[106th Congress Public Law 50]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ050.106]
[[Page 113 STAT. 233]]
Public Law 106-50
106th Congress
An Act
To <<NOTE: Aug. 17, 1999 - [H.R. 1568]>> provide technical, financial,
and procurement assistance to veteran owned small businesses, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Veterans Entre- preneurship
and Small Business Development Act of 1999. 15 USC 631
note.>> assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans Entrepreneurship and Small
Business Development Act of 1999''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--GENERAL PROVISIONS
Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.
TITLE II--VETERANS BUSINESS DEVELOPMENT
Sec. 201. Veterans business development in the Small Business
Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.
TITLE III--TECHNICAL ASSISTANCE
Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military
reservists' small businesses.
TITLE IV--FINANCIAL ASSISTANCE
Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Defense Economic Transition Loan Program.
Sec. 405. State development company program.
TITLE V--PROCUREMENT ASSISTANCE
Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.
TITLE VI--REPORTS AND DATA COLLECTION
Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Administrator's order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.
[[Page 113 STAT. 234]]
TITLE I--GENERAL PROVISIONS
SEC. 101. <<NOTE: 15 USC 657b note.>> FINDINGS.
Congress finds the following:
(1) Veterans of the United States Armed Forces have been and
continue to be vital to the small business enterprises of the
United States.
(2) In serving the United States, veterans often faced great
risks to preserve the American dream of freedom and prosperity.
(3) The United States has done too little to assist
veterans, particularly service-disabled veterans, in playing a
greater role in the economy of the United States by forming and
expanding small business enterprises.
(4) Medical advances and new medical technologies have made
it possible for service-disabled veterans to play a much more
active role in the formation and expansion of small business
enterprises in the United States.
(5) The United States must provide additional assistance and
support to veterans to better equip them to form and expand
small business enterprises, thereby enabling them to realize the
American dream that they fought to protect.
SEC. <<NOTE: 15 USC 657b note.>> 102. PURPOSE.
The purpose of this Act is to expand existing and establish new
assistance programs for veterans who own or operate small businesses.
This Act accomplishes this purpose by--
(1) expanding the eligibility for certain small business
assistance programs to include veterans;
(2) directing certain departments and agencies of the United
States to take actions that enhance small business assistance to
veterans; and
(3) establishing new institutions to provide small business
assistance to veterans or to support the institutions that
provide such assistance.
SEC. 103. DEFINITIONS.
(a) Small Business Act.--Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:
``(q) Definitions Relating to Veterans.--In this Act, the following
definitions apply:
``(1) Service-disabled veteran.--The term `service-disabled
veteran' means a veteran with a disability that is service-
connected (as defined in section 101(16) of title 38, United
States Code).
``(2) Small business concern owned and controlled by
service-disabled veterans.--The term `small business concern
owned and controlled by service-disabled veterans' means a small
business concern--
``(A) not less than 51 percent of which is owned by
one or more service-disabled veterans or, in the case of
any publicly owned business, not less than 51 percent of
the stock of which is owned by one or more service-
disabled veterans; and
``(B) the management and daily business operations
of which are controlled by one or more service-disabled
veterans or, in the case of a veteran with permanent and
[[Page 113 STAT. 235]]
severe disability, the spouse or permanent caregiver of
such veteran.
``(3) Small business concern owned and controlled by
veterans.--The term `small business concern owned and controlled
by veterans' means a small business concern--
``(A) not less than 51 percent of which is owned by
one or more veterans or, in the case of any publicly
owned business, not less than 51 percent of the stock of
which is owned by one or more veterans; and
``(B) the management and daily business operations
of which are controlled by one or more veterans.
``(4) Veteran.--The term `veteran' has the meaning given the
term in section 101(2) of title 38, United States Code.''.
(b) Applicability <<NOTE: 15 USC 657b note.>> to This Act.--In this
Act, the definitions contained in section 3(q) of the Small Business
Act, as added by this section, apply.
TITLE II--VETERANS BUSINESS DEVELOPMENT
SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS
ADMINISTRATION.
(a) In General.--Section 4(b)(1) of the Small Business Act (15
U.S.C. 633(b)(1)) is amended--
(1) in the fifth sentence, by striking ``four Associate
Administrators'' and inserting ``five Associate
Administrators''; and
(2) by inserting after the fifth sentence the following:
``One such Associate Administrator shall be the Associate
Administrator for Veterans Business Development, who shall
administer the Office of Veterans Business Development
established under section 32.''.
(b) Office of Veterans Business Development; Associate
Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section <<NOTE: 15 USC 631 note.>> 32
as section 34; and
(2) by inserting after section 31 the following:
``SEC. 32. <<NOTE: 15 USC 657b.>> VETERANS PROGRAMS.
``(a) Office <<NOTE: Establishment.>> of Veterans Business
Development.--There is established in the Administration an Office of
Veterans Business Development, which shall be administered by the
Associate Administrator for Veterans Business Development (in this
section referred to as the `Associate Administrator') appointed under
section 4(b)(1).
``(b) Associate Administrator for Veterans Business Development.--
The Associate Administrator--
``(1) shall be an appointee in the Senior Executive Service;
``(2) shall be responsible for the formulation, execution,
and promotion of policies and programs of the Administration
that provide assistance to small business concerns owned and
controlled by veterans and small business concerns owned and
controlled by service-disabled veterans. The Associate
Administrator shall act as an ombudsman for full consideration
of veterans in all programs of the Administration; and
[[Page 113 STAT. 236]]
``(3) shall report to and be responsible directly to the
Administrator.''.
SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting after section 32 (as added by this Act) the
following:
``SEC. <<NOTE: 15 USC 657c.>> 33. NATIONAL VETERANS BUSINESS DEVELOPMENT
CORPORATION.
``(a) Establishment.--There is established a federally chartered
corporation to be known as the National Veterans Business Development
Corporation (in this section referred to as the `Corporation') which
shall be incorporated under the laws of the District of Columbia and
which shall have the powers granted in this section.
``(b) Purposes of the Corporation.--The purposes of the
Corporation shall be--
``(1) to expand the provision of and improve access to
technical assistance regarding entrepreneurship for the Nation's
veterans; and
``(2) to assist veterans, including service-disabled
veterans, with the formation and expansion of small business
concerns by working with and organizing public and private
resources, including those of the Small Business Administration,
the Department of Veterans Affairs, the Department of Labor, the
Department of Commerce, the Department of Defense, the Service
Corps of Retired Executives (described in section 8(b)(1)(B) of
this Act), the Small Business Development Centers (described in
section 21 of this Act), and the business development staffs of
each department and agency of the United States.
``(c) Board of Directors.--
``(1) In general.--The management of the Corporation shall
be vested in a Board of Directors composed of nine voting
members and three nonvoting ex officio members.
``(2) Appointment <<NOTE: President.>> of voting members.--
The President shall, after considering recommendations which
shall be proposed by the Chairmen and Ranking Members of the
Committees on Small Business and the Committees on Veterans
Affairs of the House of Representatives and the Senate, appoint
United States citizens to be voting members of the Board, not
more than five of whom shall be members of the same political
party.
``(3) Ex officio members.--The Administrator of the Small
Business Administration, the Secretary of Defense, and the
Secretary of Veterans Affairs shall serve as the nonvoting ex
officio members of the Board of Directors.
``(4) Initial <<NOTE: Deadline.>> appointments.--The initial
members of the Board of Directors shall be appointed not later
than 60 days after the date of enactment of this Act.
``(5) Chairperson.--The members of the Board of Directors
appointed under paragraph (2) shall elect one such member to
serve as chairperson of the Board of Directors for a term of 2
years.
``(6) Terms of appointed members.--
[[Page 113 STAT. 237]]
``(A) In general.--Each member of the Board of
Directors appointed under paragraph (2) shall serve a
term of 6 years, except as provided in subparagraph (B).
``(B) Terms of initial appointees.--As designated by
the President at the time of appointment, of the members
first appointed--
``(i) three shall be for a term of 2 years;
and
``(ii) three shall be for a term of 4 years.
``(C) Unexpired terms.--Any member of the Board of
Directors appointed to fill a vacancy occurring before
the expiration of the term for which the member's
predecessor was appointed shall be appointed only for
the remainder of the term. A member may serve after the
expiration of that member's term until a successor has
taken office.
``(7) Vacancies.--Any vacancy on the Board of Directors
shall be filled in the manner in which the original appointment
was made. In the case of a vacancy in the office of the
Administrator of the Small Business Administration or the
Secretary of Veterans Affairs, and pending the appointment of a
successor, an acting appointee for such vacancy may serve as an
ex officio member.
``(8) Ineligibility for other offices.--No voting member of
the Board of Directors may be an officer or employee of the
United States while serving as a member of the Board of
Directors or during the 2-year period preceding such service.
``(9) Impartiality and nondiscrimination.--The Board of
Directors shall administer the affairs of the Corporation fairly
and impartially and without discrimination.
``(10) Obligations and expenses.--The Board of Directors
shall prescribe the manner in which the obligations of the
Corporation may be incurred and in which its expenses shall be
allowed and paid.
``(11) Quorum.--Five voting members of the Board of
Directors shall constitute a quorum, but a lesser number may
hold hearings.
``(d) Corporate <<NOTE: Effective date.>> Powers.--On October 1,
1999, the Corporation shall become a body corporate and as such shall
have the authority to do the following:
``(1) To adopt and use a corporate seal.
``(2) To have succession until dissolved by an Act of
Congress.
``(3) To make contracts or grants.
``(4) To sue and be sued, and to file and defend against
lawsuits in State or Federal court.
``(5) To appoint, through the actions of its Board of
Directors, officers and employees of the Corporation, to define
their duties and responsibilities, fix their compensations, and
to dismiss at will such officers or employees.
``(6) To prescribe, through the actions of its Board of
Directors, bylaws not inconsistent with Federal law and the law
of the State of incorporation, regulating the manner in which
its general business may be conducted and the manner in which
the privileges granted to it by law may be exercised.
``(7) To exercise, through the actions of its Board of
Directors or duly authorized officers, all powers specifically
granted
[[Page 113 STAT. 238]]
by the provisions of this section, and such incidental powers as
shall be necessary.
``(8) To solicit, receive, and disburse funds from private,
Federal, State and local organizations.
``(9) To accept and employ or dispose of in furtherance of
the purposes of this section any money or property, real,
personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise.
``(10) To accept voluntary and uncompensated services.
``(e) Corporate Funds.--
``(1) Deposit of funds.--The Board of Directors shall
deposit all funds of the Corporation in federally chartered and
insured depository institutions until such funds are disbursed
under paragraph (2).
``(2) Disbursement of funds.--Funds of the Corporation may
be disbursed only for purposes that are--
``(A) approved by the Board of Directors by a
recorded vote with a quorum present; and
``(B) in accordance with the purposes of the
Corporation as specified in subsection (b).
``(f ) Network <<NOTE: Establishment.>> of Information and
Assistance Centers.--In carrying out the purpose described in subsection
(b), the Corporation shall establish and maintain a network of
information and assistance centers for use by veterans and the public.
``(g) Annual <<NOTE: Deadline.>> Report.--On or before October 1 of
each year, the Board of Directors shall transmit a report to the
President and the Congress describing the activities and accomplishments
of the Corporation for the preceding year and the Corporation's findings
regarding the efforts of Federal, State and private organizations to
assist veterans in the formation and expansion of small business
concerns.
``(h) Assumption of <<NOTE: Effective date.>> Duties of Advisory
Committee.--On October 1, 2004, the Corporation established under this
section shall assume the duties, responsibilities, and authority of the
Advisory Committee on Veterans Affairs established under section 203 of
this Act.
``(i) Use of Mails.--The Corporation may use the United States mails
in the same manner and under the same conditions as the departments and
agencies of the United States.
``( j) Professional <<NOTE: Establishment.>> Certification Advisory
Board.--
``(1) In general.--Acting through the Board of Directors,
the Corporation shall establish a Professional Certification
Advisory Board to create uniform guidelines and standards for
the professional certification of members of the Armed Services
to aid in their efficient and orderly transition to civilian
occupations and professions and to remove potential barriers in
the areas of licensure and certification.
``(2) Membership.--The members of the Advisory Board shall
serve without compensation, shall meet in the District of
Columbia no less than quarterly, and shall be appointed by the
Board of Directors as follows:
``(A) Private sector members.--The Corporation shall
appoint not less than seven members for terms of 2 years
to represent private sector organizations and
associations, including the American Association of
Community Colleges, the Society for Human Resource
Managers, the Coalition
[[Page 113 STAT. 239]]
for Professional Certification, the Council on Licensure
and Enforcement, and the American Legion.
``(B) Public sector members.--The Corporation shall
invite public sector members to serve at the discretion
of their departments or agencies and shall--
``(i) encourage the participation of the Under
Secretary of Defense for Personnel and Readiness;
``(ii) encourage the participation of two
officers from each branch of the Armed Forces to
represent the Training Commands of their branch;
and
``(iii) seek the participation and guidance of
the Assistant Secretary of Labor for Veterans'
Employment and Training.
``(k) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to the Corporation to carry out
this section--
``(A) $2,000,000 for fiscal year 2000;
``(B) $4,000,000 for fiscal year 2001;
``(C) $4,000,000 for fiscal year 2002; and
``(D) $2,000,000 for fiscal year 2003.
``(2) Matching requirement.--
``(A) Fiscal year 2001.--The amount made available
to the Corporation for fiscal year 2001 may not exceed
twice the amount that the Corporation certifies that it
will provide for that fiscal year from sources other
than the Federal Government.
``(B) Subsequent fiscal years.--The amount made
available to the Corporation for fiscal year 2002 or
2003 may not exceed the amount that the Corporation
certifies that it will provide for that fiscal year from
sources other than the Federal Government.
``(3) Privatization.--The Corporation shall institute and
implement a plan to raise private funds and become a self-
sustaining corporation.''.
(b) GAO <<NOTE: Deadline. 15 USC 657c note.>> Report.--Not later
than 180 days after the last day of the second fiscal year beginning
after the date on which the initial members of the Board of Directors of
the National Veterans Business Development Corporation are appointed
under section 33(c) of the Small Business Act (as added by this
section), the Comptroller General of the United States shall evaluate
the effectiveness of the National Veterans Business Development
Corporation in carrying out the purposes under section 33(b) of the
Small Business Act (as added by this section), and submit to Congress a
report on the results of that evaluation.
SEC. 203. <<NOTE: Establishment. 15 USC 657b note.>> ADVISORY COMMITTEE
ON VETERANS BUSINESS AFFAIRS.
(a) In General.--There is established an advisory committee to be
known as the ``Advisory Committee on Veterans Business Affairs'' (in
this section referred to as the ``Committee''), which shall serve as an
independent source of advice and policy recommendations to--
(1) the Administrator of the Small Business Administration
(in this section referred to as the ``Administrator'');
(2) the Associate Administrator for Veterans Business
Development of the Small Business Administration;
(3) the Congress;
[[Page 113 STAT. 240]]
(4) the <<NOTE: President.>> President; and
(5) other United States policymakers.
(b) Membership.--
(1) In general.--The Committee shall be composed of 15
members, of whom--
(A) eight shall be veterans who are owners of small
business concerns (within the meaning of the term under
section 3 of the Small Business Act (15 U.S.C. 632));
and
(B) seven shall be representatives of veterans
organizations.
(2) Appointment.--
(A) In general.--The members of the Committee shall
be appointed by the Administrator in accordance with
this section.
(B) Initial appointments.--
Not <<NOTE: Deadline.>> later than 90 days after the
date of the enactment of this Act, the Administrator
shall appoint the initial members of the Committee.
(3) Political affiliation.--Not more than eight members of
the Committee shall be of the same political party as the
President.
(4) Prohibition on federal employment.--
(A) In general.--Except as provided in subparagraph
(B), no member of the Committee may serve as an officer
or employee of the United States.
(B) Exception.--A member of the Committee who
accepts a position as an officer or employee of the
United States after the date of the member's appointment
to the Committee may continue to serve on the Committee
for not more than 30 days after such acceptance.
(5) Term of service.--
(A) In general.--Subject to subparagraph (B), the
term of service of each member of the Committee shall be
3 years.
(B) Terms of initial appointees.--As designated by
the Administrator at the time of appointment, of the
members first appointed--
(i) six shall be appointed for a term of 4
years; and
(ii) five shall be appointed for a term of 5
years.
(6) Vacancies.--The Administrator shall fill any vacancies
on the membership of the Committee not later than 30 days after
the date on which such vacancy occurs.
(7) Chairperson.--
(A) In general.--The members of the Committee shall
elect one of the members to be Chairperson of the
Committee.
(B) Vacancies in office of chairperson.--Any vacancy
in the office of the Chairperson of the Committee shall
be filled by the Committee at the first meeting of the
Committee following the date on which the vacancy
occurs.
(c) Duties.--The duties of the Committee shall be the following:
(1) Review, coordinate, and monitor plans and programs
developed in the public and private sectors, that affect the
ability of small business concerns owned and controlled by
veterans to obtain capital and credit and to access markets.
[[Page 113 STAT. 241]]
(2) Promote the collection of business information and
survey data as they relate to veterans and small business
concerns owned and controlled by veterans.
(3) Monitor and promote plans, programs, and operations of
the departments and agencies of the United States that may
contribute to the formation and growth of small business
concerns owned and controlled by veterans.
(4) Develop and promote initiatives, policies, programs, and
plans designed to foster small business concerns owned and
controlled by veterans.
(5) In cooperation with the National Veterans Business
Development Corporation, develop a comprehensive plan, to be
updated annually, for joint public-private sector efforts to
facilitate growth and development of small business concerns
owned and controlled by veterans.
(d) Powers.--
(1) Hearings.--Subject to subsection (e), the Committee may
hold such hearings, sit and act at such times and places, take
such testimony, and receive such evidence as the Committee
considers advisable to carry out its duties.
(2) Information from federal agencies.--Upon request of the
Chairperson of the Committee, the head of any department or
agency of the United States shall furnish such information to
the Committee as the Committee considers to be necessary to
carry out its duties.
(3) Use of mails.--The Committee may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the United States.
(4) Gifts.--The Committee may accept, use, and dispose of
gifts or donations of services or property.
(e) Meetings.--
(1) In general.--The Committee shall meet, not less than
three times per year, at the call of the Chairperson or at the
request of the Administrator.
(2) Location.--Each meeting of the full Committee shall be
held at the headquarters of the Small Business Administration
located in Washington, District of Columbia. The Administrator
shall provide suitable meeting facilities and such
administrative support as may be necessary for each full meeting
of the Committee.
(3) Task groups.--The Committee may, from time-to-time,
establish temporary task groups as may be necessary in order to
carry out its duties.
(f ) Compensation and Expenses.--
(1) No compensation.--Members of the Committee shall serve
without compensation for their service to the Committee.
(2) Expenses.--The members of the Committee shall be
reimbursed for travel and subsistence expenses in accordance
with section 5703 of title 5, United States Code.
(g) Report.--Not <<NOTE: Deadline.>> later than 30 days after the
end of each fiscal year beginning after the date of the enactment of
this section, the Committee shall transmit to the Congress
and <<NOTE: President.>> the President a report describing the
activities of the Committee and any recommendations developed by the
Committee for the promotion of small business concerns owned and
controlled by veterans.
(h) Termination.--The Committee shall terminate its business on
September 30, 2004.
[[Page 113 STAT. 242]]
TITLE III--TECHNICAL ASSISTANCE
SEC. 301. <<NOTE: 15 USC 657b note.>> SCORE PROGRAM.
(a) In General.--The <<NOTE: Memorandums.>> Administrator of the
Small Business Administration shall enter into a memorandum of
understanding with the Service Core of Retired Executives (described in
section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B))
and in this section referred to as ``SCORE'') to provide for the
following:
(1) The <<NOTE: Appointment.>> appointment by SCORE in its
national office of an individual to act as National Veterans
Business Coordinator, whose duties shall relate exclusively to
veterans business matters, and who shall be responsible for the
establishment and administration of a program to coordinate
counseling and training regarding entrepreneurship to veterans
through the chapters of SCORE throughout the United States.
(2) <<NOTE: Tele- communications. Internet.>> The assistance
of SCORE in the establishing and maintaining a toll-free
telephone number and an Internet website to provide access for
veterans to information about the counseling and training
regarding entrepreneurship available to veterans through SCORE.
(3) The collection of statistics concerning services
provided by SCORE to veterans, including service-disabled
veterans, for inclusion in each annual report published by the
Administrator under section 4(b)(2)(B) of the Small Business Act
(15 U.S.C. 633(b)(2)(B)).
(b) Resources.--The Administrator shall provide to SCORE such
resources as the Administrator determines necessary for SCORE to carry
out the requirements of the memorandum of understanding specified in
paragraph (1).
SEC. 302. <<NOTE: 15 USC 657b note.>> ENTREPRENEURIAL ASSISTANCE.
Not <<NOTE: Deadline. Memorandums.>> later than 180 days after the
date of the enactment of this Act, the Secretary of Veterans Affairs,
the Administrator of the Small Business Administration, and the head of
the association formed pursuant to section 21(a)(3)(A) of the Small
Business Act (15 U.S.C. 648(a)(3)(A)) shall enter into a memorandum of
understanding with respect to entrepreneurial assistance to veterans,
including service-disabled veterans, through Small Business Development
Centers (described in section 21 of the Small Business Act (15 U.S.C.
648)) and facilities of the Department of Veterans Affairs. Such
assistance shall include the following:
(1) Conducting of studies and research, and the distribution
of information generated by such studies and research, on the
formation, management, financing, marketing, and operation of
small business concerns by veterans.
(2) Provision of training and counseling to veterans
concerning the formation, management, financing, marketing, and
operation of small business concerns.
(3) Provision of management and technical assistance to the
owners and operators of small business concerns regarding
international markets, the promotion of exports, and the
transfer of technology.
(4) Provision of assistance and information to veterans
regarding procurement opportunities with Federal, State, and
local agencies, especially such agencies funded in whole or in
part with Federal funds.
[[Page 113 STAT. 243]]
(5) <<NOTE: Establishment. Records. Internet.>> Establishment of
an information clearinghouse to collect and distribute
information, including by electronic means, on the assistance
programs of Federal, State, and local governments, and of the
private sector, including information on office locations, key
personnel, telephone numbers, mail and electronic addresses, and
contracting and subcontracting opportunities.
(6) Provision of Internet or other distance learning
academic instruction for veterans in business subjects,
including accounting, marketing, and business fundamentals.
(7) <<NOTE: Records.>> Compilation of a list of small
business concerns owned and controlled by service-disabled
veterans that provide products or services that could be
procured by the United States and delivery of such list to each
department and agency of the United States. Such list shall be
delivered in hard copy and electronic form and shall include the
name and address of each such small business concern and the
products or services that it provides.
SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY
RESERVISTS' SMALL BUSINESSES.
(a) In General.--Section 8 of the Small Business Act (15 U.S.C. 637)
is amended by adding at the end the following:
``(l) Management Assistance for Small Businesses Affected by
Military Operations.--The Administration shall utilize, as appropriate,
its entrepreneurial development and management assistance programs,
including programs involving State or private sector partners, to
provide business counseling and training to any small business concern
adversely affected by the deployment of units of the Armed Forces of the
United States in support of a period of military conflict (as defined in
section 7(n)(1)).''.
(b) Enhanced <<NOTE: 15 USC 637 note.>> Publicity During Operation
Allied Force.--For the duration of Operation Allied Force and for 120
days thereafter, the Administration shall enhance its publicity of the
availability of assistance provided pursuant to the amendment made by
this section, including information regarding the appropriate local
office at which affected small businesses may seek such assistance.
(c) Guidelines.--Not <<NOTE: Deadline.>> later than 30 days after
the date of the enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines as the
Administrator determines to be necessary to carry out this section and
the amendment made by this section.
TITLE IV--FINANCIAL ASSISTANCE
SEC. 401. GENERAL BUSINESS LOAN PROGRAM.
(a) Definition of Handicapped Individual.--Section 3(f ) of the
Small Business Act (15 U.S.C. 632(f )) is amended to read as follows:
``(f ) For purposes of section 7 of this Act, the term `handicapped
individual' means an individual--
``(1) who has a physical, mental, or emotional impairment,
defect, ailment, disease, or disability of a permanent nature
which in any way limits the selection of any type of employment
[[Page 113 STAT. 244]]
for which the person would otherwise be qualified or
qualifiable; or
``(2) who is a service-disabled veteran.''.
(b) Authorization To Make Loans.--Section 7(a)(10) of the Small
Business Act (15 U.S.C. 636(a)(10)) is amended--
(1) by inserting ``guaranteed'' after ``provide''; and
(2) by inserting ``, including service-disabled veterans,''
after ``handicapped individual''.
SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.
(a) Repayment Deferral for Active Duty Reservists.--
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by adding
at the end the following:
``(n) Repayment Deferred for Active Duty Reservists.--
``(1) Definitions.--In this subsection:
``(A) Eligible reservist.--The term `eligible
reservist' means a member of a reserve component of the
Armed Forces ordered to active duty during a period of
military conflict.
``(B) Essential employee.--The term `essential
employee' means an individual who is employed by a small
business concern and whose managerial or technical
expertise is critical to the successful day-to-day
operations of that small business concern.
``(C) Period of military conflict.--The term `period
of military conflict' means--
``(i) a period of war declared by the
Congress;
``(ii) a period of national emergency declared
by the Congress or by the President; or
``(iii) a period of a contingency operation,
as defined in section 101(a) of title 10, United
States Code.
``(D) Qualified borrower.--The term `qualified
borrower' means--
``(i) an individual who is an eligible
reservist and who received a direct loan under
subsection (a) or (b) before being ordered to
active duty; or
``(ii) a small business concern that received
a direct loan under subsection (a) or (b) before
an eligible reservist, who is an essential
employee, was ordered to active duty.
``(2) Deferral of direct loans.--
``(A) In general.--The Administration shall, upon
written request, defer repayment of principal and
interest due on a direct loan made under subsection (a)
or (b), if such loan was incurred by a qualified
borrower.
``(B) Period of deferral.--The period of deferral
for repayment under this paragraph shall begin on the
date on which the eligible reservist is ordered to
active duty and shall terminate on the date that is 180
days after the date such eligible reservist is
discharged or released from active duty.
``(C) Interest rate reduction during deferral.--
Notwithstanding any other provision of law, during the
period of deferral described in subparagraph (B), the
Administration may, in its discretion, reduce the
interest rate on any loan qualifying for a deferral
under this paragraph.
[[Page 113 STAT. 245]]
``(3) Deferral of loan guarantees and other financings.--The
Administration shall--
``(A) encourage intermediaries participating in the
program under subsection (m) to defer repayment of a
loan made with proceeds made available under that
subsection, if such loan was incurred by a small
business concern that is eligible to apply for
assistance under subsection (b)(3); and
``(B) not <<NOTE: Deadline. Guidelines.>> later than
30 days after the date of the enactment of this
subsection, establish guidelines to--
``(i) encourage lenders and other
intermediaries to defer repayment of, or provide
other relief relating to, loan guarantees under
subsection (a) and financings under section 504 of
the Small Business Investment Act of 1958 that
were incurred by small business concerns that are
eligible to apply for assistance under subsection
(b)(3), and loan guarantees provided under
subsection (m) if the intermediary provides relief
to a small business concern under this paragraph;
and
``(ii) implement a program to provide for the
deferral of repayment or other relief to any
intermediary providing relief to a small business
borrower under this paragraph.''.
(b) Disaster Loan Assistance for Military Reservists' Small
Businesses.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting after the undesignated paragraph that begins
with ``Provided, That no loan'', the following:
``(3)(A) In this paragraph--
``(i) the term `essential employee' means an
individual who is employed by a small business concern
and whose managerial or technical expertise is critical
to the successful day-to-day operations of that small
business concern;
``(ii) the term `period of military conflict' has
the meaning given the term in subsection (n)(1); and
``(iii) the term `substantial economic injury' means
an economic harm to a business concern that results in
the inability of the business concern--
``(I) to meet its obligations as they mature;
``(II) to pay its ordinary and necessary
operating expenses; or
``(III) to market, produce, or provide a
product or service ordinarily marketed, produced,
or provided by the business concern.
``(B) The Administration may make such disaster loans
(either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern that has
suffered or that is likely to suffer substantial economic injury
as the result of an essential employee of such small business
concern being ordered to active military duty during a period of
military conflict.
``(C) <<NOTE: Effective date.>> A small business concern
described in subparagraph (B) shall be eligible to apply for
assistance under this paragraph during the period beginning on
the date on which the essential employee is ordered to active
duty and ending on the date that is 90 days after the date on
which such essential employee is discharged or released from
active duty.
[[Page 113 STAT. 246]]
``(D) Any loan or guarantee extended pursuant to this
paragraph shall be made at the same interest rate as economic
injury loans under paragraph (2).
``(E) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis, if the total amount outstanding and committed
to the borrower under this subsection would exceed $1,500,000,
unless such applicant constitutes a major source of employment
in its surrounding area, as determined by the Administration, in
which case the Administration, in its discretion, may waive the
$1,500,000 limitation.
``(F) For purposes of assistance under this paragraph, no
declaration of a disaster area shall be required.''.
(c) Enhanced <<NOTE: 15 USC 636 note.>> Publicity During Operation
Allied Force.--For the duration of Operation Allied Force and for 120
days thereafter, the Administration shall enhance its publicity of the
availability of assistance provided pursuant to the amendments made by
this section, including information regarding the appropriate local
office at which affected small businesses may seek such assistance.
(d) Guidelines.--Not <<NOTE: Deadline. 15 USC 636 note.>> later than
30 days after the date of the enactment of this section, the
Administrator of the Small Business Administration shall issue such
guidelines as the Administrator determines to be necessary to carry out
this section and the amendments made by this section.
(e) Effective <<NOTE: 15 USC 636 note.>> Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date of
the enactment of this section.
(2) Disaster <<NOTE: Applicability.>> loans.--The amendments
made by subsection (b) shall apply to economic injury suffered
or likely to be suffered as the result of a period of military
conflict occurring or ending on or after March 24, 1999.
SEC. 403. MICROLOAN PROGRAM.
Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C.
636(m)(1)(A)(i)) is amended by inserting ``veteran (within the meaning
of such term under section 3(q)),'' after ``low-income,''.
SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PROGRAM.
Section 7(a)(21)(A)(ii) of the Small Business Act (15 U.S.C.
636(a)(21)(A)(ii)) is amended by inserting ``or a veteran'' after
``qualified individual''.
SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.
Section 501(d)(3) of the Small Business Investment Act of 1958 (15
U.S.C. 695(d)(3)) is amended--
(1) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (F), (G), and (H), respectively; and
(2) by inserting after subparagraph (D) the following:
``(E) expansion of small business concerns owned and
controlled by veterans, as defined in section 3(q) of
the Small Business Act (15 U.S.C. 632(q)), especially
service-disabled veterans, as defined in such section
3(q),''.
[[Page 113 STAT. 247]]
TITLE V--PROCUREMENT ASSISTANCE
SEC. 501. SUBCONTRACTING.
(a) Statement of Policy.--Section 8(d)(1) of the Small Business Act
(15 U.S.C. 637(d)(1)) is amended by inserting ``small business concerns
owned and controlled by service-disabled veterans,'' after ``small
business concerns,'' the first place it appears in the first and second
sentences.
(b) Contract Clause.--The contract clause specified in section
8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)) is amended as
follows:
(1) Subparagraph (A) of such clause is amended by inserting
``small business concerns owned and controlled by veterans,''
after ``small business concerns,'' the first place it appears in
the first and second sentences.
(2) Subparagraphs (E) and (F) of such clause are
redesignated as subparagraphs (F) and (G), respectively, and the
following new subparagraph is inserted after subparagraph (D) of
such clause:
``(E) The term `small business concern owned and controlled
by veterans' shall mean a small business concern--
``(i) which is at least 51 per centum owned by one
or more eligible veterans; or, in the case of any
publicly owned business, at least 51 per centum of the
stock of which is owned by one or more veterans; and
``(ii) whose management and daily business
operations are controlled by such veterans. The
contractor shall treat as veterans all individuals who
are veterans within the meaning of the term under
section 3(q) of the Small Business Act.''.
(3) Subparagraph (F) of such clause, as redesignated by
paragraph (2) of this subsection, is amended by inserting
``small business concern owned and controlled by veterans,''
after ``small business concern,'' the first place it appears.
(c) Conforming Amendments.--Section 8(d) of the Small Business Act
(15 U.S.C. 637(d)) is amended by inserting ``small business concerns
owned and controlled by veterans,'' after ``small business concerns,''
the first place it appears in each of paragraphs (4)(D), (4)(E), (6)(A),
(6)(C), (6)(F), and (10)(B).
SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.
(a) Government-Wide Participation Goals.--Section 15(g)(1) of the
Small Business Act (15 U.S.C. 644(g)(1)) is amended--
(1) in the first sentence, by inserting ``small business
concerns owned and controlled by service disabled veterans,''
after ``small business concerns,'' the first place it appears;
(2) by inserting after the second sentence, the following:
``The Government-wide goal for participation by small business
concerns owned and controlled by service-disabled veterans shall
be established at not less than 3 percent of the total value of
all prime contract and subcontract awards for each fiscal
year.''; and
(3) in the second to last sentence, by inserting ``small
business concerns owned and controlled by service-disabled
veterans,'' after ``small business concerns,'' the first place
it appears.
[[Page 113 STAT. 248]]
(b) Agency Participation Goals.--Section 15 of the Small Business
Act (15 U.S.C. 644(g)(2)) is amended--
(1) in the first sentence, by inserting ``by small business
concerns owned and controlled by service-disabled veterans,''
after ``small business concerns,''; the first place it appears;
(2) in the second sentence, by inserting ``small business
concerns owned and controlled by service-disabled veterans,''
after ``small business concerns,'' the first place it appears;
and
(3) in the fourth sentence, by inserting ``small business
concerns owned and controlled by service-disabled veterans, by''
after ``including participation by''.
TITLE VI--REPORTS AND DATA COLLECTION
SEC. 601. REPORTING REQUIREMENTS.
(a) Reports to Small Business Administration.--Section 15(h)(1) of
the Small Business Act (15 U.S.C. 644(h)(1)) is amended by inserting
``small business concerns owned and controlled by veterans (including
service-disabled veterans),'' after ``small business concerns,'' the
first place it appears.
(b) Reports to the President and the Congress.--Section 15(h)(2) of
the Small Business Act (15 U.S.C. 644(h)(2)) is amended--
(1) by inserting ``and the Congress'' before the period at
the end of first sentence; and
(2) in each of subparagraphs (A), (D), and (E), by inserting
``small business concerns owned and controlled by service-
disabled veterans,'' after ``small business concerns,'' the
first place it appears.
SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.
Section 303(e) of the Small Business Economic Policy Act of 1980 (15
U.S.C. 631b(e)) is amended--
(1) in paragraph (1), by striking ``and'' after the
semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) small business concerns owned and controlled by
veterans, as defined in section 3(q) of the Small Business Act
(15 U.S.C. 632(q)), and small business concerns owned and
controlled by service-disabled veterans, as defined in such
section 3(q).''.
SEC. 603. <<NOTE: 15 USC 657b note.>> ANNUAL REPORT OF THE
ADMINISTRATOR.
The Administrator of the Small Business Administration shall
transmit annually to the Committees on Small Business and Veterans
Affairs of the House of Representatives and the Senate a report on the
needs of small business concerns owned and controlled by veterans and
small business concerns owned and controlled by service-disabled
veterans, which shall include information on--
(1) the availability of Small Business Administration
programs for such small business concerns and the degree of
utilization of such programs by such small business concerns
during the preceding 12-month period, including statistical
[[Page 113 STAT. 249]]
information on such utilization as compared to the small
business community as a whole;
(2) the percentage and dollar value of Federal contracts
awarded to such small business concerns during the preceding 12-
month period, based on the data collected pursuant to section
604(d); and
(3) proposals to improve the access of such small business
concerns to the assistance made available by the United States.
SEC. 604. <<NOTE: 15 USC 657b note.>> DATA AND INFORMATION COLLECTION.
(a) Information on Federal Procurement Practices.--The Administrator
of the Small Business Administration shall, for each fiscal year--
(1) collect information concerning the procurement practices
and procedures of each department and agency of the United
States having procurement authority;
(2) <<NOTE: Publication.>> publish and disseminate such
information to procurement officers in all Federal agencies; and
(3) make such information available to any small business
concern requesting such information.
(b) Identification of Small Business Concerns Owned by Eligible
Veterans.--Each fiscal year, the Secretary of Veterans Affairs shall, in
consultation with the Assistant Secretary of Labor for Veterans'
Employment and Training and the Administrator of the Small Business
Administration, identify small business concerns owned and controlled by
veterans in the United States. The Secretary shall inform each small
business concern identified under this paragraph that information on
Federal procurement is available from the Administrator.
(c) Self-Employment <<NOTE: Memorandums.>> Opportunities.--The
Secretary of Labor, the Secretary of Veterans Affairs, and the
Administrator of the Small Business Administration shall enter into a
memorandum of understanding to provide for coordination of vocational
rehabilitation services, technical and managerial assistance, and
financial assistance to veterans, including service-disabled veterans,
seeking to employ themselves by forming or expanding small business
concerns. The memorandum of understanding shall include recommendations
for expanding existing programs or establishing new programs to provide
such services or assistance to such veterans.
(d) Data Collection Required.--The Federal Procurement Data System
described in section 6(d)(4)(A) of the Office of Federal Procurement
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data
regarding the percentage and dollar value of prime contracts and
subcontracts awarded to small business concerns owned and controlled by
veterans and small business concerns owned and controlled by service-
disabled veterans.
TITLE VII--MISCELLANEOUS PROVISIONS
SEC. 701. ADMINISTRATOR'S <<NOTE: 15 USC 633 note.>> ORDER.
The Administrator of the Small Business Administration shall
strengthen and reissue the Administrator's order regarding the third
sentence of section 4(b)(1) of the Small Business Act (15
[[Page 113 STAT. 250]]
U.S.C. 633(b)(1)), relating to nondiscrimination and special
considerations for veterans, and take all necessary steps to ensure that
its provisions are fully and vigorously implemented.
SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.
Section 202 of Public Law 94-305 (15 U.S.C. 634b) is amended--
(1) in paragraph (10), by striking ``and'' at the end;
(2) in paragraph (11), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(12) evaluate the efforts of each department and agency of
the United States, and of private industry, to assist small
business concerns owned and controlled by veterans, as defined
in section 3(q) of the Small Business Act (15 U.S.C. 632(q)),
and small business concerns owned and controlled by serviced-
disabled veterans, as defined in such section 3(q), and to
provide statistical information on the utilization of such
programs by such small business concerns, and to make
appropriate recommendations to the Administrator of the Small
Business Administration and to the Congress in order to promote
the establishment and growth of those small business
concerns.''.
SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.
(a) In General.--The Comptroller General shall conduct a study on
whether there would exist any additional risk or cost to the United
States if--
(1) up to 10 percent of the loans guaranteed under chapter
37 of title 38, United States Code, were made for the
acquisition or construction of fixed assets used in a trade or
business rather than for the construction or purchase of
residential buildings; and
(2) such loans for acquisition or construction of fixed
assets were for a term of not more than 10 years and the terms
regarding eligibility, loan limits, interest, fees, and down
payment were the same as for other loans guaranteed under such
chapter.
(b) Report.--
(1) In <<NOTE: Deadline.>> general.--Not later than 180 days
after the enactment of this Act, the Comptroller General shall
transmit the report described in subsection (a) to the
Committees on Veterans' Affairs and the Committees on Small
Business of the House of Representatives and the Senate.
(2) Contents of report.--The report required by paragraph
(1) shall specifically address the following:
(A) With respect to the change in the veterans'
housing loan program contemplated under subsection (a):
(i) The increase or decrease in administrative
costs to the Department of Veterans Affairs.
(ii) The increase or decrease in the degree of
exposure of the United States as the guarantor of
the loans.
(iii) The increase or decrease in the Federal
subsidy rate that would be possible.
(iv) Any increase in the interest rate or fees
charged to the borrower or lender that would be
required to maintain present program costs.
[[Page 113 STAT. 251]]
(B) Information regarding the delinquency rates,
default rates, length of time required for recovery
after default, for fixed-asset business loans, of a size
and duration comparable to those contemplated under
subsection (a), made available in the private market or
under section 503 of the Small Business Investment Act
of 1958.
Approved August 17, 1999.
LEGISLATIVE HISTORY--H.R. 1568:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 106-206, Pt. 1 (Comm. on Small Business).
SENATE REPORTS: No. 106-136 (Comm. on Small Business).
CONGRESSIONAL RECORD, Vol. 145 (1999):
June 29, considered and passed House.
Aug. 5, considered and passed Senate, amended. House
concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 35 (1999):
Aug. 17, Presidential statement.
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