[Senate Report 114-242]
[From the U.S. Government Publishing Office]
Calendar No. 110
114th Congress } { Report
SENATE
2d Session } { 114-242
======================================================================
SCORE FOR SMALL BUSINESS ACT OF 2015
_______
April 21, 2016.--Ordered to be printed
_______
Mr. Vitter, from the Committee on Small Business and Entrepreneurship,
submitted the following
R E P O R T
[To accompany S. 1000]
The Committee on Small Business and Entrepreneurship, to
which was referred the bill (S. 1000) to strengthen resources
for entrepreneurs by improving the SCORE program, and for other
purposes, having considered the same, reports favorably
thereon, with an amendment in the nature of a substitute, and
recommends that the bill, as amended, do pass.
I. INTRODUCTION
The SCORE for Small Business Act of 2015 (S. 1000) was
introduced by Senator Risch, with original co-sponsorship from
Senator Coons, on April 16, 2015. Senators Ayotte, Gardner,
Peters, and Udall are also cosponsors of the legislation.
The SCORE for Small Business Act of 2015 increases SCORE's
authorization level to $10.5 million in fiscal years 2016
through 2018 and strengthens the SCORE program through
directives that impact the quality, scope and cost of services
provided through the SCORE program.
During the markup of the bill, the Vitter amendment was
approved unanimously by voice vote. The Vitter amendment
establishes an offset for the increased authorization for the
SCORE program. The offset will be a limitation on the amount
the Administration can spend on entrepreneurship education
programs to $5 million, $2.5 million of which must be obligated
to the Emerging Leaders initiative. The bill, as amended, was
approved unanimously by voice vote.
II. HISTORY (PURPOSE & NEED FOR LEGISLATION)
The Service Corps of Retired Executives (SCORE) is a non-
profit association, authorized under the Small Business Act,
and a resource partner of the SBA. The SBA's SCORE program
embodies the power of public-private partnerships. SCORE, which
is made up of a network of more than 13,000 volunteers with 348
chapters across the country, is dedicated to educating and
assisting entrepreneurs and small business owners in the
formation, growth and expansion of their small businesses.
According to the SCORE Association, in FY13, SCORE estimates
that it served over 400,000 clients, and helped to create more
than 40,500 new businesses and more than 67,098 new jobs. In
FY14, SCORE started an additional 56,079 new businesses, served
an additional 107,201 clients, and created 47,187 new jobs. The
Committee heard time and again at hearings and roundtables from
volunteers serving in SCORE, and business owners who received
SCORE assistance, about SCORE and how it could provide more
economic benefits if it had adequate support.
The SCORE Program Improvement Act of 2012 (S. 3246) was
introduced on May 24, 2012 by Senator Snowe. The bill would
have reauthorized the program through FY15. Additionally, the
bill included several structural components and requirements
for the program.
The SCORE for Small Business Act of 2012 (S. 3508) would
have increased SCORE's authorization level to $13 million in
Fiscal Year 2013, $15 million in Fiscal Year 2014, and $17
million in Fiscal Year 2015. According to SCORE, the proposed
increase in funding would have allowed SCORE to complete a
large-scale transformation process that would have dramatically
increased the number of businesses started during the next five
years and implemented initiatives targeted at improving the
efficiency and effectiveness of the program.
The SCORE for Small Business Act of 2014 (S. 2008) was
introduced on February 10, 2014 to reauthorize the program for
FY2015-FY2017; modify program requirements with respect to the
role of participating volunteers, program plans and goals, and
reporting; and outline privacy requirements pertaining to the
disclosure of information of businesses assisted under such
program.
III. HEARINGS & ROUNDTABLES
In the 112th Congress:
On March 8, 2011, the Committee held a roundtable
discussion titled ``Reauthorization of SCORE: Discussion and
Recommendations for Volunteer-based Small Business
Assistance,'' chaired by Senator Landrieu, to discuss SCORE
reauthorization. Witnesses testified that the SCORE program was
effective and inexpensive to develop with proper funding. It
was noted that only three months into 2011, the SCORE program
had already exceeded its 2010 performance numbers by 20% and
was continuing to rapidly expand its aid to small businesses.
IV. DESCRIPTION OF BILL
The bill increases SCORE's authorization level to $10.5
million in each fiscal year 2016 through 2018. Additionally,
the bill directs SCORE to provide no-cost or low-cost
assistance, coaching, mentoring and other services to
entrepreneurs and small business owners on aspects of creating
or strengthening a business. The bill also requires SCORE to
develop outreach mechanisms and expanded service delivery
capacity, particularly in rural, economically disadvantaged,
and other traditionally underserved areas, to ensure diversity
amongst both the volunteers providing services and the small
businesses being served. Further, the bill includes reporting
requirements regarding the number of volunteers and the number
of small businesses served, and to the extent possible the
number of businesses created, jobs created, the value of
volunteer-services provided, and other outcomes-based metrics.
The amendment establishes an offset for the increased
authorization. The offset will be a limitation on the amount
the Administration can spend on entrepreneurship education
programs to $5 million, $2.5 million of which must be obligated
to the Emerging Leaders initiative. This amount is $2 million
less than the FY2015 enacted level, and $6 million less than
the FY2016 Administration request.
V. COMMITTEE VOTE
In compliance with rule XXVI (7)(b) of the Standing Rules
of the Senate, the following vote was recorded on April 23,
2015.
A motion to adopt the SCORE for Small Business Act of 2015,
a bill to strengthen resources for entrepreneurs by improving
the SCORE program, and for other purposes, as amended by the
Vitter amendment, was approved unanimously by voice vote with
the following Senators present: Senators Vitter, Risch,
Fischer, Gardner, Ernst, Ayotte, Enzi, Shaheen, Cantwell,
Cardin, Heitkamp, Booker, Coons, Hirono, and Peters.
VI. COST ESTIMATE
In compliance with rule XXVI (11)(a)(1) of the Standing
Rules of the Senate, the Committee estimates the cost of the
legislation will be equal to the amounts discussed in the
following letter from the Congressional Budget Office:
June 8, 2015.
Hon. David Vitter,
Chairman, Committee on Small Business and Entrepreneurship,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1000, the SCORE for
Small Business Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Keith Hall.
Enclosure.
S. 1000--SCORE for Small Business Act of 2015
Summary: S. 1000 would authorize the appropriation of $10.5
million for each of fiscal years 2016, 2017, and 2018 to carry
out the SCORE program, which supports volunteers who provide
counseling and advice to individuals who own or wish to own a
small business. Under current law, the program is known as the
Service Corps of Retired Executives; S. 1000 would change the
name to the SCORE program.
CBO estimates that implementing S. 1000 would cost $32
million over the 2016-2020 period, assuming appropriation of
the specified amounts. Pay-as-you-go procedures do not apply to
this legislation because it would not affect direct spending or
revenues.
S. 1000 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the federal government: The estimated
budgetary effect of S. 1000 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level............................................... 11 11 11 0 0 32
Estimated Outlays................................................. 6 9 11 5 1 32
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Basis of estimate: For this estimate, CBO assumes the bill
will be enacted near the end of fiscal year 2015 that the
specified amounts will be appropriated each year, and that
spending will follow historical patterns for the affected
activities.
S. 1000 would authorize the appropriation of $10.5 million
for each of fiscal years 2016, 2017, and 2018 to carry out the
SCORE program, which supports volunteers to provide advice and
counseling to individuals who own or desire to start a small
business. The bill would direct the Small Business
Administration (SBA) to ensure that each SCORE chapter develops
a plan to provide services to disadvantaged and underserved
areas and to develop new skills for SCORE volunteers. Based on
information from the SBA, CBO estimates that implementing S.
1000 would cost $32 million over the 2016-2020 period, assuming
appropriation of the specified amounts.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 1000
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal Costs: Susan Willie; Impact
on State, Local, and Tribal Governments: Melissa Merrell;
Impact on the Private Sector: Logan Smith.
Estimate approved by: Theresa Gullo, Assistant Director for
Budget Analysis.
VII. EVALUATION OF REGULATORY IMPACT
In compliance with rule XXVI(11)(b) of the Standing Rules
of the Senate, it is the opinion of the Committee that no
significant additional regulatory impact will be incurred in
carrying out the provisions of this legislation. There will be
no additional impact on the personal privacy of companies or
individuals who utilize the services provided.
VIII. SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section provides for the title, ``SCORE for Small
Business Act of 2015''.
Section 2. SCORE reauthorization
This section authorizes the Service Corps of Retired
Executives (SCORE) program at $10.5 million in each fiscal year
2016 through 2018. The SCORE program has been a major
contributor to the growth and sustainability of small
businesses around America. As a Resource Partner of the SBA,
authorized under the Small Business Act, SCORE has served over
400,000 clients, helping to create more than 38,000 new
businesses and more than 67,098 new jobs.
Section 3. SCORE program
This section amends Section 8 of the Small Business Act to
clarify and direct SCORE volunteers to provide no-cost or low-
cost assistance, coaching, mentoring and other services to
entrepreneurs and small business owners on aspects of creating
or strengthening a business. It also requires SCORE (with
oversight from the Administrator) to develop outreach
mechanisms and expanded service delivery capacity, particularly
in rural, economically disadvantaged, and other traditionally
underserved areas, to ensure diversity amongst both the
volunteers providing services and the small businesses being
served. The SCORE Association must submit an annual report to
the Administrator providing details on the success of the
program. This section also protects individuals and small
businesses' right to privacy concerning personal information
such as names, addresses, or telephone numbers. To offset the
cost of the program, this section limits the amount the
Administration can spend on entrepreneurship education programs
to $5 million, $2.5 million of which must be obligated to the
Emerging Leaders initiative. This amount is $2 million less
than the FY2015 enacted level, and $6 million less than the
FY2016 Administration request.
Section 4. Technical and conforming amendments
This section makes the appropriate amendments to law in
accordance with continuity and the changes made in the SCORE
for Small Business Act of 2015.
[all]