.--The Administrator may reimburse a laboratory for 
the provision of services described in subsection (a).
Sec. 27107. Assistance from the National Science Foundation
  The National Science Foundation shall cooperate with the 
Administrator and with small business development centers in developing 
and establishing programs to support small business development 
centers.
Sec. 27108. Assistance from the National Aeronautics and Space 
                    Administration
  The National Aeronautics and Space Administration and regional 
technology transfer centers supported by the National Aeronautics and 
Space Administration shall cooperate with small business development 
centers participating in the small business development center program.
Sec. 27109. National Small Business Development Center Advisory Board
  (a) Establishment.--There is established a National Small Business 
Development Center Advisory Board (referred to in this section as the 
``Board'').
  (b) Membership.--
          (1) In general.--The Board shall consist of 9 members 
        appointed from civilian life by the Administrator.
          (2) Qualifications.--A member of the Board shall be a person 
        of outstanding qualifications known to be familiar and 
        sympathetic with small business needs and problems.
          (3) Representation.--Not more than 3 members of the Board 
        shall be from universities or their affiliates, and 6 members 
        shall be from small business concerns or associations 
        representing small business concerns.
          (4) Term.--A member of the Board shall serve a term of 3 
        years, with one-third of the members changing each year.
  (c) Chairman.--The Board shall elect a chairman.
  (d) Duties.--The Board shall advise, counsel, and confer with the 
Associate Administrator in carrying out the duties described in this 
chapter.
  (e) Meetings.--The Board shall meet at least semiannually and at the 
call of the Chairman of the Board.
  (f) Compensation.--A member of the Board shall be entitled to be 
compensated at the rate not in excess of the per diem equivalent of the 
maximum rate payable under section 5376 of title 5 for each day engaged 
in activities of the Board and shall be entitled to be reimbursed for 
expenses as a member of the Board.
Sec. 27110. Small business development center advisory boards
  (a) Establishment.--A small business development center shall 
establish an advisory board.
  (b) Chairman.--A small business development center advisory board 
shall elect a chairman.
  (c) Duties.--A small business development center advisory board shall 
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 the persons that may 
be eligible to receive assistance from, and how local and regional 
private consultants may participate with, the small business 
development center.
Sec. 27111. Program examination and accreditation
  (a) Examination.--The Administrator shall conduct a biennial 
programmatic and financial examination of each small business 
development center.
  (b) Accreditation.--The Administrator may provide financial support, 
by contract or otherwise, to the Association for the purpose of 
developing a small business development center accreditation program.
  (c) Extension or Renewal of Financial Agreements.--
          (1) In general.--In extending or renewing a financial 
        assistance agreement of a small business development center, 
        the Administrator shall consider the results of the examination 
        and accreditation program conducted under subsections (a) and 
        (b).
          (2) Accreditation requirement.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Administrator may not renew or extend a 
                financial assistance agreement with a small business 
                development center unless the small business 
                development center has been approved under the 
                accreditation program conducted under this section.
                  (B) Waiver.--The Associate Administrator may waive 
                the accreditation requirement on a showing that the 
                small business development center is making a good 
                faith effort to obtain accreditation.
Sec. 27112. Limitations on authority
  (a) Appropriations.--The authority to enter into financial assistance 
agreements under this chapter shall be in effect for a fiscal year only 
to the extent and in such amounts as are provided in advance in 
appropriations Acts.
  (b) Suspension, Termination, or Failure To Renew or Extend Financial 
Assistance Agreement.--After the Administrator enters into a financial 
assistance agreement with a qualified entity under this chapter, the 
Administrator shall not suspend, terminate, or fail to renew or extend 
the financial assistance agreement unless the Administrator provides 
the qualified entity with written notification stating the reasons for 
the suspension, termination, or failure to renew or extend and 
affording the qualified entity an opportunity for a hearing, appeal, or 
other administrative proceeding under chapter 5 of title 5.
  (c) Competition for Successor Financial Assistance Agreements.--If a 
financial assistance agreement with a qualified entity under this 
chapter is not renewed or extended, any award of a successor financial 
assistance agreement to another qualified entity under this chapter 
shall be made on a competitive basis.
  (d) No Other Funding.--The Administrator shall not fund any small 
business development center or variation of a small business 
development center except as authorized by this chapter.
Sec. 27113. Prohibition of fees for counseling service
  A small business development center shall not impose or otherwise 
collect a fee or other compensation in connection with the provision of 
counseling service under this chapter.
Sec. 27114. Veterans assistance and services program
  (a) In General.--A small business development center may apply for a 
grant under this section to carry out a veterans assistance and 
services program.
  (b) Elements of Program.--Under a program carried out with a grant 
under this subsection, a small business development center shall--
          (1) create a marketing campaign to promote awareness and 
        education of the services of the small business development 
        center that are available to veterans, and to target the 
        campaign toward veterans, service-disabled veterans, military 
        units, Federal agencies, and veterans organizations;
          (2) 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
          (3) 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.
  (c) Amount of Grants.--A grant under this section shall be for not 
less than $75,000 and not more than $250,000.
  (d) Funding.--Subject to amounts approved in advance in 
appropriations Acts, the Administration may make grants or enter into 
cooperative agreements to carry out this section.

              DIVISION J--WOMEN'S BUSINESS CENTER PROGRAM

              CHAPTER 273--WOMEN'S BUSINESS CENTER PROGRAM

Sec.
27301.  Definitions.
27302.  Financial assistance.
27303.  Conditions of participation.
27304.  Contract authority.
27305.  5-year period.
27306.  Criteria.
27307.  Program examination.
27308.  Suspension, termination, or failure to renew or extend financial 
          assistance.
27309.  Continued funding for women's business centers.
27310.  Privacy requirements.
27311.  Expedited acquisition.
Sec. 27301. Definitions
  In this chapter:
          (1) Assistant administrator.--The term ``Assistant 
        Administrator'' means the Assistant Administrator of the Office 
        of Women's Business Ownership.
          (2) Private nonprofit organization.--The term ``private 
        nonprofit organization'' means an entity that is described in 
        section 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. 
        501(c)) and exempt from taxation under section 501(a) of the 
        Code (26 U.S.C. 501(a)).
          (3) Women's business center site.--The term ``women's 
        business center site'' means the location of--
                  (A) a women's business center; or
                  (B) one or more women's business centers, established 
                in conjunction with another women's business center in 
                another location in a State or region--
                          (i) that reach a distinct population that 
                        would otherwise not be served;
                          (ii) the services of which are targeted to 
                        women; and
                          (iii) the scope, function, and activities of 
                        which are similar to those of the primary 
                        women's business center or centers in 
                        conjunction with which it was established.
Sec. 27302. Financial assistance
  (a) In General.--The Administrator may provide financial assistance 
to a private nonprofit organization to conduct a 5-year project for the 
benefit of small business concerns owned and controlled by women.
  (b) Forms of Assistance.--A project under subsection (a) shall 
provide--
          (1) assistance in matters relating to financing, including 
        training and counseling in--
                  (A) how to apply for and secure business credit and 
                investment capital;
                  (B) preparing and presenting financial statements; 
                and
                  (C) 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--
                  (A) identifying and segmenting domestic and 
                international market opportunities;
                  (B) preparing and executing marketing plans;
                  (C) developing pricing strategies;
                  (D) locating contract opportunities;
                  (E) negotiating contracts; and
                  (F) using varying public relations and advertising 
                techniques.
  (c) Appropriations.--The authority of the Administrator to agree to 
provide financial assistance shall be in effect for each fiscal year 
only to the extent and in the amounts as are provided in advance in 
appropriations Acts.
Sec. 27303. Conditions of participation
  (a) Non-Federal Contributions.--As a condition of receiving financial 
assistance under this chapter, a 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:
          (1) In the first and second years, one non-Federal dollar for 
        each 2 Federal dollars.
          (2) In the third, fourth, and fifth years, one non-Federal 
        dollar for each Federal dollar.
  (b) 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.
  (c) Form of Federal Contributions.--
          (1) In general.--Financial assistance under this chapter--
                  (A) may be made by grant, contract, or cooperative 
                agreement; and
                  (B) may be provided--
                          (i) in a lump sum or in installments; and
                          (ii) in advance or by reimbursement.
          (2) Partial disbursement before non-federal funds are 
        obtained.--The Administrator 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.
          (3) Failure to obtain non-federal funding.--If a recipient of 
        assistance fails to obtain the required non-Federal 
        contribution during a project--
                  (A) the recipient shall not be eligible thereafter 
                for advance disbursements--
                          (i) during the remainder of that project; or
                          (ii) for any other project for which the 
                        recipient is or may be funded by the 
                        Administrator; and
                  (B) before approving assistance to the recipient for 
                any other project, the Administrator shall--
                          (i) specifically determine whether the 
                        Administrator believes that the recipient will 
                        be able to obtain the requisite non-Federal 
                        funding; and
                          (ii) make a written finding stating the 
                        reasons for making the determination.
Sec. 27304. Contract authority
  (a) In General.--A women's business center may enter into a contract 
with a Federal agency to provide specific assistance to women and other 
underserved small business concerns.
  (b) Limitation.--Performance of a contract under subsection (a) 
should not hinder a women's business center in carrying out the terms 
of the grant, contract, or cooperative agreement received by the 
women's business center from the Administrator.
Sec. 27305. 5-year period
  (a) Submission of Plan.--An organization that applies for financial 
assistance under this chapter initially shall submit a 5-year plan to 
the Administrator on proposed fundraising and training activities.
  (b) Assistance Period.--An organization may receive financial 
assistance under this chapter for any one women's business center site 
for a maximum of 5 years.
Sec. 27306. Criteria
  (a) In General.--The Administrator shall evaluate and rank applicants 
in accordance with predetermined selection criteria that shall be 
stated in terms of relative importance.
  (b) Availability.--The criteria and their relative importance shall 
be made publicly available and stated in each solicitation for 
applications made by the Administrator.
  (c) Criteria Included.--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.
Sec. 27307. Program examination
  (a) In General.--The Administrator shall--
          (1) conduct an annual programmatic and financial examination 
        of each women's business center under which a women's business 
        center shall provide to the Administrator--
                  (A) an itemized cost breakdown of actual expenditures 
                for costs incurred during the preceding year; and
                  (B)(i) documentation regarding the amount of matching 
                assistance from non-Federal sources obtained and 
                expended by the women's business center during the 
                preceding year to meet the requirements of section 
                27303 of this title; and
                  (ii) with respect to any in-kind contributions 
                described in section 27303(b) of this title that were 
                used to satisfy the requirements of section 27303 of 
                this title, verification of the existence and valuation 
                of those contributions; and
          (2) 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.
  (b) Conditions for Continued Funding.--In determining whether to 
award a sustainability grant or renew financial assistance to a women's 
business center, the Administrator--
          (1) shall consider the results of the most recent examination 
        of the women's business center under subsection (a); and
          (2) may withhold the award or renewal if the Administration 
        determines that--
                  (A)(i) the women's business center has failed to 
                provide any information required to be provided under 
                subparagraph (A) or (B) of subsection (a)(1); or
                  (ii) the information provided by the women's business 
                center is inadequate; or
                  (B)(i) the women's business center has failed to 
                provide any information required to be provided by the 
                women's business center for purposes of the report of 
                the Administrator under section 10711 of this title; or
                  (ii) the information provided by the women's business 
                center is inadequate.
Sec. 27308. Suspension, termination, or failure to renew or extend 
                    financial assistance
  After the Administrator agrees to provide financial assistance to an 
applicant under this chapter, the Administrator shall not suspend, 
terminate, or fail to renew or extend the financial assistance unless 
the Administrator--
          (1) provides the applicant with written notification stating 
        the reasons for suspension, termination, or failure to renew or 
        extend; and
          (2) affords the applicant an opportunity for a hearing, 
        appeal, or other administrative proceeding under chapter 5 of 
        title 5.
Sec. 27309. Continued funding for women's business centers
  (a) In General.--A nonprofit organization described in subsection (b) 
shall be eligible to receive, subject to subsection (c), a 3-year grant 
under this subsection.
  (b) Applicability.--A nonprofit organization described in this 
subsection is a nonprofit organization that has received funding under 
section 27302 of this title.
  (c) Application and Approval Criteria.--
          (1) Criteria.--Subject to paragraph (2), the Administrator 
        shall develop and publish criteria for the consideration and 
        approval of applications by nonprofit organizations under this 
        section.
          (2) Contents.--Except as otherwise provided in this section, 
        the conditions for participation in the grant program under 
        this section shall be the same as the conditions for 
        participation in the program under section 29(l) of the Small 
        Business Act (15 U.S.C. 656(l)) (as in effect on May 25, 2007).
          (3) 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 
        section and notify the applicant for each such application.
  (d) Award of Grants.--
          (1) 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 section.
          (2) Amount.--A grant under this section shall be for not more 
        than $150,000 for each year of the grant.
          (3) Federal share.--The Federal share of the cost of 
        activities funded under this section shall be not more than 50 
        percent.
          (4) Priority.--In allocating funds made available for grants 
        under this chapter, the Administrator shall give applications 
        under this section priority over first-time applications under 
        27302 of this title.
  (e) Renewal.--
          (1) In general.--The Administrator may renew a grant under 
        this section for additional 3-year periods, if the nonprofit 
        organization submits an application for renewal at such time, 
        in such manner, and accompanied by such information as the 
        Administrator may establish.
          (2) Unlimited renewals.--There shall be no limitation on the 
        number of times that a grant may be renewed under paragraph 
        (1).
Sec. 27310. Privacy requirements
  (a) 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 chapter without the consent of 
the individual or small business concern, unless--
          (1) the Administrator is ordered to make such a disclosure by 
        a court in any civil or criminal enforcement action initiated 
        by a Federal agency or State agency; or
          (2) 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 paragraph 
        shall be limited to the information necessary for the audit.
  (b) Use of Information by the Administrator.--This section does not--
          (1) restrict access by the Administrator to program activity 
        data; or
          (2) preclude the Administrator from using client information 
        (other than the information described in paragraph (1)) to 
        conduct client surveys.
  (c) Regulations.--The Administrator shall issue regulations to 
establish standards for requiring disclosures during a financial audit 
under subsection (a)(2).
Sec. 27311. 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 chapter, except that the Administrator shall ensure that all small 
business sources are provided a reasonable opportunity to submit 
proposals.

                  DIVISION K--VETERANS AND RESERVISTS

                  CHAPTER 275--VETERANS AND RESERVISTS

Sec.
27501.  Definitions.
27502.  Veterans business development interagency task force.
27503.  Advisory Committee on Veterans Business Affairs.
27504.  Participation in transition assistance program workshops.
27505.  Women veterans business training
27506.  Information collection.
27507.  Entrepreneurial training, counseling, and management assistance.
27508.  Outreach.
27509.  Memorandum of understanding with SCORE.
27510.  Memorandum of understanding with the Secretary of Veterans 
          Affairs and the Association.
27511.  Dissemination of information.
27512.  Memorandum of understanding with the Secretary of Labor and the 
          Secretary of Veterans Affairs.
27513.  Data collection.
27514.  National Veterans Business Development Corporation.
27515.  Relief from time limitations.
Sec. 27501. Definitions
  In this chapter:
          (1) Associate Administrator.--The term ``Associate 
        Administrator'' means the Associate Administrator for Veterans 
        Business Development under section 10304(b) of this title.
          (2) Advisory committee.--The term ``Advisory Committee'' 
        means the Veterans Business Development Advisory Committee 
        established under section 27503.
          (3) Corporation.--The term ``Corporation'' means the National 
        Veterans Business Development Corporation established under 
        section 27514.
          (4) Interagency Task force.--The term ``Interagency Task 
        Force'' means the veterans business development interagency 
        task force established under section 27502.
Sec. 27502. Veterans business development interagency task force
  (a) Establishment.--The President shall establish an interagency task 
force to coordinate the efforts of Federal agencies necessary to 
improve capital and business development opportunities for, and ensure 
achievement of the pre-established Federal contracting goals for, small 
business concerns owned and controlled by service-disabled veterans and 
small business concerns owned and controlled by veterans.
  (b) Membership.--The members of the Interagency Task Force shall 
include--
          (1) the Administrator, who shall serve as chairperson of the 
        Interagency Task Force;
          (2) a senior level representative from--
                  (A) the Department of Veterans Affairs;
                  (B) the Department of Defense;
                  (C) the Administration (in addition to the 
                Administrator);
                  (D) the Department of Labor;
                  (E) the Department of the Treasury;
                  (F) the General Services Administration;
                  (G) the Office of Management and Budget; and
          (3) 4 representatives from a veterans service organization or 
        military organization or association, selected by the 
        President.
  (c) Duties.--The Interagency Task Force shall--
          (1) consult regularly with veterans service organizations and 
        military organizations in performing the duties of the 
        Interagency Task Force; and
          (2) coordinate administrative and regulatory activities and 
        develop proposals relating to--
                  (A) improving capital access and capacity of small 
                business concerns owned and controlled by service-
                disabled veterans and small business concerns owned and 
                controlled by veterans through loans, surety bonding, 
                and franchising;
                  (B) ensuring achievement of the pre-established 
                Federal contracting goals for small business concerns 
                owned and controlled by service-disabled veterans and 
                small business concerns owned and controlled by 
                veterans through expanded mentor-protege assistance and 
                matching such small business concerns with contracting 
                opportunities;
                  (C) increasing the integrity of certifications of 
                status as a small business concern owned and controlled 
                by service-disabled veterans or a small business 
                concern owned and controlled by veterans;
                  (D) reducing paperwork and administrative burdens on 
                veterans in accessing business development and 
                entrepreneurship opportunities;
                  (E) increasing and improving training and counseling 
                services provided to small business concerns owned and 
                controlled by veterans; and
                  (F) making other improvements relating to the support 
                for veterans business development by the Federal 
                Government.
Sec. 27503. 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, which 
shall serve as an independent source of advice and policy 
recommendations to--
          (1) the Administrator;
          (2) the Associate Administrator;
          (3) Congress;
          (4) the President; and
          (5) other United States policymakers.
  (b) Membership.--
          (1) In general.--The Committee shall be composed of 15 
        members appointed by the Administrator, of whom--
                  (A) 8 shall be veterans who are owners of small 
                business concerns; and
                  (B) 7 shall be representatives of veterans 
                organizations.
          (2) Political affiliation.--Not more than 8 members of the 
        Committee shall be of the same political party as the 
        President.
          (3) Prohibition of federal employment.--
                  (A) In general.--Except as provided in subparagraph 
                (B), no member of the Advisory Committee may serve as 
                an officer or employee of the United States.
                  (B) Exception.--A member of the Advisory Committee 
                who accepts a position as an officer or employee of the 
                United States after the date of the member's 
                appointment to the Advisory Committee may continue to 
                serve on the Advisory Committee for not more than 30 
                days after accepting the position.
          (4) Term of service.--The term of service of a member of the 
        Advisory Committee shall be 3 years.
          (5) Vacancies.--The Administrator shall fill any vacancies on 
        the membership of the Advisory Committee not later than 30 days 
        after the date on which the vacancy occurs.
          (6) Chairperson.--
                  (A) In general.--The members of the Advisory 
                Committee shall elect one of the members to be 
                Chairperson of the Advisory Committee.
                  (B) Vacancies in office of chairperson.--Any vacancy 
                in the office of the Chairperson of the Advisory 
                Committee shall be filled by the Advisory Committee at 
                the first meeting of the Advisory Committee following 
                the date on which the vacancy occurs.
  (c) Duties.--The duties of the Advisory Committee shall be to--
          (1) review, coordinate, and monitor plans and programs, 
        developed in the public and private sectors, that affect the 
        ability of small business concerns owned and controlled by 
        veterans to obtain capital and credit and to access markets;
          (2) promote the collection of business information and survey 
        data as they relate to veterans and small business concerns 
        owned and controlled by veterans;
          (3) monitor and promote plans, programs, and operations of 
        Federal agencies 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; and
          (5) in cooperation with the 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 Advisory 
        Committee may hold such hearings, sit and act at such times and 
        places, take such testimony, and receive such evidence as the 
        Advisory Committee considers advisable to carry out its duties.
          (2) Information from federal agencies.--On request of the 
        Chairperson of the Advisory Committee, the head of any Federal 
        agency or the Government Accountability Office shall furnish 
        such information to the Advisory Committee as the Advisory 
        Committee considers to be necessary to carry out its duties.
          (3) Use of mails.--The Advisory Committee may use the United 
        States mails in the same manner and under the same conditions 
        as other Federal agencies.
          (4) Gifts.--The Advisory Committee may accept, use, and 
        dispose of gifts or donations of services or property.
  (e) Meetings.--
          (1) In general.--The Advisory Committee shall meet, not less 
        than 3 times per year, at the call of the Chairperson or at the 
        request of the Administrator.
          (2) Location.--Each meeting of the full Advisory Committee 
        shall be held at the headquarters of the Small Business 
        Administration in Washington, District of Columbia. The 
        Administrator shall provide suitable meeting facilities and 
        such administrative support as is necessary for each full 
        meeting of the Advisory Committee.
          (3) Task groups.--The Advisory Committee may from time to 
        time establish temporary task groups as may be necessary in 
        order to carry out the duties of the Advisory Committee.
  (f) Compensation and Expenses.--
          (1) No compensation.--Members of the Advisory Committee shall 
        serve without compensation for their service to the Advisory 
        Committee.
          (2) Expenses.--The members of the Advisory Committee shall be 
        reimbursed for travel and subsistence expenses in accordance 
        with section 5703 of title 5.
  (g) Report.--Not later than 30 days after the end of each fiscal 
year, the Committee shall submit to Congress and the President a report 
describing the activities of the Advisory Committee and any 
recommendations developed by the Advisory Committee for the promotion 
of small business concerns owned and controlled by veterans.
Sec. 27504. Participation in transition assistance program workshops
  (a) In General.--The Associate Administrator shall increase veteran 
outreach by ensuring that veteran business outreach centers regularly 
participate, on a nationwide basis, in the workshops of the transition 
assistance program of the Department of Labor.
  (b) Presentations.--In carrying out subsection (a), a veteran 
business outreach center may provide grants to entities located in 
transition assistance program locations to make presentations on the 
opportunities available from the Administrator for recently separating 
or separated veterans. A presentation under this subsection shall 
include, at a minimum, a description of the entrepreneurial and 
business training resources available from the Administrator.
  (c) Written Materials.--The Associate Administrator shall--
          (1) create written materials that provide comprehensive 
        information on self-employment and veterans entrepreneurship, 
        including information on resources available from the 
        Administrator on such topics; and
          (2) make the materials created under paragraph (1) available 
        to the Secretary of Labor for inclusion in the transition 
        assistance program manual.
  (d) Reports.--The Associate Administrator shall submit to Congress 
progress reports on the implementation of this section.
Sec. 27505. Women veterans business training
  The Associate Administrator shall--
          (1) compile information on existing resources available to 
        women veterans for business training, including resources for--
                  (A) vocational and technical education;
                  (B) general business skills, such as marketing and 
                accounting; and
                  (C) business assistance programs targeted to women 
                veterans; and
          (2) disseminate the information compiled under paragraph (1) 
        through veteran business outreach centers and women's business 
        centers.
Sec. 27506. Information collection
  (a) Identification.--The Secretary of Veterans Affairs, in 
consultation with the Assistant Secretary for Veterans' Employment and 
Training and the Administrator, shall engage in efforts each year to 
identify small business concerns owned and controlled by disabled 
veterans in the United States.
  (b) Provision of Information.--The Secretary of Veterans Affairs 
shall inform each small business concern identified under this section 
that information on Federal procurement is available from the 
Administrator.
Sec. 27507. Entrepreneurial training, counseling, and management 
                    assistance
  The Administrator shall take such actions as are necessary to ensure 
that small business concerns owned and controlled by disabled veterans 
have access to programs established under this subtitle that provide 
entrepreneurial training, business development assistance, counseling, 
and management assistance to small business concerns, including, among 
others, the small business development center program and the SCORE 
program.
Sec. 27508. Outreach
  (a) In General.--The Administrator, the Secretary of Veterans 
Affairs, and the Assistant Secretary of Labor for Veterans' Employment 
and Training shall develop and implement a program of comprehensive 
outreach to assist disabled veterans.
  (b) Activities.--The program under subsection (a) shall include 
business training and management assistance, employment and relocation 
counseling, and dissemination of information on veterans' benefits and 
veterans' entitlements.
Sec. 27509. Memorandum of understanding with the SCORE
  (a) In General.--The Administrator shall enter into a memorandum of 
understanding with SCORE to provide for--
          (1) the appointment by SCORE in its national office of an 
        individual to act as National Veterans Business Coordinator, 
        whose duties shall relate exclusively to veterans business 
        matters, and who shall be responsible for the establishment and 
        administration of a program to coordinate counseling and 
        training regarding entrepreneurship to veterans through the 
        chapters of SCORE throughout the United States;
          (2) the provision of assistance by SCORE in 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; and
          (3) the collection of statistics concerning services provided 
        by SCORE to service-disabled veterans and other veterans for 
        inclusion in each annual report published by the Administrator 
        under section 10713 of this title.
  (b) Resources.--The Administrator shall provide SCORE such resources 
as the Administrator determines to be necessary for SCORE to carry out 
the requirements of the memorandum of understanding specified under 
subsection (a).
Sec. 27510. Memorandum of understanding with the Secretary of Veterans 
                    Affairs and the Association
  (a) In General.--The Secretary of Veterans Affairs, the 
Administrator, and the head of the Association shall enter into a 
memorandum of understanding with respect to entrepreneurial assistance 
to service-disabled veterans and other veterans through small business 
development centers and facilities of the Department of Veterans 
Affairs.
  (b) Forms of Assistance.--Assistance provided under the memorandum of 
understanding shall include--
          (1) conducting of studies and research, and the distribution 
        of information generated by such studies and research, on the 
        formation, management, financing, marketing, and operation of 
        small business concerns by veterans;
          (2) provision of training and counseling to veterans 
        concerning the formation, management, financing, marketing, and 
        operation of small business concerns;
          (3) provision of management and technical assistance to the 
        owners and operators of small business concerns regarding 
        international markets, the promotion of exports, and the 
        transfer of technology;
          (4) provision of assistance and information to veterans 
        regarding procurement opportunities with Federal, State, and 
        local agencies, especially such agencies funded in whole or in 
        part with Federal funds;
          (5) establishment of an information clearinghouse to collect 
        and distribute information, including by electronic means, on 
        the assistance programs of Federal, State, and local 
        governments, and of the private sector, including information 
        on office locations, key personnel, telephone numbers, mail and 
        electronic addresses, and contracting and subcontracting 
        opportunities;
          (6) provision of internet or other distance learning academic 
        instruction for veterans in business subjects, including 
        accounting, marketing, and business fundamentals; and
          (7) compilation of a list of small business concerns owned 
        and controlled by service-disabled veterans that provide 
        products or services that could be procured by the United 
        States, and delivery of the list to each Federal agency.
  (c) List of Small Business Concerns.--The list described in 
subsection (b)(7)--
          (1) shall be delivered in hard copy and electronic form; and
          (2) shall include the name and address of each small business 
        concern owned and controlled by service-disabled veterans and 
        the products or services that it provides.
Sec. 27511. Dissemination of information
  Each fiscal year, the Secretary of Veterans Affairs shall--
          (1) in consultation with the Assistant Secretary of Labor for 
        Veterans' Employment and Training and the Administrator, 
        identify small business concerns owned and controlled by 
        veterans in the United States; and
          (2) inform each small business concern owned and controlled 
        by veterans identified under paragraph (1) that information on 
        Federal procurement is available from the Administrator, as 
        provided in section 24115(b) of this title.
Sec. 27512. Memorandum of understanding with the Secretary of Labor and 
                    the Secretary of Veterans Affairs
  (a) In General.--The Secretary of Labor, the Secretary of Veterans 
Affairs, and the Administrator 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.
  (b) Contents.--The memorandum of understanding shall include 
recommendations for expanding existing programs or establishing new 
programs to provide services described in subsection (a) or assistance 
to veterans (including service-disabled veterans).
Sec. 27513. Data collection
  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 collect data regarding the percentage and dollar 
value of prime contracts and subcontracts awarded to small business 
concerns owned and controlled by veterans (including small business 
concerns owned and controlled by service-disabled veterans).
Sec. 27514. National Veterans Business Development Corporation
  (a) Definitions.--In this section:
          (1) Advisory board.--The term ``Advisory Board'' means the 
        Professional Certification Advisory Board established under 
        subsection (i).
          (2) Board of directors.--The term ``Board of Directors'' 
        means the board of directors of the Corporation.
          (3) Corporation.--The term ``Corporation'' means the National 
        Veterans Business Development Corporation established by 
        subsection (b).
  (b) Establishment.--
          (1) In general.--There is established a federally chartered 
        corporation to be known as the National Veterans Business 
        Development Corporation, which shall be incorporated under the 
        laws of the District of Columbia and which shall have the 
        powers granted in this section.
          (2) Status.--Notwithstanding any other provision of law, the 
        Corporation is a private entity and not an agency, 
        instrumentality, authority, entity, or establishment of the 
        United States Government.
  (c) 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 with the formation and expansion of 
        small business concerns by working with and organizing public 
        and private resources, including those of--
                  (A) the Administration;
                  (B) the Department of Veterans Affairs, Department of 
                Labor, Department of Commerce, and Department of 
                Defense;
                  (C) SCORE;
                  (D) small business development centers; and
                  (E) the business development staffs of each Federal 
                agency.
  (d) Board of Directors.--
          (1) In general.--The management of the Corporation shall be 
        vested in a Board of Directors composed of 9 voting members and 
        3 nonvoting ex officio members.
          (2) Appointment of voting members.--The President shall, 
        after considering recommendations proposed by the Chairmen and 
        Ranking Members of the Committee on Small Business and 
        Entrepreneurship and Committee on Veterans Affairs of the 
        Senate and the Committee on Small Business and Committee on 
        Veterans Affairs of the House of Representatives, appoint 
        United States citizens to be voting members of the Board of 
        Directors, not more than 5 of whom shall be members of the same 
        political party.
          (3) Ex officio members.--The Administrator, the Secretary of 
        Defense, and the Secretary of Veterans Affairs shall serve as 
        the nonvoting ex officio members of the Board of Directors.
          (4) Chairperson.--The voting members of the Board of 
        Directors shall elect one such member to serve as chairperson 
        of the Board of Directors for a term of 2 years.
          (5) Terms of voting members.--
                  (A) In general.--A voting member of the Board of 
                Directors shall serve a term of 6 years.
                  (B) Unexpired terms.--A 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 
                takes office.
          (6) Vacancies.--A 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 or the Secretary of Veterans Affairs, and pending 
        the appointment of a successor, an acting appointee for the 
        vacancy may serve as an ex officio member.
          (7) 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 that service.
          (8) Fairness, impartiality, and nondiscrimination.--The Board 
        of Directors shall administer the affairs of the Corporation 
        fairly, impartially, and without discrimination.
          (9) 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.
          (10) Quorum.--Five voting members of the Board of Directors 
        shall constitute a quorum, but a lesser number may hold 
        hearings.
  (e) Corporate Powers.--The Corporation shall have the authority--
          (1) to adopt and use a corporate seal;
          (2) to have succession until dissolved by Act of Congress;
          (3) to make contracts or grants;
          (4) to sue and be sued and to file and defend against 
        lawsuits in Federal or State court;
          (5) to appoint, through the actions of the Board of 
        Directors, officers and employees of the Corporation, to define 
        their duties and responsibilities and fix their compensation, 
        and to dismiss at will such officers or employees;
          (6) to prescribe, through the actions of the Board of 
        Directors, bylaws not inconsistent with Federal law and the law 
        of the District of Columbia, 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 the Board of 
        Directors or duly authorized officers, all powers specifically 
        granted by this section, and such incidental powers as are 
        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; and
          (11) to use the United States mails in the same manner and 
        under the same conditions as the Federal agencies.
  (f) 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 the funds are disbursed under 
        paragraph (2).
          (2) Disbursement of funds.--Funds of the Corporation may be 
        disbursed only for purposes that--
                  (A) are approved by the Board of Directors by a 
                recorded vote with a quorum present; and
                  (B) are in accordance with the purposes of the 
                Corporation as specified in subsection (c).
  (g) Network of Information and Assistance Centers.--In carrying out 
the purposes of the Corporation specified in subsection (c), the 
Corporation shall establish and maintain a network of information and 
assistance centers for use by veterans and the public.
  (h) Professional Certification Advisory Board.--
          (1) In general.--Acting through the Board of Directors, the 
        Corporation shall establish a Professional Certification 
        Advisory Board to create uniform guidelines and standards for 
        the professional certification of members of the Armed Services 
        to aid in their efficient and orderly transition to civilian 
        occupations and professions and to remove potential barriers in 
        the areas of licensure and certification.
          (2) Membership.--
                  (A) In general.--The members of the Advisory Board--
                          (i) shall serve without compensation;
                          (ii) shall meet in the District of Columbia 
                        not less than quarterly; and
                          (iii) shall be appointed by the Board of 
                        Directors as provided in subparagraphs (B) and 
                        (C).
                  (B) Private sector members.--The Board of Directors 
                shall appoint not fewer than 7 members for terms of 2 
                years to represent private sector organizations and 
                associations, including the American Association of 
                Community Colleges, the Society for Human Resource 
                Managers, the Coalition for Professional Certification, 
                the Council on Licensure and Enforcement, and the 
                American Legion.
                  (C) Public sector members.--The Board of Directors 
                shall--
                          (i) invite public sector members to serve at 
                        the discretion of Federal agencies;
                          (ii) encourage the participation of the Under 
                        Secretary of Defense for Personnel and 
                        Readiness;
                          (iii) encourage the participation of two 
                        officers from each branch of the Armed Forces 
                        to represent the Training Commands of their 
                        branch; and
                          (iv) seek the participation and guidance of 
                        the Assistant Secretary of Labor for Veterans' 
                        Employment and Training.
  (i) Annual Reports.--On or before October 1 of each year, the Board 
of Directors shall submit to the President and Congress a report that--
          (1) describes the activities and accomplishments of the 
        Corporation for the preceding year;
          (2) includes 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; and
          (3) includes any recommendations by the Corporation for the 
        promotion of small business concerns owned and controlled by 
        veterans.
Sec. 27515. Relief from time limitations
  (a) In General.--Any time limitation on any qualification, 
certification, or period of participation imposed under this subtitle 
or subtitle I on any program that is available to small business 
concerns shall be extended for a small business concern that--
          (1) is owned and controlled by--
                  (A) a veteran who was called or ordered to active 
                duty on or after September 11, 2001, under a provision 
                of law specified in section 101(a)(13)(B) of title 10; 
                or
                  (B) 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 on or after September 11, 
                2001, under a provision of law specified in section 
                101(a)(13)(B) of title 10; and
          (2) was subject to the time limitation during that period of 
        active duty.
  (b) Duration.--On submission of proper documentation to the 
Administrator, the extension of a time limitation under subsection (a) 
shall be equal to the period of time that the veteran who owned or 
controlled a small business concern was on active duty as described in 
subsection (a).
  (c) Exception for Programs Subject to Federal Credit Reform Act of 
1990.--Subsections (a) and (b) do not apply to any program subject to 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

                       DIVISION X--MISCELLANEOUS

                       CHAPTER 291--MISCELLANEOUS

Sec.
51101.  Management assistance for small business concerns affected by 
          military operations.
51102.  Business grants and cooperative agreements.
51103.  Voluntary agreements and programs.
51104.  Paul D. Coverdell drug-free workplace program.
Sec. 29101. Management assistance for small business concerns affected 
                    by military operations
  (a) Definition of Period of Military Conflict.--In this section, the 
term ``period of military conflict'' means--
          (1) a period of war declared by Congress;
          (2) a period of national emergency declared by Congress or by 
        the President; or
          (3) a period of a contingency operation (as defined in 
        section 101(a) of title 10).
  (b) Assistance.--The Administrator shall use, as appropriate, the 
entrepreneurial development and management assistance programs of the 
Administration, 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.
Sec. 29102. Business grants and cooperative agreements
  (a) In General.--The Administrator may make grants to and enter into 
cooperative agreements with a coalition of private or public entities 
(or combination of private and public entities)--
          (1) to expand business-to-business relationships between 
        small business concerns and large business concerns; and
          (2) to provide businesses, directly or indirectly, with 
        online information and a database of companies that are 
        interested in mentor-protege programs or community-based, 
        statewide, or local business development programs.
  (b) Matching Requirement.--The Administrator may make a grant to a 
coalition of private entities under subsection (a) only if the 
coalition provides for activities described in paragraph (1) or (2) of 
subsection (a) in an amount (in kind or in cash) equal to the grant 
amount.
Sec. 29103. Voluntary agreements and programs
  (a) Consultation.--The President may consult with representatives of 
small business concerns with a view to encouraging the making by small 
business concerns with the approval of the President of voluntary 
agreements and programs to further the objectives of this subtitle.
  (b) Exemption From Certain Laws.--
          (1) In general.--No act or omission to act pursuant to this 
        subtitle that occurs while this subtitle is in effect, if 
        requested by the President pursuant to a voluntary agreement or 
        program approved under subsection (a) and determined by the 
        President to be in the public interest as contributing to the 
        national defense, shall be construed to be within the 
        prohibitions of the antitrust laws or the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.).
          (2) Requests.--A copy of a request intended to be within the 
        coverage of this section, and any modification or withdrawal of 
        such a request--
                  (A) shall be furnished to the Attorney General and 
                the Chairman of the Federal Trade Commission when made; 
                and
                  (B) shall be published in the Federal Register unless 
                publication of the request would, in the opinion of the 
                President, endanger the national security.
  (c) Delegation of Authority.--The authority granted in subsection (b) 
shall be delegated only--
          (1) to an official who for the purpose of the delegation 
        shall be required to be appointed by the President by and with 
        the advice and consent of the Senate;
          (2) on the condition that the official consult with the 
        Attorney General and the Chairman of the Federal Trade 
        Commission not less than 10 days before making any request or 
        finding under subsection (b); and
          (3) on the condition that the official obtain the approval of 
        the Attorney General to any request under subsection (b) before 
        making the request.
  (d) Withdrawal of Request or Finding by the President or of Approval 
by the Attorney General.--On withdrawal of any request or finding under 
this section, or on withdrawal by the Attorney General of approval of 
the voluntary agreement or program on which the request or finding is 
based, this section shall not apply to any subsequent act, or omission 
to act, by reason of the finding or request.
Sec. 29104. Paul D. Coverdell drug-free workplace program
  (a) Definitions.--In this section:
          (1) Drug-free workplace program.--The term ``drug-free 
        workplace program'' means a program that includes--
                  (A) a written policy, including a clear statement 
                of--
                          (i) expectations for workplace behavior;
                          (ii) prohibitions against reporting to work 
                        or working under the influence of illegal drugs 
                        or alcohol;
                          (iii) prohibitions against the use or 
                        possession of illegal drugs in the workplace; 
                        and
                          (iv) the consequences of violating those 
                        expectations and prohibitions;
                  (B)(i) drug and alcohol abuse prevention training for 
                a total of not less than 2 hours for each employee; and
                  (ii) additional voluntary drug and alcohol abuse 
                prevention training for employees who are parents;
                  (C)(i) testing of employees of a small business 
                concern for illegal drugs, with analysis conducted by a 
                drug testing laboratory certified by the Substance 
                Abuse and Mental Health Services Administration, or 
                approved by the College of American Pathologists for 
                forensic drug testing; and
                  (ii) a review of each positive test result by a 
                medical review officer who is not--
                          (I) an employee of that small business 
                        concern; or
                          (II) an employee or agent of, or any person 
                        having a financial interest in, the laboratory 
                        for which the illegal drug test results are 
                        reviewed;
                  (D) employee access to an employee assistance 
                program, including confidential assessment, referral, 
                and short-term problem resolution; and
                  (E) continuing alcohol and drug abuse prevention 
                education.
          (2) Eligible intermediary.--The term ``eligible 
        intermediary'' means an organization--
                  (A) that has not less than 2 years of experience in 
                carrying out drug-free workplace programs;
                  (B) that has a drug-free workplace policy in effect;
                  (C) that is located in a State, the District of 
                Columbia, or a territory of the United States; and
                  (D)(i) the purpose of which is--
                          (I) to develop comprehensive drug-free 
                        workplace programs or to supply drug-free 
                        workplace services; or
                          (II) to provide other forms of assistance and 
                        services to small business concerns; or
                  (ii) that is eligible to receive a grant under 
                chapter 2 of the National Narcotics Leadership Act of 
                1988 (21 U.S.C. 1521 et seq.).
          (3) Employee.--The term ``employee'' includes--
                  (A) an applicant for employment;
                  (B) an employee;
                  (C) a supervisor;
                  (D) a manager;
                  (E) an officer of a small business concern who is 
                active in management of the small business concern; and
                  (F) an owner of a small business concern who is 
                active in management of the small business concern.
          (4) Medical review officer.--The term ``medical review 
        officer'' means a licensed physician with knowledge of 
        substance abuse disorders.
  (b) Establishment.--
          (1) In general.--There is established a drug-free workplace 
        demonstration program, under which the Administrator may make 
        grants to, or enter into cooperative agreements or contracts 
        with, eligible intermediaries for the purpose of providing 
        financial and technical assistance to small business concerns 
        seeking to establish a drug-free workplace program.
          (2) Additional grants for technical assistance.--In addition 
        to grants under paragraph (1), the Administrator may make 
        grants to, or enter into cooperative agreements or contracts 
        with, any grantee for the purpose of providing, in cooperation 
        with one or more small business development centers, technical 
        assistance to small business concerns seeking to establish a 
        drug-free workplace program.
          (3) 2-year grants.--A grant made under this subsection shall 
        be for a period of 2 years, subject to an annual performance 
        review by the Administrator.
  (c) Promotion of Effective Practices of Eligible Intermediaries.--
          (1) Technical assistance and information.--The Administrator, 
        after consultation with the Director of the Center for 
        Substance Abuse and Prevention, shall provide technical 
        assistance and information to each eligible intermediary under 
        subsection (b) regarding the most effective practices in 
        establishing and carrying out drug-free workplace programs.
          (2) Evaluation of program.--
                  (A) Data collection and analysis.--
                          (i) In general.--An eligible intermediary 
                        receiving a grant under this section shall 
                        establish a system to collect and analyze 
                        information regarding the effectiveness of 
                        drug-free workplace programs established with 
                        assistance provided under this section through 
                        the intermediary, including information 
                        regarding any increase or decrease among 
                        employees in drug use, awareness of the adverse 
                        consequences of drug use, and absenteeism, 
                        injury, and disciplinary problems related to 
                        drug use.
                          (ii) Requirements.--The system shall conform 
                        to such requirements as the Administrator, 
                        after consultation with the Director of the 
                        Center for Substance Abuse and Prevention, may 
                        prescribe.
                          (iii) Limitation.--Not more than 5 percent of 
                        the amount of a grant made under subsection (b) 
                        shall be used by the eligible intermediary to 
                        carry out this paragraph.
                  (B) Method of evaluation.--
                          (i) In general.--The Administrator, after 
                        consultation with the Director of the Center 
                        for Substance Abuse and Prevention, shall 
                        provide technical assistance and guidance to 
                        each eligible intermediary receiving a grant 
                        under subsection (b) regarding the collection 
                        and analysis of information to evaluate the 
                        effectiveness of drug-free workplace programs 
                        established with assistance provided under this 
                        section, including the information referred to 
                        in paragraph (1).
                          (ii) Forms of assistance.--Assistance under 
                        clause (i) shall include--
                                  (I) the identification of additional 
                                information suitable for measuring the 
                                benefits of drug-free workplace 
                                programs to the small business concern 
                                and to the small business concern's 
                                employees; and
                                  (II) the identification of methods 
                                suitable for analyzing such 
                                information.
  (d) Contract Authority.--In carrying out this section, the 
Administrator may--
          (1) contract with public and private entities to provide 
        assistance related to carrying out the program under this 
        section; and
          (2) compensate those entities for provision of that 
        assistance.
  (e) Effect of Section.--Nothing in this section requires an employer 
that attends a program offered by an eligible intermediary to contract 
for any service offered by the eligible intermediary.

                   Subtitle III--Investment Division

                     DIVISION A--GENERAL PROVISIONS

                    CHAPTER 301--GENERAL PROVISIONS

Sec.
30101.  Definitions.
30102.  Implementation of subtitle.
Sec. 30101. Definitions
  In this subtitle:
          (1) Articles.--The term ``articles''--
                  (A) with respect to an incorporated body, means the 
                articles of incorporation if the incorporated body; and
                  (B) with respect to any other business entity, means 
                the functional equivalent of the articles of 
                incorporation of an incorporated body or other similar 
                documents specified by the Administrator.
          (2) Employee welfare benefit plan.--
                  (A) In general.--The term ``employee welfare benefit 
                plan'' has the meaning given the term in section 3 of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1002).
                  (B) Inclusions.--The term ``employee welfare benefit 
                plan'' includes any similar plan not covered by the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1001 et seq.) that has been established and that 
                is maintained by the Federal Government or any State or 
                political subdivision, or any agency or instrumentality 
                thereof, for the benefit of employees.
          (3) Energy saving debenture.--The term ``energy saving 
        debenture'' means a deferred interest debenture that--
                  (A) is issued at a discount;
                  (B) has a 5-year maturity or a 10-year maturity;
                  (C) requires no interest payment or annual charge for 
                the first 5 years;
                  (D) is restricted to energy saving qualified 
                investments; and
                  (E) is issued at no cost (as defined in section 502 
                of the Credit Reform Act of 1990 (2 U.S.C. 661a)) with 
                respect to purchasing and guaranteeing the debenture.
          (4) Energy saving qualified investment.--The term ``energy 
        saving qualified investment'' means an investment in a small 
        business concern that is primarily engaged in researching, 
        manufacturing, developing, or providing products, goods, or 
        services that reduce the use or consumption of nonrenewable 
        energy resources.
          (5) Leverage.--The term ``leverage'' includes--
                  (A) a debenture purchased or guaranteed by the 
                Administrator;
                  (B) a participating security purchased or guaranteed 
                by the Administrator; and
                  (C) a preferred security outstanding as of October 1, 
                1995.
          (6) License.--The term ``license'' means a license to operate 
        as a small business investment company issued by the 
        Administrator to a company under section 30302 of this title.
          (7) Licensee.--
                  (A) In general.--The term ``licensee'' means a 
                company that is issued a license.
                  (B) Inclusion.--The term ``licensee'' includes a 
                specialized small business investment company.
          (8) Limited liability company.--The term ``limited liability 
        company'' means a business entity that is organized and 
        operating in accordance with a State limited liability company 
        statute approved by the Administrator.
          (9) Long-term.--The term ``long-term'', used in connection 
        with equity capital or loan funds invested in a small business 
        concern or smaller enterprise, means a period of time of not 
        less than one year.
          (10) Low-income geographic area.--The term ``low-income 
        geographic area'' means--
                  (A) a population census tract (or in the case of an 
                area that is not tracted for population census tracts, 
                the equivalent county division, as defined by the 
                Bureau of the Census of the Department of Commerce for 
                purposes of defining poverty areas), if--
                          (i) the poverty rate for the population 
                        census tract is not less than 20 percent;
                          (ii)(I) in the case of a population census 
                        tract that is located within a metropolitan 
                        area, 50 percent or more of the households in 
                        the population census tract have an income 
                        equal to less than 60 percent of the area 
                        median gross income; or
                          (II) in the case of a population census tract 
                        that is not located within a metropolitan area, 
                        the median household income for the census 
                        tract does not exceed 80 percent of the 
                        statewide median household income; or
                          (iii) as determined by the Administrator 
                        based on objective criteria, a substantial 
                        population of low-income individuals reside, an 
                        inadequate access to investment capital exists, 
                        or other indications of economic distress exist 
                        in the population census tract; or
                  (B) an area located within--
                          (i) a HUBZone;
                          (ii) an urban empowerment zone or urban 
                        enterprise community (as designated by the 
                        Secretary of Housing and Urban Development); or
                          (iii) a rural empowerment zone or rural 
                        enterprise community (as designated by the 
                        Secretary of Agriculture).
          (11) Management official.--The term ``management official'' 
        means an officer, director, general partner, manager, employee, 
        agent, or other participant in the management or conduct of the 
        affairs of a licensee.
          (12) Member.--The term ``member'', with respect to a licensee 
        that is a limited liability company, means--
                  (A) a holder of an ownership interest in the limited 
                liability company; or
                  (B) a person otherwise admitted to membership in the 
                limited liability company.
          (13) Participating security.--The term ``participating 
        security'' includes--
                  (A) preferred stock, a preferred limited partnership 
                interest, or a similar instrument; and
                  (B) a debenture under the terms of which interest is 
                payable only to the extent of earnings.
          (14) Pension plan.--
                  (A) In general.--The term ``pension plan'' has the 
                meaning given the term in section 3 of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1002).
                  (B) Inclusions.--The term ``pension plan'' includes--
                          (i) a public or private pension or retirement 
                        plan subject to the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1001 et seq.); 
                        and
                          (ii) any similar plan not covered by that Act 
                        that is established and maintained by the 
                        Federal Government or any State or political 
                        subdivision, or any agency or instrumentality 
                        thereof, for the benefit of employees.
          (15) Private capital.--
                  (A) In general.--The term ``private capital'' means 
                the sum of--
                          (i)(I) the paid-in capital and paid-in 
                        surplus of a corporate licensee;
                          (II) the contributed capital of the partners 
                        of a partnership licensee; or
                          (III) the equity investment of the members of 
                        a limited liability company licensee; and
                          (ii) subject to subparagraph (B), unfunded 
                        binding commitments, from investors that meet 
                        criteria established by the Administrator, to 
                        contribute capital to the licensee.
                  (B) Limitation.--An unfunded commitment described in 
                subparagraph (A)(ii) may be counted as private capital 
                for purposes of approval by the Administrator of a 
                request for leverage, but leverage shall not be funded 
                based on such a commitment.
                  (C) Exclusions.--The term ``private capital'' does 
                not include--
                          (i) funds borrowed by a licensee from any 
                        source;
                          (ii) funds obtained through the issuance of 
                        leverage; or
                          (iii) funds obtained directly or indirectly 
                        from a Federal, State, or local government, or 
                        any government agency or instrumentality, 
                        except for--
                                  (I) funds obtained from the business 
                                revenues (excluding any governmental 
                                appropriation) of a federally chartered 
                                or government-sponsored corporation 
                                established before October 1, 1987;
                                  (II) funds invested by an employee 
                                welfare benefit plan or pension plan; 
                                and
                                  (III) qualified nonprivate funds (if 
                                the investors of the qualified 
                                nonprivate funds do not control, 
                                directly or indirectly, the management, 
                                board of directors, general partners, 
                                or members of the licensee).
          (16) Qualified hubzone small business concern.--The term 
        ``qualified HUBZone small business concern'' has the meaning 
        given the term in section 10101 of this title, except that the 
        exception stated in paragraph (18)(B) of this section applies.
          (17) Qualified nonprivate funds.--The term ``qualified 
        nonprivate funds'' means--
                  (A) funds directly or indirectly invested in an 
                applicant or licensee on or before August 16, 1982, by 
                any Federal agency, other than the Administration, 
                under a provision of law that explicitly requires the 
                inclusion of such funds in the definition of the term 
                ``private capital'';
                  (B) funds directly or indirectly invested in an 
                applicant or licensee by a Federal agency under a 
                provision of law enacted after September 4, 1992, that 
                explicitly requires the inclusion of those funds in the 
                definition of the term ``private capital''; and
                  (C) funds invested in an applicant or licensee by one 
                or more State or local government entities (including 
                any guarantee extended by such an entity) in an 
                aggregate amount that does not exceed 33 percent of the 
                private capital of the applicant or licensee.
          (18) Small business concern.--
                  (A) In general.--The term ``small business concern'' 
                has the meaning given the term in section 10101 of this 
                title, except as provided in subparagraph (B).
                  (B) Exception.--For purposes of this subtitle, in 
                determining whether a business concern is a small 
                business concern--
                          (i) an investment by a venture capital firm, 
                        investment company (including a small business 
                        investment company), employee welfare benefit 
                        plan, pension plan, trust, foundation, or 
                        endowment that is exempt from Federal income 
                        taxation--
                                  (I) shall not cause a business 
                                concern to be considered not 
                                independently owned and operated 
                                regardless of the allocation of control 
                                during the investment period under any 
                                investment agreement between the 
                                business concern and the entity making 
                                the investment;
                                  (II) shall be disregarded in 
                                determining whether a business concern 
                                satisfies size standards established 
                                under section 10101(70) of this title; 
                                and
                                  (III) shall be disregarded in 
                                determining whether a small business 
                                concern is a smaller enterprise; and
                          (ii) in determining whether a business 
                        concern satisfies net income standards 
                        established under section 10101(70) of this 
                        title, if the business concern is not required 
                        by law to pay Federal income taxes at the 
                        enterprise level, but is required to pass 
                        income through to the shareholders, partners, 
                        beneficiaries, or other equitable owners of the 
                        business concern, the net income of the 
                        business concern shall be determined by 
                        allowing a deduction in an amount equal to the 
                        sum of--
                                  (I) if the business concern is not 
                                required by law to pay State (and 
                                local, if any) income taxes at the 
                                enterprise level, the net income 
                                (determined without regard to this 
                                subparagraph), multiplied by the 
                                marginal State income tax rate (or by 
                                the combined State and local income tax 
                                rates, as applicable) that would apply 
                                if the business concern were a 
                                corporation; and
                                  (II) the net income (so determined) 
                                less any deduction for State (and 
                                local) income taxes calculated under 
                                subclause (I), multiplied by the 
                                marginal Federal income tax rate that 
                                would apply if the business concern 
                                were a corporation.
          (19) Small business concern owned and controlled by service-
        disabled veterans.--The term ``small business concern owned and 
        controlled by service-disabled veterans'' has the meaning given 
        the term in section 10101 of this title, except that the 
        exception stated in paragraph (18)(B) of this section applies.
          (20) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals.--The term ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' has the meaning given 
        the term in section 10101 of this title, except that the 
        exception stated in paragraph (18)(B) of this section applies.
          (21) Small business concern owned and controlled by 
        veterans.--The term ``small business concern owned and 
        controlled by veterans'' has the meaning given the term in 
        section 10101 of this title, except that the exception stated 
        in paragraph (18)(B) of this section applies.
          (22) Small business investment company.--The term ``small 
        business investment company'' means a licensee.
          (23) Smaller enterprise.--
                  (A) In general.--The term ``smaller enterprise'' 
                means a small business concern that, together with its 
                affiliates--
                          (i) has--
                                  (I) a net financial worth of not more 
                                than $6,000,000, as of the date on 
                                which assistance is provided under this 
                                subtitle to that small business 
                                concern; and
                                  (II) an average net income, for the 
                                2-year period preceding the date on 
                                which assistance is provided under this 
                                subtitle to that small business 
                                concern, of not more than $2,000,000, 
                                after Federal income taxes (excluding 
                                any carryover losses); or
                          (ii) satisfies the North American Industry 
                        Classification System size standards 
                        established by the Administrator for the 
                        industry in which the small business concern is 
                        primarily engaged.
                  (B) Determination of net income.--For purposes of 
                subparagraph (A)(i)(II), if a small business concern is 
                not required by law to pay Federal income tax at the 
                enterprise level, but is required to pass income 
                through to the shareholders, partners, beneficiaries, 
                or other equitable owners of the small business 
                concern, the net income of the small business concern 
                shall be determined by deducting from the gross income 
                of the small business concern--
                          (i) in the case of a small business concern 
                        that is required by law to pay State (and 
                        local, if any) income taxes at the enterprise 
                        level, the amount that is equal to the net 
                        income of the small business concern determined 
                        without regard to this clause, multiplied by 
                        the marginal Federal income tax rate that would 
                        apply if the small business concern were a 
                        corporation; or
                          (ii) in the case of a small business concern 
                        that is not required by law to pay State (and 
                        local, if any) income taxes at the enterprise 
                        level, the amount that is equal to the sum of--
                                  (I) the net income of the small 
                                business concern determined without 
                                regard to this clause, multiplied by 
                                the marginal State income tax rate (or 
                                by the combined State and local income 
                                tax rates, as applicable) that would 
                                apply if the small business concern 
                                were a corporation; and
                                  (II) the net income of the small 
                                business concern determined without 
                                regard to this clause, less any 
                                deduction for State (and local) income 
                                taxes calculated under subclause (I), 
                                multiplied by the marginal Federal 
                                income tax rate that would apply if the 
                                business concern were a corporation.
          (24) Specialized small business investment company.--The term 
        ``specialized small business investment company'' means a 
        company that--
                  (A) invests solely in small business concerns that 
                contribute to a well-balanced national economy by 
                facilitating ownership in small business concerns by 
                persons whose participation in the free enterprise 
                system is hampered because of social or economic 
                disadvantages;
                  (B) is organized or chartered under a State business 
                or nonprofit corporations statute or formed as a 
                limited partnership; and
                  (C) was licensed under subsection (d) of section 301 
                of the Small Business Act (15 U.S.C. 681(d)), as in 
                effect before September 30, 1996.
          (25) State.--The term ``State'' includes a State, the 
        territories and possessions of the United States, Puerto Rico, 
        and the District of Columbia.
          (26) Third party debt.--The term ``third party debt'' means 
        any indebtedness for borrowed money, other than indebtedness 
        owed to the Administrator.
Sec. 30102. Implementation of subtitle
  The Administrator--
          (1) shall carry out this subtitle so as to improve and 
        stimulate the national economy in general and the small 
        business segment of the economy in particular by establishing a 
        program to stimulate and supplement the flow of private equity 
        capital and long-term loan funds that--
                  (A) small business concerns need for the sound 
                financing of their business operations and for their 
                growth, expansion, and modernization; and
                  (B) are not available in adequate supply; and
          (2) in doing so--
                  (A) shall ensure the maximum participation of private 
                financing sources;
                  (B) shall ensure that any financial assistance 
                provided und