[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[S. 2060 Enrolled Bill (ENR)]
S.2060
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-
four
An Act
To amend the Small Business Act and the Small Business Investment Act
of 1958, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Small Business
Administration Reauthorization and Amendments Act of 1994''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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c3c10728ab54d847d8f90488801e4c71b6664270a5bdc548ffffc14d31fce493

TITLE II

-FINANCIAL ASSISTANCE PROGRAMS

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TITLE III

-SIZE STANDARDS AND BOND GUARANTEES

contracts.
Subtitle A--General Provisions

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TITLE IV

-BUSINESS DEVELOPMENT ASSISTANCE

Subtitle B--Development of Woman-Owned Businesses

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TITLE VI

-MISCELLANEOUS AMENDMENTS

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Section 20 of the Small Business Act (15 U.S.C. 631 note) is
amended by striking subsections (k) (as added by section 405(3) of the
Small Business Credit and Business Opportunity Enhancement Act of 1992)
through (p) and inserting the following:
``(l) The following program levels are authorized for fiscal year
1995:
``(1) For the programs authorized by this Act, the
Administration is authorized to make--
``(A) $45,000,000 in technical assistance grants as
provided in section 7(m); and
``(B) $130,000,000 in direct and immediate participation
loans, and of such sum, the Administration is authorized to
make--
``(i) not more than $10,000,000 in loans, as provided
in section 7(a)(10); and
``(ii) not more than $120,000,000 in loans, as provided
in section 7(m).
``(2) For the programs authorized by this Act, the
Administration is authorized to make $13,420,000,000 in deferred
participation loans and other financings. Of such sum, the
Administration is authorized to make--
``(A) $9,150,000,000 in general business loans as provided
in section 7(a);
``(B) $2,250,000,000 in financings as provided in section
7(a)(13) and section 504 of the Small Business Investment Act
of 1958;
``(C) $2,000,000,000 in loans as provided in section
7(a)(21); and
``(D) $20,000,000 in loans as provided in section 7(m).
``(3) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is authorized
to make--
``(A) $23,000,000 in purchases of preferred securities;
``(B) $244,000,000 in guarantees of debentures, of which
$44,000,000 is authorized in guarantees of debentures from
companies operating pursuant to section 301(d) of such Act; and
``(C) $400,000,000 in guarantees of participating
securities.
``(4) For the programs authorized by part B of title IV of the
Small Business Investment Act of 1958, the Administration is
authorized to enter into guarantees not to exceed $1,800,000,000,
of which not more than $600,000,000 may be in bonds approved
pursuant to the provisions of section 411(a)(3) of such Act.
``(5) The Administration is authorized to make grants or enter
into cooperative agreements--
``(A) for the Service Corps of Retired Executives program
authorized by section 8(b)(1), $3,500,000;
``(B) for the Small Business Institute program authorized
by section 8(b)(1), $3,000,000; and
``(C) for activities of small business development centers
pursuant to section 21(c)(3)(G), $5,000,000, to remain
available until expended.
``(m)(1) There are authorized to be appropriated to the
Administration for fiscal year 1995 such sums as may be necessary to
carry out the provisions of this Act, including administrative expenses
and necessary loan capital for disaster loans pursuant to section 7(b),
and to carry out the provisions of the Small Business Investment Act of
1958, including salaries and expenses of the Administration.
``(2) Notwithstanding paragraph (1), for fiscal year 1995--
``(A) no funds are authorized to be provided to carry out the
loan program authorized by section 7(a)(21) except by transfer from
another Federal department or agency to the Administration, unless
the program level authorized for general business loans under
subsection (l)(2)(A) is fully funded; and
``(B) the Administration may not approve loans on behalf of the
Administration or on behalf of any other department or agency, by
contract or otherwise, under terms and conditions other than those
specifically authorized under this Act or the Small Business
Investment Act of 1958, except that it may approve loans under
section 7(a)(21) of this Act in gross amounts of not more than
$1,250,000.
``(n) The following program levels are authorized for fiscal year
1996:
``(1) For the programs authorized by this Act, the
Administration is authorized to make--
``(A) $65,000,000 in technical assistance grants as
provided in section 7(m); and
``(B) $191,000,000 in direct and immediate participation
loans, and of such sum, the Administration is authorized to
make--
``(i) $11,000,000 in loans, as provided in section
7(a)(10); and
``(ii) $180,000,000 in loans, as provided in section
7(m).
``(2) For the programs authorized by this Act, the
Administration is authorized to make $15,680,000,000 in deferred
participation loans and other financings. Of such sum, the
Administration is authorized to make--
``(A) $10,500,000,000 in general business loans as provided
in section 7(a);
``(B) $2,650,000,000 in financings as provided in section
7(a)(13) and section 504 of the Small Business Investment Act
of 1958;
``(C) $2,500,000,000 in loans as provided in section
7(a)(21); and
``(D) $30,000,000 in loans as provided in section 7(m).
``(3) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is authorized
to make--
``(A) $24,000,000 in purchases of preferred securities;
``(B) $256,000,000 in guarantees of debentures, of which
$46,000,000 is authorized in guarantees of debentures from
companies operating pursuant to section 301(d) of such Act; and
``(C) $650,000,000 in guarantees of participating
securities.
``(4) For the programs authorized by part B of title IV of the
Small Business Investment Act of 1958, the Administration is
authorized to enter into guarantees not to exceed $1,900,000,000,
of which not more than $625,000,000 may be in bonds approved
pursuant to the provisions of section 411(a)(3) of such Act.
``(5) The Administration is authorized to make grants or enter
cooperative agreements--
``(A) for the Service Corps of Retired Executives program
authorized by section 8(b)(1), $3,700,000;
``(B) for the Small Business Institute program authorized
by section 8(b)(1), $3,200,000; and
``(C) for activities of small business development centers
pursuant to section 21(c)(3)(G), not to exceed $10,000,000, to
remain available until expended.
``(o)(1) There are authorized to be appropriated to the
Administration for fiscal year 1996 such sums as may be necessary to
carry out the provisions of this Act, including administrative expenses
and necessary loan capital for disaster loans pursuant to section 7(b),
and to carry out the provisions of the Small Business Investment Act of
1958, including salaries and expenses of the Administration.
``(2) Notwithstanding paragraph (1), for fiscal year 1996--
``(A) no funds are authorized to be provided to carry out the
loan program authorized by section 7(a)(21) except by transfer from
another Federal department or agency to the Administration, unless
the program level authorized for general business loans under
subsection (n)(2)(A) is fully funded; and
``(B) the Administration may not approve loans on behalf of the
Administration or on behalf of any other department or agency, by
contract or otherwise, under terms and conditions other than those
specifically authorized under this Act or the Small Business
Investment Act of 1958, except that it may approve loans under
section 7(a)(21) of this Act in gross amounts of not more than
$1,250,000.
``(p) The following program levels are authorized for fiscal year
1997:
``(1) For the programs authorized by this Act, the
Administration is authorized to make--
``(A) $98,000,000 in technical assistance grants as
provided in section 7(m); and
``(B) $262,000,000 in direct and immediate participation
loans, and of such sum, the Administration is authorized to
make--
``(i) $12,000,000 in loans, as provided in section
7(a)(10); and
``(ii) $250,000,000 in loans, as provided in section
7(m).
``(2) For the programs authorized by this Act, the
Administration is authorized to make $19,390,000,000 in deferred
participation loans and other financings. Of such sum, the
Administration is authorized to make--
``(A) $13,100,000,000 in general business loans as provided
in section 7(a);
``(B) $3,250,000,000 in financings as provided in section
7(a)(13) and section 504 of the Small Business Investment Act
of 1958;
``(C) $3,000,000,000 in loans as provided in section
7(a)(21); and
``(D) $40,000,000 in loans as provided in section 7(m).
``(3) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is authorized
to make--
``(A) $25,000,000 in purchases of preferred securities;
``(B) $268,000,000 in guarantees of debentures, of which
$48,000,000 is authorized in guarantees of debentures from
companies operating pursuant to section 301(d) of such Act; and
``(C) $900,000,000 in guarantees of participating
securities.
``(4) For the programs authorized by part B of title IV of the
Small Business Investment Act of 1958, the Administration is
authorized to enter into guarantees not to exceed $2,000,000,000,
of which not more than $650,000,000 may be in bonds approved
pursuant to the provisions of section 411(a)(3) of such Act.
``(5) The Administration is authorized to make grants or enter
cooperative agreements--
``(A) for the Service Corps of Retired Executives program
authorized by section 8(b)(1), $3,900,000;
``(B) for the Small Business Institute program authorized
by section 8(b)(1), $3,400,000; and
``(C) for activities of small business development centers
pursuant to section 21(c)(3)(G), not to exceed $15,000,000, to
remain available until expended.
``(q)(1) There are authorized to be appropriated to the
Administration for fiscal year 1997 such sums as may be necessary to
carry out the provisions of this Act, including administrative expenses
and necessary loan capital for disaster loans pursuant to section 7(b),
and to carry out the provisions of the Small Business Investment Act of
1958, including salaries and expenses of the Administration.
``(2) Notwithstanding paragraph (1), for fiscal year 1997--
``(A) no funds are authorized to be provided to carry out the
loan program authorized by section 7(a)(21) except by transfer from
another Federal department or agency to the Administration, unless
the program level authorized for general business loans under
subsection (p)(2)(A) is fully funded; and
``(B) the Administration may not approve loans on behalf of the
Administration or on behalf of any other department or agency, by
contract or otherwise, under terms and conditions other than those
specifically authorized under this Act or the Small Business
Investment Act of 1958, except that it may approve loans under
section 7(a)(21) of this Act in gross amounts of not more than
$1,250,000.''.

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TITLE I

-AUTHORIZATIONS

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended by adding at the end the following new paragraph:
``(12) Deferred participation loan pilot.--In lieu of making
direct loans to intermediaries as authorized in paragraph (1)(B),
during fiscal years 1995 through 1997, the Administration may, on a
pilot program basis, participate on a deferred basis of not less
than 90 percent and not more than 100 percent on loans made to
intermediaries by a for-profit or nonprofit entity or by alliances
of such entities, subject to the following conditions:
``(A) Number of loans.--In carrying out this paragraph, the
Administration shall not participate in providing financing on
a deferred basis to more than 10 intermediaries in urban areas
or more than 10 intermediaries in rural areas.
``(B) Term of loans.--The term of each loan shall be 10
years. During the first year of the loan, the intermediary
shall not be required to repay any interest or principal.
During the second through fifth years of the loan, the
intermediary shall be required to pay interest only. During the
sixth through tenth years of the loan, the intermediary shall
be required to make interest payments and fully amortize the
principal.
``(C) Interest rate.--The interest rate on each loan shall
be the rate specified by paragraph (3)(F) for direct loans.''.

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MICROLOAN INTERMEDIARIES.
Section 7(m)(11)(A) of the Small Business Act (15 U.S.C.
636(m)(11)(A)) is amended--
(1) in clause (iii), by striking ``or'' at the end;
(2) in clause (iv), by striking the comma at the end and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(v) an agency of or nonprofit entity established by a
Native American Tribal Government,''.

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Section 609(j) of Public Law 102-140 (105 Stat. 831) is amended by
striking ``5 years after the date of enactment of this Act'', and
inserting ``on October 1, 1997''.

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Section 7(m)(7) of the Small Business Act (15 U.S.C. 636(m)(7)) is
amended to read as follows:
``(7) Program funding for microloans.--
``(A) Number of participants.--During the demonstration
program authorized by this subsection, the Administration may
fund, on a competitive basis, not more than 200 microloan
programs.
``(B) State limitations.--During any fiscal year, a State
shall not receive new loan funds from the Administration that
exceed 125 percent of the State's pro rata share of the
microloan program authorization during such fiscal year, such
share to be based on the population of the State, as compared
to the total population of the United States.''.

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Section 7(m)(8) of the Small Business Act (15 U.S.C. 636(m)(8)) is
amended to read as follows:
``(8) Equitable distribution of intermediaries.--In approving
microloan program applicants under this subsection, the
Administration shall select such intermediaries as will ensure
appropriate availability of loans for small businesses in all
industries located throughout each State, particularly those
located in urban and in rural areas.''.

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Section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)) is amended by striking ``$1,250,000'' and inserting ``$2,
500,000''.

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Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is
amended by adding at the end the following new subparagraph:
``(E) Assistance to certain small business concerns.--Each
intermediary may expend an amount not to exceed 15 percent of
the grant funds received under paragraph (1)(B)(ii) to provide
information and technical assistance to small business concerns
that are prospective borrowers under this subsection.''.

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SERVING ECONOMICALLY DISTRESSED AREAS.
(a) Grant Eligibility.--Section 7(m)(4) of the Small Business Act
(15 U.S.C. 636(m)(4)) is amended--
(1) in subparagraph (B), by inserting ``except for a grant made
to an intermediary that provides not less than 50 percent of its
loans to small business concerns located in or owned by one or more
residents of an economically distressed area,'' after ``under
subparagraph (A),''; and
(2) in subparagraph (C), by striking clause (i) and inserting
the following:
``(i) In general.--In addition to grants made under
subparagraph (A), each intermediary shall be eligible to
receive a grant equal to 5 percent of the total outstanding
balance of loans made to the intermediary under this
subsection if--
``(I) the intermediary provides not less than 25
percent of its loans to small business concerns located
in or owned by one or more residents of an economically
distressed area; or
``(II) the intermediary has a portfolio of loans
made under this subsection that averages not more than
$7,500 during the period of the intermediary's
participation in the program.''.
(b) Definition.--Section 7(m)(11) of the Small Business Act (15
U.S.C. 636(m)(11)) is amended--
(1) in subparagraph (C), by striking the period at the end and
inserting ``; and''; and
(2) by adding at the end the following new subparagraph:
``(D) the term `economically distressed area', as used in
paragraph (4), means a county or equivalent division of local
government of a State in which the small business concern is
located, in which, according to the most recent data available
from the Bureau of the Census, Department of Commerce, not less
than 40 percent of residents have an annual income that is at
or below the poverty level.''.
(c) Termination.--The amendments made by this section shall remain
in effect during the period beginning on the date of enactment of this
Act and ending on October 1, 1997.

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Section 7(a)(14)(A) of the Small Business Act (15 U.S.C.
636(a)(14)(A)) is amended to read as follows:
``(14)(A) The Administration may provide extensions of credit,
standby letters of credit, revolving lines of credit for export
purposes, and other financing to enable small business concerns,
including small business export trading companies and small
business export management companies, to develop foreign markets. A
bank or participating lending institution may establish the rate of
interest on such financings as may be legal and reasonable.''.

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Section 7(a)(3)(B) of the Small Business Act (15 U.S.C.
636(a)(3)(B)) is amended to read as follows:
``(B) if the total amount outstanding and committed (on a
deferred basis) solely for the purposes provided in paragraph
(16) to the borrower from the business loan and investment fund
established by this Act would exceed $1,250,000, of which not
more than $750,000 may be used for working capital, supplies,
or financings under section 7(a)(14) for export purposes;
and''.

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Section 7(a)(2)(B)(iv) of the Small Business Act (15 U.S.C.
636(a)(2)(B)(iv)) is amended to read as follows:
``(iv) not less than 85 percent nor more than 90
percent of the financing outstanding at the time of
disbursement if such financing is a loan under paragraph
(14) or (16).''.

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(a) Establishment.--Title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the
following new section:
``SEC. 507. ACCREDITED LENDERS PROGRAM.
``(a) Establishment.--The Administration is authorized to establish
an Accredited Lenders Program for qualified State and local development
companies that meet the requirements of subsection (b).
``(b) Requirements.--The Administration may designate a qualified
State or local development company as an accredited lender if such
company--
``(1) has been an active participant in the Development Company
Program authorized by sections 502, 503, and 504 for not less than
the preceding 12 months;
``(2) has well-trained, qualified personnel who are
knowledgeable in the Administration's lending policies and
procedures for such Development Company Program;
``(3) has the ability to process, close, and service financing
for plant and equipment under such Development Company Program;
``(4) has a loss rate on the company's debentures that is
reasonable and acceptable to the Administration;
``(5) has a history of submitting to the Administration
complete and accurate debenture guaranty application packages; and
``(6) has demonstrated the ability to serve small business
credit needs for financing plant and equipment through the
Development Company Program.
``(c) Expedited Processing of Loan Applications.--The
Administration shall develop an expedited procedure for processing a
loan application or servicing action submitted by a qualified State or
local development company that has been designated as an accredited
lender in accordance with subsection (b).
``(d) Suspension or Revocation of Designation.--
``(1) In general.--The designation of a qualified State or
local development company as an accredited lender may be suspended
or revoked if the Administration determines that--
``(A) the development company has not continued to meet the
criteria for eligibility under subsection (b); or
``(B) the development company has failed to adhere to the
Administration's rules and regulations or is violating any
other applicable provision of law.
``(2) Effect.--A suspension or revocation under paragraph (1)
shall not affect any outstanding debenture guarantee.
``(e) Definition.--For purposes of this section, the term
`qualified State or local development company' has the same meaning as
in section 503(e).''.
(b) Regulations.--Not later than 120 days after the date of
enactment of this Act, the Administration shall promulgate final
regulations to carry out this section.
(c) Report.--Not later than 1 year after the effective date of
regulations promulgated under subsection (b), and biennially
thereafter, the Administration shall report to the Committees on Small
Business of the Senate and the House of Representatives on the
implementation of this section. Such report shall include data on the
number of development companies designated as accredited lenders, their
debenture guarantee volume, their loss rates, the average processing
time on their guarantee applications, and such other information as the
Administration deems appropriate.

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Section 112(c) of the Small Business Administration Reauthorization
and Amendment Act of 1988 (102 Stat. 2996) is amended--
(1) in paragraph (1), by striking ``(1) In General.--Section
503'' and inserting ``Section 503''; and
(2) by striking paragraph (2).

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Section 308 of the Small Business Investment Act of 1958 (15 U.S.C.
687) is amended by adding at the end the following new subsection:
``(h) Certifications of Eligibility.--
``(1) Certification by small business concern.--Prior to
receiving financial assistance from a company licensed pursuant to
subsection (c) or (d) of section 301, a small business concern
shall certify in writing that it meets the eligibility requirements
of the Small Business Investment Company Program or the Specialized
Small Business Investment Company Program, as applicable.
``(2) Certification by company.--Prior to providing financial
assistance to a small business concern under this Act, a company
licensed pursuant to subsection (c) or (d) of section 301 shall
certify in writing that it has reviewed the application for
assistance of the small business concern and that all documentation
and other information supports the eligibility of the applicant.
``(3) Retention of certifications.--Certificates made pursuant
to paragraphs (1) and (2) shall be retained by the company licensed
pursuant to subsection (c) or (d) of section 301 for the duration
of the financial assistance.''.

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Section 303(g) of the Small Business Investment Act of 1958 (15
U.S.C. 683(g)) is amended by adding at the end the following new
paragraph:
``(13) Participating securities for smaller small business
investment companies.--
``(A) In general.--Subject to the provisions of
subparagraph (B), of the amount of the annual program level of
participating securities approved in appropriations Acts, 50
percent shall be reserved for funding small business investment
companies with private capital of not more than $20,000,000.
``(B) Exception.--During the last quarter of each fiscal
year, if the Administrator determines that there is a lack of
qualified applicants with private capital of not more than
$20,000,000, the Administrator may utilize all or any part of
the program level for securities reserved under subparagraph
(A) for qualified applicants with private capital of more than
$20,000,000.''.

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Not later than May 15, 1995, the Small Business Administration
shall submit to the Committees on Small Business of the House of
Representatives and the Senate a comprehensive report on--
(1) the status and disposition of all small business investment
companies participating in the Small Business Investment Company
Program under subsections (c) and (d) of section 301 of the Small
Business Investment Act of 1958, whether active or in liquidation;
(2) a complete accounting of the assets in and the basis of the
portfolios of such companies;
(3) the projected and actual loss rates for all portfolios in
liquidation or active; and
(4) a detailed accounting of valuation of the Small Business
Investment Company Program's investments.

692b72e5f679c163cadda0b90112d8348dba70060b3999c2ca0ebedbc28a4512

(a) In General.--Title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the
following new section:
``SEC. 508. PREMIER CERTIFIED LENDERS PROGRAM.
``(a) Establishment.--On a pilot program basis, the Administration
may establish a Premier Certified Lenders Program for not more than 15
certified development companies that meet the requirements of
subsection (b).
``(b) Requirements.--
``(1) Application.--To be eligible to participate in the
Premier Certified Lenders Program established under subsection (a),
a certified development company shall prepare and submit to the
Administration an application at such time, in such manner, and
containing such information as the Administration may require.
``(2) Designation.--The Administration may designate a
certified development company as a premier certified lender if such
company--
``(A) has been an active participant in the accredited
lenders program during the 12-month period preceding the date
on which the company submits an application under paragraph
(1), except that, prior to January 1, 1996, the Administration
may waive this requirement if the company is qualified to
participate in the accredited lenders program;
``(B) has a history of submitting to the Administration
adequately analyzed debenture guarantee application packages;
and
``(C) agrees to assume and to reimburse the Administration
for 10 percent of any loss sustained by the Administration as a
result of default by the company in the payment of principal or
interest on a debenture issued by such company and guaranteed
by the Administration under this section.
``(c) Loss Reserve.--
``(1) Establishment.--A company designated as a premier
certified lender shall establish a loss reserve for financings
approved pursuant to this section.
``(2) Amount.--The amount of the loss reserve shall be based
upon the greater of--
``(A) the historic loss rate on debentures issued by such
company; or
``(B) 10 percent of the amount of the company's exposure as
determined under subsection (b)(2)(C).
``(3) Assets.--The loss reserve shall be comprised of
segregated assets of the company which shall be securitized in
favor of the Administration.
``(4) Contributions.--The company shall make contributions to
the loss reserve in the following amounts and at the following
intervals:
``(A) 50 percent when a debenture is closed.
``(B) 25 percent not later than 1 year after a debenture is
closed.
``(C) 25 percent not later than 2 years after a debenture
is closed.
``(d) Loan Approval Authority.--
``(1) In general.--Notwithstanding section 503(b)(6), and
subject to such terms and conditions as the Administration may
establish, the Administration may permit a company designated as a
premier certified lender under this section to approve loans that
are funded with the proceeds of a debenture issued by such company
and may authorize the guarantee of such debenture.
``(2) Scope of review.--The approval of a loan by a premier
certified lender shall be subject to final approval as to
eligibility of any guarantee by the Administration pursuant to
section 503(a), but such final approval shall not include review of
decisions by the lender involving creditworthiness, loan closing,
or compliance with legal requirements imposed by law or regulation.
``(e) Review.--After the issuance and sale of debentures under this
section, the Administration, at intervals not greater than 12 months,
shall review the financings made by each premier certified lender. The
review shall include the lender's credit decisions and general
compliance with the eligibility requirements for each financing
approved under the program authorized under this section. The
Administration shall consider the findings of the review in carrying
out its responsibilities under subsection (f), but such review shall
not affect any outstanding debenture guarantee.
``(f) Suspension or Revocation.--The designation of a State or
local development company as a premier certified lender may be
suspended or revoked if the Administration determines that the
company--
``(1) has not continued to meet the criteria for eligibility
under subsection (b);
``(2) has not established or maintained the loss reserve
required under subsection (c);
``(3) is failing to adhere to the Administration's rules and
regulations; or
``(4) is violating any other applicable provision of law.
``(g) Effect of Suspension or Designation.--A suspension or
revocation under subsection (f) shall not affect any outstanding
debenture guarantee.
``(h) Regulations.--Not later than 180 days after the date of
enactment of this section, the Administration shall promulgate
regulations to carry out this section.
``(i) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter, the Administration shall report to
the Committees on Small Business of the Senate and the House of
Representatives on the implementation of this section. Each report
shall include--
``(1) the number of certified development companies designated
as premier certified lenders;
``(2) the debenture guarantee volume of such companies;
``(3) a comparison of the loss rate for premier certified
lenders to the loss rate for accredited and other lenders; and
``(4) such other information as the Administration deems
appropriate.''.
(b) Repeal.--Effective on October 1, 1997, section 508 of the Small
Business Investment Act of 1958, as added by subsection (a), is
repealed.

304a499fd386dec1408b1c16a6332cf1fe63947d0fe24b2d1e5e7e8299ce49e5

Section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)) is
amended to read as follows:
``(2) Establishment of size standards.--
``(A) In general.--In addition to the criteria specified in
paragraph (1), the Administrator may specify detailed
definitions or standards by which a business concern may be
determined to be a small business concern for the purposes of
this Act or any other Act.
``(B) Additional criteria.--The standards described in
paragraph (1) may utilize number of employees, dollar volume of
business, net worth, net income, a combination thereof, or
other appropriate factors.
``(C) Requirements.--Unless specifically authorized by
statute, no Federal department or agency may prescribe a size
standard for categorizing a business concern as a small
business concern, unless such proposed size standard--
``(i) is proposed after an opportunity for public
notice and comment;
``(ii) provides for determining--
``(I) the size of a manufacturing concern as
measured by the manufacturing concern's average
employment based upon employment during each of the
manufacturing concern's pay periods for the preceding
12 months;
``(II) the size of a business concern providing
services on the basis of the annual average gross
receipts of the business concern over a period of not
less than 3 years;
``(III) the size of other business concerns on the
basis of data over a period of not less than 3 years;
or
``(IV) other appropriate factors; and
``(iii) is approved by the Administrator.''.

c86544b7078cb6fbcf189917d4cebbf80672bafca9eeb8c08f5381529fc1a73b

Section 207 of the Small Business Administration Reauthorization
and Amendment Act of 1988 (15 U.S.C. 694b note) is amended by striking
``September 30, 1994'' and inserting ``September 30, 1995''.

d85cacb0bb7dcbd437e45bf34a2d70c5718a0a21bdce4e90d9dc0365f06effdd

EDUCATION CENTERS.
(a) In General.--The Small Business Administration shall promote
the award of Federal manufacturing contracts to small business concerns
that participate in manufacturing application and education centers by
working with the Department of Commerce and other agencies to identify
components and subsystems that are both critical and currently foreign-
sourced.
(b) Qualifications.--In order to qualify as a manufacturing
application and education center under this section, an entity shall
have the capacity to assist small business concerns in a shared-use
production environment and to offer the following services:
(1) Technology demonstration.
(2) Technology education.
(3) Technology application support.
(4) Technology advancement support.
(c) Inapplicability of Certain Requirements.--The requirements of
section 15(o)(1)(B) of the Small Business Act shall not apply with
respect to any manufacturing contract carried out by a small business
concern in conjunction with a manufacturing application and education
center under this section.
(d) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Small Business
Administration shall promulgate final regulations to carry out this
section.
(e) Termination of Authority.--The authority of the Small Business
Administration under this section shall terminate on September 30,
1997.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Small Business Administration, such sums as may be
necessary to carry out this section.

8f24df4fc0e1b12d1156799977657221241d7e0cafbc9fd624e4526d9c146ec0

(a) Establishment.--The Administrator shall establish and carry out
a pilot program in accordance with the requirements of this section to
provide improved access to Federal contract opportunities for very
small business concerns.
(b) Procurement Contracts.--
(1) In general.--In carrying out subsection (a), the
Administrator shall identify procurement contracts of Federal
agencies for award under the program.
(2) Contract awards.--Under the program established pursuant to
this section, the award of a procurement contract of a Federal
agency identified by the Administration pursuant to paragraph (1)
shall be made by the agency to an eligible program participant
selected, and determined to be responsible, by the agency.
(3) Competition.--All contract opportunities offered for award
under the program shall be awarded on the basis of competition
among eligible very small business concerns.
(c) Eligibility.--Only a very small business concern shall be
eligible to compete for a contract to be awarded under the program. A
contracting officer may rely in good faith on a written certification
that a small business concern is a very small business concern.
(d) Delegation of Authority.--The authority of the Administrator
under subsections (b)(1) and (c) shall be delegated to not less than 5
and not more than 10 districts of the Administration to promote the
award of contracts that can be performed by very small business
concerns.
(e) Financial Assistance.--In order to assist very small business
concerns receiving contract awards under the program, the Administrator
shall establish a preauthorization program for such concerns for the
purpose of receiving financial assistance under section 7(a) of the
Small Business Act.
(f) Attainment of Contract Goals.--All contract awards made under
the program shall be counted toward the attainment of the goals
specified in section 15(g) of the Small Business Act.
(g) Regulations.--The Administrator shall--
(1) issue proposed regulations to carry out this section not
later than 180 days after the date of enactment of this Act; and
(2) issue final regulations to carry out this section not later
than 270 days after the date of enactment of this Act.
(h) Report to Congress.--Not later than April 30, 1997, the
Administrator shall transmit to the Congress a report on the results of
the program, together with such recommendations as the Administrator
deems appropriate.
(i) Program Term.--Implementation of the program shall begin not
later than August 30, 1995. The program authorized by this section
shall expire on September 30, 1998.
(j) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Administration.--The term ``Administration'' means the
Small Business Administration.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(3) Program.--The term ``program'' means a program established
pursuant to subsection (a).
(4) Very small business concern.--The term ``very small
business concern'' means a small business concern that--
(A) has not more than 15 employees; and
(B) has average annual receipts that total not more than
$1,000,000.

fd6f655c0f4737d3ed17993515c142d7bf01deb51d4cea2f0e9dd0c0ecb29cbd

ASIDE CONTRACTS.
Section 15(c) of the Small Business Act (15 U.S.C. 644(c)) is
amended--
(1) by amending paragraph (2)(A) to read as follows:
``(2)(A) During fiscal year 1995, public or private organizations
for the handicapped shall be eligible to participate in programs
authorized under this section in an aggregate amount not to exceed
$40,000,000.''; and
(2) by adding at the end the following new paragraph:
``(7) Agencies awarding one or more contracts to such an
organization pursuant to the provisions of this subsection may use
multiyear contracts, if appropriate.''.
Subtitle A--General Provisions

308b09b3706701c07d3e1b571ef4fa72c485f342aacc116d26b449eaa2358e4b

(a) In General.--
(1) Repeal.--The amendments made by section 5(a) of Small
Business Computer Security and Education Act of 1984 (15 U.S.C. 633
note) are hereby repealed.
(2) Effective date.--Paragraph (1) shall take effect on
September 30, 1997.
(b) Conforming Amendment.--Section 7(b) of the Small Business
Computer Security and Education Act of 1984 (15 U.S.C. 633 note) is
amended in the second sentence by striking ``and the amendments made to
section 8(b)(1)(A) of the Small Business Act by section 5(a)(2) of this
Act are'' and inserting ``is''.

993a5a2e7a3eb772450481ed3ec95030ab585861cf3861afda5d6e206ec5e57d

Section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) is
amended to read as follows:
``(4) Small business development center program level.--
``(A) In general.--The Administration shall require as a
condition of any grant (or amendment or modification thereof) made
to an applicant under this section, that a matching amount
(excluding any fees collected from recipients of such assistance)
equal to the amount of such grant be provided from sources other
than the Federal Government, to be comprised of not less than 50
percent cash and not more than 50 percent of indirect costs and in-
kind contributions.
``(B) Restriction.--The matching amount described in
subparagraph (A) shall not include any indirect costs or in-kind
contributions derived from any Federal program.
``(C) National program.--
``(i) In general.--Except as provided in clause (ii), no
State receiving funds under this section shall receive a grant
that exceeds--
``(I) for fiscal year 1995, the sum of such State's pro
rata share of a national program based upon the population
of the State as compared to the total population in the
United States, and $125,000; or
``(II) in each succeeding fiscal year, the sum of such
State's pro rata share of a national program based upon the
population of the State as compared to the total population
in the United States, and $200,000.
``(ii) Exception.--Grants provided to a small business
development center by the Administration or another agency to
carry out the provisions of subsection (c)(3)(G) shall not be
included in the calculation of maximum funding of a small
business development center.
``(iii) Amount.--The amount of the national program shall
be--
``(I) $70,000,000 through September 30, 1996;
``(II) $77,500,000 from October 1, 1996 through
September 30, 1997; and
``(III) $85,000,000 beginning October 1, 1997.
The amount for which a small business development center is
eligible under this paragraph shall be based upon the amount of
the national program in effect as of the date for commencement
of performance of the small business development center's
grant.''.

35c8f39cebae1202c9df1b8acafe88f590f094306ed9d22860a82efe92f619f7

Section 21(a)(5) of the Small Business Act (15 U.S.C. 648(a)(5)) is
amended to read as follows:
``(5) Federal contracts with small business development centers.--
``(A) In general.--Subject to the conditions set forth in
subparagraph (B), a small business development center may enter
into a contract with a Federal department or agency to provide
specific assistance to small business concerns.
``(B) Contract prerequisites.--Before bidding on a contract
described in subparagraph (A), a small business development center
shall receive approval from the Associate Administrator of the
small business development center program of the subject and
general scope of the contract. Each approval under subparagraph (A)
shall be based upon a determination that the contract will provide
assistance to small business concerns and that performance of the
contract will not hinder the small business development center in
carrying out the terms of the grant received by the small business
development center from the Administration.
``(C) Exemption from matching requirement.--A contract under
this paragraph shall not be subject to the matching funds or
eligibility requirements of paragraph (4).
``(D) Additional provision.--Notwithstanding any other
provision of law, a contract for assistance under this paragraph
shall not be applied to any Federal department or agency's small
business, woman-owned business, or socially and economically
disadvantaged business contracting goal under section 15(g).''.

3c7fef99e6cb1970b2e2149f1c6eda4f89a061e5fac3bdb304939f54bbedc356

CERTIFICATION.
Section 21(k) of the Small Business Act (15 U.S.C. 648(k)) is
amended to read as follows:
``(k) Program Examination and Certification.--
``(1) Examination.--Not later than 180 days after the date of
enactment of this subsection, the Administration shall develop and
implement a biennial programmatic and financial examination of each
small business development center established pursuant to this
section.
``(2) Certification.--The Administration may provide financial
support, by contract or otherwise, to the association authorized by
subsection (a)(3)(A) for the purpose of developing a small business
development center certification program.
``(3) Extension or renewal of cooperative agreements.--In
extending or renewing a cooperative agreement of a small business
development center, the Administration shall consider the results
of the examination and certification program conducted pursuant to
paragraphs (1) and (2).''.

86476b48a24af1bdc8777d37ccd8e6995ba78b4130e3d34e71a9a179e515d78b

Section 25(i) of the Small Business Act (15 U.S.C. 652(i)) is
amended by striking ``and $2,000,000 for each of fiscal years 1993 and
1994'' and inserting ``, $2,000,000 for each of fiscal years 1993 and
1994, and $1,000,000 for fiscal year 1995''.

96169b41f27ca56e031b7e697b2a313638a365591bccc053e846155bd47c369e

(a) Establishment.--The Administrator of the Small Business
Administration may establish and carry out in each of fiscal years
1995, 1996, and 1997 a mobile resource pilot program (hereafter in this
section referred to as the ``program'') in accordance with the
requirements of this section.
(b) Mobile Resource Center Vehicles.--Under the program, the
Administration may use mobile resource center vehicles to provide
technical assistance, information, and other services available from
the Small Business Administration to traditionally underserved
populations. Two of such vehicles should be utilized in rural areas and
2 of such vehicles should be utilized in urban areas.
(c) Report to Congress.--If the Administrator conducts the program
authorized in this section, the Administrator shall, not later than
December 31, 1996, transmit to the Congress a report containing the
results of such program, together with recommendations for appropriate
legislative and administrative action.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $900,000 for each of fiscal
years 1995, 1996, and 1997, such sums to remain available until
expended. Of such sums--
(1) $800,000 may be made available for the purchase or lease of
mobile resource center vehicles and operating expenses; and
(2) $100,000 may be made available for studies, startup
expenses, and other administrative expenses.

74e882d182e2428588e57183f85257661710439c4158bf02e37473646ce0c68a

Section 8(b)(1)(A) of the Small Business Act (15 U.S.C.
637(b)(1)(A)) is amended by inserting ``including information on the
benefits and risks of franchising,'' after ``small-business
enterprises,''.
Subtitle B--Development of Woman-Owned Businesses

601a9790d1ebf8e0dc7fe1227b0affaa3563712a6fcf6871e48eac4b8bef2ded

The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 28 (as added by section 2 of the
Women's Business Development Act of 1991) as section 29; and
(2) in section 29(g), as redesignated, by striking ``1995'' and
inserting ``1997''.

d439f13ca21b0efb7e11bcb36b37585c9c32fba380a5c0a502511b0b1bcd021e

Section 29 of the Small Business Act (15 U.S.C. 656), as
redesignated by section 411 of this Act, is amended by adding at the
end the following new subsection:
``(h) Office of Women's Business Ownership.--There is hereby
established within the Administration an Office of Women's Business
Ownership, which shall be responsible for the administration of the
Administration's programs for the development of women's business
enterprises, as such term is defined in section 408 of the Women's
Business Ownership Act of 1988. The Office of Women's Business
Ownership shall be administered by an Assistant Administrator, who
shall be appointed by the Administrator.''.

df5ef7822b416319b57717d0df11fba01cc30544bae773fe4ccba23486b7514f

Title IV of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended to read as follows:
``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE
``SEC. 401. ESTABLISHMENT OF THE INTERAGENCY COMMITTEE.
``There is established an interagency committee to be known as the
Interagency Committee on Women's Business Enterprise.
``SEC. 402. DUTIES OF THE INTERAGENCY COMMITTEE.
``(a) In General.--The Interagency Committee shall--
``(1) monitor, coordinate, and promote the plans, programs, and
operations of the departments and agencies of the Federal
Government that may contribute to the establishment and growth of
women's business enterprise;
``(2) develop and promote new public sector initiatives,
policies, programs, and plans designed to foster women's business
enterprise;
``(3) review, monitor, and coordinate plans and programs,
developed in the public sector, which affect the ability of women-
owned businesses to obtain capital and credit;
``(4) promote and assist, as appropriate, in the development of
surveys of women-owned business; and
``(5) design a comprehensive plan for a joint public-private
sector effort to facilitate growth and development of women's
business enterprise, which plan shall, not later than 1 year after
the effective date of the Small Business Administration
Reauthorization and Amendments Act of 1994, be submitted to the
President for review.
``(b) Meetings.--The Interagency Committee shall meet not less than
biannually at such times as the Interagency Committee determines to be
necessary to perform the duties under subsection (a). A majority of the
members of the Committee shall constitute a quorum for the approval of
recommendations or reports issued pursuant to this section.
``(c) Interaction With Council.--In performing its duties under
subsection (a), the Interagency Committee shall consult with the
Council. The Interagency Committee may meet jointly with the Council at
the discretion of the chairperson of the Interagency Committee and the
chairperson of the Council, but not less frequently than twice
annually. The chairperson of the Interagency Committee shall serve as
chairperson of any joint meetings of the Interagency Committee and the
Council.
``SEC. 403. MEMBERSHIP OF THE INTERAGENCY COMMITTEE.
``(a) In General.--
``(1) Participants.--The Interagency Committee shall be
composed of 1 representative from each of the following:
``(A) The Department of Commerce.
``(B) The Department of Defense.
``(C) The Department of Health and Human Services.
``(D) The Department of Labor.
``(E) The Small Business Administration.
``(F) The Department of Transportation.
``(G) The Department of the Treasury.
``(H) The General Services Administration.
``(I) The Board of Governors of the Federal Reserve.
``(J) The Executive staff of the President engaged in
policymaking activities.
``(2) Appointments.--
``(A) In general.--Except as provided in subparagraph (B),
the head of each department and agency listed in paragraph (1)
shall, not later than 45 days after the date of enactment of
the Small Business Administration Reauthorization and
Amendments Act of 1994, designate a representative who shall be
a policymaking official within the department or agency.
``(B) Small business administration.--With respect to the
Small Business Administration, the representative shall be the
Assistant Administrator of the Office of Women's Business
Ownership, who also shall serve as the vice chairperson of the
Interagency Committee.
``(3) Other participation.--Other representatives of the
Federal Government not listed in paragraph (1) may participate in
the meetings and functions of the Interagency Committee on a
temporary basis as needed to carry out specific Interagency
Committee goals.
``(b) Appointment of Chairperson.--Not later than 45 days after
enactment of the Small Business Administration Reauthorization and
Amendments Act of 1994, the President, in consultation with the
Administrator of the Small Business Administration, shall appoint 1 of
the members of the Interagency Committee to serve as chairperson.
``(c) Noncompensation.--The members of the Interagency Committee
shall serve without additional pay for such membership.
``(d) Detail of Federal Employees.--Upon request by the chairperson
of the Interagency Committee, the head of any Federal department or
agency may detail any of the personnel of such agency to assist the
Interagency Committee in carrying out its duties under this title
without regard to section 3341 of title 5, United States Code.
``SEC. 404. REPORTS FROM THE INTERAGENCY COMMITTEE.
``Not later than September 30, 1995, and annually thereafter, the
Interagency Committee shall transmit to the President and to the
Committees on Small Business of the Senate and the House of
Representatives, a report containing--
``(1) any recommendations of the Council and any comments of
the Interagency Committee thereon;
``(2) a detailed description of the activities of the
Interagency Committee;
``(3) the findings and conclusions of the Interagency
Committee; and
``(4) the Interagency Committee's recommendations for such
legislation and administrative actions as the Interagency Committee
considers appropriate to promote the development of small business
concerns owned and controlled by women.
``SEC. 405. ESTABLISHMENT OF THE NATIONAL WOMEN'S BUSINESS COUNCIL.
``There is established a council to be known as the National
Women's Business Council, which shall serve as an independent source of
advice and policy recommendations to the Interagency Committee, to the
Administrator through the Assistant Administrator of the Office of
Women's Business Ownership, to the Congress, and to the President.
``SEC. 406. DUTIES OF THE COUNCIL.
``(a) In General.--The Council shall advise and consult with the
Interagency Committee on matters relating to the activities, functions,
and policies of the Interagency Committee, as provided in this title.
The Council shall meet jointly with the Interagency Committee at the
discretion of the chairperson of the Council and the chairperson of the
Interagency Committee, but not less than biannually.
``(b) Meetings.--The Council shall meet separately at such times as
the Council deems necessary. A majority of the members of the Council
shall constitute a quorum for the approval of recommendations or
reports issued pursuant to this section.
``(c) Recommendations.--The Council shall make annual
recommendations for consideration by the Interagency Committee. The
Council shall also provide reports and make such other recommendations
as it deems appropriate to the Interagency Committee, to the President,
to the Administrator, and to the Committees on Small Business of the
Senate and the House of Representatives.
``(d) Other Duties.--The Council shall--
``(1) review, coordinate, and monitor plans and programs
developed in the public and private sectors, which affect the
ability of women-owned business enterprises to obtain capital and
credit;
``(2) promote and assist in the development of a women's
business census and other surveys of women-owned businesses;
``(3) monitor and promote the plans, programs, and operations
of the departments and agencies of the Federal Government which may
contribute to the establishment and growth of women's business
enterprise;
``(4) develop and promote new initiatives, policies, programs,
and plans designed to foster women's business enterprise; and
``(5) advise and consult with the Interagency Committee in the
design of a comprehensive plan for a joint public-private sector
effort to facilitate growth and development of women's business
enterprise.
``SEC. 407. MEMBERSHIP OF THE COUNCIL.
``(a) Chairperson.--Not later than 45 days after the date of
enactment of the Small Business Administration Reauthorization and
Amendments Act of 1994, the President shall appoint an individual to
serve as chairperson of the Council, in consultation with the
Administrator. The chairperson of the Council shall be a prominent
business woman who is qualified to head the Council by virtue of her
education, training, and experience.
``(b) Other Members.--Not later than 60 days after the date of
enactment of the Small Business Administration Reauthorization and
Amendments Act of 1994, the Administrator shall appoint, in
consultation with the Assistant Administrator of the Office of Women's
Business Ownership and the chairperson of the Council appointed under
subsection (a), 9 members of the Council, of whom--
``(1) 2 shall be--
``(A) owners of small businesses, as such term is defined
in section 3 of the Small Business Act; and
``(B) members of the same political party as the President;
``(2) 2 shall--
``(A) be owners of small businesses, as such term is
defined in section 3 of the Small Business Act; and
``(B) not be members of the same political party as the
President; and
``(3) 5 shall be representatives of national women's business
organizations.
``(c) Diversity.--In appointing members of the Council, the
Administrator shall, to the extent possible, ensure that the members
appointed reflect geographic, racial, economic, and sectoral diversity.
``(d) Service Term.--The term of service of the members of the
Council shall be 3 years.
``(e) Other Federal Service.--If any member of the Council
subsequently becomes an officer or employee of the Federal Government
or of the Congress, such individual may continue as a member of the
Council for not longer than the 30-day period beginning on the date on
which such individual becomes such an officer or employee.
``(f) Vacancies.--A vacancy on the Council shall, not later than 30
days after the date on which the vacancy occurs, be filled in the same
manner in which the original appointment was made.
``(g) Reimbursements.--Members of the Council shall serve without
pay for such membership, except that members shall be entitled to
reimbursement for travel, subsistence, and other necessary expenses
incurred by them in carrying out the functions of the Council, in the
same manner as persons serving on advisory boards pursuant to section
8(b) of the Small Business Act.
``(h) Executive Director.--Not later than 60 days after the date of
enactment of the Small Business Administration Reauthorization Act of
1994, the Administrator, in consultation with the chairperson of the
Council, shall appoint an executive director of the Council. Upon the
recommendation by the executive director, the chairperson of the
Council may appoint and fix the pay of 4 additional employees of the
Council, at a rate of pay not to exceed the maximum rate of pay payable
for a position at GS-15 of the General Schedule. All such appointments
shall be subject to the appropriation of funds.
``(i) Rates of Pay.--The executive director and staff of the
Council may be appointed without regard to the provisions of title 5,
United States Code, governing appointments in the competitive service,
and except as provided in subsection (e), may be paid without regard to
the provisions of chapter 51 and subchapter III of chapter 53 of such
title relating to classification and General Schedule pay rates, except
that the executive director may not receive pay in excess of the annual
rate of basic pay payable for a position at ES-3 of the Senior
Executive Pay Schedule under section 5832 of title 5, United States
Code.
``SEC. 408. DEFINITIONS.
``For purposes of this title--
``(1) the term `Administration' means the Small Business
Administration;
``(2) the term `Administrator' means the Administrator of the
Small Business Administration;
``(3) the term `control' means exercising the power to make
policy decisions concerning a business;
``(4) the term `Council' means the National Women's Business
Council, established under section 405;
``(5) the term `Interagency Committee' means the Interagency
Committee on Women's Business Enterprise, established under section
401;
``(6) the term `operate' means being actively involved in the
day-to-day management of a business;
``(7) the term `women's business enterprise' means--
``(A) a business or businesses owned by a woman or a group
of women; or
``(B) the establishment, maintenance, or development of a
business or businesses by a woman or a group of women; and
``(8) the term `women-owned business' means a small business
which a woman or a group of women--
``(A) control and operate; and
``(B) own not less than 51 percent of the business.
``SEC. 409. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated for each of fiscal years
1995 through 1997, to carry out this title, $350,000.''.

1a91f268fc83ffed40774a8f9ba1cc4bf0f7c4904b184ac5da23eb3a87de28b6

(a) In General.--Subject to the limitation contained in subsection
(b), in order to provide continuity in the development of women-owned
business, the Administration may approve reasonable amounts made
available to carry out title IV of the Women's Business Ownership Act
of 1988 to be used to pay the salaries, if any, and expenses of the
members and staff of the National Women's Business Council that are
appointed on or before the date of enactment of this Act.
(b) Time Period.--No payments shall be made under subsection (a)
after the expiration of the 90-day period beginning on the date of
enactment of this Act.

02f82390510526e2f270899c2c019f1e67cd283223e76937c254172665908e1f

Section 8(b)(1)(G) of the Small Business Act (15 U.S.C.
637(b)(1)(G)) is amended by striking ``section 8(b)(1) of this Act''
and by inserting ``this Act and to carry out the activities authorized
by title IV of the Women's Business Ownership Act of 1988''.

fb31b135f3a59bb42c767f0fab259b52e442c53024f56ca05c4da66c6f196d37

The table of contents for the Women's Business Ownership Act of
1988 (15 U.S.C. 631 note) is amended by striking the items relating to
title IV and inserting the following:
``TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE
``Sec. 401.  Establishment of the Interagency Committee.
``Sec. 402.  Duties of the Interagency Committee.
``Sec. 403.  Membership of the Interagency Committee.
``Sec. 404.  Reports from the Interagency Committee.
``Sec. 405.  Establishment of the National Women's Business Council.
``Sec. 406.  Duties of the Council.
``Sec. 407.  Membership of the Council.
``Sec. 408.  Definitions.
``Sec. 409.  Authorization of Appropriations.''.

609a6b823b58689efae0db3000e070be5314067f40371f1580976b10304e92c3

This title may be cited as the ``Small Business Prepayment Penalty
Relief Act of 1994''.

3fc17571351d2b3ca548f04a612721863542f78f4b3a518301293c023432f314

TITLE V

-RELIEF FROM DEBENTURE PREPAYMENT PENALTIES

(a) In General.--The Small Business Administration shall fully
utilize the $30,000,000 appropriated in Public Law 103-317 to reduce,
in accordance with this title and the amendments made by this title,
prepayment penalties imposed in connection with debentures issued
under--
(1) section 303 or 503 of the Small Business Investment Act of
1958, which have been purchased by the Federal Financing Bank; and
(2) title III to companies operating under section 301(d) of
such Act, which have been purchased by the Small Business
Administration.
(b) Equal Opportunity.--In order to provide an equal opportunity to
participate in the program authorized under this title, the Small
Business Administration shall afford each borrower or issuer of a
debenture subject to this title, not less than 45 days to elect to
participate and to provide an earnest money deposit. The Administration
shall subsequently allow a period of not less than 4 months, during
which those borrowers or issuers that elect to participate shall be
allowed to complete the prepayment process.
(c) Restrictions on Participation.--In no event shall the Small
Business Administration--
(1) allow any borrower or issuer to participate in the program
if the borrower or issuer fails to--
(A) make a timely election and provide the deposit on a
timely basis; or
(B) complete the prepayment process within the required
time; or
(2) allow any borrower or issuer to participate in the program
at a percentage rate other than the rate finally determined to be
applicable to all other borrowers or issuers with similar terms of
years.

2b79940a46e4d9e511b843f2ba23912c1d817513473e0b24e0ecd621ae863d06

Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695
et seq.), as amended by section 217, is amended by adding at the end
the following new section:
``SEC. 509. PREPAYMENT OF DEVELOPMENT COMPANY DEBENTURES.
``(a) In General.--
``(1) Prepayment authorized.--Subject to the requirements set
forth in subsection (b), an issuer of a debenture purchased by the
Federal Financing Bank and guaranteed by the Administration under
this Act may, at the election of the borrower (in the case of a
loan under section 503) or the issuer (in the case of a small
business investment company) and with the approval of the
Administration, prepay such debenture in accordance with the
provisions of this section. A small business investment company
operating under the authority of section 301(d) that has issued a
debenture that was purchased by and is held by the Administration,
may, under the same terms and conditions, prepay such debenture,
and the penalty as provided in this section, and shall thereafter
be immediately eligible to apply for additional assistance from the
Administration.
``(2) Procedure.--
``(A) In general.--In making a prepayment under paragraph
(1)--
``(i) the borrower (in the case of a loan under section
503) or the issuer (in the case of a small business
investment company) shall pay to the Federal Financing Bank
an amount that is equal to the sum of the unpaid principal
balance due on the debenture as of the date of the
prepayment (plus accrued interest at the coupon rate on the
debenture) and the amount of the repurchase premium
described in subparagraph (B); and
``(ii) the Administration shall pay to the Federal
Financing Bank the difference between the repurchase
premium paid by the borrower under this subsection and the
repurchase premium that the Federal Financing Bank would
otherwise have received.
``(B) Repurchase premium.--
``(i) In general.--For purposes of subparagraph (A)(i),
the repurchase premium is the amount equal to the product
of--
``(I) the unpaid principal balance due on the
debenture on the date of prepayment; and
``(II) the applicable percentage rate, as
determined in accordance with clauses (ii) and (iii).
``(ii) Applicable percentage rate.--For purposes of
clause (i)(II), the applicable percentage rate means--
``(I) with respect to a 10-year term loan, 8.5
percent;
``(II) with respect to a 15-year term loan, 9.5
percent;
``(III) with respect to a 20-year term loan, 10.5
percent; and
``(IV) with respect to a 25-year term loan, 11.5
percent.
``(iii) Adjustments to applicable percentage rate.--The
percentage rates described in clause (ii) shall be
increased or decreased by the Administration by a factor
not to exceed one-third, if the same factor is applied in
each case and if the Administration determines that an
adjustment is necessary, based on the number of borrowers
having given notice of their intent to participate, in
order to make the program (including the amounts
appropriated for this purpose under Public Law 103-317)
result in no substantial net gain or loss of revenue to the
Federal Financing Bank or to the Administration. Amounts
collected in excess of the amount necessary to ensure
revenue neutrality shall be refunded to the borrowers.
``(b) Requirements.--For purposes of subsection (a), the
requirements of this subsection are that--
``(1) the debenture is outstanding and neither the loan that
secures the debenture, if any, nor the debenture is in default on
the date on which the prepayment is made;
``(2) State, local, or personal funds, or the proceeds of a
refinancing in accordance with subsection (d) of this section under
the programs authorized by this title, are used to prepay or roll
over the debenture; and
``(3) with respect to a debenture issued under section 503, the
issuer certifies that the benefits, net of fees and expenses
authorized herein, associated with prepayment of the debenture are
entirely passed through to the borrower.
``(c) No Prepayment Fees or Penalties.--No fees or penalties other
than those specified in this section may be imposed on the issuer, the
borrower, the Administration, or any fund or account administered by
the Administration as the result of a prepayment under this section.
``(d) Refinancing Limitations.--
``(1) In general.--The refinancing of a debenture under
sections 504 and 505, in accordance with subsection (b)(2)--
``(A) shall not exceed the amount necessary to prepay
existing debentures, including all costs associated with the
refinancing and any applicable prepayment penalty or repurchase
premium; and
``(B) except as provided in paragraphs (2) and (3), shall
be subject to the provisions of sections 504 and 505 and the
rules and regulations promulgated thereunder, including rules
and regulations governing payment of authorized expenses,
commissions, fees, and discounts to brokers and dealers in
trust certificates issued pursuant to section 505.
``(2) Job creation.--An applicant for refinancing under section
504 of a loan made pursuant to section 503 shall not be required to
demonstrate that a requisite number of jobs will be created with
the proceeds of a refinancing.
``(3) Loan processing fee.--To cover the cost of loan
packaging, processing, and other administrative functions, a
development company that provides refinancing under subsection
(b)(2) may impose a one-time loan processing fee, not to exceed 0.5
percent of the principal amount of the loan.
``(4) New debentures.--Issuers of debentures under title III
may issue new debentures in accordance with such title in order to
prepay existing debentures as authorized in this section.
``(5) Preliminary notice.--
``(A) In general.--The Administration shall use certified
mail and other reasonable means to notify each eligible
borrower of the prepayment program provided in this title. Each
preliminary notice shall specify the range and dollar amount of
repurchase premiums which could be required of that borrower in
order to participate in the program. In carrying out this
program, the Administration shall provide a period of not less
than 45 days following the receipt of such notice by the
borrower during which the borrower must notify the
Administration of the borrower's intent to participate in the
program. The Administration shall require that a borrower who
gives notice of its intent to participate to make an earnest
money deposit of $1,000 which shall not be refundable but which
shall be credited toward the final repurchase premium.
``(B) Definition.--For purposes of this paragraph, the term
`borrower', in the case of a small business investment company
or a specialized small business investment company, means
`issuer'.
``(6) Final notice.--Based upon the response to the preliminary
notice under paragraph (5), the Administration shall make a final
computation of the necessary prepayment premiums and shall notify
each qualified respondent of the results of such computation. Each
qualified respondent shall be afforded not less than 4 months to
complete the prepayment.
``(e) Definitions.--For purposes of this section--
``(1) the term `issuer' means--
``(A) the qualified State or local development company that
issued a debenture pursuant to section 503, which has been
purchased by the Federal Financing Bank; and
``(B) a small business investment company licensed pursuant
to subsection (c) or (d) of section 301; or
``(2) the term `borrower' means a small business concern whose
loan secures a debenture issued pursuant to section 503.
``(f) Regulations.--Not later than 30 days after the date of
enactment of this section, the Administration shall promulgate such
regulations as may be necessary to carry out this section.
``(g) Authorization.--There are authorized to be appropriated
$30,000,000 to carry out the provisions of The Small Business
Prepayment Penalty Relief Act of 1994.''.

d236cbf2600dffea49c050a5d85f1ef9b0bd6af1d324b8abedb50f9787eeb4f4

Section 4(c)(5)(B)(ii) of the Small Business Act (15 U.S.C.
633(c)(5)(B)(ii)) is amended to read as follows:
``(ii) Following the close of each fiscal year, the Administration
shall pay into the miscellaneous receipts of the United States Treasury
the actual interest that the Administration collects during that fiscal
year on all financings made under this Act.''.

d706462d28ada79734248f27e88c6d2d71923604a0a1ce494ff556d0ecf8366e

Section 5(b) of the Small Business Act (15 U.S.C. 634(b)) 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 a semicolon; and
(3) by adding at the end the following new paragraphs:
``(12) impose, retain, and use only those fees which are
specifically authorized by law or which are in effect on September
30, 1994, and in the amounts and at the rates in effect on such
date, except that the Administrator may, subject to approval in
appropriations Acts, impose, retain, and utilize, additional fees--
``(A) not to exceed $100 for each loan servicing action
(other than a loan assumption) requested after disbursement of
the loan, including any substitution of collateral, release or
substitution of a guarantor, reamortization, or similar action;
``(B) not to exceed $300 for loan assumptions;
``(C) not to exceed 1 percent of the amount of requested
financings under title III of the Small Business Investment Act
of 1958 for which the applicant requests a commitment from the
Administration for funding during the following year; and
``(D) to recover the direct, incremental cost involved in
the production and dissemination of compilations of information
produced by the Administration under the authority of this Act
and the Small Business Investment Act of 1958; and
``(13) collect, retain and utilize, subject to approval in
appropriations Acts, any amounts collected by fiscal transfer
agents and not used by such agent as payment of the cost of loan
pooling or debenture servicing operations, except that amounts
collected under this paragraph and paragraph (12) shall be utilized
solely to facilitate the administration of the program that
generated the excess amounts.''.

0c5fa9e37bdb2091eb7e2af048c4744dc3ff7184d2fbfce9493868877684ebc3

Section 7(a)(21) of the Small Business Act (15 U.S.C. 636(a)(21))
is amended by adding at the end the following new subparagraph:
``(E) Job creation and community benefit.--In providing
assistance under this paragraph, the Administration shall
develop procedures to ensure, to the maximum extent
practicable, that such assistance is used for projects that--
``(i) have the greatest potential for--
``(I) creating new jobs for individuals whose
employment is involuntarily terminated due to
reductions in Federal defense expenditures; or
``(II) preventing the loss of jobs by employees of
small business concerns described in subparagraph
(A)(i); and
``(ii) have substantial potential for stimulating new
economic activity in communities most affected by
reductions in Federal defense expenditures.''.

7237864c003e8a93f64f428a774d858db44b003fc9d685ed58b25b3594d792ab

Section 7(m)(9)(B) of the Small Business Act (15 U.S.C.
636(m)(9)(B)) is amended--
(1) by inserting ``and loan guarantees'' after ``for loans'';
and
(2) by inserting after ``experienced microlending
organizations'' the following: ``and national and regional
nonprofit organizations that have demonstrated experience in
providing training support for microenterprise development and
financing.''.

eca3f258e330e15b371141a5796ba0fd492b644512fc9cbb8b79ffea28128fa7

(a) Defense Conversion.--Section 7(a)(21)(A) of the Small Business
Act (15 U.S.C. 636(a)(21)(A)) is amended by striking ``under the'' and
inserting ``on a guaranteed basis under the''.
(b) Additional Technical Clarification.--Section 204 of Public Law
94-305 (15 U.S.C. 634d) is amended by striking ``section 202'' and
inserting ``this title''.

54a3185f9be6e6010fe6e5cf1c580edc3e355c236362cd2db623abf9ef7ff1bd

DEVELOPMENT COMPANY PROGRAM.
(a) Study Authorized.--The Administration shall conduct a study
of--
(1) the Guaranteed Business Loan program under section 7(a) of
the Small Business Act; and
(2) the Development Company program under sections 502, 503,
and 504 of the Small Business Investment Act of 1958.
(b) Evaluation.--For purposes of the study conducted under
subsection (a), the Administration shall evaluate the performance of
the programs described in paragraphs (1) and (2) of subsection (a),
using data from the most recent 4-year period. Such evaluation shall
focus on the following factors:
(1) The number, dollar amount, and average size of the loans or
financings under each program.
(2) The number, dollar amount, and average size of the loans or
financings made to woman-owned and minority-owned businesses under
each program.
(3) The geographic distribution of the loans or financings
under each program.
(4) The jobs created or maintained attributable to the loans or
financings under each program.
(5) The number, dollar amount, and average size of the loans or
financings on which borrowers defaulted under each program.
(6) The amounts recovered by the Administration after default,
foreclosure, or otherwise under each program.
(7) The number of companies which are no longer in business
despite receiving the loans or financings under each program.
(8) The taxes paid by businesses which received the loans or
financings under each program.
(9) Such other information as the Administration determines to
be appropriate for a complete evaluation of each program.
(c) Contracting With Independent Entities.--In carrying out
subsections (a) and (b), the Administration may contract with an
independent entity or entities--
(1) to conduct the study pursuant to subsection (a); and
(2) to develop a database of information to enable the
Administration to maintain and access, on an ongoing basis, current
information relating to the factors set forth in subsection (b).
(d) Date.--The study authorized by subsection (a) shall be
completed not later than September 30, 1995.

7702c5d5b3a9e8a20ac1fdd20cca15e8415408e2d48b4961dcd97f6214a86876

Section 9(q)(2) of the Small Business Act (15 U.S.C. 638(q)(2)) is
amended to read as follows:
``(2) Vendor selection.--Each agency may select a vendor to
assist small business concerns to meet the goals listed in
paragraph (1) for a term not to exceed 3 years. Such selection
shall be competitive and shall utilize merit-based criteria.''.

f26fd9c1ac67f6eebeb1383f311009f6c55a33d174e0ea4c031cb4ba41d1eebf

Section 602(e) of the Business Opportunity Development Reform Act
of 1988 (15 U.S.C. 637 note) is amended by striking ``September 30,
1994'', and inserting ``September 30, 1997''.

04c87e7f838dd44ee7abcee6861e4a05b7bb1cad569fbb14348c875282c4ddd7

WITHIN THE UNITED STATES.
Section 2 of the Small Business Act (15 U.S.C. 631) is amended by
adding at the end the following new subsection:
``(i) Prohibition on the Use of Funds for Individuals Not Lawfully
Within the United States.--None of the funds made available pursuant to
this Act may be used to provide any direct benefit or assistance to any
individual in the United States if the Administrator or the official to
which the funds are made available receives notification that the
individual is not lawfully within the United States.''.

fea41b5f82b98b503b5462da075b52069370adb551a54504edcc2f8f565f4ffd

Section 204 of Public Law 94-305 (15 U.S.C. 634d) is amended--
(1) in the matter preceding paragraph (1), by striking ``after
consultation with and subject to the approval of the
Administrator,''; and
(2) in paragraph (1), by striking ``ten'' and inserting ``14''.

b4fba0e0970860b7e9d7088988de90688549592d25a0b39bf97d4d3c86d8b956

Section 4 of the Small Business Act (15 U.S.C. 633) is amended by
adding at the end the following new subsection:
``(e) Prohibition on the Provision of Assistance.--Notwithstanding
any other provision of law, the Administration is prohibited from
providing any financial or other assistance to any business concern or
other person engaged in the production or distribution of any product
or service that has been determined to be obscene by a court of
competent jurisdiction.''.

fc9f14390bb95dc11e5d6c676407257edc8976da94b14569d10582bc18550192

Section 4 of the Small Business Act (15 U.S.C. 633), as amended by
section 611, is amended by adding at the end the following new
subsection:
``(f) Certification of Compliance With Child Support Obligations.--
``(1) In general.--For financial assistance approved after the
promulgation of final regulations to implement this section, each
recipient of financial assistance under this Act, including a
recipient of a direct loan or a loan guarantee, shall certify that
the recipient is not more than 60 days delinquent under the terms
of any--
``(A) administrative order;
``(B) court order; or
``(C) repayment agreement entered into between the
recipient and the custodial parent or State agency providing
child support enforcement services,
that requires the recipient to pay child support, as such term is
defined in section 462(b) of the Social Security Act.
``(2) Enforcement.--Not later than 6 months after the date of
enactment of this subsection, the Administration shall promulgate
such regulations as may be necessary to enforce compliance with the
requirements of this subsection.''.

03b90afef42670ea8a383418bde5a77fd7d7cefe6a926c7b15b700ebb5d0a3f9

The Chief Counsel for Advocacy of the Small Business Administration
shall conduct a study of the impact of all Federal regulatory,
paperwork, and tax requirements upon small business, and report its
findings to the Congress not later than 1 year after the date of
enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

e8a2ab2fcbf11741c61d49f94ab57395c229128053f6adb1bfa19432b2860f83

Small Business Administration Amendments of 1994 — S. 2060

Other Sections