,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dhgf ,,in ,,the ,,house ,,of ,,representatives ,june #ag1 #bjad ,mr4 ,carson of ,indiana 7for himself1 ,mr4 ,enyart1 ,mr4 ,conyers1 ,mr4 ,sablan1 and ,ms4 ,brown of ,florida7 introduced the following bill2 which was referred to the ,committee on ,small ,business ,a ,,bill ,to amend the ,small ,business ,act to provide for contracting preferences and other benefits for emerging business enterprises1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,emerging ,business ,encouragement ,act of #bjad4 #b4 ,emerging ,business ,enterprises 7a7 ,designation ,section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7 is amended by adding at the end the following3 7dd7 ,emerging ,business ,enterprises 7#a7 ,in general ,not later than the date that is #a year after the date of enactment of this paragraph1 for each industry category for which the ,administrator established a size standard under this subsection1 the ,administrator shall by rule establish procedures for designating a small business concern in that industry category as an emerging business enterprise4 ,such procedures shall include the criteria under paragraph 7#b71 and a process for appealing decisions of the ,administrator on designations4 ,such a designation shall expire on the date that the small business concern is no longer in compliance with such criteria1 except that-- 7,a7 in the case of an emerging business enterprise that receives a designation as such but which existed as a business entity prior to such designation1 the designation shall not expire by reason of the emerging business enterprise being more than #e years old2 instead1 the designation shall expire on the date that is #e years after the date of the designation2 and 7,b7 if the emerging business enterprise exceeds the size limitation described in the criterion under paragraph 7#b77;,a7 following designation as an emerging business enterprise1 the designation shall expire only if the size is #ej percent or more of the maximum size of a small business concern within that industry category4 ,the rulemaking under this paragraph shall include a procedure for self certification as an emerging business enterprise1 for annual submission of documentation establishing eligibility for designation as an emerging business enterprise1 and for periodic audits of emerging business enterprises based on such documentation4 7#b7 ,criteria for designation ,the ,administrator shall establish criteria for designation of an emerging business enterprise1 which shall include the following3 7,a7 ,number of employees ,that the small business concern employs1 in the ,administrator's determination a number of employees that is less than the larger of-- 7i7 not more than #aj percent of the number of employees that a small business concern within that industry category may employ1 if that small business concern is so classified by reason of a size standard under section #c7;a7 pertaining to the number of employees of the concern2 or 7ii7 #be employees4 7,b7 ,age of business ,that the small business concern is1 in the ,administrator's determination1 not more than #e years old4 7,c7 ,salary requirements ,that the small business concern does not1 in the ,administrator's determination1 pay to an individual who owns any part of the concern or who is in a management position a salary greater than #bjj percent of the mean annual salary for ,managers of ,companies and ,enterprises or the equivalent from the most recent ,employment and ,wage ,estimates developed by the ,secretary of ,labor4 7#c7 ,public notification ,the ,administrator shall take appropriate action to publicize the establishment of the procedures for designations under this paragraph1 including by conducting outreach to eligible small business concerns4 7#d7 ,contractor training ,the ,administrator shall provide for training regarding ,federal procurement on an ,internet ,web site of the ,administrator1 which shall be available to the public at no charge4 4 7b7 ,contracting preference ,section #ae7;g77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 7g77#b77 is amended by adding at the end the following3 7,g7 ,emerging ,business ,enterprises 7i7 ,in general ,the head of each ,federal agency shall1 after consultation with the ,administrator1 establish goals for participation by emerging business enterprises designated under section #c7;a77#f7 in not less than #e percent of all contracts1 including prime contracts and subcontracts1 for each fiscal year4 ,the head of the agency may give preference in making contract awards to such emerging business enterprises and shall make consistent efforts to annually expand participation by emerging business enterprises from each industry category in procurement contracts of the agency4 7ii7 ,reports 7,i7 ,reports from agencies ,at the conclusion of each fiscal year1 the head of each ,federal agency shall report to the ,administrator on the extent of participation by emerging business enterprises in procurement contracts of such agency4 ,such reports shall contain appropriate justifications for failure to meet the goals established under this subparagraph4 7,,ii7 ,reports to ,congress ,the ,administrator shall annually compile and analyze the reports submitted by the individual agencies pursuant to subclause 7,i7 and shall submit to the ,president and the ,committee on ,small ,business and ,entrepreneurship of the ,senate and the ,committee on ,small ,business of the ,house of ,representatives the compilation and analysis1 which shall include the following3 7aa7 ,the goals in effect for each agency and the agency's performance in attaining such goals4 7bb7 ,an analysis of any failure to achieve individual agency goals and the actions planned by such agency 7and approved by the ,administrator7 to achieve the goals in the succeeding fiscal year4 7cc7 ,the total number and dollar value of prime contracts and subcontracts awarded to emerging business enterprises4 7,,iii7 ,annual ,presidential report on the state of small business ,the ,president shall include the information required by subclause 7,,ii7 in each annual report to the ,congress on the state of small business prepared pursuant to section #cjc7;a7 of the ,small ,business ,economic ,policy ,act of #aihj 7#ae ,u4,s4,c4 #fca;b7a774 4 7c7 ,amendments to ,,sba ,express ,section #g7;a77#ca7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ca77 is amended by adding at the end the following3 7,g7 ,emerging business enterprises 7i7 ,in general ,the ,administrator may make a loan under the ,express ,loan ,program to an emerging business enterprise designated under section #c7;dd71 except that such loans shall be made in accordance with the terms of this subparagraph4 7ii7 ,guaranty rate ,the guaranty rate of such a loan shall be in accordance with the following3 7,i7 ,except as otherwise provided in this clause1 #fe percent4 7,,ii7 ,except as provided in subclause 7,,iii71 if1 in a report submitted under clause 7iii71 the total number of loans made and the total amount loaned by a lender is greater by #aj percent than the prior fiscal year1 #ge percent4 7,,iii7 ,if1 in a report submitted under clause 7iii71 the total rate of default on loans issued under subclauses 7,i7 and 7,,ii7 is greater by #aj percent than the prior year1 #ej percent in the succeeding fiscal year4 7iii7 ,reports ,on the date that is #a year after the end of the first fiscal year for which a loan is first guaranteed under this subparagraph1 and annually thereafter1 each lender making a loan guaranteed under this section shall report to the ,administrator the total number of loans made during the preceding fiscal year1 the total amount loaned1 and the default rate for all guaranteed loans4 7iv7 ,verification ,a lender making a loan guaranteed under this section shall verify the status of a business concern as an emerging business enterprise before issuing a loan4 7v7 ,sanction ,if a business concern has received a loan under this subparagraph and that business concern has fraudulently misrepresented its status as an emerging business enterprise1 that business concern shall repay the amount of the loan to the lender 7from which amount the lender shall repay the amount of any guarantee paid on the loan71 and shall in addition pay a fine in an amount determined by the ,administrator4 4 #c4 ,rulemakings 7a7 ,self-,certification ,not later than #ahj days after the date of enactment of this ,act1 the ,administrator shall by rule establish a process for initial self-certification of emerging business enterprises for purposes of participation in ,federal contracts1 and eligibility for ,express ,loans under section #g7;a77#ca77;,g7 of the ,small ,business ,act4