[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2060 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
September 21, 1994.
Resolved, That the bill from the Senate (S. 2060) entitled ``An
Act to amend the Small Business Act and the Small Business Act of 1958,
and for other purposes'', do pass with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
That this Act may be cited as the ``Small Business Reauthorization and
Amendment Act of 1994''.
TITLE I--AUTHORIZATIONS
SEC. 101. AUTHORIZATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note) is
amended by striking all of such section after subsection (k), as added
by section 115(a) of the Small Business Credit and Business Opportunity
Enhancement Act of 1992, and by inserting in lieu thereof 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 $142,000,000 in direct and
immediate participation loans; and of such sum, the
Administration is authorized to make $12,000,000 in loans as
provided in section 7(a)(10) and $130,000,000 in loans as
provided in section 7(m).
``(2) For the programs authorized by this Act, the
Administration is authorized to make $11,535,000,000 in
deferred participation loans and other financings. Of such sum,
the Administration is authorized to make--
``(A) $9,315,000,000 in general business loans as
provided in section 7(a);
``(B) $2,200,000,000 in financings as provided in
section 7(a)(13) and section 504 of the Small Business
Investment Act of 1958; and
``(C) $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) For the Service Corps of Retired Executives program
authorized by section 8(b)(1) of this Act, the Administration
is authorized to make grants or enter cooperative agreements
not to exceed $3,500,000, and for the small business institute
program authorized by section 8(b)(1) of this Act, the
Administration is authorized to make grants or enter
cooperative agreements not to exceed $3,000,000.
``(m) 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.
``(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 $198,000,000 in direct and
immediate participation loans; and of such sum the
Administration is authorized to make $13,000,000 in loans as
provided in section 7(a)(10) and $185,000,000 in loans as
provided in section 7(m).
``(2) For the programs authorized by this Act, the
Administration is authorized to make $24,610,000,000 in
deferred participation loans and other financings. Of such sum,
the Administration is authorized to make--
``(A) $10,935,000,000 in general business loans as
provided in section 7(a);
``(B) $2,500,000,000 in financings as provided in
section 7(a)(13) and section 504 of the Small Business
Investment Act of 1958; and
``(C) $80,000,000 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
$1,800,000,000, 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) For the Service Corps of Retired Executives program
authorized by section 8(b)(1) of this Act, the Administration
is authorized to make grants or enter cooperative agreements
not to exceed $3,675,000, and for the small business institute
program authorized by section 8(b)(1) of this Act, the
Administration is authorized to make grants or enter
cooperative agreements not to exceed $3,150,000.
``(o) 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.
``(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 $264,000,000 in direct and
immediate participation loans; and of such sum the
Administration is authorized to make $14,000,000 in loans as
provided in section 7(a)(10) and $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 $17,215,000,000 in
deferred participation loans and other financings. Of such sum,
the Administration is authorized to make--
``(A) $14,175,000,000 in general business loans as
provided in section 7(a);
``(B) $3,000,000,000 in financings as provided in
section 7(a)(13) and section 504 of the Small Business
Investment Act of 1958; and
``(C) $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
$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) For the Service Corps of Retired Executives program
authorized by section 8(b)(1) of this Act, the Administration
is authorized to make grants or enter cooperative agreements
not to exceed $3,860,000, and for the small business institute
program authorized by section 8(b)(1) of this Act, the
Administration is authorized to make grants or enter
cooperative agreements not to exceed $3,310,000.
``(q) 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.''.
TITLE II--FINANCIAL ASSISTANCE PROGRAMS
SEC. 201. MICROLOAN FINANCING PILOT.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended by adding the following new paragraph at the end:
``(12) Deferred participation loan pilot.--During fiscal
years 1995 through 1997, on a pilot basis, in lieu of making
direct loans to intermediaries as authorized in paragraph
(1)(B), the Administration may participate on a deferred basis
of up to 100 percent on loans made to intermediaries by a for-
profit or non-profit entity or by alliances of such entities
subject to the following conditions:
``(A) Number of loans.--The Administration shall
not participate in providing financing on a deferred
basis to more than ten intermediaries in urban areas
per year and to more than ten intermediaries in rural
areas per year.
``(B) Term of loans.--The term of such loans shall
be ten years. During the first five years of the loan,
the intermediary shall be required to pay interest
only; and during the second five years of the loan, the
intermediary shall be required to fully amortize
principal and interest payments.
``(C) Interest rate.--The interest rate on such
loans shall be the rate specified by paragraph (3)(F)
for direct loans.''.
SEC. 202. MICROLOAN STATE LIMITATION.
Section 7(m)(7)(C) of the Small Business Act (15 U.S.C.
636(m)(7)(C)) is repealed.
SEC. 203. LIMIT ON PARTICIPATION.
Section 7(m)(7)(A) of the Small Business Act (15 U.S.C.
636(m)(7)(A)) is amended to read as follows:
``(A) Number of participants.--During this
demonstration program, the Administration is authorized
to fund, on a competitive basis, not more than 240
microloan programs.''.
SEC. 204. EQUITABLE DISTRIBUTION.
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, the Administration
shall select participation by such intermediaries as will
ensure appropriate availability of loans to small businesses
located in urban areas and in rural areas.''.
SEC. 205. AMOUNT OF LOANS TO INTERMEDIARIES.
Section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)) is amended to read as follows:
``(C) Loan limits.--In determining the amount of
funding which the Administration may provide to one
intermediary, it shall take into consideration the
small business population in the area served by the
intermediary.''.
SEC. 206. LOANS TO EXPORTERS.
Section 7(a)(14)(A) of the Small Business Act (15 U.S.C.
636(a)(14)(A)) is amended to read as follows:
``(A) The Administration may provide extensions,
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.''.
SEC. 207. WORKING CAPITAL INTERNATIONAL TRADE LOANS.
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''.
SEC. 208. GUARANTEES ON INTERNATIONAL TRADE LOANS.
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 under paragraph (16).''.
SEC. 209. ACCREDITED LENDERS PROGRAM.
(a) 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) The Administration is authorized to establish an Accredited
Lenders Program for qualified State and local development companies
which meet the requirements of subsection (b).
``(b) 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 for at least the last 12 months;
``(2) has well-trained, qualified personnel who are
knowledgeable in the Administration's lending policies and
procedures for the development company program;
``(3) has the ability to process, close, and service
financing for plant and equipment under section 502 of this
Act;
``(4) has a loss rate on its debentures that is 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 as provided in
section 502 of this Act.
``(c) The Administration shall expedite the processing of 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) The designation of a qualified State or local development
company as an accredited lender may be suspended or revoked if the
Administration determines that the development company has not
continued to meet the criteria for eligibility under subsection (b) or
that the development company has failed to adhere to the
Administration's rules and regulations or is violating any other
applicable provision of law. Suspension or revocation shall not affect
any outstanding debenture guarantee.
``(e) For purposes of this section, the term `qualified State or
local development company' has the same meaning as in section
503(e).''.
(b) The Administration shall promulgate regulations to carry out
this section within 90 days of the date of the enactment of this Act.
(c) The Administration shall report to the Small Business Committee
of the United States Senate and to the Small Business Committee of the
United States House of Representatives within one year, and annually
thereafter, on the implementation of this section, specifically
including data on the number of development companies designated as
accredited lenders, their debenture guarantee volume, their loss rates,
and the average processing time on their guarantee applications, along
with such other information as the Administration deems appropriate.
SEC. 210. PREMIER LENDERS PROGRAM.
(a) Title V of the Small Business Investment Act of 1958 (15 U.S.C.
695 et seq.) is further amended by adding at the end the following new
section:
``SEC. 508. PREMIER LENDERS PROGRAM.
``(a) The Administration is authorized to establish a Premier
Lenders Program for certified development companies which meet the
requirements of subsection (b).
``(b) The Administration may designate a participant in the
accredited lenders program as a premier lender if such company--
``(1) has been an active participant in the accredited
lenders program for at least the last 12 months: Provided, That
prior to January 1, 1996, the Administration may waive this
provision if the applicant is qualified to participate in the
accredited lenders program;
``(2) has a history of submitting to the Administration
adequately analyzed debenture guarantee application packages;
and
``(3) agrees to assume and to reimburse the Administration
for 5 percent of any loss sustained by the Administration on
account of default by the certified development company in the
payment of principal or interest on a debenture issued by such
company and guaranteed by the Administration under this
section.
``(c) Upon approval of an applicant as a premier lender, the
certified development company shall establish a loss reserve in an
amount equal to the anticipated losses to the certified development
company pursuant to subsection (b)(3) based upon the historic loss rate
on debentures issued by such company, or 3 percent of the aggregate
principal amount of debentures issued by such company and guaranteed by
the Administration under this section, whichever is greater. The loss
reserve shall be comprised of segregated assets of the development
company which shall be securitized in favor of the Administration or of
such unqualified letters of credit or indemnity agreements from a third
party as the Administration deems appropriate.
``(d) Upon designation and qualification of a company as a premier
lender, and subject to such terms and conditions as the Administration
may determine, and notwithstanding the provisions of section 503(b)(6),
the Administration may permit a premier lender to approve loans to be
funded with the proceeds of and to authorize the guarantee of a
debenture issued by such company. The approval by the premier lender
shall be subject to the final approval as to eligibility of any such
guarantee by the Administration pursuant to subsection 503(a) of this
Act, but such final approval shall not include decisions by the company
involving creditworthiness, loan closing, or compliance with legal
requirements imposed by law or regulation.
``(e) The designation of a qualified State or local development
company as a premier 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); or
``(3) is failing to adhere to the Administration's rules
and regulations or is violating any other applicable provision
of law.
``(f) Suspension or revocation shall not affect any outstanding
debenture guarantee.''.
(b) The Administration shall promulgate such regulations to carry
out this section within 180 days of the date of the enactment of this
Act.
(c) The Administration shall report to the Small Business Committee
of the United States Senate and to the Small Business Committee of the
United States House of Representatives within one year, and annually
thereafter, on the implementation of this section, specifically
including data on the number of development companies designated as
premier lenders, their debenture guarantee volume, and the loss rate
for premier lenders as compared to accredited and other lenders, along
with such other information as the Administration deems appropriate.
(d) Section 508 of the Small Business Investment Act of 1958 is
repealed on October 1, 1999.
(e) The table of contents contained in section 101 of the Small
Business Investment Act of 1958 is amended by adding at the end of the
matter relating to title V the following:
``Sec. 507. Accredited lenders program.
``Sec. 508. Premier lenders program.''.
SEC. 211. SSBIC ADVISORY COUNCIL.
(a) Council Established.--Not later than 90 days after the date of
the enactment of this Act, the Administrator of the Small Business
Administration shall appoint an Investment Advisory Council for the
Specialized Small Business Investment Company Program. The Council
shall consist of not less than 12 individuals from the private sector,
including individuals--
(1) who have experience in providing venture capital to
small business, particularly minority small business;
(2) who are current participants in the Specialized Small
Business Investment Company Program;
(3) who are former participants in the Specialized Small
Business Investment Company Program; or
(4) who are or who represent small business concerns.
(b) Chairman and Staff.--The Administrator shall designate one of
the members of the Council as chairperson. The Investment Division of
the Small Business Administration shall provide such staff, technical
support, and information as shall be deemed appropriate. Council
members shall be deemed to be an advisory board pursuant to section
8(b)(13) of the Small Business Act for purposes of reimbursement of
expenses.
(C) Report.--Within six months of the date of appointment, the
Council shall make a written report with findings and recommendations
on the venture capital needs, including debt and equity, of socially or
economically disadvantaged small business concerns and any needed
Federal incentives to assist the private sector to meet such needs. The
report shall specifically address--
(1) the history of the Specialized Small Business
Investment Company program in providing assistance to such
concerns and the impact of such assistance on the economy;
(2) the appropriateness and ability of the Specialized
Small Business Investment Company Program to meet these needs;
(3) the problems affecting the Specialized Small Business
Investment Company Program; and
(4) the effectiveness of the Specialized Small Business
Investment Company Program and its administration by the Small
Business Administration.
SEC. 212. PARTICIPATING SECURITIES FOR SMALLER SBICS.
Section 303(g) of the Small Business Investment Act of 1958 (15
U.S.C. 683(g)) is amended by adding the following new paragraph at the
end:
``(13) 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 less than $20,000,000; except
that during the last quarter of each fiscal year, the
Administrator may, if he determines that there is a lack of
qualified applicants with private capital under such amount,
utilize all or any part of the securities so reserved.''.
SEC. 213. REPORT ON SBIC PROGRAM.
The Small Business Administration shall provide the Committee on
Small Business of the House of Representatives and Senate with a
comprehensive report on the status and disposition of all Small
Business Investment Companies, active or in liquidation, and a complete
accounting of the assets in and the basis of their portfolios, the
projected and actual loss rates for all portfolios in liquidation or
active, and a detailed accounting of valuation of the SBIC program's
investments. This report shall be delivered to the respective
Committees on Small Business no later than April 15, 1995.
TITLE III--SIZE STANDARDS AND BOND GUARANTEES
SEC. 301. COMPETITIVE DEMONSTRATION PROJECT SIZE STANDARDS.
Section 732 of the Business Opportunity Development Reform Act of
1988 (Public Law 100-656) is amended by repealing the second sentence
of such section.
SEC. 302. SIZE STANDARD CRITERIA.
Section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)) is
amended to read as follows:
``(2) 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. Such standards may utilize
number of employees, dollar volume of business, net worth, net income,
or a combination thereof. 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--
``(A) is being proposed after an opportunity for public
notice and comment;
``(B) provides for determining--
``(i) the size of a manufacturing concern as
measured by its average employment based upon
employment during each of the concern's pay periods for
the preceding twelve calendar months;
``(ii) the size of a concern providing services on
the basis of the annual average gross receipts of the
concern over a period of not less than 3 years; and
``(iii) the size of other concerns on the basis of
data over a period of not less than 3 years; and
``(C) is approved by the Administrator if it is not being
proposed by the Small Business Administration.''.
SEC. 303. SUNSET ON PREFERRED SURETY BOND GUARANTEE PROGRAM.
Section 207 of the Small Business Administration Reauthorization
and Amendment Act of 1988 (Public Law 100-590) is amended by striking
``September 30, 1994'' and by inserting in lieu thereof ``September 30,
1997''.
SEC. 304. VERY SMALL BUSINESS CONCERNS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
redesignating section 30 as section 41 and by inserting after section
29, as redesignated by section 606 of this Act, the following:
``SEC. 30. PILOT PROGRAM FOR VERY SMALL BUSINESS CONCERNS.
``(a) Establishment.--The Administration shall establish and carry
out a pilot program in accordance with the requirements of this section
to provide procurement opportunities to very small business concerns.
``(b) Subcontracting of Procurement Contracts.--
``(1) In general.--In carrying out the program, the
Administration is authorized to enter into procurement
contracts with the United States Government and to arrange for
the performance of such contracts through the award of
subcontracts to very small business concerns.
``(2) Terms and conditions.--The authority of the
Administration under paragraph (1) shall be subject to the same
terms and conditions as apply to the authority of the
Administration under section 8(a), except that--
``(A) the Administration may make such
modifications to such terms and conditions as the
Administration determines necessary; and
``(B) all contract opportunities offered for award
under the program shall be awarded on the basis of
competition restricted to eligible program
participants.
``(c) Program Participation.--Very small business concerns
participating in the program shall be subject to the same terms and
conditions for program participation as apply to program participants
under sections 7(j) and 8(a); except that--
``(1) the Administration may make such modifications to
such terms and conditions as the Administration determines
necessary; and
``(2) eligibility shall be determined on the basis of
qualifying as a very small business concern as defined in
subsection (g), in lieu of the requirements contained in
paragraphs (4), (5), and (6) of section 8(a).
``(d) Technical and Financial Assistance.--In order to assist very
small business concerns participating in the program, the
Administration is authorized--
``(1) to provide technical assistance to such concerns in
the same manner and to the same extent as technical assistance
is provided to small business concerns pursuant to section
7(j); and
``(2) to provide pre-authorization to such concerns for the
purpose of receiving financial assistance under section 7(a).
``(e) Program Term.--The Administration shall carry out the program
in each of fiscal years 1995, 1996, and 1997.
``(f) Report to Congress.--On or before December 31, 1996, the
Administration shall transmit to Congress a report containing an
analysis of the results of the program, together with recommendations
for appropriate legislative and administrative actions.
``(g) Definitions.--For the purposes of this section, the following
definitions apply:
``(1) Program.--The term `program' means the program
established pursuant to subsection (a).
``(2) Very small business concern.--The term `very small
business concern' means a small business concern that--
``(A) has 10 employees or less; or
``(B) has average annual receipts that total
$1,000,000 or less.''.
TITLE IV--MANAGEMENT ASSISTANCE
SEC. 401. SUNSET ON COSPONSORED TRAINING.
(a) The authority of the Small Business Administration to cosponsor
training as authorized by section 5(a) of the Small Business Computer
Security and Education Act of 1984 (15 U.S.C. 633 note) is hereby
repealed September 30, 1997.
(b) Section 7(b) of the Small Business Computer Security and
Education Act of 1984 (15 U.S.C. 633 note) is amended by striking the
second sentence.
SEC. 402. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM LEVEL.
Section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) is
amended to read as follows:
``(4) 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 per centum cash and not more than 50 per
centum of indirect costs and in-kind contributions: Provided, That this
matching amount shall not include any indirect costs or in-kind
contributions derived from any Federal program: Provided further, That
no recipient of funds under this section shall receive a grant which
would exceed its pro rata share of a national program based upon the
population to be served by the Small Business Development Center as
compared to the total population in the United States, plus $125,000,
or $200,000, whichever is greater, per year. The amount of the national
program shall be--
``(A) $70,000,000 through September 30, 1995;
``(B) $77,500,000 from October 1, 1995 through September
30, 1996; and
``(C) $85,000,000 beginning October 1, 1996.
The amount of eligibility of each Small Business Development Center
shall be based upon the amount of the national program in effect as of
the date for commencement of performance of the Center's grant.''.
SEC. 403. FEDERAL CONTRACTS WITH SMALL BUSINESS DEVELOPMENT CENTERS.
(a) Section 21(a)(5) of the Small Business Act (15 U.S.C.
648(a)(5)) is amended to read as follows:
``(5) A Small Business Development Center may enter a contract with
a Federal department or agency to provide specific assistance to small
business concerns if the contract is approved in advance by the Deputy
Associate Administrator of the Small Business Development Center
program. Approval shall be based upon a determination that the contract
will provide assistance to small business concerns and that its
performance will not hinder the Center in carrying out the terms of its
grant from the Administration. The amount of any such contract shall
not be subject to the matching funds requirements of paragraph (4) nor
shall the amount of eligibility under such paragraph: Provided, That
notwithstanding any other provision of law, such contracts for
assistance to small business concerns shall not be counted toward any
Federal department or agency's small business, women-owned business, or
socially and economically disadvantaged business contracting goal as
established by section 15(g) of the Small Business Act (15 U.S.C.
644(g)).''.
(b) Section 21(a)(6) of the Small Business Act (15 U.S.C.
648(a)(6)) is amended by striking ``paragraphs (4) and (5)'' and by
inserting in lieu thereof ``paragraph (4)''.
SEC. 404. CENTRAL EUROPEAN SMALL BUSINESS DEVELOPMENT.
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 by inserting in lieu thereof ``, $2,000,000 for each of
fiscal years 1993 and 1994, and $1,000,000 for fiscal year 1995''.
SEC. 405. MOBILE RESOURCE CENTER PILOT PROGRAM.
(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 (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, not later than December 31, 1996, he shall
transmit to Congress a report containing the results of such program,
together with recommendations for appropriate legislative and
administrative actions.
(d) Authorization of Appropriations.--There is authorized to be
appropriated for fiscal year 1995 $900,000 to carry out this section.
Of such sums--
(1) $800,000 may be made available for the purchase or
lease of mobile resource center vehicles; and
(2) $100,000 may be made available for studies, startup
expenses, and other administrative expenses.
Such sums shall remain available until expended.
TITLE V--RELIEF FROM FFB DEBENTURE PREPAYMENT PENALTIES
SEC. 501. CITATION.
This title may be cited as the ``Small Business Prepayment Penalty
Relief Act of 1994.''.
SEC. 502. MODIFICATION OF DEVELOPMENT COMPANY DEBENTURE INTEREST RATES.
(a) In General.--Upon the request of the issuer and the concurrence
of the borrower, the Small Business Administration is authorized to
transfer to the Federal Financing Bank such sums as may be necessary to
carry out the provisions of this section in order to reduce the
interest rate on a debenture issued by a certified development company.
The reduction shall be effective January 2, 1995 and shall apply for
the remainder of the term of the debenture.
(b) Interest Rate Modification.--Upon receipt of such payment, the
Federal Financing Bank shall modify the interest rate of each debenture
for which the payment is made. No other change shall be made in the
terms and conditions of the debenture, and the modification in the
interest rate shall not be construed as a new direct loan or a new loan
guarantee.
(c) Definitions.--For the purposes of this section--
(1) the term ``issuer'' means the issuer of a debenture
pursuant to section 503 of the Small Business Investment Act of
1958 which has been purchased by the Federal Financing Bank if
the debenture is outstanding on the date of enactment of this
Act, and neither the loan that secures the debenture nor the
debenture is in default on such date; and
(2) the term ``borrower'' means the small business concern
whose loan secures a debenture issued pursuant to such section.
(d) Other Rights.--A modification of the interest rate on a
debenture as authorized in this section shall not affect any rights or
options of the issuer or borrower which are otherwise authorized by
contract or by law.
(e) Refinancing.--Debentures authorized by sections 504 and 505 of
the Small Business Investment Act of 1958 may be used to refinance
debentures issued under section 503 of such Act if the amount of the
new financing is limited to such amounts as are needed to repay the
existing debenture, including any prepayment penalty imposed by the
Federal Financing Bank. Any such refinancing shall be subject to all of
the other provisions of sections 504 and 505 of such Act and the rules
and regulations of the Administration promulgated thereunder,
including, but not limited to, rules and regulations governing payment
of authorized expenses and commissions, fees and discounts to brokers
and dealers in trust certificates issued pursuant to section 505:
Provided, however, That no applicant for refinancing under section 504
of this Act need demonstrate that the requisite number of jobs will be
created or preserved with the proceeds of such refinancing: Provided
further, That a development company which provides refinancing under
this subsection shall be limited to a loan processing fee not to exceed
one-half of one percent to cover the cost of packaging, processing and
other nonlegal staff functions.
SEC. 503. MODIFICATION OF SMALL BUSINESS INVESTMENT COMPANY DEBENTURE
INTEREST RATES.
(a) In General.--Upon the request of the issuer, the Small Business
Administration is authorized to transfer to the Federal Financing Bank
such sums as may be necessary to carry out the provisions of this
section in order to reduce the interest rate on a debenture issued by a
Small Business Investment Company under the provisions of title III of
the Small Business Investment Act of 1958. The reduction shall be
effective January 2, 1995 and shall apply for the remainder of the term
of the debenture.
(b) Interest Rate Modification.--Upon receipt of such payment, the
Federal Financing Bank shall modify the interest rate of each debenture
for which the payment is made. No other change shall be made in the
terms and conditions of the debenture, and the modification in the
interest rate shall not be construed as a new direct loan or a new loan
guarantee.
(c) Definitions.--For the purposes of this section, the term
``issuer'' means the issuer of a debenture pursuant to section 303 of
the Small Business Investment Act of 1958 which has been purchased by
the Federal Financing Bank if the debenture is outstanding on the date
of enactment of this Act, and is not in default on such date.
(d) Other Rights.--A modification of the interest rate on a
debenture as authorized in this section shall not affect any rights or
options of the issuer which are otherwise authorized by contract or by
law.
SEC. 504. MODIFICATION OF SPECIALIZED SMALL BUSINESS INVESTMENT COMPANY
DEBENTURE INTEREST RATES.
(a) Interest Rate Modification.--Upon the request of the issuer,
the Small Business Administration is authorized to modify the interest
rate on a debenture issued by a Small Business Investment Company
licensed under the provisions of section 301(d) of the Small Business
Investment Act of 1958 and which is held by the Administration. No
debenture which has been sold to a third party shall be eligible for
modification under this section. The reduction shall be effective
January 2, 1995 and shall apply for the remainder of the term of the
debenture. No other change shall be made in the terms and conditions of
the debenture, and the modification in the interest rate shall not be
construed as a new direct loan or a new loan guarantee.
(b) Definitions.--For the purposes of this section, the term
``issuer'' means a Specialized Small Business Investment Company
licensed under the provisions of section 301(d) of the Small Business
Investment Act of 1958 which has issued a debenture which has been
funded by the Small Business Administration, providing the debenture is
outstanding on the date of enactment of this Act and is not in default
on such date.
(c) Other Rights.--A modification of the interest rate on a
debenture as authorized in this section shall not affect any rights or
options of the issuer which are otherwise authorized by contract or by
law.
SEC. 505. INTEREST RATE REDUCTIONS.
(a) In General.--Upon enactment of an Appropriations Act providing
funds to carry out the provisions of this Act and limited to amounts
specifically provided in advance in Appropriations Acts, the Small
Business Administration shall evaluate the outstanding portfolio of
debentures which are eligible for interest rate relief under this Act.
The Administration shall apply the funds appropriated to carry out this
Act in order to reduce the highest interest rate on all eligible
debentures to a uniform rate.
(b) Authorization.--There are authorized to be appropriated $30
million to carry out the provisions of this Act in fiscal year 1995.
TITLE VI--DEVELOPMENT OF WOMEN-OWNED BUSINESSES
SEC. 601. STATUS OF COUNCIL.
Section 401 of the Women's Business Ownership Act of 1988 (15
U.S.C. 631 note) is redesignated as section 405 of such Act and, as
redesignated, is amended--
(1) in the heading by inserting ``of the council'' after
``establishment''; and
(2) by striking the period at the end and inserting the
following: ``which shall serve as an independent advisory
council to the Interagency Committee on Women's Business
Enterprise, to the Administrator of the Small Business
Administration, and to the Congress of the United States. The
Council, in order to carry out its function as an independent
advisory council to the Congress, is authorized and directed to
report independently of the Interagency Committee directly to
the Congress at such times and on such matters as it, in its
discretion, deems appropriate.''.
SEC. 602. DUTIES OF NATIONAL WOMEN'S BUSINESS COUNCIL.
Section 402 of the Women's Business Ownership Act of 1988 (15
U.S.C. 631 note) is redesignated as section 406 of such Act and, as
redesignated, is amended to read as follows:
``SEC. 406. DUTIES OF THE COUNCIL.
``The Council shall meet at such times as it determines necessary
in order to advise and consult with the Interagency Committee on
Women's Business Enterprise on matters relating to the activities,
functions, and policies of such Committee as provided in this title.
The Council shall make annual recommendations for consideration by the
Committee. The Council also shall provide reports and make such other
recommendations as it deems appropriate to the Committee, to the
Administrator of the Small Business Administration, and to the Small
Business Committee of the United States Senate and to the Small
Business Committee of the United States House of Representatives.''.
SEC. 603. MEMBERSHIP OF THE COUNCIL.
Section 403 of the Women's Business Ownership Act of 1988 (15
U.S.C. 631 note) is redesignated as section 407 of such Act, and, as
redesignated, is amended to read as follows:
``SEC. 407. MEMBERSHIP OF THE COUNCIL.
``(a) The Council shall be composed of 15 members who shall be
appointed by the Administrator of the Small Business Administration and
who shall serve at the Administrator's discretion. In making the
appointments, the Administrator shall include racial, geographic and
economic diversity, and representation from diverse sectors of the
economy, including manufacturing, high technology, services and credit
institutions, and shall give priority to include representation of
major women's business organizations.
``(b) Only the owner, operator or employee of a woman-owned
business shall be eligible for appointment, and not more than eight
appointees shall be members of the same political party. 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 thirty-day period
beginning on the date such individual becomes such an officer or
employee.
``(c) The Council annually shall select one member to serve as its
Chairperson. The Chairperson of the Council, or her designee, shall be
the representative of the Council to all meetings of the Interagency
Committee on Women's Business Enterprise.
``(d) The Council shall meet not less than four times per year.
Meetings shall be at the call of the Chairperson at such times as she
deems appropriate.
``(e) Members of the Council shall serve without pay for such
membership, except they 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.''.
SEC. 604. INTERAGENCY COMMITTEE.
Title IV of the Women's Business Ownership Act of 1988 (15 U.S.C.
631 note) is amended by striking section 404 and by inserting the
following new sections prior to section 405 as redesignated by section
601 of this Act:
``SEC. 401. ESTABLISHMENT OF THE COMMITTEE.
``There is established an Interagency Committee to be known as the
`Interagency Committee on Women's Business Enterprise' (hereinafter in
this title referred to as the Committee).
``SEC. 402. DUTIES OF THE COMMITTEE.
``The Committee shall--
``(1) promote, coordinate and monitor the plans, programs
and operations of the departments and agencies of the Federal
Government which may contribute to the establishment,
preservation and strengthening of women's business enterprise.
It may, as appropriate, develop comprehensive interagency plans
and specific program goals for women's business enterprise with
the cooperation of Federal departments and agencies;
``(2) promote the better utilization of the activities and
resources of State and local governments, business and trade
associations, private industry, colleges and universities,
foundations, professional organizations, and volunteer and
women's business enterprise, and facilitate the coordination of
the efforts of these groups with those of Federal departments
and agencies;
``(3) consult with the Council to develop and promote new
initiatives designed to foster women's business enterprise, and
to develop policies, programs, and plans intended to promote
such development;
``(4) consider the Council's recommendations and public and
private sector studies of the problems of women entrepreneurs,
and promote further research into such problems; and
``(5) design a comprehensive plan for a joint public-
private sector effort to facilitate the development and growth
of women-owned businesses. The Committee should submit the plan
to the President for review within six months of the effective
date of this Act.
``SEC. 403. MEMBERSHIP OF THE COMMITTEE.
``(a) The Committee shall be composed of representatives of the
following departments and agencies: The Departments of Agriculture,
Commerce, Defense, Energy, Health and Human Services, Education,
Housing and Urban Development, Interior, Justice, Labor,
Transportation, Treasury, the Federal Trade Commission, General
Services Administration, National Science Foundation, Office of Federal
Procurement Policy, and the Director of the Office of Women's Business
Ownership of the Small Business Administration, who shall serve as Vice
Chairperson of the Committee. The head of each such department and
agency shall designate a representative who shall be a policy making
official within the department or agency.
``(b) The Committee shall have a Chairperson appointed by the
President, after consultation with the Administrator of the Small
Business Administration and the Chief Counsel for Advocacy of the Small
Business Administration. The Chairperson shall be the head of a Federal
department or agency. If the Chairperson is the head of one of the
departments or agencies enumerated in subsection (a), he or she shall
also serve as the representative of such department or agency.
``(c) The Committee shall meet not less than four times per year.
Meetings shall be at the call of the Chairperson at such times as he or
she deems appropriate.
``(d) The members of the Committee shall serve without additional
pay for such membership.
``(e) The Chairperson of the Committee may designate a Director of
the Committee, after consultation with the Administrator of the Small
Business Administration and the Chief Counsel for Advocacy of the Small
Business Administration.
``(f) The Chief Counsel for Advocacy is authorized to appoint to
his staff under the provisions of section 204 of Public Law 94-305 (15
U.S.C. 634(d)) the person so designated under subsection (e). He or she
is also authorized to provide additional staff and administrative
support for the Committee.
``(g) The Director of the Office of Women's Business Ownership of
the Small Business Administration is authorized to provide additional
staff and administrative support for the Committee.
``SEC. 404. REPORTS FROM THE COMMITTEE.
``The Committee shall transmit to the President and to the Small
Business Committee of the United States Senate and to the Small
Business Committee of the United States House of Representatives a
report no less than once in every twelve-month period. The first such
report shall be submitted no later than March 31, 1995. Such reports
shall contain any recommendations from the Council and any comments of
the Committee thereon, a detailed statement on the activities of the
Committee, the findings and conclusions of the Committee, together with
its recommendations for such legislation and administrative actions as
it considers appropriate to promote the development of small business
concerns owned and controlled by women.''.
SEC. 605. REPEALER.
Sections 404 through 407 of the Women's Business Ownership Act of
1988, as in effect on the day before the date of the enactment of this
Act, are repealed and the following new section is added at the end of
title IV of such Act:
``SEC. 408. DEFINITIONS.
``For the purposes of this Act, the term--
``(1) `woman-owned business' shall mean a small business
which is at least 51 percent owned by a woman or women who also
control and operate it;
``(2) `control' shall mean exercising the power to make
policy decisions;
``(3) `operate' shall mean being actively involved in the
day-to-day management; and
``(4) `women's business enterprise' shall mean a woman-
owned business or businesses or the efforts of a woman or women
to establish, maintain, or develop such a business or
businesses.''.
SEC. 606. EXTENSION OF AUTHORITY FOR DEMONSTRATION PROJECTS.
Section 28 of the Small Business Act, as added by section 2 of
Public Law 102-191, is redesignated as section 29 and, as so
redesignated, is amended by striking from subsection (g) ``1995'' and
by inserting ``1997''.
SEC. 607. ESTABLISHMENT OF OFFICE OF WOMEN'S BUSINESS OWNERSHIP.
Section 29 of the Small Business Act, as redesignated by section
606 of this Act, is amended by adding the following new subsection at
the end:
``(h) There is established within the Administration an Office of
Women's Business Ownership, which shall be responsible for the
administration of the Administration's programs for the development of
women's business enterprises as defined in section 408 of the Women's
Business Ownership Act of 1988. The Office shall be headed by a
director who shall be appointed by the Administrator.''.
SEC. 608. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Title IV of the table of contents 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 Committee.
``Sec. 402. Duties of the Committee.
``Sec. 403. Membership of the Committee.
``Sec. 404. Reports from the Committee.
``Sec. 405. Establishment of the Council.
``Sec. 406. Duties of the Council.
``Sec. 407. Membership of the Council.
``Sec. 408. Definitions.''.
(b) The heading to 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 ENTERPRISES''.
SEC. 609. AUTHORIZATION.
There is authorized to be appropriated $200,000 in each of fiscal
years 1995 through 1997 to carry out the provisions of title IV of the
Women's Business Ownership Act of 1988 (15 U.S.C. 631 note).
TITLE VII--MISCELLANEOUS AMENDMENTS
SEC. 701. HANDICAPPED PARTICIPATION IN SMALL BUSINESS SET 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 each fiscal year, 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
$50,000,000.''; and
(2) by adding the following new paragraph at the end
thereof:
``(7) Any contract awarded to such an organization pursuant to the
provisions of this subsection may be extended for up to two additional
years.''.
SEC. 702. SBA INTEREST PAYMENTS TO TREASURY.
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) The Administration shall pay into the miscellaneous receipts
of the Treasury following the close of each fiscal year the actual
interest it collects during that fiscal year on all financings made
under the authority of this Act.''.
SEC. 703. IMPOSITION OF FEES.
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 the following new paragraphs at the end:
``(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. The administrator is authorized to impose,
retain and utilize, subject to approval in appropriations Acts,
the following additional fees--
``(A) not to exceed $100 for each loan servicing
action requested after disbursement of the loan,
including substitution of collateral, loan assumptions,
release or substitution of guarantors, reamortizations
or similar actions;
``(B) to recover the direct, incremental cost
involved in the production and dissemination of
compilations of information produced by the
Administration under the authority of the Small
Business Act and the Small Business Investment Act of
1958; and
``(13) to 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:
Provided, That any monies so collected shall be utilized solely
to facilitate the administration of the program which generated
the excess monies.''.
SEC. 704. SBIR VENDORS.
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). Such selection shall be competitive using merit-
based criteria, for a term not to exceed 3 years.''.
SEC. 705. MANUFACTURING CONTRACTS.
(a) Establishment of Pilot Program.--Section 15 of the Small
Business Act (15 U.S.C. 644) is amended by adding at the end the
following:
``(p) Manufacturing Modernization Pilot Program.--
``(1) Establishment.--The Administrator may establish and
carry out a manufacturing modernization pilot program
(hereinafter in this section referred to as the `program') for
the purpose of promoting the award of Federal procurement
contracts to small business concerns that participate in
manufacturing application and education centers that are
established or certified pursuant to paragraph (2).
``(2) Manufacturing application and education centers.--The
Administrator may establish manufacturing application and
education centers which will provide training to small business
concerns on new and innovative manufacturing practices in a
shared-use production environment and which will assist such
concerns in carrying out Federal procurement contracts for the
manufacture of components and subsystems. The Administrator may
also certify existing manufacturing application and education
centers for participation in the program.
``(3) Use of private centers as examples.--In establishing
any manufacturing application and education centers pursuant to
paragraph (2), the Administrator may use as examples
manufacturing application and education centers in the private
sector that provide the following services: technology
demonstration, technology education, technology application
support, technology advancement support, and technology
awareness.
``(4) Identification of contracts.--The Administrator and
the head of a contracting agency may identify for additional
small business set-asides pursuant to subsection (a) any
procurement, and in particular any procurement which is being
foreign-sourced or is considered critical, which is susceptible
to performance by a small business concern if the concern is
assisted by a manufacturing application and education center
under the program. Any such procurement shall be subject to the
requirements of subsection (a), including requirements relating
to any failure of the Administrator and the head of the
contracting agency to agree on procurement methods.
``(5) Nonapplicability of performance requirement.--The
requirement of subsection (o)(1)(B) shall not apply with
respect to any contract carried out by a small business concern
under the program with the assistance of a manufacturing
application and education center.
``(6) Regulations.--Not later than 6 months after the date
of the enactment of this subsection, the Administrator shall
issue regulations to carry out this subsection if he determines
it appropriate to carry out the program authorized by this
subsection.
``(7) Reports.--
``(A) Progress report.--Not later than 3 months
after the last day of the fiscal year in which final
regulations are issued pursuant to paragraph (6), the
Administrator shall transmit to the Committees on Small
Business of the House of Representatives and the Senate
a report on the progress of the program.
``(B) Final report.--If the Administrator
establishes the program authorized herein, not later
than March 31, 1999, he shall transmit to the
Committees on Small Business of the House of
Representatives and the Senate a report on the success
of the program in--
``(i) enabling deployment of technology to
small business concerns participating in the
program, and
``(ii) assisting manufacturing application
and education centers in achieving self-
sufficiency,
together with recommendations concerning continuation,
modification, or discontinuance of the program.
``(8) Program term.--The Administrator may carry out the
program during the period beginning on the date of issuance of
final regulations under paragraph (5) and ending on September
30, 1999.
``(9) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary to
carry out this subsection.''.
SEC. 706. DENIAL OF USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY WITHIN
THE UNITED STATES.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 30, as added by section 304 of this Act, the
following:
``SEC. 31. DENIAL OF 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 when it is made known to the Administrator of the Small
Business Administration or the official to which the funds are made
available that the individual is not lawfully within the United
States.''.
SEC. 707. OFFICE OF ADVOCACY EMPLOYEES.
Section 204 of Public Law 94-305 (15 U.S.C. 634d) is amended as
follows--
(1) by striking ``after consultation with and subject to
the approval of the Administrator,''; and
(2) in paragraph (1) by striking ``GS-15 of the General
Schedule'' and all that follows and inserting ``GS-15 of the
General Schedule: Provided, however, That not more than 14
staff personnel at any one time may be employed and compensated
at a rate in excess of GS-15, step 10, of the General
Schedule;''.
SEC. 708. ADVOCACY STUDY OF PAPERWORK AND TAX IMPACT.
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 within 1 year of the date of the enactment of this Act.
SEC. 709. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT OBLIGATIONS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 31, as added by section 706 of this Act, the
following:
``SEC. 32. CERTIFICATION OF COMPLIANCE WITH CHILD SUPPORT OBLIGATIONS.
``Each applicant for financial assistance under this Act, including
applicants for direct loans and loan guarantees, shall certify, as a
condition for receiving such assistance, that the applicant is not in
violation of the terms of any administrative order, court order, or
repayment agreement entered into between the applicant and the
custodial parent or the State agency providing child support
enforcement services which requires the applicant to pay child support,
as such term is defined by section 462(b) of the Social Security
Act.''.
Amend the title so as to read: ``An Act to amend the Small
Business Act, and for other purposes.''.
Attest:
Clerk.
103d CONGRESS
2d Session
S. 2060
_______________________________________________________________________
AMENDMENTS