Regulation

Appendix C2: Statues and Regulations Mandating Collection of Information
A. Women’s Business Ownership Act of 1988
B. Section 29 of the Small Business Act

A. Women’s Business Ownership Act of 1988

PUBLIC LAW 100-533—OCT. 25, 1988

102 STAT. 2689

Public Law 100-533
100th Congress
An Act
To amend the Small Business Act to establish programs and initiate efforts to assist
the development of small business concerns owned and controlled by women, and
for other purposes.

Q^^ 25, 1988
FH R 'lO'iOl

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
Women's
Business
Ownership Act

SECTION 1. SHORT TITLE.

This Act, together with the following table of contents, may be
cited as the "Women's Business Ownership Act of 1988".
TABLE OF CONTENTS
TITLE I—CONGRESSIONAL FINDINGS AND PURPOSES
Sec. 101. Findings and purposes.
Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.

TITLE II—DEMONSTRATION PROJECTS
Establishment.
Technical.
Authorization.
Definition.

TITLE III—ACCESS TO CAPITAL
Sec. 301. Amendments to the Consumer Credit Protection Act.
Sec. 302. Form simplification and preferred financing.
TITLE IV—NATIONAL WOMEN'S BUSINESS COUNCIL
Establishment.
Duties of the Council.
Membership.
Director and staff of the Council.
Powers of the Council.
Reports.
Authorization.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

401.
402.
403.
404.
405.
406.
407.

Sec.
Sec.
Sec.
Sec.

TITLE V—STATISTICAL DATA AND EFFECT ON OTHER PROGRAMS
501. Census data.
502. Procurement data.
503. State of small business report.
504. Disadvantaged small business.

TITLE I—CONGRESSIONAL FINDINGS AND PURPOSES
SEC. 101. FINDINGS AND PURPOSES.

Section 2 of the Small Business Act (15 U.S.C. 631) is amended by
adding at the end thereof the following new subsection:
"(hXl) With respect to the programs and activities authorized by
this Act, the Congress finds that—
"(A) women owned business has become a major contributor
to the American economy by providing goods and services,
revenues, and jobs;
"(B) over the past two decades there have been substantial
gains in the social and economic status of women as they have
sought economic equality and independence;

19-194 O—91—Part 3

24 : QL i

15 use 631 note,

102 STAT. 2690

Discrimination,
prohibition.

PUBLIC LAW 100-533—OCT. 25, 1988

"(C) despite such progress, women, as a group, are subjected
to discrimination in entrepreneurial endeavors due to their
gender;
"(D) such discrimination takes many overt and subtle forms
adversely impacting the ability to raise or secure capital, to
acquire managerial talents, and to capture market opportunities;
"(E) it is in the national interest to expeditiously remove
discriminatory barriers to the creation and development of
small business concerns owned and controlled by women;
"(F) the removal of such barriers is essential to provide a fair
opportunity for full participation in the free enterprise system
by women and to further increase the economic vitality of the
Nation;
"(G) increased numbers of small business concerns owned and
controlled by women will directly benefit the United States
Government by expanding the potential number of suppliers of
goods and services to the Government; and
"(H) programs and activities designed to assist small business
concerns owned and controlled by women must be implemented
in such a way as to remove such discriminatory barriers while
not adversely affecting the rights of socially and economically
disadvantaged individuals.
"(2) It is, therefore, the purpose of those programs and activities
conducted Under the authority of this Act that assist women entrepreneurs to—
"(A) vigorously promote the legitimate interests of small
business concerns owned and controlled by women;
"(B) remove, insofar as possible, the discriminatory barriers
that are encountered by women in accessing capital and other
factors of production; and
"(C) require that the Government engage in a systematic and
sustained effort to identify, define and analyze those discriminatory barriers facing women and that such effort directly involve
the participation of women business owners in the public/
private sector partnership.".
TITLE II—DEMONSTRATION PROJECTS
SEC. 201. ESTABLISHMENT.

Subsection (c) of section 8 of the Small Business Act (15 U.S.C.
637(c)) is amended to read as follows:
"(c)(1) Subject to the requirements of paragraph (2), the Administration shall provide financial assistance to private organizations to
conduct demonstration projects for the benefit of small business
concerns owned and controlled by women.
"(2) No amount of financial assistance shall be provided pursuant
to this subsection unless the recipient organization agrees, as a
condition of receiving such assistance, that—
"(A) it will obtain, after its application has been approved but
prior to the disbursement of funds pursuant to this subsection,
cash contributions from private sector sources in an amount
at least equal to the amount of funds such organization will
receive under this subsection; and
"(B) it will provide the types of services and assistance to
present and potential women owners of small business concerns

PUBLIC LAW 100-533—OCT. 25, 1988

102 STAT. 2691

as are described in paragraph (3). For the purposes of this
subsection such concerns may be either 'start-up' businesses or
established 'on-going' concerns.
"(3) The types of services and assistance referred to in paragraph
(2XB) shall include the following:
"(A) Financial assistance, which assistance shall include
training and counseling in how to apply for and secure business
credit and investment capital; prepare and present financial
statements; manage cash-flow and otherwise manage the financial operations of a business concern.
"(B) Management assistance, which assistance shall include
training and counseling in how to plan, organize, staff, direct,
and control each major activity and function of a small business
concern; and
"(C) Marketing assistance, which assistance shall include
training and counseling in how to identify and segment domestic and international market opportunities; prepare and execute
marketing plans; develop pricing strategies; locate contract
opportunities; negotiate contracts; and utilize varying public
relations and advertising techniques.
"(4) Applications for financial assistance pursuant to this subsection shall be evaluated and ranked 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 Administration. Such criteria shall include—
"(A) a criterion that specifically refers to the experience of
the offering organization in conducting programs or on-going
efforts designed to impart or upgrade the business skills of
women business owners or potential owners;
"(B) a criterion that specifically refers to the present ability of
the offering organization to commence a demonstration project
within a minimum amount of time; and
"(C) a criterion that specifically refers to the ability of the
applicant organization to provide training and services to a
representative number of women who are both socially and
economically disadvantaged.
"(5) The financial assistance authorized pursuant to this subsection shall be made by grant, contract, or cooperative agreement
and may contain such provision, as necessary, to provide for
payments in lump sum or installments, and in advance or by way of
reimbursement.
"(6XA) The Administration shall prepare and transmit a report to
the Committees on Small Business of the Senate and House of
Representatives on the effectiveness of all demonstration projects
conducted under the authority of this subsection. Such report shall
provide information concerning—
"(i) the number of individuals receiving assistance;
"(ii) the number of start-up business concerns formed;
"(iii) the gross receipts of assisted concerns;
"(iv) increases or decreases in profits of assisted concerns; and
"(v) the employment increases or decreases of assisted
concerns.
"(B) The report required pursuant to subparagraph (A) shall cover
at least a twenty-four-month period and shall be submitted not later
than thirty months after the effective date of this paragraph.

Public
information.

Grants.
Contracts.

Reports.

102 STAT. 2692
Termination
date.

PUBLIC LAW 100-533—OCT. 25, 1988

"(7) This subsection shall cease to be effective after September 30,
1991.".
SEC. 202. TECHNICAL.

Subsection (b) of section 8 of the Small Business Act (15 U.S.C.
63703)) is amended by—
(1) striking out "and" at the end of paragraph (14);
(2) striking out "public." at the end of paragraph (15) and
inserting in lieu thereof "public; and"; and
(3) by adding the following new paragraph:
"(16) to make studies of matters materially affecting the
competitive strength of small business, and of the effect on
small business of Federal laws, programs, and regulations, and
to make recommendations to the appropriate Federal agency or
agencies for the adjustment of such programs and regulations to
the needs of small business.".
15 u s e 637 note.

SEC. 203. AUTHORIZATION.

There is authorized to be appropriated $10,000,000 to carry out the
demonstration projects required pursuant to section 201. The initial
projects authorized to be financed by this title shall be funded by
January 31, 1989. Notwithstanding any other provision of law, the
Small Business Administration may use such expedited acquisition
methods as it deems appropriate to achieve the purposes of this
section, except that it shall ensure that all eligible sources are
provided a reasonable opportunity to submit proposals.
15 u s e 637 note.

SEC. 204. DEFINITION.

)

For the purposes of this title, the term "small business concern
owned and controlled by women" means any small business
concern—
(1) that is at least 51 per centum owned by one or more
women; and
(2) whose management and daily business operations are
controlled by one or more of such women.
TITLE III—ACCESS TO CAPITAL
SEC. 301. AMENDMENTS TO THE CONSUMER CREDIT PROTECTION ACT.

Regulations.

Subsection (a) of section 703 of the Consumer Credit Protection
Act (15 U.S.C. 1691b(a)) is amended to read as follows:
"(aXD The Board shall prescribe regulations to carry out the
purposes of this title. These regulations may contain but are not
limited to such classifications, differentiation, or other provision,
and may provide for such adjustments and exceptions for any class
of transactions, as in the judgment of the Board are necessary or
proper to effectuate the purposes of this title, to prevent circumvention or evasion thereof, or to facilitate or substantiate compliance
therewith.
"(2) Such regulations may exempt from the provisions of this title
any class of transactions that are not primarily for personal, family,
or household purposes, or business or commercial loans made available by a financial institution, except that a particular type within a
class of such transactions may be exempted if the Board determines,
after making an express finding that the application of this title or
of any provision of this title of such transaction would not contribute substantially to effecting the purposes of this title.

PUBLIC LAW 100-533—OCT. 25, 1988

102 STAT. 2693

"(3) An exemption granted pursuant to paragraph (2) shall be for
no longer than five years and shall be extended only if the Board
makes a subsequent determination, in the manner described by such
paragraph, that such exemption remains appropriate.
"(4) Pursuant to Board regulations, entities making business or
commercial loans shall maintain such records or other data relating
to such loans as may be necessary to evidence compliance with this
subsection or enforce any action pursuant to the authority of this
Act. In no event shall such records or data be maintained for a
period of less than one year. The Board shall promulgate regulations
to implement this paragraph in the manner prescribed by chapter 5
of title 5, United States Code.
"(5) The Board shall provide in regulations that an applicant for a
business or commercial loan shall be provided a written notice of
such applicant's right to receive a written statement of the reasons
for the denial of such loan.".

Loans.
Records.

Regulations.

Loans.

SEC. 302. FORM SIMPLIFICATION AND PREFERRED FINANCING.

(a) CERTIFIED LOAN PROGRAM.—Section 7 of the Small Business
Act (15 U.S.C. 636) is amended by adding to subsection (a) the
following new paragraph:
"(19) During fiscal years 1989, 1990, and 1991, in addition to
the preferred lenders program authorized by the proviso in
section 5(bX7), the Administration is authorized to establish a
certified loan program for lenders who establish their knowledge of Administration laws and regulations concerning the
loan guarantees program and their proficiency in program
requirements. In order to encourage certified lenders and preferred lenders to provide loans of $50,000 or less in guarantees
to eligible small business loan applicants, the Administration
(A) shall develop and shall allow participating lenders in the
certified loan program and in the preferred loan program to
solely utilize a uniform and simplified loan form for such loans
and (B) shall allow such lenders to retain one-half of the fee
collected pursuant to section 7(aX16) on such loans: Provided,
That a participating lender may not retain any fee pursuant to
this paragraph if the amount committed and outstanding to the
applicant would exceed $50,000 unless such excess amount was
not approved under the provisions of this paragraph. The designation of a lender as a certified lender shall be suspended or
revoked at any time that the Administration determines that
the lender is not adhering to its rules and regulations or if the
Administration determines that the loss experience of the
lender is excessive as compared to other lenders: Provided
further, That any suspension or revocation of the designation
shall not affect any outstanding guarantee: And provided further, That the Administration may not reduce the per centum of
guarantee £is a criterion of eligibility for participation in this
program, except as otherwise provided by law.".
(b) REPORTS.—The Administration shall take appropriate steps to 15 u s e 636 note.
expand participation in the certified loan program and shall report
to the Small Business Committees of the Senate and the House of
Representatives on the amount of loans approved and the amount of
losses sustained under the provisions of section 7(aX19) of the Small
Business Act. An interim report shall be submitted not later than
one year after date of enactment of this Act and a final report shall

102 STAT. 2694

PUBLIC LAW 100-533—OCT. 25, 1988

be submitted not later than eighteen months after the date of
enactment.
15 use 631 note

TITLE IV—NATIONAL WOMEN'S BUSINESS COUNCIL
SEC. 401. ESTABLISHMENT.

There is estabUshed a Council to be known as the "National
Women's Business Council" (hereinafter in this title referred to as
the Council).
SEC. 402. DUTIES OF THE COUNCIL.

(a) The Council shall review—
(1) the status of women owned business nationwide, including
progress made and barriers that remain in order to assist such
businesses to enter the mainstream of the American economy;
(2) the role of the Federal Government and State and local
governments in assisting and promoting aid to, and the promotion of, women owned business;
(3) data collection procedures and the availability of data
relating to (A) women owned businesses; (B) women owned
small business, and (C) small business owned and controlled by
socially and economically disadvantaged women; and
(4) such other government initiatives as may exist relating to
women owned business including, but not limited to, those
relating to Federal procurements.
(b) Based upon its review, the Council shall, by December 31,1989,
and every twelve months thereafter, recommend to the Congress
and the President—
(1) new private sector initiatives that would provide management and technical assistance to women owned small business;
(2) ways to promote greater access to public and private sector
financing and procurement opportunities for such businesses;
and
(3) detailed multiyear plans of action, with specific goals and
timetables, for both public and private sector actions needed to
overcome discriminatory barriers to full participation in the
economic mainstream.
(c) For the purposes of this title the term "small business concern
owned and controlled by women" shall have the same meaning as
that term is given in section 204 of this Act.
SEC. 403. MEMBERSHIP.

(a) The Council shall be composed of nine members to be selected
as follows:
(1) the Administrator of the Small Business Administration,
the Secretary of Commerce (or such Secretary's deputy) and the
Chairman of the Federal Reserve Board (or such Chairman's
designee, who shall be a member of the Board);
(2) two members shall be appointed by the majority leader,
and one member shall be appointed by the minority leader of
the Senate; and
(3) two members shall be appointed by the Speaker, and one
member shall be appointed by the minority leader of the House
of Representatives.
(b)(1) Appointments under section (a) (2) and (3) shall be made
from individuals who are specially qualified to serve on the Council
by virtue of their education, training, and experience and who are

PUBLIC LAW 100-533—OCT. 25, 1988

102 STAT. 2695

not officers or employees of the Federal Government nor of the
Congress.
(2)(A) Of the individuals to be appointed under subsection (a) (2)
and (3)—
(i) no more than two members to be appointed under each
such paragraph of such subsection shall be of the same political
party;
(ii) at least two members appointed under each such paragraph of such subsection shall be women; and
(iii) at least two members to be appointed under each such
paragraph of such subsection shall be owners of small business
concerns as defined pursuant to section 3 of the Small Business
Act and relevant regulations promulgated pursuant thereto.
(B) Appointments made pursuant to subsection (a) (2) and (3) shall
be made in the following sequence—
(i) appointments under (a)(2) shall be made within ninety days
of the effective date of this title; and
(ii) appointments under (a)(3) shall be made within one hundred and twenty days of the effective date of this title.
(3) In making appointments under subsection (a), the appointing
authorities shall give due consideration to achieving balanced geographical representation.
(C) Members appointed under subsection (a) (2) and (3) shall be
appointed for a three-year term, except if any such appointee becomes an officer or employee of the Federal Government or of the
Congress, such individual may continue as a member of the Council
for not longer than the thirty-day period beginning on the date such
individual becomes such an officer or employee.
(D) A vacancy on the Council shall be filled in the manner in
which the original appointment was made.
(E) Members of the Council shall serve without pay for such
membership, except members of the Council shall be entitled to
reimbursement for travel, subsistence, and other necessary expenses
incurred by them in carrying out the functions of the Council, in the
same manner as persons employed intermittently in the Federal
Government are allowed expenses under section 5703 of title 5,
United States Code.
(FXD Two members of the Council shall constitute a quorum for
the receipt of testimony and other evidence.
(2) A majority of the Council shall constitute a quorum for the
approval of a recommendation or report submitted pursuant to
section 402 or section 406.
(G) The Chairperson and Vice Chairperson of the Council shall be
designated by the President. The term of office of the Chairperson
and Vice Chairperson shall be at the discretion of the President.
(H) The Council shall meet not less than four times a year.
Meetings shall be at the call of the Chairperson.
SEC. 404. DIRECTOR AND STAFF OF THE COUNCIL.

(aXD The Council shall have a Director who shall be appointed by
the Chairperson. Upon recommendation by the Director, the Chairperson may appoint and fix the pay of four additional personnel.
(2) The Director and staff of the Council may be appointed without
regard to section 5311(b) of title 5, United States Code, and without
regard to the provisions of such title governing appointments in the
competitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title

President of U.S.

102 STAT. 2696

PUBLIC LAW 100-533—OCT. 25, 1988

relating to classification and General Schedule pay rates, except
that no individual so appointed may receive pay in excess of the^^
annual rate of basic pay payable for GS-18 of the General Schedule.
(b) The Council may procure temporary and intermittent services
under section 3109(b) of title 5 of the United States Code, but at
rates for individuals not to exceed the daily equivalent of the
maximum annual rate of basic pay payable for GS-18 of the General
Schedule.
(c) Upon request of the Chairperson, the head of any Federal
department or agency may detail, on a reimbursable basis, any of
the personnel of such agency to the Council to assist the Council in
carrying out its duties under this title without regard to section 3341
of title 5 of the United States Code.
SEC. 405. POWERS OF THE COUNCIL.

Mail.

(a) The Council may, for the purpose of canying out this title sit
and act at such times and places, hold such hearings, take such
testimony, receive such evidence, and consider such information, as
the Council considers appropriate. The Council may administer
oaths or affirmations for the receipt of such testimony.
(b) Any member or person within the employ of the Council may,
if so authorized by the Council, take any action which the Council is
authorized to take by this section.
(c) Except as otherwise prohibited by law, the Council may secure
directly from any department or agency of the United States
information necessary to enable it to carry out its duties under this
Act. Upon the request of the Chairperson of the Council, the head of
such department or agency shall promptly furnish such information
to the Council.
(d) The Council may use the United States mails in the same
manner and under the same conditions as departments and agencies
of the United States.
(e) The Administrator of the General Services Administration
shall provide to the Council, on a reimbursable basis, such administrative support services as the CouncU may request. In addition, the
Administrator shall, as appropriate, provide to the Council, upon its
request, access to and use of such Federal facilities as may be
necessary for the conduct of its business.
SEC. 406. REPORTS.

The Council shall transmit to the President and to each House of
the Congress a report no less than once in every twelve-month
period. The first such report shall be submitted no later than
December 31, 1989. Such reports shall contain a detailed statement
on the activities of the Council, and the findings and conclusions of
the Council, tc^ether with its recommendations for such legislation
and administrative actions as it considers appropriate based upon its
reviews conducted under section 402.
SEC. 407. AUTHORIZATION.

Contracts.

Termination
date.

There are authorized to be appropriated such sums as may be
necessary to carry out this title and they may remain available until
expended. New spending authority or authority to enter into contracts as authorized in this Act shall be effective only to such extent
and in such amounts as are provided in advance in appropriation
Acts. This title shall cease to be effective five years after the date of
enactment.

PUBLIC LAW 100-533—OCT. 25, 1988

102 STAT. 2697

TITLE V—STATISTICAL DATA AND EFFECT ON OTHER
PROGRAMS
SEC. 501. CENSUS DATA.
(a) BUREAU OF LABOR STATISTICS.—The Bureau of Labor Statistics

13 u s e 131 note.

of the Department of Labor shall include in any census report it
may prepare on women owned business data on—
(1) sole proprietorships;
(2) partnerships; and
(3) corporations.
(b) BUREAU OF THE CENSUS.—The Bureau of the Census of the

Department of Commerce shall include in its Business Census for
1992 and each such succeeding census data on the number of
corporations which are 51 per centum or more owned by women.
(c) COMBINED STUDY.—Not later than one hundred and eighty days Reports,
after the effective date of this section, the Office of the Chief
Counsel for Advocacy of the Small Business Administration (hereinafter referred to in this subsection as the "Office") shall conduct a
study and prepare a report recommending the most cost effective
and accurate means to gather and present the data required to be
collected pursuant to subsections (a) and (b). The Department of
Commerce and the Department of Labor shall provide the Office
such assistance and cooperation as may be necessary and appropriate to achieve the purposes of this subsection.
SEC. 502. PROCUREMENT DATA.

41 USC 4717a.

(a) REPORTING.—Each Federal agency shall report to the Office of
Federal Procurement Policy the number of small businesses owned
and controlled by women and the number of small business concerns
owned and controlled by socially and economically disadvantaged
businesses, by gender, that are first time recipients of contracts from
such agency. The Office of Federal Procurement Policy shall take
such actions as may be appropriate to ascertain for each fiscal year
the number of such small businesses that have newly entered the
Federal market.
(b) DEFINITIONS.—For purposes of this section the terms "small
business concern owned and controlled by women" and "small
business concerns owned and controlled by socially and economically disadvantaged individuals" shall be given the same meaning as
those terms are given under section 8(d) of the Small Business Act
(15 U.S.C. 637(d)) and section 204 of this Act.
SEC. 503. STATE OF SMALL BUSINESS REPORT.

Section 303 of Public Law 96-302 (15 U.S.C. 631(b)) is amended by 15 USC 63lb.
adding the following new subsection:
"(e) The information and data required to be reported pursuant to
subsection (a) shall separately detail those portions of such information and data that are relevant to—
"(1) small business concerns owned and controlled by socially
and economically disadvantaged individuals, by gender, as defined pursuant to section 8(d) of the Small Business Act; and
"(2) small business concerns owned and controlled by
women.".

102 STAT. 2698
15 u s e 631 note.

PUBLIC LAW 100-533—OCT. 25, 1988

SEC. 504. DISADVANTAGED SMALL BUSINESSES.

Nothing contained in this Act is intended to reduce or limit any
programs, benefit, or activity that is authorized by law to assist
small business concerns owned and controlled by socially and
economically disadvantaged individuals as defined pursuant to section 8(dX3) of the Small Business Act (15 U.S.C. 637(d)(3)).
Approved October 25, 1988.

LEGISLATIVE HISTORY—H.R. 5050:
HOUSE REPORTS: No. 100-955 (Comm. on Small Business).
CONGRESSIONAL RECORD, Vol. 134 (1988):
Oct. 3, considered and passed House.
Oct. 11, considered and passed Senate, amended.
Oct. 12, House concurred in Senate amendment.

B. Section 29 of the Small Business Act

SMALL BUSINESS ACT

(h)
There are authorized to be appropriated to the Small Business Administration $5
million for each of fiscal years 1992 through 1995 to carry out this section, and such amounts
may remain available until expended.
(i)
Centers are encouraged to seek funding from Federal and non-Federal sources
other than those provided for in this section to assist small businesses in the identification of
appropriate technologies to fill their needs, the transfer of technologies from Federal laboratories,
public and private universities, and other public and private institutions, the analysis of
commercial opportunities represented by such technologies, and such other functions as the
development business Planning, market research, and financial packaging required for
commercialization. Insofar as such Centers pursue these activities, Federal agencies are
encouraged to employ these Centers to interface with small businesses for such purposes as
facilitating small business participation in Federal procurement and fostering commercialization
of Federally-funded research and development.
§ 29. WOMEN’S BUSINESS CENTER PROGRAM.
(a)

DEFINITIONS - In this section—

(1)
the term “Assistant Administrator” means the Assistant Administrator of
the Office of Women’s Business Ownership established under subsection (g);
(2)
the term “private nonprofit organization” means an entity that is described
in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code;
(3)
the term “small business concern owned and controlled by women,” either
startup or existing, includes any small business concern—
(A)

that is not less than 51 percent owned by 1 or more women; and

(B)
the management and daily business operations of which are
controlled by 1 or more women; and
(4)

the term “women’s business center site” means the location of—
(A)

a women’s business center; or

(B)
1 or more women’s business centers, established in conjunction
with another women’s business center in another location within a State or region—
(i)

that reach a distinct population that would otherwise not be

(ii)

whose services are targeted to women; and

served;

261

(Rev. 13)

SMALL BUSINESS ACT

(iii)
whose scope, function, and activities are similar to those of
the primary women’s business center or centers in conjunction with which it was established.
(b)
AUTHORITY.—The Administration may provide financial assistance to private
nonprofit organizations to conduct 5-year projects for the benefit of small business concerns
owned and controlled by women. The projects shall provide—
(1)
financial assistance, including training and counseling in how to apply for
and secure business credit and investment capital, preparing and presenting financial statements,
and managing cash flow and other financial operations of a business concern;
(2)
management assistance, including training and counseling in how to plan,
organize, staff, direct, and control each major activity and function of a small business concern;
and
(3)
marketing assistance, including training and counseling in identifying and
segmenting domestic and international market opportunities, preparing and executing marketing
Plans, developing pricing strategies, locating contract opportunities, negotiating contracts, and
utilizing varying public relations and advertising techniques.
(c)

CONDITIONS OF PARTICIPATION—

(1)
NON-FEDERAL CONTRIBUTIONS.—As a condition of receiving
financial assistance authorized by this section, the recipient organization shall agree to obtain,
after its application has been approved and notice of award has been issue, cash contributions
from non-Federal sources as follows:
(A)

in the first and second years, 1 non-Federal dollar for each 2

(B)

in the third, fourth, and fifth years, 1 non-Federal dollar for each

Federal dollars; and

Federal dollar.
(2)
FORM OF NON-FEDERAL CONTRIBUTIONS.—Not more than onehalf of the non-Federal sector matching assistance may be in the form of in-kind contributions
that are budget line items only, including office equipment and office space.
(3)
FORM OF FEDERAL CONTRIBUTIONS.—The financial assistance
authorized pursuant to this section may be made by grant, contract, or cooperative agreement and
may contain such provision, as necessary, to provide for payments in lump sum or installments,
and in advance or by way of reimbursement. The Administration may disburse up to 25 percent
of each year’s Federal share awarded to a recipient organization after notice of the award has
been issued and before the non-Federal sector matching funds are obtained.

262

(Rev. 13)

SMALL BUSINESS ACT

(4)
FAILURE TO OBTAIN NON-FEDERAL FUNDING.—If any recipient
of assistance fails to obtain the required non-Federal contribution during any project, it shall not
be eligible thereafter for advance disbursements pursuant to paragraph (3) during the remainder
of that project, or for any other project for which it is or may be funded by the Administration,
and prior to approving assistance to such organization for any other projects, the Administration
shall specifically determine whether the Administration believes that the recipient will be able to
obtain the requisite non-Federal funding and enter a written finding setting forth the reasons for
making such determination.
(5)
WAIVER ON NON-FEDERAL SHARE RELATING TO TECHNICAL
ASSISTANCE AND COUNSELING.—
(A)
IN GENERAL.—Upon request by a recipient organization, and in
accordance with this paragraph, the Administrator may waive, in whole or in part, the
requirement to obtain non-Federal funds under this subsection for the technical assistance and
counseling activities of the recipient organization carried out using financial assistance under this
section for a fiscal year. The Administrator may waive the requirement to obtain non-Federal
funds under this paragraph for successive fiscal years.
(B)
CONSIDERATIONS.—In determining whether to waive the
requirement to obtain non-Federal funds under this paragraph, the Administrator shall consider—
(i)

the economic conditions affecting the recipient

organization;
(ii)
the impact a waiver under this clause would have on the
credibility of the women’s business center program under this section;
(iii)

the demonstrated ability of the recipient organization to

(iv)

the performance of the recipient organization.

raise non-Federal funds; and

(C)

LIMITATIONS.—

(i)
IN GENERAL.—The Administrator may not waive the
requirement to obtain non-Federal funds under this paragraph if granting the waiver would
undermine the credibility of the women’s business center program under this section.
(ii)
SUNSET.—The Administrator may not waive the
requirement to obtain non-Federal funds under this paragraph for fiscal year 2013 or any fiscal
year thereafter.
(d)
CONTRACT AUTHORITY.—A women’s business center may enter into a
contract with a Federal department or agency to provide specific assistance to women and other
underserved small business concerns. Performance of such contract should not hinder the

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women's business centers in carrying out the terms of the grant received by the women's business
centers from the Administration.
(e)
SUBMISSION OF 5-YEAR PLAN.—Each applicant organization initially shall
submit a 5-year Plan to the Administration on proposed fundraising and training activities, and a
recipient organization may receive financial assistance under this program for a maximum of 5
years per women's business center site.
(f)
CRITERIA.—The Administration shall evaluate and rank 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 Administration. The criteria shall
include—
(1)
the experience of the applicant in conducting programs or ongoing efforts
designed to impart or upgrade the business skills of women business owners or potential owners;
(2)
the present ability of the applicant to commence a project within a
minimum amount of time;
(3)
the ability of the applicant to provide training and services to a
representative number of women who are both socially and economically disadvantaged; and
(4)

the location for the women's business center site proposed by the

applicant.
(g)

OFFICE OF WOMEN’S BUSINESS OWNERSHIP—

(1)
ESTABLISHMENT.—There is established within the Administration an
Office of Women’s Business Ownership, which shall be responsible for the administration of the
Administration’s programs for the development of women's business enterprises (as defined in
section 408 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 631 note)). The Office
of Women’s Business Ownership shall be administered by an Assistant Administrator, who shall
be appointed by the Administrator.
(2)
ASSISTANT ADMINISTRATOR OF THE OFFICE OF WOMEN’S
BUSINESS OWNERSHIP—
(A)
QUALIFICATIONS.—The position of Assistant Administrator
shall be a Senior Executive Service position under section 3132(a)(2) of title 5, United States
Code. The Assistant Administrator shall serve as a noncareer appointee (as defined in section
3132(a)(7) of that title).
(B)

RESPONSIBILITIES AND DUTIES—

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(i)
RESPONSIBILITIES.—The responsibilities of the
Assistant Administrator shall be to administer the programs and services of the Office of
Women’s Business Ownership established to assist women entrepreneurs in the areas of—

(ii)

(I)

starting and operating a small business;

(II)

development of management and technical skills;

(III)

seeking Federal procurement opportunities; and

(IV)

increasing the opportunity for access to capital.

DUTIES.—The Assistant Administrator shall—
(I)

administer and manage the Women's Business

Center program;
(II)
recommend the annual administrative and program
budgets for the Office of Women’s Business Ownership (including the budget for the Women's
Business Center program);
(III)

establish appropriate funding levels therefore;

(IV) review the annual budgets submitted by each
applicant for the Women's Business Center program;
(V)

select applicants to participate in the program under

(VI)

implement this section;

this section

(VII) maintain a clearinghouse to provide for the
dissemination and exchange of information between women's business centers;
(VIII) serve as the vice chairperson of the Interagency
Committee on Women’s Business Enterprise;
(IX)

serve as liaison for the National Women’s Business

(X)

advise the Administrator on appointments to the

Council; and
Women’s Business Council.
(C)
CONSULTATION REQUIREMENTS - In carrying out the
responsibilities and duties described in this paragraph, the Assistant Administrator shall confer

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with and seek the advice of the Administration officials in areas served by the women's business
centers.
(h)

PROGRAM EXAMINATION.—
(1)

IN GENERAL.—The Administration shall—

(A)
develop and implement an annual programmatic and financial
examination of each women’s business center established pursuant to this section, pursuant to
which each such center shall provide to the Administration—
(i)
an itemized cost breakdown of actual expenditures for costs
incurred during the preceding year; and
(ii)
documentation regarding the amount of matching
assistance from non-Federal sources obtained and expended by the center during the preceding
year in order to meet the requirements of subsection (c) and, with respect to any in-kind
contributions described in subsection (c)(2) that were used to satisfy the requirements of
subsection (c), verification of the existence and valuation of those contributions; and
(B)
analyze the results of each such examination and, based on that
analysis, make a determination regarding the programmatic and financial viability of each
women’s business center.
(2)
CONDITIONS FOR CONTINUED FUNDING.—In determining whether
to award a contract (as a sustainability grant) under subsection (l) or to renew a contract (either
as a grant or cooperative agreement) under this section with a women’s business center, the
Administration—
(A)
shall consider the results of the most recent examination of the
center under paragraph (1); and
(B)

may withhold such award or renewal, if the Administration

determines that—
(i)
the center has failed to provide any information required to
be provided under clause (i) or (ii) of paragraph (1)(A), or the information provided by the center
is inadequate; or
(ii)
the center has failed to provide any information required to
be provided by the center for purposes of the report of the Administration under subsection (j), or
the information provided by the center is inadequate.
(i)
CONTRACT AUTHORITY.—The authority of the Administrator to enter into
contracts shall be in effect for each fiscal year only to the extent and in the amounts as are
provided in advance in appropriations Acts. After the Administrator has entered into a contract,

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either as a grant or a cooperative agreement, with any applicant under this section, it shall not
suspend, terminate, or fail to renew or extend any such contract unless the Administrator
provides the applicant with written notification setting forth the reasons therefore and affords the
applicant an opportunity for a hearing, appeal, or other administrative proceeding under chapter
5 of title 5, United States Code.
(j)

MANAGEMENT REPORT.—

(1)
IN GENERAL.—The Administration shall prepare and submit to the
Committees on Small Business of the House of Representatives and the Senate a report on the
effectiveness of all projects conducted under this section.
(2)
CONTENTS.—Each report submitted under paragraph (1) shall include
information concerning, with respect to each women’s business center established pursuant to
this section—
(A)

the number of individuals receiving assistance;

(B)

the number of startup business concerns formed;

(C)

the gross receipts of assisted concerns;

(D)

the employment increases or decreases of assisted concerns;

(E)
to the maximum extent practicable, increases or decreases in
profits of assisted concerns; and
(F)
the most recent analysis, as required under subsection (h)(1)(B),
and the subsequent determination made by the Administration under that subsection.
(k)

AUTHORIZATION OF APPROPRIATIONS—

(1)
IN GENERAL.—There is authorized to be appropriated, to remain
available until the expiration of the pilot program under subsection (l)—

(2)

(A)

$12,000,000 for fiscal year 2000;

(B)

$12,800,000 for fiscal year 2001;

(C)

$13,700,000 for fiscal year 2002; and

(D)

$14,500,000 for fiscal year 2003.

USE OF AMOUNTS.—

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(A)
IN GENERAL.—Except as provided in subparagraph (B),
amounts made available under this subsection for fiscal year 1999, and each fiscal year
thereafter, 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.
(B)
EXCEPTIONS.—Of the amount made available under this
subsection for a fiscal year, the following amounts shall be available for selection panel costs,
post-award conference costs, and costs related to monitoring and oversight:
(i)

For fiscal year 2000, 2 percent.

(ii)

For fiscal year 2001, 1.9 percent.

(iii)

For fiscal year 2002, 1.9 percent.

(iv)

For fiscal year 2003, 1.6 percent.

(3)
EXPEDITED ACQUISITION.—Notwithstanding any other provision of
law, the Administrator, acting through the Assistant Administrator, may use such expedited
acquisition methods as the Administrator determines to be appropriate to carry out this section,
except that the Administrator shall ensure that all small business sources are provided a
reasonable opportunity to submit proposals.
(4)
PROGRAM.—

RESERVATION OF FUNDS FOR SUSTAINABILITY PILOT

(A)
IN GENERAL.—Subject to subparagraph (B), of the total amount
made available under this subsection for a fiscal year, the following amounts shall be reserved
for sustainability grants under subsection (l):
(i)

For fiscal year 2000, 17 percent.

(ii)

For fiscal year 2001, 18.8 percent.

(iii)

For fiscal year 2002, 30.2 percent.

(iv)

For fiscal year 2003, 30.2 percent.

(B)
USE OF UNAWARDED FUNDS FOR SUSTAINABILITY
PILOT PROGRAM GRANTS.—If the amount reserved under subparagraph (A) for any fiscal
year is not fully awarded to private nonprofit organizations described in subsection (l)(1)(B), the
Administration is authorized to use the unawarded amount to fund additional women’s business
center sites or to increase funding of existing women’s business center sites under subsection (b).
(l)

SUSTAINABILITY PILOT PROGRAM.—

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(1)
IN GENERAL.—There is established a 4-year pilot program under which
the Administration is authorized to award grants (referred to in this section as “sustainability
grants”) on a competitive basis for an additional 5-year project under this section to any private
nonprofit organization (or a division thereof)—
(A)
that has received financial assistance under this section pursuant to
a grant, contract, or cooperative agreement; and
(B)

that—
(i)

is in the final year of a 5-year project; or

(ii)
has completed a project financed under this section (or any
predecessor to this section) and continues to provide assistance to women entrepreneurs.
(2)
CONDITIONS FOR PARTICIPATION.—In order to receive a
sustainability grant, an organization described in paragraph (1) shall submit to the
Administration an application, which shall include—
(A)

a certification that the applicant—
(i)

is a private nonprofit organization;

(ii)

employs a full-time executive director or program manager

(iii)

as a condition of receiving a sustainability grant, agrees—

to manage the center; and

(I)
to a site visit as part of the final selection process
and to an annual programmatic and financial examination; and
(II)
to the maximum extent practicable, to remedy any
problems identified pursuant to that site visit or examination;
(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 sustainability grant is sought, including the ability to fundraise;
(C) information relating to assistance provided by the women’s business
center site for which a sustainability grant is sought in the area in which the site is located,
including—
(i)

the number of individuals assisted;

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(ii)

the number of hours of counseling, training, and workshops

(iii)

the number of startup business concerns formed;

provided; and

(D)

information demonstrating the effective experience of the applicant

in—
(i)
conducting financial, management, and marketing
assistance programs, as described in paragraphs (1), (2), and (3) of subsection (b), designed to
impart or upgrade the business skills of women business owners or potential owners;
(ii)
providing training and services to a representative number
of women who are both socially and economically disadvantaged;
(iii)

using resource partners of the Administration and other

(iv)

complying with the cooperative agreement of the applicant;

entities, such as universities;

and
(v)
the prudent management of finances and staffing, including
the manner in which the performance of the applicant compared to the business Plan of the
applicant and the manner in which grant funds awarded under subsection (b) were used by the
applicant; and
(E)
a 5-year Plan that projects the ability of the women’s business
center site for which a sustainability grant is sought—
(i)
to serve women business owners or potential owners in the
future by improving fundraising and training activities; and
(ii)
to provide training and services to a representative number
of women who are both socially and economically disadvantaged.
(3)

REVIEW OF APPLICATIONS.—
(A)

IN GENERAL.—The Administration shall—

(i)
review each application submitted under paragraph (2)
based on the information provided in subparagraphs (D) and (E) of that paragraph, and the
criteria set forth in subsection (f);
(ii)
as part of the final selection process, conduct a site visit at
each women’s business center for which a sustainability grant is sought; and

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(iii) approve or disapprove applications for sustainability grants
simultaneously with applications for grants under subsection (b).
(B)
DATA COLLECTION.—Consistent with the annual report to
Congress under subsection (j), each women’s business center site that is awarded a sustainability
grant shall, to the maximum extent practicable, collect information relating to—
(i)

the number of individuals assisted;

(ii)

the number of hours of counseling and training provided

(iii)

the number of startup business concerns formed;

(iv)

any available gross receipts of assisted concerns; and

(v)

the number of jobs created, maintained, or lost at assisted

and workshops conducted;

concerns.
(C)
RECORD RETENTION.—The Administration shall maintain a
copy of each application submitted under this subsection for not less than 10 years.
(4)

NON-FEDERAL CONTRIBUTION.—

(A)
IN GENERAL.—Notwithstanding any other provision of this
section, as a condition of receiving a sustainability grant, an organization described in paragraph
(1) shall agree to obtain, after its application has been approved under paragraph (3) and notice
of award has been issued, cash and in-kind contributions from non-Federal sources for each year
of additional program participation in an amount equal to 1 non-Federal dollar for each Federal
dollar.
(B)
FORM OF NON-FEDERAL CONTRIBUTIONS.—Not more than
50 percent of the non-Federal assistance obtained for purposes of subparagraph (A) may be in
the form of in-kind contributions that are budget line items only, including office equipment and
office space.
(5)
TIMING OF REQUESTS FOR PROPOSALS..—In carrying out this
subsection, the Administration shall issue requests for proposals for women’s business centers
applying for the pilot program under this subsection simultaneously with requests for proposals
for grants under subsection (b).
(m)

CONTINUED FUNDING FOR CENTERS.—

(1)
IN GENERAL.—A nonprofit organization described in paragraph (2)
shall be eligible to receive, subject to paragraph (3), a 3-year grant under this subsection.

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(2)
APPLICABILITY.—A nonprofit organization described in this paragraph
is a nonprofit organization that has received funding under subsection (b) or (l).
(3)

APPLICATION AND APPROVAL CRITERIA.—

(A)
CRITERIA.—Subject to subparagraph (B), the Administrator shall
develop and publish criteria for the consideration and approval of applications by nonprofit
organizations under this subsection.
(B)
CONTENTS.—Except as otherwise provided in this subsection,
the conditions for participation in the grant program under this subsection shall be the same as
the conditions for participation in the program under subsection (l), as in effect on the date of
enactment of this Act.
(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 subsection and notify the applicant for each application.
(4)

AWARD OF GRANTS.—

(A)
IN GENERAL.—Subject to the availability of appropriations, the
Administrator shall make a grant for the Federal share of the cost of activities described in the
application to each applicant approved under this subsection.
(B)
AMOUNT.—A grant under this subsection shall be for not more
than $150,000, for each year of that grant.
(C)
FEDERAL SHARE.—The Federal share under this subsection
shall not be more than 50 percent.
(D)
PRIORITY.—In allocating funds made available for grants under
this section, the Administrator shall give applications under this subsection or subsection (l)
priority over first-time applications under subsection (b).
(5)

RENEWAL.—

(A)
IN GENERAL.—The Administrator may renew a grant under this
subsection for additional 3-year periods, if the nonprofit organization submits an application for
such renewal at such time, in such manner, and accompanied by such information as the
Administrator may establish.
(B)
UNLIMITED RENEWALS.—There shall be no limitation on the
number of times a grant may be renewed under subparagraph (A).
(n)

PRIVACY REQUIREMENTS.—

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(1)
IN GENERAL.—A women’s business center may not disclose the name,
address, or telephone number of any individual or small business concern receiving assistance
under this section without the consent of such individual or small business concern, unless—
(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; or
(B)
the Administrator considers such a disclosure to be necessary for
the purpose of conducting a financial audit of a women’s business center, but a disclosure under
this subparagraph shall be limited to the information necessary for such audit.
(2)

ADMINISTRATION USE OF INFORMATION.—This subsection shall

not—
(A)

restrict Administration access to program activity data; or

(B)
prevent the Administration from using client information (other
than the information described in subparagraph (A)) to conduct client surveys.
(3)
REGULATIONS.—The Administrator shall issue regulations to establish
standards for requiring disclosures during a financial audit under paragraph (1)(B).
(o)

STUDY AND REPORT ON REPRESENTATION OF WOMEN.—

(1)
STUDY.—The Administrator shall periodically conduct a study to
identify industries, as defined under the North American Industry Classification System,
underrepresented by small business concerns owned and controlled by women.
(2)
REPORT.—Not later than 5 years after the date of enactment of this
subsection, and every 5 years thereafter, the Administrator 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 on the results of each study under paragraph (1) conducted
during the 5-year period ending on the date of the report.
§ 30. OVERSIGHT OF REGULATORY ENFORCEMENT.
(a)

DEFINITIONS.—For purposes of this section, the term—

(1)
“Board” means a Regional Small Business Regulatory Fairness Board
established under subsection (c); and
(2)
“Ombudsman” means the Small Business and Agriculture Regulatory
Enforcement Ombudsman designated under subsection (b).
(b)

SBA ENFORCEMENT OMBUDSMAN.—

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