TERMINATION AND GRADUATION STANDARDS.

SEC. 208. TERMINATION AND GRADUATION STANDARDS. Section 7(j)(10) of the Small Business Act (15 U.S.C. 636(j)(10)), is further amended by adding at the end thereof the following new subparagraphs: “(E) A small business concern participating in the program conducted under the authority of this paragraph and eligible for the award of contracts pursuant to section 8(a) shall be denied all such assistance if such concern— “(i) voluntarily elects not to continue participation; “(ii) participates in the Program for a period in excess of the time limits prescribed by paragraph (15); “(iii) is terminated pursuant to a termination proceeding conducted in accordance with section 8(a)(9); or “(iv) is graduated pursuant to a graduation proceeding conducted in accordance with section 8(a)(9). “(F) For the purposes of sections 7(j) and 8(a), the terms ‘terminated’ or ‘termination’ shall mean the total denial “(F) For the purposes of this Act, sections 7(j) and 8(a), the terms ‘terminated’ or ‘termination’ shall mean the total denial or suspension of assistance provided pursuant to this paragraph or section 8(a) prior to the graduation of the participating small business concern pursuant to subparagraph (H) or the expiration of the maximum program participation in terms prescribed by paragraph (15). An action for termination shall be based upon good cause, including— “(i) the failure by such concern to maintain its eligibility for Program participation; “(ii) the failure of the concern to engage in business practices that will promote its competitiveness within a reasonable period of time as evidenced by, among other indicators, a pattern of unjustified delinquent performance or terminations for default with respect to contracts awarded under the authority of section 8(a); 102 STAT. 3863 “(iii) a demonstrated pattern of failing to make required submissions or responses to the Administration in a timely manner; “(iv) the willful violation of any rule or regulation of the Administration pertaining to material issues; “(v) the debarment of the concern or its disadvantaged owners by any agency pursuant to subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation); or “(vi) the conviction of the disadvantaged owner or an officer of the concern for any offense indicating a lack of business integrity including any conviction for embezzlement, theft, forgery, bribery, falsification or violation of section 16. For purposes of this clause, no termination action shall be taken with respect to a disadvantaged owner solely because of the conviction of an officer of the concern (who is other than a disadvantaged owner) unless such owner conspired with, abetted, or otherwise knowingly acquiesced in the activity or omission that was the basis of such officer’s conviction. “(G) The Director of the Division may initiate a termination proceeding by recommending such action to the Associate Administrator for Minority Small Business and Capital Ownership Development. Whenever the Associate Administrator, or a designee of such officer, determines such termination is appropriate, within 15 days after making such a determination the Program Participant shall be provided a written notice of intent to terminate, specifying the reasons for such action. No Program Participant shall be terminated from the Program pursuant to subparagraph (F) without first being afforded an opportunity for a hearing in accordance with section 8(a)(9). “(H) For the purposes of sections 7(j) and 8(a) the term ’graduated’ or ‘graduation’ means that the Program Participant is recognized as successfully completing the program by substantially achieving the targets, objectives, and goals contained in the concern’s business plan thereby demonstrating its ability to compete in the marketplace without assistance under this section or section 8(a).”.