text: SECTION 1. PURPOSE.
  
      The purpose of this Act is to increase telecommunications ownership 
  opportunities for small businesses, including small businesses owned or 
  controlled by socially disadvantaged individuals, through Small 
  Business Administration participation in a market-oriented 
  restructuring of the credit aspects of Federal Communications 
  Commission telecommunications spectrum auctions.
  
  SEC. 2. ASSOCIATE ADMINISTRATOR FOR TELECOMMUNICATIONS FINANCE.
  
      (a) In General.--Section 4(b)(1) of the Small Business Act (15 
  U.S.C. 633(b)(1)) is amended--
              (1) in the fifth sentence, by striking ``five'' and 
          inserting ``six''; and
              (2) by adding at the end the following new sentence: ``One 
          of the Associate Administrators shall be designated at the time 
          of appointment as the Associate Administrator for 
          Telecommunications Finance and shall have the qualifications 
          and responsibilities specified in subsection (g).''.
      (b) Qualifications and Responsibilities.--Section 4 of the Small 
  Business Act (15 U.S.C. 633) is amended by adding at the end the 
  following new subsection:
      ``(g) Associate Administrator for Telecommunications Finance.--
              ``(1) In general.--The Associate Administrator for 
          Telecommunications Finance--
                      ``(A) shall be an employee in the competitive 
                  service or in the Senior Executive Service and a career 
                  appointee;
                      ``(B) shall be responsible to the Administrator for 
                  the supervision and management of financing in the area 
                  of telecommunications, including the programs and other 
                  activities under section 38 and section 39;
                      ``(C) shall establish, with respect to 
                  telecommunications concerns, the detailed definitions 
                  or standards referred to in section 3(a)(2);
                      ``(D) shall have authority--
                              ``(i) to prescribe maximum amounts for loan 
                          guarantees under any program under section 38 
                          or 39;
                              ``(ii) to approve all loan guarantees in 
                          telecommunications; and
                              ``(iii) to approve all direct loans under 
                          section 38(a)(1); and
                      ``(E) in addition to any other duties under this 
                  Act, shall have authority to approve loan guarantees 
                  under section 7(a) with respect to Federal 
                  Communications Commission spectrum licenses acquired in 
                  the secondary market.
              ``(2) Neutrality in choice of program by applicant for loan 
          or loan guarantee.--In the administration of the 
          Telecommunications Spectrum Installment Loan Program under 
          section 38 and the Telecommunications Accelerated Certified 
          Lender Program under section 39, the Associate Administrator 
          for Telecommunications Finance shall observe strict neutrality 
          as to the choice that a potential applicant may make as to the 
          appropriateness of a program for the applicant. The choice of 
          one program over the other shall be solely that of the 
          applicant and the Associate Administrator shall neither 
          encourage nor discourage any applicant in that choice.''.
  
  SEC. 3. SMALL BUSINESS ADMINISTRATION FINANCING FOR ENTREPRENEUR 
                PARTICIPATION IN TELECOMMUNICATIONS SPECTRUM AUCTIONS 
                CONDUCTED BY FEDERAL COMMUNICATIONS COMMISSION.
  
      The Small Business Act (15 U.S.C. 631 et seq.) is amended--
              (1) by redesignating section 37 as section 40; and
              (2) by inserting after section 36 the following new 
          sections:
  
  ``SEC. 37. TELECOMMUNICATIONS FINANCE OFFICE.
  
      ``(a) In General.--There is established, within the Administration, 
  an office to perform functions relating to the policies and programs of 
  the Administration with respect to financing in the area of 
  telecommunications. The office--
              ``(1) shall be known as the `Telecommunications Finance 
          Office';
              ``(2) shall be headed by the Associate Administrator for 
          Telecommunications Finance under section 4(g);
              ``(3) shall be staffed by employees who are from diverse 
          backgrounds and who are highly skilled in the areas of 
          telecommunications technology and telecommunications financing; 
          and
              ``(4) shall be the principal entity within the 
          Administration for implementation of the programs under 
          sections 38 and 39.
      ``(b) Funding.--The expenses of the Telecommunications Finance 
  Office shall be paid from the Telecommunications Loan Guarantee Fund, 
  established under section 715 of the Communications Act of 1934.
  
  ``SEC. 38. TELECOMMUNICATIONS SPECTRUM INSTALLMENT LOAN PROGRAM.
  
      ``(a) In General.--There is established a program, to be known as 
  the `Telecommunications Spectrum Installment Loan Program', under which 
  the Administrator--
              ``(1) shall make direct loans to qualified 
          telecommunications borrowers for acquisition of spectrum 
          licenses through Federal Communications Commission auction; and
              ``(2) shall guarantee loans to qualified telecommunications 
          borrowers for telecommunications equipment and working capital 
          in connection with any acquisition referred to in paragraph 
          (1).
      ``(b) Direct Loan Conditions.--
              ``(1) Limitation on disbursement.--The Administrator may 
          not disburse any loan amount under subsection (a)(1) if the 
          cost of the license involved exceeds the approved loan amount 
          plus, as determined by the Administrator, cash available to the 
          applicant for the purpose of paying the difference between the 
          approved loan amount and the cost of the license.
              ``(2) Interest at market rate.--The rate of interest on a 
          loan shall be the prime interest rate or such other competitive 
          market rate as the Administrator determines to be appropriate.
              ``(3) Interest-only period.--The Administrator, in 
          accordance with criteria established by regulation, may 
          provide, on a case-by-case basis, for an initial period during 
          which a borrower under subsection (a)(1) shall pay interest 
          only. In the case of such a determination, loan principal shall 
          be amortized over the remainder of the loan term. The maximum 
          interest-only period under this paragraph is 6 years.
              ``(4) Maximum loan term.--The term of any loan under 
          subsection (a)(1) may not exceed the term of the spectrum 
          license involved.
      ``(c) Loan Guarantee Condition.--The Administrator may make loan 
  guarantees under subsection (a)(2) to a borrower under subsection 
  (a)(1) only for telecommunications equipment and working capital 
  necessary to carry out the terms of the license to be financed.
      ``(d) Security Interest and Forced Sale Conditions for Direct Loans 
  and Loan Guarantees.--The Administrator shall require, as a condition 
  of any direct loan under subsection (a)(1) and any loan guarantee under 
  subsection (a)(2), that--
              ``(1) any disbursement of a loan amount be fully protected 
          by a secured interest in the proceeds of a sale or other 
          assignment of the license involved; and
              ``(2) the loan agreement contain specific measures by 
          which, in the case of a default by the borrower, the lender may 
          require the borrower to sell or otherwise assign the license.
      ``(e) General Applicability; Waiver Exception.--Loans and loan 
  guarantees under this section shall be subject to all otherwise 
  applicable provisions of this Act, except that the Administrator may 
  waive any limitation on the amount of an individual loan or loan 
  guarantee or on the total amount of loans or loan guarantees to a 
  single borrower.
      ``(f) Treasury Account.--The Administrator shall notify the 
  Secretary of the Treasury of each loan transaction entered into under 
  subsection (a)(1). Upon receipt of notice under the preceding sentence, 
  the Secretary shall establish an account in the Treasury for the loan.
      ``(g) Definitions.--As used in this section--
              ``(1) the term `qualified telecommunications borrower' 
          means a small business concern that, as determined by the 
          Administrator, has, in addition to the other requirements of 
          this Act, a level of specialized telecommunications expertise 
          (including technical knowledge, business skill, and management 
          experience) that is appropriate for the purpose for which the 
          loan or guarantee involved is made; and
              ``(2) the term `Administrator' means the Administrator, 
          acting through the Associate Administrator for 
          Telecommunications Finance.
      ``(h) Collection of Data.--The Administrator shall collect data 
  with respect to the operation of the program under this section. The 
  data so collected--
              ``(1) shall be accumulated on a calendar year basis;
              ``(2) shall be maintained in an electronic database;
              ``(3) shall include information on the ethnicity, race, and 
          sex of all applicants, whether the applications involved are 
          approved, denied, withdrawn, or otherwise disposed of; and
              ``(4) shall include other information that, as determined 
          by the Administrator, is relevant to the disposition of 
          applications.
      ``(i) Report.--Not later than December 31 of each year, the 
  Administrator shall submit to the Congress a report, with respect to 
  the preceding calendar year, of the status of the program under this 
  section. The report shall include--
              ``(1) a statistical analysis (without personal identifying 
          information) of the diversity characteristics of applicants and 
          borrowers under the program; and
              ``(2) a probability analysis with respect to the diversity 
          of applicants who receive loans under the program.
  
  ``SEC. 39. TELECOMMUNICATIONS ACCELERATED CERTIFIED LENDER PROGRAM.
  
      ``(a) In General.--There is established a program, to be known as 
  the `Telecommunications Accelerated Certified Lender Program', under 
  which the Administrator--
              ``(1) shall guarantee loans made to qualified 
          telecommunications borrowers--
                      ``(A) for acquisition of spectrum licenses through 
                  Federal Communications Commission auction; and
                      ``(B) for acquisition of spectrum licenses in the 
                  secondary market for licenses originally acquired 
                  through Federal Communications Commission auction; and
              ``(2) shall guarantee loans made to qualified 
          telecommunications borrowers for telecommunications equipment 
          and working capital in connection with any acquisition referred 
          to in paragraph (1).
      ``(b) Funding.--The expenses of loan guarantees under subsection 
  (a) shall be paid from the Telecommunications Loan Guarantee Fund, 
  established under section 715 of the Communications Act of 1934.
      ``(c) Approved Lenders.--Loans guaranteed under this section shall 
  be made by lenders that are insured depositary institutions and are 
  approved by the Administrator. In evaluating an institution for 
  approval, the Administrator shall take into consideration the financial 
  stability of the institution, the experience and expertise of the 
  institution in lending to telecommunications borrowers, and the need 
  for diversity in the management and ownership of approved institutions.
      ``(d) Loan Guarantee Conditions.--
              ``(1) Limitation on disbursement.--The Administrator shall 
          require, as a condition of any loan guarantee under subsection 
          (a)(1), that the lender may not disburse any loan amount if the 
          cost of the license involved exceeds the approved loan amount 
          plus, as determined by the Administrator, cash available to the 
          applicant for the purpose of paying the difference between the 
          approved loan amount and the cost of the license.
              ``(2) Security interest and forced sale requirements.--The 
          Administrator shall require, as a condition of any loan 
          guarantee under subsection (a), that--
                      ``(A) any disbursement of a loan amount be fully 
                  protected by a secured interest in the proceeds of a 
                  sale or other assignment of the license involved; and
                      ``(B) the loan agreement contain specific measures 
                  by which, in the case of a default by the borrower, the 
                  lender may require the borrower to sell or otherwise 
                  assign the license.
      ``(e) General Applicability; Waiver Exception.--Loan guarantees 
  under this section shall be subject to all otherwise applicable 
  provisions of this Act, except that the Administrator may waive any 
  limitation on the amount of an individual loan guarantee or on the 
  total amount of loan guarantees to a single borrower.
      ``(f) Definitions.--As used in this section--
              ``(1) the term `qualified telecommunications borrower' 
          means a small business concern that, as determined by the 
          Administrator, has, in addition to the other requirements of 
          this Act, a level of specialized telecommunications expertise 
          (including technical knowledge, business skill, and management 
          experience) that is appropriate for the purpose for which the 
          loan or guarantee involved is made; and
              ``(2) the term `Administrator' means the Administrator, 
          acting through the Associate Administrator for 
          Telecommunications Finance.
      ``(g) Collection of Data.--The Administrator shall collect data 
  with respect to the operation of the program under this section. The 
  data so collected--
              ``(1) shall be accumulated on a calendar year basis;
              ``(2) shall be maintained in an electronic database;
              ``(3) shall include information on the ethnicity, race, and 
          sex of all applicants, whether the applications involved are 
          approved, denied, withdrawn, or otherwise disposed of; and
              ``(4) shall include other information that, as determined 
          by the Administrator, is relevant to the disposition of 
          applications.
      ``(h) Report.--Not later than December 31 of each year, the 
  Administrator shall submit to the Congress a report, with respect to 
  the preceding calendar year, of the status of the program under this 
  section. The report shall include--
              ``(1) a statistical analysis (without personal identifying 
          information) of the diversity characteristics of applicants and 
          borrowers under the program; and
              ``(2) a probability analysis with respect to the diversity 
          of applicants who receive loans under the program.''.
  
  SEC. 4. TELECOMMUNICATIONS LOAN GUARANTEE FUND.
  
      (a) In General.--Title VII of the Communications Act of 1934 is 
  amended by inserting after section 714 (42 U.S.C. 614) the following 
  new section:
  
  ``SEC. 715. TELECOMMUNICATIONS LOAN GUARANTEE FUND.
  
      ``(a) Establishment.--
              ``(1) In general.--There is hereby established the 
          Telecommunications Loan Guarantee Fund (hereafter in this 
          section referred to as the `Fund') in the Department of the 
          Treasury under the control of the Secretary of the Treasury 
          (hereafter in this section referred to as the `Secretary').
              ``(2) Initial capitalization of fund.--The first 
          $10,000,000,000 of proceeds received from the auction of 
          spectrum licenses by the Federal Communications Commission 
          after the date of the enactment of this section shall be 
          deposited in the Fund and shall constitute the capitalization 
          of the Fund.
      ``(b) Maintenance of Fund.--
              ``(1) In general.--Amounts in the Fund shall be deposited 
          by the Secretary in depositaries designated by the Secretary 
          which have also been designated by the Telecommunications 
          Finance Office of the Small Business Administration as 
          certified telecommunications lenders.
              ``(2) Interest.--Interest paid by depositaries on amounts 
          deposited in accordance with paragraph (1) shall be deposited 
          in the Fund and be available for the purposes of the Fund.
      ``(c) Purpose of Fund.--Amounts in the Fund shall be available to 
  meet any obligation of the Small Business Administration arising under 
  a loan guarantee issued by the Telecommunications Finance Office of the 
  Small Business Administration in connection with a loan under section 
  38(a)(2) or section 39(a) of the Small Business Act.''.
  
  SEC. 5. PARTICIPATION IN SPECTRUM AUCTIONS.
  
      Section 309(j)(5) of the Communications Act of 1934 (47 U.S.C. 
  309(j)(5)) is amended--
              (1) by striking ``No person'' and inserting the following:
                      ``(A) In general.--No person''; and
              (2) by adding at the end the following:
                      ``(B) Qualified telecommunications borrowers.--With 
                  respect to any person that meets the qualification 
                  requirements of this paragraph and that is a qualified 
                  telecommunications borrower under section 38 or 39 of 
                  the Small Business Act, the Commission shall accept, in 
                  lieu of any upfront payment or earnest money deposit 
                  required by Commission regulation, a letter of credit 
                  provided to such borrower under such section that 
                  equals or exceeds the amount of such required payment 
                  or deposit. In any competitive bidding conducted under 
                  this subsection in which the Commission identifies any 
                  such qualified telecommunications borrower as the high 
                  bidder at the time of declaring that the bidding has 
                  closed, the Commission shall notify the Administrator 
                  of the Small Business Administration of the identity of 
                  such bidder, the amount of the high bid, and the total 
                  amount required to be deposited with the Commission to 
                  qualify for the award of the license under Commission 
                  regulations. In the case of a qualified 
                  telecommunications borrower under section 38, the 
                  amount of such deposit may be satisfied by debiting the 
                  loan account of the borrower at the Treasury.''.
target: Amends the Small Business Act to establish within the Small Business Administration (SBA) an Associate Administrator for Telecommunications Finance (Associate Administrator) to supervise and manage SBA financing in the area of telecommunications. Authorizes the Associate Administrator to approve SBA loan guarantees with respect to Federal Communications Commission (FCC) spectrum licenses (for radio and television broadcasting) acquired in the secondary market. Establishes a Telecommunications Finance Office.
  
  Establishes the Telecommunications Spectrum Installment Loan Program to: (1) make direct loans to qualified telecommunications borrowers (borrowers) for the acquisition of spectrum licenses through FCC auction; and (2) guarantee loans to borrowers for telecommunications equipment and working capital in connection with spectrum license acquisitions.
  
  Establishes the Telecommunications Accelerated Certified Lender Program for the guarantee by certified lenders of loans made to borrowers for: (1) the acquisition of spectrum licenses through either FCC auction or the secondary market; and (2) telecommunications equipment and working capital in connection with spectrum license acquisitions. Requires certified lenders to be insured depository institutions approved by the SBA.
  
  Amends the Communications Act of 1934 to: (1) establish the Telecommunications Loan Guarantee Fund for financing loans authorized under this Act; and (2) require the FCC, with respect to FCC spectrum auctions, to accept from a borrower a letter of credit in lieu of any upfront payment or other earnest money required by FCC regulation.
feat_title: To amend the Small Business Act and the Communications Act of 1934 to increase participation by small businesses in spectrum auctions conducted by the Federal Communications Commission.