,i #aafth ,,congress #ast ,session ,h4 ,r4 #bbe ,,in ,,the ,,house ,,of ,,representatives ,january #c1 #bjai ,ms4 ,velzquez introduced the following bill2 which was referred to the ,committee on ,small ,business ,a ,,bill ,to provide for small business concerns located in ,puerto ,rico1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,puerto ,rico ,small ,business ,assistance ,act of #bjai4 #b4 ,table of contents ,the table of contents for this ,act are as follows3 ,sec4 #a4 ,short title4 ,sec4 #b4 ,table of contents4 ,sec4 #c4 ,definitions4 ,title ,i--,lending ,sec4 #aja4 ,microloan program for ,puerto ,rico small business concerns4 ,sec4 #ajb4 ,fee reductions4 ,sec4 #ajc4 ,economic stimulus lending program for small businesses4 ,sec4 #ajd4 ,contribution percentages for #ejd projects4 ,sec4 #aje4 ,independent subsidy calculation4 ,title ,,ii--,procurement ,sec4 #bja4 ,contracting preference for ,puerto ,rico businesses4 ,title ,,iii--,entrepreneurial ,development ,sec4 #cja4 ,veteran ,business ,outreach ,center in ,puerto ,rico4 ,sec4 #cjb4 ,,fast grant program for ,puerto ,rico4 #c4 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,small ,business ,administration4 7#b7 ,oversight ,board termination date ,the term ,oversight ,board termination date means the date on which the ,oversight ,board established under section #aja of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7 terminates4 7#c7 ,puerto ,rico ,the term ,puerto ,rico means the ,commonwealth of ,puerto ,rico4 7#d7 ,puerto ,rico business ,the term ,puerto ,rico business has the meaning given in section #c7;ee7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;ee774 7#e7 ,small business concern ,the term small business concern has the meaning given such term under section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74 ,i ,lending #aja4 ,microloan program for ,puerto ,rico small business concerns 7a7 ,increase in access to capital for certain intermediaries ,section #g7m77#c77;,c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#c77;,c77 is amended-- 7#a7 by inserting and except as provided in clause 7ii7 after subsection 7a77#c72 7#b7 by striking ,notwithstanding and inserting the following3 7i7 ,in general ,notwithstanding 2 and 7#c7 by adding at the end the following3 7ii7 ,exception for certain ,puerto ,rico businesses 7,i7 ,in general ,no loan shall be made under this subsection if the total amount outstanding and committed to #a covered intermediary 7excluding outstanding grants7 from the business loan and investment fund established by this ,act would1 as a result of such loan1 exceed #f1jjj1jjj in the remaining years of the covered intermediary's participation in the program4 7,,ii7 ,definition ,in this clause1 the term covered intermediary means an intermediary that-- 7aa7 is participating in the program2 and 7bb7 submits to the ,administrator a certification that not less than #bj percent of the microloans made by the intermediary under this subsection1 during such period as the ,administrator may specify1 will be made to ,puerto ,rico businesses4 4 7b7 ,waiver of #be_/ge rule for microloans to ,puerto ,rico small business concerns 7#a7 ,waiver authorized ,section #g7m77#d77;,e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#d77;,e77 is amended-- 7,a7 in clause 7i71 by striking ,each and inserting ,except as provided in clause 7iii71 each2 and 7,b7 by adding at the end the following3 7iii7 ,exception for certain intermediaries ,the ,administrator shall waive the requirements of clause 7i7 for an intermediary for which not less than #be percent of the loans made by the intermediary are made to ,puerto ,rico businesses4 4 7#b7 ,study ,not later than #ah months after the date of enactment of this ,act1 the ,administrator shall submit to ,congress a report on the impact of waiving the requirements of section #g7m77#d77;,e77i7 of the ,small ,business ,act for all intermediaries receiving grant funds under section #g7m77#a77;,b77ii7 of the ,small ,business ,act1 which shall include an analysis of the effectiveness and feasibility of expanding the waiver to small business concerns nationwide4 7c7 ,prospective repeal ,subsections 7a7 and 7b7 shall be repealed1 and the provisions of law amended by such subsections shall be restored as if such subsections had not been enacted1 on the ,oversight ,board termination date4 7d7 ,,gao study ,not later than #ahj days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall complete a study and 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 on the following3 7#a7 ,the operations 7including services provided1 structure1 size1 and area of operation7 of a representative sample of-- 7,a7 intermediaries that are eligible for participation in the microloan program under section #g7m7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77 and that participate in the microloan program2 and 7,b7 intermediaries 7including those operated for profit1 operated as nonprofit organizations1 and affiliated with a ,united ,states institution of higher learning 7as defined in section #cdeb of title #ch1 ,united ,states ,code7 that are so eligible and that do not participate in the microloan program4 7#b7 ,the reasons why intermediaries described in paragraph 7#a77;,b7 choose not to participate in the microloan program4 7#c7 ,recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph 7#a77;,b74 7#d7 ,recommendations for increasing the number of intermediaries located in the territories of the ,united ,states or in economically distressed areas 7as defined in section #g7m77#aa77;,d7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7m77#aa77;,d77 that are eligible for participation in the microloan program under section #g7m7 of such ,act4 7#e7 ,recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries4 #ajb4 ,fee reductions 7a7 ,administrative provisions for the ,small ,business ,administration 7#a7 ,definition ,in this subsection1 the term covered business loan means a loan-- 7,a7 of not more than #b1jjj1jjj2 7,b7 that is guaranteed by the ,administrator under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a772 7,c7 for which the application is approved on or after the date of enactment of this ,act2 and 7,d7 that is made to a ,puerto ,rico business4 7#b7 ,fees ,during the period beginning on the date of enactment of this ,act and ending on the ,oversight ,board termination date1 and to the extent that the cost of such elimination or reduction of fees is offset by appropriations1 with respect to each covered business loan1 the ,administrator shall-- 7,a7 in lieu of the fee otherwise applicable under section #g7;a77#bc77;,a7 of the ,small ,business ,act1 collect no fee or reduce fees to the maximum extent possible2 and 7,b7 in lieu of the fee otherwise applicable under section #g7;a77#ah77;,a7 of the ,small ,business ,act1 collect no fee or reduce fees to the maximum extent possible4 7b7 ,temporary fee elimination for the #ejd loan program 7#a7 ,in general ,during the period beginning on the date of enactment of this ,act and ending on the ,oversight ,board termination date1 and to the extent the cost of such elimination in fees is offset by appropriations1 with respect to each loan of not more than #b1jjj1jjj guaranteed by the ,administrator under title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq47 with respect to a development company that has its principal office located in ,puerto ,rico and for which an application is approved or pending approval on or after the date of enactment of this ,act-- 7,a7 the ,administrator shall1 in lieu of the fee otherwise applicable under section #ejc7;d77#b7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fig7;d77#b771 collect no fee2 and 7,b7 a development company shall1 in lieu of the processing fee under section #abj4iga7;a77#a7 of title #ac1 ,code of ,federal ,regulations 7relating to fees paid by borrowers71 or any successor thereto1 collect no fee4 7#b7 ,reimbursement for waived fees 7,a7 ,in general ,to the extent that the cost of such payments is offset by appropriations1 the ,administrator shall reimburse each development company that does not collect a processing fee under paragraph 7#a77;,b74 7,b7 ,amount ,the reimbursement to a development company under subparagraph 7,a7 shall be in an amount equal to #a4e percent of the net debenture proceeds for which the development company does not collect a processing fee under paragraph 7#a77;,b74 7c7 ,application of fee eliminations ,to the extent that amounts are made available to the ,administrator for the purpose of fee eliminations or reductions under subsection 7a71 the ,administrator shall-- 7#a7 first use any amounts provided to eliminate or reduce fees paid by borrowers under clauses 7i71 7ii71 and 7iii7 of section #g7;a77#ah77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ah77;,a771 to the maximum extent possible2 7#b7 to the extent amounts provided remain after use in accordance with paragraph 7#a71 use any amounts provided to eliminate or reduce fees under section #g7;a77#bc77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#bc77;,a77 paid by lenders with assets of not more than #a1jjj1jjj1jjj1 as of the date of enactment of this ,act2 and 7#c7 to the extent amounts provided remain after use in accordance with paragraphs 7#a7 and 7#b71 use any remaining amounts provided to reduce fees under section #g7;a77#bc77;,a7 of the ,small ,business ,act paid by lenders other than those described under paragraph 7#b74 #ajc4 ,economic stimulus lending program for small businesses 7a7 ,authority ,notwithstanding section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a771 for a qualifying small business loan the ,administrator may guarantee not more than #ij percent of the balance of the financing outstanding at the time of disbursement of the loan1 if such balance is less than or equal to #b1jjj1jjj4 7b7 ,qualifying small business loan defined ,for purposes of this section1 the term qualifying small business loan means any loan to a ,puerto ,rico business made pursuant to section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a771 except for such loans made under section #g7;a77#ca7 of such ,act 7#ae ,u4,s4,c4 #fcf7;a77#ca774 7c7 ,qualified borrowers 7#a7 ,aliens unlawfully present in the ,united ,states ,the ,administrator may not guarantee a loan made under this section to a small business concern if an individual who is an alien unlawfully present in the ,united ,states-- 7,a7 has an ownership interest in that concern2 or 7,b7 has an ownership interest in another concern that itself has an ownership interest in that concern4 7#b7 ,firms in violation of immigration laws ,the ,administrator may not guarantee a loan made under this section to any entity1 based on a determination by the ,secretary of ,homeland ,security or the ,attorney ,general1 found to have engaged in a pattern or practice of hiring1 recruiting1 or referring for a fee for employment in the ,united ,states an alien1 if such entity knows that the person is an unauthorized alien4 7d7 ,criminal background checks ,prior to guaranteeing a loan made under this section1 the ,administrator may verify the applicant's criminal background1 or lack thereof1 through the best available means1 including1 if possible1 use of the ,national ,crime ,information ,center computer system at the ,federal ,bureau of ,investigation4 7e7 ,application of other law ,nothing in this section shall be construed to exempt any activity of the ,administrator under this section from the ,federal ,credit ,reform ,act of #aiij4 7f7 ,small ,business ,act provisions ,except as otherwise provided in this section1 the requirements of section #g of the ,small ,business ,act 7and regulations promulgated thereunder7 applicable to loan guarantees on or before the date of enactment of this ,act shall apply to loan guarantees made under this section4 7g7 ,sunset ,the ,administrator may not guarantee a loan made under this section after the ,oversight ,board termination date4 #ajd4 ,contribution percentages for #ejd projects ,notwithstanding section #ejb7c7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7c771 during the period beginning on the date of enactment of this ,act and ending on the ,oversight ,board termination date1 the ,administrator may guarantee a debenture issued by a development company that has its principal office located in ,puerto ,rico if1 of the total cost of the project financed-- 7#a7 #ej percent is derived from a loan from a private sector lender2 7#b7 #de percent is derived from a loan made from the proceeds of such debenture issued by the development company2 and 7#c7 #e percent is provide by the borrower of such loans4 #aje4 ,independent subsidy calculation ,in making calculations under section #g7;a77#bf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#bf77 or section #ejc7;g7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fig7;g771 the ,director of the ,office of ,management and ,budget shall make such calculations separately for loans purchased or guaranteed under the authority under section #ajb1 #ajc1 or #ajd of this ,act4 ,,ii ,procurement #bja4 ,contracting preference for ,puerto ,rico businesses ,section #ae7x7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdd7x77 is amended-- 7#a7 in the subsection heading1 by striking ,small ,business ,credit and inserting ,contracting2 7#b7 by redesignating paragraph 7#b7 as subparagraph 7,b7 7and conforming the margins accordingly72 7#c7 by striking ,if an agency and inserting3 7,a7 ,in general ,if an agency 2 7#d7 in subparagraph 7,b71 as so redesignated-- 7,a7 by striking paragraph 7#a7 and inserting subparagraph 7,a72 and 7,b7 by striking paragraph and inserting subparagraph2 and 7#e7 by adding at the end the following new paragraph3 7#b7 ,contracting preference for ,puerto ,rico businesses ,an agency shall provide a contracting preference for a ,puerto ,rico business during the period beginning on the date of enactment of this paragraph and ending on the date on which the ,oversight ,board established under section #aja of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7 terminates4 ,the preference under this paragraph shall take priority over any preference for purchasing from the procurement list established pursuant to section #hejc of title #da1 ,united ,states ,code1 or the ,federal ,prison ,industries catalog described under section #dabd7;d7 of title #ah1 ,united ,states ,code4 4 ,,iii ,entrepreneurial ,development #cja4 ,veteran ,business ,outreach ,center in ,puerto ,rico 7a7 ,in general ,section #cb of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;b7 is amended-- 7#a7 by redesignating subsection 7f7 as subsection 7g72 and 7#b7 by inserting after subsection 7e7 the following3 7f7 ,veteran ,business ,outreach ,center in ,puerto ,rico ,the ,administrator shall partner with an organization to establish a ,veteran ,business ,outreach ,center in the ,commonwealth of ,puerto ,rico to provide entrepreneurial development services to small business concerns owned and controlled by service-disabled veterans and small business concerns owned and controlled by veterans located in the ,commonwealth of ,puerto ,rico4 ,if the ,administrator cannot partner with an organization1 the ,administrator shall use amounts appropriated to carry out this subsection to provide such services to veterans who own or are considering starting a ,puerto ,rico business4 4 7b7 ,prospective repeal ,subsection 7a7 shall be repealed1 and the provisions of law amended by such subsection shall be restored as if such subsection had not been enacted1 on the ,oversight ,board termination date4 #cjb4 ,,fast grant program for ,puerto ,rico 7a7 ,in general ,section #cd of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;d7 is amended by adding at the end the following3 7j7 ,,fast grant program for ,puerto ,rico 7#a7 ,establishment ,the ,administrator shall establish a program that shall be part of the ,,fast program to make awards to1 or enter into cooperative agreements with1 a ,puerto ,rico business4 7#b7 ,technical assistance ,if no applicant is selected to receive assistance under this subsection1 the ,administrator shall use amounts appropriated to carry out this subsection to provide business advice and counseling to a ,puerto ,rico business4 7#c7 ,waiver of matching requirements ,the ,administrator may1 upon application1 waive the matching requirements under subsection 7e77#b7 for an applicant that receives an award or has in effect a cooperative agreement under this subsection4 7#d7 ,funding ,there is authorized to be appropriated #ajj1jjj for fiscal year #bjbj1 and each fiscal year thereafter1 to carry out this subsection4 4 7b7 ,prospective repeal ,subsection 7a7 shall be repealed1 and the provisions of law amended by such subsection shall be restored as if such subsection had not been enacted1 on the ,oversight ,board termination date4