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106th Congress Rept. 106-206
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
VETERANS ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT ACT OF 1999
_______
June 29, 1999.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Talent, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 1568]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the
bill (H.R. 1568) to provide technical, financial, and
procurement assistance to veteran owned small businesses, and
for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans Entrepreneurship and Small
Business Development Act of 1999''.
SEC. 2. TABLE OF CONTENTS.
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
TITLE II--VETERANS BUSINESS DEVELOPMENT
Sec. 201. Veterans business development in the Small Business
Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
TITLE III--TECHNICAL ASSISTANCE
Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military
reservists' small businesses.
TITLE IV--FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Delta loan program.
Sec. 405. State development company program.
TITLE V--PROCUREMENT ASSISTANCE
Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
TITLE VI--REPORTS AND DATA COLLECTION
Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Administrator's order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
TITLE I--GENERAL PROVISIONS
SEC. 101. FINDINGS.
Congress finds the following:
(1) Veterans of the United States Armed Forces have been and
continue to be vital to the small business enterprises of the
United States.
(2) In serving the United States, veterans often faced great
risks to preserve the American dream of freedom and prosperity.
(3) The United States has done too little to assist veterans,
particularly service-disabled veterans, in playing a greater
role in the economy of the United States by forming and
expanding small business enterprises.
(4) Medical advances and new medical technologies have made
it possible for service-disabled veterans to play a much more
active role in the formation and expansion of small business
enterprises in the United States.
(5) The United States must provide additional assistance and
support to veterans to better equip them to form and expand
small business enterprises, thereby enabling them to realize
the American dream that they fought to protect.
SEC. 102. PURPOSE.
The purpose of this Act is to expand existing and establish new
assistance programs for veterans who own or operate small businesses.
This Act accomplishes this purpose by--
(1) expanding the eligibility for certain small business
assistance programs to include veterans;
(2) directing certain departments and agencies of the United
States to take actions that enhance small business assistance
to veterans; and
(3) establishing new institutions to provide small business
assistance to veterans or to support the institutions that
provide such assistance.
SEC. 103. DEFINITIONS.
(a) Small Business Act.--Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
``(q) Definitions Relating to Veterans.--In this Act, the
following definitions apply:
``(1) Service-disabled veteran.--The term `service-disabled
veteran' means a veteran with a disability that is service-
connected (as defined in section 101(16) of title 38, United
States Code).
``(2) Small business concern owned and controlled by service-
disabled veterans.--The term `small business concern owned and
controlled by service-disabled veterans' means a small business
concern--
``(A) not less than 51 percent of which is owned by 1
or more service-disabled veterans or, in the case of
any publicly owned business, not less than 51 percent
of the stock of which is owned by 1 or more service-
disabled veterans; and
``(B) the management and daily business operations of
which are controlled by 1 or more service-disabled
veterans or, in the case of a veteran with permanent
and severe disability, the spouse or permanent
caregiver of such veteran.
``(3) Small business concern owned and controlled by
veterans.--The term `small business concern owned and
controlled by veterans' means a small business concern--
``(A) not less than 51 percent of which is owned by 1
or more veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of
which is owned by 1 or more veterans; and
``(B) the management and daily business operations of
which are controlled by 1 or more veterans.
``(4) Veteran.--The term `veteran' has the meaning given the
term in section 101(2) of title 38, United States Code.''.
(b) Applicability to This Act.--In this Act, the definitions
contained in section 3(q) of the Small Business Act, as added by this
section, apply.
TITLE II--VETERANS BUSINESS DEVELOPMENT
SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS
ADMINISTRATION.
(a) In General.--Section 4(b)(1) of the Small Business Act (15 U.S.C.
633(b)(1)) is amended--
(1) in the 5th sentence, by striking ``four Associate
Administrators'' and inserting ``five Associate
Administrators''; and
(2) by inserting after the 5th sentence the following: ``One
such Associate Administrator shall be the Associate
Administrator for Veterans Business Development, who shall
administer the Office of Veterans Business Development
established under section 32.''.
(b) Office of Veterans Business Development; Associate
Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is
further amended--
(1) by redesignating section 32 as section 34; and
(2) by inserting after section 31 the following:
``SEC. 32. VETERANS PROGRAMS.
``(a) 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 for Veterans
Business Development (in this section referred to as the `Associate
Administrator') appointed under section 4(b)(1).
``(b) Associate Administrator for Veterans Business Development.--The
Associate Administrator--
``(1) shall be an appointee in the Senior Executive Service;
``(2) shall be responsible for the formulation, execution,
and promotion of policies and programs of the Administration
that provide assistance to small business concerns owned and
controlled by veterans and small business concerns owned and
controlled by service-disabled veterans. The Associate
Administrator shall act as an ombudsman for full consideration
of veterans in all programs of the Administration; and
``(3) shall report to and be responsible directly to the
Administrator.''.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
The Small Business Act (15 U.S.C. 631 et seq.) is further amended by
adding after section 32 (as added by this Act) the following:
``SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
``(a) Establishment.--There is established a federally chartered
corporation to be known as the National Veterans Business Development
Corporation (in this section referred to as the `Corporation') which
shall be incorporated under the laws of the District of Columbia and
which shall have the powers granted in this section.
``(b) Purposes of the Corporation.--The purposes of the Corporation
shall be--
``(1) to expand the provision of and improve access to
technical assistance regarding entrepreneurship for the
Nation's veterans; and
``(2) to assist veterans, including service-disabled
veterans, with the formation and expansion of small business
concerns by working with and organizing public and private
resources, including those of the Small Business
Administration, the Department of Veterans Affairs, the
Department of Labor, the Department of Commerce, the Department
of Defense, the Service Corps of Retired Executives (described
in section 8(b)(1)(B) of this Act), the Small Business
Development Centers (described in section 21 of this Act), and
the business development staffs of each department and agency
of the United States.
``(c) Board of Directors.--
``(1) In general.--The management of the Corporation shall be
vested in a Board of Directors composed of 9 voting members and
3 nonvoting ex officio members.
``(2) Appointment of voting members.--The President shall
appoint United States citizens to be voting members of the
Board of Directors as follows:
``(A) 1 from a list of individuals nominated by the
chairman of the Committee on Small Business of the
House of Representatives.
``(B) 1 from a list of individuals nominated by the
chairman of the Committee on Small Business of the
Senate.
``(C) 1 from a list of individuals nominated by the
ranking minority member of the Committee on Small
Business of the House of Representatives.
``(D) 1 from a list of individuals nominated by the
ranking minority members of the Committee on Small
Business of the Senate.
``(E) 1 from a list of individuals nominated by the
chairman of the Committee on Veterans' Affairs of the
House of Representatives.
``(F) 1 from a list of individuals nominated by the
chairman of the Committee on Veterans' Affairs of the
Senate.
``(G) 1 from a list of individuals nominated by the
ranking minority member of the Committee on Veterans'
Affairs of the House of Representatives.
``(H) 1 from a list of individuals nominated by the
ranking minority member of the Committee on Veterans'
Affairs of the Senate.
``(I) 1 of the President's own choosing.
``(3) Ex officio members.--The Administrator of the Small
Business Administration, the Secretary of Defense, and the
Secretary of Veterans Affairs shall serve as the nonvoting ex
officio members of the Board of Directors.
``(4) Chairperson.--The members of the Board of Directors
appointed under paragraph (2) shall elect one such member to
serve as chairperson of the Board of Directors for a term of 2
years.
``(5) Terms of appointed members.--
``(A) In general.--Each member of the Board of
Directors appointed under paragraph (2) shall serve a
term of 6 years, except as provided in subparagraph
(B).
``(B) Terms of initial appointees.--As designated by
the President at the time of appointment, of the
members first appointed--
``(i) 3 shall be for a term of 2 years; and
``(ii) 3 shall be for a term of 4 years.
``(C) Unexpired terms.--Any member of the Board of
Directors appointed to fill a vacancy occurring before
the expiration of the term for which the member's
predecessor was appointed shall be appointed only for
the remainder of the term. A member may serve after the
expiration of that member's term until a successor has
taken office.
``(6) Vacancies.--Any vacancy on the Board of Directors shall
be filled in the manner in which the original appointment was
made. In the case of a vacancy in the office of the
Administrator of the Small Business Administration or the
Secretary of Veterans Affairs, and pending the appointment of a
successor, an acting appointee for such vacancy may serve as an
ex officio member.
``(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 such service.
``(8) Impartiality and nondiscrimination.--The Board of
Directors shall administer the affairs of the Corporation
fairly and 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.--5 voting members of the Board of Directors
shall constitute a quorum, but a lesser number may hold
hearings.
``(d) Corporate Powers.--On October 1, 1999, the Corporation shall
become a body corporate and as such shall have the authority to do the
following:
``(1) To adopt and use a corporate seal.
``(2) To have succession until dissolved by an Act of
Congress.
``(3) To make contracts or grants.
``(4) To sue and be sued, and to file and defend against
lawsuits in State or Federal court.
``(5) To appoint, through the actions of its Board of
Directors, officers and employees of the Corporation, to define
their duties and responsibilities, fix their compensations, and
to dismiss at will such officers or employees.
``(6) To prescribe, through the actions of its Board of
Directors, bylaws not inconsistent with Federal law and the law
of the State of incorporation, regulating the manner in which
its general business may be conducted and the manner in which
the privileges granted to it by law may be exercised.
``(7) To exercise, through the actions of its Board of
Directors or duly authorized officers, all powers specifically
granted by the provisions of this section, and such incidental
powers as shall be necessary.
``(8) To solicit, receive, and disburse funds from private,
Federal, State and local organizations.
``(9) To accept and employ or dispose of in furtherance of
the purposes of this section any money or property, real,
personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise.
``(10) To accept voluntary and uncompensated services.
``(e) Corporate Funds.--
``(1) Deposit of funds.--The Board of Directors shall deposit
all funds of the Corporation in federally chartered and insured
depository institutions until such funds are disbursed under
paragraph (2).
``(2) Disbursement of funds.--Funds of the Corporation may be
disbursed only for purposes that are--
``(A) approved by the Board of Directors by a
recorded vote with a quorum present; and
``(B) in accordance with the purposes of the
Corporation as specified in subsection (b).
``(f) Network of Information and Assistance Centers.--In carrying out
the purpose described in subsection (b), the Corporation shall
establish and maintain a network of information and assistance centers
for use by veterans and the public.
``(g) Annual Report.--On or before October 1 of each year, the Board
of Directors shall transmit a report to the President and Congress
describing the activities and accomplishments of the Corporation for
the preceding year and the Corporation's findings regarding the efforts
of Federal, State and private organizations to assist veterans in the
formation and expansion of small business concerns.
``(h) Assumption of Duties of Advisory Committee.--On October 1,
2004, the Corporation established under this section shall assume the
duties, responsibilities, and authority of the Advisory Committee on
Veterans Affairs established under section 203 of this Act.
``(i) Use of Mails.--The Corporation may use the United States mails
in the same manner and under the same conditions as the departments and
agencies of the United States.
``(j) Professional Certification Advisory Board.--
``(1) In general.--Acting through the Board of Directors, the
Corporation shall establish a Professional Certification
Advisory Board to create uniform guidelines and standards for
the professional certification of members of the Armed Services
to aid in their efficient and orderly transition to civilian
occupations and professions and to remove potential barriers in
the areas of licensure and certification.
``(2) Membership.--The members of the Advisory Board shall
serve without compensation, shall meet in the District of
Columbia no less than quarterly, and shall be appointed by the
Board of Directors as follows:
``(A) Private sector members.--The Corporation shall
appoint not less than 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,
and the Council on Licensure and Enforcement.
``(B) Public sector members.--The Corporation shall
invite public sector members to serve at the discretion
of their departments or agencies and shall--
``(i) encourage the participation of the
Under Secretary of Defense for Personnel and
Readiness;
``(ii) encourage the participation of 2
officers from each branch of the Armed Forces
to represent the Training Commands of their
branch; and
``(iii) seek the participation and guidance
of the Assistant Secretary of Labor for
Veterans' Employment and Training.
``(k) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
the Corporation to carry out this section the following
amounts:
``(A) $2,000,000 for fiscal year 2000;
``(B) $4,000,000 for fiscal year 2001;
``(C) $4,000,000 for fiscal year 2002; and
``(D) $2,000,000 for fiscal year 2003.
``(2) Privatization.--The Corporation shall institute and
implement a plan to raise private funds and become a self-
sustaining corporation.''.
SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.
(a) In General.--There is established an advisory committee to be
known as the ``Advisory Committee on Veterans Business Affairs'' (in
this section referred to as the ``Committee''), which shall serve as an
independent source of advice and policy recommendations to--
(1) the Administrator of the Small Business Administration
(in this section referred to as the ``Administrator'');
(2) the Associate Administrator for Veterans Business
Development of the Small Business Administration;
(3) Congress;
(4) the President; and
(5) other United States policymakers.
(b) Membership.--
(1) In general.--The Committee shall be composed of 15
members, of whom--
(A) 8 shall be veterans who are owners of small
business concerns (within the meaning of the term under
section 3 of the Small Business Act (15 U.S.C. 632));
and
(B) 7 shall be representatives of veterans
organizations.
(2) Appointment.--
(A) In general.--The members of the Committee shall
be appointed by the Administrator in accordance with
this section.
(B) Initial appointments.--Not later than 90 days
after the date of enactment of this Act, the
Administrator shall appoint the initial members of the
Committee.
(3) Political affiliation.--Not more than 8 members of the
Committee shall be of the same political party as the
President.
(4) Prohibition on federal employment.--
(A) In general.--Except as provided in subsection
(B), no member of the Committee may serve as an officer
or employee of the United States.
(B) Exception.--A member of the Committee who accepts
a position as an officer or employee of the United
States after the date of the member's appointment to
the Committee may continue to serve on the Committee
for not more than 30 days after such acceptance.
(5) Term of service.--
(A) In general.--Subject to subparagraph (B), the
term of service of each member of the Committee shall
be 3 years.
(B) Terms of initial appointees.--As designated by
the Administrator at the time of appointment, of the
members first appointed--
(i) 6 shall be appointed for a term of 4
years; and
(ii) 5 shall be appointed for a term of 5
years.
(6) Vacancies.--The Administrator shall fill any vacancies on
the membership of the Committee not later than 30 days after
the date on which such vacancy occurs.
(7) Chairperson.--
(A) In general.--The members of the Committee shall
elect one of the members to be Chairperson of the
Committee.
(B) Vacancies in office of chairperson.--Any vacancy
in the office of the Chairperson of the Committee shall
be filled by the Committee at the first meeting of the
Committee following the date on which the vacancy
occurs.
(c) Duties.--The duties of the Committee shall be the following:
(1) Review, coordinate, and monitor plans and programs
developed in the public and private sectors, that affect the
ability of small business concerns owned and controlled by
veterans to obtain capital and credit and to access markets.
(2) Promote the collection of business information and survey
data as they relate to veterans and small business concerns
owned and controlled by veterans.
(3) Monitor and promote plans, programs, and operations of
the departments and agencies of the United States that may
contribute to the formation and growth of small business
concerns owned and controlled by veterans.
(4) Develop and promote initiatives, policies, programs, and
plans designed to foster small business concerns owned and
controlled by veterans.
(5) In cooperation with the National Veterans Business
Development Corporation, develop a comprehensive plan, to be
updated annually, for joint public-private sector efforts to
facilitate growth and development of small business concerns
owned and controlled by veterans.
(d) Powers.--
(1) Hearings.--Subject to subsection (e), the Committee may
hold such hearings, sit and act at such times and places, take
such testimony, and receive such evidence as the Committee
considers advisable to carry out its duties.
(2) Information from federal agencies.--Upon request of the
Chairperson of the Committee, the head of any department or
agency of the United States shall furnish such information to
the Committee as the Committee considers to be necessary to
carry out its duties.
(3) Use of mails.--The Committee may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the United States.
(4) Gifts.--The Committee may accept, use, and dispose of
gifts or donations of services or property.
(e) Meetings.--
(1) In general.--The Committee shall meet, not less than
three times per year, at the call of the Chairperson or at the
request of the Administrator.
(2) Location.--Each meeting of the full Committee shall be
held at the headquarters of the Small Business Administration
located in Washington, District of Columbia. The Administrator
shall provide suitable meeting facilities and such
administrative support as may be necessary for each full
meeting of the Committee.
(3) Task groups.--The Committee may, from time to time,
establish temporary task groups as may be necessary in order to
carry out its duties.
(f) Compensation and Expenses.--
(1) No compensation.--Members of the Committee shall serve
without compensation for their service to the Committee.
(2) Expenses.--The members of the Committee shall be
reimbursed for travel and subsistence expenses in accordance
with section 5703 of title 5, United States Code.
(g) Report.--Not later than 30 days after the end of each fiscal year
beginning after the date of enactment of this section, the Committee
shall transmit to Congress and the President a report describing the
activities of the Committee and any recommendations developed by the
Committee for the promotion of small business concerns owned and
controlled by veterans.
(h) Termination.--The Committee shall terminate its business on
September 30, 2004.
TITLE III--TECHNICAL ASSISTANCE
SEC. 301. SCORE PROGRAM.
(a) In General.--The Administrator of the Small Business
Administration shall enter into a memorandum of understanding with the
Service Core of Retired Executives (described in section 8(b)(1)(B) of
the Small Business Act (15 U.S.C. 637(b)(1)(B)) and in this section
referred to as ``SCORE'') to provide for the following:
(1) The 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 assistance of SCORE in the establishing and
maintaining a toll-free telephone number and an Internet
website to provide access for veterans to information about the
counseling and training regarding entrepreneurship available to
veterans through SCORE.
(3) The collection of statistics concerning services provided
by SCORE to veterans, including service-disabled veterans, for
inclusion in each annual report published by the Administrator
under section 4(b)(2)(B) of the Small Business Act (15 U.S.C.
633(b)(2)(B)).
(b) Resources.--The Administrator shall provide to SCORE such
resources as the Administrator determines necessary for SCORE to carry
out the requirements of the memorandum of understanding specified in
paragraph (1).
SEC. 302. ENTREPRENEURIAL ASSISTANCE.
Not later than 180 days after the date of enactment of this Act, the
Secretary of Veterans Affairs, the Administrator of the Small Business
Administration, and the head of the association formed pursuant to
section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A))
shall enter into a memorandum of understanding with respect to
entrepreneurial assistance to veterans, including service-disabled
veterans, through Small Business Development Centers (described in
section 21 of the Small Business Act (15 U.S.C. 648)) and facilities of
the Department of Veterans Affairs. Such assistance shall include the
following:
(1) Conducting of studies and research, and the distribution
of information generated by such studies and research, on the
formation, management, financing, marketing, and operation of
small business concerns by veterans.
(2) Provision of training and counseling to veterans
concerning the formation, management, financing, marketing, and
operation of small business concerns.
(3) Provision of management and technical assistance to the
owners and operators of small business concerns regarding
international markets, the promotion of exports, and the
transfer of technology.
(4) Provision of assistance and information to veterans
regarding procurement opportunities with Federal, State, and
local agencies, especially such agencies funded in whole or in
part with Federal funds.
(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.
(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 such list to each department and agency
of the United States. Such list shall be delivered in hard copy
and electronic form and shall include the name and address of
each such small business concern and the products or services
that it provides.
SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY
RESERVISTS' SMALL BUSINESSES.
(a) In General.--Section 8 of the Small Business Act (15 U.S.C. 637)
is amended by adding at the end the following:
``(l) Management Assistance for Small Businesses Affected by Military
Operations.--The Administration shall utilize, as appropriate, its
entrepreneurial development and management assistance programs,
including programs involving State or private sector partners, to
provide business counseling and training to any small business concern
adversely affected by the deployment of units of the Armed Forces of
the United States in support of a period of military conflict (as
defined in section 7(n)(1)).''.
(b) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendment made by this section,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
(c) Guidelines.--Not later than 30 days after the date of enactment
of this section, the Administrator of the Small Business Administration
shall issue such guidelines as the Administrator determines to be
necessary to carry out this section and the amendment made by this
section.
TITLE IV--FINANCIAL ASSISTANCE
SEC. 401. GENERAL BUSINESS LOAN PROGRAM.
(a) Definition of Handicapped Individual.--Section 3(f) of the Small
Business Act (15 U.S.C. 632(f)) is amended to read as follows:
``(f) For purposes of section 7 of this Act, the term `handicapped
individual' means an individual--
``(1) who has a physical, mental, or emotional impairment,
defect, ailment, disease, or disability of a permanent nature
which in any way limits the selection of any type of employment
for which the person would otherwise be qualified or
qualifiable; or
``(2) who is a service-disabled veteran.''.
(b) Authorization To Make Loans.--Section 7(a)(10) of the Small
Business Act (15 U.S.C. 636(a)(10)) is amended--
(1) by inserting ``guaranteed'' after ``provide''; and
(2) by inserting, ``, including service-disabled veterans,''
after ``handicapped individual''.
SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.
(a) Repayment Deferral for Active Duty Reservists.--Section 7 of the
Small Business Act (15 U.S.C. 636) is amended by adding at the end the
following:
``(n) Repayment Deferred for Active Duty Reservists.--
``(1) Definitions.--In this subsection:
``(A) Eligible reservist.--The term `eligible
reservist' means a member of a reserve component of the
Armed Forces ordered to active duty during a period of
military conflict.
``(B) Essential employee.--The term `essential
employee' means an individual who is employed by a
small business concern and whose managerial or
technical expertise is critical to the successful day-
to-day operations of that small business concern.
``(C) Period of military conflict.--The term `period
of military conflict' means--
``(i) a period of war declared by Congress;
``(ii) a period of national emergency
declared by Congress or by the President; or
``(iii) a period of a contingency operation,
as defined in section 101(a) of title 10,
United States Code.
``(D) Qualified borrower.--The term `qualified
borrower' means--
``(i) an individual who is an eligible
reservist and who received a direct loan under
subsection (a) or (b) before being ordered to
active duty; or
``(ii) a small business concern that received
a direct loan under subsection (a) or (b)
before an eligible reservist, who is an
essential employee, was ordered to active duty.
``(2) Deferral of direct loans.--
``(A) In general.--The Administration shall, upon
written request, defer repayment of principal and
interest due on a direct loan made under subsection (a)
or (b), if such loan was incurred by a qualified
borrower.
``(B) Period of deferral.--The period of deferral for
repayment under this paragraph shall begin on the date
on which the eligible reservist is ordered to active
duty and shall terminate on the date that is 180 days
after the date such eligible reservist is discharged or
released from active duty.
``(C) Interest rate reduction during deferral.--
Notwithstanding any other provision of law, during the
period of deferral described in subparagraph (B), the
Administration may, in its discretion, reduce the
interest rate on any loan qualifying for a deferral
under this paragraph.
``(3) Deferral of loan guarantees and other financings.--The
Administration shall--
``(A) encourage intermediaries participating in the
program under subsection (m) to defer repayment of a
loan made with proceeds made available under that
subsection, if such loan was incurred by a small
business concern that is eligible to apply for
assistance under subsection (b)(3); and
``(B) not later than 30 days after the date of
enactment of this subsection, establish guidelines to--
``(i) encourage lenders and other
intermediaries to defer repayment of, or
provide other relief relating to, loan
guarantees under subsection (a) and financings
under section 504 of the Small Business
Investment Act of 1958 that were incurred by
small business concerns that are eligible to
apply for assistance under subsection (b)(3),
and loan guarantees provided under subsection
(m) if the intermediary provides relief to a
small business concern under this paragraph;
and
``(ii) implement a program to provide for the
deferral of repayment or other relief to any
intermediary providing relief to a small
business borrower under this paragraph.''.
(b) Disaster Loan Assistance for Military Reservists' Small
Businesses.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting after the undesignated paragraph that begins
with ``Provided, That no loan'', the following:
``(3)(A) In this paragraph--
``(i) the term `essential employee' means an
individual who is employed by a small business concern
and whose managerial or technical expertise is critical
to the successful day-to-day operations of that small
business concern;
``(ii) the term `period of military conflict' has the
meaning given the term in subsection (n)(1); and
``(iii) the term `substantial economic injury' means
an economic harm to a business concern that results in
the inability of the business concern--
``(I) to meet its obligations as they mature;
``(II) to pay its ordinary and necessary
operating expenses; or
``(III) to market, produce, or provide a
product or service ordinarily marketed,
produced, or provided by the business concern.
``(B) The Administration may make such disaster loans (either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern that has
suffered or that is likely to suffer substantial economic
injury as the result of an essential employee of such small
business concern being ordered to active military duty during a
period of military conflict.
``(C) A small business concern described in subparagraph (B)
shall be eligible to apply for assistance under this paragraph
during the period beginning on the date on which the essential
employee is ordered to active duty and ending on the date that
is 90 days after the date on which such essential employee is
discharged or released from active duty.
``(D) Any loan or guarantee extended pursuant to this
paragraph shall be made at the same interest rate as economic
injury loans under paragraph (2).
``(E) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis, if the total amount outstanding and
committed to the borrower under this subsection would exceed
$1,500,000, unless such applicant constitutes a major source of
employment in its surrounding area, as determined by the
Administration, in which case the Administration, in its
discretion, may waive the $1,500,000 limitation.
``(F) For purposes of assistance under this paragraph, no
declaration of a disaster area shall be required.''.
(c) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendments made by this section,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
(d) Guidelines.--Not later than 30 days after the date of enactment
of this section, the Administrator of the Small Business Administration
shall issue such guidelines as the Administrator determines to be
necessary to carry out this section and the amendments made by this
section.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this section.
(2) Disaster loans.--The amendments made by subsection (b)
shall apply to economic injury suffered or likely to be
suffered as the result of a period of military conflict
occurring or ending on or after March 24, 1999.
SEC. 403. MICROLOAN PROGRAM.
Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C.
636(m)(1)(A)(i)) is amended by inserting ``veteran (within the meaning
of such term under section 3(q)),'' after ``low-income,''.
SEC. 404. DELTA LOAN PROGRAM.
Section 7(a)(21)(A) Small Business Act (15 U.S.C. 636(a)(21)(A)) is
amended in subclause (ii) by inserting ``or a veteran'' after
``qualified individual''.
SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment Act (15 U.S.C.
695(d)(3)) is amended--
(1) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (F), (G), and (H), respectively; and
(2) by inserting after subparagraph (D) the following:
``(E) expansion of small business concerns owned and
controlled by veterans, as defined in section 3(q) of
the Small Business Act (15 U.S.C. 632(q)), especially
service-disabled veterans, as defined in such section
3(q),''.
TITLE V--PROCUREMENT ASSISTANCE
SEC. 501. SUBCONTRACTING.
(a) Statement of Policy.--Section 8(d)(1) of the Small Business Act
(15 U.S.C. 637(d)(1)) is amended by inserting ``small business concerns
owned and controlled by service-disabled veterans,'' after ``small
business concerns,'' the first place it appears in the first and second
sentences.
(b) Contract Clause.--The contract clause specified in section
8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)) is amended as
follows:
(1) Subparagraph (A) of such clause is amended by inserting
``small business concerns owned and controlled by veterans,''
after ``small business concerns,'' the first place it appears
in the first and second sentences.
(2) Subparagraphs (E) and (F) of such clause are redesignated
as subparagraphs (F) and (G), respectively, and the following
new subparagraph is inserted after subparagraph (D) of such
clause:
``(E) The term `small business concern owned and controlled
by veterans' shall mean a small business concern--
``(i) which is at least 51 per centum owned by one or
more eligible veterans; or, in the case of any publicly
owned business, at least 51 per centum of the stock of
which is owned by one or more veterans; and
``(ii) whose management and daily business operations
are controlled by such veterans. The contractor shall
treat as veterans all individuals who are veterans
within the meaning of the term under section 3(q) of
the Small Business Act.''.
(3) Subparagraph (F) of such clause, as redesignated by
paragraph (2) of this subsection, is amended by inserting
``small business concern owned and controlled by veterans,''
after ``small business concern,'' the first place it appears.
(c) Conforming Amendments.--Section 8(d) of the Small Business Act
(15 U.S.C. 637(d)) is further amended by inserting ``small business
concerns owned and controlled by veterans,'' after ``small business
concerns,'' the first place it appears in paragraphs (4)(D), (4)(E),
(6)(A), (6)(C), (6)(F), and (10)(B).
SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.
(a) Government-Wide Participation Goals.--Subsection (g)(1) of
section 15 of the Small Business Act (15 U.S.C. 644) is amended--
(1) in the first sentence, by inserting ``small business
concerns owned and controlled by service disabled veterans,''
after ``small business concerns,'' the first place it appears;
(2) by inserting after the second sentence, the following:
``The Government-wide goal for participation by small business
concerns owned and controlled by service-disabled veterans
shall be established at not less than 5 percent of the total
value of all prime contract and subcontract awards for each
fiscal year.''; and
(3) in the second to last sentence, by inserting ``small
business concerns owned and controlled by service-disabled
veterans,'' after ``small business concerns,'' the first place
it appears.
(b) Agency Participation Goals.--Subsection (g)(2) of section 15 of
the Small Business Act (15 U.S.C. 644) is amended--
(1) in the first sentence, by inserting ``by small business
concerns owned and controlled by service-disabled veterans,''
after ``small business concerns,''; the first place it appears;
(2) in the second sentence, by inserting ``small business
concerns owned and controlled by service-disabled veterans,''
after ``small business concerns,'' the first place it appears;
and
(3) in the fourth sentence, by inserting ``small business
concerns owned and controlled by service-disabled veterans,
by'' after ``including participation by''.
TITLE VI--REPORTS AND DATA COLLECTION
SEC. 601. REPORTING REQUIREMENTS.
(a) Reports to Small Business Administration.--Subsection (h)(1) of
section 15 of the Small Business Act (15 U.S.C. 644) is amended by
inserting ``small business concerns owned and controlled by veterans
(including service-disabled veterans),'' after ``small business
concerns,'' the first place it appears.
(b) Reports to the President and Congress.--Subsection (h)(2) of
section 15 of the Small Business Act (15 U.S.C. 644) is amended--
(1) by inserting ``and Congress'' before the period at the
end of first sentence; and
(2) in subparagraphs (A), (D), and (E), by inserting ``small
business concerns owned and controlled by service-disabled
veterans,'' after ``small business concerns,'' the first place
it appears.
SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.
Section 303(e) of the Small Business Economic Policy Act of 1980 (15
U.S.C. 631b(e)) is amended--
(1) in paragraph (1), by striking ``and'' after the
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) small business concerns owned and controlled by
veterans, as defined in section 3(q) of the Small Business Act
(15 U.S.C. 632(q)), and small business concerns owned and
controlled by service-disabled veterans, as defined in such
section 3(q).''.
SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.
The Administrator of the Small Business Administration shall transmit
annually to the Committees on Small Business and Veterans Affairs of
the House of Representatives and the Senate a report on the needs of
small business concerns owned and controlled by veterans and small
business concerns owned and controlled by service-disabled veterans,
which shall include information on--
(1) the availability of Small Business Administration
programs for such small business concerns and the degree of
utilization of such programs by such small business concerns
during the preceding 12-month period, including statistical
information on such utilization as compared to the small
business community as a whole;
(2) the percentage and dollar value of Federal contracts
awarded to such small business concerns during the preceding
12-month period; and
(3) proposals to improve the access of such small business
concerns to the assistance made available by the United States.
SEC. 604. DATA AND INFORMATION COLLECTION.
(a) Information on Federal Procurement Practices.--The Administrator
of the Small Business Administration shall, for each fiscal year--
(1) collect information concerning the procurement practices
and procedures of each department and agency of the United
States having procurement authority;
(2) publish and disseminate such information to procurement
officers in all Federal agencies; and
(3) make such information available to any small business
concern requesting such information.
(b) Identification of Small Business Concerns Owned by Eligible
Veterans.--Each fiscal year, the Secretary of Veterans Affairs shall,
in consultation with the Assistant Secretary of Labor for Veterans'
Employment and Training and the Administrator of the Small Business
Administration, identify small business concerns owned and controlled
by veterans in the United States. The Secretary shall inform each small
business concern identified under this paragraph that information on
Federal procurement is available from the Administrator.
(c) Self-Employment Opportunities.--The Secretary of Labor, the
Secretary of Veterans Affairs, and the Administrator of the Small
Business Administration shall enter into a memorandum of understanding
to provide for coordination of vocational rehabilitation services,
technical and managerial assistance, and financial assistance to
veterans, including service-disabled veterans, seeking to employ
themselves by forming or expanding small business concerns. The
memorandum of understanding shall include recommendations for expanding
existing programs or establishing new programs to provide such services
or assistance to such veterans.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. ADMINISTRATOR'S ORDER.
The Administrator of the Small Business Administration shall
strengthen and reissue the Administrator's order regarding the 3d
sentence of section 4(b)(1) of the Small Business Act (15 U.S.C.
633(b)(1)), relating to nondiscrimination and special considerations
for veterans, and take all necessary steps to ensure that its
provisions are fully and vigorously implemented.
SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.
Section 202 of Public Law 94-305 (15 U.S.C. 634b) is amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) in paragraph (11), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(12) evaluate the efforts of each department and agency of
the United States, and of private industry, to assist small
business concerns owned and controlled by veterans, as defined
in section 3(q) of the Small Business Act (15 U.S.C. 632(q)),
and small business concerns owned and controlled by serviced-
disabled veterans, as defined in such section 3(q), and to
provide statistical information on the utilization of such
programs by such small business concerns, and to make
appropriate recommendations to the Administrator of the Small
Business Administration and to Congress in order to promote the
establishment and growth of those small business concerns.''.
SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.
(a) In General.--The Comptroller General shall conduct a study on
whether there would exist any additional risk or cost to the United
States if--
(1) up to 10 percent of the loans guaranteed under chapter 37
of title 38, United States Code, were made for the acquisition
or construction of fixed assets used in a trade or business
rather than for the construction or purchase of residential
buildings; and
(2) such loans for acquisition or construction of fixed
assets were for a term of not more than 10 years and the terms
regarding eligibility, loan limits, interest, fees, and down
payment were the same as for other loans guaranteed under such
chapter.
(b) Report.--
(1) In general.--Not later than 180 days after the enactment
of this Act, the Comptroller General shall transmit the report
described in subsection (a) to the Committees on Veterans'
Affairs and the Committees on Small Business of the House of
Representatives and the Senate.
(2) Contents of report.--The report required by paragraph (1)
shall specifically address the following:
(A) With respect to the change in the veterans'
housing loan program contemplated under subsection (a):
(i) The increase or decrease in
administrative costs to the Department of
Veterans Affairs.
(ii) The increase or decrease in the degree
of exposure of the United States as the
guarantor of the loans.
(iii) The increase or decrease in the Federal
subsidy rate that would be possible.
(iv) Any increase in the interest rate or
fees charged to the borrower or lender that
would be required to maintain present program
costs.
(B) Information regarding the delinquency rates,
default rates, length of time required for recovery
after default, for fixed-asset business loans, of a
size and duration comparable to those contemplated
under subsection (a), made available in the private
market or under section 503 of the Small Business
Investment Act.
Purpose
The purpose of H.R. 1568 is to provide assistance to
veteran owned businesses, particularly service-disabled veteran
owned businesses, in order to enable them to form and expand
small businesses. H.R. 1568 will accomplish this through four
primary changes in the Small Business Act.
First, the bill establishes the National Veterans Business
Development Corporation (NVBDC), a federally chartered
corporation empowered to establish a nationwide network of
veterans business assistance centers, and to work with both
public and private organizations to provide assistance and
mentoring to veterans. The Corporation will have a
Presidentially appointed Board of Directors and shall receive
four years of federal funding for start-up costs.
Second H.R. 1568 clarifies and re-emphasizes the
responsibility of the Small Business Administration (SBA) to
reach out to and include veterans in its programs providing
financial and technical assistance. The bill specifically
includes veterans as a target group for the SBA's 7(a), 504 and
microloan programs. It also requires the SBA's SCORE and Small
Business Development Center programs to work with the NVBDC to
expand technical assistance for veteran entrepreneurs.
Third, H.R. 1568 provides service-disabled veterans, those
who have scarified their health and strength for the Nation, a
five percent goal in federal procurements. This goal is
designed to raise the awareness of federal procurement
officials and help provide service-disabled veterans with
access to federal procurement opportunities.
Fourth, H.R. 1568 establishes a program to assist self-
employed and small business owning military reservists who are
called to active duty. The bill provides them with access to
economic injury disaster loans and requires the Administrator
of the SBA to establish a system for the deferral of
outstanding loans.
Need for Legislation
Over the years, the Nation has recognized the debt owned to
citizens who serve in defense of our Constitution and the
American ideals of free speech, personal liberty, and free
enterprise. H.R. 1568 builds on the best examples of this
public policy from our Nation's history. From the beginning of
the Republic, when the Continental Congress provided land
grants to Revolutionary War veterans, we have helped veterans
with self-employment and self-sufficiency. 150 years later, the
1944 Servicemen's Readjustment Act, or ``G.I. Bill of Rights of
World War II'' provided loan guarantees for returning World War
II, and later Korean War, veterans. In the ten years following,
the Federal Government provided over 280,000 small business and
farm loans to veterans to help include them in the post-war
boom and use their talents to propel that boom.
Unfortunately, the Nation's efforts on behalf of veterans
have diminished drastically in the intervening 45 years. Over
the years, the interests of veterans, particularly the service-
disabled, have fallen on infertile ground. While specifically
included as a priority of the SBA at its creation, the Office
of Veterans Affairs and the needs of veterans have been
diminished systematically at the SBA. Elimination of the direct
loan program for veterans in fiscal year 1995, at then
Administrator Phil Lader's request, resulted in serious
dimunition of financial assistance for veterans. Total loan
dollars dropped from $22 million dollars in loans in 1993 to
$10.8 million in 1998. Likewide, training and counseling for
veterans dropped from 38,775 total counseling sessions for
veterans in 1993 to 29,821 sessions in 1998.
While the current SBA Administrator, Aida Alvarez, has made
efforts to halt this slide it is evident that more must be
done. Teamwork and self-confidence are the hallmarks of our
veterans. With that in mind. H.R. 1568 proposes to give
veterans the tools they need to do the job. SBA's activities
and priorities will be strengthened, but a framework must be
established to allow veterans and small businesses share their
knowledge and skills. By establishing the National Veterans
Business Development Corporation, Congress will set in place a
permanent mechanism for meeting our obligations to our service
men and women.
H.R. 1568 will also fulfill a long unmet need to assist our
military reservists who are small business owners. Often these
individuals, called to service at short notice, come back from
fighting to protect our freedoms only to find their businesses
in shambles. H.R. 1568 will establish loan deferrals, technical
and managerial assistance, and loan programs for these citizen
soldiers so that while they risk their lives they need not risk
their livelihoods.
Committee Action
On June 23, 1999, at 9:30 a.m., the Committee on Small
Business convened a hearing to discuss the provisions of H.R.
1568. The Committee received testimony from eight witnesses. In
the first panel, one Administration witness and four veterans
and veteran representatives discussed H.R. 1568's ability to
satisfy veterans' recognized need to access capital and
employment markets. The second panel included three business
community representatives who discussed the community's
willingness to support H.R. 1568's National Veterans Business
Development Corporation.
Ms. Betsy Myers, Associate Deputy Administrator for
Entrepreneurial Development, U.S. Small Business
Administration, discussed the July 1998 Small Business
Administration (SBA) Veterans' Affairs Task Force for
Entrepreneurship and its November 1998 ``high priority''
recommendations. Under questioning from Chairman Talent, Ms.
Myers acknowledged H.R. 1568 incorporates the Task Force's
``high priority'' recommendations. Furthermore, Ms. Myers
agreed with SBA's chief financial officer's comment that SBA
has spent little on veterans' affairs in the past and that SBA
is just now reaching out more. Decreased Veterans' Affairs
program funding--$1.4 million in 1998 to $340,000 in 1997--
supports this assessment.
Mr. Anthony Baskerville, Deputy National Service Director
for Employment for the Disabled American Veterans, testified
that H.R. 1568 ``is a comprehensive approach to encouraging
entrepreneurship among veterans through loans and a variety of
support and technical assistance, assistance which veterans so
richly deserve.'' H.R. 1568 increases veterans likelihood of
self-employment because it stresses their military training
that ``imparts discipline, a need for independence, autonomy,
and power, and a greater tolerance for risk-taking.'' As a
result, Mr. Baskerville and the Disabled American Veterans
support H.R. 1568.
Ms. Valerie Callaway, a disabled retired veteran, testified
that veterans need H.R. 1568 to successfully establish small
businesses. Ms. Callaway testified that she suffered heart
failure while on active service and received a medical
discharge. Her disability and the delay in Veterans' Affairs
Vocational Rehabilitation services inhibited her employment
opportunities. In order to care for her three children, she
decided to operate a daycare center for military personnel from
her home. However, she lacked a stable residency history due to
military service and could not obtain a loan. Ms. Callaway
acknowledged in questioning from Mr. Forbes that she turned to
the SBA for assistance, but fond no program that adequately
served her needs or a website that provided any information.
Ms. Callaway invested $25,000 of her money and tried to start
her business. Unfortunately, nine months later the business
failed.
John Lopez, Chairman of the Association for Service
Disabled Veterans, testified that assistance for veterans is
overdue. The individuals that protected America's freedoms are
aging, dying and unable to enjoy these freedoms. In response to
Mr. Forbes's questions, Mr. Lopez cited decreased spending and
SBA's inability to provide a veterans representative at each
facility as evidence that SBA abandoned veterans. Mr. Lopez
commended Ms. Napolitano for her efforts in the California
General Assembly in securing some veterans' assistance. Mr.
Pascrell agreed with Mr. Lapez and noted that few veterans know
what assistance exists and where to obtain it. H.R. 1568's
corporation enables veterans to reach out to other veterans.
Finally, Emil Naschinski from the American Legion concluded
the first panel's testimony. Mr. Naschinski also noted SBA's
failure to support veterans groups. Mr. Naschinski believed
that H.R. 1568 advances veterans' causes. However, he expressed
some funding concerns. He noted that previous Congresses passed
necessary legislation that lacked requisite funding. H.R. 1568,
Mr. Naschinski noted, appropriates $12 million over four years,
but makes no funding assurances. However, Chairman Talent and
Mr. Pascrell both assured Mr. Naschinski that the Committee on
Appropriations supports this bill and will fund it.
Mr. Bill Elmore, Data Force Associates, testified in the
second panel that the business community supports the bill. Mr.
Elmore cited the National Veterans Business Development
Corporation as H.R. 1568's most importation and innovative
feature. ``It places the responsibility for initiative squarely
in the hands of the veterans and the business community.'' Mr.
Elmore expressed concern that the Corporation's board would be
too political. He suggested that the chairman and ranking
member of the House and Senate Committees on Small Business and
Veterans' Affairs play a larger role in choosing the board
members. Chairman Talent assured Mr. Elmore that he believed
both the chairman and ranking member from each committee would
choose individuals focused on veterans' concerns.
Mr. Charles Foster, Group President for SBC Communications,
testified that business will support the National Veterans
Business Development Corporation. ``SBC's Pacific Bell
subsidiary leads the industry with 30 percent of procurement
dollars going to diversity suppliers and more than $40 million
of that goes to disabled veteran-owned businesses.'' Mr. Foster
acknowledged that SBC Communications cannot guarantee 5% of its
contracts to veterans. SBC Communications' current goal is
1.5%. Its studies show that there are insufficient veteran-
owned companies able to serve its needs. In response to
questions from Ms. Napolitano and Mr. Davis, Mr. Foster
acknowledged that a 5% goal might be attainable at some future
time.
Finally, Stephen H. White, President, White & Co.,
testified the National Veterans Business Development
Corporation provides a network that assists small businesses
and veterans. Mr. White testified that there exists a ``Vet
Connection'' in which veteran business owners and executives
express a desire to work with or purchase from other veterans,
hire other veterans, network with other veteran business
owners, and train veterans. The National Veterans Business
Development Corporation provides a veteran assistance focal
point.
consideration of h.r. 1568
At 11 a.m. on June 23, 1999, the Committee on Small
Business met to mark up and report H.R. 1568. The Chairman
declared the bill open for amendment by title, and the first
action was consideration of an en bloc amendment offered by
Chairman Talent. The amendment had four parts: (1) an amendment
to Sections 202 and 203 setting a sunset date for the Advisory
Committee on Veterans and transferring its responsibilities to
the National Veterans Business Development Corporation, (2) an
amendment to Section 202 requiring the National Veterans
Business Development Corporation to establish an advisory board
to study the coordination and harmonization of private sector
certification with military technical training, (3) a technical
correction to section 401, and (4) a technical correction to
Section 405. The amendment was accepted by a unanimous voice
vote.
The next amendment was offered by Mr. Phelps and consisted
of the text of his bill H.R. 1614, the companion to Senator
Kerry's bill, S. 918. This amendment would establish a program
to assist small business owners and self-employed individuals
who are military reservists and are called to active duty. The
Chairman, Mr. Talent, and the Ranking Member, Ms. Velazquez,
both expressed their strong support for the amendment and it
was accepted by a unanimous voice vote.
The final amendment was offered by Mrs. Kelly, for herself
and Mr. Forbes. It amended several of the reporting provisions
in Sections 601, 603, and 702 to require the SBA to provide
statistical breakdowns of veteran participation in SBA
programs, and to require the SBA to provide information on
veteran participation in federal procurement to procurement
officers. The amendment was accepted by a unanimous voice vote.
Ms. Millender-McDonald then moved the bill be reported, and
at 11:35 a.m., by unanimous voice vote, a quorum being present,
the Committee passed H.R. 1568, as amended, and ordered it
reported.
Section-by-Section Analysis
section 1. short title
Designates the bill as the ``Veterans Entrepreneurship and
Small Business Development Act of 1999''.
section 2. table of contents
TITLE I--GENERAL PROVISIONS
section 101. findings
This section describes Congressional findings regarding the
sacrifices and efforts of veterans and their value to the
American economy as small business owners.
section 102. purpose
Describes the purpose of the Act, to encourage the SBA and
other agencies to implement further efforts to assist veterans,
particularly service-disabled veterans in the formation and
growth of small businesses.
section 103. definitions
Establishes definitions of veteran owned and service-
disabled veteran owned small business concerns. The term
``service-disabled veterans'' is based on the definition in
Title 38 of the U.S. Code.
TITLE II--VETERANS BUSINESS DEVELOPMENT
SECTION 201. OFFICE OF VETERANS BUSINESS DEVELOPMENT
Establishes an Office of Veterans Business Development and
the position of Associate Administrator for Veterans Business
Development at the Small Business Administration. This position
will be responsible for the formulation, execution, and
promotion of programs to provide assistance for small
businesses owned and controlled by veterans. There are
currently at least ten Associate Administrators at the SBA. A
minimum of four are required by law, and the titles of only two
are specified.
SECTION 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION
This section establishes a federally chartered corporation,
the National Veterans Business Development Corporation, for the
purpose of guiding and monitoring public and private sector
initiatives to assist the Nation's veterans in their efforts to
form and grow small businesses. The most significant single
purpose of the corporation will be to work with the public and
private sectors to establish an independent nationwide network
of business assistance and information centers for veterans.
The Corporation will be managed by a Board of Directors
appointed in a bipartisan fashion by the President based on
recommendations from the Congress. It will have the power to
raise and disburse funds, establish initiatives, and award
grants in furtherance of its goal of establishing a cohesive
assistance and information network for veteran owned business.
The NVBDC will also establish an advisory board on
professional certification to work on the problems service
members with military technical training face in transitioning
into the private sector workforce. The board will be composed
of representatives of professional certification organizations,
such as the Coalition for Professional Certification and
veterans organizations such as the American Legion. In
addition, the Board of Directors of the NVBDC shall invite
representatives of the Armed Services and the Department of
Labor to participate.
While they will have no mandate to change or enforce
regulations, the Committee hopes that the military and private
sector will work in a cooperative fashion to satisfy both the
Armed Services training requirements and the public sector's
need for standard certification and provide transitioning
servicemembers with an easy entrance to civilian life.
To start the NVBDC it will have an initial authorization of
$2 million in the first year and $4 million in the second, and
third years, dropping back to $2 million in the fourth and
final year. After the fourth year the Corporation will be self
funded from private donations and no longer be eligible for
federal funds. The Committee has already received testimony in
support of private funding of the NVBDC and fully expects the
Corporation to be self supporting within four years.
SECTION 203. ADVISORY COMMITTEE ON VETERANS AFFAIRS
Establishes an eight member committee to provide
independent advice and policy recommendations to the SBA,
Congress, and the President. The committee will conduct
hearings, collect information from federal agencies, develop,
monitor and promote programs to aid veteran's business
development, and issue an annual report to the Congress. The
Committee will terminate on September 30, 2004 and its
responsibilities will devolve onto the National Veterans
Business Development Corporation.
TITLE III--TECHNICAL ASSISTANCE
SECTION 301. SCORE PROGRAM
This section requires the Service Corps of Retired
Executives (SCORE) and the SBA to establish a program for
directing management and technical assistance to veteran-owned
small business and veterans wishing to establish small business
concerns. SCORE provides advice and technical assistance to
small businesses free of charge through a nationwide network of
volunteers.
SECTION 302. ENTREPRENEURIAL ASSISTANCE
This section requires the Small Business Development Center
(SBDC) system and the SBA to establish a program for outreach
and assistance to veterans and veteran-owned small businesses.
SBDC's provide free management and technical assistance to
small business owners through over 900 sites located at
colleges and universities nationwide.
SECTION 303. MILITARY RESERVISTS TECHNICAL ASSISTANCE
Establishes a program of technical and managerial
assistance, through the SBA, for military reservists who are
self-employed or are small business owners and are called to
active military duty. Requires the SBA to enhance its publicity
of such assistance for the duration of Operation ``Allied
Force''.
TITLE IV--FINANCIAL ASSISTANCE
SECTION 401. GENERAL BUSINESS LOANS
Includes service-disabled veterans with handicapped
individuals in provisions requiring that loan making decisions
shall be resolved in favor of the prospective borrower. H.R.
1568 also clarifies that this provision applies only to
guaranteed loans and makes no requirement that the SBA
reinstitute the direct loan programs eliminated in the
Administration budget submission in 1995. According to the
Administration's testimony on June 23, 1999 such a result was
not desired by the SBA. Therefore, an amendment was offered to
specify and reinforce the Administration's opposition to those
programs.
SECTION 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS
Requires the SBA to establish a system for loan deferrals
for small business owners called up for active duty. Also
requires the SBA to make economic injury disaster loans
available to self-employed individuals who are called to active
duty for the National Guard and Reserves.
SECTION 403. MICROLOAN PROGRAM
Makes veterans eligible for assistance under the SBA's
microloan program which provides small loans (under $25,000) to
people seeking initial financing for small business start-up or
expansion.
SECTION 404. DELTA LOAN PROGRAM
Includes veteran owned small businesses in the eligibility
categories for assistance under the DELTA loan program at the
SBA.
SECTION 405. STATE DEVELOPMENT COMPANY PROGRAM
Includes the formation and creation of veteran-owned small
business in the public policy goals sought in the 504 loan
program for construction and long-term equipment loans.
TITLE V--PROCUREMENT
SECTION 501. SUBCONTRACTING
Requires the inclusion of small business concerns owned and
controlled by veterans in the mandatory subcontracting clause
in all government contracts that establishes subcontracting
plans.
SECTION 502. PROCUREMENT ASSISTANCE
This section requires the SBA to establish a five percent
goal for contracting with small business concerns owned and
controlled by service disabled veterans.
TITLE VI--REPORTS AND DATA
SECTION 601. REPORTING REQUIREMENTS
Requires the heads of each federal agency to report to the
Small Business Administration concerning contracting with
veteran owned and service-disabled veteran owned small
businesses.
SECTION 602. REPORT ON SMALL BUSINESS AND COMPETITION
Requires the SBA to include information on small business
concerns owned by veterans and service disabled veterans in the
annual report on small business participation and opportunities
in federal procurement.
SECTION 603. ANNUAL REPORT
This section requires the Administrator to submit an annual
report to Congress on the needs of veteran owned small business
and the progress of programs designed to aid and promote
veterans small business ownership. The Administrator shall also
provide statistical information on veterans participation in
SBA programs.
SECTION 604. INFORMATION COLLECTION
Requires the collection of procurement data on veterans and
service-disabled veteran owned small businesses, and collection
of information on the procurement practices of each federal
agency. All such information is to be made available to any
small business concern requesting it. The information is also
to be distributed to federal procurement officers. Also
requires the SBA and VA to work to establish a database on
veteran owned small business concerns.
TITLE VII--MISCELLANEOUS PROVISIONS
SECTION 701. ADMINISTRATOR'S ORDER
Requires the administrator to strengthen and reissue the
order implementing the provisions of PL 93-237 which requires
the SBA to fully include veterans in all the programs, purposes
and activities of the agency.
SECTION 702. OFFICE OF ADVOCACY
Requires the Chief Counsel for Advocacy of the US Small
Business Administration to include an evaluation of the efforts
of the federal government to assist veteran owned small
business concerns as one of his primary functions. The Chief
Counsel is also required to provide statistical information on
veterans utilization of federal programs. Also requires the
Chief Counsel to make recommendations to the Administrator of
the SBA and Congress on programs and efforts to assist veteran
owned small business concerns.
SECTION 703. FIXED ASSET SMALL BUSINESS LOANS
Requires the Government Accounting Office to conduct a
study of the feasibility of using the VA home ownership loan
program as a source of fixed asset financing for veteran-owned
small businesses.
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 29, 1999.
Hon. James M. Talent,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1568, the Veterans
Entrepreneurship and Small Business Development Act of 1999.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts for federal
costs are Mark Hadley and Megan Carroll. The staff contact for
the state and local impact is Shelley Finlayson.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
H.R. 1568--Veterans Entrepreneurship and Small Business Development Act
of 1999
Summary: H.R. 1568 would expand federal assistance to small
businesses owned by veterans. It would establish a federally
chartered corporation to coordinate assistance to small
business owners who are veterans. In addition, it would
establish an Office of Veterans Business Development and an
advisory committee on veterans affairs within the Small
Business Administration (SBA). Section 402 would authorize the
SBA to modify and expand certain loan programs to assist small
businesses that employ military reservists who are called to
active duty. Finally, the bill would direct the SBA and the
General Accounting Office to prepare several reports and would
provide other forms of assistance to small businesses that are
owned by veterans.
Assuming appropriation of the necessary amounts, CBO
estimates that implementing H.R. 1568 would increase
discretionary spending by about $24 million over the 2000-2004
period. CBO also estimates that enacting the bill would
increase direct spending by about $1 million in fiscal year
1999. therefore, pay-as-you-go procedures would apply to this
bill. H.R. 1568 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: For the purposes
of this estimate, CBO assumes that H.R. 1568 will be enacted
during fiscal year 1999. The estimated effect of H.R. 1568 on
discretionary spending is shown in the following table. We
estimate that modifying the terms of certain loans would
increase direct spending by about $1 million in 1999 and that
provisions authorizing the receipt and use of gifts and
donations would have a negligible effect on direct spending and
governmental receipts over the 2000-2004 period. The costs of
this legislation fall within budget functions 370 (commerce and
housing credit) and 450 (community and regional development).
----------------------------------------------------------------------------------------------------------------
By fiscal years, in millions of dollars--
-----------------------------------------------------
1999 2000 2001 2002 2003 2004
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............................. 0 5 6 6 4 3
Estimated Outlays......................................... 0 5 6 6 4 3
----------------------------------------------------------------------------------------------------------------
Basis of Estimate
Spending subject to appropriation
H.R. 1568 would authorize the appropriation of $12 million
over the 2000-2003 period for the National Veterans Business
Development Corporation. For purposes of this estimate, CBO
assumes that the corporation would receive and spend the entire
amount appropriated for each year. Based on information from
SBA, CBO estimates that implementing the other provisions of
the bill would increase administrative costs by an additional
$12 million over the 2000-2004 period.
Section 402 would expand the disaster loan program to
include small businesses that suffer substantial economic
injury as a result of an essential employee being ordered to
active duty during a period of military conflict. The Federal
Credit Reform Act of 1990 requires appropriations for the
subsidy costs and administrative costs of credit programs. The
subsidy cost is the estimated long-term cost to the government
of a direct loan or loan guarantee, calculated on a net present
value basis and excluding administrative costs. Implementing
section 402 of the bill could result in additional subsidy
costs for making new loans. Although CBO cannot predict the
number, timing, or extent of future military conflicts or the
number of small businesses that would be affected, the costs
are not likely to be significant in most years. We estimate
that additional subsidy costs would average less than $500,000
a year.
Direct spending
Section 402 would allow the SBA to defer principal and
interest payments due on small business loans if a military
reservist is called to active duty during a period of military
conflict and the reservist is an essential employee of the
small business. The deferral would last from the date on which
the reservist is ordered to active duty until 180 days after
the reservist is released. Section 402 also would allow the SBA
to reduce the interest rate on loans qualifying for a deferral.
The bill would encourage lenders and intermediaries to grant
similar deferrals for loans guaranteed by the SBA.
Section 403 would increase direct spending because it would
raise the expected cost of existing loans to small businesses.
CBO estimates that enacting this provision would probably
increase direct spending by about $1 million in 1999, based on
information from the SBA. We estimate that the deferral
provision would affect fewer than 500 small business disaster
loans (out of the 70,000 outstanding), with an average loan
size of $50,000, and that the deferment of principal and
interest payments would increase the average subsidy costs on
those loans by about 5 percentage points. The increase in
subsidy costs would be recorded as an outlay in the year in
which the legislation is enacted.
Revenues
Authorizing the advisory committee to accept and use gifts
and donations would affect direct spending and governmental
receipts. CBO expects that any contributions (recorded in the
budget as revenues) would be spent in the same year as they
were received. Therefore, we estimate that the net budgetary
impact of the gift authority granted to the advisory committee
would be negligible.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Control Act sets up pay-as-you-go procedures for
legislation affecting direct spending or receipts. H.R. 1568
would affect direct spending and receipts by increasing the
cost of existing loans and by allowing the new advisory
committee to accept donations. CBO estimates enacting H.R. 1568
would increase direct spending by $1 million in 1999 and by
less than $500,000 in each subsequent year and would increase
governmental receipts by less than $500,000 a year.
Intergovernmental and private-sector impact: H.R. 1568
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would modify existing programs that
require matching funds from public or private entities,
including state, local, and tribal governments. Any cost to
these governments from the requirements of the programs would
be incurred voluntarily.
Previous CBO estimate: On June 16, 1999, CBO transmitted an
estimate of S. 918, the Military Reservists Small Business
Relief Act of 1999, as ordered reported by the Senate Committee
on Small Business on June 9, 1999. That bill was identical to
section 402 of H.R. 1568; therefore, CBO estimated that
enacting S. 918 would increase direct spending by about $1
million in 1999 and spending subject to appropriation by less
than $500,000 a year.
Estimate prepared by: Federal Costs: Mark Hadley and Megan
Carroll. Impact on State, Local, and Tribal Governments:
Shelley Finlayson.
Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.
Committee Estimate of Costs
Pursuant to the Congressional Budget Act of 1974, the
Committee estimates that the amendments to the Small Business
Act in H.R. 1568 will increase discretionary spending by no
more than $15 million over the next five fiscal years, if fully
funded. This estimate includes funding for the NVBDC ($12
million), funding for loans for military reservists ($2
million), and the attendant costs of the requested data
collection and creation of the Office of Veterans Affairs ($1
million). The Committee estimate is lower than the
Congressional Budget Office (CBO) estimate.
The Committee disagrees with information supplied to the
CBO by the SBA which estimates a $1.3 million annual cost of
the Office of Veterans Business Development. The Committee
notes that Section 201 of H.R. 1568 provides only for the
position of Associate Administrator for Veterans Business
Development. It does not require any further hiring. The Office
of Veterans Affairs already exists, all that is required is
elevation of one individual, a total increase in costs of only
$30,000. The Committee is, however, heartened by the
possibility that the Administration may wish to increase the
visibility of the Office of Veterans Business Development
beyond that statutorily mandated.
While certain provisions of H.R. 1568 have pay-go
implications, by deferring loan repayments, they are only $1
million in fiscal year 1999 and less than $500,000 in fiscal
years 2000-2004. This concurs with the CBO estimate.
Furthermore, pursuant to clause 3(d)(2)(A) of rule XIII of
the Rules of the House of Representatives, the Committee
estimates that implementation of H.R. 1568 will not
significantly increase other administrative costs.
House of Representatives,
Committee on Veterans Affairs,
Washington, DC, June 24, 1999.
Hon. James M. Talent,
Chairman, Committee on Small Business,
Rayburn House Office Building, Washington, DC.
Dear Jim: It is my understanding that the Committee on
Small Business plans to report H.R. 1568 this week. This letter
is to advise you that the Committee on Veterans' Affairs
supports your Committee's actions and does not plan to take any
action on this measure. We have no objection to you seeking
prompt consideration of this measure by the full House.
Sincerely,
Bob Stump, Chairman.
Oversight Findings
In accordance with clause 4(c)(2) of rule X of the Rules of
the House of Representatives, the Committee states that no
oversight findings or recommendations have been made by the
Committee on Government Reform with respect to the subject
matter contained in H.R. 1568.
In accordance with clause (2)(b)(1) of rule X of the Rules
of the House of Representatives, the oversight findings and
recommendations of the Committee on Small Business with respect
to the subject matter contained in H.R. 1568 are incorporated
into the descriptive portions of this report.
Statement of Constitutional Authority
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in Article I, Section 8, clause 18, of the
Constitution of the United States.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
Sec. 3. (a) * * *
* * * * * * *
[(f) For purposes of section 7 of this Act, the term
``handicapped individual'' means a person who has a physical,
mental, or emotional impairment, defect, ailment, disease, or
disability of a permanent nature which in any way limits the
selection of any type of employment for which the person would
otherwise be qualified or qualifiable.]
(f) For purposes of section 7 of this Act, the term
``handicapped individual'' means an individual--
(1) who has a physical, mental, or emotional
impairment, defect, ailment, disease, or disability of
a permanent nature which in any way limits the
selection of any type of employment for which the
person would otherwise be qualified or qualifiable; or
(2) who is a service-disabled veteran.
* * * * * * *
(q) Definitions Relating to Veterans.--In this Act, the
following definitions apply:
(1) Service-disabled veteran.--The term ``service-
disabled veteran'' means a veteran with a disability
that is service-connected (as defined in section
101(16) of title 38, United States Code).
(2) Small business concern owned and controlled by
service-disabled veterans.--The term ``small business
concern owned and controlled by service-disabled
veterans'' means a small business concern--
(A) not less than 51 percent of which is
owned by 1 or more service-disabled veterans
or, in the case of any publicly owned business,
not less than 51 percent of the stock of which
is owned by 1 or more service-disabled
veterans; and
(B) the management and daily business
operations of which are controlled by 1 or more
service-disabled veterans or, in the case of a
veteran with permanent and severe disability,
the spouse or permanent caregiver of such
veteran.
(3) Small business concern owned and controlled by
veterans.--The term ``small business concern owned and
controlled by veterans'' means a small business
concern--
(A) not less than 51 percent of which is
owned by 1 or more veterans or, in the case of
any publicly owned business, not less than 51
percent of the stock of which is owned by 1 or
more veterans; and
(B) the management and daily business
operations of which are controlled by 1 or more
veterans.
(4) Veteran.--The term ``veteran'' has the meaning
given the term in section 101(2) of title 38, United
States Code.
Sec. 4. (a) * * *
(b)(1) 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. The Administrator shall not engage in any other
business, vocation, or employment than that of serving as
Administrator. In carrying out the programs administered by the
Small Business Administration including its lending and
guaranteeing functions, the Administrator shall not
discriminate on the basis of sex or marital status against any
person or small business concern applying for or receiving
assistance from the Small Business Administration, and the
Small Business Administration shall give special consideration
to veterans of the Armed Forces of the United States and their
survivors or dependents. The President also may appoint a
Deputy Administrator, by and with the advice and consent of the
Senate. The Administrator is authorized to appoint [four] five
Associate Administrators (including the Associate Administrator
specified in section 201 of the Small Business Investment Act
of 1958) to assist in the execution of the functions vested in
the Administration. One such Associate Administrator shall be
the Associate Administrator for Veterans Business Development,
who shall administer the Office of Veterans Business
Development established under section 32. One of the Associate
Administrators shall be designated at the time of his
appointment as the Associate Administrator for Minority Small
Business and Capital Ownership Development who shall be an
employee in the competitive service or in the Senior Executive
Service and a career appointee and shall be responsible to the
Administrator for the formulation and execution of the policies
and programs under sections 7(j) and 8(a) of this Act which
provide assistance to minority small business concerns.
* * * * * * *
Sec. 7. (a) Loans to Small Business Concerns; Allowable
Purposes; Qualified Business; Restrictions and Limitations.--
The Administration is empowered to the extent and in such
amounts as provided in advance in appropriation Acts to make
loans for plant acquisition, construction, conversion, or
expansion, including the acquisition of land, material,
supplies, equipment, and working capital, and to make loans to
any qualified small business concern, including those owned by
qualified Indian tribes, for purposes of this Act. Such
financings may be made either directly or in cooperation with
banks or other financial institutions through agreements to
participate on an immediate or deferred (guaranteed) basis.
These powers shall be subject, however, to the following
restrictions, limitations, and provisions:
(1) * * *
* * * * * * *
(10) The Administration may provide guaranteed loans
under this subsection to assist any public or private
organization for the handicapped or to assist any
handicapped individual, including service-disabled
veterans, in establishing, acquiring, or operating a
small business concern.
* * * * * * *
(21)(A) The Administration may make loans on a guaranteed
basis under the authority of this subsection--
(i) * * *
(ii) to a qualified individual or a veteran seeking
to establish (or acquire) and operate a small business
concern.
* * * * * * *
(b) Except as to agricultural enterprises as defined in
section 18(b)(1) of this Act, the, Administration also is
empowered to the extent and in such amounts as provided in
advance in appropriation Acts--
(1) * * *
* * * * * * *
Provided, That no loan or guarantee shall be extended
pursuant to this paragraph (2) unless the
Administration finds that the applicant is not able to
obtain credit elsewhere.
(3)(A) In this paragraph--
(i) the term ``essential employee'' means an
individual who is employed by a small business
concern and whose managerial or technical
expertise is critical to the successful day-to-
day operations of that small business concern;
(ii) the term ``period of military conflict''
has the meaning given the term in subsection
(n)(1); and
(iii) the term ``substantial economic
injury'' means an economic harm to a business
concern that results in the inability of the
business concern--
(I) to meet its obligations as they
mature;
(II) to pay its ordinary and
necessary operating expenses; or
(III) to market, produce, or provide
a product or service ordinarily
marketed, produced, or provided by the
business concern.
(B) The Administration may make such disaster loans
(either directly or in cooperation with banks or other
lending institutions through agreements to participate
on an immediate or deferred basis) to assist a small
business concern that has suffered or that is likely to
suffer substantial economic injury as the result of an
essential employee of such small business concern being
ordered to active military duty during a period of
military conflict.
(C) A small business concern described in
subparagraph (B) shall be eligible to apply for
assistance under this paragraph during the period
beginning on the date on which the essential employee
is ordered to active duty and ending on the date that
is 90 days after the date on which such essential
employee is discharged or released from active duty.
(D) Any loan or guarantee extended pursuant to this
paragraph shall be made at the same interest rate as
economic injury loans under paragraph (2).
(E) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an
immediate or deferred basis, if the total amount
outstanding and committed to the borrower under this
subsection would exceed $1,500,000, unless such
applicant constitutes a major source of employment in
its surrounding area, as determined by the
Administration, in which case the Administration, in
its discretion, may waive the $1,500,000 limitation.
(F) For purposes of assistance under this paragraph,
no declaration of a disaster area shall be required.
* * * * * * *
(n) Repayment Deferred for Active Duty Reservists.--
(1) Definitions.--In this subsection:
(A) Eligible reservist.--The term ``eligible
reservist'' means a member of a reserve
component of the Armed Forces ordered to active
duty during a period of military conflict.
(B) Essential employee.--The term ``essential
employee'' means an individual who is employed
by a small business concern and whose
managerial or technical expertise is critical
to the successful day-to-day operations of that
small business concern.
(C) Period of military conflict.--The term
``period of military conflict'' means--
(i) a period of war declared by
Congress;
(ii) a period of national emergency
declared by Congress or by the
President; or
(iii) a period of a contingency
operation, as defined in section 101(a)
of title 10, United States Code.
(D) Qualified borrower.--The term ``qualified
borrower'' means--
(i) an individual who is an eligible
reservist and who received a direct
loan under subsection (a) or (b) before
being ordered to active duty; or
(ii) a small business concern that
received a direct loan under subsection
(a) or (b) before an eligible
reservist, who is an essential
employee, was ordered to active duty.
(2) Deferral of direct loans.--
(A) In general.--The Administration shall,
upon written request, defer repayment of
principal and interest due on a direct loan
made under subsection (a) or (b), if such loan
was incurred by a qualified borrower.
(B) Period of deferral.--The period of
deferral for repayment under this paragraph
shall begin on the date on which the eligible
reservist is ordered to active duty and shall
terminate on the date that is 180 days after
the date such eligible reservist is discharged
or released from active duty.
(C) Interest rate reduction during
deferral.--Notwithstanding any other provision
of law, during the period of deferral described
in subparagraph (B), the Administration may, in
its discretion, reduce the interest rate on any
loan qualifying for a deferral under this
paragraph.
(3) Deferral of loan guarantees and other
financings.--The Administration shall--
(A) encourage intermediaries participating in
the program under subsection (m) to defer
repayment of a loan made with proceeds made
available under that subsection, if such loan
was incurred by a small business concern that
is eligible to apply for assistance under
subsection (b)(3); and
(B) not later than 30 days after the date of
enactment of this subsection, establish
guidelines to--
(i) encourage lenders and other
intermediaries to defer repayment of,
or provide other relief relating to,
loan guarantees under subsection (a)
and financings under section 504 of the
Small Business Investment Act of 1958
that were incurred by small business
concerns that are eligible to apply for
assistance under subsection (b)(3), and
loan guarantees provided under
subsection (m) if the intermediary
provides relief to a small business
concern under this paragraph; and
(ii) implement a program to provide
for the deferral of repayment or other
relief to any intermediary providing
relief to a small business borrower
under this paragraph.
* * * * * * *
Sec. 8. (a) * * *
* * * * * * *
(d)(1) It is the policy of the United States that small
business concerns, small business concerns owned and controlled
by service-disabled veterans, qualified HUBZone small business
concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women, 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
small business concerns, small business concerns owned and
controlled by service-disabled veterans, qualified HUBZone
small business concerns, small business concerns owned and
controlled by socially and economically disadvantaged
individuals, and small business concerns owned and controlled
by women.
* * * * * * *
(3) The clause required by paragraph (2) shall be as follows:
(A) It is the policy of the United States that small
business concerns, small business concerns owned and
controlled by veterans, qualified HUBZone small
business concerns, small business concerns owned and
controlled by socially and economically disadvantaged
individuals, and small business concerns owned and
controlled by women 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 small business concerns, small
business concerns owned and controlled by veterans,
qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women.
* * * * * * *
(E) The term ``small business concern owned and
controlled by veterans'' shall mean a small business
concern--
(i) which is at least 51 per centum owned by
one or more eligible veterans; or, in the case
of any publicly owned business, at least 51 per
centum of the stock of which is owned by one or
more veterans; and
(ii) whose management and daily business
operations are controlled by such veterans. The
contractor shall treat as veterans all
individuals who are veterans within the meaning
of the term under section 3(q) of the Small
Business Act.
[(E)] (F) Contractors acting in good faith may rely
on written representations by their subcontractors
regarding their status as either a small business
concern, a small business concern owned and controlled
by socially and economically disadvantaged individuals,
or a small business concern owned and controlled by
women.
[(F)] (G) In this contract, the term ``qualified
HUBZone small business concern'' has the meaning given
that term in section 3(p) of the Small Business Act.
(4)(A) * * *
* * * * * * *
(D) No contract shall be awarded to any offeror unless the
procurement authority determines that the plan to be negotiated
by the offeror pursuant to this paragraph provides the maximum
practicable opportunity for small business concerns, small
business concerns owned and controlled by veterans, qualified
HUBZone small business concerns, small business concerns owned
and controlled by socially and economically disadvantaged
individuals, and small business concerns owned and controlled
by women to participate in the performance of the contract.
(E) Notwithstanding any other provisions of law, every
Federal agency, in order to encourage subcontracting
opportunities for small business concerns, small business
concerns owned and controlled by veterans, qualified HUBZone
small business concerns, and small business concerns owned and
controlled by the socially and economically disadvantaged
individuals as defined in paragraph (3) of this subsection and
for small business concerns owned and controlled by women, is
hereby authorized to provide such incentives as such Federal
agency may deem appropriate in order to encourage such
subcontracting opportunities as may be commensurate with the
efficient and economical performance of the contact: Provided,
That, this subparagraph shall apply only to contracts let
pursuant to the negotiated method of procurement.
* * * * * * *
(6) Each subcontracting plan required under paragraph (4) or
(5) shall include--
(A) percentage goals for the utilization as
subcontractors of small business concerns, small
business concerns owned and controlled by veterans,
qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women;
* * * * * * *
(C) a description of the efforts the offeror or
bidder will take to assure that small business
concerns, small business concerns owned and controlled
by veterans, qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged individuals,
and small business concerns owned and controlled by
women will have an equitable opportunity to compete for
subcontracts;
* * * * * * *
(F) a recitation of the types of records the
successful offeror or bidder will maintain to
demonstrate procedures which have been adopted to
comply with the requirements and goals set forth in
this plan, including the establishment of source lists
of small business concerns, small business concerns
owned and controlled by veterans, qualified HUBZone
small business concerns, small business concerns owned
and controlled by socially and economically
disadvantaged individuals, and small business concerns
owned and controlled by women; and efforts to identify
and award subcontracts to such small business concerns.
* * * * * * *
(10) In the case of contracts within the provisions of
paragraphs (4), (5), and (6), the Administration is authorized
to--
(A) * * *
(B) review any solicitation for any contract to be
let pursuant to paragraphs (4) and (5) to determine the
maximum practicable opportunity for small business
concerns, small business concerns owned and controlled
by veterans, qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged individuals,
and small business concerns owned and controlled by
women to participate as subcontractors in the
performance of any contract resulting from any
solicitation, and to submit its findings, which shall
be advisory in nature, to the appropriate Federal
agency; and
(l) Management Assistance for Small Businesses Affected by
Military Operations.--The Administration shall utilize, as
appropriate, its entrepreneurial development and management
assistance programs, including programs involving State or
private sector partners, to provide business counseling and
training to any small business concern adversely affected by
the deployment of units of the Armed Forces of the United
States in support of a period of military conflict (as defined
in section 7(n)(1)).
* * * * * * *
Sec. 15. (a) * * *
* * * * * * *
(g)(1) The President shall annually establish Government-wide
goals for procurement contracts awarded to small business
concerns, small business concerns owned and controlled by
service disabled veterans, qualified HUBZone small business
concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women. The
Government-wide 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. The Government-wide goal for participation by small
business concerns owned and controlled by service-disabled
veterans shall be established at not less than 5 percent of the
total value of all prime contract and subcontract awards for
each fiscal year. The Government-wide goal for participation by
qualified HUBZone small business concerns shall be established
at not less than 1 percent of the total value of all prime
contract awards for fiscal year 1999, not less than 1.5 percent
of the total value of all prime contract awards for fiscal year
2000, not less than 2 percent of the total value of all prime
contract awards for fiscal year 2001, not less than 2.5 percent
of the total value of all prime contract awards for fiscal year
2002, and not less than 3 percent of the total value of all
prime contract awards for fiscal year 2003 and each fiscal year
thereafter. The Government-wide 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. The
Government-wide 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.
Notwithstanding the Government-wide goal, each agency shall
have an annual goal that presents, for that agency, the maximum
practicable opportunity for small business concerns, small
business concerns owned and controlled by service-disabled
veterans, qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and
economically disadvantaged individuals, and small business
concerns owned and controlled by women to participate in the
performance of contracts let by such agency. The Administration
and the Administrator ofthe Office of Federal Procurement
Policy shall, when exercising their authority pursuant to paragraph
(2), insure that the cumulative annual prime contract goals for all
agencies meet or exceed the annual Government-wide prime contract goal
established by the President pursuant to this paragraph.
(2) The head of each Federal agency shall, after consultation
with the Administration, establish goals for the participation
by small business concerns, by small business concerns owned
and controlled by service-disabled veterans, by qualified
HUBZone small business concerns, by small business concerns
owned and controlled by socially and economically disadvantaged
individuals, and by small business concerns owned and
controlled by women in procurement contracts of such agency.
Goals established under this subsection shall be jointly
established by the Administration and the head of each Federal
agency and shall realistically reflect the potential of small
business concerns, small business concerns owned and controlled
by service-disabled veterans, qualified HUBZone small business
concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women to perform such
contracts and to perform subcontracts under such contracts.
Whenever the Administration and the head of any Federal agency
fail to agree on established goals, the disagreement shall be
submitted to the Administrator of the Office of Federal
Procurement Policy for final determination. For the purpose of
establishing goals under this subsection, the head of each
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 small business concerns owned and controlled
by service-disabled veterans, by qualified HUBZone small
business concerns, by small business concerns owned and
controlled by socially and economically disadvantaged
individuals, and by small business concerns owned and
controlled by women. The head of each Federal agency, in
attempting to attain such participation, shall consider--
(A) * * *
* * * * * * *
(h)(1) At the conclusion of each fiscal year, the head of
each Federal agency shall report to the Administration on the
extent of participation by small business concerns, small
business concerns owned and controlled by veterans (including
service-disabled veterans), qualified HUBZone small business
concerns, small business concerns owned and controlled by
socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women in procurement
contracts of such agency. Such reports shall contain
appropriate justifications for failure to meet the goals
established under subsection (g) of this section.
(2) The Administration shall annually compile and analyze the
reports submitted by the individual agencies pursuant to
paragraph (1) and shall submit them to the President and
Congress. The Administration's submission to the President
shall include the following:
(A) The Government-wide goals for participation by
small business concerns, small business concerns owned
and controlled by service-disabled veterans, qualified
HUBZone small business concerns, small business
concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women and the
performance in attaining such goals.
* * * * * * *
(D) The number and dollar value of contracts awarded
to small business concerns, small business concerns
owned and controlled by service-disabled veterans,
qualified HUBZone small business concerns, small
business concerns owned and controlled by socially and
economically disadvantaged individuals, and small
business concerns owned and controlled by women
through--
(i) * * *
* * * * * * *
(E) The number and dollar value of subcontracts
awarded to small business concerns, small business
concerns owned and controlled by service-disabled
veterans, qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged individuals,
and small business concerns owned and controlled by
women.
* * * * * * *
SEC. 32. VETERANS PROGRAMS.
(a) 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 for Veterans Business Development (in
this section referred to as the ``Associate Administrator'')
appointed under section 4(b)(1).
(b) Associate Administrator for Veterans Business
Development.--The Associate Administrator--
(1) shall be an appointee in the Senior Executive
Service;
(2) shall be responsible for the formulation,
execution, and promotion of policies and programs of
the Administration that provide assistance to small
business concerns owned and controlled by veterans and
small business concerns owned and controlled by
service-disabled veterans. The Associate Administrator
shall act as an ombudsman for full consideration of
veterans in all programs of the Administration; and
(3) shall report to and be responsible directly to
the Administrator.
SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
(a) Establishment.--There is established a federally
chartered corporation to be known as the National Veterans
Business Development Corporation (in this section referred to
as the ``Corporation'') which shall be incorporated under the
laws of the District of Columbia and which shall have the
powers granted in this section.
(b) Purposes of the Corporation.--The purposes of the
Corporation shall be--
(1) to expand the provision of and improve access to
technical assistance regarding entrepreneurship for the
Nation's veterans; and
(2) to assist veterans, including service-disabled
veterans, with the formation and expansion of small
business concerns by working with and organizing public
and private resources, including those of the Small
Business Administration, the Department of Veterans
Affairs, the Department of Labor, the Department of
Commerce, the Department of Defense, the Service Corps
of Retired Executives (described in section 8(b)(1)(B)
of this Act), the Small Business Development Centers
(described in section 21 of this Act), and the business
development staffs of each department and agency of the
United States.
(c) Board of Directors.--
(1) In general.--The management of the Corporation
shall be vested in a Board of Directors composed of 9
voting members and 3 nonvoting ex officio members.
(2) Appointment of voting members.--The President
shall appoint United States citizens to be voting
members of the Board of Directors as follows:
(A) 1 from a list of individuals nominated by
the chairman of the Committee on Small Business
of the House of Representatives.
(B) 1 from a list of individuals nominated by
the chairman of the Committee on Small Business
of the Senate.
(C) 1 from a list of individuals nominated by
the ranking minority member of the Committee on
Small Business of the House of Representatives.
(D) 1 from a list of individuals nominated by
the ranking minority members of the Committee
on Small Business of the Senate.
(E) 1 from a list of individuals nominated by
the chairman of the Committee on Veterans'
Affairs of the House of Representatives.
(F) 1 from a list of individuals nominated by
the chairman of the Committee on Veterans'
Affairs of the Senate.
(G) 1 from a list of individuals nominated by
the ranking minority member of the Committee on
Veterans' Affairs of the House of
Representatives.
(H) 1 from a list of individuals nominated
the ranking minority member of the Committee on
Veterans' Affairs of the Senate.
(I) 1 of the President's own choosing.
(3) Ex officio members.--The Administrator of the
Small Business Administration, the Secretary of
Defense, and the Secretary of Veterans Affairs shall
serve as the nonvoting ex officio members of the Board
of Directors.
(4) Chairperson.--The members of the Board of
Directors appointed under paragraph (2) shall elect one
such member to serve as chairperson of the Board of
Directors for a term of 2 years.
(5) Terms of appointed members.--
(A) In general.--Each member of the Board of
Directors appointed under paragraph (2) shall
serve a term of 6 years, except as provided in
subparagraph (B).
(B) Terms of initial appointees.--As
designated by the President at the time of
appointment, of the members first appointed--
(i) 3 shall be for a term of 2 years;
and
(ii) 3 shall be for a term of 4
years.
(C) Unexpired terms.--Any member of the Board
of Directors appointed to fill a vacancy
occurring before the expiration of the term for
which the member's predecessor was appointed
shall be appointed only for the remainder of
the term. A member may serve after the
expiration of that member's term until a
successor has taken office.
(6) Vacancies.--Any vacancy on the Board of Directors
shall be filled in the manner in which the original
appointment was made. In the case of a vacancy in the
office of the Administrator of the Small Business
Administration or the Secretary of Veterans Affairs,
and pending the appointment of a successor, an acting
appointee for such vacancy may serve as an ex officio
member.
(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 such service.
(8) Impartiality and nondiscrimination.--The Board of
Directors shall administer the affairs of the
Corporation fairly and 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.--5 voting members of the Board of
Directors shall constitute a quorum, but a lesser
number may hold hearings.
(d) Corporate Powers.--On October 1, 1999, the Corporation
shall become a body corporate and as such shall have the
authority to do the following:
(1) To adopt and use a corporate seal.
(2) To have succession until dissolved by an Act of
Congress.
(3) To make contracts or grants.
(4) To sue and be sued, and to file and defend
against lawsuits in State or Federal court.
(5) To appoint, through the actions of its Board of
Directors, officers and employees of the Corporation,
to define their duties and responsibilities, fix their
compensations, and to dismiss at will such officers or
employees.
(6) To prescribe, through the actions of its Board of
Directors, bylaws not inconsistent with Federal law and
the law of the State of incorporation, regulating the
manner in which its general business may be conducted
and the manner in which the privileges granted to it by
law may be exercised.
(7) To exercise, through the actions of its Board of
Directors or duly authorized officers, all powers
specifically granted by the provisions of this section,
and such incidental powers as shall be necessary.
(8) To solicit, receive, and disburse funds from
private, Federal, State and local organizations.
(9) To accept and employ or dispose of in furtherance
of the purposes of this section any money or property,
real, personal, or mixed, tangible or intangible,
received by gift, devise, bequest, or otherwise.
(10) To accept voluntary and uncompensated services.
(e) Corporate Funds.--
(1) Deposit of funds.--The Board of Directors shall
deposit all funds of the Corporation in federally
chartered and insured depository institutions until
such funds are disbursed under paragraph (2).
(2) Disbursement of funds.--Funds of the Corporation
may be disbursed only for purposes that are--
(A) approved by the Board of Directors by a
recorded vote with a quorum present; and
(B) in accordance with the purposes of the
Corporation as specified in subsection (b).
(f) Network of Information and Assistance Centers.--In
carrying out the purpose described in subsection (b), the
Corporation shall establish and maintain a network of
information and assistance centers for use by veterans and the
public.
(g) Annual Report.--On or before October 1 of each year, the
Board of Directors shall transmit a report to the President and
Congress describing the activities and accomplishments of the
Corporation for the preceding year and the Corporation's
findings regarding the efforts of Federal, State and private
organizations to assist veterans in the formation and expansion
of small business concerns.
(h) Assumption of Duties of Advisory Committee.--On October
1, 2004, the Corporation established under this section shall
assume the duties, responsibilities, and authority of the
Advisory Committee on Veterans Affairs established under
section 203 of this Act.
(i) Use of Mails.--The Corporation may use the United States
mails in the same manner and under the same conditions as the
departments and agencies of the United States.
(j) Professional Certification Advisory Board.--
(1) In general.--Acting through the Board of
Directors, the Corporation shall establish a
Professional Certification Advisory Board to create
uniform guidelines and standards for the professional
certification of members of the Armed Services to aid
in their efficient and orderly transition to civilian
occupations and professions and to remove potential
barriers in the areas of licensure and certification.
(2) Membership.--The members of the Advisory Board
shall serve without compensation, shall meet in the
District of Columbia no less than quarterly, and shall
be appointed by the Board of Directors as follows:
(A) Private sector members.--The Corporation
shall appoint not less than 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, and
the Council on Licensure and Enforcement.
(B) Public sector members.--The Corporation
shall invite public sector members to serve at
the discretion of their departments or agencies
and shall--
(i) encourage the participation of
the Under Secretary of Defense for
Personnel and Readiness;
(ii) encourage the participation of 2
officers from each branch of the Armed
Forces to represent the Training
Commands of their branch; and
(iii) seek the participation and
guidance of the Assistant Secretary of
Labor for Veterans' Employment and
Training.
(k) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to the Corporation to carry out this
section the following amounts:
(A) $2,000,000 for fiscal year 2000;
(B) $4,000,000 for fiscal year 2001;
(C) $4,000,000 for fiscal year 2002; and
(D) $2,000,000 for fiscal year 2003.
(2) Privatization.--The Corporation shall institute
and implement a plan to raise private funds and become
a self-sustaining corporation.
Sec. [32.] 34. All laws and parts of laws inconsistent with
this Act are hereby repealed to the extent of such
inconsistency.
----------
SECTION 501 OF THE SMALL BUSINESS INVESTMENT ACT OF 1958
Sec. 501. (a) * * *
* * * * * * *
(d) In order to qualify for assistance under this title, the
development company must demonstrate that the project to be
funded is directed toward at least one of the following
economic development objectives--
(1) * * *
* * * * * * *
(3) the achievement of one or more of the following
public policy goals:
(A) business district revitalization,
* * * * * * *
(E) expansion of small business concerns
owned and controlled by veterans, as defined in
section 3(q) of the Small Business Act (15
U.S.C. 632(q)), especially service-disabled
veterans, as defined in such section 3(q),
[(E)] (F) enhanced economic competition,
including the advancement of technology, plan
retooling, conversion to robotics, or
competition with imports,
[(F)] (G) changes necessitated by Federal
budget cutbacks, including defense related
industries, or
[(G)] (H) business restructuring arising from
Federally mandated standards or policies
affecting the environment or the safety and
health of employees.
* * * * * * *
----------
SECTION 303 OF THE SMALL BUSINESS ECONOMIC POLICY ACT OF 1980
Sec. 303. (a) * * *
* * * * * * *
(e) The information and data required to be reported
pursuant to subsection (a) shall separately detail
those portions of such information and data that are
relevant to--
(1) small business concerns owned and
controlled by socially and economically
disadvantaged individuals as defined pursuant
to section 8(d) of the Small Business Act;
[and]
(2) small business concerns owned and
controlled by women[.]; and
(3) small business concerns owned and controlled by
veterans, as defined in section 3(q) of the Small
Business Act (15 U.S.C. 632(q)), and small business
concerns owned and controlled by service-disabled
veterans, as defined in such section 3(q).
----------
SECTION 202 OF THE ACT OF JUNE 4, 1976
AN ACT To amend the Small Business Act and Small Business Investment
Act of 1958 to provide additional assistance under such Acts, to
create a pollution control financing program for small business,
and for other purposes.
study
Sec. 202. The primary functions of the Office of the Advocacy
shall be to--
(1) * * *
* * * * * * *
(10) determine the desirability of developing a set of
rational, objective criteria to be used to define small
business, and to develop such criteria, if appropriate; [and]
(11) advice, cooperate with, and consult with, the Chairman
of the Administrative Conference of the United States with
respect to section 504(e) of title 5 of the United States
Code[.]; and
(12) evaluate the efforts of each department and agency of
the United States, and of private industry, to assist small
business concerns owned and controlled by veterans, as defined
in section 3(q) of the Small Business Act (15 U.S.C. 632(q)),
and small business concerns owned and controlled by serviced-
disabled veterans, as defined in such section 3(q), and to
provide statistical information on the utilization of such
programs by such small business concerns, and to make
appropriate recommendations to the Administrator of the Small
Business Administration and to Congress in order to promote the
establishment and growth of those small business concerns.
