[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2920 Placed on Calendar Senate (PCS)]
Calendar No. 720
110th CONGRESS
2d Session
S. 2920
To reauthorize and improve the financing and entrepreneurial
development programs of the Small Business Administration, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 24, 2008
Mr. Kerry (for himself, Ms. Snowe, and Mr. Levin) introduced the
following bill; which was read the first time
April 28, 2008
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To reauthorize and improve the financing and entrepreneurial
development programs of the Small Business Administration, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``SBA Reauthorization and Improvement
Act of 2008''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--SMALL BUSINESS LENDING
Sec. 101. Authorization of appropriations.
Subtitle A--Microloan Programs
Sec. 121. Conforming technical change in average smaller loan size.
Sec. 122. Inclusion of persons with disabilities.
Sec. 123. Microloan program improvements.
Sec. 124. Prime reauthorization and transfer to the Small Business Act.
Sec. 125. Report to congress on the microloan program.
Subtitle B--Intermediary Lending Pilot Program
Sec. 141. Findings.
Sec. 142. Small business intermediary lending pilot program.
Subtitle C--7(a) Loan Program
Sec. 161. Preferred lenders program.
Sec. 162. Maximum loan amount.
Sec. 163. Maximum 504 and 7(a) loan eligibility.
Sec. 164. Loan pooling.
Sec. 165. Alternative size standard.
Sec. 166. Alternative variable interest rate.
Sec. 167. Minority small business development.
Sec. 168. Lowering of fees.
Sec. 169. International trade loans.
Sec. 170. Rural lending outreach program.
Subtitle D--Certified Development Companies; 504 Loan Program
Sec. 181. Development company loan programs.
Sec. 182. Loan liquidations.
Sec. 183. Additional equity injections.
Sec. 184. Uniform leasing policy.
Sec. 185. Businesses in low-income communities.
Sec. 186. Combinations of certain goals.
Sec. 187. Refinancing under the local development business loan
program.
Sec. 188. Technical correction.
Sec. 189. Definitions for the Small Business Investment Act of 1958.
Sec. 190. Repeal of sunset on reserve requirements for premier
certified lenders.
Sec. 191. Certified development companies.
Sec. 192. Conforming amendments.
Sec. 193. Closing costs.
Sec. 194. Definition of rural.
Sec. 195. Regulations and effective date.
Sec. 196. Limitation on time for final approval of companies.
Sec. 197. Child care lending pilot program.
Sec. 198. Debenture repayment.
Sec. 199. Real estate appraisals.
TITLE II--SMALL BUSINESS VENTURE CAPITAL
Subtitle A--Small Business Investment Company Program
Sec. 221. Reauthorization.
Sec. 222. Leverage.
Sec. 223. Investments in smaller enterprises.
Sec. 224. Maximum investment in a company.
Subtitle B--New Markets Venture Capital Program
Sec. 241. Diversification of New Markets Venture Capital Program.
Sec. 242. Establishment of Office of New Markets Venture Capital.
Sec. 243. Low-income geographic areas.
Sec. 244. Applications for New Markets Venture Capital Program.
Sec. 245. Operational assistance grants.
Sec. 246. Authorization.
TITLE III--SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT
Subtitle A--Reauthorization
Sec. 301. Reauthorization.
Subtitle B--Women's Small Business Ownership Programs
Sec. 311. Office of Women's Business Ownership.
Sec. 312. Women's Business Center Program.
Sec. 313. National Women's Business Council.
Sec. 314. Interagency Committee on Women's Business Enterprise.
Sec. 315. Preserving the independence of the National Women's Business
Council.
Sec. 316. Study and report on women's business centers.
Subtitle C--International Trade
Sec. 321. Small Business Administration Associate Administrator for
International Trade.
Sec. 322. Office of International Trade.
Subtitle D--Native American Small Business Development Program
Sec. 331. Short title.
Sec. 332. Native American Small Business Development Program.
Sec. 333. Pilot programs.
Subtitle E--National Small Business Regulatory Assistance
Sec. 341. Short title.
Sec. 342. Purpose.
Sec. 343. Small Business Regulatory Assistance Pilot Program.
Sec. 344. Rulemaking.
Subtitle F--Other Provisions
Sec. 351. Minority Entrepreneurship and Innovation Pilot Program.
Sec. 352. Institutions of higher education.
Sec. 353. Health insurance options information for small business
concerns.
Sec. 354. National Small Business Development Center Advisory Board.
Sec. 355. Office of Native American Affairs pilot program.
Sec. 356. Privacy requirements for SCORE chapters.
Sec. 357. National small business summit.
Sec. 358. SCORE program.
TITLE IV--LENDER OVERSIGHT
Sec. 401. Findings.
Sec. 402. Definitions.
Sec. 403. Authority.
Sec. 404. Portfolio quality evaluation standards.
Sec. 405. Default rate.
Sec. 406. Computer modeling.
Sec. 407. Economic performance evaluation measurements.
Sec. 408. Privacy.
Sec. 409. Executive compensation.
Sec. 410. Study and report on examination and review fees.
SEC. 3. DEFINITIONS.
In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``504 Loan Program'' means the program to
provide financing to small business concerns by guarantees of
loans under title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.), which are funded by debentures
guaranteed by the Administrator;
(3) the term ``low-income geographic area'' has the meaning
given that term in section 351 of the Small Business Investment
Act of 1958 (15 U.S.C. 689), as amended by this Act;
(4) the term ``New Markets Venture Capital company'' has
the meaning given that term in section 351 of the Small
Business Investment Act of 1958 (15 U.S.C. 689);
(5) the term ``New Markets Venture Capital Program'' means
the program under part B of title III of the Small Business
Investment Act of 1958 (15 U.S.C. 689 et seq.); and
(6) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632).
TITLE I--SMALL BUSINESS LENDING
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note) is
amended--
(1) by redesignating subsection (j) as subsection (f); and
(2) by adding at the end the following:
``(g) Microloan.--For each of fiscal years 2008 through 2010, the
Administration is authorized to make, as provided in section 7(m)--
``(1) $80,000,000 in technical assistance grants;
``(2) $110,000,000 in direct loans; and
``(3) $50,000,000 in deferred participation loans.
``(h) General Business Loans.--The Administration is authorized to
make, as provided in section 7(a)--
``(1) $19,000,000,000 in general business loans in fiscal
year 2008;
``(2) $20,000,000,000 in general business loans in fiscal
year 2009; and
``(3) $21,000,000,000 in general business loans in fiscal
year 2010.
``(i) Certified Development Company Financings.--The Administration
is authorized to make, as provided in section 7(a)(13) and as provided
in section 504 of the Small Business Investment Act of 1958 (15 U.S.C.
697a)--
``(1) $8,500,000,000 in certified development company
financings in fiscal year 2008;
``(2) $9,000,000,000 in certified development company
financings in fiscal year 2009; and
``(3) $9,500,000,000 in certified development company
financings in fiscal year 2010.
``(j) Department of Defense.--For each of fiscal years 2008 through
2010, the Administration is authorized to make $500,000,000 in loans as
provided in section 7(a)(21).
``(k) Prime Program.--
``(1) In general.--There are authorized to be appropriated
to the Administrator $15,000,000 for each of fiscal years 2008
through 2010 to carry out section 37, which shall remain
available until expended.
``(2) Certain programs.--In addition to the amount
authorized under paragraph (1), there are authorized to be
appropriated to the Administrator $2,000,000 each of fiscal
years 2008 through 2010 to carry out section 37(c)(4), which
shall remain available until expended.
``(l) Additional Authorizations and Limitations.--
``(1) In general.--There are authorized to be appropriated
to the Administration for each of fiscal years 2008 through
2010 such sums as may be necessary to carry out the provisions
of this Act not elsewhere provided for, including
administrative expenses and necessary loan capital for disaster
loans pursuant to section 7(b), and to carry out the Small
Business Investment Act of 1958, including salaries and
expenses of the Administration.
``(2) Limitations.--Notwithstanding any other provision of
this section, for each of fiscal years 2008 through 2010--
``(A) no funds are authorized to be used as loan
capital for the loan program authorized by section
7(a)(21) in any such fiscal year, except by transfer
from another Federal department or agency to the
Administration, unless the program level authorized for
general business loans under subsection (h) is fully
funded for that fiscal year; and
``(B) the Administration may not approve loans on
its own behalf or on behalf of any other Federal
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 $2,000,000.''.
Subtitle A--Microloan Programs
SEC. 121. CONFORMING TECHNICAL CHANGE IN AVERAGE SMALLER LOAN SIZE.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended--
(1) in paragraph (3)(F)(iii), by striking ``$7,500'' and
inserting ``$10,000''; and
(2) in paragraph (6)(C), by striking ``$7,500'' each place
that term appears and inserting ``$10,000''.
SEC. 122. INCLUSION OF PERSONS WITH DISABILITIES.
Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C.
636(m)(1)(A)(i)) is amended by inserting ``persons with disabilities,''
before ``and minority''.
SEC. 123. MICROLOAN PROGRAM IMPROVEMENTS.
(a) Intermediary Eligibility Requirements.--Section 7(m)(2) of the
Small Business Act (15 U.S.C. 636(m)(2)) is amended--
(1) in subparagraph (A), by striking ``in paragraph (10);
and'' and inserting ``of the term `intermediary' under
paragraph (11);''; and
(2) in subparagraph (B)--
(A) by striking ``(B) has at least'' and inserting
the following:
``(B) has--
``(i) at least''; and
(B) by striking the period at the end and inserting
the following: ``; or
``(ii) a full-time employee who has not
less than 3 years experience making microloans
to startup, newly established, or growing small
business concerns; and
``(C) has at least 1 year experience providing, as
an integral part of its microloan program, intensive
marketing, management, and technical assistance to its
borrowers.''.
(b) Limitation on Third Party Technical Assistance.--Section
7(m)(4)(E)(ii) of the Small Business Act (15 U.S.C. 636(m)(4)(E)(ii))
is amended--
(1) in the clause heading, by striking ``Technical
assistance'' and inserting ``Third party technical
assistance''; and
(2) by striking ``25 percent'' and inserting ``30
percent''.
(c) Increased Flexibility for Providing Technical Assistance to
Potential Borrowers.--Section 7(m)(4)(E)(i) of the Small Business Act
(15 U.S.C. 636(m)(4)(E)(i)) is amended by striking ``25 percent'' and
inserting ``30 percent''.
SEC. 124. PRIME REAUTHORIZATION AND TRANSFER TO THE SMALL BUSINESS ACT.
(a) Program Reauthorization.--The Small Business Act (15 U.S.C. 631
et seq.) is amended--
(1) by redesignating section 37 as section 40; and
(2) by inserting after section 36 the following:
``SEC. 37. PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS.
``(a) Definitions.--In this section:
``(1) Capacity building services.--The term `capacity
building services' means services provided to an organization
that is, or that is in the process of becoming, a
microenterprise development organization or program, for the
purpose of enhancing its ability to provide training and
services to disadvantaged entrepreneurs.
``(2) Collaborative.--The term `collaborative' means 2 or
more nonprofit entities that agree to act jointly as a
qualified organization under this section.
``(3) Disadvantaged entrepreneur.--The term `disadvantaged
entrepreneur' means a microentrepreneur that--
``(A) is a low-income person;
``(B) is a very low-income person; or
``(C) lacks adequate access to capital or other
resources essential for business success, or is
economically disadvantaged, as determined by the
Administrator.
``(4) Disadvantaged native american entrepreneur.--The term
`disadvantaged Native American entrepreneur' means a
disadvantaged entrepreneur who is also a member of an Indian
Tribe.
``(5) Indian tribe.--The term `Indian tribe' has the
meaning given that term in section 4(a) of the Indian Self-
Determination and Education Assistance Act.
``(6) Intermediary.--The term `intermediary' means a
private, nonprofit entity that seeks to serve microenterprise
development organizations and programs, as authorized under
subsection (d).
``(7) Low-income person.--The term `low-income person'
means having an income, adjusted for family size, of not more
than--
``(A) for metropolitan areas, 80 percent of the
area median income; and
``(B) for nonmetropolitan areas, the greater of--
``(i) 80 percent of the area median income;
or
``(ii) 80 percent of the statewide
nonmetropolitan area median income.
``(8) Microentrepreneur.--The term `microentrepreneur'
means the owner or developer of a microenterprise.
``(9) Microenterprise.--The term `microenterprise' means a
sole proprietorship, partnership, or corporation that--
``(A) has fewer than 5 employees; and
``(B) generally lacks access to conventional loans,
equity, or other banking services.
``(10) Microenterprise development organization or
program.--The term `microenterprise development organization or
program' means a nonprofit entity, or a program administered by
such an entity, including community development corporations or
other nonprofit development organizations and social service
organizations, that provides services to disadvantaged
entrepreneurs.
``(11) Training and technical assistance.--The term
`training and technical assistance' means services and support
provided to disadvantaged entrepreneurs, such as assistance for
the purpose of enhancing business planning, marketing,
management, financial management skills, and assistance for the
purpose of accessing financial services.
``(12) Very low-income person.--The term `very low-income
person' means having an income, adjusted for family size, of
not more than 150 percent of the poverty line (as defined in
section 673(2) of the Community Services Block Grant Act (42
U.S.C. 9902(2)), including any revision required by that
section).
``(b) Establishment of Program.--The Administrator shall establish
a microenterprise technical assistance and capacity building grant
program to provide assistance from the Administration in the form of
grants to qualified organizations in accordance with this section.
``(c) Uses of Assistance.--A qualified organization shall use
grants made under this section--
``(1) to provide training and technical assistance to
disadvantaged entrepreneurs;
``(2) to provide training and capacity building services to
microenterprise development organizations and programs and
groups of such organizations to assist such organizations and
programs in developing microenterprise training and services;
``(3) to aid in researching and developing the best
practices in the field of microenterprise and technical
assistance programs for disadvantaged entrepreneurs;
``(4) to provide training and technical assistance to
disadvantaged Native American entrepreneurs and prospective
entrepreneurs; and
``(5) for such other activities as the Administrator
determines are consistent with the purposes of this section.
``(d) Qualified Organizations.--For purposes of eligibility for
assistance under this section, a qualified organization shall be--
``(1) a nonprofit microenterprise development organization
or program (or a group or collaborative thereof) that has a
demonstrated record of delivering microenterprise services to
disadvantaged entrepreneurs;
``(2) an intermediary;
``(3) a microenterprise development organization or program
that is accountable to a local community, working in
conjunction with a State or local government or Indian tribe;
or
``(4) an Indian tribe acting on its own, if the Indian
tribe certifies that no private organization or program
referred to in this subsection exists within its jurisdiction.
``(e) Allocation of Assistance; Subgrants.--
``(1) Allocation of assistance.--
``(A) In general.--The Administrator shall allocate
assistance from the Administration under this section
to ensure that--
``(i) activities described in subsection
(c)(1) are funded using not less than 75
percent of amounts made available for such
assistance; and
``(ii) activities described in subsection
(c)(2) are funded using not less than 15
percent of amounts made available for such
assistance.
``(B) Limit on individual assistance.--No single
person may receive more than 10 percent of the total
funds appropriated under this section in a single
fiscal year.
``(2) Targeted assistance.--The Administrator shall ensure
that not less than 50 percent of the grants made under this
section are used to benefit very low-income persons, including
those residing on Indian reservations.
``(3) Subgrants authorized.--
``(A) In general.--A qualified organization
receiving assistance under this section may provide
grants using that assistance to qualified small and
emerging microenterprise organizations and programs,
subject to such rules and regulations as the
Administrator determines to be appropriate.
``(B) Limit on administrative expenses.--Not more
than 7.5 percent of assistance received by a qualified
organization under this section may be used for
administrative expenses in connection with the making
of subgrants under subparagraph (A).
``(4) Diversity.--In making grants under this section, the
Administrator shall ensure that grant recipients include both
large and small microenterprise organizations, serving urban,
rural, and Indian tribal communities serving diverse
populations.
``(5) Prohibition on preferential consideration of certain
administration program participants.--In making grants under
this section, the Administrator shall ensure that any
application made by a qualified organization that is a
participant in the program established under section 7(m) does
not receive preferential consideration over applications from
other qualified organizations that are not participants in such
program.
``(f) Matching Requirements.--
``(1) In general.--Financial assistance under this section
shall be matched with funds from sources other than the Federal
Government on the basis of not less than 50 percent of each
dollar provided by the Administration.
``(2) Sources of matching funds.--Fees, grants, gifts,
funds from loan sources, and in-kind resources of a grant
recipient from public or private sources may be used to comply
with the matching requirement in paragraph (1).
``(3) Exception.--
``(A) In general.--In the case of an applicant for
assistance under this section with severe constraints
on available sources of matching funds, the
Administrator may reduce or eliminate the matching
requirements of paragraph (1).
``(B) Limitation.--Not more than 10 percent of the
total funds made available from the Administration in
any fiscal year to carry out this section may be
excepted from the matching requirements of paragraph
(1), as authorized by subparagraph (A) of this
paragraph.
``(g) Applications for Assistance.--An application for assistance
under this section shall be submitted in such form and in accordance
with such procedures as the Administrator shall establish.
``(h) Recordkeeping and Reporting.--
``(1) In general.--Each organization that receives
assistance from the Administration under this section shall--
``(A) submit to the Administration not less than
once in every 18-month period, financial statements
audited by an independent certified public accountant;
``(B) submit an annual report to the Administration
on its activities; and
``(C) keep such records as may be necessary to
disclose the manner in which any assistance under this
section is used.
``(2) Access.--The Administration shall have access upon
request, for the purposes of determining compliance with this
section, to any records of any organization that receives
assistance from the Administration under this section.
``(3) Data collection.--Each organization that receives
assistance from the Administration under this section shall
collect information relating to, as applicable--
``(A) the number of individuals counseled or
trained;
``(B) the number of hours of counseling provided;
``(C) the number of startup small business concerns
formed;
``(D) the number of small business concerns
expanded;
``(E) the number of low-income individuals
counseled or trained; and
``(F) the number of very low-income individuals
counseled or trained.''.
(b) Conforming Repeal.--Subtitle C of title I of the Riegle
Community Development and Regulatory Improvement Act of 1994 (15 U.S.C.
6901 note) is repealed.
(c) References.--All references in Federal law, other than
subsection (d) of this section, to the ``Program for Investment in
Microentrepreneurs Act of 1999'' or the ``PRIME Act'' shall be deemed
to be references to section 37 of the Small Business Act, as added by
this section.
(d) Rule of Construction.--Nothing in this section or the
amendments made by this section shall affect any grant or assistance
provided under the Program for Investment in Microentrepreneurs Act of
1999, before the date of enactment of this Act, and any such grant or
assistance shall be subject to the Program for Investment in
Microentrepreneurs Act of 1999, as in effect on the day before the date
of enactment of this Act.
SEC. 125. REPORT TO CONGRESS ON THE MICROLOAN PROGRAM.
Section 7(m)(10) of the Small Business Act (15 U.S.C. 638(m)(10))
is amended to read as follows:
``(10) Report to congress on the microloan program.--
``(A) In general.--Not later than 6 months after
the date of enactment of the SBA Reauthorization and
Improvement Act of 2008, the Comptroller General of the
United States shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives, a report which includes--
``(i) an analysis of the effectiveness of
the Microloan Program and the microloan
technical assistance program;
``(ii) a description of the loan portfolio
of each intermediary, including the extent to
which it provides microloans to small business
concerns in rural areas;
``(iii) the numbers and amounts of
microloans made by the intermediaries to small
business concern borrowers;
``(iv) an accurate measure of the cost of
the microloan and microloan technical
assistance programs; and
``(v) any recommendations for legislative
changes that would improve the program
operations.
``(B) Considerations and consultations.--In
developing the report required by subparagraph (A), the
Comptroller General shall consult with the microloan
intermediaries, the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives, and
other appropriate industry members, and shall allow for
industry comment.''.
Subtitle B--Intermediary Lending Pilot Program
SEC. 141. FINDINGS.
Congress finds the following:
(1) Small and emerging businesses, particularly startups
and businesses that lack sufficient or conventional collateral,
continue to face barriers accessing midsized loans in amounts
between $35,000 and $200,000, with affordable terms and
conditions.
(2) Consolidation in the banking industry has resulted in a
decrease in the number of small, locally controlled banks with
not more than $100,000,000 in assets and has changed the method
by which banks make small business credit decisions with--
(A) credit scoring techniques replacing
relationship-based lending, which often works to the
disadvantage of small or start-up businesses that do
not conform with a bank's standardized credit formulas;
and
(B) less flexible terms and conditions, which are
often necessary for small and emerging businesses.
(3) In the environment described in paragraphs (1) and (2),
nonprofit intermediary lenders, including community development
corporations, provide financial resources that supplement the
small business lending and investments of a bank by--
(A) providing riskier, up front, or subordinated
capital;
(B) offering flexible terms and underwriting
procedures; and
(C) providing technical assistance to businesses in
order to reduce the transaction costs and risk exposure
of banks.
(4) Several Federal programs, including the Microloan
Program under section 7(m) of the Small Business Act (15 U.S.C.
636(m)) and the Intermediary Relending Program of the
Department of Agriculture, have demonstrated the effectiveness
of working through nonprofit intermediaries to address the
needs of small business concerns that are unable to access
capital through conventional sources.
(5) More than 1,000 nonprofit intermediary lenders in the
United States are--
(A) successfully providing financial and technical
assistance to small and emerging businesses;
(B) working with banks and other lenders to
leverage additional capital for their business
borrowers; and
(C) creating employment opportunities for low-
income individuals through their lending and business
development activities.
SEC. 142. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.
(a) In General.--Section 7 of the Small Business Act (15 U.S.C.
636) is amended by inserting after subsection (k) the following:
``(l) Small Business Intermediary Lending Program.--
``(1) Definitions.--In this subsection--
``(A) the term `intermediary' means a private,
nonprofit entity that seeks to borrow, or has borrowed,
funds from the Administration to provide midsize loans
to small business concerns under this subsection,
including--
``(i) a private, nonprofit community
development corporation;
``(ii) a consortium of private, nonprofit
organizations or nonprofit community
development corporations;
``(iii) a quasi-governmental economic
development entity (such as a planning and
development district), other than a State,
county, or municipal government; and
``(iv) an agency of or nonprofit entity
established by a Native American Tribal
Government; and
``(B) the term `midsize loan' means a fixed rate
loan of not less than $35,000 and not more than
$200,000, made by an intermediary to a startup, newly
established, or growing small business concern.
``(2) Establishment.--There is established a 3-year pilot
program to be know as the `Small Business Intermediary Lending
Pilot Program' (referred to in this subsection as the
`Program'), under which the Administrator may provide direct
loans to eligible intermediaries, for the purpose of making
fixed interest rate midsize loans to startup, newly
established, and growing small business concerns.
``(3) Purposes.--The purposes of the Program are--
``(A) to assist small business concerns in those
areas suffering from a lack of credit due to poor
economic conditions;
``(B) to create employment opportunities for low-
income individuals;
``(C) to establish a midsize loan program to be
administered by the Administrator to provide loans to
eligible intermediaries to enable such intermediaries
to provide midsize loans, particularly loans in amounts
averaging not more than $150,000, to startup, newly
established, or growing small business concerns for
working capital or the acquisition of materials,
supplies, or equipment;
``(D) to test the effectiveness of nonprofit
intermediaries--
``(i) as a delivery system for a midsize
loan program; and
``(ii) in addressing the credit needs of
small business concerns and leveraging other
sources of credit; and
``(E) to determine the advisability and feasibility
of implementing a midsize loan program nationwide.
``(4) Eligibility for participation.--An intermediary shall
be eligible to receive loans under the Program if the
intermediary has not less than 1 year of experience making
loans to startup, newly established, or growing small business
concerns.
``(5) Loans to intermediaries.--
``(A) Application.--Each intermediary desiring a
loan under this subsection shall submit an application
to the Administrator that describes--
``(i) the type of small business concerns
to be assisted;
``(ii) the size and range of loans to be
made;
``(iii) the geographic area to be served
and its economic, poverty, and unemployment
characteristics;
``(iv) the status of small business
concerns in the area to be served and an
analysis of the availability of credit; and
``(v) the qualifications of the applicant
to carry out this subsection.
``(B) Loan limits.--Notwithstanding subsection
(a)(3), no loan may be made to an intermediary under
this subsection if the total amount outstanding and
committed to the intermediary from the business loan
and investment fund established by this Act would, as a
result of such loan, exceed $1,000,000 during the
participation of the intermediary in the Program.
``(C) Loan duration.--Loans made by the
Administrator under this subsection shall be for a
maximum term of 20 years.
``(D) Applicable interest rates.--Loans made by the
Administrator to an intermediary under the Program
shall bear an annual interest rate equal to 1.00
percent.
``(E) Fees; collateral.--The Administrator may not
charge any fees or require collateral with respect to
any loan made to an intermediary under this subsection.
``(F) Leverage.--Any loan to a small business
concern under this subsection shall not exceed 75
percent of the total cost of the project funded by such
loan, with the remaining funds being leveraged from
other sources, including--
``(i) banks or credit unions;
``(ii) community development financial
institutions; and
``(iii) other sources with funds available
to the intermediary lender.
``(G) Delayed payments.--The Administrator shall
not require the repayment of principal or interest on a
loan made to an intermediary under the Program during
the first 2 years of the loan.
``(6) Program funding for midsize loans.--
``(A) Number of participants.--Under the Program,
the Administrator may provide loans, on a competitive
basis, to not more than 20 intermediaries.
``(B) Equitable distribution of intermediaries.--
The Administrator shall select and provide funding
under the Program to such intermediaries as will ensure
geographic diversity and representation of urban and
rural communities.
``(7) Report to congress.--
``(A) Annual report.--Not later than 12 months
after the date of enactment of the SBA Reauthorization
and Improvement Act of 2008, and annually thereafter,
the Administrator shall submit a report containing an
evaluation of the effectiveness of the Program to--
``(i) the Committee on Small Business and
Entrepreneurship of the Senate; and
``(ii) the Committee on Small Business of
the House of Representatives.
``(B) Contents.--Each report submitted under
subparagraph (A) shall include, for the 12-month period
before the date of that report--
``(i) the numbers and locations of the
intermediaries receiving funds to provide
midsize loans;
``(ii) the amounts of each loan to an
intermediary;
``(iii) the numbers and amounts of midsize
loans made by intermediaries to small business
concerns;
``(iv) the repayment history of each
intermediary;
``(v) a description of the loan portfolio
of each intermediary, including the extent to
which it provides midsize loans to small
business concerns in rural and economically
depressed areas;
``(vi) an estimate of the number of low-
income individuals who have been employed as a
direct result of the Program; and
``(vii) any recommendations for legislative
changes that would improve the operation of the
Program.
``(8) Termination.--The authority to make loans under this
subsection shall terminate 3 years after the date of enactment
of the SBA Reauthorization and Improvement Act of 2008.''.
(b) Rulemaking Authority.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall issue regulations to
carry out section 7(l) of the Small Business Act, as added by
subsection (a).
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Administrator such sums as may be necessary for each of
fiscal years 2008 through 2010 to provide $20,000,000 in loans
under section 7(l) of the Small Business Act, as added by
subsection (a).
(2) Availability.--Any amounts appropriated pursuant to
paragraph (1) shall remain available until expended.
Subtitle C--7(a) Loan Program
SEC. 161. PREFERRED LENDERS PROGRAM.
(a) In General.--Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended--
(1) by redesignating paragraph (32) relating to increased
veteran participation, as added by section 208 of the Military
Reservist and Veteran Small Business Reauthorization and
Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 631), as
paragraph (33); and
(2) by adding at the end the following:
``(34) Preferred lenders program.--
``(A) Definitions.--In this paragraph--
``(i) the term `national preferred lender'
means a preferred lender authorized to operate
in any area served by an office of the
Administration under subparagraph (G);
``(ii) the term `preferred lender' means a
qualified lender participating in the program;
``(iii) the term `program' means the
Preferred Lenders Program established under
subparagraph (B); and
``(iv) the term `qualified lender' means a
lender that demonstrates--
``(I) knowledge of and proficiency
in the requirements of the program
under this subsection;
``(II) the ability to process,
close, service, and liquidate loans;
``(III) the ability to develop and
analyze complete loan packages; and
``(IV) a satisfactory performance
history of participation in the program
under this subsection.
``(B) Establishment.--There is established a
Preferred Lenders Program under which the Administrator
may authorize qualified lenders to make and service
loans.
``(C) Application.--A qualified lender desiring to
participate in the program shall submit an application
at such time, in such manner, and accompanied by such
information as the Administrator shall establish.
``(D) Delegated authority.--The Administrator shall
authorize a preferred lender to take actions relating
to loan servicing on behalf of the Administrator,
including--
``(i) determining eligibility and
creditworthiness and loan monitoring,
collection, and liquidation;
``(ii) authority to make and close loans
with a guarantee from the Administrator without
obtaining the prior specific approval of the
Administrator; and
``(iii) authority to service and liquidate
such loans without obtaining the prior specific
approval of the Administrator for routine
servicing and liquidation activities.
``(E) Area of operations.--The Administrator shall
designate the area for which a preferred lender may
exercise the authority under subparagraph (D).
``(F) Conflict.--A preferred lender shall not take
any action creating an actual or apparent conflict of
interest.
``(G) National operation.--
``(i) In general.--A preferred lender may
request designation as a national preferred
lender by the Administrator, and, upon such
designation, shall have the authority to
operate in any area served by an office of the
Administration.
``(ii) Eligibility.--The Administration
shall designate a preferred lender as a
national preferred lender if the Administrator
determines that preferred lender has--
``(I) satisfactorily operated as a
preferred lender in areas encompassing
all or part of the territory in not
fewer than 5 district offices of the
Administration for a minimum of 3 years
in each territory;
``(II) centralized loan approval,
servicing, and liquidation functions
and processes that are satisfactory to
the Administration;
``(III) uniform written policies
and procedures;
``(IV) a currency rate that is not
less than the Administration's national
average currency rate for all loans
under this subsection;
``(V) a currency rate for loans
made under this subsection that is not
less than the Administration's national
average currency rate for loans made
under this subsection;
``(VI) a default rate that is not
more than the Administration's national
average default rate for loans made
under this subsection; and
``(VII) received, in the most
recent audit and review as a preferred
lender conducted by the Administrator,
a rating that is acceptable or
acceptable with corrective actions
required.
``(H) Corrective action.--If a national preferred
lender fails to continue to meet the eligibility
criteria under subparagraph (G)(ii), the Administrator
shall notify that national preferred lender of the
deficiency and allow a reasonable period of time for
that national preferred lender to meet such criteria.
``(I) Suspension or revocation.--
``(i) In general.--The designation of a
lender as a national preferred lender shall be
suspended or revoked at any time that the
Administration determines that the lender--
``(I) is not adhering to the rules
or regulations established by the
Administrator for the program; or
``(II) has failed to continue to
meet the eligibility criteria specified
in paragraph (G) or take corrective
action under subparagraph (H).
``(ii) Effect.--A suspension or revocation
under clause (i) shall not affect any
outstanding guarantee of a national preferred
lender.''.
(b) Clerical Amendment.--Section 7(a)(2)(C) of the Small Business
Act (15 U.S.C. 636(a)(2)(C)) is amended to read as follows:
``(C) Interest rate under preferred lenders
program.--The maximum interest rate for a loan
guaranteed under the Preferred Lenders Program under
paragraph (34) shall not exceed the maximum interest
rate as determined by the Administration, applicable to
other loans guaranteed under this subsection.''.
(c) Conforming Amendment.--Section 7(a)(19) of the Small Business
Act (15 U.S.C. 636(a)(19)) is amended by striking ``the proviso in
section 5(b)(7)'' and inserting ``paragraph (34)''.
SEC. 162. MAXIMUM LOAN AMOUNT.
Section 7(a)(3)(A) of the Small Business Act (15 U.S.C.
636(a)(3)(A)) is amended by striking ``$1,500,000 (or if the gross loan
amount would exceed $2,000,000'' and inserting ``$2,250,000 (or if the
gross loan amount would exceed $3,000,000''.
SEC. 163. MAXIMUM 504 AND 7(A) LOAN ELIGIBILITY.
(a) Combination Financing.--
(1) In general.--Section 502(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(2)) is amended by adding
at the end the following:
``(C) Combination financing under small business
act.--Notwithstanding any other provision of law,
financing under this title may be provided to a
borrower in the maximum amount provided in this
subsection, and a loan guarantee under section 7(a) of
the Small Business Act may be provided to the same
borrower in the maximum amount provided in section
7(a)(3)(A) of such Act, to the extent that the borrower
otherwise qualifies for such assistance.''.
(2) Conforming amendment.--Section 7(a)(1) of the Small
Business Act (15 U.S.C. 636(a)(1)) is amended by adding at the
end the following:
``(C) Combination financing under small business
investment act of 1958.--Financing under this
subsection may be provided to a borrower in the maximum
amount as provided in subsection (b)(2) of section 502
of the Small Business Investment Act of 1958 (15 U.S.C.
696).''.
(b) Reporting.--Not later than 90 days after the date of enactment
of this Act, and annually thereafter, the Administrator shall submit a
report to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives that--
(1) includes the number of small business concerns that
have financings under both section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) and title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.) during the year
before the year of that report; and
(2) describes the total amount and general performance of
the financings described in paragraph (1).
SEC. 164. LOAN POOLING.
Section 5(g)(1) of the Small Business Act (15 U.S.C. 634(g)(1)) is
amended--
(1) by inserting ``(A)'' before ``The Administration'';
(2) by striking the colon and all that follows and
inserting a period; and
(3) by adding at the end the following:
``(B) A trust certificate issued under subparagraph (A) shall be
based on, and backed by, a trust or pool approved by the Administrator
and composed solely of the guaranteed portion of such loans.
``(C) The interest rate on a trust certificate issued under
subparagraph (A) shall be either--
``(i) the lowest interest rate on any individual loan in
the pool; or
``(ii) the weighted average interest rate of all loans in
the pool, subject to such limited variations in loan
characteristics as the Administrator determines appropriate to
enhance marketability of the pool certificates.''.
SEC. 165. ALTERNATIVE SIZE STANDARD.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is
amended by adding at the end the following:
``(5) Optional Size Standard.--
``(A) In general.--The Administrator shall establish an
optional size standard for business loan applicants under
section 7(a) and development company loan applicants under
title V of the Small Business Investment Act of 1958, which
uses maximum tangible net worth and average net income as an
alternative to the use of industry standards.
``(B) Interim rule.--Until the date on which the optional
size standards established under subparagraph (A) are in
effect, the alternative size standard in section 121.301(b) of
title 13, Code of Federal Regulations, or any successor
thereto, may be used by business loan applicants under section
7(a) and development company loan applicants under title V of
the Small Business Investment Act of 1958.''.
SEC. 166. ALTERNATIVE VARIABLE INTEREST RATE.
(a) In General.--Section 7(a)(4)(A) of the Small Business Act (15
U.S.C. 636(a)(4)(A)) is amended by striking ``prescribed by the
Administration,'' and inserting: ``prescribed by the Administration,
including, on variable rate loans, a nationally recognized prime rate
of interest and at least 1 other index as an alternative thereto at the
option of the participating lender,''.
(b) Applicability.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Small Business
Administration shall select not less than 1 alternative index under
section 7(a)(4)(A) of the Small Business Act, as amended by subsection
(a), and make such index available for use by participating lenders.
SEC. 167. MINORITY SMALL BUSINESS DEVELOPMENT.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting after section 37, as added by this Act, the
following:
``SEC. 38. MINORITY SMALL BUSINESS DEVELOPMENT.
``(a) Office of Minority Small Business Development.--There is
established in the Administration an Office of Minority Small Business
Development, which shall be administered by the Associate Administrator
for Minority Small Business Development (in this section referred to as
the `Associate Administrator') appointed under section 4(b)(1).
``(b) Associate Administrator for Minority Small Business
Development.--The Associate Administrator--
``(1) shall be either--
``(A) an appointee in the Senior Executive Service
who is a career appointee; or
``(B) an employee in the competitive service;
``(2) shall be responsible for the formulation, execution,
and promotion of policies and programs of the Administration
that provide assistance to small business concerns owned and
controlled by minorities;
``(3) shall act as an ombudsman for full consideration of
minorities in all programs of the Administration (including
those under sections 7(j) and 8(a));
``(4) shall work with the Associate Deputy Administrator
for Capital Access to increase the proportion of loans and loan
dollars, and investments and investment dollars, going to
minorities through the finance programs under this Act and the
Small Business Investment Act of 1958 (including subsections
(a), (b), and (m) of section 7 of this Act and the programs
under part A and B of title III and title V of the Small
Business Investment Act of 1958);
``(5) shall work with the Associate Deputy Administrator
for Entrepreneurial Development to increase the proportion of
counseling and training that goes to minorities through the
entrepreneurial development programs of the Administration;
``(6) shall work with the Associate Deputy Administrator
for Government Contracting and Minority Enterprise Development
to increase the proportion of contracts, including through the
Small Business Innovation Research Program and the Small
Business Technology Transfer Program, to minorities;
``(7) shall work with the partners of the Administration,
trade associations, and business groups to identify and carry
out policies and procedures to more effectively market the
resources of the Administration to minorities;
``(8) shall work with the Office of Field Operations to
ensure that district offices and regional offices have adequate
staff, funding, and other resources to market the programs of
the Administration to meet the objectives described in
paragraphs (4) through (7); and
``(9) shall report to and be responsible directly to the
Administrator.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
``(1) $5,000,000 for fiscal year 2008;
``(2) $5,000,000 for fiscal year 2009; and
``(3) $5,000,000 for fiscal year 2010.''.
(b) Conforming Amendments.--Section 4(b)(1) of the Small Business
Act (15 U.S.C. 633(b)(1)) is amended in sixth sentence, by striking
``Minority Small Business and Capital Ownership Development'' and all
that follows through the end of the sentence and inserting ``Minority
Small Business Development.''.
SEC. 168. LOWERING OF FEES.
Section 7(a)(23) of the Small Business Act (15 U.S.C. 636(a)(23))
is amended by striking subparagraph (C) and inserting the following:
``(C) Lowering of fees.--
``(i) In general.--Subject to clause (ii),
for loan guarantees made or approved in each
full fiscal year after the date of enactment of
the SBA Reauthorization and Improvement Act of
2008, if the fees paid by all small business
borrowers and by lenders for guarantees under
this subsection, or the sum of such fees plus
any funds made available for the purpose of
reducing fees for loans under this subsection,
as applicable, is more than the amount
necessary to equal the cost to the
Administration of making such guarantees, the
Administrator shall reduce fees paid by small
business borrowers and lenders under clauses
(i) through (iv) of paragraph (18)(A) and
subparagraph (A) of this paragraph.
``(ii) Maximum reduction.--A reduction in
fees under clause (i) in any fiscal year may
not exceed the average amount by which fees
paid by all small business borrowers and by
lenders for guarantees under this subsection
exceeded the amount necessary to equal the cost
to the Administration of making such guarantees
during the 3 most recent fiscal years for which
such information is available before that
fiscal year.
``(iii) Maximum fees.--The fees paid by
small business borrowers and lenders for
guarantees under this subsection may not be
increased above the maximum level authorized
under the amendments made by division K of the
Consolidated Appropriations Act, 2005 (Public
Law 108-447; 118 Stat. 3441).''.
SEC. 169. INTERNATIONAL TRADE LOANS.
(a) In General.--Section 7(a)(3)(B) of the Small Business Act (15
U.S.C. 636(a)(3)(B)) is amended by striking ``$1,750,000, of which not
more than $1,250,000'' and inserting ``$2,750,000 (or if the gross loan
amount would exceed $3,670,000), of which not more than $2,000,000''.
(b) Working Capital.--Section 7(a)(16)(A) of the Small Business Act
(15 U.S.C. 636(a)(16)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``in--
'' and inserting ``--'';
(2) in clause (i)--
(A) by inserting ``in'' after ``(i)''; and
(B) by striking ``or'' at the end;
(3) in clause (ii)--
(A) by inserting ``in'' after ``(ii)''; and
(B) by striking the period and inserting ``; or'';
and
(4) by adding at the end the following:
``(iii) by providing working capital.''.
(c) Collateral.--Section 7(a)(16)(B) of the Small Business Act (15
U.S.C. 636(a)(16)(B)) is amended--
(1) by striking ``Each loan'' and inserting the following:
``(i) In general.--Except as provided in
clause (ii), each loan''; and
(2) by adding at the end the following:
``(ii) Exception.--A loan under this
paragraph may be secured by a second lien
position on the property or equipment financed
by the loan or on other assets of the small
business concern, if the Administrator
determines such lien provides adequate
assurance of the payment of such loan.''.
(d) Refinancing.--Section 7(a)(16)(A)(ii) of the Small Business Act
(15 U.S.C. 636(a)(16)(A)(ii)), as amended by this section, is amended
by inserting ``, including any debt that qualifies for refinancing
under any other provision of this subsection'' before the semicolon.
SEC. 170. RURAL LENDING OUTREACH PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as
amended by this Act, is amended--
(1) by striking paragraph (25)(C); and
(2) by adding at the end the following:
``(35) Rural lending outreach program.--
``(A) In general.--The Administrator shall carry
out a rural lending outreach program to provide not
more than an 85 percent guaranty for loans of not more
than $250,000. The program shall be carried out only
through lenders located in rural areas (as the term
`rural' is defined in section 501(f) of the Small
Business Investment Act of 1958 (15 U.S.C. 695(f))).
``(B) Loan terms.--For a loan made through the
program under this paragraph--
``(i) the Administrator shall approve or
disapprove the loan within 36 hours of the time
the Administrator receives the application;
``(ii) the program shall use abbreviated
application and documentation requirements; and
``(iii) minimum credit standards, as the
Administrator considers necessary to limit the
rate of default on loans made under the
program, shall apply.''.
Subtitle D--Certified Development Companies; 504 Loan Program
SEC. 181. DEVELOPMENT COMPANY LOAN PROGRAMS.
(a) Title of Program.--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:
``SEC. 511. PROGRAM TITLE.
``(a) In General.--Except as provided in subsection (b), the
programs authorized by this title shall be known collectively as the
`Local Development Business Loan Program'. The Administrator may refer
to such program as the `504 Loan Program', until such usage is no
longer necessary.
``(b) Existing Name.--Participants in the Local Development
Business Loan Program may continue to refer to such program as `the 504
Loan Program'.''.
(b) Existing Materials.--The Administrator may use informational
materials created, or that were in the process of being created, before
the date of enactment of this Act that do not refer to a program under
title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et
seq.) as the ``Local Development Business Loan Program''.
(c) New Materials.--Any informational materials created by the
Administrator on or after the date of enactment of this Act shall refer
to any program under title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.) as the ``Local Development Business Loan
Program'', except that informational materials may refer to such
program as the ``504 Loan Program'', until such usage is no longer
necessary.
SEC. 182. LOAN LIQUIDATIONS.
Section 510 of the Small Business Investment Act of 1958 (15 U.S.C.
697g) is amended--
(1) by redesignating subsection (e) as subsection (g); and
(2) by inserting after subsection (d) the following:
``(e) Participation.--
``(1) In general.--Any qualified State or local development
company which elects not to apply for authority to foreclose
and liquidate defaulted loans under this section, or which the
Administrator determines to be ineligible for such authority,
shall contract with a qualified third-party to perform
foreclosure and liquidation of defaulted loans in its
portfolio. The contract shall be contingent upon approval by
the Administrator with respect to the qualifications of the
contractor and the terms and conditions of liquidation
activities.
``(2) Commencement.--This subsection does not require any
development company to liquidate defaulted loans until the
Administrator has adopted and implemented a program to
compensate and reimburse development companies, as provided
under subsection (f).
``(f) Compensation and Reimbursement.--
``(1) Reimbursement of expenses.--The Administrator shall
reimburse each qualified State or local development company for
all expenses paid by such company as part of the foreclosure
and liquidation activities, if the expenses--
``(A) were--
``(i) approved in advance by the
Administrator, either specifically or
generally; or
``(ii) incurred by the development company
on an emergency basis without prior approval
from the Administrator, if the Administrator
determines that the expenses were reasonable
and appropriate; and
``(B) are submitted by the development company to
the Administrator not later than 3 years after the date
of the purchase of the debenture by the Administrator.
``(2) Compensation for results.--
``(A) Development.--The Administrator shall develop
a schedule to compensate and provide an incentive to
qualified State or local development companies that
foreclose and liquidate defaulted loans.
``(B) Criteria.--The schedule required under this
paragraph shall--
``(i) be based on a percentage of the net
amount recovered, but shall not exceed a
maximum amount; and
``(ii) not apply to any foreclosure which
is conducted under a contract between a
development company and a qualified third party
to perform the foreclosure and liquidation.''.
SEC. 183. ADDITIONAL EQUITY INJECTIONS.
Section 502(3)(B)(ii) of the Small Business Investment Act of 1958
(15 U.S.C. 696(3)(B)(ii)) is amended to read as follows:
``(ii) Funding from institutions.--If a
small business concern--
``(I) provides the minimum
contribution required under
subparagraph (C), not less than 50
percent of the total cost of any
project financed under clause (i),
(ii), or (iii) of subparagraph (C)
shall come from the institutions
described in subclauses (I), (II), and
(III) of clause (i); and
``(II) provides more than the
minimum contribution required under
subparagraph (C), any excess
contribution may be used to reduce the
amount required from the institutions
described in subclauses (I), (II), and
(III) of clause (i), except that the
amount from such institutions may not
be reduced to an amount that is less
than the amount of the loan made by the
Administrator.''.
SEC. 184. UNIFORM LEASING POLICY.
(a) In General.--Section 502 of the Small Business Investment Act
of 1958 (15 U.S.C. 696) is amended--
(1) by striking paragraphs (4) and (5) and inserting the
following:
``(4) Limitation on leasing.--If the use of a loan under
this section includes the acquisition of a facility or the
construction of a new facility, the small business concern
assisted--
``(A) shall permanently occupy and use not less
than a total of 50 percent of the space in the
facility; and
``(B) may, on a temporary or permanent basis, lease
to others not more than 50 percent of the space in the
facility.''; and
(2) by redesignating paragraph (6) as paragraph (5).
(b) Policy for 7(a) Loans.--Section 7(a)(28) of the Small Business
Act (15 U.S.C. 636(a)(28)) is amended to read as follows:
``(28) Limitation on leasing.--If the use of a loan under
this subsection includes the acquisition of a facility or the
construction of a new facility, the small business concern
assisted--
``(A) shall permanently occupy and use not less
than a total of 50 percent of the space in the
facility; and
``(B) may, on a temporary or permanent basis, lease
to others not more than 50 percent of the space in the
facility.''.
SEC. 185. BUSINESSES IN LOW-INCOME COMMUNITIES.
(a) Goals.--Section 501(d)(3)(A) of the Small Business Investment
Act of 1958 (15 U.S.C. 695(d)(3)(A)) is amended by inserting after
``business district revitalization,'' the following: ``or expansion of
businesses in low-income communities which would be eligible for a new
markets tax credit under section 45D(a) of the Internal Revenue Code of
1986, or implementing regulations issued under that section,''.
(b) Additional Incentives.--Section 502 of the Small Business
Investment Act of 1958 (15 U.S.C. 696), as amended by this Act, is
amended by adding at the end the following:
``(6) Low-income communities.--
``(A) Loan amount.--Notwithstanding paragraph
(2)(A)(ii), a loan under this section for use in a low-
income community (as that term is used in section
501(d)(3)(A)) may be for not more than $4,000,000.
``(B) Size standards.--For purposes of determining
eligibility for a loan under this section for use in a
low-income community (as that term is used in section
501(d)(3)(A)), the size standards established under
section 3 of the Small Business Act (15 U.S.C. 632)
shall be increased by 25 percent.
``(C) Personal liquidity.--
``(i) In general.--For any loan under this
section for use in a low-income community (as
that term is used in section 501(d)(3)(A)), the
amount of personal resources of an owner that
are excluded from the amount required to be
provided to reduce the portion of the project
funded by the Administration shall be not less
than 25 percent more than that required for
other loans under this section.
``(ii) Definition.--In this subparagraph,
the term `owner' means any person that owns not
less than 20 percent of the equity of the small
business concern applying for the applicable
loan.''.
SEC. 186. COMBINATIONS OF CERTAIN GOALS.
Section 501(e) of the Small Business Investment Act of 1958 (15
U.S.C. 695(e)) is amended by adding at the end the following:
``(7) A small business concern that is unconditionally owned by
more than 1 individual, or a corporation, the stock of which is owned
by more than 1 individual, shall be deemed to have achieved a public
policy goal required under subsection (d)(3) if a combined ownership
share of not less than 51 percent is held by individuals who are in 1
of, or a combination of, the groups described in subparagraph (C) or
(E) of subsection (d)(3).''.
SEC. 187. REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS LOAN
PROGRAM.
Section 502 of the Small Business Investment Act of 1958 (15 U.S.C.
696), as amended by this Act, is amended by adding at the end the
following:
``(7) Permissible debt refinancing.--
``(A) In general.--Any financing approved under
this title may include a limited amount of debt
refinancing.
``(B) Expansions.--If the project involves
expansion of a small business concern which has
existing indebtedness collateralized by fixed assets,
any amount of existing indebtedness that does not
exceed \1/2\ of the project cost of the expansion may
be refinanced and added to the expansion cost, if--
``(i) the proceeds of the indebtedness were
used to acquire land, including a building
situated thereon, to construct a building
thereon, or to purchase equipment;
``(ii) the borrower has been current on all
payments due on the existing debt for not less
than 1 year preceding the date of refinancing;
and
``(iii) the financing under section 504
will provide better terms or rate of interest
than exists on the debt at the time of
refinancing.''.
SEC. 188. TECHNICAL CORRECTION.
Section 501(e)(2) of the Small Business Investment Act of 1958 (15
U.S.C. 695(e)(2)) is amended by striking ``outstanding''.
SEC. 189. DEFINITIONS FOR THE SMALL BUSINESS INVESTMENT ACT OF 1958.
Section 103 of the Small Business Investment Act of 1958 (15 U.S.C.
662) is amended--
(1) by striking paragraph (6) and inserting the following:
``(6) the term `development company' means an entity
incorporated under State law with the authority to promote and
assist the growth and development of small business concerns in
the areas in which it is authorized to operate by the
Administrator;'';
(2) in paragraph (18), by striking ``and'' at the end;
(3) in paragraph (19), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(20) the term `certified development company' means a
development company that the Administrator has certified meets
the criteria of section 506.''.
SEC. 190. REPEAL OF SUNSET ON RESERVE REQUIREMENTS FOR PREMIER
CERTIFIED LENDERS.
Section 508(c)(6)(B) of the Small Business Investment Act of 1958
(15 U.S.C. 697e(c)(6)(B)) is amended--
(1) in the subparagraph heading, by striking ``Temporary
reduction'' and inserting ``Reduction''; and
(2) by striking ``Notwithstanding subparagraph (A), during
the 2-year period beginning on the date that is 90 days after
the date of enactment of this subparagraph, the'' and inserting
``The''.
SEC. 191. CERTIFIED DEVELOPMENT COMPANIES.
Section 506 of the Small Business Investment Act of 1958 (15 U.S.C.
697c) is amended--
(1) in the section heading, by striking ``restrictions on
development company assistance'' and inserting ``certified
development companies''; and
(2) by inserting before ``Notwithstanding any other
provision of law'' the following:
``(a) Authority to Issue Debentures.--A development company may
issue debentures under this title if the Administrator certifies that
the company meets the following criteria:
``(1) Size.--
``(A) In general.--Except as provided in
subparagraph (B), the development company shall be a
small business concern with fewer than 500 employees,
and shall not be under the control of any entity that
does not meet the size standards established by the
Administrator for a small business concern.
``(B) Exception.--Any development company that was
certified by the Administrator before December 31,
2005, may continue to issue debentures under this
title.
``(2) Primary purpose.--The primary purpose of the
development company shall be to benefit the community by
fostering economic development to create and preserve jobs and
stimulate private investment.
``(3) Primary function.--A primary function of the
development company shall be to accomplish its purpose by
providing long-term financing to small business concerns under
the Local Development Business Loan Program. The development
company shall also provide or support other community and local
economic development activities to assist the community.
``(4) Nonprofit status.--
``(A) In general.--Except as provided in
subparagraph (B), the development company shall be a
nonprofit corporation.
``(B) Exception.--A development company certified
by the Administrator before January 1, 1987, may
continue to issue debentures under this title and
retain its status as a for-profit enterprise.
``(5) Good standing.--The development company--
``(A) shall be in good standing in the State in
which such company is incorporated and in any other
State in which it conducts business; and
``(B) shall be in compliance with all laws,
including taxation requirements, in the State in which
such company is incorporated and in any other State in
which it conducts business.
``(6) Membership of development company.--There shall be--
``(A) not fewer than 25 members of the development
company (or owners or stockholders, if the corporation
is a for-profit entity), none of whom may own or
control more than 10 percent of the voting membership
of the company; and
``(B) at least 1 member of the development company
(none of whom is in a position to control the
development company) from each of the following:
``(i) Government organizations that are
responsible for economic development.
``(ii) Financial institutions that provide
commercial long-term fixed asset financing.
``(iii) Community organizations that are
dedicated to economic development.
``(iv) Businesses.
``(7) Board of directors.--
``(A) In general.--The development company shall
have a board of directors.
``(B) Members of board.--Each member of the board
of directors shall be--
``(i) a member of the development company;
and
``(ii) elected by a majority of the members
of the development company.
``(C) Representation of organizations and
institutions.--
``(i) In general.--There shall be at least
1 member of the board of directors from not
fewer than 3 of the 4 organizations and
institutions described in paragraph (6)(B),
none of whom is in a position to control the
development company.
``(ii) Maximum percentage.--Not more than
50 percent of the members of the board of
directors shall be from any 1 of the
organizations and institutions described in
paragraph (6)(B).
``(D) Meetings.--The board of directors of the
development company shall meet on a regular basis to
make policy decisions for such company.
``(8) Professional management and staff.--
``(A) In general.--The development company shall
have full-time professional management, including a
chief executive officer to manage daily operations and
a full-time professional staff qualified to market the
Local Development Business Loan Program and handle all
aspects of loan approval and servicing, including
liquidation, if appropriate.
``(B) Independent management and operation.--Except
as provided in paragraph (9), the development company
shall be independently managed and operated to pursue
the economic development purpose of the company and
shall employ directly the chief executive officer.
``(9) Management and operation exceptions.--
``(A) Affiliation.--A development company may be an
affiliate of another local nonprofit service
corporation (other than a development company), a
purpose of which is to support economic development in
the area in which the development company operates.
``(B) Staffing.--A development company may satisfy
the requirement for full-time professional staff under
paragraph (8)(A) by contracting for the required
staffing with--
``(i) a local nonprofit service
corporation;
``(ii) a nonprofit affiliate of a local
nonprofit service corporation;
``(iii) an entity wholly or partially
operated by a governmental agency; or
``(iv) another entity approved by the
Administrator.
``(C) Directors.--A development company and a local
nonprofit service corporation with which it is
affiliated may have in common some, but not all,
members of their respective board of directors.
``(D) Rural areas.--A development company in a
rural area may satisfy the requirements of a full-time
professional staff and professional management ability
under paragraph (8)(A) by contracting for such services
with another certified development company that--
``(i) has such staff and management
ability; and
``(ii) is located in the same State as the
development company or in a State that is
contiguous to the State in which the
development company is located.
``(E) Previously certified.--A development company
that, on or before December 31, 2005, was certified by
the Administrator and had contracted with a for-profit
company to provide staffing and management services,
may continue to do so.
``(b) Use of Excess Funds.--
``(1) In general.--Any funds generated by a certified
development company from making loans under section 503 or 504
that remain unexpended after payment of staff, operating, and
overhead expenses shall be used by the certified development
company for--
``(A) operating reserves;
``(B) expanding the area in which the certified
development company operates through the methods
authorized by this Act; or
``(C) investment in other community and local
economic development activity or community development
primarily in the State from which such funds were
generated.
``(2) Reporting.--Not later than July 1, 2009, and every
year thereafter, the Administrator shall compile and submit to
Congress a report regarding the economic and community
development activities of each certified development company
during the fiscal year before the year of that report, other
than loans made under this title.
``(c) Ethical Requirements.--
``(1) In general.--A certified development company and the
officers, employees, and other staff of the company shall at
all times act ethically and avoid activities which constitute a
conflict of interest or appear to constitute a conflict of
interest.
``(2) Prohibited conflict in project loans.--
``(A) In general.--No certified development company
may--
``(i) recommend or approve a guarantee of a
debenture by the Administrator under the Local
Business Development Loan Program that is
collateralized by a second lien position on the
property being constructed or acquired; and
``(ii) provide, or be affiliated with a
corporation or other entity which provides,
financing collateralized by a first lien on the
same property.
``(B) Exception.--During the 2-year period
beginning on the date of enactment of the SBA
Reauthorization and Improvement Act of 2008, a
certified development company that was participating as
a first mortgage lender for the Local Business
Development Loan Program in either of fiscal years 2004
or 2005 may continue to do so.
``(3) Other economic development activities.--It shall not
be a conflict of interest for a certified development company
to operate multiple programs to assist small business concerns
as part of carrying out its economic development purpose.
``(d) Multistate Operations.--
``(1) Authorization.--Notwithstanding any other provision
of law, the Administrator shall permit a certified development
company to make loans in any State that is contiguous to the
State of incorporation of that certified development company,
only if such company--
``(A) is--
``(i) an accredited lender under section
507; or
``(ii) a premier certified lender under
section 508;
``(B) has a membership that contains, from each of
the States in which it operates, not fewer than 25
members who reside in that State;
``(C) has a board of directors that contains not
fewer than 2 members from each State in which the
company makes loans;
``(D) maintains not fewer than 1 loan committee,
which shall have not fewer than 1 member from each
State in which the company makes loans; and
``(E) submits to the Administrator, in writing--
``(i) a notice of the intention of the
company to make loans in multiple States;
``(ii) the names of the States in which the
company intends to make loans; and
``(iii) a detailed statement of how the
company will comply with this paragraph,
including a list of the members described in
subparagraph (B).
``(2) Review.--The Administrator shall verify whether a
certified development company satisfies the requirements of
paragraph (1) on an expedited basis and, not later than 30 days
after the date on which the Administrator receives the
statement described in paragraph (1)(E)(iii), the Administrator
shall determine whether such company satisfies such criteria
and provide notice to such company.
``(3) Loan committee participation.--For any loan made by a
company described in paragraph (1), not fewer than 1 member of
the loan committee from the State in which the loan is to be
made shall participate in the review of such loan.
``(4) Aggregate accounting.--A company described in
paragraph (1) may maintain an aggregate accounting of all
revenue and expenses of the company for purposes of this title.
``(5) Service to certified development companies.--
``(A) In general.--Except as provided in
subparagraph (B), an associate of a certified
development company may not be an officer, director, or
manager of more than 1 certified development company.
``(B) Exception.--
``(i) In general.--Notwithstanding any
other provision of law, a person who is serving
on the board of directors of a certified
development company may serve on the board of
directors, but not as an officer, of not more
than 1 additional certified development
company, if--
``(I) such companies are not
located in the same State;
``(II) each board of directors
determines that the service by such
person on such board does not
constitute a conflict of interest; and
``(III) there is not a contractual
relationship between--
``(aa) the person and such
additional certified
development company, except for
the contract of such person to
serve as a member of the board
of directors of such company,
if any; or
``(bb) the certified
development companies of which
such person is a member of the
board of directors.
``(ii) Maximum number of members.--A
certified development company may not have more
than 1 member of the board of directors of such
company in common with any other board of
directors of a certified development company.
``(C) Definition.--As used in this paragraph, the
term `associate of a certified development company' has
the meaning given the term `Associate of a CDC' in
section 120.10 of title 13, Code of Federal Regulations
(or any corresponding similar regulation or ruling).
``(6) Local job creation requirements.--
``(A) In general.--Subject to subparagraph (B), any
certified development company making loans in multiple
States shall satisfy any applicable job creation or
retention requirements separately for each such State.
Such a company shall not count jobs created or retained
in 1 State towards any applicable job creation or
retention requirement in another State.
``(B) Applicability.--This paragraph shall apply to
a certified development company relating to a State
beginning 2 years after the date that certified
development company began making loans in that State.
``(7) Contiguous states.--For purposes of this subsection,
the States of Alaska and Hawaii shall be deemed to be
contiguous to any State abutting the Pacific Ocean.
``(8) Local economic area requirement and exemption.--
``(A) Definition.--In this paragraph, the term
`local economic area' means an area, as determined by
the Administrator, that--
``(i) is in a State other than the State in
which a development company is incorporated;
``(ii) shares a border with the area of
operations of the development company; and
``(iii) is a part of a local trade area
(including a city that is bisected by a State
line and a metropolitan statistical area that
is bisected by a State line) that is contiguous
to the area of operations of the development
company.
``(B) Exemption.--An applicant operating in a local
economic area shall not be considered to be operating
in a multistate area, and shall not be required to
comply with the requirements for multistate operation.
``(e) Restrictions on Development Company Assistance.--''.
SEC. 192. CONFORMING AMENDMENTS.
Section 503 of the Small Business Investment Act of 1958 (15 U.S.C.
697) is amended--
(1) in subsection (a)(1), by striking ``qualified State or
local development company'' and inserting ``certified
development company''; and
(2) by striking subsection (e) and inserting the following:
``(e) Section 7(a) Loans.--Notwithstanding any other provision of
law, a certified development company is authorized to prepare
applications for deferred participation loans under section 7(a) of the
Small Business Act, to service such loans, and to charge a reasonable
fee for servicing such loans.''.
SEC. 193. CLOSING COSTS.
Section 503(b) of the Small Business Investment Act of 1958 (15
U.S.C. 697(b)) is amended by striking paragraph (4) and inserting the
following:
``(4) the aggregate amount of such debenture does not
exceed the amount of the loans to be made from the proceeds of
such debenture plus, at the election of the borrower, other
amounts attributable to the administrative and closing costs of
such loans, except for the attorney fees of the borrower;''.
SEC. 194. DEFINITION OF RURAL.
Section 501 of the Small Business Investment Act of 1958 (15 U.S.C.
695) is amended by adding at the end the following:
``(f) As used in this title, the term `rural' includes any area
that is not--
``(1) a city or town that has a population greater than
50,000 inhabitants; or
``(2) the urbanized area contiguous and adjacent to a city
or town described in paragraph (1).''.
SEC. 195. REGULATIONS AND EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), the
Administrator shall--
(1) publish proposed rules to implement this subtitle and
the amendments made by this subtitle, not later than 120 days
after the date of enactment of this Act; and
(2) publish such rules in final form not later than 120
days after the date of publication under paragraph (1).
(b) Multistate Operations.--As soon as is practicable after the
date of enactment of this Act, the Administrator shall promulgate
regulations to implement section 506(d) of the Small Business
Investment Act of 1958, as added by this subtitle. Such regulations
shall become effective not later than 120 days after the date of
enactment of this Act.
(c) Effective Date.--
(1) In general.--Except as otherwise specifically provided
this subtitle, this subtitle and the amendments made by this
subtitle shall become effective 240 days after the date of
enactment of this Act, regardless of whether the Administrator
has promulgated the regulations required under subsection (a).
(2) Multistate operations.--Section 506(d) of the Small
Business Investment Act of 1958, as added by this subtitle,
shall become effective 120 days after the date of enactment of
this Act, regardless of whether the Administrator has
promulgated the regulations required under subsection (b).
SEC. 196. LIMITATION ON TIME FOR FINAL APPROVAL OF COMPANIES.
Section 354(d) of the Small Business Investment Act of 1958 (15
U.S.C. 689c(d)) is amended by striking ``a period of time, not to
exceed 2 years,'' and inserting ``2 years''.
SEC. 197. CHILD CARE LENDING PILOT PROGRAM.
(a) Child Care Lending Pilot Program.--Section 502 of the Small
Business Investment Act of 1958 (15 U.S.C. 696), as amended by this
Act, is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``The Administration'' and
inserting the following:
``(a) Authorization.--The Administration'';
(B) by striking ``and such loans'' and inserting
``. Such loans'';
(C) by striking ``: Provided, however, That the
foregoing powers shall be subject to the following
restrictions and limitations:'' and inserting a period;
and
(D) by adding at the end the following:
``(b) Restrictions and Limitations.--The authority under subsection
(a) shall be subject to the following restrictions and limitations:'';
and
(2) in subsection (b)(1), as so redesignated--
(A) by inserting after ``use of proceeds.--'' the
following:
``(A) In general.--''; and
(B) by adding at the end the following:
``(B) Loans to small, nonprofit child care
businesses.--
``(i) In general.--Notwithstanding
subsection (a), the proceeds of any loan
described in subsection (a) may be used by the
certified development company to assist a
small, nonprofit child care business, if--
``(I) the loan is used for a sound
business purpose that has been approved
by the Administrator;
``(II) each such business meets all
of the same eligibility requirements
applicable to for-profit businesses
under this title, except for status as
a for-profit business;
``(III) 1 or more individuals has
personally guaranteed the loan;
``(IV) each such business has clear
and singular title to the collateral
for the loan;
``(V) each such business has
sufficient cash flow from its
operations to meet its obligations on
the loan and its normal and reasonable
operating expenses; and
``(VI) each such business is
located in Arkansas, Connecticut,
Georgia, Indiana, Iowa, Louisiana,
Maine, Maryland, Massachusetts,
Michigan, Minnesota, Missouri, Montana,
North Carolina, South Dakota,
Tennessee, Washington, or Wyoming.
``(ii) Limitation on volume.--Not more than
7 percent of the total number of loans
guaranteed in any fiscal year under this title
may be awarded under this subparagraph.
``(iii) Defined term.--For purposes of this
subparagraph, the term `small, nonprofit child
care business' means an establishment that--
``(I) is organized in accordance
with section 501(c)(3) of the Internal
Revenue Code of 1986;
``(II) is primarily engaged in
providing child care for infants,
toddlers, pre-school, or pre-
kindergarten children (or any
combination thereof), and may provide
care for older children when they are
not in school, and may offer pre-
kindergarten educational programs;
``(III) including its affiliates,
has tangible net worth that does not
exceed $7,000,000, and has average net
income (excluding any carryover losses)
for the 2 completed fiscal years
preceding the date of the application
for assistance under this subparagraph
that does not exceed $2,500,000; and
``(IV) is licensed as a child care
provider by the State, insular area, or
the District of Columbia, in which it
is located.
``(iv) Sunset provision.--This subparagraph
shall cease to have effect on September 30,
2010, and shall apply to all loans authorized
under this subparagraph that are applied for,
approved, or disbursed during the period
beginning on the date of enactment of this
subparagraph and ending on September 30,
2010.''.
(b) Reports.--
(1) Small business administration.--
(A) In general.--Not later than 6 months after the
date of enactment of this Act, and every 6 months
thereafter until September 30, 2010, the Administrator
shall submit a report on the implementation of the
program under section 502(b)(1)(B) of the Small
Business Investment Act of 1958, as added by this Act,
to--
(i) the Committee on Small Business and
Entrepreneurship of the Senate; and
(ii) the Committee on Small Business of the
House of Representatives.
(B) Contents.--Each report under subparagraph (A)
shall contain--
(i) the date on which the program is
implemented;
(ii) the date on which the rules are issued
under subsection (c); and
(iii) the number and dollar amount of loans
under the program applied for, approved, and
disbursed during the 6-month period ending on
the date of that report--
(I) with respect to nonprofit child
care businesses; and
(II) with respect to for-profit
child care businesses.
(2) Government accountability office.--
(A) In general.--Not later than March 31, 2010, the
Comptroller General of the United States shall submit a
report on the child care small business loans
authorized by section 502(b)(1)(B) of the Small
Business Investment Act of 1958, as added by this Act,
to--
(i) the Committee on Small Business and
Entrepreneurship of the Senate; and
(ii) the Committee on Small Business of the
House of Representatives.
(B) Contents.--The report under subparagraph (A)
shall--
(i) contain information gathered during the
first 2 years of the loan program, including--
(I) an evaluation of the timeliness
of the implementation of the loan
program;
(II) a description of the
effectiveness and ease with which
certified development companies,
lenders, and small business concerns
have participated in the loan program;
(III) a description and assessment
of how the loan program was marketed;
(IV) by location (State, insular
area, and the District of Columbia) and
in total, the number of child care
small businesses, categorized by status
as a for-profit or nonprofit business,
that--
(aa) applied for a loan
under the program (and whether
it was a new or expanding child
care provider);
(bb) were approved for a
loan under the program; and
(cc) received a loan
disbursement under the program
(and whether they are a new or
expanding child care provider);
and
(V) with respect to businesses
described under subclause (IV)(cc)--
(aa) the number of such
businesses in each State,
insular area, and the District
of Columbia, as of the year of
enactment of this Act;
(bb) the total amount
loaned to such businesses under
the program;
(cc) the total number of
loans to such businesses under
the program;
(dd) the average loan
amount and term;
(ee) the currency rate,
delinquencies, defaults, and
losses of the loans;
(ff) the number and percent
of children served who receive
subsidized assistance; and
(gg) the number and percent
of children served who are low
income; and
(ii) assess whether there are government
programs in place making loans or providing
grant funding to nonprofit child care centers
to address child care shortages.
(C) Access to information.--
(i) In general.--The Administration shall
collect and maintain such information as may be
necessary to carry out this paragraph from
certified development companies and child care
providers, and such companies and providers
shall comply with a request for information
from the Administration for that purpose.
(ii) Provision of information to government
accountability office.--The Administration
shall provide information collected under this
subparagraph to the Comptroller General of the
United States for purposes of the report
required by this paragraph.
(c) Rulemaking Authority.--Not later than 120 days after the date
of enactment of this Act, the Administrator shall issue final rules to
carry out the loan program authorized by section 502(b)(1)(B) of the
Small Business Investment Act of 1958, as added by this Act.
SEC. 198. DEBENTURE REPAYMENT.
Section 503(a) of the Small Business Investment Act of 1958 (15
U.S.C. 697(a)) is amended by adding at the end the following:
``(5) Any debenture that is issued under this section shall provide
for the payment of principal and interest on a semiannual basis.''.
SEC. 199. REAL ESTATE APPRAISALS.
(a) In General.--Section 7(a)(29) of the Small Business Act (15
U.S.C. 636(a)(29)) is amended to read as follows:
``(29) Real estate appraisals.--
``(A) In general.--For any loan under this
subsection that is secured by commercial real property,
an appraisal of that property by an appraiser licensed
or certified by the State in which that property is
located--
``(i) shall be required by the
Administrator if the estimated value of that
property is more than $400,000; and
``(ii) may be required by the Administrator
or the lender if--
``(I) the estimated value of that
property is less than $400,000; and
``(II) an appraisal is necessary
for the appropriate evaluation of
creditworthiness.
``(B) Adjustment.--The Administrator--
``(i) shall periodically adjust the amount
under subparagraph (A) to account for the
effects of inflation; and
``(ii) may not make an adjustment under
clause (i) in an amount less than $50,000.''.
(b) Conforming Amendment.--Section 502(b)(3)(E), as so designated
by section 197(a) of this Act, is amended--
(1) in clause (ii), by striking ``$250,000'' each place
that term appears and inserting ``$400,000''; and
(2) by adding at the end the following:
``(iii) Adjustment.--The Administrator--
``(I) shall periodically adjust the
amount under clause (ii) to account for
the effects of inflation; and
``(II) may not make an adjustment
under subclause (I) in an amount less
than $50,000.''.
TITLE II--SMALL BUSINESS VENTURE CAPITAL
Subtitle A--Small Business Investment Company Program
SEC. 221. REAUTHORIZATION.
Section 20 of the Small Business Act (15 U.S.C. 631 note), as
amended by this Act, is amended by adding at the end the following:
``(m) Small Business Venture Capital.--For the programs authorized
under part A of title III of the Small Business Investment Act of 1958
(15 U.S.C. 681 et seq.), the Administrator is authorized to make--
``(1) $2,250,000,000 in guarantees of debentures for fiscal
year 2008;
``(2) $2,500,000,000 in guarantees of debentures for fiscal
year 2009; and
``(3) $2,750,000,000 in guarantees of debentures for fiscal
year 2010.''.
SEC. 222. LEVERAGE.
(a) In General.--Section 303(b)(2) of the Small Business Investment
Act of 1958 (15 U.S.C. 683(b)(2)) is amended to read as follows:
``(2) Maximum leverage.--
``(A) In general.--The maximum amount of
outstanding leverage made available to any 1 company
licensed under section 301(c) may not exceed the lesser
of--
``(i) 300 percent of private capital; or
``(ii) $150,000,000.
``(B) Multiple licenses under common control.--The
maximum amount of outstanding leverage made available
to 2 or more companies licensed under section 301(c)
that are commonly controlled (as determined by the
Administrator) may not exceed $225,000,000.
``(C) Investments in women-owned and minority-owned
businesses and in low-income geographic areas.--
``(i) In general.--The maximum amount of
outstanding leverage made available to--
``(I) any 1 company described in
clause (ii) may not exceed the lesser
of--
``(aa) 300 percent of
private capital; or
``(bb) $175,000,000; and
``(II) 2 or more companies
described in clause (ii) that are
commonly controlled (as determined by
the Administrator) may not exceed
$250,000,000.
``(ii) Applicability.--A company described
in this clause is a company licensed under
section 301(c) that certifies in writing that
not less than 50 percent of the dollar amount
of investments of that company shall be made in
companies that, prior to that investment, are
owned by women or minorities (as determined by
the Administrator) or are located in a low-
income geographic area (as that term is defined
in section 351).
``(D) Investments in energy saving small
businesses.--
``(i) In general.--Subject to clause (ii),
in calculating the outstanding leverage of a
company for purposes of subparagraph (A) or
(C), the Administrator shall exclude the amount
of the cost basis of any Energy Saving
qualified investment in a smaller enterprise
made in the first fiscal year after the date of
enactment of this subparagraph or any fiscal
year thereafter by a company licensed in the
applicable fiscal year.
``(ii) Limitations.--
``(I) Amount of exclusion.--The
amount excluded under clause (i) for a
company shall not exceed 33 percent of
the private capital of that company.
``(II) Maximum investment.--A
company shall not make an Energy Saving
qualified investment in any one entity
in an amount equal to more than 20
percent of the private capital of that
company.
``(III) Other terms.--The exclusion
of amounts under clause (i) shall be
subject to such terms as the
Administrator may impose to ensure that
there is no cost (as that term is
defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C.
661a)) with respect to purchasing or
guaranteeing any debenture involved.
``(E) Exception.--The Administrator may, on a case-
by-case basis, impose such additional terms and
conditions relating to the maximum amount of
outstanding leverage made available as the
Administrator determines to be appropriate to minimize
the risk of loss to the Administration in the event of
a default.''.
(b) Technical and Conforming Amendments.--Section 303(b) of the
Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended by
striking paragraph (4).
SEC. 223. INVESTMENTS IN SMALLER ENTERPRISES.
Section 303(d) of the Small Business Investment Act of 1958 (15
U.S.C. 683(d)) is amended to read as follows:
``(d) Investments in Smaller Enterprises.--The Administrator shall
require each licensee, as a condition of an application for leverage,
to certify in writing that not less than 25 percent of the aggregate
dollar amount of financings of that licensee shall be provided to
smaller enterprises.''.
SEC. 224. MAXIMUM INVESTMENT IN A COMPANY.
Section 306(a) of the Small Business Investment Act of 1958 (15
U.S.C. 686(a)) is amended by striking ``20 per centum'' and inserting
``30 percent''.
Subtitle B--New Markets Venture Capital Program
SEC. 241. DIVERSIFICATION OF NEW MARKETS VENTURE CAPITAL PROGRAM.
(a) Selection of Companies in Each Geographic Region.--Section 354
of the Small Business Investment Act of 1958 (15 U.S.C. 689c) is
amended by adding at the end the following:
``(f) Geographic Goal.--In selecting companies to participate as
New Markets Venture Capital companies in the program established under
this part, the Administrator shall have as a goal to select, from among
companies submitting applications under subsection (b), at least 1
company from each geographic region of the Administration.''.
(b) Participation in New Markets Venture Capital Program.--
(1) Administration participation required.--Section 353 of
the Small Business Investment Act of 1958 (15 U.S.C. 689b) is
amended in the matter preceding paragraph (1), by striking
``under which the Administrator may'' and inserting ``under
which the Administrator shall''.
(2) Small manufacturer participation.--Section 353(1) of
the Small Business Investment Act of 1958 (15 U.S.C. 689b(1))
is amended by inserting after ``section 352'' the following:
``(with a goal of at least 1 such agreement to be with a
company engaged primarily in the development of and investment
in small manufacturers, to the extent practicable)''.
SEC. 242. ESTABLISHMENT OF OFFICE OF NEW MARKETS VENTURE CAPITAL.
Title II of the Small Business Investment Act of 1958 (15 U.S.C.
671) is amended by adding at the end the following:
``SEC. 202. OFFICE OF NEW MARKETS VENTURE CAPITAL.
``(a) Establishment.--There is established in the Investment
Division of the Administration, the Office of New Markets Venture
Capital.
``(b) Director.--The head of the Office of New Markets Venture
Capital shall be an individual appointed in the competitive service or
excepted service.
``(c) Responsibilities of Director.--The responsibilities of the
head of the Office of New Markets Venture Capital include--
``(1) to administer the New Markets Venture Capital Program
under part B of title III;
``(2) to assess, not less frequently than once every 2
years, the nature and scope of the New Markets Venture Capital
Program and to advise the Administrator on recommended changes
to the program, based on such assessment;
``(3) to work to expand the number of small business
concerns participating in the New Markets Venture Capital
Program; and
``(4) to encourage investment in small manufacturing.''.
SEC. 243. LOW-INCOME GEOGRAPHIC AREAS.
(a) In General.--Section 351 of the Small Business Investment Act
of 1958 (15 U.S.C. 689) is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraphs (3) through (8) as
paragraphs (2) through (7), respectively; and
(3) in paragraph (2), as so redesignated--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``the term'' and inserting
``The term''; and
(ii) by striking ``means'';
(B) by striking subparagraph (A) and inserting the
following:
``(A) means a `low-income community' within the
meaning of section 45D(e) of the Internal Revenue Code
of 1986 (relating to the new markets tax credit);
and''; and
(C) in subparagraph (B), in the matter preceding
clause (i), by inserting ``includes'' before ``any
area''.
(b) Application of Amended Definition to Capital Requirement.--The
definition of a low-income geographic area in section 351 of the Small
Business Investment Act of 1958, as amended by subsection (a), shall
apply to capital raised by a New Markets Venture Capital company
before, on, or after the date of enactment of this Act.
SEC. 244. APPLICATIONS FOR NEW MARKETS VENTURE CAPITAL PROGRAM.
Not later than 1 year after the date of enactment of this Act, the
Administrator shall prescribe standard documents for an application for
final approval by a New Markets Venture Capital company under section
354(e) of the Small Business Investment Act of 1958 (15 U.S.C.
689c(e)). The Administrator shall ensure that such documents are
designed to substantially reduce the cost burden of the application
process on a company making such an application.
SEC. 245. OPERATIONAL ASSISTANCE GRANTS.
(a) In General.--Section 358(a)(4)(A) of the Small Business
Investment Act of 1958 (15 U.S.C. 689g(a)(4)(A)) is amended to read as
follows:
``(A) New markets venture capital companies.--
Notwithstanding section 354(d)(2), the amount of a
grant made under this subsection to a New Markets
Venture Capital company shall be equal to the lesser
of--
``(i) 10 percent of the private capital
raised by the company; or
``(ii) $1,000,000.''.
(b) Conforming Amendment and Limitation on Time for Final Approval
of Companies.--Section 354(d) of the Small Business Investment Act of
1958 (15 U.S.C. 689c(d)) is amended to read as follows:
``(d) Requirements to Be Met for Final Approval.--The Administrator
shall grant each conditionally approved company 2 years to raise not
less than $5,000,000 of private capital or binding capital commitments
from one or more investors (other than agencies or departments of the
Federal Government) who met criteria established by the
Administrator.''.
SEC. 246. AUTHORIZATION.
Section 368(a) of the Small Business Investment Act of 1958 (15
U.S.C. 689q(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``fiscal years 2001 through 2006'' and inserting ``fiscal years
2008 through 2010''; and
(2) in paragraph (2), by striking ``$30,000,000'' and
inserting ``$20,000,000''.
TITLE III--SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT
Subtitle A--Reauthorization
SEC. 301. REAUTHORIZATION.
(a) In General.--Section 20 of the Small Business Act (15 U.S.C.
631 note), as amended by this Act, is amended by adding at the end the
following:
``(n) SCORE Program.--There are authorized to be appropriated to
the Administrator to carry out the SCORE program authorized by section
8(b)(1) such sums as are necessary for the Administrator to make grants
or enter into cooperative agreements for a total of--
``(1) $7,000,000 in fiscal year 2008;
``(2) $8,000,000 in fiscal year 2009; and
``(3) $9,000,000 in fiscal year 2010.''.
(b) Small Business Development Centers.--Section 21(a)(4)(C)(vii)
of the Small Business Act (15 U.S.C. 648(a)(4)(C)(vii)) is amended to
read as follows:
``(vii) Authorization of appropriations.--
There are authorized to be appropriated to
carry out this subparagraph--
``(I) $135,000,000 for fiscal year
2008;
``(II) $140,000,000 for fiscal year
2009; and
``(III) $145,000,000 for fiscal
year 2010.''.
(c) Paul D. Coverdell Drug-Free Workplace Program.--
(1) In general.--Section 27(g) of the Small Business Act
(15 U.S.C. 654(g)) is amended--
(A) in paragraph (1), by striking ``fiscal years
2005 and 2006'' and inserting ``fiscal years 2008
through 2010''; and
(B) in paragraph (2), by striking ``fiscal years
2005 and 2006'' and inserting ``fiscal years 2008
through 2010''.
(2) Conforming amendment.--Section 21(c)(3)(T) of the Small
Business Act (15 U.S.C. 648(c)(3)(T)) is amended by striking
``October 1, 2006'' and inserting ``October 1, 2010''.
Subtitle B--Women's Small Business Ownership Programs
SEC. 311. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.
Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (B)(i), by striking ``in the
areas'' and all that follows through the end of
subclause (I), and inserting the following: ``to
address issues concerning management, operations,
manufacturing, technology, finance, retail and product
sales, international trade, and other disciplines
required for--
``(I) starting, operating, and
growing a small business concern;'';
and
(B) in subparagraph (C), by inserting before the
period at the end the following: ``, the National
Women's Business Council, and any association of
women's business centers''; and
(2) by adding at the end the following:
``(3) Programs and services for women-owned small
businesses.--The Assistant Administrator, in consultation with
the National Women's Business Council, the Interagency
Committee on Women's Business Enterprise, and 1 or more
associations of women's business centers, shall develop
programs and services for women-owned businesses (as defined in
section 408 of the Women's Business Ownership Act of 1988 (15
U.S.C. 631 note)) in business areas, which may include--
``(A) manufacturing;
``(B) technology;
``(C) professional services;
``(D) retail and product sales;
``(E) travel and tourism;
``(F) international trade; and
``(G) Federal Government contract business
development.
``(4) Training.--The Administrator shall provide annual
programmatic and financial oversight training for women's
business ownership representatives and district office
technical representatives of the Administration to enable
representatives to carry out their responsibilities under this
section.
``(5) Grant program and transparency improvements.--The
Administrator shall improve the transparency of the women's
business center grant proposal process and the programmatic and
financial oversight process by--
``(A) providing notice to the public of the grant
announcement for a grant under subsection (b) by not
later than the end of the first quarter of each fiscal
year;
``(B) clearly explaining award and program
evaluation criteria for a grant under subsection (b)
and a grant under subsection (m) in the initial grant
announcement;
``(C) reducing paperwork and reporting requirements
for grant applicants and recipients;
``(D) standardizing the oversight and review
process of the Administration; and
``(E) providing to each women's business center,
not later than 30 days after the completion of a site
visit (whether conducted for an audit, performance
review, or other reason) at that center, a copy of site
visit reports and evaluation reports prepared by
district office technical representatives or
Administration officials.''.
SEC. 312. WOMEN'S BUSINESS CENTER PROGRAM.
(a) Women's Business Center Grants Program.--Section 29 of the
Small Business Act (15 U.S.C. 656) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (2), (3), and (4),
as paragraphs (3), (4), and (5), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) the term `association of women's business centers'
means an organization that represents not fewer than 30 percent
of the women's business centers that are participating in a
program under this section, and whose primary purpose is to
represent women's business centers;'';
(2) in subsection (b)--
(A) by redesignating paragraphs (1), (2), and (3)
as subparagraphs (A), (B), and (C), and adjusting the
margins accordingly;
(B) by striking ``The Administration'' and
inserting the following:
``(1) In general.--The Administration'';
(C) by striking ``The projects shall'' and
inserting the following:
``(2) Use of funds.--The projects shall''; and
(D) by adding at the end the following:
``(3) Amount of grants.--
``(A) In general.--The Administrator may award a
grant under this subsection of not more than $150,000
per year.
``(B) Equal allocations.--In the event that the
Administration has insufficient funds to provide grants
of $150,000 for each grant recipient under this
subsection in any fiscal year, available funds shall be
allocated equally to grant recipients, unless any
recipient requests a lower amount than the allocable
amount.
``(4) Associations of women's business centers.--
``(A) Recognition.--The Administrator shall
recognize the existence and activities of any
association of women's business centers established to
address matters of common concern.
``(B) Consultation.--The Administrator shall
consult with each association of women's business
centers to develop--
``(i) a training program for the staff of
the women's business centers and the
Administration; and
``(ii) recommendations to improve the
policies and procedures for governing the
general operations and administration of the
Women's Business Center Program, including
grant program improvements under subsection
(g)(5).'';
(3) by striking subsection (f) and inserting the following:
``(f) Applications and Criteria for Initial Grants.--
``(1) Application.--Each organization desiring a grant
under subsection (b) shall submit to the Administrator an
application that contains--
``(A) a certification that the applicant--
``(i) is a private nonprofit organization;
``(ii) has designated an executive director
or program manager, who may be compensated from
grant funds or other sources, to manage the
center; and
``(iii) as a condition of receiving a grant
under subsection (b), agrees--
``(I) to receive a site visit as
part of the final selection process;
``(II) to undergo an annual
programmatic and financial examination;
and
``(III) to the maximum extent
practicable, to remedy any problems
identified pursuant to the site visit
or examination under subclauses (I) and
(II);
``(B) information demonstrating that the applicant
has the ability and resources to meet the needs of the
market to be served by the women's business center site
for which a grant under subsection (b) is sought,
including the ability to comply with the matching
requirement under subsection (c);
``(C) information relating to assistance to be
provided by the women's business center site for which
a grant under subsection (b) is sought in the area in
which the site is located;
``(D) information demonstrating the effective
experience of the applicant in--
``(i) conducting financial, management, and
marketing assistance programs, as described
under subsection (b)(2), which are designed to
teach or upgrade the business skills of women
who are business owners or potential business
owners;
``(ii) providing training and services to a
representative number of women who are both
socially and economically disadvantaged; and
``(iii) using resource partners of the
Administration and other entities, such as
universities;
``(E) a 5-year plan that projects the ability of
the women's business center site for which a grant is
sought--
``(i) to serve women who are business
owners or potential owners in the future by
improving training and counseling activities;
and
``(ii) to provide training and services to
a representative number of women who are both
socially and economically disadvantaged; and
``(F) any additional information that the
Administrator may reasonably require, if, not later
than 90 days before the date that the relevant
application is required to be submitted, the
Administrator provides written notice to the applicant
that such information is required.
``(2) Review and approval of applications for an initial
grant.--
``(A) In general.--The Administrator shall--
``(i) review each application submitted
under paragraph (1), based on the information
described in such paragraph and the criteria
set forth under subparagraph (B) of this
paragraph; and
``(ii) as part of the final selection
process, conduct a site visit at each women's
business center for which a grant under
subsection (b) is sought.
``(B) Selection criteria.--
``(i) In general.--The Administrator shall
evaluate applicants for grants under subsection
(b) in accordance with predetermined selection
criteria that shall be stated in terms of
relative importance. Such criteria and their
relative importance shall be made publicly
available and stated in each solicitation for
applications made by the Administrator.
``(ii) Required criteria.--The selection
criteria for a grant under subsection (b) shall
include--
``(I) the experience of the
applicant in conducting programs or
ongoing efforts designed to teach or
upgrade the business skills of women
who are business owners or potential
owners;
``(II) the ability of the applicant
to commence a project within a minimum
amount of time;
``(III) the ability of the
applicant to provide training and
services to a representative number of
women who are both socially and
economically disadvantaged; and
``(IV) the location for the women's
business center site proposed by the
applicant, including whether the
applicant is located in a State in
which there is not a women's business
center receiving funding from the
Administration.
``(C) Notice.--The Administrator may not award a
grant under subsection (b) to an applicant whose
principle place of business is located less than 50
miles from the principle place of business of another
organization receiving a grant under this section
unless the Administrator submits a written
justification for the need to award another grant under
this section in that area to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives.
``(D) Record retention.--The Administrator shall
maintain a copy of each application submitted under
this subsection for not less than 7 years.''; and
(4) in subsection (m), by striking paragraph (3) and
inserting the following:
``(3) Application and approval.--
``(A) Application.--Each organization desiring a
grant this subsection, shall submit to the
Administrator an application that contains--
``(i) a certification that the applicant--
``(I) is a private nonprofit
organization;
``(II) has designated an executive
director or program manager to manage
the center; and
``(III) as a condition of receiving
a grant under this subsection, agrees--
``(aa) to receive a site
visit as part of the final
selection process;
``(bb) to submit, for the
preceding 2 years, annual
programmatic and financial
examination reports or
certified copies of the
applicant's compliance
supplemental audits under OMB
Circular A-133; and
``(cc) to the maximum
extent practicable, to remedy
any problems identified
pursuant to the site visit or
examination under items (aa)
and (bb);
``(ii) information demonstrating that the
applicant has the ability and resources to meet
the needs of the market to be served by the
women's business center site for which a grant
under this subsection is sought, including the
ability to comply with the matching requirement
under paragraph (4)(C);
``(iii) information relating to assistance
to be provided by the women's business center
site for which a grant under this subsection is
sought in the area in which the site is
located;
``(iv) information demonstrating the
utilization of resource partners of the
Administration and other entities;
``(v) a 3-year plan that projects the
ability of the women's business center site for
which a grant under this subsection is sought--
``(I) to serve women who are
business owners or potential owners in
the future by improving training and
counseling activities; and
``(II) to provide training and
services to a representative number of
women who are both socially and
economically disadvantaged; and
``(vi) any additional information that the
Administrator may reasonably require.
``(B) Review and approval of applications for
grants.--
``(i) In general.--The Administrator
shall--
``(I) review each application
submitted under subparagraph (A), based
on the information described in such
subparagraph and the criteria set forth
under clause (ii) of this subparagraph;
and
``(II) as part of the final
selection process, conduct a site visit
at each women's business center for
which a grant under this subsection is
sought.
``(ii) Selection criteria.--
``(I) In general.--The
Administrator shall evaluate applicants
in accordance with predetermined
selection criteria that shall be stated
in terms of relative importance. Such
criteria and their relative importance
shall be made publicly available and
stated in each solicitation for
applications made by the Administrator.
``(II) Required criteria.--The
selection criteria for a grant under
this subsection shall include--
``(aa) the total number of
entrepreneurs served by the
applicant;
``(bb) the total number of
new start-up companies assisted
by the applicant;
``(cc) the percentage of
the clients of the applicant
that are socially or
economically disadvantaged; and
``(dd) the percentage of
individuals in the community
served by the applicant who are
socially or economically
disadvantaged.
``(iii) Conditions for continued funding.--
In determining whether to make a grant under
this subsection, the Administrator--
``(I) shall consider the results of
the most recent evaluation of the
center, and, to a lesser extent,
previous evaluations; and
``(II) may withhold such a grant,
if the Administrator determines that
the center has failed to provide the
information required to be provided
under this paragraph, or the
information provided by the center is
inadequate.
``(C) Notification.--Not later than 60 days after
the date of the deadline to submit applications for
each fiscal year, the Administrator shall approve or
deny any application under this paragraph and notify
the applicant for each such application.
``(D) Record retention.--The Administrator shall
maintain a copy of each application submitted under
this paragraph for not less than 7 years.''.
(b) Technical and Conforming Amendments.--Section 29 of the Small
Business Act (15 U.S.C. 656) is amended--
(1) in subsection (h)(2), by striking ``to award a contract
(as a sustainability grant) under subsection (l) or'';
(2) in subsection (j)(1), by striking ``The
Administration'' and inserting ``Not later than November 1st of
each year, the Administrator'';
(3) in subsection (k)--
(A) by striking paragraph (4);
(B) by redesignating paragraph (3) as paragraph
(5); and
(C) by striking paragraphs (1) and (2) and
inserting the following:
``(1) In general.--There are authorized to be appropriated
to the Administration to carry out this section, to remain
available until expended--
``(A) $20,000,000 for fiscal year 2008;
``(B) $20,500,000 for fiscal year 2009; and
``(C) $21,000,000 for fiscal year 2010.
``(2) Allocation.--Of amounts made available pursuant to
paragraph (1), the Administrator shall use not less than 60
percent for grants under subsection (l).
``(3) Use of amounts.--Amounts made available under this
subsection may only be used for grant awards and may not be
used for costs incurred by the Administration in connection
with the management and administration of the program under
this section.
``(4) Continuing grant and cooperative agreement
authority.--
``(A) In general.--The authority of the
Administrator to make grants under this section shall
be in effect for each fiscal year only to the extent
and in the amounts as are provided in advance in
appropriations Acts.
``(B) Prompt disbursement.--In order to help
women's business centers operate smoothly and
predictably, upon receiving funds to carry out this
section for a fiscal year, the Administrator shall
promptly disburse funds to any women's business center
awarded a grant under this section.
``(C) Renewal.--After the Administrator has entered
into a grant or cooperative agreement with any women's
business center under this section, the Administrator
shall not suspend, terminate, or fail to renew or
extend any such grant or cooperative agreement, unless
the Administrator provides the women's business center
with written notification setting forth the reasons for
that action and affords the center an opportunity for a
hearing, appeal, or other administrative proceeding
under chapter 5 of title 5, United States Code.'';
(4) in subsection (m)(4)(D), by striking ``or subsection
(l)''; and
(5) by redesignating subsections (m) and (n), as amended by
this Act, as subsections (l) and (m), respectively.
SEC. 313. NATIONAL WOMEN'S BUSINESS COUNCIL.
(a) Cosponsorship Authority.--Section 406 of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7106) is amended by adding at the end
the following:
``(f) Cosponsorship Authority.--The Council is authorized to enter
into agreements as a cosponsor with public and private entities, in the
same manner as is provided in section 4(h) of the Small Business Act
(15 U.S.C. 633(h)), to carry out its duties under this section.''.
(b) Membership.--Section 407(f) of the Women's Business Ownership
Act of 1988 (15 U.S.C. 7107(f)) is amended by adding at the end the
following:
``(3) Representation of member organizations.--In
consultation with the chairperson of the Council and the
Administrator, a national women's business organization or
small business concern that is represented on the Council may
replace its representative member on the Council during the
service term to which that member was appointed.''.
(c) Establishment of Working Groups.--Title IV of the Women's
Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is amended by
inserting after section 410, the following new section:
``SEC. 411. WORKING GROUPS.
``(a) Establishment.--There are established within the Council,
working groups, as directed by the chairperson.
``(b) Duties.--The working groups established under subsection (a)
shall perform such duties as the chairperson shall direct.''.
(d) Electronic Clearinghouse for Historical Documents.--Section 409
of the Women's Business Ownership Act of 1988 (15 U.S.C. 7109) is
amended by adding at the end the following:
``(c) Electronic Clearinghouse for Historical Documents.--The
Council shall serve as an electronic clearinghouse for information on
small businesses owned and controlled by women, including research
conducted by other organizations and individuals relating to ownership
by women of small business concerns in the United States.''.
(e) Authorization of Appropriations.--Section 410(a) of the Women's
Business Ownership Act of 1988 (15 U.S.C. 7110(a)) is amended by
striking ``2001 through 2003, of which $550,000'' and inserting ``2008
through 2010, of which not less than 30 percent''.
SEC. 314. INTERAGENCY COMMITTEE ON WOMEN'S BUSINESS ENTERPRISE.
(a) Chairperson.--Section 403(b) of the Women's Business Ownership
Act of 1988 (15 U.S.C. 7103(b)) is amended--
(1) by striking ``Not later'' and inserting the following:
``(1) In general.--Not later''; and
(2) by adding at the end the following:
``(2) Vacancy.--In the event that a chairperson is not
appointed under paragraph (1), the Deputy Administrator of the
Small Business Administration shall serve as acting chairperson
of the Interagency Committee until a chairperson is appointed
under paragraph (1).''.
(b) Policy Advisory Group.--Section 401 of the Women's Business
Ownership Act of 1988 (15 U.S.C. 7101) is amended--
(1) by striking ``There'' and inserting the following:
``(a) In General.--There''; and
(2) by adding at the end the following:
``(b) Policy Advisory Group.--
``(1) Establishment.--There is established a Policy
Advisory Group to assist the chairperson in developing policies
and programs under this Act.
``(2) Membership.--The Policy Advisory Group shall be
composed of 7 policy making officials, of whom--
``(A) 1 shall be a representative of the Small
Business Administration;
``(B) 1 shall be a representative of the Department
of Commerce;
``(C) 1 shall be a representative of the Department
of Labor;
``(D) 1 shall be a representative of the Department
of Defense;
``(E) 1 shall be a representative of the Department
of the Treasury; and
``(F) 2 shall be representatives of the Council.
``(3) Meetings.--The Policy Advisory Group established
under paragraph (1) shall meet not less frequently than 3 times
each year to--
``(A) plan activities for the new fiscal year;
``(B) track year-to-date agency contracting goals;
and
``(C) evaluate the progress during the fiscal year
and prepare an annual report.''.
SEC. 315. PRESERVING THE INDEPENDENCE OF THE NATIONAL WOMEN'S BUSINESS
COUNCIL.
(a) Findings.--Congress finds the following:
(1) The National Women's Business Council provides an
independent source of advice and policy recommendations
regarding women's business development and the needs of women
entrepreneurs in the United States to--
(A) the President;
(B) Congress;
(C) the Interagency Committee on Women's Business
Enterprise; and
(D) the Administrator.
(2) The members of the National Women's Business Council
are small business owners, representatives of business
organizations, and representatives of women's business centers.
(3) The chair and ranking member of the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives make
recommendations to the Administrator to fill 8 of the positions
on the National Women's Business Council. Four of the positions
are reserved for small business owners who are affiliated with
the political party of the President and 4 of the positions are
reserved for small business owners who are not affiliated with
the political party of the President. This method of
appointment ensures that the National Women's Business Council
will provide Congress with nonpartisan, balanced, and
independent advice.
(4) In order to maintain the independence of the National
Women's Business Council and to ensure that the Council
continues to provide the President, the Interagency Committee
on Women's Business Enterprise, the Administrator, and Congress
with advice on a nonpartisan basis, it is essential that the
Council maintain the bipartisan balance established under
section 407 of the Women's Business Ownership Act of 1988 (15
U.S.C. 7107).
(b) Maintenance of Partisan Balance.--Section 407(f) of the Women's
Business Ownership Act of 1988 (15 U.S.C. 7107(f)), as amended by this
Act, is amended by adding at the end the following:
``(4) Partisan balance.--When filling a vacancy under
paragraph (1) of this subsection of a member appointed under
paragraph (1) or (2) of subsection (b), the Administrator
shall, to the extent practicable, ensure that there are an
equal number of members on the Council from each of the 2 major
political parties.
``(5) Accountability.--If a vacancy is not filled within
the 30-day period required under paragraph (1), or if there
exists an imbalance of party-affiliated members on the Council
for a period exceeding 30 days, the Administrator shall submit
a report, not later than 10 days after the expiration of either
such 30-day deadline, to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives, that explains why the
respective deadline was not met and provides an estimated date
on which any vacancies will be filled, as applicable.''.
SEC. 316. STUDY AND REPORT ON WOMEN'S BUSINESS CENTERS.
(a) In General.--The Comptroller General of the United States shall
conduct a broad study of the unique economic issues facing women's
business centers located in covered areas to identify--
(1) the difficulties such centers face in raising matching
funds;
(2) the difficulties such centers face competing for grant,
matching funds, or other types of assistance;
(3) the difficulties such centers face in writing grant
proposals; and
(4) other difficulties such centers face because of the
economy in the type of covered area in which such centers are
located.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General shall submit to Congress a report
regarding the results of the study conducted under subsection (a),
which shall include recommendations, if any, regarding how to--
(1) address the unique difficulties women's business
centers located in covered areas face because of the type of
covered area in which such centers are located;
(2) expand the presence of, and increase the services
provided by, women's business centers located in covered areas;
and
(3) best use technology and other resources to better serve
women business owners located in covered areas.
(c) Definition of Covered Area.--In this section, the term
``covered area'' means--
(1) any State that is predominantly rural, as determined by
the Administrator;
(2) any State that is predominantly urban, as determined by
the Administrator; and
(3) any State or territory that is an island.
Subtitle C--International Trade
SEC. 321. SMALL BUSINESS ADMINISTRATION ASSOCIATE ADMINISTRATOR FOR
INTERNATIONAL TRADE.
(a) Establishment.--Section 22(a) of the Small Business Act (15
U.S.C. 649(a)) is amended by adding at the end the following: ``The
head of the Office shall be the Associate Administrator for
International Trade, who shall be responsible to the Administrator.''.
(b) Authority for Additional Associate Administrator.--Section
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
(1) in the fifth sentence, by striking ``five Associate
Administrators'' and inserting ``Associate Administrators'';
and
(2) by adding at the end the following: ``One of the
Associate Administrators shall be the Associate Administrator
for International Trade, who shall be the head of the Office of
International Trade established under section 22.''.
(c) Discharge of Administration International Trade
Responsibilities.--Section 22 of the Small Business Act (15 U.S.C. 649)
is amended by adding at the end the following:
``(h) Discharge of Administration International Trade
Responsibilities.--The Administrator shall ensure that--
``(1) the responsibilities of the Administration regarding
international trade are carried out through the Associate
Administrator for International Trade;
``(2) the Associate Administrator for International Trade
has sufficient resources to carry out such responsibilities;
and
``(3) the Associate Administrator for International Trade
has direct supervision and control over the staff of the Office
of International Trade, and over any employee of the
Administration whose principal duty station is a United States
Export Assistance Center or any successor entity.''.
(d) Role of Associate Administrator in Carrying Out International
Trade Policy.--Section 2(b)(1) of the Small Business Act (15 U.S.C.
631(b)(1)) is amended in the matter preceding subparagraph (A)--
(1) by inserting ``the Administrator of'' before ``the
Small Business Administration''; and
(2) by inserting ``through the Associate Administrator for
International Trade, and'' before ``in cooperation with''.
(e) Technical Amendment.--Section 22(c)(5) of the Small Business
Act (15 U.S.C. 649(c)(5)) is amended by striking the period at the end
and inserting a semicolon.
(f) Effective Date.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall appoint an Associate
Administrator for International Trade under section 22 of the Small
Business Act (15 U.S.C. 649), as amended by this section.
SEC. 322. OFFICE OF INTERNATIONAL TRADE.
Section 22 of the Small Business Act (15 U.S.C. 649) is amended--
(1) by striking ``SEC. 22. (a) There'' and inserting the
following:
``SEC. 22. OFFICE OF INTERNATIONAL TRADE.
``(a) Establishment.--There''.
(2) in subsection (a), by inserting ``(referred to in this
section as the `Office'),'' after ``Trade'';
(3) in subsection (b)--
(A) by striking ``The Office'' and inserting the
following:
``(b) Trade Distribution Network.--The Office, including United
States Export Assistance Centers (referred to as `one-stop shops' in
section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of 1988
(15 U.S.C. 4721(b)(8)) and as `export centers' in this section)''; and
(B) by amending paragraph (1) to read as follows:
``(1) assist in maintaining a distribution network using
regional and local offices of the Administration, the small
business development center network, the women's business
center network, the Native American business center network,
and export centers for--
``(A) trade promotion;
``(B) trade finance;
``(C) trade adjustment;
``(D) trade remedy assistance; and
``(E) trade data collection.'';
(4) in subsection (c)--
(A) by redesignating paragraphs (1) through (8) as
paragraphs (2) through (9), respectively;
(B) by inserting before paragraph (2), as so
redesignated, the following:
``(1) establish annual goals for the Office relating to--
``(A) enhancing the exporting capability of small
business concerns and small manufacturers;
``(B) facilitating technology transfers;
``(C) enhancing programs and services to assist
small business concerns and small manufacturers to
compete effectively and efficiently against foreign
entities;
``(D) increasing the access to capital by small
business concerns;
``(E) disseminating information concerning Federal,
State, tribal, and private programs and initiatives;
and
``(F) ensuring that the interests of small business
concerns are adequately represented in trade
negotiations;'';
(C) in paragraph (2), as so redesignated, by
striking ``mechanism for'' and all that follows through
``(D)'' and inserting the following: ``mechanism for--
``(A) identifying subsectors of the small business
community with strong export potential;
``(B) identifying areas of demand in foreign
markets;
``(C) prescreening foreign buyers for commercial
and credit purposes; and
``(D)''; and
(D) in paragraph (9), as so redesignated--
(i) in the matter preceding subparagraph
(A)--
(I) by striking ``full-time export
development specialists to each
Administration regional office and
assigning''; and
(II) by striking ``office. Such
specialists'' and inserting ``office
and providing each Administration
regional office with a full-time export
development specialist, who'';
(ii) in subparagraph (D), by striking
``and'' at the end;
(iii) in subparagraph (E), by striking the
period at the end and inserting a semicolon;
and
(iv) by adding at the end the following:
``(F) participate jointly with employees of the
Office in an annual training program that focuses on
current small business needs for exporting; and
``(G) jointly develop and conduct training programs
for exporters and lenders in cooperation with the
United States Export Assistance Centers, the Department
of Commerce, small business development centers, and
other relevant Federal agencies.'';
(5) in subsection (d)--
(A) by inserting ``Export Financing Programs.--''
after ``(d)'';
(B) by redesignating paragraphs (1) through (5) as
clauses (i) through (v), respectively, and adjusting
the margins accordingly;
(C) by striking ``The Office shall work in
cooperation'' and inserting the following:
``(1) In general.--The Office shall work in cooperation'';
and
(D) by striking ``To accomplish this goal, the
Office shall work'' and inserting the following:
``(2) Trade financial specialist.--To accomplish the goal
established under paragraph (1), the Office shall--
``(A) designate at least 1 individual within the
Administration as a trade financial specialist to
oversee international loan programs and assist
Administration employees with trade finance issues; and
``(B) work'';
(6) in subsection (e), by inserting ``Trade Remedies.--''
after ``(e)'';
(7) by amending subsection (f) to read as follows:
``(f) Reporting Requirement.--The Office shall submit an annual
report to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives that contains--
``(1) a description of the progress of the Office in
implementing the requirements of this section;
``(2) the destinations of travel by Office staff and
benefits to the Administration and to small business concerns
therefrom; and
``(3) a description of the participation by the Office in
trade negotiations.'';
(8) in subsection (g), by inserting ``Studies.--'' after
``(g)''; and
(9) by adding at the end the following:
``(i) Export Assistance Centers.--
``(1) In general.--During the period beginning on October
1, 2008, and ending on September 30, 2010, the Administrator
shall ensure that the number of full-time equivalent employees
of the Office assigned to the one-stop shops referred to in
section 2301(b) of the Omnibus Trade and Competitiveness Act of
1988 (15 U.S.C. 4721 (b)) is not less than the number of such
employees so assigned on January 1, 2003.
``(2) Priority of placement.--Priority shall be given, to
the maximum extent practicable, to placing employees of the
Administration at any Export Assistance Center that--
``(A) had an Administration employee assigned to
such center before January 2003; and
``(B) has not had an Administration employee
assigned to such center during the period beginning
January 2003, and ending on the date of enactment of
this subsection, either through retirement or
reassignment.
``(3) Needs of exporters.--The Administrator shall, to the
maximum extent practicable, strategically assign Administration
employees to Export Assistance Centers, based on the needs of
exporters.
``(4) Goals.--The Office shall work with the Department of
Commerce and the Export-Import Bank to establish shared annual
goals for the Export Centers.
``(5) Oversight.--The Office shall designate an individual
within the Administration to oversee all activities conducted
by Administration employees assigned to Export Centers.''.
Subtitle D--Native American Small Business Development Program
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ``Native American Small Business
Development Act of 2008''.
SEC. 332. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
inserting after section 38, as added by this Act, the following:
``SEC. 39. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.
``(a) Definitions.--In this section--
``(1) the term `Alaska Native' has the same meaning as the
term `Native' in section 3(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(b));
``(2) the term `Alaska Native corporation' has the same
meaning as the term `Native Corporation' in section 3(m) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
``(3) the term `Assistant Administrator' means the
Assistant Administrator of the Office of Native American
Affairs established under subsection (b);
``(4) the terms `center' and `Native American business
center' mean a center established under subsection (c);
``(5) the term `eligible applicant' means--
``(A) a tribal government;
``(B) a tribal college;
``(C) a Native Hawaiian Organization;
``(D) an Alaska Native corporation; or
``(E) a private, nonprofit organization--
``(i) that provides business and financial
or procurement technical assistance to any
entity described in subparagraph (A), (B), (C),
or (D); and
``(ii) the majority of members of the board
of directors of which are members of an Indian
tribe;
``(6) the term `Native American business enterprise center'
means an entity providing business development assistance to
federally recognized tribes and Native Americans under a grant
from the Minority Business Development Agency of the Department
of Commerce;
``(7) the term `Native American small business concern'
means a small business concern that is owned and controlled
by--
``(A) a member of an Indian tribe or tribal
government;
``(B) an Alaska Native or Alaska Native
corporation; or
``(C) a Native Hawaiian or Native Hawaiian
Organization;
``(8) the term `Native Hawaiian' has the same meaning as in
section 625 of the Older Americans Act of 1965 (42 U.S.C.
3057k);
``(9) the term `Native Hawaiian Organization' has the same
meaning as in section 8(a)(15);
``(10) the term `tribal college' has the same meaning as
the term `tribally controlled college or university' has in
section 2(a)(4) of the Tribally Controlled Community College
Assistance Act of 1978 (25 U.S.C. 1801(a)(4));
``(11) the term `tribal government' has the same meaning as
the term `Indian tribe' has in section 7501(a)(9) of title 31,
United States Code; and
``(12) the term `tribal lands' means all lands within the
exterior boundaries of any Indian reservation.
``(b) Office of Native American Affairs.--
``(1) Establishment.--There is established within the
Administration the Office of Native American Affairs, which,
under the direction of the Assistant Administrator, shall
implement the Administration's programs for the development of
business enterprises by Native Americans.
``(2) Purpose.--The purpose of the Office of Native
American Affairs is to assist Native American entrepreneurs
to--
``(A) start, operate, and grow small business
concerns;
``(B) develop management and technical skills;
``(C) seek Federal procurement opportunities;
``(D) increase employment opportunities for Native
Americans through the start and expansion of small
business concerns; and
``(E) increase the access of Native Americans to
capital markets.
``(3) Assistant administrator.--
``(A) Appointment.--The Administrator shall appoint
a qualified individual to serve as Assistant
Administrator of the Office of Native American Affairs
in accordance with this paragraph.
``(B) Qualifications.--The Assistant Administrator
appointed under subparagraph (A) shall have--
``(i) knowledge of the Native American
culture; and
``(ii) experience providing culturally
tailored small business development assistance
to Native Americans.
``(C) Employment status.--The Assistant
Administrator shall be a Senior Executive Service
position under section 3132(a)(2) of title 5, United
States Code, and shall serve as a noncareer appointee,
as defined in section 3132(a)(7) of title 5, United
States Code.
``(D) Responsibilities and duties.--The Assistant
Administrator shall--
``(i) administer and manage the Native
American Small Business Development program
established under this section;
``(ii) recommend the annual administrative
and program budgets for the Office of Native
American Affairs;
``(iii) consult with Native American
business centers in carrying out the program
established under this section;
``(iv) recommend appropriate funding
levels;
``(v) review the annual budgets submitted
by each applicant for the Native American Small
Business Development program;
``(vi) select applicants to participate in
the program under this section;
``(vii) implement this section; and
``(viii) maintain a clearinghouse to
provide for the dissemination and exchange of
information between Native American business
centers.
``(E) Consultation requirements.--In carrying out
the responsibilities and duties described in this
paragraph, the Assistant Administrator shall confer
with and seek the advice of--
``(i) Administration officials working in
areas served by Native American business
centers and Native American business enterprise
centers;
``(ii) representatives of tribal
governments;
``(iii) tribal colleges;
``(iv) Alaska Native corporations; and
``(v) Native Hawaiian Organizations.
``(c) Native American Small Business Development Program.--
``(1) Authorization.--
``(A) In general.--The Administration, through the
Office of Native American Affairs, shall provide
financial assistance to eligible applicants to create
Native American business centers in accordance with
this section.
``(B) Use of funds.--The financial and resource
assistance provided under this subsection shall be used
to overcome obstacles impeding the creation,
development, and expansion of small business concerns,
in accordance with this section, by--
``(i) reservation-based American Indians;
``(ii) Alaska Natives; and
``(iii) Native Hawaiians.
``(2) 5-year projects.--
``(A) In general.--Each Native American business
center that receives assistance under paragraph (1)(A)
shall conduct a 5-year project that offers culturally
tailored business development assistance in the form
of--
``(i) financial education, including
training and counseling in--
``(I) applying for and securing
business credit and investment capital;
``(II) preparing and presenting
financial statements; and
``(III) managing cash flow and
other financial operations of a
business concern;
``(ii) management education, including
training and counseling in planning,
organizing, staffing, directing, and
controlling each major activity and function of
a small business concern; and
``(iii) marketing education, including
training and counseling in--
``(I) identifying and segmenting
domestic and international market
opportunities;
``(II) preparing and executing
marketing plans;
``(III) developing pricing
strategies;
``(IV) locating contract
opportunities;
``(V) negotiating contracts; and
``(VI) utilizing varying public
relations and advertising techniques.
``(B) Business development assistance recipients.--
The business development assistance under subparagraph
(A) shall be offered to prospective and current owners
of small business concerns that are owned by--
``(i) American Indians or tribal
governments, and located on or near tribal
lands;
``(ii) Alaska Natives or Alaska Native
corporations; or
``(iii) Native Hawaiians or Native Hawaiian
Organizations.
``(3) Form of federal financial assistance.--
``(A) Documentation.--
``(i) In general.--The financial assistance
to Native American business centers authorized
under this subsection may be made by grant,
contract, or cooperative agreement.
``(ii) Exception.--Financial assistance
under this subsection to Alaska Native
corporations or Native Hawaiian Organizations
may only be made by grant.
``(B) Payments.--
``(i) Timing.--Payments made under this
subsection may be disbursed in an annual lump
sum or in periodic installments, at the request
of the recipient.
``(ii) Advance.--The Administration may
disburse not more than 25 percent of the annual
amount of Federal financial assistance awarded
to a Native American small business center
after notice of the award has been issued.
``(iii) No matching requirement.--The
Administration shall not require a grant
recipient to match grant funding received under
this subsection with non-Federal resources as a
condition of receiving the grant.
``(4) Contract and cooperative agreement authority.--A
Native American business center may enter into a contract or
cooperative agreement with a Federal department or agency to
provide specific assistance to Native American and other
underserved small business concerns located on or near tribal
lands, to the extent that such contract or cooperative
agreement is consistent with the terms of any assistance
received by the Native American business center from the
Administration.
``(5) Application process.--
``(A) Submission of a 5-year plan.--Each applicant
for assistance under paragraph (1) shall submit a 5-
year plan to the Administration on proposed assistance
and training activities.
``(B) Criteria.--
``(i) In general.--The Administration shall
evaluate and rank applicants in accordance with
predetermined selection criteria that shall be
stated in terms of relative importance.
``(ii) Public notice.--The criteria
required by this paragraph and their relative
importance shall be made publicly available,
within a reasonable time, and stated in each
solicitation for applications made by the
Administration.
``(iii) Considerations.--The criteria
required by this paragraph shall include--
``(I) the experience of the
applicant in conducting programs or
ongoing efforts designed to impart or
upgrade the business skills of current
or potential owners of Native American
small business concerns;
``(II) the ability of the applicant
to commence a project within a minimum
amount of time;
``(III) the ability of the
applicant to provide quality training
and services to a significant number of
Native Americans;
``(IV) previous assistance from the
Administration to provide services in
Native American communities; and
``(V) the proposed location for the
Native American business center site,
with priority given based on the
proximity of the center to the
population being served and to achieve
a broad geographic dispersion of the
centers.
``(6) Program examination.--
``(A) In general.--Each Native American business
center established pursuant to this subsection shall
annually provide the Administration with an itemized
cost breakdown of actual expenditures incurred during
the preceding year.
``(B) Administration action.--Based on information
received under subparagraph (A), the Administration
shall--
``(i) develop and implement an annual
programmatic and financial examination of each
Native American business center assisted
pursuant to this subsection; and
``(ii) analyze the results of each
examination conducted under clause (i) to
determine the programmatic and financial
viability of each Native American business
center.
``(C) Conditions for continued funding.--In
determining whether to renew a grant, contract, or
cooperative agreement with a Native American business
center, the Administration--
``(i) shall consider the results of the
most recent examination of the center under
subparagraph (B), and, to a lesser extent,
previous examinations; and
``(ii) may withhold such renewal, if the
Administration determines that--
``(I) the center has failed to
provide adequate information required
to be provided under subparagraph (A),
or the information provided by the
center is inadequate; or
``(II) the center has failed to
provide adequate information required
to be provided by the center for
purposes of the report of the
Administration under subparagraph (E).
``(D) Continuing contract and cooperative agreement
authority.--
``(i) In general.--The authority of the
Administrator to enter into contracts or
cooperative agreements in accordance with this
subsection shall be in effect for each fiscal
year only to the extent and in the amounts as
are provided in advance in appropriations Acts.
``(ii) Renewal.--After the Administrator
has entered into a contract or cooperative
agreement with any Native American business
center under this subsection, it shall not
suspend, terminate, or fail to renew or extend
any such contract or cooperative agreement
unless the Administrator provides the center
with written notification setting forth the
reasons therefore and affords the center an
opportunity for a hearing, appeal, or other
administrative proceeding under chapter 5 of
title 5, United States Code.
``(E) Management report.--
``(i) In general.--The Administration shall
prepare and submit to the Committee on Small
Business and Entrepreneurship of the Senate and
the Committee on Small Business of the House of
Representatives an annual report on the
effectiveness of all projects conducted by
Native American business centers under this
subsection and any pilot programs administered
by the Office of Native American Affairs.
``(ii) Contents.--Each report submitted
under clause (i) shall include, with respect to
each Native American business center receiving
financial assistance under this subsection--
``(I) the number of individuals
receiving assistance from the Native
American business center;
``(II) the number of startup
business concerns created;
``(III) the number of existing
businesses seeking to expand
employment;
``(IV) jobs created or maintained,
on an annual basis, by Native American
small business concerns assisted by the
center since receiving funding under
this Act;
``(V) to the maximum extent
practicable, the capital investment and
loan financing utilized by emerging and
expanding businesses that were assisted
by a Native American business center;
and
``(VI) the most recent examination,
as required under subparagraph (B), and
the subsequent determination made by
the Administration under that
subparagraph.
``(7) Annual report.--Each entity receiving financial
assistance under this subsection shall annually report to the
Administration on the services provided with such financial
assistance, including--
``(A) the number of individuals assisted,
categorized by ethnicity;
``(B) the number of hours spent providing
counseling and training for those individuals;
``(C) the number of startup small business concerns
created or maintained;
``(D) the gross receipts of assisted small business
concerns;
``(E) the number of jobs created or maintained at
assisted small business concerns; and
``(F) the number of Native American jobs created or
maintained at assisted small business concerns.
``(8) Record retention.--
``(A) Applications.--The Administration shall
maintain a copy of each application submitted under
this subsection for not less than 7 years.
``(B) Annual reports.--The Administration shall
maintain copies of the information collected under
paragraph (6)(A) indefinitely.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 for each of the fiscal years 2008 through 2010,
to carry out the Native American Small Business Development Program,
authorized under subsection (c).''.
SEC. 333. PILOT PROGRAMS.
(a) Definitions.--In this section:
(1) Incorporation by reference.--The terms defined in
section 39(a) of the Small Business Act (as added by this
subtitle) have the same meanings as in that section 39(a) when
used in this section.
(2) Joint project.--The term ``joint project'' means the
combined resources and expertise of 2 or more distinct entities
at a physical location dedicated to assisting the Native
American community.
(b) Native American Development Grant Pilot Program.--
(1) Authorization.--
(A) In general.--There is established a 4-year
pilot program under which the Administration is
authorized to award Native American development grants
to provide culturally tailored business development
training and related services to Native Americans and
Native American small business concerns.
(B) Eligible organizations.--The grants authorized
under subparagraph (A) may be awarded to--
(i) any small business development center;
or
(ii) any private, nonprofit organization
that--
(I) has members of an Indian tribe
comprising a majority of its board of
directors;
(II) is a Native Hawaiian
Organization; or
(III) is an Alaska Native
corporation.
(C) Amounts.--The Administration shall not award a
grant under this subsection in an amount which exceeds
$100,000 for each year of the project.
(D) Grant duration.--Each grant under this
subsection shall be awarded for not less than a 2-year
period and not more than a 4-year period.
(2) Conditions for participation.--Each entity desiring a
grant under this subsection shall submit an application to the
Administration that contains--
(A) a certification that the applicant--
(i) is a small business development center
or a private, nonprofit organization under
paragraph (1)(B);
(ii) employs an executive director or
program manager to manage the facility; and
(iii) agrees--
(I) to a site visit as part of the
final selection process;
(II) to an annual programmatic and
financial examination; and
(III) to the maximum extent
practicable, to remedy any problems
identified pursuant to that site visit
or examination;
(B) information demonstrating that the applicant
has the ability and resources to meet the needs,
including cultural needs, of the Native Americans to be
served by the grant;
(C) information relating to proposed assistance
that the grant will provide, including--
(i) the number of individuals to be
assisted; and
(ii) the number of hours of counseling,
training, and workshops to be provided;
(D) information demonstrating the effective
experience of the applicant in--
(i) conducting financial, management, and
marketing assistance programs designed to
impart or upgrade the business skills of
current or prospective Native American business
owners;
(ii) providing training and services to a
representative number of Native Americans;
(iii) using resource partners of the
Administration and other entities, including
universities, tribal governments, or tribal
colleges; and
(iv) the prudent management of finances and
staffing;
(E) the location where the applicant will provide
training and services to Native Americans; and
(F) a multiyear plan, corresponding to the length
of the grant, that describes--
(i) the number of Native Americans and
Native American small business concerns to be
served by the grant;
(ii) in the continental United States, the
number of Native Americans to be served by the
grant; and
(iii) the training and services to be
provided to a representative number of Native
Americans.
(3) Review of applications.--The Administration shall--
(A) evaluate and rank applicants under paragraph
(2) in accordance with predetermined selection criteria
that is stated in terms of relative importance;
(B) include such criteria in each solicitation
under this subsection and make such information
available to the public; and
(C) approve or disapprove each completed
application submitted under this subsection not later
than 60 days after the date of submission.
(4) Annual report.--Each recipient of a Native American
development grant under this subsection shall annually report
to the Administration on the impact of the grant funding,
including--
(A) the number of individuals assisted, categorized
by ethnicity;
(B) the number of hours spent providing counseling
and training for those individuals;
(C) the number of startup small business concerns
created or maintained with assistance from a Native
American business center;
(D) the gross receipts of assisted small business
concerns;
(E) the number of jobs created or maintained at
assisted small business concerns; and
(F) the number of Native American jobs created or
maintained at assisted small business concerns.
(5) Record retention.--
(A) Applications.--The Administration shall
maintain a copy of each application submitted under
this subsection for not less than 7 years.
(B) Annual reports.--The Administration shall
maintain copies of the information collected under
paragraph (4) indefinitely.
(c) American Indian Tribal Assistance Center Grant Pilot Program.--
(1) Authorization.--
(A) In general.--There is established a 4-year
pilot program, under which the Administration shall
award not less than 3 American Indian Tribal Assistance
Center grants to establish joint projects to provide
culturally tailored business development assistance to
prospective and current owners of small business
concerns located on or near tribal lands.
(B) Eligible organizations.--
(i) Class 1.--Not fewer than 1 grant shall
be awarded to a joint project performed by a
Native American business center, a Native
American business enterprise center, and a
small business development center.
(ii) Class 2.--Not fewer than 2 grants
shall be awarded to joint projects performed by
a Native American business center and a Native
American business enterprise center.
(C) Amounts.--The Administration shall not award a
grant under this subsection in an amount which exceeds
$200,000 for each year of the project.
(D) Grant duration.--Each grant under this
subsection shall be awarded for a 3-year period.
(2) Conditions for participation.--Each entity desiring a
grant under this subsection shall submit to the Administration
a joint application that contains--
(A) a certification that each participant of the
joint application--
(i) is either a Native American business
center, a Native American business enterprise
center, or a small business development center;
(ii) employs an executive director or
program manager to manage the center; and
(iii) as a condition of receiving an
American Indian Tribal Assistance Center grant,
agrees--
(I) to an annual programmatic and
financial examination; and
(II) to the maximum extent
practicable, to remedy any problems
identified pursuant to that
examination;
(B) information demonstrating an historic
commitment to providing assistance to Native
Americans--
(i) residing on or near tribal lands; or
(ii) operating a small business concern on
or near tribal lands;
(C) information demonstrating that each participant
of the joint application has the ability and resources
to meet the needs, including the cultural needs, of the
Native Americans to be served by the grant;
(D) information relating to proposed assistance
that the grant will provide, including--
(i) the number of individuals to be
assisted; and
(ii) the number of hours of counseling,
training, and workshops to be provided;
(E) information demonstrating the effective
experience of each participant of the joint application
in--
(i) conducting financial, management, and
marketing assistance programs, designed to
impart or upgrade the business skills of
current or prospective Native American business
owners; and
(ii) the prudent management of finances and
staffing; and
(F) a plan for the length of the grant, that
describes--
(i) the number of Native Americans and
Native American small business concerns to be
served by the grant; and
(ii) the training and services to be
provided.
(3) Review of applications.--The Administration shall--
(A) evaluate and rank applicants under paragraph
(2) in accordance with predetermined selection criteria
that is stated in terms of relative importance;
(B) include such criteria in each solicitation
under this subsection and make such information
available to the public; and
(C) approve or disapprove each application
submitted under this subsection not later than 60 days
after the date of submission.
(4) Annual report.--Each recipient of an American Indian
tribal assistance center grant under this subsection shall
annually report to the Administration on the impact of the
grant funding received during the reporting year, and the
cumulative impact of the grant funding received since the
initiation of the grant, including--
(A) the number of individuals assisted, categorized
by ethnicity;
(B) the number of hours of counseling and training
provided and workshops conducted;
(C) the number of startup business concerns created
or maintained with assistance from a Native American
business center;
(D) the gross receipts of assisted small business
concerns;
(E) the number of jobs created or maintained at
assisted small business concerns; and
(F) the number of Native American jobs created or
maintained at assisted small business concerns.
(5) Record retention.--
(A) Applications.--The Administration shall
maintain a copy of each application submitted under
this subsection for not less than 7 years.
(B) Annual reports.--The Administration shall
maintain copies of the information collected under
paragraph (4) indefinitely.
(d) Authorization of Appropriations.--There are authorized to be
appropriated--
(1) $1,000,000 for each of fiscal years 2008 through 2010,
to carry out the Native American Development Grant Pilot
Program, authorized under subsection (b); and
(2) $1,000,000 for each of fiscal years 2008 through 2010,
to carry out the American Indian Tribal Assistance Center Grant
Pilot Program, authorized under subsection (c).
Subtitle E--National Small Business Regulatory Assistance
SEC. 341. SHORT TITLE.
This subtitle may be cited as the ``National Small Business
Regulatory Assistance Act of 2008''.
SEC. 342. PURPOSE.
The purpose of this subtitle is to establish a 4-year pilot program
to--
(1) provide confidential assistance to small business
concerns;
(2) provide small business concerns with the information
necessary to improve their rate of compliance with Federal and
State regulations derived from Federal law;
(3) create a partnership among Federal agencies to increase
outreach efforts to small business concerns with respect to
regulatory compliance;
(4) provide a mechanism for unbiased feedback to Federal
agencies on the regulatory environment for small business
concerns; and
(5) expand the services delivered by the small business
development centers under section 21(c)(3)(H) of the Small
Business Act to improve access to programs to assist small
business concerns with regulatory compliance.
SEC. 343. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.
(a) Definitions.--In this section:
(1) Association.--The term ``association'' means the
association established pursuant to section 21(a)(3)(A) of the
Small Business Act (15 U.S.C. 648(a)(3)(A)) representing a
majority of small business development centers.
(2) Participating small business development center.--The
term ``participating small business development center'' means
a small business development center participating in the pilot
program established under this subtitle.
(3) Regulatory compliance assistance.--The term
``regulatory compliance assistance'' means assistance provided
by a small business development center to a small business
concern to assist and facilitate the concern in complying with
Federal and State regulatory requirements derived from Federal
law.
(4) Small business development center.--The term ``small
business development center'' means a small business
development center described in section 21 of the Small
Business Act (15 U.S.C. 648).
(5) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, American Samoa, and Guam.
(b) Authority.--In accordance with this section, the Administrator
shall establish a pilot program to provide regulatory compliance
assistance to small business concerns through participating small
business development centers.
(c) Small Business Development Centers.--
(1) In general.--In carrying out the pilot program
established under this section, the Administrator shall enter
into arrangements with participating small business development
centers under which such centers shall--
(A) provide access to information and resources,
including current Federal and State nonpunitive
compliance and technical assistance programs similar to
those established under section 507 of the Clean Air
Act Amendments of 1990 (42 U.S.C. 7661f);
(B) conduct training and educational activities;
(C) offer confidential, free of charge, one-on-one,
in-depth counseling to the owners and operators of
small business concerns regarding compliance with
Federal and State regulations derived from Federal law,
provided that such counseling is not considered to be
the practice of law in a State in which a small
business development center is located or in which such
counseling is conducted;
(D) provide technical assistance;
(E) give referrals to experts and other providers
of compliance assistance who meet such standards for
educational, technical, and professional competency as
are established by the Administrator; and
(F) form partnerships with Federal compliance
programs.
(2) Reports.--Each participating small business development
center shall transmit to the Administrator and the Chief
Counsel for Advocacy of the Administration, as the
Administrator may direct, a quarterly report that includes--
(A) a summary of the regulatory compliance
assistance provided by the center under the pilot
program;
(B) the number of small business concerns assisted
under the pilot program; and
(C) for every fourth report, any regulatory
compliance information based on Federal law that a
Federal or State agency has provided to the center
during the preceding year and requested that it be
disseminated to small business concerns.
(d) Eligibility.--A small business development center shall be
eligible to receive assistance under the pilot program established
under this section only if such center is accredited under section
21(k)(2) of the Small Business Act (15 U.S.C. 648(k)(2)).
(e) Selection of Participating Small Business Development
Centers.--
(1) Groupings.--
(A) Consultation.--The Administrator shall select
the small business development center programs of 2
States from each of the groups of States described in
subparagraph (B) to participate in the pilot program
established under this section.
(B) Groups.--The groups described in this
subparagraph as follows:
(i) Group 1.--Group 1 shall consist of
Maine, Massachusetts, New Hampshire,
Connecticut, Vermont, and Rhode Island.
(ii) Group 2.--Group 2 shall consist of New
York, New Jersey, Puerto Rico, and the Virgin
Islands.
(iii) Group 3.--Group 3 shall consist of
Pennsylvania, Maryland, West Virginia,
Virginia, the District of Columbia, and
Delaware.
(iv) Group 4.--Group 4 shall consist of
Georgia, Alabama, North Carolina, South
Carolina, Mississippi, Florida, Kentucky, and
Tennessee.
(v) Group 5.--Group 5 shall consist of
Illinois, Ohio, Michigan, Indiana, Wisconsin,
and Minnesota.
(vi) Group 6.--Group 6 shall consist of
Texas, New Mexico, Arkansas, Oklahoma, and
Louisiana.
(vii) Group 7.--Group 7 shall consist of
Missouri, Iowa, Nebraska, and Kansas.
(viii) Group 8.--Group 8 shall consist of
Colorado, Wyoming, North Dakota, South Dakota,
Montana, and Utah.
(ix) Group 9.--Group 9 shall consist of
California, Guam, American Samoa, Hawaii,
Nevada, and Arizona.
(x) Group 10.--Group 10 shall consist of
Washington, Alaska, Idaho, and Oregon.
(C) Coordination to avoid duplication with other
programs.--In selecting small business development
center programs under this paragraph, the Administrator
shall give a preference to any such program that has a
plan for consulting with Federal and State agencies to
ensure that any assistance provided under this section
is not duplicated by a Federal or State program.
(2) Deadline for selection.--The Administrator shall make
selections under this subsection not later than 6 months after
the date of publication of final regulations under section 344.
(f) Matching Requirement.--Subparagraphs (A) and (B) of section
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to
assistance made available under the pilot program established under
this section.
(g) Grant Amounts.--Each State program selected to receive a grant
under subsection (e) shall be eligible to receive a grant in an amount
equal to--
(1) not less than $150,000 per fiscal year; and
(2) not more than $300,000 per fiscal year.
(h) Evaluation and Report.--The Comptroller General of the United
States shall--
(1) not later than 30 months after the date of disbursement
of the first grant under the pilot program established under
this section, initiate an evaluation of the pilot program; and
(2) not later than 6 months after the date of the
initiation of the evaluation under paragraph (1), transmit to
the Administrator, the Chief Counsel for Advocacy, the
Committee on Small Business and Entrepreneurship of the Senate,
and the Committee on Small Business of the House of
Representatives, a report containing--
(A) the results of the evaluation; and
(B) any recommendations as to whether the pilot
program, with or without modification, should be
extended to include the participation of all small
business development centers.
(i) Posting of Information.--Not later than 90 days after the date
of enactment of this Act, the Administrator shall post on the website
of the Administration and publish in the Federal Register a guidance
document describing the requirements of an application for assistance
under this section.
(j) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section--
(A) $5,000,000 for the first fiscal year beginning
after the date of enactment of this Act; and
(B) $5,000,000 for each of the 3 fiscal years
following the fiscal year described in subparagraph
(A).
(2) Limitation on use of other funds.--The Administrator
may carry out the pilot program established under this section
only with amounts appropriated in advance specifically to carry
out this section.
(k) Termination.--The Small Business Regulatory Assistance Pilot
Program established under this section shall terminate 4 years after
the date of disbursement of the first grant under the pilot program.
SEC. 344. RULEMAKING.
After providing notice and an opportunity for comment, and after
consulting with the association (but not later than 270 days after the
date of enactment of this Act), the Administrator shall promulgate
final regulations to carry out this subtitle, including regulations
that establish--
(1) priorities for the types of assistance to be provided
under the pilot program established under this subtitle;
(2) standards relating to educational, technical, and
support services to be provided by participating small business
development centers;
(3) standards relating to any national service delivery and
support function to be provided by the association under the
pilot program;
(4) standards relating to any work plan that the
Administrator may require a participating small business
development center to develop; and
(5) standards relating to the educational, technical, and
professional competency of any expert or other assistance
provider to whom a small business concern may be referred for
compliance assistance under the pilot program.
Subtitle F--Other Provisions
SEC. 351. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT PROGRAM.
(a) Definitions.--In this section--
(1) the terms ``Alaska Native-serving institution'' and
``Native Hawaiian-serving institution'' have the meanings given
those terms in section 317 of the Higher Education Act of 1965
(20 U.S.C. 1059d);
(2) the term ``Hispanic serving institution'' has the
meaning given the term in section 502 of the Higher Education
Act of 1965 (20 U.S.C. 1101a);
(3) the term ``historically Black college and university''
has the meaning given the term ``part B institution'' in
section 322 of the Higher Education Act of 1965 (20 U.S.C.
1061);
(4) the term ``small business development center'' has the
same meaning as in section 21 of the Small Business Act (15
U.S.C. 648); and
(5) the term ``Tribal College'' has the meaning given the
term ``tribally controlled college or university'' in section 2
of the Tribally Controlled College or University Assistance Act
of 1978 (25 U.S.C. 1801).
(b) Minority Entrepreneurship and Innovation Grants.--
(1) In general.--The Administrator shall make grants to
historically Black colleges and universities, Tribal Colleges,
Hispanic serving institutions, Alaska Native-serving
institutions, and Native Hawaiian-serving institutions, or to
any entity formed by a combination of such institutions--
(A) to assist in establishing an entrepreneurship
curriculum for undergraduate or graduate studies; and
(B) for placement of small business development
centers on the physical campus of the institution.
(2) Curriculum requirement.--An institution of higher
education receiving a grant under this subsection shall develop
a curriculum that includes training in various skill sets
needed by successful entrepreneurs, including--
(A) business management and marketing, financial
management and accounting, market analysis and
competitive analysis, innovation and strategic
planning; and
(B) additional entrepreneurial skill sets specific
to the needs of the student population and the
surrounding community, as determined by the
institution.
(3) Small business development center requirement.--Each
institution receiving a grant under this subsection shall open
a small business development center that--
(A) performs studies, research, and counseling
concerning the management, financing, and operation of
small business concerns;
(B) performs management training and technical
assistance regarding the participation of small
business concerns in international markets, export
promotion and technology transfer, and the delivery or
distribution of such services and information;
(C) offers referral services for entrepreneurs and
small business concerns to business development,
financing, and legal experts; and
(D) promotes market-specific innovation, niche
marketing, capacity building, international trade, and
strategic planning as keys to long-term growth for its
small business concern and entrepreneur clients.
(4) Grant limitations.--A grant under this subsection--
(A) may not exceed $500,000 for any fiscal year for
any 1 institution of higher education;
(B) may not be used for any purpose other than
those associated with the direct costs incurred to
develop and implement a curriculum that fosters
entrepreneurship and the costs incurred to organize and
run a small business development center on the grounds
of the institution; and
(C) may not be used for building expenses,
administrative travel budgets, or other expenses not
directly related to the implementation of the
curriculum or activities authorized by this section.
(5) Exception from small business act requirement.--
Subparagraphs (A) and (B) of section 21(a)(4) of the Small
Business Act (15 U.S.C. 648(a)(4)) do not apply to assistance
made available under this subsection.
(6) Report.--Not later than November 1 of each year, the
Associate Administrator of Entrepreneurial Development of the
Administration shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives, a report evaluating
the award and use of grants under this subsection during the
preceding fiscal year, which shall include--
(A) a description of each entrepreneurship program
developed with grant funds, the date of the award of
such grant, and the number of participants in each such
program;
(B) the number of small business concerns assisted
by each small business development center established
with a grant under this subsection; and
(C) data regarding the economic impact of the small
business development center counseling provided under a
grant under this subsection.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000, to remain available
until expended, for each of fiscal years 2008 and 2010.
(d) Limitation on Use of Other Funds.--The Administrator shall
carry out this section only with amounts appropriated in advance
specifically to carry out this section.
SEC. 352. INSTITUTIONS OF HIGHER EDUCATION.
(a) In General.--Section 21(a)(1) of the Small Business Act (15
U.S.C. 648(a)(1)) is amended by striking ``: Provided, That'' and all
that follows through ``on such date.'' and inserting the following:
``On and after December 31, 2008, the Administration may only make a
grant under this paragraph to an applicant that is an institution of
higher education, as defined in section 101(a) of the Higher Education
Act of 1965 (20 U.S.C. 1001(a)) that is accredited (and not merely in
preaccreditation status) by a nationally recognized accrediting agency
or association, recognized by the Secretary of Education for such
purpose in accordance with section 496 of that Act (20 U.S.C. 1099b),
or to a women's business center operating pursuant to section 29 as a
small business development center, unless the applicant was receiving a
grant (including a contract or cooperative agreement) on December 31,
2008.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on December 31, 2008.
SEC. 353. HEALTH INSURANCE OPTIONS INFORMATION FOR SMALL BUSINESS
CONCERNS.
(a) Definitions.--In this section, the following definitions shall
apply:
(1) Association.--The term ``association'' means an
association established under section 21(a)(3)(A) of the Small
Business Act (15 U.S.C. 648(a)(3)(A)) representing a majority
of small business development centers.
(2) Participating small business development center.--The
term ``participating small business development center'' means
a small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648) that--
(A) is accredited under section 21(k)(2) of the
Small Business Act (15 U.S.C. 648(k)(2)); and
(B) receives a grant under the pilot program.
(3) Pilot program.--The term ``pilot program'' means the
small business health insurance information pilot program
established under this section.
(4) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, American
Samoa, and Guam.
(b) Small Business Health Insurance Information Pilot Program.--The
Administrator shall establish a pilot program to make grants to small
business development centers to provide neutral and objective
information and educational materials regarding health insurance
options, including coverage options within the small group market, to
small business concerns.
(c) Applications.--
(1) Posting of information.--Not later than 180 days after
the date of enactment of this Act, the Administrator shall post
on the website of the Administration and publish in the Federal
Register a guidance document describing--
(A) the requirements of an application for a grant
under the pilot program; and
(B) the types of informational and educational
materials regarding health insurance options to be
created under the pilot program, including by
referencing materials and resources developed by the
National Association of Insurance Commissioners, the
Kaiser Family Foundation, and the Healthcare Leadership
Council.
(2) Submission.--A small business development center
desiring a grant under the pilot program shall submit an
application at such time, in such manner, and accompanied by
such information as the Administrator may reasonably require.
(d) Selection of Participating Small Business Development
Centers.--
(1) In general.--The Administrator shall select not more
than 20 small business development centers to receive a grant
under the pilot program.
(2) Selection of programs.--In selecting small business
development centers under paragraph (1), the Administrator may
not select--
(A) more than 2 programs from each of the groups of
States described in paragraph (3); and
(B) more than 1 program in any State.
(3) Groupings.--The groups of States described in this
paragraph are the following:
(A) Group 1.--Group 1 shall consist of Maine,
Massachusetts, New Hampshire, Connecticut, Vermont, and
Rhode Island.
(B) Group 2.--Group 2 shall consist of New York,
New Jersey, Puerto Rico, and the Virgin Islands.
(C) Group 3.--Group 3 shall consist of
Pennsylvania, Maryland, West Virginia, Virginia, the
District of Columbia, and Delaware.
(D) Group 4.--Group 4 shall consist of Georgia,
Alabama, North Carolina, South Carolina, Mississippi,
Florida, Kentucky, and Tennessee.
(E) Group 5.--Group 5 shall consist of Illinois,
Ohio, Michigan, Indiana, Wisconsin, and Minnesota.
(F) Group 6.--Group 6 shall consist of Texas, New
Mexico, Arkansas, Oklahoma, and Louisiana.
(G) Group 7.--Group 7 shall consist of Missouri,
Iowa, Nebraska, and Kansas.
(H) Group 8.--Group 8 shall consist of Colorado,
Wyoming, North Dakota, South Dakota, Montana, and Utah.
(I) Group 9.--Group 9 shall consist of California,
Guam, American Samoa, Hawaii, Nevada, and Arizona.
(J) Group 10.--Group 10 shall consist of
Washington, Alaska, Idaho, and Oregon.
(4) Deadline for selection.--The Administrator shall make
selections under this subsection not later than 6 months after
the later of the date on which the information described in
subsection (c)(1) is posted on the website of the
Administration and the date on which the information described
in subsection (c)(1) is published in the Federal Register.
(e) Use of Funds.--
(1) In general.--A participating small business development
center shall use funds provided under the pilot program to--
(A) create and distribute informational materials;
and
(B) conduct training and educational activities.
(2) Content of materials.--
(A) In general.--In creating materials under the
pilot program, a participating small business
development center shall evaluate and incorporate
relevant portions of existing informational materials
regarding health insurance options, including materials
and resources developed by the National Association of
Insurance Commissioners, the Kaiser Family Foundation,
and the Healthcare Leadership Council.
(B) Health insurance options.--In incorporating
information regarding health insurance options under
subparagraph (A), a participating small business
development center shall provide neutral and objective
information regarding health insurance options in the
geographic area served by the participating small
business development center, including traditional
employer sponsored health insurance for the group
insurance market, such as the health insurance options
defined in section 2791 of the Public Health Services
Act (42 U.S.C. 300gg-91) or section 125 of the Internal
Revenue Code of 1986, and Federal and State health
insurance programs.
(f) Grant Amounts.--Each participating small business development
center program shall receive a grant in an amount equal to--
(1) not less than $150,000 per fiscal year; and
(2) not more than $300,000 per fiscal year.
(g) Matching Requirement.--Subparagraphs (A) and (B) of section
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to
assistance made available under the pilot program.
(h) Reports.--Each participating small business development center
shall transmit to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the House of
Representatives, a quarterly report that includes--
(1) a summary of the information and educational materials
regarding health insurance options provided by the
participating small business development center under the pilot
program; and
(2) the number of small business concerns assisted under
the pilot program.
(i) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section--
(A) $5,000,000 for the first fiscal year beginning
after the date of enactment of this Act; and
(B) $5,000,000 for each of the 3 fiscal years
following the fiscal year described in subparagraph
(A).
(2) Limitation on use of other funds.--The Administrator
may carry out the pilot program only with amounts appropriated
in advance specifically to carry out this section.
SEC. 354. NATIONAL SMALL BUSINESS DEVELOPMENT CENTER ADVISORY BOARD.
Section 21(i)(1) of the Small Business Act (15 U.S.C. 648(i)(1)) is
amended by striking ``nine members'' and inserting ``10 members''.
SEC. 355. OFFICE OF NATIVE AMERICAN AFFAIRS PILOT PROGRAM.
(a) Definition.--In this section, the term ``Indian tribe'' means
any band, nation, or organized group or community of Indians located in
the contiguous United States, and the Metlakatla Indian Community,
whose members are recognized as eligible for the services provided to
Indians by the Secretary of the Interior because of their status as
Indians.
(b) Authorization.--The Office of Native American Affairs of the
Administration may conduct a pilot program--
(1) to develop and publish a self-assessment tool for
Indian tribes that will allow such tribes to evaluate and
implement best practices for economic development; and
(2) to provide assistance to Indian tribes, through the
Inter-Agency Working Group, in identifying and implementing
economic development opportunities available from the Federal
Government and private enterprise, including--
(A) the Administration;
(B) the Department of Energy;
(C) the Environmental Protection Agency;
(D) the Department of Commerce;
(E) the Federal Communications Commission;
(F) the Department of Justice;
(G) the Department of Labor;
(H) the Office of National Drug Control Policy; and
(I) the Department of Agriculture.
(c) Termination of Program.--The authority to conduct a pilot
program under this section shall terminate on September 30, 2010.
(d) Report.--Not later than September 30, 2010, the Office of
Native American Affairs shall submit a report to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives regarding the effectiveness of
the self-assessment tool developed under subsection (b)(1).
SEC. 356. PRIVACY REQUIREMENTS FOR SCORE CHAPTERS.
Section 8 of the Small Business Act (15 U.S.C. 637) is amended by
inserting after subsection (b) the following
``(c) Privacy Requirements.--
``(1) In general.--A chapter of the SCORE program
authorized by subsection (b)(1) or an agent of such a chapter
may not disclose the name, address, or telephone number of any
individual or small business concern receiving assistance from
that chapter or agent without the consent of such individual or
small business concern, unless--
``(A) the Administrator is ordered to make such a
disclosure by a court in any civil or criminal
enforcement action initiated by a Federal or State
agency; or
``(B) the Administrator considers such a disclosure
to be necessary for the purpose of conducting a
financial audit of a chapter of the SCORE program
authorized by subsection (b)(1), but a disclosure under
this subparagraph shall be limited to the information
necessary for such audit.
``(2) Administrator use of information.--This subsection
shall not--
``(A) restrict Administrator access to program
activity data; or
``(B) prevent the Administrator from using client
information to conduct client surveys.
``(3) Regulations.--
``(A) In general.--The Administrator shall issue
regulations to establish standards--
``(i) for disclosures with respect to
financial audits under paragraph (1)(B); and
``(ii) for client surveys under paragraph
(2)(B), including standards for oversight of
such surveys and for dissemination and use of
client information.
``(B) Maximum privacy protection.--Regulations
under this paragraph shall, to the extent practicable,
provide for the maximum amount of privacy protection.
``(C) Inspector general.--Until the effective date
of regulations under this paragraph, any client survey
and the use of such information shall be approved by
the Inspector General who shall include such approval
in the semi-annual report of the Inspector General.''.
SEC. 357. NATIONAL SMALL BUSINESS SUMMIT.
(a) In General.--Not later than December 31, 2010, the President
shall convene a National Small Business Summit to examine the present
conditions and future of the community of small business concerns in
the United States. The summit shall include owners of small business
concerns, representatives of small business groups, labor, academia,
Federal, State, and tribal government, Federal research and development
agencies, and nonprofit policy groups concerned with the issues of
small business concerns.
(b) Report.--Not later than 90 days after the date of the
conclusion of the summit convened under subsection (a), the President
shall issue a report on the results of the summit. The report shall
identify key challenges and recommendations for promoting
entrepreneurship and the growth of small business concerns.
SEC. 358. SCORE PROGRAM.
(a) In General.--Section 8(b)(1)(B) of the Small Business Act (15
U.S.C. 637(b)(1)(B)) is amended by striking ``a Service Corps of
Retired Executives (SCORE)'' and inserting ``the SCORE''.
(b) Technical and Conforming Amendments.--
(1) In general.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended--
(A) in section 7(m)(3)(A)(i)(VIII), by striking
``Service Corps of Retired Executives'' and inserting
``SCORE''; and
(B) in section 33(b)(2), by striking ``Service
Corps of Retired Executives'' and inserting ``SCORE''.
(2) Other law.--Section 337(d)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6307(d)(2)) is amended by striking
``Service Corps of Retired Executives (SCORE)'' and inserting
``SCORE''.
(c) References.--Any reference to the Service Corps of Retired
Executives established under section 8(b)(1)(B) of the Small Business
Act (15 U.S.C. 637(b)(1)(B)), as in effect on the day before the date
of enactment of this Act, in any law, rule, regulation, certificate,
directive, instruction, or other official paper shall be considered to
refer to the SCORE established under section 8(b)(1)(B) of the Small
Business Act, as amended by this Act.
TITLE IV--LENDER OVERSIGHT
SEC. 401. FINDINGS.
Congress finds the following:
(1) Recent reports by the Government Accountability Office
have recommended that the Small Business Administration develop
better measurements and methods for measuring the performance
of lending programs and the effectiveness of lender oversight.
(2) A July 2007 report by the Government Accountability
Office entitled ``Small Business Administration: Additional
Measures Needed to Assess 7(a) Loan Program's Performance''
found the following:
(A) Determining the success of the loan programs
under section 7(a) of the Small Business Act (15 U.S.C.
636(a)) ``is difficult as the performance measures show
only outputs--the number of loans provided--and not
outcomes, or the fate of the businesses borrowing with
the guarantee.''.
(B) ``The current measures do not indicate how well
the agency is meeting its strategic goal of helping
small businesses.''.
(C) ``To better ensure that the 7(a) program is
meeting its mission responsibility of helping small
firms succeed through guaranteed loans, we recommend
that the SBA administrator complete and expand the
SBA's current work on evaluating the program's
performance measures. As part of that effort, at a
minimum, the SBA should further utilize the loan
performance information it already collects, including
but not limited to defaults, prepayments, and number of
loans in good standing, to better report how small
businesses fare after they participate in the 7(a)
program.''.
(3) A June 2004 report by the Government Accountability
Office entitled ``Small Business Administration: New Services
for Lender Oversight Reflect Some Best Practices but Strategy
for Use Lags Behind'' found that ``Best practices dictate the
need for a clear and transparent understanding of how a risk
management service and the tools it provides will be used.''.
SEC. 402. DEFINITIONS.
In this title--
(1) the term ``base year'' means the year in which a
covered loan recipient receives a loan under section 7(a) of
the Small Business Act (15 U.S.C. 636(a)) or the 504 Loan
Program;
(2) the term ``covered lender'' means--
(A) a lender participating in the guarantee loan
program under section 7(a) of the Small Business Act
(15 U.S.C. 636(a)); and
(B) a State or local development company
participating in the 504 Loan Program;
(3) the term ``covered loan recipient'' means a person that
receives a loan under section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) or the 504 Loan Program;
(4) the term ``economic performance evaluation
measurements'' means the economic performance evaluation
measurements established under section 407(a); and
(5) the term ``portfolio quality evaluation standards''
means the portfolio quality evaluation standards established
under section 404(a)(1).
SEC. 403. AUTHORITY.
Section 5 of the Small Business Act (15 U.S.C. 634) is amended--
(1) in subsection (b)(14), by striking ``other lender
oversight activities'' and inserting ``used to improve
portfolio performance and lender oversight through technology
and software programs designed to increase program loan
quality, management, accuracy, and efficiency and program
underwriting accuracy and efficiency''; and
(2) by adding at the end the following:
``(i) In establishing lender oversight review fees described in
subsection (b)(14), the Administrator shall follow cost containment and
cost control best practices that ensure that such fees are reasonable
and do not become burdensome or excessive.''.
SEC. 404. PORTFOLIO QUALITY EVALUATION STANDARDS.
(a) Standards.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall develop and
publish in the Federal Register portfolio quality evaluation
standards for covered lenders, which shall include portfolio
quality criteria, including--
(A) a liquidation rate;
(B) a currency rate;
(C) a recovery rate;
(D) a delinquency rate; and
(E) other portfolio risk indicators.
(2) Use.--The Administration shall use the portfolio
quality evaluation standards--
(A) to determine the portfolio quality of a covered
lender, in comparison to the portfolio quality of all
covered lenders; and
(B) for conducting lender oversight of covered
lenders.
(b) Implementation.--The Administrator shall--
(1) rank and determine a separate score for each covered
lender, on each of the portfolio quality evaluation standards;
(2) combine the portfolio quality rankings described in
paragraph (1) to establish the overall lender portfolio quality
score for each covered lender, based on the compliance of that
covered lender with the portfolio quality evaluation standards;
(3) provide a covered lender access to--
(A) the score of that covered lender for each of
the portfolio quality evaluation standards; and
(B) the overall portfolio quality score for that
covered lender; and
(4) provide a written explanation of the factors affecting
the score described in paragraph (3)(A) for a covered lender to
that covered lender.
(c) Quarterly Evaluations.--Not less frequently than once each
quarter, the Administrator shall evaluate each covered lender to
determine whether--
(1) there has been a statistically significant adverse
change in the criteria evaluated under the portfolio quality
evaluation standards relating to a covered lender; and
(2) the portfolio of that covered lender has a higher
concentration of loans made to businesses in a specific North
American Industry Classification System code (or any successor
thereto) than is typical for businesses in that code, as
determined by the Administrator.
(d) Additional Onsite Review.--
(1) Deterioration in loan portfolio.--If the Administrator
determines that there is significant and sustained
statistically adverse change in the loan portfolio of a covered
lender, based on the quarterly evaluation of that covered
lender under subsection (c), the Administrator shall--
(A) determine the reason for such deterioration;
(B) determine if the deterioration should lead to
an onsite review of the loan portfolio of that covered
lender;
(C) taking into consideration the opinion of the
relevant district director of the Administration,
determine whether it is appropriate for the
Administrator to adjust the preferred lender or other
loan making status of that covered lender;
(D) document the decision by the Administrator
regarding whether to conduct an onsite review or adjust
the loan making status of that covered lender; and
(E) inform that covered lender of any statistically
adverse change in loan quality of the portfolio of that
covered lender.
(2) Adverse changes.--If the Administrator determines there
has been a statistically significant adverse change in the
criteria evaluated under the portfolio quality evaluation
standards relating to a covered lender, the Administrator shall
determine whether it is necessary to conduct an onsite review
of that covered lender.
(3) Scope of review.--Any onsite review of a covered lender
under this subsection shall focus on--
(A) the credit quality of the loans within the
portfolio of that covered lender;
(B) the soundness of the credit evaluation and
underwriting processes and procedures of that covered
lender;
(C) the adherence by that covered lender to the
policies and procedures of the Administration; and
(D) any other measures that the Administrator
determines appropriate.
(e) Defaults.--The Administrator shall provide to a covered lender
information relating to any indicator under the portfolio quality
evaluation standards that indicate an increased risk of default for
specific loans.
(f) Document Retention.--The Administrator shall maintain an
electronic copy of any document relating to any portfolio quality
evaluation or onsite review under this section (including documents
relating to any determination regarding whether to conduct such a
review).
(g) Data Collection.--The Administrator shall enter into a contract
with a fiscal and transfer agent of the Administration under which that
fiscal and transfer agent shall provide to the Administrator the data
necessary to conduct the quarterly evaluation of covered lenders using
the portfolio quality evaluation standards under this section.
SEC. 405. DEFAULT RATE.
(a) In General.--Using established industry standards for
calculating loan default rates, and not later than 1 year after the
date of enactment of this Act, and every year thereafter, the
Administrator shall calculate a loan default rate for--
(1) loans under section 7(a) of the Small Business Act (15
U.S.C. 636(a));
(2) loans under the 504 Loan Program; and
(3) specialty loan programs under section 7(a) of the Small
Business Act or the 504 Loan Program, including the Express
Loan Program under section 7(a)(31) of the Small Business Act
and the Export Working Capital Program under section 7(a)(14)
of the Small Business Act.
(b) Methodology.--Not later than 1 year after the date of enactment
of this Act, the Administrator shall publish in the Federal Register
the methodology the Administrator will use to calculate default rates
under subsection (a).
(c) Purpose.--The purpose of the default rates calculated under
subsection (a) is to provide a cumulative default rate for loans under
section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and loans
under the 504 Loan Program that may be compared directly to the default
rates of other commercial loans.
SEC. 406. COMPUTER MODELING.
(a) Transparency in Ranking Criteria.--The Administrator--
(1) shall provide each covered lender with the data,
factors, statistical methods, ranking criteria, indicators, and
other measures used to make the ranking described in section
404(b); and
(2) may not charge a fee for providing the information
described in paragraph (1).
(b) Failure To Provide.--In ranking a covered lender under section
404(b), the Administrator may not use any data, factor, statistical
method, ranking criteria, indicator, or other measure that the
Administrator has not provided to that covered lender.
(c) Contracts.--Before establishing or modifying any system or
mechanism for evaluating the making of loans, the accounting for loans,
the underwriting of loans, or otherwise overseeing loans made by
covered lenders, the Administrator shall consult with relevant covered
lenders.
SEC. 407. ECONOMIC PERFORMANCE EVALUATION MEASUREMENTS.
(a) Measurements.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall develop and publish in
the Federal Register economic performance evaluation measurements for
evaluating the economic performance and economic outcomes of each
covered loan recipient, which shall include--
(1) number of individuals employed by that covered loan
recipient;
(2) the annual sales receipts of that covered loan
recipient;
(3) an estimate of the total annual Federal income tax paid
by that covered loan recipient;
(4) whether the covered loan recipient prepaid the covered
loan;
(5) whether the covered loan recipient defaulted on the
covered loan;
(6) the number of businesses operated by covered loan
recipients that cease operations; and
(7) the number of covered loan recipients that establish a
new business relating to the business for which that covered
loan recipient received a loan under section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) or the 504 Loan Program.
(b) Collection of Information.--
(1) In general.--On and after the date that is 2 years
after the date of enactment of this Act, the Administrator
shall electronically collect, as part of the loan application
process, from the person applying for a loan under section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) or the 504 Loan
Program--
(A) the number of individuals employed by the
applicant;
(B) the annual sales receipts of the applicant for
the year before the date of the application; and
(C) an estimate of the total annual Federal income
tax paid by that covered loan recipient.
(2) Base year.--The Administrator shall use the information
collected under paragraph (1) to establish the base year
statistics for the applicant.
(3) Information compliance.--
(A) In general.--During the 12-year period
beginning on the date that a covered loan recipient
receives a loan under section 7(a) of the Small
Business Act or the 504 Loan Program, as the case may
be, the covered loan recipient shall provide to the
Administrator information relating to the economic
performance evaluation measurements upon requested.
(B) Frequency.--The Administrator shall request
information from a covered loan recipient under
subparagraph (A) not less frequently than once every 4
years.
(c) Reporting.--
(1) In general.--Not later than 6 years after the date of
enactment of this Act, and every 4 years thereafter, the
Administrator shall publish a report assessing the information
relating to the economic performance evaluation measurements
submitted by covered loan recipients during the period
described in paragraph (2), including an evaluation of the
aggregate changes, if any, in the economic performance
evaluation measurements since the relevant base years for such
covered loan recipients.
(2) Period.--The period described in this paragraph is--
(A) for the first report submitted under this
subsection, not shorter than the 4-year period before
the date of that report;
(B) for the second report submitted under this
subsection, not shorter than the 8-year period before
the date of that report; and
(C) for the third report submitted under this
subsection, and each report submitted thereafter, not
shorter than the 12-year period before the date of that
report.
SEC. 408. PRIVACY.
In collecting data and preparing reports under this title, the
Administrator shall ensure that the privacy and information of covered
loan recipients is protected.
SEC. 409. EXECUTIVE COMPENSATION.
Section 503 of the Small Business Investment Act of 1958 (15 U.S.C.
697) is amended by adding at the end the following:
``(j) Executive Compensation.--
``(1) In general.--Except as provided in paragraph (4), a
State or local development company shall have a written
contract with each executive or highly paid employee of that
development company relating to the employment of that
executive or highly paid employee, which shall include, for
that executive or employee, the amount of compensation,
benefits, and any transfer of anything of value to that
executive or highly paid employee, including any rental or
sale.
``(2) Approval by board of directors.--
``(A) In general.--A written contract described in
paragraph (1) shall be approved by the board of
directors of the State or local development company.
``(B) Evaluation.--In evaluating a contract
described in paragraph (1), the members of the board of
directors of a State or local development company
shall--
``(i) determine the fair market value of
the benefits received by an executive or highly
paid employee from that development company;
and
``(ii) evaluate the amount paid by other
State or local development companies and
commercial lenders for comparable services,
including, if a rental of property for that
executive or highly paid employee is part of
that contract, the amount of annual rent paid
locally for comparable property.
``(C) Distribution of evaluation.--The board of
directors of a State or local development company shall
ensure that the information described in subparagraph
(B) is made available to each member of that board of
directors before the date of the meeting at which the
board of directors will determine whether to approve
the relevant contract and include the information
described in subparagraph (B) in the minutes of that
meeting.
``(D) Participation.--An executive or highly paid
official, and any other party with personal interest in
a contract, shall not attend a meeting of the board of
directors to determine whether to approve the contract
with that executive or highly paid official, unless the
members of the board of directors request that
executive or highly paid official respond to questions.
``(E) Voting.--An executive or highly paid
official, and any other party with personal interest in
a contract, shall not be present during, and shall not
vote on, whether to approve the contract with that
executive or highly paid official.
``(3) Annual reports.--A State or local development company
shall report annually to the Administration regarding the terms
of each contract with each executive or highly paid official of
that development company.
``(4) Exception.--This subsection shall not apply to--
``(A) a small State or local development company;
``(B) a State or local development company that
makes a low number of loans under the 504 Loan Program;
or
``(C) a State or local development company
regulated by a State or local government.
``(5) Regulations.--The Administrator shall promulgate
regulations to carry out this subsection, including defining
the terms `executive', `highly paid', `small State or local
development company', and `low number of loans'.''.
SEC. 410. STUDY AND REPORT ON EXAMINATION AND REVIEW FEES.
(a) Study.--The Comptroller General of the United States shall
conduct a study of the Loan Guaranty Program under section 7(a) of the
Small Business Act to determine--
(1) the scope of lender oversight needed by the
Administration;
(2) what other entities regulate the lenders that
participate in that loan guaranty program, what activities are
being reviewed, and the scope of such reviews;
(3) how the amounts of examination and review fees are
determined by such other regulatory entities, who pays for such
fees, and how they compare with examination and review fees
proposed in regulations issued by the Administration on May 4,
2007;
(4) how examination and review fees factor into the risk-
adjusted return on capital (or ``RAROC'') ratings of lenders;
(5) what would be reasonable fees to be charged for
Administration lender oversight;
(6) whether Administration lender oversight functions can
be executed in conjunction with other lender reviews currently
required by other regulatory entities, including those that
review Federal banks, credit unions, or entities reviewed by
the Farm Credit Administration; and
(7) the impact of lender oversight fees proposed by the
Administration on lending to borrowers, including cost changes,
availability of credit, and increased or decreased lender
participation.
(b) Report.--The Comptroller General shall submit to Congress a
report on the results of the study required by subsection (a) not later
than 1 year after the date of enactment of this Act.
Calendar No. 720
110th CONGRESS
2d Session
S. 2920
_______________________________________________________________________
A BILL
To reauthorize and improve the financing and entrepreneurial
development programs of the Small Business Administration, and for
other purposes.
_______________________________________________________________________
April 28, 2008
Read the second time and placed on the calendar