Sec. 201 Short title
This title may be cited as the “Puerto Rico Opportunity, Small Business Prosperity, and Economic Revitalization Act of 2018”.
Title II — Flexibility for Puerto Rico in Small Business Administration programs
II Flexibility for Puerto Rico in Small Business Administration programs
Sec. 202 Definitions
In general— In this title:
Administration; Administrator— The terms Administration and Administrator mean the Small Business Administration and the Administrator thereof.
Microloan program— The term microloan program means the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)).
Oversight Board termination date— The term Oversight Board termination date means the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates.
Puerto Rico— The term Puerto Rico means the Commonwealth of Puerto Rico.
Puerto Rico business— The term Puerto Rico business means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.
Small business concern— The term small business concern has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).
Small Business Act— Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:
“(ee) Puerto Rico business—In this Act, the term Puerto Rico business means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.”
A Lending
Sec. 211 Microloan program for Puerto Rico small business concerns
Increase in access to capital for certain intermediaries— Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended—
by inserting “and except as provided in clause (ii)” after “subsection (a)(3)”;
by striking “Notwithstanding” and inserting the following:
“(i) In general—Notwithstanding”
by adding at the end the following:
“(ii) Exception for certain Puerto Rico businesses
“(I) In general—No loan shall be made under this subsection if the total amount outstanding and committed to 1 covered intermediary (excluding outstanding grants) from the business loan and investment fund established by this Act would, as a result of such loan, exceed $6,000,000 in the remaining years of the covered intermediary's participation in the program.
“(II) Definition—In this clause, the term covered intermediary means an intermediary that—
“(aa) is participating in the program; and
“(bb) submits to the Administrator a certification that not less than 20 percent of the microloans made by the intermediary under this subsection, during such period as the Administrator may specify, will be made to Puerto Rico businesses.”
Waiver of 25/75 rule for microloans to Puerto Rico small business concerns— Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) is amended—
in clause (i), by striking “Each” and inserting “Except as provided in clause (iii), each”; and
by adding at the end the following:
“(iii) Exception for certain intermediaries—The Administrator shall waive the requirements of clause (i) for an intermediary for which not less than 25 percent of the loans made by the intermediary are made to Puerto Rico businesses.”
SBA study— Not later than 1 year after the date of enactment of this Act, the Administrator shall conduct 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 following:
The operations (including services provided, structure, size, and area of operation) of a representative sample of—
intermediaries that are eligible for participation in the microloan program and that participate in the microloan program; and
intermediaries (including those operated for profit, operated as nonprofit organizations, and affiliated with a United States institution of higher learning (as defined in section 3452 of title 38, United States Code)) that are so eligible and that do not participate in the microloan program.
The reasons why intermediaries described in paragraph (1)(B) choose not to participate in the microloan program.
Recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph (1)(B).
Recommendations for increasing the number of intermediaries located in the territories of the United States or in economically distressed areas (as defined in section 7(m)(11)(D) of the Small Business Act (15 U.S.C. 636(m)(11)(D))) that are eligible for participation in the microloan program.
Recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries.
GAO study on microloan intermediary practices— Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States 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 evaluating—
oversight of the microloan program by the Administration, including oversight of intermediaries participating in the microloan program; and
the specific processes used by the Administration to ensure—
compliance by intermediaries participating in the microloan program; and
the overall performance of the microloan program.
B Procurement
Sec. 221 Priority for surplus property transfers
Section 7(j)(13)(F) of the Small Business Act (15 U.S.C. 636(j)(13)(F)) is amended by adding at the end the following:
“(iii)
“(I) In this clause, the term covered period means the period beginning on the date of enactment of this clause and ending on the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates.
“(II) The Administrator may transfer technology or surplus property under clause (i) on a priority basis to a Puerto Rico business if the Puerto Rico business meets the requirements for such a transfer, without regard to whether the Puerto Rico business is a Program Participant.”
Sec. 222 Subcontracting incentives for protege firms that are Puerto Rico businesses
Section 45(a) of the Small Business Act (15 U.S.C. 657r(a)) is amended by adding at the end the following:
“(3) Puerto Rico small business concerns
“(A) In general—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 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates, the Administrator shall provide additional incentives to covered mentors, including providing additional credit for subcontracts awarded to covered proteges and costs incurred for providing training to covered proteges.
“(B) Definitions—In this paragraph—
“(i) the term covered mentor means a mentor that enters into an agreement under this Act, or under any mentor-protege program approved under subsection (b)(1), with a covered protege; and
“(ii) the term covered protege means a protege—
“(I) of a covered mentor; and
“(II) that has its principal office located in the Commonwealth of Puerto Rico.”
Sec. 223 Additional mentor-protege relationships for protege firms that are Puerto Rico businesses
Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by inserting “, except that such restrictions shall not apply to a relationship that was entered into before the date on which the Oversight Board established under section 101 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2121) terminates and in which the principal office of the protege is located in the Commonwealth of Puerto Rico” after “each participant”.
C Entrepreneurial Development
Sec. 231 FAST grant program for Puerto Rico
In general— Section 34 of the Small Business Act (15 U.S.C. 657d) is amended by adding at the end the following:
“(j) FAST grant program for Puerto Rico
“(1) Establishment—The Administrator shall establish a program that shall be part of the FAST program to make awards to, or enter into cooperative agreements with, a Puerto Rico business.
“(2) Technical assistance—If no applicant is selected to receive assistance under this subsection, the Administrator shall use amounts appropriated to carry out this subsection to provide business advice and counseling to a Puerto Rico business.
“(3) Waiver of matching requirements—The Administrator may, upon application, waive the matching requirements under subsection (e)(2) for an applicant that receives an award or has in effect a cooperative agreement under this subsection.
“(4) Funding—There is authorized to be appropriated $100,000 for fiscal year 2019, and each fiscal year thereafter, to carry out this subsection.”
Prospective repeal— Effective on the Oversight Board termination date, section 34 of the Small Business Act (15 U.S.C. 657d), as amended by subsection (a), is amended by striking subsection (j).
D Small Business Administration Oversight
Sec. 241 Requirement for the District Director of Puerto Rico
In general— During the period beginning on the date of enactment of this Act and ending on the Oversight Board termination date, the director of the district office of the Administration located in Puerto Rico shall submit directly to Congress and the Administrator an annual report on the activities of the Administration in Puerto Rico.
Coordination— In preparing each report described in subsection (a), the director described in such subsection shall consult with other Federal agencies to collect data on grants, programs, and outreach activities carried out by such agencies that affect any Puerto Rico business.
E Disaster Loan Program Expansion
Sec. 251 Amendment to definition of disaster for 7(b) loans
in subparagraph (B), by striking “and” at the end;
in subparagraph (C), striking the period and inserting “; and”; and
by adding at the end the following:
“(D) communicable diseases for which the Federal Government issues a travel alert or travel warning.”
Applicability— The amendment made by subsection (a) shall apply to a communicable disease—
for which the Federal Government issues a travel alert or travel warning before, on, or after the date of enactment of this Act; and
the effects of which are experienced on or after the date of enactment of this Act.
F Amendment to the Investment Company Act of 1940
Sec. 261 Termination of exemption for companies in territories of the United States
by striking paragraph (1); and
by redesignating paragraphs (2) through (5) as paragraphs (1) through (4), respectively.
Effective date and safe harbor—
Effective date— Except as provided in paragraph (2), the amendment made by subsection (a) shall take effect on the date of enactment of this Act.
Safe harbor— With respect to a company that is exempt under section 6(a)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(a)(1)), as in effect on the day before the date of enactment of this Act, the amendment made by subsection (a) shall take effect on the date that is 3 years after the date of enactment of this Act.
Extension of safe harbor— The Securities and Exchange Commission, by rule and regulation upon its own motion, or by order upon application, may conditionally or unconditionally, under section 6(c) of the Investment Company Act of 1940 (15 U.S.C. 80a–6(c)), further delay the effective date for a company described in paragraph (2) to be not later than the date that is 6 years after the date of enactment of this Act if, before the end of the initial 3-year period, the Commission determines that such a rule, regulation, motion, or order is necessary or appropriate in the public interest and for the protection of investors.