A bill to amend the Small Business Act to clarify and expand the Capitol Ownership Development Program and for other purposes.

Amends the Small Business Act to provide that a small business shall not be eligible for assistance under the Small Business Administration's (SBA) small business and capital ownership development program or the award of Government procurement contracts under the small business set-aside program unless the Associate Administrator for Minority Small Business and Capital Ownership Development determines that such small business has met not less than 15 percent nor more than 80 percent of specified criteria relating to the competitiveness of such small business. Sets forth: (1) specified criteria and responsibilities for computing the competitiveness of a small business; and (2) circumstances under which such assistance to small businesses or the award of Government procurement contracts shall be denied.

Provides that a small business shall be deemed by the SBA to be in the: (1) developmental stage of program participation (with respect to the small business and capital ownership development program) if such small business has met at least 15 percent but less than 70 percent of its criteria of competitiveness; and (2) transitional stage of program participation if such small business has met at least 70 percent of its criteria of competitiveness but has not yet graduated from such program. Defines "graduated".

Defines "development investments." Establishes within the Treasury a revolving fund that shall be available to the SBA, without fiscal year limitation, to finance the purchase of development investments from small businesses.

Authorizes the Administrator of the SBA to approve joint venture agreements between a small business and another business if such ventures will enhance such small business competitiveness and strengthen the free enterprise system. Sets forth specified conditions with respect to such competition.

Provides that a small business that has graduated from the small business and capital ownership development program shall be eligible to receive from the SBA mainstreaming and other specified types of assistance. Prohibits any such assistance to a small business that has achieved or exceeded all of its criteria of competitiveness. Limits to 14 years the period of time that a small business shall be able to receive such assistance.

Sets forth specified requirements and procedures with respect to the awarding of Government procurement contracts to small businesses.

Requires the SBA within: (1) 60 days after enactment of this Act to conduct meetings with small businesses who participate in the small business and capital ownership development program to ascertain the extent of regulations that are necessary to implement this Act; (2) 120 days after enactment of this Act to publish proposed regulations in the Federal Register; and (3) 210 days after enactment of this Act to publish the final regulations in the Federal Register.

Prohibits any SBA employee from performing any of the principal functions of a Business Development Specialist, a loan officer, or a management assistance officer as they relate to this Act unless such employee receives specialized training. Requires the first session of such specialized training to begin within 180 days after enactment of this Act.

Repeals a specified section of the Small Business Act relating to the SBA's small business and capital ownership development program.