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Veterans Entrepreneurship and Small Business Development Act of 1999 -National Guard and Reserve Member Entrepreneurial Issues

One Hundred Sixth Congress of the United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,    the sixth day of January, one thousand nine hundred and ninety-nine


                                 An Act to provide technical, financial, and procurement assistance to veteran owned small businesses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Entrepreneurship and Small Business Development Act of 1999''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.

TITLE I--GENERAL PROVISIONS

Sec. 101. Findings.
Sec. 102. Purpose.
Sec. 103. Definitions.

TITLE II--VETERANS BUSINESS DEVELOPMENT

Sec. 201. Veterans business development in the Small Business Administration.
Sec. 202. National Veterans Business Development Corporation.
Sec. 203. Advisory Committee on Veterans Business Affairs.

TITLE III--TECHNICAL ASSISTANCE

Sec. 301. SCORE program.
Sec. 302. Entrepreneurial assistance.
Sec. 303. Business development and management assistance for military reservists' small businesses.

TITLE IV--FINANCIAL ASSISTANCE

Sec. 401. General business loan program.
Sec. 402. Assistance to active duty military reservists.
Sec. 403. Microloan program.
Sec. 404. Defense Economic Transition Loan Program.
Sec. 405. State development company program.

TITLE V--PROCUREMENT ASSISTANCE

Sec. 501. Subcontracting.
Sec. 502. Participation in Federal procurement.

TITLE VI--REPORTS AND DATA COLLECTION

Sec. 601. Reporting requirements.
Sec. 602. Report on small business and competition.
Sec. 603. Annual report of the Administrator.
Sec. 604. Data and information collection.

TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Administrator's order.
Sec. 702. Small Business Administration Office of Advocacy.
Sec. 703. Study of fixed-asset small business loans.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FINDINGS.

    Congress finds the following:
        (1) Veterans of the United States Armed Forces have been and continue to be vital to the small business enterprises of the United States.
        (2) In serving the United States, veterans often faced great risks to preserve the American dream of freedom and prosperity.
        (3) The United States has done too little to assist veterans, particularly service-disabled veterans, in playing a greater role in the economy of the United States by forming and expanding small business enterprises.
        (4) Medical advances and new medical technologies have made it possible for service-disabled veterans to play a much more active role in the formation and expansion of small business enterprises in the United States.
        (5) The United States must provide additional assistance and support to veterans to better equip them to form and expand small business enterprises, thereby enabling them to realize the American dream that they fought to protect.

SEC. 102. PURPOSE.

    The purpose of this Act is to expand existing and establish new assistance programs for veterans who own or operate small businesses.
This Act accomplishes this purpose by--
        (1) expanding the eligibility for certain small business assistance programs to include veterans;
        (2) directing certain departments and agencies of the United States to take actions that enhance small business assistance to veterans; and
        (3) establishing new institutions to provide small business assistance to veterans or to support the institutions that provide such assistance.

SEC. 103. DEFINITIONS.

    (a) Small Business Act.--Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:
    ``(q) Definitions Relating to Veterans.--In this Act, the following definitions apply:
        ``(1) Service-disabled veteran.--The term `service-disabled veteran' means a veteran with a disability that is service-connected (as defined in section 101(16) of title 38, United States Code).
        ``(2) Small business concern owned and controlled by service-disabled veterans.--The term `small business concern owned and controlled by service-disabled veterans' means a small business concern--
            ``(A) not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
            ``(B) the management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
        ``(3) Small business concern owned and controlled by veterans.--The term `small business concern owned and controlled by veterans' means a small business concern--
            ``(A) not less than 51 percent of which is owned by one or more veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and

         ``(B) the management and daily business operations of which are controlled by one or more veterans.
        ``(4) Veteran.--The term `veteran' has the meaning given the term in section 101(2) of title 38, United States Code.''.
    (b) Applicability to This Act.--In this Act, the definitions contained in section 3(q) of the Small Business Act, as added by this section, apply.

                TITLE II--VETERANS BUSINESS DEVELOPMENT

SEC. 201. VETERANS BUSINESS DEVELOPMENT IN THE SMALL BUSINESS
              ADMINISTRATION.

    (a) In General.--Section 4(b)(1) of the Small Business Act (15
U.S.C. 633(b)(1)) is amended--
        (1) in the fifth sentence, by striking ``four Associate Administrators'' and inserting ``five Associate Administrators''; and
        (2) by inserting after the fifth sentence the following: ``One such Associate Administrator shall be the Associate Administrator for Veterans Business Development, who shall administer the Office of Veterans Business Development established under section 32.''.
    (b) Office of Veterans Business Development; Associate Administrator.--The Small Business Act (15 U.S.C. 631 et seq.) is amended--
        (1) by redesignating section 32 as section 34; and
        (2) by inserting after section 31 the following:

``SEC. 32. VETERANS PROGRAMS.

    ``(a) Office of Veterans Business Development.--There is established in the Administration an Office of Veterans Business Development, which shall be administered by the Associate Administrator for Veterans Business Development (in this section referred to as the `Associate Administrator') appointed under section 4(b)(1).
    ``(b) Associate Administrator for Veterans Business Development.--
The Associate Administrator--
        ``(1) shall be an appointee in the Senior Executive Service;
        ``(2) shall be responsible for the formulation, execution, and promotion of policies and programs of the Administration that provide assistance to small business concerns owned and controlled by veterans and small business concerns owned and controlled by service-disabled veterans. The Associate Administrator shall act as an ombudsman for full consideration of veterans in all programs of the Administration; and
        ``(3) shall report to and be responsible directly to the Administrator.''.

SEC. 202. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is amended by inserting after section 32 (as added by this Act) the following:

``SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.

    ``(a) Establishment.--There is established a federally chartered corporation to be known as the National Veterans Business Development Corporation (in this section referred to as the `Corporation') which shall be incorporated under the laws of the District of Columbia and which shall have the powers granted in this section. 

   ``(b) Purposes of the Corporation.--The purposes of the
Corporation shall be--
        ``(1) to expand the provision of and improve access to technical assistance regarding entrepreneurship for the Nation's
    veterans; and
        ``(2) to assist veterans, including service-disabled veterans,
    with the formation and expansion of small business concerns by
    working with and organizing public and private resources, including
    those of the Small Business Administration, the Department of
    Veterans Affairs, the Department of Labor, the Department of
    Commerce, the Department of Defense, the Service Corps of Retired
    Executives (described in section 8(b)(1)(B) of this Act), the Small
    Business Development Centers (described in section 21 of this Act),
    and the business development staffs of each department and agency
    of the United States.
    ``(c) Board of Directors.--
        ``(1) In general.--The management of the Corporation shall be
    vested in a Board of Directors composed of nine voting members and
    three nonvoting ex officio members.
        ``(2) Appointment of voting members.--The President shall,
    after considering recommendations which shall be proposed by the
    Chairmen and Ranking Members of the Committees on Small Business
    and the Committees on Veterans Affairs of the House of
    Representatives and the Senate, appoint United States citizens to
    be voting members of the Board, not more than five of whom shall be
    members of the same political party.
        ``(3) Ex officio members.--The Administrator of the Small
    Business Administration, the Secretary of Defense, and the
    Secretary of Veterans Affairs shall serve as the nonvoting ex
    officio members of the Board of Directors.
        ``(4) Initial appointments.--The initial members of the Board
    of Directors shall be appointed not later than 60 days after the
    date of enactment of this Act.
        ``(5) Chairperson.--The members of the Board of Directors
    appointed under paragraph (2) shall elect one such member to serve
    as chairperson of the Board of Directors for a term of 2 years.
        ``(6) Terms of appointed members.--
            ``(A) In general.--Each member of the Board of Directors
        appointed under paragraph (2) shall serve a term of 6 years,
        except as provided in subparagraph (B).
            ``(B) Terms of initial appointees.--As designated by the
        President at the time of appointment, of the members first
        appointed--
                ``(i) three shall be for a term of 2 years; and
                ``(ii) three shall be for a term of 4 years.
            ``(C) Unexpired terms.--Any member of the Board of
        Directors appointed to fill a vacancy occurring before the
        expiration of the term for which the member's predecessor was
        appointed shall be appointed only for the remainder of the
        term. A member may serve after the expiration of that member's
        term until a successor has taken office.
        ``(7) Vacancies.--Any vacancy on the Board of Directors shall
    be filled in the manner in which the original appointment was made.
    In the case of a vacancy in the office of the Administrator of the
    Small Business Administration or the Secretary of Veterans Affairs,
    and pending the appointment of a successor, an acting appointee for
    such vacancy may serve as an ex officio member.
        ``(8) Ineligibility for other offices.--No voting member of the
    Board of Directors may be an officer or employee of the United
    States while serving as a member of the Board of Directors or
    during the 2-year period preceding such service.
        ``(9) Impartiality and nondiscrimination.--The Board of
    Directors shall administer the affairs of the Corporation fairly
    and impartially and without discrimination.
        ``(10) Obligations and expenses.--The Board of Directors shall
    prescribe the manner in which the obligations of the Corporation
    may be incurred and in which its expenses shall be allowed and
    paid.
        ``(11) Quorum.--Five voting members of the Board of Directors
    shall constitute a quorum, but a lesser number may hold hearings.
    ``(d) Corporate Powers.--On October 1, 1999, the Corporation shall
become a body corporate and as such shall have the authority to do the
following:
        ``(1) To adopt and use a corporate seal.
        ``(2) To have succession until dissolved by an Act of
    Congress.
        ``(3) To make contracts or grants.
        ``(4) To sue and be sued, and to file and defend against
    lawsuits in State or Federal court.
        ``(5) To appoint, through the actions of its Board of
    Directors, officers and employees of the Corporation, to define
    their duties and responsibilities, fix their compensations, and to
    dismiss at will such officers or employees.
        ``(6) To prescribe, through the actions of its Board of
    Directors, bylaws not inconsistent with Federal law and the law of
    the State of incorporation, regulating the manner in which its
    general business may be conducted and the manner in which the
    privileges granted to it by law may be exercised.
        ``(7) To exercise, through the actions of its Board of
    Directors or duly authorized officers, all powers specifically
    granted by the provisions of this section, and such incidental
    powers as shall be necessary.
        ``(8) To solicit, receive, and disburse funds from private,
    Federal, State and local organizations.
        ``(9) To accept and employ or dispose of in furtherance of the
    purposes of this section any money or property, real, personal, or
    mixed, tangible or intangible, received by gift, devise, bequest,
    or otherwise.
        ``(10) To accept voluntary and uncompensated services.
    ``(e) Corporate Funds.--
        ``(1) Deposit of funds.--The Board of Directors shall deposit
    all funds of the Corporation in federally chartered and insured
    depository institutions until such funds are disbursed under
    paragraph (2).
        ``(2) Disbursement of funds.--Funds of the Corporation may be
    disbursed only for purposes that are--
            ``(A) approved by the Board of Directors by a recorded vote
        with a quorum present; and
            ``(B) in accordance with the purposes of the Corporation as
        specified in subsection (b).
    ``(f) Network of Information and Assistance Centers.--In carrying
out the purpose described in subsection (b), the Corporation shall
establish and maintain a network of information and assistance centers
for use by veterans and the public.
    ``(g) Annual Report.--On or before October 1 of each year, the
Board of Directors shall transmit a report to the President and the
Congress describing the activities and accomplishments of the
Corporation for the preceding year and the Corporation's findings
regarding the efforts of Federal, State and private organizations to
assist veterans in the formation and expansion of small business
concerns.
    ``(h) Assumption of Duties of Advisory Committee.--On October 1,
2004, the Corporation established under this section shall assume the
duties, responsibilities, and authority of the Advisory Committee on
Veterans Affairs established under section 203 of this Act.
    ``(i) Use of Mails.--The Corporation may use the United States
mails in the same manner and under the same conditions as the
departments and agencies of the United States.
    ``(j) Professional Certification Advisory Board.--
        ``(1) In general.--Acting through the Board of Directors, the
    Corporation shall establish a Professional Certification Advisory
    Board to create uniform guidelines and standards for the
    professional certification of members of the Armed Services to aid
    in their efficient and orderly transition to civilian occupations
    and professions and to remove potential barriers in the areas of
    licensure and certification.
        ``(2) Membership.--The members of the Advisory Board shall
    serve without compensation, shall meet in the District of Columbia
    no less than quarterly, and shall be appointed by the Board of
    Directors as follows:
            ``(A) Private sector members.--The Corporation shall
        appoint not less than seven members for terms of 2 years to
        represent private sector organizations and associations,
        including the American Association of Community Colleges, the
        Society for Human Resource Managers, the Coalition for
        Professional Certification, the Council on Licensure and
        Enforcement, and the American Legion.
            ``(B) Public sector members.--The Corporation shall invite
        public sector members to serve at the discretion of their
        departments or agencies and shall--
                ``(i) encourage the participation of the Under
            Secretary of Defense for Personnel and Readiness;
                ``(ii) encourage the participation of two officers from
            each branch of the Armed Forces to represent the Training
            Commands of their branch; and
                ``(iii) seek the participation and guidance of the
            Assistant Secretary of Labor for Veterans' Employment and
            Training.
    ``(k) Authorization of Appropriations.--
        ``(1) In general.--Subject to paragraph (2), there are
    authorized to be appropriated to the Corporation to carry out this
    section--
            ``(A) $2,000,000 for fiscal year 2000;
            ``(B) $4,000,000 for fiscal year 2001;
            ``(C) $4,000,000 for fiscal year 2002; and
            ``(D) $2,000,000 for fiscal year 2003.
        ``(2) Matching requirement.--
            ``(A) Fiscal year 2001.--The amount made available to the
        Corporation for fiscal year 2001 may not exceed twice the
        amount that the Corporation certifies that it will provide for
        that fiscal year from sources other than the Federal
        Government.
            ``(B) Subsequent fiscal years.--The amount made available
        to the Corporation for fiscal year 2002 or 2003 may not exceed
        the amount that the Corporation certifies that it will provide
        for that fiscal year from sources other than the Federal
        Government.
        ``(3) Privatization.--The Corporation shall institute and
    implement a plan to raise private funds and become a self-
    sustaining corporation.''.
    (b) GAO Report.--Not later than 180 days after the last day of the
second fiscal year beginning after the date on which the initial
members of the Board of Directors of the National Veterans Business
Development Corporation are appointed under section 33(c) of the Small
Business Act (as added by this section), the Comptroller General of the
United States shall evaluate the effectiveness of the National Veterans
Business Development Corporation in carrying out the purposes under
section 33(b) of the Small Business Act (as added by this section), and
submit to Congress a report on the results of that evaluation.

SEC. 203. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

    (a) In General.--There is established an advisory committee to be
known as the ``Advisory Committee on Veterans Business Affairs'' (in
this section referred to as the ``Committee''), which shall serve as an
independent source of advice and policy recommendations to--
        (1) the Administrator of the Small Business Administration (in
    this section referred to as the ``Administrator'');
        (2) the Associate Administrator for Veterans Business
    Development of the Small Business Administration;
        (3) the Congress;
        (4) the President; and
        (5) other United States policymakers.
    (b) Membership.--
        (1) In general.--The Committee shall be composed of 15 members,
    of whom--
            (A) eight shall be veterans who are owners of small
        business concerns (within the meaning of the term under section
        3 of the Small Business Act (15 U.S.C. 632)); and
            (B) seven shall be representatives of veterans
        organizations.
        (2) Appointment.--
            (A) In general.--The members of the Committee shall be
        appointed by the Administrator in accordance with this section.
            (B) Initial appointments.--Not later than 90 days after the
        date of the enactment of this Act, the Administrator shall
        appoint the initial members of the Committee.
        (3) Political affiliation.--Not more than eight members of the
    Committee shall be of the same political party as the President.
        (4) Prohibition on federal employment.--
            (A) In general.--Except as provided in subparagraph (B), no
        member of the Committee may serve as an officer or employee of
        the United States.
            (B) Exception.--A member of the Committee who accepts a
        position as an officer or employee of the United States after
        the date of the member's appointment to the Committee may
        continue to serve on the Committee for not more than 30 days
        after such acceptance.
        (5) Term of service.--
            (A) In general.--Subject to subparagraph (B), the term of
        service of each member of the Committee shall be 3 years.
            (B) Terms of initial appointees.--As designated by the
        Administrator at the time of appointment, of the members first
        appointed--
                (i) six shall be appointed for a term of 4 years; and
                (ii) five shall be appointed for a term of 5 years.
        (6) Vacancies.--The Administrator shall fill any vacancies on
    the membership of the Committee not later than 30 days after the
    date on which such vacancy occurs.
        (7) Chairperson.--
            (A) In general.--The members of the Committee shall elect
        one of the members to be Chairperson of the Committee.
            (B) Vacancies in office of chairperson.--Any vacancy in the
        office of the Chairperson of the Committee shall be filled by
        the Committee at the first meeting of the Committee following
        the date on which the vacancy occurs.
    (c) Duties.--The duties of the Committee shall be the following:
        (1) Review, coordinate, and monitor plans and programs
    developed in the public and private sectors, that affect the
    ability of small business concerns owned and controlled by veterans
    to obtain capital and credit and to access markets.
        (2) Promote the collection of business information and survey
    data as they relate to veterans and small business concerns owned
    and controlled by veterans.
        (3) Monitor and promote plans, programs, and operations of the
    departments and agencies of the United States that may contribute
    to the formation and growth of small business concerns owned and
    controlled by veterans.
        (4) Develop and promote initiatives, policies, programs, and
    plans designed to foster small business concerns owned and
    controlled by veterans.
        (5) In cooperation with the National Veterans Business
    Development Corporation, develop a comprehensive plan, to be
    updated annually, for joint public-private sector efforts to
    facilitate growth and development of small business concerns owned
    and controlled by veterans.
    (d) Powers.--
        (1) Hearings.--Subject to subsection (e), the Committee may
    hold such hearings, sit and act at such times and places, take such
    testimony, and receive such evidence as the Committee considers
    advisable to carry out its duties.
        (2) Information from federal agencies.--Upon request of the
    Chairperson of the Committee, the head of any department or agency
    of the United States shall furnish such information to the
    Committee as the Committee considers to be necessary to carry out
    its duties.
        (3) Use of mails.--The Committee may use the United States
    mails in the same manner and under the same conditions as other
    departments and agencies of the United States.
        (4) Gifts.--The Committee may accept, use, and dispose of gifts
    or donations of services or property.
    (e) Meetings.--
        (1) In general.--The Committee shall meet, not less than three
    times per year, at the call of the Chairperson or at the request of
    the Administrator.
        (2) Location.--Each meeting of the full Committee shall be held
    at the headquarters of the Small Business Administration located in
    Washington, District of Columbia. The Administrator shall provide
    suitable meeting facilities and such administrative support as may
    be necessary for each full meeting of the Committee.
        (3) Task groups.--The Committee may, from time-to-time,
    establish temporary task groups as may be necessary in order to
    carry out its duties.
    (f) Compensation and Expenses.--
        (1) No compensation.--Members of the Committee shall serve
    without compensation for their service to the Committee.
        (2) Expenses.--The members of the Committee shall be reimbursed
    for travel and subsistence expenses in accordance with section 5703
    of title 5, United States Code.
    (g) Report.--Not later than 30 days after the end of each fiscal
year beginning after the date of the enactment of this section, the
Committee shall transmit to the Congress and the President a report
describing the activities of the Committee and any recommendations
developed by the Committee for the promotion of small business concerns
owned and controlled by veterans.
    (h) Termination.--The Committee shall terminate its business on
September 30, 2004.

                    TITLE III--TECHNICAL ASSISTANCE

SEC. 301. SCORE PROGRAM.

    (a) In General.--The Administrator of the Small Business
Administration shall enter into a memorandum of understanding with the
Service Core of Retired Executives (described in section 8(b)(1)(B) of
the Small Business Act (15 U.S.C. 637(b)(1)(B)) and in this section
referred to as ``SCORE'') to provide for the following:
        (1) The appointment by SCORE in its national office of an
    individual to act as National Veterans Business Coordinator, whose
    duties shall relate exclusively to veterans business matters, and
    who shall be responsible for the establishment and administration
    of a program to coordinate counseling and training regarding
    entrepreneurship to veterans through the chapters of SCORE
    throughout the United States.
        (2) The assistance of SCORE in the establishing and maintaining
    a toll-free telephone number and an Internet website to provide
    access for veterans to information about the counseling and
    training regarding entrepreneurship available to veterans through
    SCORE.
        (3) The collection of statistics concerning services provided
    by SCORE to veterans, including service-disabled veterans, for
    inclusion in each annual report published by the Administrator
    under section 4(b)(2)(B) of the Small Business Act (15 U.S.C.
    633(b)(2)(B)).
    (b) Resources.--The Administrator shall provide to SCORE such
resources as the Administrator determines necessary for SCORE to carry
out the requirements of the memorandum of understanding specified in
paragraph (1).

SEC. 302. ENTREPRENEURIAL ASSISTANCE.

    Not later than 180 days after the date of the enactment of this
Act, the Secretary of Veterans Affairs, the Administrator of the Small
Business Administration, and the head of the association formed
pursuant to section 21(a)(3)(A) of the Small Business Act (15 U.S.C.
648(a)(3)(A)) shall enter into a memorandum of understanding with
respect to entrepreneurial assistance to veterans, including service-
disabled veterans, through Small Business Development Centers
(described in section 21 of the Small Business Act (15 U.S.C. 648)) and
facilities of the Department of Veterans Affairs. Such assistance shall
include the following:
        (1) Conducting of studies and research, and the distribution of
    information generated by such studies and research, on the
    formation, management, financing, marketing, and operation of small
    business concerns by veterans.
        (2) Provision of training and counseling to veterans concerning
    the formation, management, financing, marketing, and operation of
    small business concerns.
        (3) Provision of management and technical assistance to the
    owners and operators of small business concerns regarding
    international markets, the promotion of exports, and the transfer
    of technology.
        (4) Provision of assistance and information to veterans
    regarding procurement opportunities with Federal, State, and local
    agencies, especially such agencies funded in whole or in part with
    Federal funds.
        (5) Establishment of an information clearinghouse to collect
    and distribute information, including by electronic means, on the
    assistance programs of Federal, State, and local governments, and
    of the private sector, including information on office locations,
    key personnel, telephone numbers, mail and electronic addresses,
    and contracting and subcontracting opportunities.
        (6) Provision of Internet or other distance learning academic
    instruction for veterans in business subjects, including
    accounting, marketing, and business fundamentals.
        (7) Compilation of a list of small business concerns owned and
    controlled by service-disabled veterans that provide products or
    services that could be procured by the United States and delivery
    of such list to each department and agency of the United States.
    Such list shall be delivered in hard copy and electronic form and
    shall include the name and address of each such small business
    concern and the products or services that it provides.

SEC. 303. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY
              RESERVISTS' SMALL BUSINESSES.

    (a) In General.--Section 8 of the Small Business Act (15 U.S.C.
637) is amended by adding at the end the following:
    ``(l) Management Assistance for Small Businesses Affected by
Military Operations.--The Administration shall utilize, as appropriate,
its entrepreneurial development and management assistance programs,
including programs involving State or private sector partners, to
provide business counseling and training to any small business concern
adversely affected by the deployment of units of the Armed Forces of
the United States in support of a period of military conflict (as
defined in section 7(n)(1)).''.
    (b) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendment made by this section,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
    (c) Guidelines.--Not later than 30 days after the date of the
enactment of this section, the Administrator of the Small Business
Administration shall issue such guidelines as the Administrator
determines to be necessary to carry out this section and the amendment
made by this section.

                     TITLE IV--FINANCIAL ASSISTANCE

SEC. 401. GENERAL BUSINESS LOAN PROGRAM.

    (a) Definition of Handicapped Individual.--Section 3(f) of the
Small Business Act (15 U.S.C. 632(f)) is amended to read as follows:
    ``(f) For purposes of section 7 of this Act, the term `handicapped
individual' means an individual--
        ``(1) who has a physical, mental, or emotional impairment,
    defect, ailment, disease, or disability of a permanent nature which
    in any way limits the selection of any type of employment for which
    the person would otherwise be qualified or qualifiable; or
        ``(2) who is a service-disabled veteran.''.
    (b) Authorization To Make Loans.--Section 7(a)(10) of the Small
Business Act (15 U.S.C. 636(a)(10)) is amended--
        (1) by inserting ``guaranteed'' after ``provide''; and
        (2) by inserting ``, including service-disabled veterans,''
    after ``handicapped individual''.

SEC. 402. ASSISTANCE TO ACTIVE DUTY MILITARY RESERVISTS.

    (a) Repayment Deferral for Active Duty Reservists.--
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following:
    ``(n) Repayment Deferred for Active Duty Reservists.--
        ``(1) Definitions.--In this subsection:
            ``(A) Eligible reservist.--The term `eligible reservist'
        means a member of a reserve component of the Armed Forces
        ordered to active duty during a period of military conflict.
            ``(B) Essential employee.--The term `essential employee'
        means an individual who is employed by a small business concern
        and whose managerial or technical expertise is critical to the
        successful day-to-day operations of that small business
        concern.
            ``(C) Period of military conflict.--The term `period of
        military conflict' means--
                ``(i) a period of war declared by the Congress;
                ``(ii) a period of national emergency declared by the
            Congress or by the President; or
                ``(iii) a period of a contingency operation, as defined
            in section 101(a) of title 10, United States Code.
            ``(D) Qualified borrower.--The term `qualified borrower'
        means--
                ``(i) an individual who is an eligible reservist and
            who received a direct loan under subsection (a) or (b)
            before being ordered to active duty; or
                ``(ii) a small business concern that received a direct
            loan under subsection (a) or (b) before an eligible
            reservist, who is an essential employee, was ordered to
            active duty.
        ``(2) Deferral of direct loans.--
            ``(A) In general.--The Administration shall, upon written
        request, defer repayment of principal and interest due on a
        direct loan made under subsection (a) or (b), if such loan was
        incurred by a qualified borrower.
            ``(B) Period of deferral.--The period of deferral for
        repayment under this paragraph shall begin on the date on which
        the eligible reservist is ordered to active duty and shall
        terminate on the date that is 180 days after the date such
        eligible reservist is discharged or released from active duty.
            ``(C) Interest rate reduction during deferral.--
        Notwithstanding any other provision of law, during the period
        of deferral described in subparagraph (B), the Administration
        may, in its discretion, reduce the interest rate on any loan
        qualifying for a deferral under this paragraph.
        ``(3) Deferral of loan guarantees and other financings.--The
    Administration shall--
            ``(A) encourage intermediaries participating in the program
        under subsection (m) to defer repayment of a loan made with
        proceeds made available under that subsection, if such loan was
        incurred by a small business concern that is eligible to apply
        for assistance under subsection (b)(3); and
            ``(B) not later than 30 days after the date of the
        enactment of this subsection, establish guidelines to--
                ``(i) encourage lenders and other intermediaries to
            defer repayment of, or provide other relief relating to,
            loan guarantees under subsection (a) and financings under
            section 504 of the Small Business Investment Act of 1958
            that were incurred by small business concerns that are
            eligible to apply for assistance under subsection (b)(3),
            and loan guarantees provided under subsection (m) if the
            intermediary provides relief to a small business concern
            under this paragraph; and
                ``(ii) implement a program to provide for the deferral
            of repayment or other relief to any intermediary providing
            relief to a small business borrower under this
            paragraph.''.
    (b) Disaster Loan Assistance for Military Reservists' Small
Businesses.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting after the undesignated paragraph that begins
with ``Provided, That no loan'', the following:
        ``(3)(A) In this paragraph--
            ``(i) the term `essential employee' means an individual who
        is employed by a small business concern and whose managerial or
        technical expertise is critical to the successful day-to-day
        operations of that small business concern;
            ``(ii) the term `period of military conflict' has the
        meaning given the term in subsection (n)(1); and
            ``(iii) the term `substantial economic injury' means an
        economic harm to a business concern that results in the
        inability of the business concern--
                ``(I) to meet its obligations as they mature;
                ``(II) to pay its ordinary and necessary operating
            expenses; or
                ``(III) to market, produce, or provide a product or
            service ordinarily marketed, produced, or provided by the
            business concern.
        ``(B) The Administration may make such disaster loans (either
    directly or in cooperation with banks or other lending institutions
    through agreements to participate on an immediate or deferred
    basis) to assist a small business concern that has suffered or that
    is likely to suffer substantial economic injury as the result of an
    essential employee of such small business concern being ordered to
    active military duty during a period of military conflict.
        ``(C) A small business concern described in subparagraph (B)
    shall be eligible to apply for assistance under this paragraph
    during the period beginning on the date on which the essential
    employee is ordered to active duty and ending on the date that is
    90 days after the date on which such essential employee is
    discharged or released from active duty.
        ``(D) Any loan or guarantee extended pursuant to this paragraph
    shall be made at the same interest rate as economic injury loans
    under paragraph (2).
        ``(E) No loan may be made under this paragraph, either directly
    or in cooperation with banks or other lending institutions through
    agreements to participate on an immediate or deferred basis, if the
    total amount outstanding and committed to the borrower under this
    subsection would exceed $1,500,000, unless such applicant
    constitutes a major source of employment in its surrounding area,
    as determined by the Administration, in which case the
    Administration, in its discretion, may waive the $1,500,000
    limitation.
        ``(F) For purposes of assistance under this paragraph, no
    declaration of a disaster area shall be required.''.
    (c) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendments made by this section,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
    (d) Guidelines.--Not later than 30 days after the date of the
enactment of this section, the Administrator of the Small Business
Administration shall issue such guidelines as the Administrator
determines to be necessary to carry out this section and the amendments
made by this section.
    (e) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the
    amendments made by this section shall take effect on the date of
    the enactment of this section.
        (2) Disaster loans.--The amendments made by subsection (b)
    shall apply to economic injury suffered or likely to be suffered as
    the result of a period of military conflict occurring or ending on
    or after March 24, 1999.

SEC. 403. MICROLOAN PROGRAM.

    Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C.
636(m)(1)(A)(i)) is amended by inserting ``veteran (within the meaning
of such term under section 3(q)),'' after ``low-income,''.

SEC. 404. DEFENSE ECONOMIC TRANSITION LOAN PROGRAM.

    Section 7(a)(21)(A)(ii) of the Small Business Act (15 U.S.C.
636(a)(21)(A)(ii)) is amended by inserting ``or a veteran'' after
``qualified individual''.

SEC. 405. STATE DEVELOPMENT COMPANY PROGRAM.

    Section 501(d)(3) of the Small Business Investment Act of 1958 (15
U.S.C. 695(d)(3)) is amended--
        (1) by redesignating subparagraphs (E), (F), and (G) as
    subparagraphs (F), (G), and (H), respectively; and
        (2) by inserting after subparagraph (D) the following:
            ``(E) expansion of small business concerns owned and
        controlled by veterans, as defined in section 3(q) of the Small
        Business Act (15 U.S.C. 632(q)), especially service-disabled
        veterans, as defined in such section 3(q),''.

                    TITLE V--PROCUREMENT ASSISTANCE

SEC. 501. SUBCONTRACTING.

    (a) Statement of Policy.--Section 8(d)(1) of the Small Business Act
(15 U.S.C. 637(d)(1)) is amended by inserting ``small business concerns
owned and controlled by service-disabled veterans,'' after ``small
business concerns,'' the first place it appears in the first and second
sentences.
    (b) Contract Clause.--The contract clause specified in section
8(d)(3) of the Small Business Act (15 U.S.C. 637(d)(3)) is amended as
follows:
        (1) Subparagraph (A) of such clause is amended by inserting
    ``small business concerns owned and controlled by veterans,'' after
    ``small business concerns,'' the first place it appears in the
    first and second sentences.
        (2) Subparagraphs (E) and (F) of such clause are redesignated
    as subparagraphs (F) and (G), respectively, and the following new
    subparagraph is inserted after subparagraph (D) of such clause:
        ``(E) The term `small business concern owned and controlled by
    veterans' shall mean a small business concern--
            ``(i) which is at least 51 per centum owned by one or more
        eligible veterans; or, in the case of any publicly owned
        business, at least 51 per centum of the stock of which is owned
        by one or more veterans; and
            ``(ii) whose management and daily business operations are
        controlled by such veterans. The contractor shall treat as
        veterans all individuals who are veterans within the meaning of
        the term under section 3(q) of the Small Business Act.''.
        (3) Subparagraph (F) of such clause, as redesignated by
    paragraph (2) of this subsection, is amended by inserting ``small
    business concern owned and controlled by veterans,'' after ``small
    business concern,'' the first place it appears.
    (c) Conforming Amendments.--Section 8(d) of the Small Business Act
(15 U.S.C. 637(d)) is amended by inserting ``small business concerns
owned and controlled by veterans,'' after ``small business concerns,''
the first place it appears in each of paragraphs (4)(D), (4)(E),
(6)(A), (6)(C), (6)(F), and (10)(B).

SEC. 502. PARTICIPATION IN FEDERAL PROCUREMENT.

    (a) Government-Wide Participation Goals.--Section 15(g)(1) of the
Small Business Act (15 U.S.C. 644(g)(1)) is amended--
        (1) in the first sentence, by inserting ``small business
    concerns owned and controlled by service disabled veterans,'' after
    ``small business concerns,'' the first place it appears;
        (2) by inserting after the second sentence, the following:
    ``The Government-wide goal for participation by small business
    concerns owned and controlled by service-disabled veterans shall be
    established at not less than 3 percent of the total value of all
    prime contract and subcontract awards for each fiscal year.''; and
        (3) in the second to last sentence, by inserting ``small
    business concerns owned and controlled by service-disabled
    veterans,'' after ``small business concerns,'' the first place it
    appears.
    (b) Agency Participation Goals.--Section 15 of the Small Business
Act (15 U.S.C. 644(g)(2)) is amended--
        (1) in the first sentence, by inserting ``by small business
    concerns owned and controlled by service-disabled veterans,'' after
    ``small business concerns,''; the first place it appears;
        (2) in the second sentence, by inserting ``small business
    concerns owned and controlled by service-disabled veterans,'' after
    ``small business concerns,'' the first place it appears; and
        (3) in the fourth sentence, by inserting ``small business
    concerns owned and controlled by service-disabled veterans, by''
    after ``including participation by''.

                 TITLE VI--REPORTS AND DATA COLLECTION

SEC. 601. REPORTING REQUIREMENTS.

    (a) Reports to Small Business Administration.--Section 15(h)(1) of
the Small Business Act (15 U.S.C. 644(h)(1)) is amended by inserting
``small business concerns owned and controlled by veterans (including
service-disabled veterans),'' after ``small business concerns,'' the
first place it appears.
    (b) Reports to the President and the Congress.--Section 15(h)(2) of
the Small Business Act (15 U.S.C. 644(h)(2)) is amended--
        (1) by inserting ``and the Congress'' before the period at the
    end of first sentence; and
        (2) in each of subparagraphs (A), (D), and (E), by inserting
    ``small business concerns owned and controlled by service-disabled
    veterans,'' after ``small business concerns,'' the first place it
    appears.

SEC. 602. REPORT ON SMALL BUSINESS AND COMPETITION.

    Section 303(e) of the Small Business Economic Policy Act of 1980
(15 U.S.C. 631b(e)) is amended--
        (1) in paragraph (1), by striking ``and'' after the semicolon;
        (2) in paragraph (2), by striking the period at the end and
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(3) small business concerns owned and controlled by
    veterans, as defined in section 3(q) of the Small Business Act (15
    U.S.C. 632(q)), and small business concerns owned and controlled by
    service-disabled veterans, as defined in such section 3(q).''.

SEC. 603. ANNUAL REPORT OF THE ADMINISTRATOR.

    The Administrator of the Small Business Administration shall
transmit annually to the Committees on Small Business and Veterans
Affairs of the House of Representatives and the Senate a report on the
needs of small business concerns owned and controlled by veterans and
small business concerns owned and controlled by service-disabled
veterans, which shall include information on--
        (1) the availability of Small Business Administration programs
    for such small business concerns and the degree of utilization of
    such programs by such small business concerns during the preceding
    12-month period, including statistical information on such
    utilization as compared to the small business community as a whole;
        (2) the percentage and dollar value of Federal contracts
    awarded to such small business concerns during the preceding 12-
    month period, based on the data collected pursuant to section
    604(d); and
        (3) proposals to improve the access of such small business
    concerns to the assistance made available by the United States.

SEC. 604. DATA AND INFORMATION COLLECTION.

    (a) Information on Federal Procurement Practices.--The
Administrator of the Small Business Administration shall, for each
fiscal year--
        (1) collect information concerning the procurement practices
    and procedures of each department and agency of the United States
    having procurement authority;
        (2) publish and disseminate such information to procurement
    officers in all Federal agencies; and
        (3) make such information available to any small business
    concern requesting such information.
    (b) Identification of Small Business Concerns Owned by Eligible
Veterans.--Each fiscal year, the Secretary of Veterans Affairs shall,
in consultation with the Assistant Secretary of Labor for Veterans'
Employment and Training and the Administrator of the Small Business
Administration, identify small business concerns owned and controlled
by veterans in the United States. The Secretary shall inform each small
business concern identified under this paragraph that information on
Federal procurement is available from the Administrator.
    (c) Self-Employment Opportunities.--The Secretary of Labor, the
Secretary of Veterans Affairs, and the Administrator of the Small
Business Administration shall enter into a memorandum of understanding
to provide for coordination of vocational rehabilitation services,
technical and managerial assistance, and financial assistance to
veterans, including service-disabled veterans, seeking to employ
themselves by forming or expanding small business concerns. The
memorandum of understanding shall include recommendations for expanding
existing programs or establishing new programs to provide such services
or assistance to such veterans.
    (d) Data Collection Required.--The Federal Procurement Data System
described in section 6(d)(4)(A) of the Office of Federal Procurement
Policy Act (41 U.S.C. 405(d)(4)(A)) shall be modified to collect data
regarding the percentage and dollar value of prime contracts and
subcontracts awarded to small business concerns owned and controlled by
veterans and small business concerns owned and controlled by service-
disabled veterans.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. ADMINISTRATOR'S ORDER.

    The Administrator of the Small Business Administration shall
strengthen and reissue the Administrator's order regarding the third
sentence of section 4(b)(1) of the Small Business Act (15 U.S.C.
633(b)(1)), relating to nondiscrimination and special considerations
for veterans, and take all necessary steps to ensure that its
provisions are fully and vigorously implemented.

SEC. 702. SMALL BUSINESS ADMINISTRATION OFFICE OF ADVOCACY.

    Section 202 of Public Law 94-305 (15 U.S.C. 634b) is amended--
        (1) in paragraph (10), by striking ``and'' at the end;
        (2) in paragraph (11), by striking the period at the end and
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(12) evaluate the efforts of each department and agency of
    the United States, and of private industry, to assist small
    business concerns owned and controlled by veterans, as defined in
    section 3(q) of the Small Business Act (15 U.S.C. 632(q)), and
    small business concerns owned and controlled by serviced-disabled
    veterans, as defined in such section 3(q), and to provide
    statistical information on the utilization of such programs by such
    small business concerns, and to make appropriate recommendations to
    the Administrator of the Small Business Administration and to the
    Congress in order to promote the establishment and growth of those
    small business concerns.''.

SEC. 703. STUDY OF FIXED-ASSET SMALL BUSINESS LOANS.

    (a)  In General.--The Comptroller General shall conduct a study on
whether there would exist any additional risk or cost to the United
States if--
        (1) up to 10 percent of the loans guaranteed under chapter 37
    of title 38, United States Code, were made for the acquisition or
    construction of fixed assets used in a trade or business rather
    than for the construction or purchase of residential buildings; and
        (2) such loans for acquisition or construction of fixed assets
    were for a term of not more than 10 years and the terms regarding
    eligibility, loan limits, interest, fees, and down payment were the
    same as for other loans guaranteed under such chapter.
    (b) Report.--
        (1) In general.--Not later than 180 days after the enactment of
    this Act, the Comptroller General shall transmit the report
    described in subsection (a) to the Committees on Veterans' Affairs
    and the Committees on Small Business of the House of
    Representatives and the Senate.
        (2) Contents of report.--The report required by paragraph (1)
    shall specifically address the following:
            (A) With respect to the change in the veterans' housing
        loan program contemplated under subsection (a):
                (i) The increase or decrease in administrative costs to
            the Department of Veterans Affairs.
                (ii) The increase or decrease in the degree of exposure
            of the United States as the guarantor of the loans.
                (iii) The increase or decrease in the Federal subsidy
            rate that would be possible.
                (iv) Any increase in the interest rate or fees charged
            to the borrower or lender that would be required to
            maintain present program costs.
            (B) Information regarding the delinquency rates, default
        rates, length of time required for recovery after default, for
        fixed-asset business loans, of a size and duration comparable
        to those contemplated under subsection (a), made available in
        the private market or under section 503 of the Small Business
        Investment Act of 1958.

                               Speaker of the House of Representatives.

                            Vice President of the United States and   
                                               President of the Senate.