article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Veteran-Owned Small Business Promotion Act of 2009''. SEC. 2. REAUTHORIZATION AND IMPROVEMENT OF DEPARTMENT OF VETERANS AFFAIRS SMALL BUSINESS LOAN PROGRAM. (a) Reauthorization.-- (1) In general.--Chapter 37 of title 38, United States Code, is amended by striking section 3751. (2) Clerical amendment.--The table of sections at the beginning of such chapter is amended by striking the item relating to section 3751. (3) Conforming amendment.--Section 3749 of such title is amended by striking subsection (e). (b) Expansion of Eligibility for Small Business Loans.--Chapter 37 of such title is further amended-- (1) in section 3741-- (A) by striking paragraph (2); (B) by striking ``this subchapter--'' and all that follows through ```disabled veteran''' and inserting ``this subchapter, the term `disabled veteran'''; and (C) by striking ``30 percent'' and inserting ``10 percent''; and (2) in section 3742(a)(3)(A), by striking ``of the Vietnam era or disabled veterans''. (c) Repeal of Authority To Make Direct Loans.--Chapter 37 of such title, as amended by subsections (a) and (b), is further amended-- (1) in section 3742-- (A) in subsection (a)-- (i) in paragraph (2), by striking ``(A) loan guaranties, or (B) direct loans'' and inserting ``loan guarantees''; and (ii) in paragraph (3)(A), by striking ``and that at least 51 percent of a business concern must be owned by disabled veterans in order for such concern to qualify for a direct loan''; (B) in subsection (b)-- (i) by striking paragraph (1) and redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively; and (ii) in paragraph (2), as so redesignated, by striking ``make or''; (C) in subsection (c), by striking ``made or''; (D) in subsection (d)-- (i) by striking paragraph (2); (ii) by striking ``(1) Except as provided in paragraph (2) of this subsection, the'' and inserting ``The''; and (iii) by striking ``make or''; and (E) in subsection (e)-- (i) in paragraph (1)-- (I) in the first sentence, by striking ``or, if the loan was a direct loan made by the Secretary, may suspend such obligation''; and (II) in the second sentence, by striking ``or while such obligation is suspended''; (ii) by striking ``or suspend'' each place it appears; (iii) by striking ``or suspension'' each place it appears (iv) by striking ``or suspends'' each place it appears; and (v) in paragraph (4)(B), by striking ``or suspended''; (2) in section 3743-- (A) by striking ``that is provided a direct loan under this subchapter, or''; (B) by striking the comma between ``subchapter'' and ``shall''; (C) by striking ``direct or''; and (D) by striking ``for the amount of such direct loan or, in the case of a guaranteed loan,''; (3) in section 3746, by striking ``made or'' both places it appears; (4) in section 3749(b), by striking ``and direct loan''; and (5) in section 3750, by striking ``made or''. (d) Increase of Maximum Guaranty Amount.--Section 3742(b)(2), as redesignated by subsection (c)(1)(B)(i), is amended by striking ``$200,000'' and inserting ``$500,000''. (e) Authority To Enter Into a Contract.--Section 3742 of such title, as amended by subsection (c), is further amended by adding at the end the following new subsection: ``(f) The Secretary shall enter into a contract with an appropriate entity for the purpose of carrying out the program under this subchapter.''. (f) Authority of Secretary To Subsidize Interest Rates of Guaranteed Loan.--Section 3745 of such title is amended by striking subsection (b) and inserting the following new subsection (b): ``(b) For any loan guaranteed under this subchapter, the Secretary may pay to the lender such amounts as may be required to reduce the rate of interest payable by the veterans' small business concern by up to one-half of one percent, except that the rate of interest payable by such concern shall not be less than one-half of one percent.''. (g) Preference for Members of National Guard and Reserves Activated in Support of Global War on Terrorism.--Section 3748 of such title is amended-- (1) by striking ``and, second'' and inserting ``second''; and (2) by inserting before the period at the end ``, and, third, to veterans' small business concern in which veterans who, as members of a reserve component, are activated in support of the Global War on Terrorism have a significant ownership interest''. (h) Authorization of Appropriations.--Section 3749(c)(1) of such title is amended by striking ``a total of $25,000,000'' and inserting ``$1,000,000,000 for each fiscal year''. SEC. 3. LIMITATION ON REQUIREMENT OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS TO FURNISH CERTAIN BONDS. (a) Limitation.--Subchapter II of chapter 81 of title 38, United States Code, is amended by adding at the end the following new section: ``Sec. 8129. Small business concerns owned and controlled by veterans: contractor bonds ``(a) Bonds Required.--Notwithstanding subchapter II of chapter 31 of title 40, in entering into a contract with a small business concern owned and controlled by veterans for the construction, alteration, or repair of any public building or public work of the Department the Secretary-- ``(1) may not require the concern to furnish a performance or payment bond in an amount that exceeds 50 percent of the amount of the contract; and ``(2) shall ensure that the concern does not require any subcontractor that is a small business concern owned and controlled by veterans to furnish a performance or payment bond in an amount that exceeds 50 percent of the amount of the subcontract. ``(b) Payment of Subcontractor Bonds.--In entering into a contract described in subsection (a) with the Secretary, a prime contractor may furnish a performance or payment bond on behalf of a subcontractor that is a small business concern owned and controlled by veterans. ``(c) Definition.--For purposes of this section, the term `small business concern owned and controlled by veterans' means a small business concern that is included in the small business database maintained by the Secretary under section 8127(f) of this title.''. (b) Clerical Amendment.--The table of sections at the beginning of such chapter is amended by adding at the end of the items relating to such subchapter the following new item: ``8129. Small business concerns owned and controlled by veterans: contractor bonds.''. SEC. 4. TREATMENT OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS A SOCIALLY AND ECONOMICALLY DISADVANTAGED. Section 8128 of such title is amended-- (1) by redesignating subsection (b) as subsection (c); and (2) by inserting after subsection (a) the following new subsection: ``(b) Treatment as Socially and Economically Disadvantaged.--The Secretary may evaluate a bid submitted by a small business concern owned and controlled by veterans and award a contract to such a concern on the same basis as the Administrator of the Small Business Administration may evaluate a bid submitted by a socially and economically disadvantaged small business concern and award a contract to such a concern under section 8(a) of the Small Business Act (15 U.S.C. 637(a)).''.
summary: Veteran-Owned Small Business Promotion Act of 2009 - Reinstates (under current law, terminated as of the end of FY1986) the veteran-owned small business loan program, under which the Secretary of Veterans Affairs may provide loans to veteran-owned small businesses for: (1) financing plant construction, conversion, or expansion; (2) financing the acquisition of equipment, facilities, machinery, supplies, or materials; or (3) supplying working capital. Makes eligible for such loans small business owners who are veterans and have a disability rated at 10% (under current law, 30%) or more, and includes all veterans (under current law, limited to Vietnam era veterans and veterans discharged or released due to a disability incurred or aggravated in the line of duty). Repeals the authority to make direct loans under the program (thereby allowing only loan guaranties). Increases from $200,000 to $500,000 the maximum loan guaranty amount. Authorizes the Secretary to subsidize a loan lender in order to reduce by up to 1/2% the interest rate paid by the veteran-owned small business. Includes under a loan preference members of the National Guard and reserves activated in support of the Global War on Terrorism. Limits performance bond requirements of veteran-owned small businesses with respect to the construction, alteration, or repair of any Department of Veterans Affairs (VA) public building or public work. Treats a small business owned and controlled by veterans as a socially and economically disadvantaged small business for purposes of contracts awarded to the latter businesses under provisions of the Small Business Act.