To establish a pilot program under which the Administrator of the Small Business Administration, in consultation with regional technology consultants, may make direct loans to technology-related small business concerns.

February 26, 2002

Mr. ISRAEL (for himself, Mr. HONDA, and Mr. GRUCCI) introduced the following bill; which was referred to the Committee on Small Business

To establish a pilot program under which the Administrator of the Small Business Administration, in consultation with regional technology consultants, may make direct loans to technology-related small business concerns.

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 `Small Business High Technology Entrepreneurship Act of 2001'.

SEC. 2. FINDINGS AND PURPOSE.

(a) FINDINGS- Congress finds the following:

(1) The United States is uniquely positioned to benefit from the development and commercialization of technology resulting from the development of biosciences, information technology, and electronic technology.

(2) Advances in biosciences, information technology, and electronic technology will create new products, services, and businesses, leading to high paying jobs and economic growth.

(3) Technology networks are becoming necessary tools for businesses in the United States because of their ability to efficiently transfer information.

(4) The development of biotechnology has produced processes such as 3-dimensional volume visualization and advanced signal processing which will help revolutionize both medical diagnostics and surgery.

(5) The ability of the electronic industry to rapidly develop and manufacture measuring devices, sensors, semiconductors, and other electronic components is an essential component to providing for the national security of the United States.

(6) The bioscience, information technology, and electronic technology sectors of the economy have all produced important products, services, and businesses.

(7) Building on past gains in these sectors is vital to growing the United States economy, promoting health, and increasing educational opportunities.

(b) PURPOSE- The purpose of this Act is to enable small business concerns engaged in biotechnology, computer technology, and electronics to produce essential new products, businesses, employment opportunities, and economic growth through technological innovation.

SEC. 3. TECHNOLOGY DIRECT LOAN PILOT PROGRAM.

(a) IN GENERAL- The Administrator of the Small Business Administration may make direct loans under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) to technology-related small business concerns located in a technology region.

(b) SPECIAL RULES- Notwithstanding the requirements of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), the following special rules apply to loans described in subsection (a):

(1) AMOUNT OF LOANS- The Administrator may make such a loan to a small business concern if the total amount outstanding and committed to such concern under subsection (a) of this section and section 7(a) of the Small Business Act (15 U.S.C. 636(a)) would not exceed $5,000,000.

(2) TECHNOLOGICAL CONSULTATION-

(A) IN GENERAL- In evaluating each application for such a loan, the Administrator shall consult with, and give considerable weight to the assessments, recommendations, and conclusions of, the regional technology consultant regarding the technological feasibility and commercial viability of the applicant's business plan, including any technological research or development involved in such plan.

(B) SELECTION OF REGIONAL TECHNOLOGY CONSULTANTS- The Administrator shall select 1 non-profit organization located in each technology region to serve as the technology consultant for such region. In selecting each regional technology consultant, the Administrator shall ensure that such consultant has knowledge and experience in evaluating the technological feasibility and commercial viability of business plans of technology-related small business concerns.

(3) RULE FOR RESOLVING REASONABLE DOUBTS- Recognizing that greater risk may be associated with such loans, any reasonable doubt regarding the soundness of the applicant's business plan (including the feasibility and viability of any technological research or development involved in such plan) or the soundness of the loan for purposes of section 7(a)(6) of the Small Business Act (15 U.S.C. 536(a)(6)) shall be resolved in favor the applicant.

(c) TERMINATION- The Administrator may not make a loan pursuant to the special rules of this section after the end of the 2-year period beginning on the date of the enactment of this Act.

(d) ANNUAL REPORTS- In any year during which the Administrator is authorized to make loans under this section, the Administrator shall submit to Congress a report regarding the technology direct loan pilot project conducted under this section. Such report shall include--

(1) a list of the technology-related small business concerns approved for loans under this section during such year and the amounts of such loans;

(2) recommendations for legislation that would improve the pilot project; and

(3) recommendations regarding the expansion of the pilot project to additional technology regions or for an additional period of time.

(e) DEFINITIONS- For purposes of this section:

(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Small Business Administration.

(2) REGIONAL TECHNOLOGY CONSULTANT- The term `regional technology consultant' means the technology consultant selected by the Administrator under subsection (b)(2)(B) for a technology region.

(3) SMALL BUSINESS CONCERN- The term `small business concern' has the meaning given such term in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

(4) TECHNOLOGY REGION- The term `technology region' describes each of the following regions:

(A) Nassau and Suffolk Counties in New York.

(B) Santa Clara and Santa Cruz Counties in California.

(5) TECHNOLOGY-RELATED SMALL BUSINESS CONCERN- The term `technology-related small business concern' means any small business concern primarily engaged in one or any combination of the following:

(A) Developing, producing, assembling, or manufacturing electronic components, computer hardware, or computer software; or

(B) The biotechnology industry.

END