TWO-YEAR RULE FOR ELIGIBILITY IN THE MINORITY SMALL BUSINESS AND CAPITAL OWNERSHIP DEVELOPMENT PROGRAM.

SEC. 203. TWO-YEAR RULE FOR ELIGIBILITY IN THE MINORITY SMALL BUSINESS AND CAPITAL OWNERSHIP DEVELOPMENT PROGRAM. (a) In General.— The Small Business Administration may prescribe a minimum period of time during which a prospective Program Participant must be in operation in order to meet the eligibility requirements of section 8(a)(7)(A) of the Small Business Act (15 U.S.C. 637(a)(7)(A)), only if the Administration provides a waiver of such minimum period as set forth in subsection (b). (b) Waiver of Minimum Period of Operation.— (1) The Administration shall provide that any requirement it establishes regarding the period of time a prospective Program Participant must be in operation may be waived and, a prospective Program Participant, who otherwise meets the requirements of section 8(a)(7)(A) of the104 STAT. 2819 Small Business Act, shall be considered to have demonstrated reasonable prospects for success, if— (A) the individual or individuals upon whom eligibility is to be based have substantial and demonstrated business management experience; (B) the prospective Program Participant has demonstrated technical expertise to carry out its business plan with a substantial likelihood for success; (C) the prospective Program Participant has adequate capital to carry out its business plan; (D) the prospective Program Participant has a record of successful performance on contracts from governmental and nongovernmental sources in the primary industry category in which the prospective Program Participant is seeking Program certification; and (E) the prospective Program Participant has, or can demonstrate its ability to timely obtain, the personnel, facilities, equipment, and any other requirements needed to perform such contracts. (2) The authority to make the determination that a prospective Program Participant has demonstrated its potential for success by meeting the criteria specified in paragraph (1) of this subsection shall be made by the Administrator of the Small Business Administration, or a designee of such officer.