U.S. Congress - Text of S.2920 as Placed on Calendar Senate SBA Reauthorization and Improvement Act of 2008
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Donate NowS.2920 - SBA Reauthorization and Improvement Act of 2008
A bill to reauthorize and improve the financing and entrepreneurial development programs of the Small Business Administration, and for other purposes.
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S 2920 PCSCommentsClose CommentsPermalink
To reauthorize and improve the financing and entrepreneurial development programs of the Small Business Administration, and for other purposes.CommentsClose CommentsPermalink
April 24, 2008
Mr. KERRY (for himself, Ms. SNOWE, and Mr. LEVIN) introduced the following bill; which was read the first timeCommentsClose CommentsPermalink
April 28, 2008
Read the second time and placed on the calendarCommentsClose CommentsPermalink
To reauthorize and improve the financing and entrepreneurial development programs of the Small Business Administration, and for other purposes.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
This Act may be cited as the `SBA Reauthorization and Improvement Act of 2008'.CommentsClose CommentsPermalink
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:CommentsClose CommentsPermalink
Sec. 1. Short title.CommentsClose CommentsPermalink
Sec. 2. Table of contents.CommentsClose CommentsPermalink
Sec. 3. Definitions.CommentsClose CommentsPermalink
TITLE I--SMALL BUSINESS LENDING
Sec. 101. Authorization of appropriations.CommentsClose CommentsPermalink
Subtitle A--Microloan Programs
Sec. 121. Conforming technical change in average smaller loan size.CommentsClose CommentsPermalink
Sec. 122. Inclusion of persons with disabilities.CommentsClose CommentsPermalink
Sec. 123. Microloan program improvements.CommentsClose CommentsPermalink
Sec. 124. Prime reauthorization and transfer to the Small Business Act.CommentsClose CommentsPermalink
Sec. 125. Report to congress on the microloan program.CommentsClose CommentsPermalink
Subtitle B--Intermediary Lending Pilot Program
Sec. 141. Findings.CommentsClose CommentsPermalink
Sec. 142. Small business intermediary lending pilot program.CommentsClose CommentsPermalink
Subtitle C--7(a) Loan Program
Sec. 161. Preferred lenders program.CommentsClose CommentsPermalink
Sec. 162. Maximum loan amount.CommentsClose CommentsPermalink
Sec. 163. Maximum 504 and 7(a) loan eligibility.CommentsClose CommentsPermalink
Sec. 164. Loan pooling.CommentsClose CommentsPermalink
Sec. 165. Alternative size standard.CommentsClose CommentsPermalink
Sec. 166. Alternative variable interest rate.CommentsClose CommentsPermalink
Sec. 167. Minority small business development.CommentsClose CommentsPermalink
Sec. 168. Lowering of fees.CommentsClose CommentsPermalink
Sec. 169. International trade loans.CommentsClose CommentsPermalink
Sec. 170. Rural lending outreach program.CommentsClose CommentsPermalink
Subtitle D--Certified Development Companies; 504 Loan Program
Sec. 181. Development company loan programs.CommentsClose CommentsPermalink
Sec. 182. Loan liquidations.CommentsClose CommentsPermalink
Sec. 183. Additional equity injections.CommentsClose CommentsPermalink
Sec. 184. Uniform leasing policy.CommentsClose CommentsPermalink
Sec. 185. Businesses in low-income communities.CommentsClose CommentsPermalink
Sec. 186. Combinations of certain goals.CommentsClose CommentsPermalink
Sec. 187. Refinancing under the local development business loan program.CommentsClose CommentsPermalink
Sec. 188. Technical correction.CommentsClose CommentsPermalink
Sec. 189. Definitions for the Small Business Investment Act of 1958.CommentsClose CommentsPermalink
Sec. 190. Repeal of sunset on reserve requirements for premier certified lenders.CommentsClose CommentsPermalink
Sec. 191. Certified development companies.CommentsClose CommentsPermalink
Sec. 192. Conforming amendments.CommentsClose CommentsPermalink
Sec. 193. Closing costs.CommentsClose CommentsPermalink
Sec. 194. Definition of rural.CommentsClose CommentsPermalink
Sec. 195. Regulations and effective date.CommentsClose CommentsPermalink
Sec. 196. Limitation on time for final approval of companies.CommentsClose CommentsPermalink
Sec. 197. Child care lending pilot program.CommentsClose CommentsPermalink
Sec. 198. Debenture repayment.CommentsClose CommentsPermalink
Sec. 199. Real estate appraisals.CommentsClose CommentsPermalink
TITLE II--SMALL BUSINESS VENTURE CAPITAL
Subtitle A--Small Business Investment Company Program
Sec. 221. Reauthorization.CommentsClose CommentsPermalink
Sec. 222. Leverage.CommentsClose CommentsPermalink
Sec. 223. Investments in smaller enterprises.CommentsClose CommentsPermalink
Sec. 224. Maximum investment in a company.CommentsClose CommentsPermalink
Subtitle B--New Markets Venture Capital Program
Sec. 241. Diversification of New Markets Venture Capital Program.CommentsClose CommentsPermalink
Sec. 242. Establishment of Office of New Markets Venture Capital.CommentsClose CommentsPermalink
Sec. 243. Low-income geographic areas.CommentsClose CommentsPermalink
Sec. 244. Applications for New Markets Venture Capital Program.CommentsClose CommentsPermalink
Sec. 245. Operational assistance grants.CommentsClose CommentsPermalink
Sec. 246. Authorization.CommentsClose CommentsPermalink
TITLE III--SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT
Subtitle A--Reauthorization
Sec. 301. Reauthorization.CommentsClose CommentsPermalink
Subtitle B--Women's Small Business Ownership Programs
Sec. 311. Office of Women's Business Ownership.CommentsClose CommentsPermalink
Sec. 312. Women's Business Center Program.CommentsClose CommentsPermalink
Sec. 313. National Women's Business Council.CommentsClose CommentsPermalink
Sec. 314. Interagency Committee on Women's Business Enterprise.CommentsClose CommentsPermalink
Sec. 315. Preserving the independence of the National Women's Business Council.CommentsClose CommentsPermalink
Sec. 316. Study and report on women's business centers.CommentsClose CommentsPermalink
Subtitle C--International Trade
Sec. 321. Small Business Administration Associate Administrator for International Trade.CommentsClose CommentsPermalink
Sec. 322. Office of International Trade.CommentsClose CommentsPermalink
Subtitle D--Native American Small Business Development Program
Sec. 331. Short title.CommentsClose CommentsPermalink
Sec. 332. Native American Small Business Development Program.CommentsClose CommentsPermalink
Sec. 333. Pilot programs.CommentsClose CommentsPermalink
Subtitle E--National Small Business Regulatory Assistance
Sec. 341. Short title.CommentsClose CommentsPermalink
Sec. 342. Purpose.CommentsClose CommentsPermalink
Sec. 343. Small Business Regulatory Assistance Pilot Program.CommentsClose CommentsPermalink
Sec. 344. Rulemaking.CommentsClose CommentsPermalink
Subtitle F--Other Provisions
Sec. 351. Minority Entrepreneurship and Innovation Pilot Program.CommentsClose CommentsPermalink
Sec. 352. Institutions of higher education.CommentsClose CommentsPermalink
Sec. 353. Health insurance options information for small business concerns.CommentsClose CommentsPermalink
Sec. 354. National Small Business Development Center Advisory Board.CommentsClose CommentsPermalink
Sec. 355. Office of Native American Affairs pilot program.CommentsClose CommentsPermalink
Sec. 356. Privacy requirements for SCORE chapters.CommentsClose CommentsPermalink
Sec. 357. National small business summit.CommentsClose CommentsPermalink
Sec. 358. SCORE program.CommentsClose CommentsPermalink
TITLE IV--LENDER OVERSIGHT
Sec. 401. Findings.CommentsClose CommentsPermalink
Sec. 402. Definitions.CommentsClose CommentsPermalink
Sec. 403. Authority.CommentsClose CommentsPermalink
Sec. 404. Portfolio quality evaluation standards.CommentsClose CommentsPermalink
Sec. 405. Default rate.CommentsClose CommentsPermalink
Sec. 406. Computer modeling.CommentsClose CommentsPermalink
Sec. 407. Economic performance evaluation measurements.CommentsClose CommentsPermalink
Sec. 408. Privacy.CommentsClose CommentsPermalink
Sec. 409. Executive compensation.CommentsClose CommentsPermalink
Sec. 410. Study and report on examination and review fees.CommentsClose CommentsPermalink
SEC. 3. DEFINITIONS.
In this Act--CommentsClose CommentsPermalink
(1) the terms `Administration' and `Administrator' mean the Small Business Administration and the Administrator thereof, respectively;CommentsClose CommentsPermalink
(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 (
(3) the term `low-income geographic area' has the meaning given that term in section 351 of the Small Business Investment Act of 1958 (
(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 (
(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 (
(6) the term `small business concern' has the same meaning as in section 3 of the Small Business Act (
TITLE I--SMALL BUSINESS LENDING
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Section 20 of the Small Business Act (
(1) by redesignating subsection (j) as subsection (f); andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(g) Microloan- For each of fiscal years 2008 through 2010, the Administration is authorized to make, as provided in section 7(m)--CommentsClose CommentsPermalink
`(1) $80,000,000 in technical assistance grants;CommentsClose CommentsPermalink
`(2) $110,000,000 in direct loans; andCommentsClose CommentsPermalink
`(3) $50,000,000 in deferred participation loans.CommentsClose CommentsPermalink
`(h) General Business Loans- The Administration is authorized to make, as provided in section 7(a)--CommentsClose CommentsPermalink
`(1) $19,000,000,000 in general business loans in fiscal year 2008;CommentsClose CommentsPermalink
`(2) $20,000,000,000 in general business loans in fiscal year 2009; andCommentsClose CommentsPermalink
`(3) $21,000,000,000 in general business loans in fiscal year 2010.CommentsClose CommentsPermalink
`(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 )--CommentsClose CommentsPermalink
`(1) $8,500,000,000 in certified development company financings in fiscal year 2008;CommentsClose CommentsPermalink
`(2) $9,000,000,000 in certified development company financings in fiscal year 2009; andCommentsClose CommentsPermalink
`(3) $9,500,000,000 in certified development company financings in fiscal year 2010.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(k) Prime Program-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(l) Additional Authorizations and Limitations-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) LIMITATIONS- Notwithstanding any other provision of this section, for each of fiscal years 2008 through 2010--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
Subtitle A--Microloan Programs
SEC. 121. CONFORMING TECHNICAL CHANGE IN AVERAGE SMALLER LOAN SIZE.
Section 7(m) of the Small Business Act (
(1) in paragraph (3)(F)(iii), by striking `$7,500' and inserting `$10,000'; andCommentsClose CommentsPermalink
(2) in paragraph (6)(C), by striking `$7,500' each place that term appears and inserting `$10,000'.CommentsClose CommentsPermalink
SEC. 122. INCLUSION OF PERSONS WITH DISABILITIES.
Section 7(m)(1)(A)(i) of the Small Business Act (
SEC. 123. MICROLOAN PROGRAM IMPROVEMENTS.
(a) Intermediary Eligibility Requirements- Section 7(m)(2) of the Small Business Act (
(1) in subparagraph (A), by striking `in paragraph (10); and' and inserting `of the term `intermediary' under paragraph (11);'; andCommentsClose CommentsPermalink
(2) in subparagraph (B)--CommentsClose CommentsPermalink
(A) by striking `(B) has at least' and inserting the following:CommentsClose CommentsPermalink
`(B) has--CommentsClose CommentsPermalink
`(i) at least'; andCommentsClose CommentsPermalink
(B) by striking the period at the end and inserting the following: `; orCommentsClose CommentsPermalink
`(ii) a full-time employee who has not less than 3 years experience making microloans to startup, newly established, or growing small business concerns; andCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
(b) Limitation on Third Party Technical Assistance- Section 7(m)(4)(E)(ii) of the Small Business Act (
(1) in the clause heading, by striking `TECHNICAL ASSISTANCE' and inserting `THIRD PARTY TECHNICAL ASSISTANCE'; andCommentsClose CommentsPermalink
(2) by striking `25 percent' and inserting `30 percent'.CommentsClose CommentsPermalink
(c) Increased Flexibility for Providing Technical Assistance to Potential Borrowers- Section 7(m)(4)(E)(i) of the Small Business Act (
SEC. 124. PRIME REAUTHORIZATION AND TRANSFER TO THE SMALL BUSINESS ACT.
(a) Program Reauthorization- The Small Business Act (
(1) by redesignating section 37 as section 40; andCommentsClose CommentsPermalink
(2) by inserting after section 36 the following:CommentsClose CommentsPermalink
`SEC. 37. PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS.
`(a) Definitions- In this section:CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) COLLABORATIVE- The term `collaborative' means 2 or more nonprofit entities that agree to act jointly as a qualified organization under this section.CommentsClose CommentsPermalink
`(3) DISADVANTAGED ENTREPRENEUR- The term `disadvantaged entrepreneur' means a microentrepreneur that--CommentsClose CommentsPermalink
`(A) is a low-income person;CommentsClose CommentsPermalink
`(B) is a very low-income person; orCommentsClose CommentsPermalink
`(C) lacks adequate access to capital or other resources essential for business success, or is economically disadvantaged, as determined by the Administrator.CommentsClose CommentsPermalink
`(4) DISADVANTAGED NATIVE AMERICAN ENTREPRENEUR- The term `disadvantaged Native American entrepreneur' means a disadvantaged entrepreneur who is also a member of an Indian Tribe.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(6) INTERMEDIARY- The term `intermediary' means a private, nonprofit entity that seeks to serve microenterprise development organizations and programs, as authorized under subsection (d).CommentsClose CommentsPermalink
`(7) LOW-INCOME PERSON- The term `low-income person' means having an income, adjusted for family size, of not more than--CommentsClose CommentsPermalink
`(A) for metropolitan areas, 80 percent of the area median income; andCommentsClose CommentsPermalink
`(B) for nonmetropolitan areas, the greater of--CommentsClose CommentsPermalink
`(i) 80 percent of the area median income; orCommentsClose CommentsPermalink
`(ii) 80 percent of the statewide nonmetropolitan area median income.CommentsClose CommentsPermalink
`(8) MICROENTREPRENEUR- The term `microentrepreneur' means the owner or developer of a microenterprise.CommentsClose CommentsPermalink
`(9) MICROENTERPRISE- The term `microenterprise' means a sole proprietorship, partnership, or corporation that--CommentsClose CommentsPermalink
`(A) has fewer than 5 employees; andCommentsClose CommentsPermalink
`(B) generally lacks access to conventional loans, equity, or other banking services.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink`(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.CommentsClose CommentsPermalink
`(c) Uses of Assistance- A qualified organization shall use grants made under this section--CommentsClose CommentsPermalink
`(1) to provide training and technical assistance to disadvantaged entrepreneurs;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(3) to aid in researching and developing the best practices in the field of microenterprise and technical assistance programs for disadvantaged entrepreneurs;CommentsClose CommentsPermalink
`(4) to provide training and technical assistance to disadvantaged Native American entrepreneurs and prospective entrepreneurs; andCommentsClose CommentsPermalink
`(5) for such other activities as the Administrator determines are consistent with the purposes of this section.CommentsClose CommentsPermalink
`(d) Qualified Organizations- For purposes of eligibility for assistance under this section, a qualified organization shall be--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(2) an intermediary;CommentsClose CommentsPermalink
`(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; orCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(e) Allocation of Assistance; Subgrants-CommentsClose CommentsPermalink
`(1) ALLOCATION OF ASSISTANCE-CommentsClose CommentsPermalink
`(A) IN GENERAL- The Administrator shall allocate assistance from the Administration under this section to ensure that--CommentsClose CommentsPermalink
`(i) activities described in subsection (c)(1) are funded using not less than 75 percent of amounts made available for such assistance; andCommentsClose CommentsPermalink
`(ii) activities described in subsection (c)(2) are funded using not less than 15 percent of amounts made available for such assistance.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(3) SUBGRANTS AUTHORIZED-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(f) Matching Requirements-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(3) EXCEPTION-CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(h) Recordkeeping and Reporting-CommentsClose CommentsPermalink
`(1) IN GENERAL- Each organization that receives assistance from the Administration under this section shall--CommentsClose CommentsPermalink
`(A) submit to the Administration not less than once in every 18-month period, financial statements audited by an independent certified public accountant;CommentsClose CommentsPermalink
`(B) submit an annual report to the Administration on its activities; andCommentsClose CommentsPermalink
`(C) keep such records as may be necessary to disclose the manner in which any assistance under this section is used.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(3) DATA COLLECTION- Each organization that receives assistance from the Administration under this section shall collect information relating to, as applicable--CommentsClose CommentsPermalink
`(A) the number of individuals counseled or trained;CommentsClose CommentsPermalink
`(B) the number of hours of counseling provided;CommentsClose CommentsPermalink
`(C) the number of startup small business concerns formed;CommentsClose CommentsPermalink
`(D) the number of small business concerns expanded;CommentsClose CommentsPermalink
`(E) the number of low-income individuals counseled or trained; andCommentsClose CommentsPermalink
`(F) the number of very low-income individuals counseled or trained.'.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 125. REPORT TO CONGRESS ON THE MICROLOAN PROGRAM.
Section 7(m)(10) of the Small Business Act (
`(10) REPORT TO CONGRESS ON THE MICROLOAN PROGRAM-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) an analysis of the effectiveness of the Microloan Program and the microloan technical assistance program;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(iii) the numbers and amounts of microloans made by the intermediaries to small business concern borrowers;CommentsClose CommentsPermalink
`(iv) an accurate measure of the cost of the microloan and microloan technical assistance programs; andCommentsClose CommentsPermalink
`(v) any recommendations for legislative changes that would improve the program operations.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
Subtitle B--Intermediary Lending Pilot Program
SEC. 141. FINDINGS.
Congress finds the following:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(B) less flexible terms and conditions, which are often necessary for small and emerging businesses.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) providing riskier, up front, or subordinated capital;CommentsClose CommentsPermalink
(B) offering flexible terms and underwriting procedures; andCommentsClose CommentsPermalink
(C) providing technical assistance to businesses in order to reduce the transaction costs and risk exposure of banks.CommentsClose CommentsPermalink
(4) Several Federal programs, including the Microloan Program under section 7(m) of the Small Business Act (
(5) More than 1,000 nonprofit intermediary lenders in the United States are--CommentsClose CommentsPermalink
(A) successfully providing financial and technical assistance to small and emerging businesses;CommentsClose CommentsPermalink
(B) working with banks and other lenders to leverage additional capital for their business borrowers; andCommentsClose CommentsPermalink
(C) creating employment opportunities for low-income individuals through their lending and business development activities.CommentsClose CommentsPermalink
SEC. 142. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.
(a) In General- Section 7 of the Small Business Act (
`(l) Small Business Intermediary Lending Program-CommentsClose CommentsPermalink
`(1) DEFINITIONS- In this subsection--CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) a private, nonprofit community development corporation;CommentsClose CommentsPermalink
`(ii) a consortium of private, nonprofit organizations or nonprofit community development corporations;CommentsClose CommentsPermalink
`(iii) a quasi-governmental economic development entity (such as a planning and development district), other than a State, county, or municipal government; andCommentsClose CommentsPermalink
`(iv) an agency of or nonprofit entity established by a Native American Tribal Government; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(3) PURPOSES- The purposes of the Program are--CommentsClose CommentsPermalink
`(A) to assist small business concerns in those areas suffering from a lack of credit due to poor economic conditions;CommentsClose CommentsPermalink
`(B) to create employment opportunities for low-income individuals;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(D) to test the effectiveness of nonprofit intermediaries--CommentsClose CommentsPermalink
`(i) as a delivery system for a midsize loan program; andCommentsClose CommentsPermalink
`(ii) in addressing the credit needs of small business concerns and leveraging other sources of credit; andCommentsClose CommentsPermalink
`(E) to determine the advisability and feasibility of implementing a midsize loan program nationwide.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(5) LOANS TO INTERMEDIARIES-CommentsClose CommentsPermalink
`(A) APPLICATION- Each intermediary desiring a loan under this subsection shall submit an application to the Administrator that describes--CommentsClose CommentsPermalink
`(i) the type of small business concerns to be assisted;CommentsClose CommentsPermalink
`(ii) the size and range of loans to be made;CommentsClose CommentsPermalink
`(iii) the geographic area to be served and its economic, poverty, and unemployment characteristics;CommentsClose CommentsPermalink
`(iv) the status of small business concerns in the area to be served and an analysis of the availability of credit; andCommentsClose CommentsPermalink
`(v) the qualifications of the applicant to carry out this subsection.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(C) LOAN DURATION- Loans made by the Administrator under this subsection shall be for a maximum term of 20 years.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) banks or credit unions;CommentsClose CommentsPermalink
`(ii) community development financial institutions; andCommentsClose CommentsPermalink
`(iii) other sources with funds available to the intermediary lender.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(6) PROGRAM FUNDING FOR MIDSIZE LOANS-CommentsClose CommentsPermalink
`(A) NUMBER OF PARTICIPANTS- Under the Program, the Administrator may provide loans, on a competitive basis, to not more than 20 intermediaries.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(7) REPORT TO CONGRESS-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) the Committee on Small Business and Entrepreneurship of the Senate; andCommentsClose CommentsPermalink
`(ii) the Committee on Small Business of the House of Representatives.CommentsClose CommentsPermalink
`(B) CONTENTS- Each report submitted under subparagraph (A) shall include, for the 12-month period before the date of that report--CommentsClose CommentsPermalink
`(i) the numbers and locations of the intermediaries receiving funds to provide midsize loans;CommentsClose CommentsPermalink
`(ii) the amounts of each loan to an intermediary;CommentsClose CommentsPermalink
`(iii) the numbers and amounts of midsize loans made by intermediaries to small business concerns;CommentsClose CommentsPermalink
`(iv) the repayment history of each intermediary;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(vi) an estimate of the number of low-income individuals who have been employed as a direct result of the Program; andCommentsClose CommentsPermalink
`(vii) any recommendations for legislative changes that would improve the operation of the Program.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(c) Authorization of Appropriations-CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(2) AVAILABILITY- Any amounts appropriated pursuant to paragraph (1) shall remain available until expended.CommentsClose CommentsPermalink
Subtitle C--7(a) Loan Program
SEC. 161. PREFERRED LENDERS PROGRAM.
(a) In General- Section 7(a) of the Small Business Act (
(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 (
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(34) PREFERRED LENDERS PROGRAM-CommentsClose CommentsPermalink
`(A) DEFINITIONS- In this paragraph--CommentsClose CommentsPermalink
`(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);CommentsClose CommentsPermalink
`(ii) the term `preferred lender' means a qualified lender participating in the program;CommentsClose CommentsPermalink
`(iii) the term `program' means the Preferred Lenders Program established under subparagraph (B); andCommentsClose CommentsPermalink
`(iv) the term `qualified lender' means a lender that demonstrates--CommentsClose CommentsPermalink
`(I) knowledge of and proficiency in the requirements of the program under this subsection;CommentsClose CommentsPermalink
`(II) the ability to process, close, service, and liquidate loans;CommentsClose CommentsPermalink
`(III) the ability to develop and analyze complete loan packages; andCommentsClose CommentsPermalink
`(IV) a satisfactory performance history of participation in the program under this subsection.CommentsClose CommentsPermalink
`(B) ESTABLISHMENT- There is established a Preferred Lenders Program under which the Administrator may authorize qualified lenders to make and service loans.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(D) DELEGATED AUTHORITY- The Administrator shall authorize a preferred lender to take actions relating to loan servicing on behalf of the Administrator, including--CommentsClose CommentsPermalink
`(i) determining eligibility and creditworthiness and loan monitoring, collection, and liquidation;CommentsClose CommentsPermalink
`(ii) authority to make and close loans with a guarantee from the Administrator without obtaining the prior specific approval of the Administrator; andCommentsClose CommentsPermalink
`(iii) authority to service and liquidate such loans without obtaining the prior specific approval of the Administrator for routine servicing and liquidation activities.CommentsClose CommentsPermalink
`(E) AREA OF OPERATIONS- The Administrator shall designate the area for which a preferred lender may exercise the authority under subparagraph (D).CommentsClose CommentsPermalink
`(F) CONFLICT- A preferred lender shall not take any action creating an actual or apparent conflict of interest.CommentsClose CommentsPermalink
`(G) NATIONAL OPERATION-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(ii) ELIGIBILITY- The Administration shall designate a preferred lender as a national preferred lender if the Administrator determines that preferred lender has--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(II) centralized loan approval, servicing, and liquidation functions and processes that are satisfactory to the Administration;CommentsClose CommentsPermalink
`(III) uniform written policies and procedures;CommentsClose CommentsPermalink
`(IV) a currency rate that is not less than the Administration's national average currency rate for all loans under this subsection;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(VI) a default rate that is not more than the Administration's national average default rate for loans made under this subsection; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(I) SUSPENSION OR REVOCATION-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(I) is not adhering to the rules or regulations established by the Administrator for the program; orCommentsClose CommentsPermalink
`(II) has failed to continue to meet the eligibility criteria specified in paragraph (G) or take corrective action under subparagraph (H).CommentsClose CommentsPermalink
`(ii) EFFECT- A suspension or revocation under clause (i) shall not affect any outstanding guarantee of a national preferred lender.'.CommentsClose CommentsPermalink
(b) Clerical Amendment- Section 7(a)(2)(C) of the Small Business Act (
`(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.'.CommentsClose CommentsPermalink
(c) Conforming Amendment- Section 7(a)(19) of the Small Business Act (
SEC. 162. MAXIMUM LOAN AMOUNT.
Section 7(a)(3)(A) of the Small Business Act (
SEC. 163. MAXIMUM 504 AND 7(a) LOAN ELIGIBILITY.
(a) Combination Financing-CommentsClose CommentsPermalink
(1) IN GENERAL- Section 502(2) of the Small Business Investment Act of 1958 (
`(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.'.CommentsClose CommentsPermalink
(2) CONFORMING AMENDMENT- Section 7(a)(1) of the Small Business Act (
`(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 ).'.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(1) includes the number of small business concerns that have financings under both section 7(a) of the Small Business Act (
(2) describes the total amount and general performance of the financings described in paragraph (1).CommentsClose CommentsPermalink
SEC. 164. LOAN POOLING.
Section 5(g)(1) of the Small Business Act (
(1) by inserting `(A)' before `The Administration';CommentsClose CommentsPermalink
(2) by striking the colon and all that follows and inserting a period; andCommentsClose CommentsPermalink
(3) by adding at the end the following:CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(C) The interest rate on a trust certificate issued under subparagraph (A) shall be either--CommentsClose CommentsPermalink
`(i) the lowest interest rate on any individual loan in the pool; orCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 165. ALTERNATIVE SIZE STANDARD.
Section 3(a) of the Small Business Act (
`(5) Optional Size Standard-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 166. ALTERNATIVE VARIABLE INTEREST RATE.
(a) In General- Section 7(a)(4)(A) of the Small Business Act (
(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.CommentsClose CommentsPermalink
SEC. 167. MINORITY SMALL BUSINESS DEVELOPMENT.
(a) In General- The Small Business Act (
`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).CommentsClose CommentsPermalink
`(b) Associate Administrator for Minority Small Business Development- The Associate Administrator--CommentsClose CommentsPermalink
`(1) shall be either--CommentsClose CommentsPermalink
`(A) an appointee in the Senior Executive Service who is a career appointee; orCommentsClose CommentsPermalink
`(B) an employee in the competitive service;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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));CommentsClose CommentsPermalink
`(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);CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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); andCommentsClose CommentsPermalink
`(9) shall report to and be responsible directly to the Administrator.CommentsClose CommentsPermalink
`(c) Authorization of Appropriations- There are authorized to be appropriated to carry out this section--CommentsClose CommentsPermalink
`(1) $5,000,000 for fiscal year 2008;CommentsClose CommentsPermalink
`(2) $5,000,000 for fiscal year 2009; andCommentsClose CommentsPermalink
`(3) $5,000,000 for fiscal year 2010.'.CommentsClose CommentsPermalink
(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.'.CommentsClose CommentsPermalink
SEC. 168. LOWERING OF FEES.
Section 7(a)(23) of the Small Business Act (
`(C) LOWERING OF FEES-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).'.CommentsClose CommentsPermalink
SEC. 169. INTERNATIONAL TRADE LOANS.
(a) In General- Section 7(a)(3)(B) of the Small Business Act (
(b) Working Capital- Section 7(a)(16)(A) of the Small Business Act (
(1) in the matter preceding clause (i), by striking `in--' and inserting `--';CommentsClose CommentsPermalink
(2) in clause (i)--CommentsClose CommentsPermalink
(A) by inserting `in' after `(i)'; andCommentsClose CommentsPermalink
(B) by striking `or' at the end;CommentsClose CommentsPermalink
(3) in clause (ii)--CommentsClose CommentsPermalink
(A) by inserting `in' after `(ii)'; andCommentsClose CommentsPermalink
(B) by striking the period and inserting `; or'; andCommentsClose CommentsPermalink
(4) by adding at the end the following:CommentsClose CommentsPermalink
`(iii) by providing working capital.'.CommentsClose CommentsPermalink
(c) Collateral- Section 7(a)(16)(B) of the Small Business Act (
(1) by striking `Each loan' and inserting the following:CommentsClose CommentsPermalink
`(i) IN GENERAL- Except as provided in clause (ii), each loan'; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
(d) Refinancing- Section 7(a)(16)(A)(ii) of the Small Business Act (
SEC. 170. RURAL LENDING OUTREACH PROGRAM.
Section 7(a) of the Small Business Act (
(1) by striking paragraph (25)(C); andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(35) RURAL LENDING OUTREACH PROGRAM-CommentsClose CommentsPermalink
`(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) )).CommentsClose CommentsPermalink`(B) LOAN TERMS- For a loan made through the program under this paragraph--CommentsClose CommentsPermalink
`(i) the Administrator shall approve or disapprove the loan within 36 hours of the time the Administrator receives the application;CommentsClose CommentsPermalink
`(ii) the program shall use abbreviated application and documentation requirements; andCommentsClose CommentsPermalink
`(iii) minimum credit standards, as the Administrator considers necessary to limit the rate of default on loans made under the program, shall apply.'.CommentsClose CommentsPermalink
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 (
`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.CommentsClose CommentsPermalink
`(b) Existing Name- Participants in the Local Development Business Loan Program may continue to refer to such program as `the 504 Loan Program'.'.CommentsClose CommentsPermalink
(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'.CommentsClose CommentsPermalink(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.CommentsClose CommentsPermalink
SEC. 182. LOAN LIQUIDATIONS.
Section 510 of the Small Business Investment Act of 1958 (
(1) by redesignating subsection (e) as subsection (g); andCommentsClose CommentsPermalink
(2) by inserting after subsection (d) the following:CommentsClose CommentsPermalink
`(e) Participation-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(f) Compensation and Reimbursement-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) were--CommentsClose CommentsPermalink
`(i) approved in advance by the Administrator, either specifically or generally; orCommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) COMPENSATION FOR RESULTS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) CRITERIA- The schedule required under this paragraph shall--CommentsClose CommentsPermalink
`(i) be based on a percentage of the net amount recovered, but shall not exceed a maximum amount; andCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 183. ADDITIONAL EQUITY INJECTIONS.
Section 502(3)(B)(ii) of the Small Business Investment Act of 1958 (
`(ii) FUNDING FROM INSTITUTIONS- If a small business concern--CommentsClose CommentsPermalink
`(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); andCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 184. UNIFORM LEASING POLICY.
(a) In General- Section 502 of the Small Business Investment Act of 1958 (
(1) by striking paragraphs (4) and (5) and inserting the following:CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) shall permanently occupy and use not less than a total of 50 percent of the space in the facility; andCommentsClose CommentsPermalink
`(B) may, on a temporary or permanent basis, lease to others not more than 50 percent of the space in the facility.'; andCommentsClose CommentsPermalink
(2) by redesignating paragraph (6) as paragraph (5).CommentsClose CommentsPermalink
(b) Policy for 7(a) Loans- Section 7(a)(28) of the Small Business Act (
`(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--CommentsClose CommentsPermalink
`(A) shall permanently occupy and use not less than a total of 50 percent of the space in the facility; andCommentsClose CommentsPermalink
`(B) may, on a temporary or permanent basis, lease to others not more than 50 percent of the space in the facility.'.CommentsClose CommentsPermalink
SEC. 185. BUSINESSES IN LOW-INCOME COMMUNITIES.
(a) Goals- Section 501(d)(3)(A) of the Small Business Investment Act of 1958 (
(b) Additional Incentives- Section 502 of the Small Business Investment Act of 1958 (
`(6) LOW-INCOME COMMUNITIES-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink`(C) PERSONAL LIQUIDITY-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 186. COMBINATIONS OF CERTAIN GOALS.
Section 501(e) of the Small Business Investment Act of 1958 (
`(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).'.CommentsClose CommentsPermalink
SEC. 187. REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS LOAN PROGRAM.
Section 502 of the Small Business Investment Act of 1958 (
`(7) PERMISSIBLE DEBT REFINANCING-CommentsClose CommentsPermalink
`(A) IN GENERAL- Any financing approved under this title may include a limited amount of debt refinancing.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(iii) the financing under section 504 will provide better terms or rate of interest than exists on the debt at the time of refinancing.'.CommentsClose CommentsPermalink
SEC. 188. TECHNICAL CORRECTION.
Section 501(e)(2) of the Small Business Investment Act of 1958 (
SEC. 189. DEFINITIONS FOR THE SMALL BUSINESS INVESTMENT ACT OF 1958.
Section 103 of the Small Business Investment Act of 1958 (
(1) by striking paragraph (6) and inserting the following:CommentsClose CommentsPermalink
`(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;';CommentsClose CommentsPermalink
(2) in paragraph (18), by striking `and' at the end;CommentsClose CommentsPermalink
(3) in paragraph (19), by striking the period at the end and inserting `; and'; andCommentsClose CommentsPermalink
(4) by adding at the end the following:CommentsClose CommentsPermalink
`(20) the term `certified development company' means a development company that the Administrator has certified meets the criteria of section 506.'.CommentsClose CommentsPermalink
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 (
(1) in the subparagraph heading, by striking `TEMPORARY REDUCTION' and inserting `REDUCTION'; andCommentsClose CommentsPermalink
(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'.CommentsClose CommentsPermalink
SEC. 191. CERTIFIED DEVELOPMENT COMPANIES.
Section 506 of the Small Business Investment Act of 1958 (
(1) in the section heading, by striking `restrictions on development company assistance' and inserting `certified development companies'; andCommentsClose CommentsPermalink
(2) by inserting before `Notwithstanding any other provision of law' the following:CommentsClose CommentsPermalink
`(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:CommentsClose CommentsPermalink
`(1) SIZE-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) EXCEPTION- Any development company that was certified by the Administrator before December 31, 2005, may continue to issue debentures under this title.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(4) NONPROFIT STATUS-CommentsClose CommentsPermalink
`(A) IN GENERAL- Except as provided in subparagraph (B), the development company shall be a nonprofit corporation.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(5) GOOD STANDING- The development company--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(6) MEMBERSHIP OF DEVELOPMENT COMPANY- There shall be--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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:CommentsClose CommentsPermalink
`(i) Government organizations that are responsible for economic development.CommentsClose CommentsPermalink
`(ii) Financial institutions that provide commercial long-term fixed asset financing.CommentsClose CommentsPermalink
`(iii) Community organizations that are dedicated to economic development.CommentsClose CommentsPermalink
`(iv) Businesses.CommentsClose CommentsPermalink
`(7) BOARD OF DIRECTORS-CommentsClose CommentsPermalink
`(A) IN GENERAL- The development company shall have a board of directors.CommentsClose CommentsPermalink
`(B) MEMBERS OF BOARD- Each member of the board of directors shall be--CommentsClose CommentsPermalink
`(i) a member of the development company; andCommentsClose CommentsPermalink
`(ii) elected by a majority of the members of the development company.CommentsClose CommentsPermalink
`(C) REPRESENTATION OF ORGANIZATIONS AND INSTITUTIONS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(D) MEETINGS- The board of directors of the development company shall meet on a regular basis to make policy decisions for such company.CommentsClose CommentsPermalink
`(8) PROFESSIONAL MANAGEMENT AND STAFF-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(9) MANAGEMENT AND OPERATION EXCEPTIONS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) a local nonprofit service corporation;CommentsClose CommentsPermalink
`(ii) a nonprofit affiliate of a local nonprofit service corporation;CommentsClose CommentsPermalink
`(iii) an entity wholly or partially operated by a governmental agency; orCommentsClose CommentsPermalink
`(iv) another entity approved by the Administrator.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) has such staff and management ability; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(b) Use of Excess Funds-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) operating reserves;CommentsClose CommentsPermalink
`(B) expanding the area in which the certified development company operates through the methods authorized by this Act; orCommentsClose CommentsPermalink
`(C) investment in other community and local economic development activity or community development primarily in the State from which such funds were generated.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(c) Ethical Requirements-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) PROHIBITED CONFLICT IN PROJECT LOANS-CommentsClose CommentsPermalink
`(A) IN GENERAL- No certified development company may--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(ii) provide, or be affiliated with a corporation or other entity which provides, financing collateralized by a first lien on the same property.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(d) Multistate Operations-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) is--CommentsClose CommentsPermalink
`(i) an accredited lender under section 507; orCommentsClose CommentsPermalink
`(ii) a premier certified lender under section 508;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(C) has a board of directors that contains not fewer than 2 members from each State in which the company makes loans;CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(E) submits to the Administrator, in writing--CommentsClose CommentsPermalink
`(i) a notice of the intention of the company to make loans in multiple States;CommentsClose CommentsPermalink
`(ii) the names of the States in which the company intends to make loans; andCommentsClose CommentsPermalink
`(iii) a detailed statement of how the company will comply with this paragraph, including a list of the members described in subparagraph (B).CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(5) SERVICE TO CERTIFIED DEVELOPMENT COMPANIES-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) EXCEPTION-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(I) such companies are not located in the same State;CommentsClose CommentsPermalink
`(II) each board of directors determines that the service by such person on such board does not constitute a conflict of interest; andCommentsClose CommentsPermalink
`(III) there is not a contractual relationship between--CommentsClose CommentsPermalink
`(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; orCommentsClose CommentsPermalink
`(bb) the certified development companies of which such person is a member of the board of directors.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(6) LOCAL JOB CREATION REQUIREMENTS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(8) LOCAL ECONOMIC AREA REQUIREMENT AND EXEMPTION-CommentsClose CommentsPermalink
`(A) DEFINITION- In this paragraph, the term `local economic area' means an area, as determined by the Administrator, that--CommentsClose CommentsPermalink
`(i) is in a State other than the State in which a development company is incorporated;CommentsClose CommentsPermalink
`(ii) shares a border with the area of operations of the development company; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(e) Restrictions on Development Company Assistance- '.CommentsClose CommentsPermalink
SEC. 192. CONFORMING AMENDMENTS.
Section 503 of the Small Business Investment Act of 1958 (
(1) in subsection (a)(1), by striking `qualified State or local development company' and inserting `certified development company'; andCommentsClose CommentsPermalink
(2) by striking subsection (e) and inserting the following:CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 193. CLOSING COSTS.
Section 503(b) of the Small Business Investment Act of 1958 (
`(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;'.CommentsClose CommentsPermalink
SEC. 194. DEFINITION OF RURAL.
Section 501 of the Small Business Investment Act of 1958 (
`(f) As used in this title, the term `rural' includes any area that is not--CommentsClose CommentsPermalink
`(1) a city or town that has a population greater than 50,000 inhabitants; orCommentsClose CommentsPermalink
`(2) the urbanized area contiguous and adjacent to a city or town described in paragraph (1).'.CommentsClose CommentsPermalink
SEC. 195. REGULATIONS AND EFFECTIVE DATE.
(a) In General- Except as provided in subsection (b), the Administrator shall--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(2) publish such rules in final form not later than 120 days after the date of publication under paragraph (1).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(c) Effective Date-CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
SEC. 196. LIMITATION ON TIME FOR FINAL APPROVAL OF COMPANIES.
Section 354(d) of the Small Business Investment Act of 1958 (
SEC. 197. CHILD CARE LENDING PILOT PROGRAM.
(a) Child Care Lending Pilot Program- Section 502 of the Small Business Investment Act of 1958 (
(1) in the matter preceding paragraph (1)--CommentsClose CommentsPermalink
(A) by striking `The Administration' and inserting the following:CommentsClose CommentsPermalink
`(a) Authorization- The Administration';CommentsClose CommentsPermalink
(B) by striking `and such loans' and inserting `. Such loans';CommentsClose CommentsPermalink
(C) by striking `: Provided, however, That the foregoing powers shall be subject to the following restrictions and limitations:' and inserting a period; andCommentsClose CommentsPermalink
(D) by adding at the end the following:CommentsClose CommentsPermalink
`(b) Restrictions and Limitations- The authority under subsection (a) shall be subject to the following restrictions and limitations:'; andCommentsClose CommentsPermalink
(2) in subsection (b)(1), as so redesignated--CommentsClose CommentsPermalink
(A) by inserting after `use of proceeds- ' the following:CommentsClose CommentsPermalink
`(A) IN GENERAL- '; andCommentsClose CommentsPermalink
(B) by adding at the end the following:CommentsClose CommentsPermalink
`(B) LOANS TO SMALL, NONPROFIT CHILD CARE BUSINESSES-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(I) the loan is used for a sound business purpose that has been approved by the Administrator;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(III) 1 or more individuals has personally guaranteed the loan;CommentsClose CommentsPermalink
`(IV) each such business has clear and singular title to the collateral for the loan;CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(iii) DEFINED TERM- For purposes of this subparagraph, the term `small, nonprofit child care business' means an establishment that--CommentsClose CommentsPermalink
`(I) is organized in accordance with section 501(c)(3) of the Internal Revenue Code of 1986;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(IV) is licensed as a child care provider by the State, insular area, or the District of Columbia, in which it is located.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
(b) Reports-CommentsClose CommentsPermalink
(1) SMALL BUSINESS ADMINISTRATION-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(i) the Committee on Small Business and Entrepreneurship of the Senate; andCommentsClose CommentsPermalink
(ii) the Committee on Small Business of the House of Representatives.CommentsClose CommentsPermalink
(B) CONTENTS- Each report under subparagraph (A) shall contain--CommentsClose CommentsPermalink
(i) the date on which the program is implemented;CommentsClose CommentsPermalink
(ii) the date on which the rules are issued under subsection (c); andCommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(I) with respect to nonprofit child care businesses; andCommentsClose CommentsPermalink
(II) with respect to for-profit child care businesses.CommentsClose CommentsPermalink
(2) GOVERNMENT ACCOUNTABILITY OFFICE-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(i) the Committee on Small Business and Entrepreneurship of the Senate; andCommentsClose CommentsPermalink
(ii) the Committee on Small Business of the House of Representatives.CommentsClose CommentsPermalink
(B) CONTENTS- The report under subparagraph (A) shall--CommentsClose CommentsPermalink
(i) contain information gathered during the first 2 years of the loan program, including--CommentsClose CommentsPermalink
(I) an evaluation of the timeliness of the implementation of the loan program;CommentsClose CommentsPermalink
(II) a description of the effectiveness and ease with which certified development companies, lenders, and small business concerns have participated in the loan program;CommentsClose CommentsPermalink
(III) a description and assessment of how the loan program was marketed;CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(aa) applied for a loan under the program (and whether it was a new or expanding child care provider);CommentsClose CommentsPermalink
(bb) were approved for a loan under the program; andCommentsClose CommentsPermalink
(cc) received a loan disbursement under the program (and whether they are a new or expanding child care provider); andCommentsClose CommentsPermalink
(V) with respect to businesses described under subclause (IV)(cc)--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(bb) the total amount loaned to such businesses under the program;CommentsClose CommentsPermalink
(cc) the total number of loans to such businesses under the program;CommentsClose CommentsPermalink
(dd) the average loan amount and term;CommentsClose CommentsPermalink
(ee) the currency rate, delinquencies, defaults, and losses of the loans;CommentsClose CommentsPermalink
(ff) the number and percent of children served who receive subsidized assistance; andCommentsClose CommentsPermalink
(gg) the number and percent of children served who are low income; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(C) ACCESS TO INFORMATION-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 198. DEBENTURE REPAYMENT.
Section 503(a) of the Small Business Investment Act of 1958 (
`(5) Any debenture that is issued under this section shall provide for the payment of principal and interest on a semiannual basis.'.CommentsClose CommentsPermalink
SEC. 199. REAL ESTATE APPRAISALS.
(a) In General- Section 7(a)(29) of the Small Business Act (
`(29) REAL ESTATE APPRAISALS-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) shall be required by the Administrator if the estimated value of that property is more than $400,000; andCommentsClose CommentsPermalink
`(ii) may be required by the Administrator or the lender if--CommentsClose CommentsPermalink
`(I) the estimated value of that property is less than $400,000; andCommentsClose CommentsPermalink
`(II) an appraisal is necessary for the appropriate evaluation of creditworthiness.CommentsClose CommentsPermalink
`(B) ADJUSTMENT- The Administrator--CommentsClose CommentsPermalink
`(i) shall periodically adjust the amount under subparagraph (A) to account for the effects of inflation; andCommentsClose CommentsPermalink
`(ii) may not make an adjustment under clause (i) in an amount less than $50,000.'.CommentsClose CommentsPermalink
(b) Conforming Amendment- Section 502(b)(3)(E), as so designated by section 197(a) of this Act, is amended--CommentsClose CommentsPermalink
(1) in clause (ii), by striking `$250,000' each place that term appears and inserting `$400,000'; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(iii) ADJUSTMENT- The Administrator--CommentsClose CommentsPermalink
`(I) shall periodically adjust the amount under clause (ii) to account for the effects of inflation; andCommentsClose CommentsPermalink
`(II) may not make an adjustment under subclause (I) in an amount less than $50,000.'.CommentsClose CommentsPermalink
TITLE II--SMALL BUSINESS VENTURE CAPITAL
Subtitle A--Small Business Investment Company Program
SEC. 221. REAUTHORIZATION.
Section 20 of the Small Business Act (
`(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--CommentsClose CommentsPermalink
`(1) $2,250,000,000 in guarantees of debentures for fiscal year 2008;CommentsClose CommentsPermalink
`(2) $2,500,000,000 in guarantees of debentures for fiscal year 2009; andCommentsClose CommentsPermalink
`(3) $2,750,000,000 in guarantees of debentures for fiscal year 2010.'.CommentsClose CommentsPermalink
SEC. 222. LEVERAGE.
(a) In General- Section 303(b)(2) of the Small Business Investment Act of 1958 (
`(2) MAXIMUM LEVERAGE-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) 300 percent of private capital; orCommentsClose CommentsPermalink
`(ii) $150,000,000.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(C) INVESTMENTS IN WOMEN-OWNED AND MINORITY-OWNED BUSINESSES AND IN LOW-INCOME GEOGRAPHIC AREAS-CommentsClose CommentsPermalink
`(i) IN GENERAL- The maximum amount of outstanding leverage made available to--CommentsClose CommentsPermalink
`(I) any 1 company described in clause (ii) may not exceed the lesser of--CommentsClose CommentsPermalink
`(aa) 300 percent of private capital; orCommentsClose CommentsPermalink
`(bb) $175,000,000; andCommentsClose CommentsPermalink
`(II) 2 or more companies described in clause (ii) that are commonly controlled (as determined by the Administrator) may not exceed $250,000,000.CommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(D) INVESTMENTS IN ENERGY SAVING SMALL BUSINESSES-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(ii) LIMITATIONS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink`(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.'.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
SEC. 223. INVESTMENTS IN SMALLER ENTERPRISES.
Section 303(d) of the Small Business Investment Act of 1958 (
`(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.'.CommentsClose CommentsPermalink
SEC. 224. MAXIMUM INVESTMENT IN A COMPANY.
Section 306(a) of the Small Business Investment Act of 1958 (
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 (
`(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.'.CommentsClose CommentsPermalink
(b) Participation in New Markets Venture Capital Program-CommentsClose CommentsPermalink
(1) ADMINISTRATION PARTICIPATION REQUIRED- Section 353 of the Small Business Investment Act of 1958 (
(2) SMALL MANUFACTURER PARTICIPATION- Section 353(1) of the Small Business Investment Act of 1958 (
SEC. 242. ESTABLISHMENT OF OFFICE OF NEW MARKETS VENTURE CAPITAL.
Title II of the Small Business Investment Act of 1958 (
`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.CommentsClose CommentsPermalink
`(b) Director- The head of the Office of New Markets Venture Capital shall be an individual appointed in the competitive service or excepted service.CommentsClose CommentsPermalink
`(c) Responsibilities of Director- The responsibilities of the head of the Office of New Markets Venture Capital include--CommentsClose CommentsPermalink
`(1) to administer the New Markets Venture Capital Program under part B of title III;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(3) to work to expand the number of small business concerns participating in the New Markets Venture Capital Program; andCommentsClose CommentsPermalink
`(4) to encourage investment in small manufacturing.'.CommentsClose CommentsPermalink
SEC. 243. LOW-INCOME GEOGRAPHIC AREAS.
(a) In General- Section 351 of the Small Business Investment Act of 1958 (
(1) by striking paragraph (2);CommentsClose CommentsPermalink
(2) by redesignating paragraphs (3) through (8) as paragraphs (2) through (7), respectively; andCommentsClose CommentsPermalink
(3) in paragraph (2), as so redesignated--CommentsClose CommentsPermalink
(A) in the matter preceding subparagraph (A)--CommentsClose CommentsPermalink
(i) by striking `the term' and inserting `The term'; andCommentsClose CommentsPermalink
(ii) by striking `means';CommentsClose CommentsPermalink
(B) by striking subparagraph (A) and inserting the following:CommentsClose CommentsPermalink
`(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'; andCommentsClose CommentsPermalink
(C) in subparagraph (B), in the matter preceding clause (i), by inserting `includes' before `any area'.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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 (
SEC. 245. OPERATIONAL ASSISTANCE GRANTS.
(a) In General- Section 358(a)(4)(A) of the Small Business Investment Act of 1958 (
`(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--CommentsClose CommentsPermalink
`(i) 10 percent of the private capital raised by the company; orCommentsClose CommentsPermalink
`(ii) $1,000,000.'.CommentsClose CommentsPermalink
(b) Conforming Amendment and Limitation on Time for Final Approval of Companies- Section 354(d) of the Small Business Investment Act of 1958 (
`(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.'.CommentsClose CommentsPermalink
SEC. 246. AUTHORIZATION.
Section 368(a) of the Small Business Investment Act of 1958 (
(1) in the matter preceding paragraph (1), by striking `fiscal years 2001 through 2006' and inserting `fiscal years 2008 through 2010'; andCommentsClose CommentsPermalink
(2) in paragraph (2), by striking `$30,000,000' and inserting `$20,000,000'.CommentsClose CommentsPermalink
TITLE III--SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT
Subtitle A--Reauthorization
SEC. 301. REAUTHORIZATION.
(a) In General- Section 20 of the Small Business Act (
`(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--CommentsClose CommentsPermalink
`(1) $7,000,000 in fiscal year 2008;CommentsClose CommentsPermalink
`(2) $8,000,000 in fiscal year 2009; andCommentsClose CommentsPermalink
`(3) $9,000,000 in fiscal year 2010.'.CommentsClose CommentsPermalink
(b) Small Business Development Centers- Section 21(a)(4)(C)(vii) of the Small Business Act (
`(vii) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this subparagraph--CommentsClose CommentsPermalink
`(I) $135,000,000 for fiscal year 2008;CommentsClose CommentsPermalink
`(II) $140,000,000 for fiscal year 2009; andCommentsClose CommentsPermalink
`(III) $145,000,000 for fiscal year 2010.'.CommentsClose CommentsPermalink
(c) Paul D. Coverdell Drug-Free Workplace Program-CommentsClose CommentsPermalink
(1) IN GENERAL- Section 27(g) of the Small Business Act (
(A) in paragraph (1), by striking `fiscal years 2005 and 2006' and inserting `fiscal years 2008 through 2010'; andCommentsClose CommentsPermalink
(B) in paragraph (2), by striking `fiscal years 2005 and 2006' and inserting `fiscal years 2008 through 2010'.CommentsClose CommentsPermalink
(2) CONFORMING AMENDMENT- Section 21(c)(3)(T) of the Small Business Act (
Subtitle B--Women's Small Business Ownership Programs
SEC. 311. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.
Section 29(g) of the Small Business Act (
(1) in paragraph (2)--CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
`(I) starting, operating, and growing a small business concern;'; andCommentsClose CommentsPermalink
(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'; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) manufacturing;CommentsClose CommentsPermalink
`(B) technology;CommentsClose CommentsPermalink
`(C) professional services;CommentsClose CommentsPermalink
`(D) retail and product sales;CommentsClose CommentsPermalink
`(E) travel and tourism;CommentsClose CommentsPermalink
`(F) international trade; andCommentsClose CommentsPermalink
`(G) Federal Government contract business development.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(C) reducing paperwork and reporting requirements for grant applicants and recipients;CommentsClose CommentsPermalink
`(D) standardizing the oversight and review process of the Administration; andCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 312. WOMEN'S BUSINESS CENTER PROGRAM.
(a) Women's Business Center Grants Program- Section 29 of the Small Business Act (
(1) in subsection (a)--CommentsClose CommentsPermalink
(A) by redesignating paragraphs (2), (3), and (4), as paragraphs (3), (4), and (5), respectively; andCommentsClose CommentsPermalink
(B) by inserting after paragraph (1) the following:CommentsClose CommentsPermalink
`(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;';CommentsClose CommentsPermalink
(2) in subsection (b)--CommentsClose CommentsPermalink
(A) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), and adjusting the margins accordingly;CommentsClose CommentsPermalink
(B) by striking `The Administration' and inserting the following:CommentsClose CommentsPermalink
`(1) IN GENERAL- The Administration';CommentsClose CommentsPermalink
(C) by striking `The projects shall' and inserting the following:CommentsClose CommentsPermalink
`(2) USE OF FUNDS- The projects shall'; andCommentsClose CommentsPermalink
(D) by adding at the end the following:CommentsClose CommentsPermalink
`(3) AMOUNT OF GRANTS-CommentsClose CommentsPermalink
`(A) IN GENERAL- The Administrator may award a grant under this subsection of not more than $150,000 per year.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(4) ASSOCIATIONS OF WOMEN'S BUSINESS CENTERS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) CONSULTATION- The Administrator shall consult with each association of women's business centers to develop--CommentsClose CommentsPermalink
`(i) a training program for the staff of the women's business centers and the Administration; andCommentsClose CommentsPermalink
`(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).';CommentsClose CommentsPermalink
(3) by striking subsection (f) and inserting the following:CommentsClose CommentsPermalink
`(f) Applications and Criteria for Initial Grants-CommentsClose CommentsPermalink
`(1) APPLICATION- Each organization desiring a grant under subsection (b) shall submit to the Administrator an application that contains--CommentsClose CommentsPermalink
`(A) a certification that the applicant--CommentsClose CommentsPermalink
`(i) is a private nonprofit organization;CommentsClose CommentsPermalink
`(ii) has designated an executive director or program manager, who may be compensated from grant funds or other sources, to manage the center; andCommentsClose CommentsPermalink
`(iii) as a condition of receiving a grant under subsection (b), agrees--CommentsClose CommentsPermalink
`(I) to receive a site visit as part of the final selection process;CommentsClose CommentsPermalink
`(II) to undergo an annual programmatic and financial examination; andCommentsClose CommentsPermalink
`(III) to the maximum extent practicable, to remedy any problems identified pursuant to the site visit or examination under subclauses (I) and (II);CommentsClose CommentsPermalink
`(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);CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(D) information demonstrating the effective experience of the applicant in--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(ii) providing training and services to a representative number of women who are both socially and economically disadvantaged; andCommentsClose CommentsPermalink
`(iii) using resource partners of the Administration and other entities, such as universities;CommentsClose CommentsPermalink
`(E) a 5-year plan that projects the ability of the women's business center site for which a grant is sought--CommentsClose CommentsPermalink
`(i) to serve women who are business owners or potential owners in the future by improving training and counseling activities; andCommentsClose CommentsPermalink
`(ii) to provide training and services to a representative number of women who are both socially and economically disadvantaged; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) REVIEW AND APPROVAL OF APPLICATIONS FOR AN INITIAL GRANT-CommentsClose CommentsPermalink
`(A) IN GENERAL- The Administrator shall--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) SELECTION CRITERIA-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(ii) REQUIRED CRITERIA- The selection criteria for a grant under subsection (b) shall include--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(II) the ability of the applicant to commence a project within a minimum amount of time;CommentsClose CommentsPermalink
`(III) the ability of the applicant to provide training and services to a representative number of women who are both socially and economically disadvantaged; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(D) RECORD RETENTION- The Administrator shall maintain a copy of each application submitted under this subsection for not less than 7 years.'; andCommentsClose CommentsPermalink
(4) in subsection (m), by striking paragraph (3) and inserting the following:CommentsClose CommentsPermalink
`(3) APPLICATION AND APPROVAL-CommentsClose CommentsPermalink
`(A) APPLICATION- Each organization desiring a grant this subsection, shall submit to the Administrator an application that contains--CommentsClose CommentsPermalink
`(i) a certification that the applicant--CommentsClose CommentsPermalink
`(I) is a private nonprofit organization;CommentsClose CommentsPermalink
`(II) has designated an executive director or program manager to manage the center; andCommentsClose CommentsPermalink
`(III) as a condition of receiving a grant under this subsection, agrees--CommentsClose CommentsPermalink
`(aa) to receive a site visit as part of the final selection process;CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(cc) to the maximum extent practicable, to remedy any problems identified pursuant to the site visit or examination under items (aa) and (bb);CommentsClose CommentsPermalink
`(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);CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(iv) information demonstrating the utilization of resource partners of the Administration and other entities;CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(I) to serve women who are business owners or potential owners in the future by improving training and counseling activities; andCommentsClose CommentsPermalink
`(II) to provide training and services to a representative number of women who are both socially and economically disadvantaged; andCommentsClose CommentsPermalink
`(vi) any additional information that the Administrator may reasonably require.CommentsClose CommentsPermalink
`(B) REVIEW AND APPROVAL OF APPLICATIONS FOR GRANTS-CommentsClose CommentsPermalink
`(i) IN GENERAL- The Administrator shall--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(ii) SELECTION CRITERIA-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(II) REQUIRED CRITERIA- The selection criteria for a grant under this subsection shall include--CommentsClose CommentsPermalink
`(aa) the total number of entrepreneurs served by the applicant;CommentsClose CommentsPermalink
`(bb) the total number of new start-up companies assisted by the applicant;CommentsClose CommentsPermalink
`(cc) the percentage of the clients of the applicant that are socially or economically disadvantaged; andCommentsClose CommentsPermalink
`(dd) the percentage of individuals in the community served by the applicant who are socially or economically disadvantaged.CommentsClose CommentsPermalink
`(iii) CONDITIONS FOR CONTINUED FUNDING- In determining whether to make a grant under this subsection, the Administrator--CommentsClose CommentsPermalink
`(I) shall consider the results of the most recent evaluation of the center, and, to a lesser extent, previous evaluations; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(D) RECORD RETENTION- The Administrator shall maintain a copy of each application submitted under this paragraph for not less than 7 years.'.CommentsClose CommentsPermalink
(b) Technical and Conforming Amendments- Section 29 of the Small Business Act (
15 U.S.C. 656 ) is amended--CommentsClose CommentsPermalink
(1) in subsection (h)(2), by striking `to award a contract (as a sustainability grant) under subsection (l) or';CommentsClose CommentsPermalink
(2) in subsection (j)(1), by striking `The Administration' and inserting `Not later than November 1st of each year, the Administrator';CommentsClose CommentsPermalink
(3) in subsection (k)--CommentsClose CommentsPermalink
(A) by striking paragraph (4);CommentsClose CommentsPermalink
(B) by redesignating paragraph (3) as paragraph (5); andCommentsClose CommentsPermalink
(C) by striking paragraphs (1) and (2) and inserting the following:CommentsClose CommentsPermalink
`(1) IN GENERAL- There are authorized to be appropriated to the Administration to carry out this section, to remain available until expended--CommentsClose CommentsPermalink
`(A) $20,000,000 for fiscal year 2008;CommentsClose CommentsPermalink
`(B) $20,500,000 for fiscal year 2009; andCommentsClose CommentsPermalink
`(C) $21,000,000 for fiscal year 2010.CommentsClose CommentsPermalink
`(2) ALLOCATION- Of amounts made available pursuant to paragraph (1), the Administrator shall use not less than 60 percent for grants under subsection (l).CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(4) CONTINUING GRANT AND COOPERATIVE AGREEMENT AUTHORITY-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.';CommentsClose CommentsPermalink
(4) in subsection (m)(4)(D), by striking `or subsection (l)'; andCommentsClose CommentsPermalink
(5) by redesignating subsections (m) and (n), as amended by this Act, as subsections (l) and (m), respectively.CommentsClose CommentsPermalink
SEC. 313. NATIONAL WOMEN'S BUSINESS COUNCIL.
(a) Cosponsorship Authority- Section 406 of the Women's Business Ownership Act of 1988 (
`(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.'.CommentsClose CommentsPermalink
(b) Membership- Section 407(f) of the Women's Business Ownership Act of 1988 (
`(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.'.CommentsClose CommentsPermalink
(c) Establishment of Working Groups- Title IV of the Women's Business Ownership Act of 1988 (
`SEC. 411. WORKING GROUPS.
`(a) Establishment- There are established within the Council, working groups, as directed by the chairperson.CommentsClose CommentsPermalink
`(b) Duties- The working groups established under subsection (a) shall perform such duties as the chairperson shall direct.'.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink`(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.'.CommentsClose CommentsPermalink
(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'.CommentsClose CommentsPermalink
SEC. 314. INTERAGENCY COMMITTEE ON WOMEN'S BUSINESS ENTERPRISE.
(a) Chairperson- Section 403(b) of the Women's Business Ownership Act of 1988 (
(1) by striking `Not later' and inserting the following:CommentsClose CommentsPermalink
`(1) IN GENERAL- Not later'; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(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).'.CommentsClose CommentsPermalink
(b) Policy Advisory Group- Section 401 of the Women's Business Ownership Act of 1988 (
(1) by striking `There' and inserting the following:CommentsClose CommentsPermalink
`(a) In General- There'; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(b) Policy Advisory Group-CommentsClose CommentsPermalink
`(1) ESTABLISHMENT- There is established a Policy Advisory Group to assist the chairperson in developing policies and programs under this Act.CommentsClose CommentsPermalink
`(2) MEMBERSHIP- The Policy Advisory Group shall be composed of 7 policy making officials, of whom--CommentsClose CommentsPermalink
`(A) 1 shall be a representative of the Small Business Administration;CommentsClose CommentsPermalink
`(B) 1 shall be a representative of the Department of Commerce;CommentsClose CommentsPermalink
`(C) 1 shall be a representative of the Department of Labor;CommentsClose CommentsPermalink
`(D) 1 shall be a representative of the Department of Defense;CommentsClose CommentsPermalink
`(E) 1 shall be a representative of the Department of the Treasury; andCommentsClose CommentsPermalink
`(F) 2 shall be representatives of the Council.CommentsClose CommentsPermalink
`(3) MEETINGS- The Policy Advisory Group established under paragraph (1) shall meet not less frequently than 3 times each year to--CommentsClose CommentsPermalink
`(A) plan activities for the new fiscal year;CommentsClose CommentsPermalink
`(B) track year-to-date agency contracting goals; andCommentsClose CommentsPermalink
`(C) evaluate the progress during the fiscal year and prepare an annual report.'.CommentsClose CommentsPermalink
SEC. 315. PRESERVING THE INDEPENDENCE OF THE NATIONAL WOMEN'S BUSINESS COUNCIL.
(a) Findings- Congress finds the following:CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the President;CommentsClose CommentsPermalink
(B) Congress;CommentsClose CommentsPermalink
(C) the Interagency Committee on Women's Business Enterprise; andCommentsClose CommentsPermalink
(D) the Administrator.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(b) Maintenance of Partisan Balance- Section 407(f) of the Women's Business Ownership Act of 1988 (
`(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.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(1) the difficulties such centers face in raising matching funds;CommentsClose CommentsPermalink
(2) the difficulties such centers face competing for grant, matching funds, or other types of assistance;CommentsClose CommentsPermalink
(3) the difficulties such centers face in writing grant proposals; andCommentsClose CommentsPermalink
(4) other difficulties such centers face because of the economy in the type of covered area in which such centers are located.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(2) expand the presence of, and increase the services provided by, women's business centers located in covered areas; andCommentsClose CommentsPermalink
(3) best use technology and other resources to better serve women business owners located in covered areas.CommentsClose CommentsPermalink
(c) Definition of Covered Area- In this section, the term `covered area' means--CommentsClose CommentsPermalink
(1) any State that is predominantly rural, as determined by the Administrator;CommentsClose CommentsPermalink
(2) any State that is predominantly urban, as determined by the Administrator; andCommentsClose CommentsPermalink
(3) any State or territory that is an island.CommentsClose CommentsPermalink
Subtitle C--International Trade
SEC. 321. SMALL BUSINESS ADMINISTRATION ASSOCIATE ADMINISTRATOR FOR INTERNATIONAL TRADE.
(a) Establishment- Section 22(a) of the Small Business Act (
(b) Authority for Additional Associate Administrator- Section 4(b)(1) of the Small Business Act (
(1) in the fifth sentence, by striking `five Associate Administrators' and inserting `Associate Administrators'; andCommentsClose CommentsPermalink
(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.'.CommentsClose CommentsPermalink
(c) Discharge of Administration International Trade Responsibilities- Section 22 of the Small Business Act (
`(h) Discharge of Administration International Trade Responsibilities- The Administrator shall ensure that--CommentsClose CommentsPermalink
`(1) the responsibilities of the Administration regarding international trade are carried out through the Associate Administrator for International Trade;CommentsClose CommentsPermalink
`(2) the Associate Administrator for International Trade has sufficient resources to carry out such responsibilities; andCommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
(d) Role of Associate Administrator in Carrying Out International Trade Policy- Section 2(b)(1) of the Small Business Act (
(1) by inserting `the Administrator of' before `the Small Business Administration'; andCommentsClose CommentsPermalink
(2) by inserting `through the Associate Administrator for International Trade, and' before `in cooperation with'.CommentsClose CommentsPermalink
(e) Technical Amendment- Section 22(c)(5) of the Small Business Act (
(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 (
SEC. 322. OFFICE OF INTERNATIONAL TRADE.
Section 22 of the Small Business Act (
(1) by striking `SEC. 22. (a) There' and inserting the following:CommentsClose CommentsPermalink
`SEC. 22. OFFICE OF INTERNATIONAL TRADE.
`(a) Establishment- There'.CommentsClose CommentsPermalink
(2) in subsection (a), by inserting `(referred to in this section as the `Office'),' after `Trade';CommentsClose CommentsPermalink
(3) in subsection (b)--CommentsClose CommentsPermalink
(A) by striking `The Office' and inserting the following:CommentsClose CommentsPermalink
`(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)'; andCommentsClose CommentsPermalink
(B) by amending paragraph (1) to read as follows:CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) trade promotion;CommentsClose CommentsPermalink
`(B) trade finance;CommentsClose CommentsPermalink
`(C) trade adjustment;CommentsClose CommentsPermalink
`(D) trade remedy assistance; andCommentsClose CommentsPermalink
`(E) trade data collection.';CommentsClose CommentsPermalink
(4) in subsection (c)--CommentsClose CommentsPermalink
(A) by redesignating paragraphs (1) through (8) as paragraphs (2) through (9), respectively;CommentsClose CommentsPermalink
(B) by inserting before paragraph (2), as so redesignated, the following:CommentsClose CommentsPermalink
`(1) establish annual goals for the Office relating to--CommentsClose CommentsPermalink
`(A) enhancing the exporting capability of small business concerns and small manufacturers;CommentsClose CommentsPermalink
`(B) facilitating technology transfers;CommentsClose CommentsPermalink
`(C) enhancing programs and services to assist small business concerns and small manufacturers to compete effectively and efficiently against foreign entities;CommentsClose CommentsPermalink
`(D) increasing the access to capital by small business concerns;CommentsClose CommentsPermalink
`(E) disseminating information concerning Federal, State, tribal, and private programs and initiatives; andCommentsClose CommentsPermalink
`(F) ensuring that the interests of small business concerns are adequately represented in trade negotiations;';CommentsClose CommentsPermalink
(C) in paragraph (2), as so redesignated, by striking `mechanism for' and all that follows through `(D)' and inserting the following: `mechanism for--CommentsClose CommentsPermalink
`(A) identifying subsectors of the small business community with strong export potential;CommentsClose CommentsPermalink
`(B) identifying areas of demand in foreign markets;CommentsClose CommentsPermalink
`(C) prescreening foreign buyers for commercial and credit purposes; andCommentsClose CommentsPermalink
`(D)'; andCommentsClose CommentsPermalink
(D) in paragraph (9), as so redesignated--CommentsClose CommentsPermalink
(i) in the matter preceding subparagraph (A)--CommentsClose CommentsPermalink
(I) by striking `full-time export development specialists to each Administration regional office and assigning'; andCommentsClose CommentsPermalink
(II) by striking `office. Such specialists' and inserting `office and providing each Administration regional office with a full-time export development specialist, who';CommentsClose CommentsPermalink
(ii) in subparagraph (D), by striking `and' at the end;CommentsClose CommentsPermalink
(iii) in subparagraph (E), by striking the period at the end and inserting a semicolon; andCommentsClose CommentsPermalink
(iv) by adding at the end the following:CommentsClose CommentsPermalink
`(F) participate jointly with employees of the Office in an annual training program that focuses on current small business needs for exporting; andCommentsClose CommentsPermalink
`(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.';CommentsClose CommentsPermalink
(5) in subsection (d)--CommentsClose CommentsPermalink
(A) by inserting `Export Financing Programs- ' after `(d)';CommentsClose CommentsPermalink
(B) by redesignating paragraphs (1) through (5) as clauses (i) through (v), respectively, and adjusting the margins accordingly;CommentsClose CommentsPermalink
(C) by striking `The Office shall work in cooperation' and inserting the following:CommentsClose CommentsPermalink
`(1) IN GENERAL- The Office shall work in cooperation'; andCommentsClose CommentsPermalink
(D) by striking `To accomplish this goal, the Office shall work' and inserting the following:CommentsClose CommentsPermalink
`(2) TRADE FINANCIAL SPECIALIST- To accomplish the goal established under paragraph (1), the Office shall--CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(B) work';CommentsClose CommentsPermalink
(6) in subsection (e), by inserting `Trade Remedies- ' after `(e)';CommentsClose CommentsPermalink
(7) by amending subsection (f) to read as follows:CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(1) a description of the progress of the Office in implementing the requirements of this section;CommentsClose CommentsPermalink
`(2) the destinations of travel by Office staff and benefits to the Administration and to small business concerns therefrom; andCommentsClose CommentsPermalink
`(3) a description of the participation by the Office in trade negotiations.';CommentsClose CommentsPermalink
(8) in subsection (g), by inserting `Studies- ' after `(g)'; andCommentsClose CommentsPermalink
(9) by adding at the end the following:CommentsClose CommentsPermalink
`(i) Export Assistance Centers-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink`(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--CommentsClose CommentsPermalink
`(A) had an Administration employee assigned to such center before January 2003; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(5) OVERSIGHT- The Office shall designate an individual within the Administration to oversee all activities conducted by Administration employees assigned to Export Centers.'.CommentsClose CommentsPermalink
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'.CommentsClose CommentsPermalink
SEC. 332. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.
The Small Business Act (
`SEC. 39. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.
`(a) Definitions- In this section--CommentsClose CommentsPermalink
`(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) );CommentsClose CommentsPermalink`(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) );CommentsClose CommentsPermalink`(3) the term `Assistant Administrator' means the Assistant Administrator of the Office of Native American Affairs established under subsection (b);CommentsClose CommentsPermalink
`(4) the terms `center' and `Native American business center' mean a center established under subsection (c);CommentsClose CommentsPermalink
`(5) the term `eligible applicant' means--CommentsClose CommentsPermalink
`(A) a tribal government;CommentsClose CommentsPermalink
`(B) a tribal college;CommentsClose CommentsPermalink
`(C) a Native Hawaiian Organization;CommentsClose CommentsPermalink
`(D) an Alaska Native corporation; orCommentsClose CommentsPermalink
`(E) a private, nonprofit organization--CommentsClose CommentsPermalink
`(i) that provides business and financial or procurement technical assistance to any entity described in subparagraph (A), (B), (C), or (D); andCommentsClose CommentsPermalink
`(ii) the majority of members of the board of directors of which are members of an Indian tribe;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(7) the term `Native American small business concern' means a small business concern that is owned and controlled by--CommentsClose CommentsPermalink
`(A) a member of an Indian tribe or tribal government;CommentsClose CommentsPermalink
`(B) an Alaska Native or Alaska Native corporation; orCommentsClose CommentsPermalink
`(C) a Native Hawaiian or Native Hawaiian Organization;CommentsClose CommentsPermalink
`(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 );CommentsClose CommentsPermalink`(9) the term `Native Hawaiian Organization' has the same meaning as in section 8(a)(15);CommentsClose CommentsPermalink
`(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) );CommentsClose CommentsPermalink`(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 ; andCommentsClose CommentsPermalink`(12) the term `tribal lands' means all lands within the exterior boundaries of any Indian reservation.CommentsClose CommentsPermalink
`(b) Office of Native American Affairs-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) PURPOSE- The purpose of the Office of Native American Affairs is to assist Native American entrepreneurs to--CommentsClose CommentsPermalink
`(A) start, operate, and grow small business concerns;CommentsClose CommentsPermalink
`(B) develop management and technical skills;CommentsClose CommentsPermalink
`(C) seek Federal procurement opportunities;CommentsClose CommentsPermalink
`(D) increase employment opportunities for Native Americans through the start and expansion of small business concerns; andCommentsClose CommentsPermalink
`(E) increase the access of Native Americans to capital markets.CommentsClose CommentsPermalink
`(3) ASSISTANT ADMINISTRATOR-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) QUALIFICATIONS- The Assistant Administrator appointed under subparagraph (A) shall have--CommentsClose CommentsPermalink
`(i) knowledge of the Native American culture; andCommentsClose CommentsPermalink
`(ii) experience providing culturally tailored small business development assistance to Native Americans.CommentsClose CommentsPermalink
`(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 insection 3132(a)(7) of title 5, United States Code .CommentsClose CommentsPermalink`(D) RESPONSIBILITIES AND DUTIES- The Assistant Administrator shall--CommentsClose CommentsPermalink
`(i) administer and manage the Native American Small Business Development program established under this section;CommentsClose CommentsPermalink
`(ii) recommend the annual administrative and program budgets for the Office of Native American Affairs;CommentsClose CommentsPermalink
`(iii) consult with Native American business centers in carrying out the program established under this section;CommentsClose CommentsPermalink
`(iv) recommend appropriate funding levels;CommentsClose CommentsPermalink
`(v) review the annual budgets submitted by each applicant for the Native American Small Business Development program;CommentsClose CommentsPermalink
`(vi) select applicants to participate in the program under this section;CommentsClose CommentsPermalink
`(vii) implement this section; andCommentsClose CommentsPermalink
`(viii) maintain a clearinghouse to provide for the dissemination and exchange of information between Native American business centers.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) Administration officials working in areas served by Native American business centers and Native American business enterprise centers;CommentsClose CommentsPermalink
`(ii) representatives of tribal governments;CommentsClose CommentsPermalink
`(iii) tribal colleges;CommentsClose CommentsPermalink
`(iv) Alaska Native corporations; andCommentsClose CommentsPermalink
`(v) Native Hawaiian Organizations.CommentsClose CommentsPermalink
`(c) Native American Small Business Development Program-CommentsClose CommentsPermalink
`(1) AUTHORIZATION-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) reservation-based American Indians;CommentsClose CommentsPermalink
`(ii) Alaska Natives; andCommentsClose CommentsPermalink
`(iii) Native Hawaiians.CommentsClose CommentsPermalink
`(2) 5-YEAR PROJECTS-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) financial education, including training and counseling in--CommentsClose CommentsPermalink
`(I) applying for and securing business credit and investment capital;CommentsClose CommentsPermalink
`(II) preparing and presenting financial statements; andCommentsClose CommentsPermalink
`(III) managing cash flow and other financial operations of a business concern;CommentsClose CommentsPermalink
`(ii) management education, including training and counseling in planning, organizing, staffing, directing, and controlling each major activity and function of a small business concern; andCommentsClose CommentsPermalink
`(iii) marketing education, including training and counseling in--CommentsClose CommentsPermalink
`(I) identifying and segmenting domestic and international market opportunities;CommentsClose CommentsPermalink
`(II) preparing and executing marketing plans;CommentsClose CommentsPermalink
`(III) developing pricing strategies;CommentsClose CommentsPermalink
`(IV) locating contract opportunities;CommentsClose CommentsPermalink
`(V) negotiating contracts; andCommentsClose CommentsPermalink
`(VI) utilizing varying public relations and advertising techniques.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) American Indians or tribal governments, and located on or near tribal lands;CommentsClose CommentsPermalink
`(ii) Alaska Natives or Alaska Native corporations; orCommentsClose CommentsPermalink
`(iii) Native Hawaiians or Native Hawaiian Organizations.CommentsClose CommentsPermalink
`(3) FORM OF FEDERAL FINANCIAL ASSISTANCE-CommentsClose CommentsPermalink
`(A) DOCUMENTATION-CommentsClose CommentsPermalink
`(i) IN GENERAL- The financial assistance to Native American business centers authorized under this subsection may be made by grant, contract, or cooperative agreement.CommentsClose CommentsPermalink
`(ii) EXCEPTION- Financial assistance under this subsection to Alaska Native corporations or Native Hawaiian Organizations may only be made by grant.CommentsClose CommentsPermalink
`(B) PAYMENTS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(5) APPLICATION PROCESS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) CRITERIA-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(iii) CONSIDERATIONS- The criteria required by this paragraph shall include--CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(II) the ability of the applicant to commence a project within a minimum amount of time;CommentsClose CommentsPermalink
`(III) the ability of the applicant to provide quality training and services to a significant number of Native Americans;CommentsClose CommentsPermalink
`(IV) previous assistance from the Administration to provide services in Native American communities; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(6) PROGRAM EXAMINATION-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(B) ADMINISTRATION ACTION- Based on information received under subparagraph (A), the Administration shall--CommentsClose CommentsPermalink
`(i) develop and implement an annual programmatic and financial examination of each Native American business center assisted pursuant to this subsection; andCommentsClose CommentsPermalink
`(ii) analyze the results of each examination conducted under clause (i) to determine the programmatic and financial viability of each Native American business center.CommentsClose CommentsPermalink
`(C) CONDITIONS FOR CONTINUED FUNDING- In determining whether to renew a grant, contract, or cooperative agreement with a Native American business center, the Administration--CommentsClose CommentsPermalink
`(i) shall consider the results of the most recent examination of the center under subparagraph (B), and, to a lesser extent, previous examinations; andCommentsClose CommentsPermalink
`(ii) may withhold such renewal, if the Administration determines that--CommentsClose CommentsPermalink
`(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; orCommentsClose CommentsPermalink
`(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).CommentsClose CommentsPermalink
`(D) CONTINUING CONTRACT AND COOPERATIVE AGREEMENT AUTHORITY-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(E) MANAGEMENT REPORT-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(ii) CONTENTS- Each report submitted under clause (i) shall include, with respect to each Native American business center receiving financial assistance under this subsection--CommentsClose CommentsPermalink
`(I) the number of individuals receiving assistance from the Native American business center;CommentsClose CommentsPermalink
`(II) the number of startup business concerns created;CommentsClose CommentsPermalink
`(III) the number of existing businesses seeking to expand employment;CommentsClose CommentsPermalink
`(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;CommentsClose CommentsPermalink
`(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; andCommentsClose CommentsPermalink
`(VI) the most recent examination, as required under subparagraph (B), and the subsequent determination made by the Administration under that subparagraph.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(A) the number of individuals assisted, categorized by ethnicity;CommentsClose CommentsPermalink
`(B) the number of hours spent providing counseling and training for those individuals;CommentsClose CommentsPermalink
`(C) the number of startup small business concerns created or maintained;CommentsClose CommentsPermalink
`(D) the gross receipts of assisted small business concerns;CommentsClose CommentsPermalink
`(E) the number of jobs created or maintained at assisted small business concerns; andCommentsClose CommentsPermalink
`(F) the number of Native American jobs created or maintained at assisted small business concerns.CommentsClose CommentsPermalink
`(8) RECORD RETENTION-CommentsClose CommentsPermalink
`(A) APPLICATIONS- The Administration shall maintain a copy of each application submitted under this subsection for not less than 7 years.CommentsClose CommentsPermalink
`(B) ANNUAL REPORTS- The Administration shall maintain copies of the information collected under paragraph (6)(A) indefinitely.CommentsClose CommentsPermalink
`(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).'.CommentsClose CommentsPermalink
SEC. 333. PILOT PROGRAMS.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(b) Native American Development Grant Pilot Program-CommentsClose CommentsPermalink
(1) AUTHORIZATION-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) ELIGIBLE ORGANIZATIONS- The grants authorized under subparagraph (A) may be awarded to--CommentsClose CommentsPermalink
(i) any small business development center; orCommentsClose CommentsPermalink
(ii) any private, nonprofit organization that--CommentsClose CommentsPermalink
(I) has members of an Indian tribe comprising a majority of its board of directors;CommentsClose CommentsPermalink
(II) is a Native Hawaiian Organization; orCommentsClose CommentsPermalink
(III) is an Alaska Native corporation.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(2) CONDITIONS FOR PARTICIPATION- Each entity desiring a grant under this subsection shall submit an application to the Administration that contains--CommentsClose CommentsPermalink
(A) a certification that the applicant--CommentsClose CommentsPermalink
(i) is a small business development center or a private, nonprofit organization under paragraph (1)(B);CommentsClose CommentsPermalink
(ii) employs an executive director or program manager to manage the facility; andCommentsClose CommentsPermalink
(iii) agrees--CommentsClose CommentsPermalink
(I) to a site visit as part of the final selection process;CommentsClose CommentsPermalink
(II) to an annual programmatic and financial examination; andCommentsClose CommentsPermalink
(III) to the maximum extent practicable, to remedy any problems identified pursuant to that site visit or examination;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(C) information relating to proposed assistance that the grant will provide, including--CommentsClose CommentsPermalink
(i) the number of individuals to be assisted; andCommentsClose CommentsPermalink
(ii) the number of hours of counseling, training, and workshops to be provided;CommentsClose CommentsPermalink
(D) information demonstrating the effective experience of the applicant in--CommentsClose CommentsPermalink
(i) conducting financial, management, and marketing assistance programs designed to impart or upgrade the business skills of current or prospective Native American business owners;CommentsClose CommentsPermalink
(ii) providing training and services to a representative number of Native Americans;CommentsClose CommentsPermalink
(iii) using resource partners of the Administration and other entities, including universities, tribal governments, or tribal colleges; andCommentsClose CommentsPermalink
(iv) the prudent management of finances and staffing;CommentsClose CommentsPermalink
(E) the location where the applicant will provide training and services to Native Americans; andCommentsClose CommentsPermalink
(F) a multiyear plan, corresponding to the length of the grant, that describes--CommentsClose CommentsPermalink
(i) the number of Native Americans and Native American small business concerns to be served by the grant;CommentsClose CommentsPermalink
(ii) in the continental United States, the number of Native Americans to be served by the grant; andCommentsClose CommentsPermalink
(iii) the training and services to be provided to a representative number of Native Americans.CommentsClose CommentsPermalink
(3) REVIEW OF APPLICATIONS- The Administration shall--CommentsClose CommentsPermalink
(A) evaluate and rank applicants under paragraph (2) in accordance with predetermined selection criteria that is stated in terms of relative importance;CommentsClose CommentsPermalink
(B) include such criteria in each solicitation under this subsection and make such information available to the public; andCommentsClose CommentsPermalink
(C) approve or disapprove each completed application submitted under this subsection not later than 60 days after the date of submission.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the number of individuals assisted, categorized by ethnicity;CommentsClose CommentsPermalink
(B) the number of hours spent providing counseling and training for those individuals;CommentsClose CommentsPermalink
(C) the number of startup small business concerns created or maintained with assistance from a Native American business center;CommentsClose CommentsPermalink
(D) the gross receipts of assisted small business concerns;CommentsClose CommentsPermalink
(E) the number of jobs created or maintained at assisted small business concerns; andCommentsClose CommentsPermalink
(F) the number of Native American jobs created or maintained at assisted small business concerns.CommentsClose CommentsPermalink
(5) RECORD RETENTION-CommentsClose CommentsPermalink
(A) APPLICATIONS- The Administration shall maintain a copy of each application submitted under this subsection for not less than 7 years.CommentsClose CommentsPermalink
(B) ANNUAL REPORTS- The Administration shall maintain copies of the information collected under paragraph (4) indefinitely.CommentsClose CommentsPermalink
(c) American Indian Tribal Assistance Center Grant Pilot Program-CommentsClose CommentsPermalink
(1) AUTHORIZATION-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) ELIGIBLE ORGANIZATIONS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(D) GRANT DURATION- Each grant under this subsection shall be awarded for a 3-year period.CommentsClose CommentsPermalink
(2) CONDITIONS FOR PARTICIPATION- Each entity desiring a grant under this subsection shall submit to the Administration a joint application that contains--CommentsClose CommentsPermalink
(A) a certification that each participant of the joint application--CommentsClose CommentsPermalink
(i) is either a Native American business center, a Native American business enterprise center, or a small business development center;CommentsClose CommentsPermalink
(ii) employs an executive director or program manager to manage the center; andCommentsClose CommentsPermalink
(iii) as a condition of receiving an American Indian Tribal Assistance Center grant, agrees--CommentsClose CommentsPermalink
(I) to an annual programmatic and financial examination; andCommentsClose CommentsPermalink
(II) to the maximum extent practicable, to remedy any problems identified pursuant to that examination;CommentsClose CommentsPermalink
(B) information demonstrating an historic commitment to providing assistance to Native Americans--CommentsClose CommentsPermalink
(i) residing on or near tribal lands; orCommentsClose CommentsPermalink
(ii) operating a small business concern on or near tribal lands;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(D) information relating to proposed assistance that the grant will provide, including--CommentsClose CommentsPermalink
(i) the number of individuals to be assisted; andCommentsClose CommentsPermalink
(ii) the number of hours of counseling, training, and workshops to be provided;CommentsClose CommentsPermalink
(E) information demonstrating the effective experience of each participant of the joint application in--CommentsClose CommentsPermalink
(i) conducting financial, management, and marketing assistance programs, designed to impart or upgrade the business skills of current or prospective Native American business owners; andCommentsClose CommentsPermalink
(ii) the prudent management of finances and staffing; andCommentsClose CommentsPermalink
(F) a plan for the length of the grant, that describes--CommentsClose CommentsPermalink
(i) the number of Native Americans and Native American small business concerns to be served by the grant; andCommentsClose CommentsPermalink
(ii) the training and services to be provided.CommentsClose CommentsPermalink
(3) REVIEW OF APPLICATIONS- The Administration shall--CommentsClose CommentsPermalink
(A) evaluate and rank applicants under paragraph (2) in accordance with predetermined selection criteria that is stated in terms of relative importance;CommentsClose CommentsPermalink
(B) include such criteria in each solicitation under this subsection and make such information available to the public; andCommentsClose CommentsPermalink
(C) approve or disapprove each application submitted under this subsection not later than 60 days after the date of submission.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the number of individuals assisted, categorized by ethnicity;CommentsClose CommentsPermalink
(B) the number of hours of counseling and training provided and workshops conducted;CommentsClose CommentsPermalink
(C) the number of startup business concerns created or maintained with assistance from a Native American business center;CommentsClose CommentsPermalink
(D) the gross receipts of assisted small business concerns;CommentsClose CommentsPermalink
(E) the number of jobs created or maintained at assisted small business concerns; andCommentsClose CommentsPermalink
(F) the number of Native American jobs created or maintained at assisted small business concerns.CommentsClose CommentsPermalink
(5) RECORD RETENTION-CommentsClose CommentsPermalink
(A) APPLICATIONS- The Administration shall maintain a copy of each application submitted under this subsection for not less than 7 years.CommentsClose CommentsPermalink
(B) ANNUAL REPORTS- The Administration shall maintain copies of the information collected under paragraph (4) indefinitely.CommentsClose CommentsPermalink
(d) Authorization of Appropriations- There are authorized to be appropriated--CommentsClose CommentsPermalink
(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); andCommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
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'.CommentsClose CommentsPermalink
SEC. 342. PURPOSE.
The purpose of this subtitle is to establish a 4-year pilot program to--CommentsClose CommentsPermalink
(1) provide confidential assistance to small business concerns;CommentsClose CommentsPermalink
(2) provide small business concerns with the information necessary to improve their rate of compliance with Federal and State regulations derived from Federal law;CommentsClose CommentsPermalink
(3) create a partnership among Federal agencies to increase outreach efforts to small business concerns with respect to regulatory compliance;CommentsClose CommentsPermalink
(4) provide a mechanism for unbiased feedback to Federal agencies on the regulatory environment for small business concerns; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 343. SMALL BUSINESS REGULATORY ASSISTANCE PILOT PROGRAM.
(a) Definitions- In this section:CommentsClose CommentsPermalink
(1) ASSOCIATION- The term `association' means the association established pursuant to section 21(a)(3)(A) of the Small Business Act (
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(c) Small Business Development Centers-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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 (
(B) conduct training and educational activities;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(D) provide technical assistance;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(F) form partnerships with Federal compliance programs.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) a summary of the regulatory compliance assistance provided by the center under the pilot program;CommentsClose CommentsPermalink
(B) the number of small business concerns assisted under the pilot program; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(e) Selection of Participating Small Business Development Centers-CommentsClose CommentsPermalink
(1) GROUPINGS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) GROUPS- The groups described in this subparagraph as follows:CommentsClose CommentsPermalink
(i) GROUP 1- Group 1 shall consist of Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode Island.CommentsClose CommentsPermalink
(ii) GROUP 2- Group 2 shall consist of New York, New Jersey, Puerto Rico, and the Virgin Islands.CommentsClose CommentsPermalink
(iii) GROUP 3- Group 3 shall consist of Pennsylvania, Maryland, West Virginia, Virginia, the District of Columbia, and Delaware.CommentsClose CommentsPermalink
(iv) GROUP 4- Group 4 shall consist of Georgia, Alabama, North Carolina, South Carolina, Mississippi, Florida, Kentucky, and Tennessee.CommentsClose CommentsPermalink
(v) GROUP 5- Group 5 shall consist of Illinois, Ohio, Michigan, Indiana, Wisconsin, and Minnesota.CommentsClose CommentsPermalink
(vi) GROUP 6- Group 6 shall consist of Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.CommentsClose CommentsPermalink
(vii) GROUP 7- Group 7 shall consist of Missouri, Iowa, Nebraska, and Kansas.CommentsClose CommentsPermalink
(viii) GROUP 8- Group 8 shall consist of Colorado, Wyoming, North Dakota, South Dakota, Montana, and Utah.CommentsClose CommentsPermalink
(ix) GROUP 9- Group 9 shall consist of California, Guam, American Samoa, Hawaii, Nevada, and Arizona.CommentsClose CommentsPermalink
(x) GROUP 10- Group 10 shall consist of Washington, Alaska, Idaho, and Oregon.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(f) Matching Requirement- Subparagraphs (A) and (B) of section 21(a)(4) of the Small Business Act (
(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--CommentsClose CommentsPermalink
(1) not less than $150,000 per fiscal year; andCommentsClose CommentsPermalink
(2) not more than $300,000 per fiscal year.CommentsClose CommentsPermalink
(h) Evaluation and Report- The Comptroller General of the United States shall--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the results of the evaluation; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(j) Authorization of Appropriations-CommentsClose CommentsPermalink
(1) IN GENERAL- There are authorized to be appropriated to carry out this section--CommentsClose CommentsPermalink
(A) $5,000,000 for the first fiscal year beginning after the date of enactment of this Act; andCommentsClose CommentsPermalink
(B) $5,000,000 for each of the 3 fiscal years following the fiscal year described in subparagraph (A).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(1) priorities for the types of assistance to be provided under the pilot program established under this subtitle;CommentsClose CommentsPermalink
(2) standards relating to educational, technical, and support services to be provided by participating small business development centers;CommentsClose CommentsPermalink
(3) standards relating to any national service delivery and support function to be provided by the association under the pilot program;CommentsClose CommentsPermalink
(4) standards relating to any work plan that the Administrator may require a participating small business development center to develop; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
Subtitle F--Other Provisions
SEC. 351. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT PROGRAM.
(a) Definitions- In this section--CommentsClose CommentsPermalink
(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 (
(2) the term `Hispanic serving institution' has the meaning given the term in section 502 of the Higher Education Act of 1965 (
(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 (
(4) the term `small business development center' has the same meaning as in section 21 of the Small Business Act (
(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 (
(b) Minority Entrepreneurship and Innovation Grants-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) to assist in establishing an entrepreneurship curriculum for undergraduate or graduate studies; andCommentsClose CommentsPermalink
(B) for placement of small business development centers on the physical campus of the institution.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) business management and marketing, financial management and accounting, market analysis and competitive analysis, innovation and strategic planning; andCommentsClose CommentsPermalink
(B) additional entrepreneurial skill sets specific to the needs of the student population and the surrounding community, as determined by the institution.CommentsClose CommentsPermalink
(3) SMALL BUSINESS DEVELOPMENT CENTER REQUIREMENT- Each institution receiving a grant under this subsection shall open a small business development center that--CommentsClose CommentsPermalink
(A) performs studies, research, and counseling concerning the management, financing, and operation of small business concerns;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(C) offers referral services for entrepreneurs and small business concerns to business development, financing, and legal experts; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(4) GRANT LIMITATIONS- A grant under this subsection--CommentsClose CommentsPermalink
(A) may not exceed $500,000 for any fiscal year for any 1 institution of higher education;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(5) EXCEPTION FROM SMALL BUSINESS ACT REQUIREMENT- Subparagraphs (A) and (B) of section 21(a)(4) of the Small Business Act (
(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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(B) the number of small business concerns assisted by each small business development center established with a grant under this subsection; andCommentsClose CommentsPermalink
(C) data regarding the economic impact of the small business development center counseling provided under a grant under this subsection.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 352. INSTITUTIONS OF HIGHER EDUCATION.
(a) In General- Section 21(a)(1) of the Small Business Act (
(b) Effective Date- The amendment made by subsection (a) shall take effect on December 31, 2008.CommentsClose CommentsPermalink
SEC. 353. HEALTH INSURANCE OPTIONS INFORMATION FOR SMALL BUSINESS CONCERNS.
(a) Definitions- In this section, the following definitions shall apply:CommentsClose CommentsPermalink
(1) ASSOCIATION- The term `association' means an association established under section 21(a)(3)(A) of the Small Business Act (
(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 (
(A) is accredited under section 21(k)(2) of the Small Business Act (
(B) receives a grant under the pilot program.CommentsClose CommentsPermalink
(3) PILOT PROGRAM- The term `pilot program' means the small business health insurance information pilot program established under this section.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(c) Applications-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the requirements of an application for a grant under the pilot program; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(d) Selection of Participating Small Business Development Centers-CommentsClose CommentsPermalink
(1) IN GENERAL- The Administrator shall select not more than 20 small business development centers to receive a grant under the pilot program.CommentsClose CommentsPermalink
(2) SELECTION OF PROGRAMS- In selecting small business development centers under paragraph (1), the Administrator may not select--CommentsClose CommentsPermalink
(A) more than 2 programs from each of the groups of States described in paragraph (3); andCommentsClose CommentsPermalink
(B) more than 1 program in any State.CommentsClose CommentsPermalink
(3) GROUPINGS- The groups of States described in this paragraph are the following:CommentsClose CommentsPermalink
(A) GROUP 1- Group 1 shall consist of Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode Island.CommentsClose CommentsPermalink
(B) GROUP 2- Group 2 shall consist of New York, New Jersey, Puerto Rico, and the Virgin Islands.CommentsClose CommentsPermalink
(C) GROUP 3- Group 3 shall consist of Pennsylvania, Maryland, West Virginia, Virginia, the District of Columbia, and Delaware.CommentsClose CommentsPermalink
(D) GROUP 4- Group 4 shall consist of Georgia, Alabama, North Carolina, South Carolina, Mississippi, Florida, Kentucky, and Tennessee.CommentsClose CommentsPermalink
(E) GROUP 5- Group 5 shall consist of Illinois, Ohio, Michigan, Indiana, Wisconsin, and Minnesota.CommentsClose CommentsPermalink
(F) GROUP 6- Group 6 shall consist of Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.CommentsClose CommentsPermalink
(G) GROUP 7- Group 7 shall consist of Missouri, Iowa, Nebraska, and Kansas.CommentsClose CommentsPermalink
(H) GROUP 8- Group 8 shall consist of Colorado, Wyoming, North Dakota, South Dakota, Montana, and Utah.CommentsClose CommentsPermalink
(I) GROUP 9- Group 9 shall consist of California, Guam, American Samoa, Hawaii, Nevada, and Arizona.CommentsClose CommentsPermalink
(J) GROUP 10- Group 10 shall consist of Washington, Alaska, Idaho, and Oregon.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(e) Use of Funds-CommentsClose CommentsPermalink
(1) IN GENERAL- A participating small business development center shall use funds provided under the pilot program to--CommentsClose CommentsPermalink
(A) create and distribute informational materials; andCommentsClose CommentsPermalink
(B) conduct training and educational activities.CommentsClose CommentsPermalink
(2) CONTENT OF MATERIALS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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 (
(f) Grant Amounts- Each participating small business development center program shall receive a grant in an amount equal to--CommentsClose CommentsPermalink
(1) not less than $150,000 per fiscal year; andCommentsClose CommentsPermalink
(2) not more than $300,000 per fiscal year.CommentsClose CommentsPermalink
(g) Matching Requirement- Subparagraphs (A) and (B) of section 21(a)(4) of the Small Business Act (
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(2) the number of small business concerns assisted under the pilot program.CommentsClose CommentsPermalink
(i) Authorization of Appropriations-CommentsClose CommentsPermalink
(1) IN GENERAL- There are authorized to be appropriated to carry out this section--CommentsClose CommentsPermalink
(A) $5,000,000 for the first fiscal year beginning after the date of enactment of this Act; andCommentsClose CommentsPermalink
(B) $5,000,000 for each of the 3 fiscal years following the fiscal year described in subparagraph (A).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 354. NATIONAL SMALL BUSINESS DEVELOPMENT CENTER ADVISORY BOARD.
Section 21(i)(1) of the Small Business Act (
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.CommentsClose CommentsPermalink
(b) Authorization- The Office of Native American Affairs of the Administration may conduct a pilot program--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the Administration;CommentsClose CommentsPermalink
(B) the Department of Energy;CommentsClose CommentsPermalink
(C) the Environmental Protection Agency;CommentsClose CommentsPermalink
(D) the Department of Commerce;CommentsClose CommentsPermalink
(E) the Federal Communications Commission;CommentsClose CommentsPermalink
(F) the Department of Justice;CommentsClose CommentsPermalink
(G) the Department of Labor;CommentsClose CommentsPermalink
(H) the Office of National Drug Control Policy; andCommentsClose CommentsPermalink
(I) the Department of Agriculture.CommentsClose CommentsPermalink
(c) Termination of Program- The authority to conduct a pilot program under this section shall terminate on September 30, 2010.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
SEC. 356. PRIVACY REQUIREMENTS FOR SCORE CHAPTERS.
Section 8 of the Small Business Act (
`(c) Privacy Requirements-CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(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; orCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) ADMINISTRATOR USE OF INFORMATION- This subsection shall not--CommentsClose CommentsPermalink
`(A) restrict Administrator access to program activity data; orCommentsClose CommentsPermalink
`(B) prevent the Administrator from using client information to conduct client surveys.CommentsClose CommentsPermalink
`(3) REGULATIONS-CommentsClose CommentsPermalink
`(A) IN GENERAL- The Administrator shall issue regulations to establish standards--CommentsClose CommentsPermalink
`(i) for disclosures with respect to financial audits under paragraph (1)(B); andCommentsClose CommentsPermalink
`(ii) for client surveys under paragraph (2)(B), including standards for oversight of such surveys and for dissemination and use of client information.CommentsClose CommentsPermalink
`(B) MAXIMUM PRIVACY PROTECTION- Regulations under this paragraph shall, to the extent practicable, provide for the maximum amount of privacy protection.CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
SEC. 358. SCORE PROGRAM.
(a) In General- Section 8(b)(1)(B) of the Small Business Act (
(b) Technical and Conforming Amendments-CommentsClose CommentsPermalink
(1) IN GENERAL- The Small Business Act (
(A) in section 7(m)(3)(A)(i)(VIII), by striking `Service Corps of Retired Executives' and inserting `SCORE'; andCommentsClose CommentsPermalink
(B) in section 33(b)(2), by striking `Service Corps of Retired Executives' and inserting `SCORE'.CommentsClose CommentsPermalink
(2) OTHER LAW- Section 337(d)(2) of the Energy Policy and Conservation Act (
(c) References- Any reference to the Service Corps of Retired Executives established under section 8(b)(1)(B) of the Small Business Act (
TITLE IV--LENDER OVERSIGHT
SEC. 401. FINDINGS.
Congress finds the following:CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(A) Determining the success of the loan programs under section 7(a) of the Small Business Act (
(B) `The current measures do not indicate how well the agency is meeting its strategic goal of helping small businesses.'.CommentsClose CommentsPermalink
(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.'.CommentsClose CommentsPermalink
(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.'.CommentsClose CommentsPermalink
SEC. 402. DEFINITIONS.
In this title--CommentsClose CommentsPermalink
(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 (
(2) the term `covered lender' means--CommentsClose CommentsPermalink
(A) a lender participating in the guarantee loan program under section 7(a) of the Small Business Act (
(B) a State or local development company participating in the 504 Loan Program;CommentsClose CommentsPermalink
(3) the term `covered loan recipient' means a person that receives a loan under section 7(a) of the Small Business Act (
(4) the term `economic performance evaluation measurements' means the economic performance evaluation measurements established under section 407(a); andCommentsClose CommentsPermalink
(5) the term `portfolio quality evaluation standards' means the portfolio quality evaluation standards established under section 404(a)(1).CommentsClose CommentsPermalink
SEC. 403. AUTHORITY.
Section 5 of the Small Business Act (
(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'; andCommentsClose CommentsPermalink
(2) by adding at the end the following:CommentsClose CommentsPermalink
`(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.'.CommentsClose CommentsPermalink
SEC. 404. PORTFOLIO QUALITY EVALUATION STANDARDS.
(a) Standards-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) a liquidation rate;CommentsClose CommentsPermalink
(B) a currency rate;CommentsClose CommentsPermalink
(C) a recovery rate;CommentsClose CommentsPermalink
(D) a delinquency rate; andCommentsClose CommentsPermalink
(E) other portfolio risk indicators.CommentsClose CommentsPermalink
(2) USE- The Administration shall use the portfolio quality evaluation standards--CommentsClose CommentsPermalink
(A) to determine the portfolio quality of a covered lender, in comparison to the portfolio quality of all covered lenders; andCommentsClose CommentsPermalink
(B) for conducting lender oversight of covered lenders.CommentsClose CommentsPermalink
(b) Implementation- The Administrator shall--CommentsClose CommentsPermalink
(1) rank and determine a separate score for each covered lender, on each of the portfolio quality evaluation standards;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(3) provide a covered lender access to--CommentsClose CommentsPermalink
(A) the score of that covered lender for each of the portfolio quality evaluation standards; andCommentsClose CommentsPermalink
(B) the overall portfolio quality score for that covered lender; andCommentsClose CommentsPermalink
(4) provide a written explanation of the factors affecting the score described in paragraph (3)(A) for a covered lender to that covered lender.CommentsClose CommentsPermalink
(c) Quarterly Evaluations- Not less frequently than once each quarter, the Administrator shall evaluate each covered lender to determine whether--CommentsClose CommentsPermalink
(1) there has been a statistically significant adverse change in the criteria evaluated under the portfolio quality evaluation standards relating to a covered lender; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(d) Additional Onsite Review-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) determine the reason for such deterioration;CommentsClose CommentsPermalink
(B) determine if the deterioration should lead to an onsite review of the loan portfolio of that covered lender;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(D) document the decision by the Administrator regarding whether to conduct an onsite review or adjust the loan making status of that covered lender; andCommentsClose CommentsPermalink
(E) inform that covered lender of any statistically adverse change in loan quality of the portfolio of that covered lender.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(3) SCOPE OF REVIEW- Any onsite review of a covered lender under this subsection shall focus on--CommentsClose CommentsPermalink
(A) the credit quality of the loans within the portfolio of that covered lender;CommentsClose CommentsPermalink
(B) the soundness of the credit evaluation and underwriting processes and procedures of that covered lender;CommentsClose CommentsPermalink
(C) the adherence by that covered lender to the policies and procedures of the Administration; andCommentsClose CommentsPermalink
(D) any other measures that the Administrator determines appropriate.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(1) loans under section 7(a) of the Small Business Act (
(2) loans under the 504 Loan Program; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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).CommentsClose CommentsPermalink
(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 (
SEC. 406. COMPUTER MODELING.
(a) Transparency in Ranking Criteria- The Administrator--CommentsClose CommentsPermalink
(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); andCommentsClose CommentsPermalink
(2) may not charge a fee for providing the information described in paragraph (1).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(1) number of individuals employed by that covered loan recipient;CommentsClose CommentsPermalink
(2) the annual sales receipts of that covered loan recipient;CommentsClose CommentsPermalink
(3) an estimate of the total annual Federal income tax paid by that covered loan recipient;CommentsClose CommentsPermalink
(4) whether the covered loan recipient prepaid the covered loan;CommentsClose CommentsPermalink
(5) whether the covered loan recipient defaulted on the covered loan;CommentsClose CommentsPermalink
(6) the number of businesses operated by covered loan recipients that cease operations; andCommentsClose CommentsPermalink
(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 (
(b) Collection of Information-CommentsClose CommentsPermalink
(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 (
(A) the number of individuals employed by the applicant;CommentsClose CommentsPermalink
(B) the annual sales receipts of the applicant for the year before the date of the application; andCommentsClose CommentsPermalink
(C) an estimate of the total annual Federal income tax paid by that covered loan recipient.CommentsClose CommentsPermalink
(2) BASE YEAR- The Administrator shall use the information collected under paragraph (1) to establish the base year statistics for the applicant.CommentsClose CommentsPermalink
(3) INFORMATION COMPLIANCE-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) FREQUENCY- The Administrator shall request information from a covered loan recipient under subparagraph (A) not less frequently than once every 4 years.CommentsClose CommentsPermalink
(c) Reporting-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(2) PERIOD- The period described in this paragraph is--CommentsClose CommentsPermalink
(A) for the first report submitted under this subsection, not shorter than the 4-year period before the date of that report;CommentsClose CommentsPermalink
(B) for the second report submitted under this subsection, not shorter than the 8-year period before the date of that report; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
SEC. 409. EXECUTIVE COMPENSATION.
Section 503 of the Small Business Investment Act of 1958 (
`(j) Executive Compensation-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(2) APPROVAL BY BOARD OF DIRECTORS-CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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--CommentsClose CommentsPermalink
`(i) determine the fair market value of the benefits received by an executive or highly paid employee from that development company; andCommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(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.CommentsClose CommentsPermalink
`(4) EXCEPTION- This subsection shall not apply to--CommentsClose CommentsPermalink
`(A) a small State or local development company;CommentsClose CommentsPermalink
`(B) a State or local development company that makes a low number of loans under the 504 Loan Program; orCommentsClose CommentsPermalink
`(C) a State or local development company regulated by a State or local government.CommentsClose CommentsPermalink
`(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'.'.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(1) the scope of lender oversight needed by the Administration;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(4) how examination and review fees factor into the risk-adjusted return on capital (or `RAROC') ratings of lenders;CommentsClose CommentsPermalink
(5) what would be reasonable fees to be charged for Administration lender oversight;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
Calendar No. 720CommentsClose CommentsPermalink
To reauthorize and improve the financing and entrepreneurial development programs of the Small Business Administration, and for other purposes.CommentsClose CommentsPermalink
April 28, 2008
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