[House Report 111-112]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-112
======================================================================
JOB CREATION THROUGH ENTREPRENEURSHIP ACT OF 2009
_______
May 15, 2009.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Velazquez, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 2352]
The Committee on Small Business, to whom was referred the
bill (H.R. 2352) to amend the Small Business Act, and for other
purposes, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
CONTENTS
Page
I. Purpose and Summary.............................................14
II. Background and Need for Legislation.............................16
III. Hearings........................................................19
IV. Committee Consideration.........................................19
V. Committee Votes.................................................19
VI. Section-by-Section Analysis of H.R. 2352........................19
VIII.Committee Estimate of Costs.....................................32
IX. Oversight Findings..............................................34
X. Statement of Constitutional Authority...........................34
XI. Compliance With Public Law 104-4................................34
XII. Congressional Accountability Act................................34
XIII.Federal Advisory Committee Statement............................34
XIV. Statement of No Earmarks........................................34
XV. Performance Goals and Objectives................................34
XVI. Changes in Existing Law Made by the Bill, as Reported...........34
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Job Creation Through
Entrepreneurship Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--ESTABLISHMENT OF VETERANS BUSINESS CENTER PROGRAM
Sec. 101. Veterans Business Center program.
Sec. 102. Reporting requirement for interagency task force.
TITLE II--EDUCATING AND NETWORKING ENTREPRENEURS THROUGH TODAY'S
TECHNOLOGY
Sec. 201. Educating entrepreneurs through technology.
TITLE III--ENHANCING NATIVE AMERICAN ENTREPRENEURSHIP
Sec. 301. Office of Native American Affairs; Tribal Business
Information Centers program.
Sec. 302. Small Business Development Center assistance to Indian tribe
members, Alaska Natives, and Native Hawaiians.
TITLE IV--BROADENING THE WOMEN'S BUSINESS CENTER PROGRAM
Sec. 401. Notification of grants; publication of grant amounts.
Sec. 402. Communications.
Sec. 403. Funding.
Sec. 404. Performance and planning.
Sec. 405. National Women's Business Council.
TITLE V--SCORE PROGRAM IMPROVEMENTS
Sec. 501. Expansion of volunteer representation and benchmark reports.
Sec. 502. Mentoring and networking.
Sec. 503. Name of program changed to SCORE.
Sec. 504. Authorization of appropriations.
TITLE VI--EXPANDING ENTREPRENEURSHIP
Sec. 601. Expanding entrepreneurship.
TITLE VII--MODERNIZING THE SMALL BUSINESS DEVELOPMENT CENTER PROGRAM
Sec. 701. Small business development centers operational changes.
Sec. 702. Access to credit and capital.
Sec. 703. Procurement training and assistance.
Sec. 704. Green entrepreneurs training program.
Sec. 705. Main street stabilization.
Sec. 706. Prohibition on program income being used as matching funds.
Sec. 707. Authorization of appropriations.
TITLE I--ESTABLISHMENT OF VETERANS BUSINESS CENTER PROGRAM
SEC. 101. VETERANS BUSINESS CENTER PROGRAM.
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended--
(1) in subsection (f), by inserting ``(other than subsections
(g), (h), and (i))'' after ``this section''; and
(2) by adding at the end the following:
``(g) Veterans Business Center Program.--
``(1) In general.--The Administrator shall establish a
Veterans Business Center program within the Administration to
provide entrepreneurial training and counseling to veterans in
accordance with this subsection.
``(2) Director.--The Administrator shall appoint a Director
of the Veterans Business Center program, who shall implement
and oversee such program and who shall report directly to the
Associate Administrator for Veterans Business Development.
``(3) Designation of veterans business centers.--The Director
shall establish by regulation an application, review, and
notification process to designate entities as veterans business
centers for purposes of this section. The Director shall make
publicly known the designation of an entity as a veterans
business center and the award of a grant to such center under
this subsection.
``(4) Funding for veterans business centers.--
``(A) Initial grants.--The Director is authorized to
make a grant (hereinafter in this subsection referred
to as an `initial grant') to each veterans business
center each year for not more than 5 years in the
amount of $150,000.
``(B) Growth funding grants.--After a veterans
business center has received 5 years of initial grants
under subparagraph (A), the Director is authorized to
make a grant (hereinafter in this subsection referred
to as a `growth funding grant') to such center each
year for not more than 3 years in the amount of
$100,000. After such center has received 3 years of
growth funding grants, the Director shall require such
center to meet performance benchmarks established by
the Director to be eligible for growth funding grants
in subsequent years.
``(5) Center responsibilities.--Each veterans business center
receiving a grant under this subsection shall use the funds
primarily on veteran entrepreneurial development, counseling of
veteran-owned small businesses through one-on-one instruction
and classes, and providing government procurement assistance to
veterans.
``(6) Matching funds.--Each veterans business center
receiving a grant under this subsection shall be required to
provide a non-Federal match of 50 percent of the Federal funds
such center receives under this subsection. The Director may
issue to a veterans business center, upon request, a waiver
from all or a portion of such matching requirement upon a
determination of hardship.
``(7) Targeted areas.--The Director shall give priority to
applications for designations and grants under this subsection
that will establish a veterans business center in a geographic
area, as determined by the Director, that is not currently
served by a veterans business center and in which--
``(A) the population of veterans exceeds the national
median of such measure; or
``(B) the population of veterans of Operation Iraqi
Freedom or Operation Enduring Freedom exceeds the
national median of such measure.
``(8) Training program.--The Director shall develop and
implement, directly or by contract, an annual training program
for the staff and personnel of designated veterans business
centers to provide education, support, and information on best
practices with respect to the establishment and operation of
such centers. The Director shall develop such training program
in consultation with veterans business centers, the interagency
task force established under subsection (c), and veterans
service organizations.
``(9) Inclusion of other organizations in program.--Upon the
date of the enactment of this subsection, each Veterans
Business Outreach Center established by the Administrator under
the authority of section 8(b)(17) and each center that received
funds during fiscal year 2006 from the National Veterans
Business Development Corporation established under section 33
and that remains in operation shall be treated as designated as
a veterans business center for purposes of this subsection and
shall be eligible for grants under this subsection.
``(10) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $10,000,000 for
fiscal year 2010 and $12,000,000 for fiscal year 2011.
``(h) Additional Grants Available to Veterans Business Centers.--
``(1) Access to capital grant program.--
``(A) In general.--The Director of the Veterans
Business Center program shall establish a grant program
under which the Director is authorized to make, to
veterans business centers designated under subsection
(g), grants for the following:
``(i) Developing specialized programs to
assist veteran-owned small businesses to secure
capital and repair damaged credit.
``(ii) Providing informational seminars on
securing loans to veteran-owned small
businesses.
``(iii) Providing one-on-one counseling to
veteran-owned small businesses to improve the
financial presentations of such businesses to
lenders.
``(iv) Facilitating the access of veteran-
owned small businesses to both traditional and
non-traditional financing sources.
``(B) Award size.--The Director may not award a
veterans business center more than $75,000 in grants
under this paragraph.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $1,500,000 for each of fiscal years 2010 and
2011.
``(2) Procurement assistance grant program.--
``(A) In general.--The Director shall establish a
grant program under which the Director is authorized to
make, to veterans business centers designated under
subsection (g), grants for the following:
``(i) Assisting veteran-owned small
businesses to identify contracts that are
suitable to such businesses.
``(ii) Preparing veteran-owned small
businesses to be ready as subcontractors and
prime contractors for contracts made available
through the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5) through training
and business advisement, particularly with
respect to the construction trades.
``(iii) Providing veteran-owned small
businesses technical assistance with respect to
the Federal procurement process, including
assisting such businesses to comply with
Federal regulations and bonding requirements.
``(B) Award size.--The Director may not award a
veterans business center more than $75,000 in grants
under this paragraph.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $1,500,000 for each of fiscal years 2010 and
2011.
``(3) Service-disabled veteran-owned small business grant
program.--
``(A) In general.--The Director shall establish a
grant program under which the Director is authorized to
make, to veterans business centers designated under
subsection (g), grants for the following:
``(i) Developing outreach programs for
service-disabled veterans with respect to the
benefits of self-employment.
``(ii) Providing tailored training to
service-disabled veterans with respect to
business plan development, marketing,
budgeting, accounting, and merchandising.
``(iii) Assisting service-disabled veteran-
owned small businesses to locate and secure
business opportunities.
``(B) Award size.--The Director may not award a
veterans business center more than $75,000 in grants
under this paragraph.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $1,500,000 for each of fiscal years 2010 and
2011.
``(i) Veterans Entrepreneurial Development Summit.--
``(1) In general.--The Director of the Veterans Business
Center program is authorized to carry out an event, once every
two years, for the purpose of providing networking
opportunities, outreach, education, training, and support to
veterans business centers funded under this section, veteran-
owned small businesses, veterans service organizations, and
other entities as determined appropriate for inclusion by the
Director.
``(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $450,000 for
fiscal years 2010 and 2011.
``(j) Inclusion of Surviving Spouses.--For purposes of subsections
(g), (h), and (i) the following apply:
``(1) The term `veteran' includes a surviving spouse of the
following:
``(A) A member of the Armed Forces, including a
reserve component thereof.
``(B) A veteran.
``(2) The term `veteran-owned small business' includes a
small business owned by a surviving spouse of the following:
``(A) A member of the Armed Forces, including a
reserve component thereof.
``(B) A veteran.
``(k) Inclusion of Reserve Components.--For purposes of subsections
(g), (h), and (i) the following apply:
``(1) The term `veteran' includes a member of the reserve
components of the armed forces as specified in section 10101 of
title 10, United States Code.
``(2) The term `veteran-owned small business' includes a
small business owned by a member of the reserve components of
the armed forces as specified in section 10101 of title 10,
United States Code.''.
SEC. 102. REPORTING REQUIREMENT FOR INTERAGENCY TASK FORCE.
Section 32(c) of the Small Business Act (15 U.S.C. 657b(c)) is
amended by adding at the end the following:
``(4) Report.--The Administrator shall submit to Congress
biannually a report on the appointments made to and activities
of the task force.''.
TITLE II--EDUCATING AND NETWORKING ENTREPRENEURS THROUGH TODAY'S
TECHNOLOGY
SEC. 201. EDUCATING ENTREPRENEURS THROUGH TECHNOLOGY.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
redesignating section 44 as section 46 and by inserting the following
new section after section 43:
``SEC. 44. EDUCATING AND NETWORKING ENTREPRENEURS THROUGH TECHNOLOGY.
``(a) Purpose.--The purpose of this section is to provide high-
quality distance learning and opportunities for the exchange of peer-
to-peer technical assistance through online networking to potential and
existing entrepreneurs through the use of technology.
``(b) Definition.--As used in this section, the term `qualified
third-party vendor' means an entity with experience in distance
learning content or communications technology, or both, with the
ability to utilize on-line, satellite, video-on-demand, and connected
community-based organizations to distribute and conduct distance
learning and establish an online network for use by potential and
existing entrepreneurs to facilitate the exchange of peer-to-peer
technical assistance related to entrepreneurship, credit management,
financial literacy, and Federal small business development programs.
``(c) Authority.--The Administrator shall contract with qualified
third-party vendors for entrepreneurial training content, the
development of communications technology that can distribute content
under this section throughout the United States, and the establishment
of a nationwide, online network for the exchange of peer-to-peer
technical assistance. The Administrator shall contract with at least 2
qualified third-party vendors to develop content.
``(d) Content.--The Administrator shall ensure that the content
referred to in subsection (c) is timely and relevant to entrepreneurial
development and can be successfully communicated remotely to an
audience through the use of technology. The Administrator shall, to the
maximum extent practicable, promote content that makes use of
technologies that allow for remote interaction by the content provider
with an audience. The Administrator shall ensure that the content is
catalogued and accessible to small businesses on-line or through other
remote technologies.
``(e) Communications Technology.--The Administrator shall ensure that
the communications technology referred to in subsection (c) is able to
distribute content throughout all 50 States and the territories of the
United States to small business concerns, home-based businesses, Small
Business Development Centers, Women's Business Centers, Veterans
Business Centers, and the Small Business Administration and network
entrepreneurs throughout all 50 States and the territories of the
United States to allow for peer-to-peer learning through the creation
of a location online that allows entrepreneurs and small business
owners the opportunity to exchange technical assistance through the
sharing of information. To the extent possible, the qualified third-
party vendor should deliver the content and facilitate the networking
using broadband technology.
``(f) Reports to Congress.--The Administrator shall submit a report
to Congress 6 months after the date of the enactment of this section
containing an analysis of the Small Business Administration's progress
in implementing this section. The Administrator shall submit a report
to Congress one year after the date of the enactment of this section
and annually thereafter containing the number of presentations made
under this section, the number of small businesses served under this
section, the extent to which this section resulted in the establishment
of new businesses, and feedback on the usefulness of this medium in
presenting entrepreneurial education and facilitating the exchange of
peer-to-peer technical assistance throughout the United States.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $2,000,000 for each of the
fiscal years 2010 and 2011.''.
TITLE III--ENHANCING NATIVE AMERICAN ENTREPRENEURSHIP
SEC. 301. OFFICE OF NATIVE AMERICAN AFFAIRS; TRIBAL BUSINESS
INFORMATION CENTERS PROGRAM.
(a) Associate Administrator.--Section 4(b)(1) of the Small Business
Act (15 U.S.C. 633(b)(1)) is amended--
(1) by striking ``five Associate Administrators'' and
inserting ``six Associate Administrators''; and
(2) by inserting after ``vested in the Administration.'' the
following: ``One such Associate Administrator shall be the
Associate Administrator for Native American Affairs, who shall
administer the Office of Native American Affairs established
under section 45.''.
(b) Establishment.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting after section 44, as added by section 201 of this
Act, the following:
``SEC. 45. OFFICE OF NATIVE AMERICAN AFFAIRS AND TRIBAL BUSINESS
INFORMATION CENTERS PROGRAM.
``(a) Office of Native American Affairs.--
``(1) Establishment.--There is established in the
Administration an Office of Native American Affairs
(hereinafter referred to in this subsection as the `Office').
``(2) Associate administrator.--The Office shall be
administered by an Associate Administrator appointed under
section 4(b)(1).
``(3) Responsibilities.--The Office shall have the following
responsibilities:
``(A) Developing and implementing tools and
strategies to increase Native American
entrepreneurship.
``(B) Expanding the access of Native American
entrepreneurs to business training, capital, and
Federal small business contracts.
``(C) Expanding outreach to Native American
communities and aggressively marketing entrepreneurial
development services to such communities.
``(D) Representing the Administration with respect to
Native American economic development matters.
``(4) Coordination and oversight function.--The Office shall
provide oversight with respect to and assist the implementation
of all Administration initiatives relating to Native American
entrepreneurial development.
``(5) Authorization of appropriations.--To carry out this
subsection, there is authorized to be appropriated to the
Administrator $2,000,000 for each of fiscal years 2010 and
2011.
``(b) Tribal Business Information Centers Program.--
``(1) Establishment.--The Administrator is authorized to
operate, alone or in coordination with other Federal
departments and agencies, a Tribal Business Information Centers
program that provides Native American populations with business
training and entrepreneurial development assistance.
``(2) Designation of centers.--The Administrator shall
designate entities as centers under the Tribal Business
Information Centers program.
``(3) Administration support.--The Administrator may
contribute agency personnel and resources to the centers
designated under paragraph (2) to carry out this subsection.
``(4) Grant program.--The Administrator is authorized to make
grants of not more than $300,000 to centers designated under
paragraph (2) for the purpose of providing Native Americans the
following:
``(A) Business workshops.
``(B) Individualized business counseling.
``(C) Entrepreneurial development training.
``(D) Access to computer technology and other
resources to start or expand a business.
``(5) Regulations.--The Administrator shall by regulation
establish a process for designating centers under paragraph (2)
and making the grants authorized under paragraph (4).
``(6) Definition of administrator.--In this subsection, the
term `Administrator' means the Administrator, acting through
the Associate Administrator administering the Office of Native
American Affairs.
``(7) Authorization of appropriations.--To carry out this
subsection, there is authorized to be appropriated to the
Administrator $15,000,000 for fiscal year 2010 and $17,000,000
for fiscal year 2011.
``(c) Definition of Native American.--The term `Native American'
means an Indian tribe member, Alaska Native, or Native Hawaiian as such
are defined in section 21(a)(8) of this Act.''.
SEC. 302. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO INDIAN TRIBE
MEMBERS, ALASKA NATIVES, AND NATIVE HAWAIIANS.
(a) In General.--Section 21(a) of the Small Business Act (15 U.S.C.
648(a)) is amended by adding at the end the following:
``(8) Additional grant to assist indian tribe members, alaska
natives, and native hawaiians.--
``(A) In general.--Any applicant in an eligible State
that is funded by the Administration as a Small
Business Development Center may apply for an additional
grant to be used solely to provide services described
in subsection (c)(3) to assist with outreach,
development, and enhancement on Indian lands of small
business startups and expansions owned by Indian tribe
members, Alaska Natives, and Native Hawaiians.
``(B) Eligible states.--For purposes of subparagraph
(A), an eligible State is a State that has a combined
population of Indian tribe members, Alaska Natives, and
Native Hawaiians that comprises at least 1 percent of
the State's total population, as shown by the latest
available census.
``(C) Grant applications.--An applicant for a grant
under subparagraph (A) shall submit to the
Administration an application that is in such form as
the Administration may require. The application shall
include information regarding the applicant's goals and
objectives for the services to be provided using the
grant, including--
``(i) the capability of the applicant to
provide training and services to a
representative number of Indian tribe members,
Alaska Natives, and Native Hawaiians;
``(ii) the location of the Small Business
Development Center site proposed by the
applicant;
``(iii) the required amount of grant funding
needed by the applicant to implement the
program; and
``(iv) the extent to which the applicant has
consulted with local tribal councils.
``(D) Applicability of grant requirements.--An
applicant for a grant under subparagraph (A) shall
comply with all of the requirements of this section,
except that the matching funds requirements under
paragraph (4)(A) shall not apply.
``(E) Maximum amount of grants.--No applicant may
receive more than $300,000 in grants under this
paragraph for any fiscal year.
``(F) Regulations.--After providing notice and an
opportunity for comment and after consulting with the
Association recognized by the Administration pursuant
to paragraph (3)(A) (but not later than 180 days after
the date of enactment of this paragraph), the
Administration shall issue final regulations to carry
out this paragraph, including regulations that
establish--
``(i) standards relating to educational,
technical, and support services to be provided
by Small Business Development Centers receiving
assistance under this paragraph; and
``(ii) standards relating to any work plan
that the Administration may require a Small
Business Development Center receiving
assistance under this paragraph to develop.
``(G) Advice of local tribal organizations.--A Small
Business Development Center receiving a grant under
this paragraph shall request the advice of a tribal
organization on how best to provide assistance to
Indian tribe members, Alaska Natives, and Native
Hawaiians and where to locate satellite centers to
provide such assistance.
``(H) Definitions.--In this paragraph, the following
definitions apply:
``(i) Indian lands.--The term `Indian lands'
has the meaning given the term `Indian country'
in section 1151 of title 18, United States
Code, the meaning given the term `Indian
reservation' in section 151.2 of title 25, Code
of Federal Regulations (as in effect on the
date of enactment of this paragraph), and the
meaning given the term `reservation' in section
4 of the Indian Child Welfare Act of 1978 (25
U.S.C. 1903).
``(ii) Indian tribe.--The term `Indian tribe'
means any band, nation, or organized group or
community of Indians located in the contiguous
United States, and the Metlakatla Indian
Community, whose members are recognized as
eligible for the services provided to Indians
by the Secretary of the Interior because of
their status as Indians.
``(iii) Indian tribe member.--The term
`Indian tribe member' means a member of an
Indian tribe (other than an Alaska Native).
``(iv) Alaska native.--The term `Alaska
Native' has the meaning given the term `Native'
in section 3(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(b)).
``(v) Native hawaiian.--The term `Native
Hawaiian' means any individual who is--
``(I) a citizen of the United States;
and
``(II) a descendant of the aboriginal
people, who prior to 1778, occupied and
exercised sovereignty in the area that
now constitutes the State of Hawaii.
``(vi) Tribal organization.--The term `tribal
organization' has the meaning given that term
in section 4(l) of the Indian Self-
Determination and Education Assistance Act (25
U.S.C. 450b(l)).
``(I) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $7,000,000 for each of fiscal years 2010 and
2011.
``(J) Funding limitations.--
``(i) Nonapplicability of certain
limitations.--Funding under this paragraph
shall be in addition to the dollar program
limitations specified in paragraph (4).
``(ii) Limitation on use of funds.--The
Administration may carry out this paragraph
only with amounts appropriated in advance
specifically to carry out this paragraph.''.
TITLE IV--BROADENING THE WOMEN'S BUSINESS CENTER PROGRAM
SEC. 401. NOTIFICATION OF GRANTS; PUBLICATION OF GRANT AMOUNTS.
Section 29 of the Small Business Act (15 U.S.C. 656) is amended by
adding at the end the following new subsection:
``(o) Notification of Grants; Publication of Grant Amounts.--The
Administrator shall disburse funds to a women's business center not
later than one month after the center's application is approved under
this section. At the end of each fiscal year the Administrator (acting
through the Office of Women's Business ownership) shall publish on the
Administration's website a report setting forth the total amount of the
grants made under this Act to each women's business center in the
fiscal year for which the report is issued, the total amount of such
grants made in each prior fiscal year to each such center, and the
total amount of private matching funds provided by each such center
over the lifetime of the center.''.
SEC. 402. COMMUNICATIONS.
Section 29 of the Small Business Act (15 U.S.C. 656), as amended, is
further amended by adding at the end the following new subsection:
``(p) Communications.--The Administrator shall establish, by rule, a
standardized process to communicate with women's business centers
regarding program administration matters, including reimbursement,
regulatory matters, and programmatic changes. The Administrator shall
notify each women's business center of the opportunity for notice and
comment on the proposed rule.''.
SEC. 403. FUNDING.
(a) Formula.--Section 29(b) of the Small Business Act (15 U.S.C.
656(b)) is amended to read as follows:
``(b) Authority.--
``(1) In general.--The Administrator may provide financial
assistance to private nonprofit organizations to conduct
projects for the benefit of small business concerns owned and
controlled by women. The projects shall provide--
``(A) financial assistance, including training and
counseling in how to apply for and secure business
credit and investment capital, preparing and presenting
financial statements, and managing cash flow and other
financial operations of a business concern;
``(B) management assistance, including training and
counseling in how to plan, organize, staff, direct, and
control each major activity and function of a small
business concern; and
``(C) marketing assistance, including training and
counseling in identifying and segmenting domestic and
international market opportunities, preparing and
executing marketing plans, developing pricing
strategies, locating contract opportunities,
negotiating contracts, and utilizing varying public
relations and advertising techniques.
``(2) Tiers.--The Administrator shall provide assistance
under paragraph (1) in 3 tiers of assistance as follows:
``(A) The first tier shall be to conduct a 5-year
project in a situation where a project has not
previously been conducted. Such a project shall be in a
total amount of not more than $150,000 per year.
``(B) The second tier shall be to conduct a 3-year
project in a situation where a first-tier project is
being completed. Such a project shall be in a total
amount of not more than $100,000 per year.
``(C) The third tier shall be to conduct a 3-year
project in a situation where a second-tier project is
being completed. Such a project shall be in a total
amount of not more than $100,000 per year. Third-tier
grants shall be renewable subject to established
eligibility criteria as well as criteria in subsection
(b)(4).
``(3) Allocation of funds.--Of the amounts made available for
assistance under this subsection, the Administrator shall
allocate--
``(A) at least 40 percent for first-tier projects
under paragraph (2)(A);
``(B) 20 percent for second-tier projects under
paragraph (2)(B); and
``(C) the remainder for third-tier projects under
paragraph (2)(C).
``(4) Benchmarks for third-tier projects.--In awarding
third-tier projects under paragraph (2)(C), the Administrator
shall use benchmarks based on socio-economic factors in the
community and on the performance of the applicant. The
benchmarks shall include--
``(A) the total number of women served by the
project;
``(B) the proportion of low income women and socio-
economic distribution of clients served by the project;
``(C) the proportion of individuals in the community
that are socially or economically disadvantaged (based
on median income);
``(D) the future fund-raising and service
coordination plans;
``(E) the diversity of services provided; and
``(F) geographic distribution within and across the
10 regions of the Small Business Administration.''.
(b) Matching.--Subparagraphs (A) and (B) of section 29(c)(1) of the
Small Business Act (15 U.S.C. 656(c)(1)) are amended to read as
follows:
``(A) For the first and second years of the project,
1 non-Federal dollar for each 2 Federal dollars.
``(B) Each year after the second year of the
project--
``(i) 1 non-Federal dollar for each Federal
dollar; or
``(ii) if the center is in a community at
least 50 percent of the population of which is
below the median income for the State or United
States territory in which the center is
located, 1 non-Federal dollar for each 2
Federal dollars.''.
(c) Authorization.--Section 20 of the Small Business Act (15 U.S.C.
631 note) is amended by inserting the following new subsection after
subsection (e):
``(f) Women's Business Centers.--There is authorized to be
appropriated for purposes of grants under section 29 to women's
business centers not more than $20,000,000 in fiscal year 2010 and not
more than $22,000,000 in fiscal year 2011.''.
SEC. 404. PERFORMANCE AND PLANNING.
(a) In General.--Section 29(h)(1) of the Small Business Act (15
U.S.C. 656(h)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph (D);
and
(3) by inserting the following new subparagraphs after
subparagraph (A):
``(B) establish performance measures, taking into
account the demographic differences of populations
served by women's business centers, which measures
shall include--
``(i) outcome-based measures of the amount of
job creation or economic activity generated in
the local community as a result of efforts made
and services provided by each women's business
center, and
``(ii) service-based measures of the amount
of services provided to individuals and small
business concerns served by each women's
business center;
``(C) require each women's business center to submit
an annual plan for the next year that includes the
center's funding sources and amounts, strategies for
increasing outreach to women-owned businesses,
strategies for increasing job growth in the community,
and other content as determined by the Administrator;
and''.
(b) Conforming Amendment.--Section 29(h)(1) of the Small Business Act
(15 U.S.C. 656(h)(1)), as amended, is further amended by adding the
following at the end thereof:
``The Administrator's evaluation of each women's business
center as required by this subsection shall be in part based on
the performance measures under subparagraphs (B) and (C). These
measures and the Administrator's evaluations thereof shall be
made publicly available.''.
SEC. 405. NATIONAL WOMEN'S BUSINESS COUNCIL.
The Women's Business Ownership Act of 1988 is amended as follows:
(1) In section 409(a) (15 U.S.C. 7109(a)), by adding the
following at the end thereof: ``Such studies shall include a
study on the impact of the 2008-2009 financial markets crisis
on women-owned businesses, and a study of the use of the Small
Business Administration's programs by women-owned
businesses.''.
(2) In section 410(a) (15 U.S.C. 7110(a)), by striking ``2001
through 2003'' and insert ``2010 and 2011''.
TITLE V--SCORE PROGRAM IMPROVEMENTS
SEC. 501. EXPANSION OF VOLUNTEER REPRESENTATION AND BENCHMARK REPORTS.
(a) Expansion of Volunteer Representation.--Section 8(b)(1)(B) of the
Small Business Act (15 U.S.C. 637(b)(1)(B)) is amended--
(1) by inserting ``(i)'' after ``(B)''; and
(2) by adding at the end the following:
``(ii) The Administrator shall ensure that SCORE, established
under this subparagraph, carries out a plan to increase the
proportion of mentors who are from socially or economically
disadvantaged backgrounds and, on an annual basis, reports to
the Administrator on the implementation of this
subparagraph.''.
(b) Benchmark Reports.--Section 8(b)(1)(B) of the Small Business Act
(15 U.S.C. 637(b)(1)(B)), as amended, is further amended by adding at
the end the following:
``(iii) The Administrator shall ensure that SCORE,
established under this subparagraph, establishes benchmarks for
use in evaluating the performance of its activities and the
performance of its volunteers. The benchmarks shall include
benchmarks relating to the demographic characteristics and the
geographic characteristics of persons assisted by SCORE,
benchmarks relating to the hours spent mentoring by volunteers,
and benchmarks relating to the performance of the persons
assisted by SCORE. SCORE shall report, on an annual basis, to
the Administrator the extent to which the benchmarks
established under this clause are being attained.''.
SEC. 502. MENTORING AND NETWORKING.
Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.
637(b)(1)(B)), as amended, is further amended by adding at the end the
following:
``(iv) The Administrator shall ensure that SCORE, established
under this subparagraph, establishes a mentoring program for
small business concerns that provides one-on-one advice to
small business concerns from qualified counselors. For purposes
of this clause, qualified counselors are counselors with at
least 10 years experience in the industry sector or area of
responsibility of the small business concern seeking advice.
``(v) The Administrator shall carry out a networking program
through SCORE, established under this subparagraph, that
provides small business concerns with the opportunity to make
business contacts in their industry or geographic region.''.
SEC. 503. NAME OF PROGRAM CHANGED TO SCORE.
(a) Name Change.--The Small Business Act is amended as follows:
(1) In section 8(b)(1)(B) (15 U.S.C. 637(b)(1)(B)), by
striking ``Executives (SCORE)'' and inserting ``Executives (in
this Act referred to as `SCORE')''.
(2) In section 7(m)(3)(A)(i)(VIII) (15 U.S.C.
636(m)(3)(A)(i)(VIII)), by striking ``the Service Corps of
Retired Executives'' and inserting ``SCORE''.
(3) In section 20 (15 U.S.C. 631 note)--
(A) in subsection (d)(1)(E), by striking ``the
Service Corps of Retired Executives program'' and
inserting ``SCORE''; and
(B) in subsection (e)(1)(E), by striking ``the
Service Corps of Retired Executives program'' and
inserting ``SCORE''.
(4) In section 33(b)(2) (15 U.S.C. 657c(b)(2)), by striking
``Service Corps of Retired Executives'' and inserting
``SCORE''.
(b) Elimination of ACE.--Section 8(b)(1)(B) of the Small Business Act
(15 U.S.C. 637(b)(1)(B)), as amended, is further amended by striking
``and an Active Corps of Executive (ACE)''.
SEC. 504. AUTHORIZATION OF APPROPRIATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note), as amended
by section 403(c) of this Act, is further amended by inserting the
following new subsection after subsection (f):
``(g) Authorization of Appropriations for SCORE.--There is authorized
to be appropriated $7,000,000 for SCORE under section 8(b)(1) for each
of the fiscal years 2010 and 2011.''.
TITLE VI--EXPANDING ENTREPRENEURSHIP
SEC. 601. EXPANDING ENTREPRENEURSHIP.
Section 4 of the Small Business Act (15 U.S.C. 633) is amended by
adding at the end the following:
``(g) Management and Direction.--
``(1) Plan for entrepreneurial development and job creation
strategy.--The Administrator shall develop and submit to
Congress a plan, in consultation with a representative from
each of the agency's entrepreneurial development programs, for
using the Small Business Administration's entrepreneurial
development programs as a catalyst for job creation for fiscal
years 2009 and 2010. The plan shall include the
Administration's plan for drawing on existing programs,
including Small Business Development Centers, Women's Business
Centers, SCORE, Veterans Business Centers, Native American
Outreach, and other appropriate programs. The Administrator
shall identify a strategy for each Administration region to
create or retain jobs through Administration programs. The
Administrator shall identify, in consultation with appropriate
personnel from entrepreneurial development programs,
performance measures and criteria, including job creation, job
retention, and job retraining goals, to evaluate the success of
the Administration's actions regarding these efforts.
``(2) Data collection process.--The Administrator shall,
after notice and opportunity for comment, promulgate a rule to
develop and implement a consistent data collection process to
cover all entrepreneurial development programs. Such data
collection process shall include data relating to job creation,
performance, and any other data determined appropriate by the
Administrator with respect to the Administration's
entrepreneurial development programs.
``(3) Coordination and alignment of sba entrepreneurial
development programs.--The Administrator shall submit annually
to Congress, in consultation with other Federal departments and
agencies as appropriate, a report on opportunities to foster
coordination, limit duplication, and improve program delivery
for Federal entrepreneurial development programs.
``(4) Database of entrepreneurial development service
providers.--The Administrator shall, after a period of 60 days
for public comment, establish a database of providers of
entrepreneurial development services and, make such database
available through the Administration's Web site. The database
shall be searchable by industry, geography, and service
required.
``(5) Community specialist.--The Administrator shall
designate not less than one staff member in each Administration
district office as a community specialist who has as their
full-time responsibility working with local entrepreneurial
development service providers to increase coordination with
Federal resources. The Administrator shall develop benchmarks
for measuring the performance of community specialists under
this subsection.
``(6) Entrepreneurial development portal.--The Administrator
shall publish a design for a Web-based portal to provide
comprehensive information on the Administration's
entrepreneurial development programs. After a period of 60 days
for public comment, the Administrator shall establish such
portal and--
``(A) integrate under one Web portal, Small Business
Development Centers, Women's Business Centers, SCORE,
Veterans Business Centers, the Administration's
distance learning program, and other programs as
appropriate;
``(B) revise the Administration's primary Web site so
that the Web portal described in subparagraph (A) is
available as a link on the main Web page of the Web
site;
``(C) increase consumer-oriented content on the
Administration's Web site and focus on promoting access
to business solutions, including marketing, financing,
and human resources planning;
``(D) establish relevant Web content aggregated by
industry segment, stage of business development, level
of need, and include referral links to appropriate
Administration services, including financing, training
and counseling, and procurement assistance; and
``(E) provide style guidelines and links for visitors
to the Administration's Web site to be able to comment
on and evaluate the materials in terms of their
usefulness.
``(7) Pilot programs.--The Administrator may not conduct any
pilot program for a period of greater than 3 years if the
program conflicts with, or uses the resources of, any of the
entrepreneurial development programs authorized under section
8(b)(1)(B), 21, 29, 32, or any other provision of this Act.''.
TITLE VII--MODERNIZING THE SMALL BUSINESS DEVELOPMENT CENTER PROGRAM
SEC. 701. SMALL BUSINESS DEVELOPMENT CENTERS OPERATIONAL CHANGES.
(a) Accreditation Requirement.--Section 21(a)(1) of the Small
Business Act (15 U.S.C. 648(a)(1)) is amended as follows:
(1) In the proviso, by inserting before ``institution'' the
following: ``accredited''.
(2) In the sentence beginning ``The Administration shall'',
by inserting before ``institutions'' the following:
``accredited''.
(3) By adding at the end the following new sentence: ``In
this paragraph, the term `accredited institution of higher
education' means an institution that is accredited as described
in section 101(a)(5) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)(5)).''.
(b) Program Negotiations.--Section 21(a)(3) of the Small Business Act
(15 U.S.C. 648(a)(3)) is amended in the matter preceding subparagraph
(A), by inserting before ``agreed'' the following: ``mutually''.
(c) Contract Negotiations.--Section 21(a)(3)(A) of the Small Business
Act (15 U.S.C. 648(a)(3)(A)) is amended by inserting after ``uniform
negotiated'' the following: ``mutually agreed to''.
(d) SBDC Hiring.--Section 21(c)(2)(A) of the Small Business Act (15
U.S.C. 648(c)(2)(A)) is amended by inserting after ``full-time staff''
the following: ``, the hiring of which shall be at the sole discretion
of the center without the need for input or approval from any officer
or employee of the Administration''.
(e) Content of Consultations.--Section 21(a)(7)(A) of the Small
Business Act (15 U.S.C. 648(a)(7)(A)) is amended in the matter
preceding clause (i) by inserting after ``under this section'' the
following: ``, or the content of any consultation with such an
individual or small business concern,''.
(f) Amounts for Administrative Expenses.--Section 21(a)(4)(C)(v)(I)
of the Small Business Act (15 U.S.C. 648(a)(4)(C)(v)(I)) is amended to
read as follows:
``(I) In general.--Of the amounts made
available in any fiscal year to carry out this
section, not more than $500,000 may be used by
the Administration to pay expenses enumerated
in subparagraphs (B) through (D) of section
20(a)(1).''.
(g) Non-Matching Portability Grants.--Section 21(a)(4)(C)(viii) of
the Small Business Act (15 U.S.C. 648(a)(4)(C)(viii)) is amended by
adding at the end the following: ``In the event of a disaster, the
dollar limitation in the preceding sentence shall not apply.''.
(h) Distribution to SBDCs.--Section 21(b) of the Small Business Act
(15 U.S.C. 648(b)) is amended by adding at the end the following new
paragraph:
``(4) Limitation on Distribution to Small Business Development
Centers.--
``(A) In general.--Except as otherwise provided in this
paragraph, the Administration shall not distribute funds to a
Small Business Development Center if the State in which the
Small Business Development Center is located is served by more
than one Small Business Development Center.
``(B) Unavailability exception.--The Administration may
distribute funds to a maximum of 2 Small Business Development
Centers in any State if no applicant has applied to serve the
entire State.
``(C) Grandfather clause.--The limitations in this paragraph
shall not apply to any State in which more than one Small
Business Development Center received funding prior to January
1, 2007.
``(D) Definition.--For the purposes of this paragraph, the
term `Small Business Development Center' means the entity
selected by the Administration to receive funds pursuant to the
funding formula set forth in subsection (a)(4), without regard
to the number of sites for service delivery such entity
establishes or funds.''.
(i) Women's Business Centers.--Section 21(a)(1) of the Small Business
Act (15 U.S.C. 648(a)(1)), as amended, is further amended--
(1) by striking ``and women's business centers operating
pursuant to section 29''; and
(2) by striking ``or a women's business center operating
pursuant to section 29''.
SEC. 702. ACCESS TO CREDIT AND CAPITAL.
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by
adding at the end the following new subsection:
``(o) Access to Credit and Capital Program.--
``(1) In general.--The Administration shall establish a grant
program for small business development centers in accordance
with this subsection. To be eligible for the program, a small
business development center must be in good standing and comply
with the other requirements of this section. Funds made
available through the program shall be used to--
``(A) develop specialized programs to assist local
small business concerns in securing capital and
repairing damaged credit;
``(B) provide informational seminars on securing
credit and loans;
``(C) provide one-on-one counseling with potential
borrowers to improve financial presentations to
lenders; and
``(D) facilitate borrowers' access to non-traditional
financing sources, as well as traditional lending
sources.
``(2) Award size limit.--The Administration may not award an
entity more than $300,000 in grant funds under this subsection.
``(3) Authority.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to carry
out the program established in subsection (a)(1), the
Administration may make grants or enter into cooperative
agreements to carry out this subsection.
``(4) Authorization.--There is authorized to be appropriated
not more than $2,500,000 for the purposes of carrying out this
subsection for each of the fiscal years 2010 and 2011.''.
SEC. 703. PROCUREMENT TRAINING AND ASSISTANCE.
Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is
further amended by adding at the end the following new subsection:
``(p) Procurement Training and Assistance.--
``(1) In general.--The Administration shall establish a grant
program for small business development centers in accordance
with this subsection. To be eligible for the program, a small
business development center must be in good standing and comply
with the other requirements of this section. Funds made
available through the program shall be used to--
``(A) work with local agencies to identify contracts
that are suitable for local small business concerns;
``(B) prepare small businesses to be ready as
subcontractors and prime contractors for contracts made
available under the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5) through training and
business advisement, particularly in the construction
trades; and
``(C) provide technical assistance regarding the
Federal procurement process, including assisting small
business concerns to comply with federal regulations
and bonding requirements.
``(2) Award size limit.--The Administration may not award an
entity more than $300,000 in grant funds under this subsection.
``(3) Authority.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to carry
out the program established in subsection (a)(1), the
Administration may make grants or enter into cooperative
agreements to carry out this subsection.
``(4) Authorization of appropriations.--There is authorized
to be appropriated not more than $2,500,000 for the purposes of
carrying out this subsection for each of the fiscal years 2010
and 2011.''.
SEC. 704. GREEN ENTREPRENEURS TRAINING PROGRAM.
Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is
further amended by adding at the end the following new subsection:
``(q) Green Entrepreneurs Training Program.--
``(1) In general.--The Administration shall establish a grant
program for small business development centers in accordance
with this subsection. To be eligible for the program, a small
business development center must be in good standing and comply
with the other requirements of this section. Funds made
available through the program shall be used to--
``(A) provide education classes and one-on-one
instruction in starting a business in the fields of
energy efficiency, green technology, or clean
technology;
``(B) coordinate such classes and instruction, to the
extent practicable, with local community colleges and
local professional trade associations; and
``(C) assist and provide technical counseling to
individuals seeking to start a business in the fields
of energy efficiency, green technology, or clean
technology.
``(2) Award size limit.--The Administration may not award an
entity more than $300,000 in grant funds under this subsection.
``(3) Authority.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to carry
out the program established in subsection (a)(1), the
Administration may make grants or enter into cooperative
agreements to carry out this subsection.
``(4) Authorization of appropriations.--There is authorized
to be appropriated not more than $2,500,000 for the purposes of
carrying out this subsection for each of the fiscal years 2010
and 2011.''.
SEC. 705. MAIN STREET STABILIZATION.
Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is
further amended by adding the following new subsection at the end
thereof:
``(r) Main Street Stabilization.--
``(1) In general.--The Administration shall establish a grant
program for small business development centers in accordance
with this subsection. To be eligible for the program, a small
business development center must be in good standing and comply
with the other requirements of this section. Funds made
available through the program shall be used to--
``(A) establish a statewide small business helpline
within every State and United States territory to
provide immediate expert information and assistance to
small business concerns;
``(B) develop a portfolio of online survival and
growth tools and resources that struggling small
business concerns can utilize through the Internet;
``(C) develop business advisory capacity to provide
expert consulting and education to assist small
businesses at-risk of failure and to, in areas of high
demand, shorten the response time of small business
development centers, and, in rural areas, support added
outreach in remote communities;
``(D) deploy additional resources to help specific
industry sectors with a high presence of small business
concerns, which shall be targeted toward clusters of
small businesses with similar needs and build upon best
practices from earlier assistance;
``(E) develop a formal listing of financing options
for small business capital access; and
``(F) deliver services that help dislocated workers
start new businesses.
``(2) Award size limit.--The Administration may not award an
entity more than $250,000 in grant funds under this subsection.
``(3) Authority.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to carry
out the program established in subsection (a)(1), the
Administration may make grants or enter into cooperative
agreements to carry out this subsection.
``(4) Authorization.--There is authorized to be appropriated
not more than $2,500,000 for the purposes of carrying out this
subsection for each of the fiscal years 2010 and 2011.''.
SEC. 706. PROHIBITION ON PROGRAM INCOME BEING USED AS MATCHING FUNDS.
Section 21(a)(4)(B) (15 U.S.C. 648(a)(4)(B)) is amended by inserting
after ``Federal program'' the following: ``and shall not include any
funds obtained through the assessment of fees to small business
clients''.
SEC. 707. AUTHORIZATION OF APPROPRIATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note), as amended
by sections 403(c) and 504 of this Act, is further amended by inserting
after subsection (g) the following new subsection:
``(h) Small Business Development Centers.--There is authorized to be
appropriated to carry out the Small Business Development Center Program
under section 21 $150,000,000 for fiscal year 2010 and $160,000,000 for
fiscal year 2011.''.
I. Purpose and Summary
Providing entrepreneurial development assistance is one of
the Small Business Administration's (SBA) most critical
missions for those Americans seeking to start a new enterprise.
Through the agency's efforts, small businesses are provided
with assistance with regard to their need for start-up capital,
business plans, and other basic management skills.\1\ Access to
technical assistance and business development services plays an
important role in small business success. These services are
also essential for most firms attempting to grow during an
economic downturn, as enterprises require assistance to
maintain their market share, innovate, and access financing.
Currently, there are many gaps in business development services
provided through the SBA. This is due in part to the lack of
major improvements since the program's last comprehensive
reauthorization in 1999 and the increasing demand for new tools
and resources to address the current economic environment. The
Job Creation Through Entrepreneurship Act of 2009, H.R. 2352,
extends the scope and modifies the delivery of SBA's business
development services, and as a result, addresses
entrepreneurial needs, particularly those related to the
current economic conditions.
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\1\P.L. 85-536, Section 2(a).
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H.R. 2352 updates SBA's entrepreneurial development
resources to reflect the changing needs of small firms by
providing them with new tools for adjusting to and expanding
within the current recession. The bill addresses existing
operational deficiencies of these programs by enhancing service
delivery methods. Finally, to increase their relevance to
address current economic conditions, the legislation expands
the entrepreneurial development programs' emphasis on promoting
growth.
Title I expands entrepreneurial development assistance to
veterans by increasing outreach facilities across the country;
establishing specialized assistance programs; and updating the
institutional structure designed to customize policies and
programs targeted to the sector. Title II increases access to
entrepreneurial development services through the use of
communication technologies to facilitate the creation of high-
quality distance learning resources through public-private
business development experts. Title III ensures entrepreneurial
development services are customized to Native American
entrepreneurs' needs and communities by formalizing in statute
the SBA's Office of Native American Affairs and establishing
grants for business development outreach facilities in regions
with high concentrations of these enterprises. Title IV
improves and expands business development resources for women
entrepreneurs by increasing counseling and training facilities
for this sector, particularly targeting underserved areas;
enhancing the operating procedures for the Women's Business
Program; and mandating a more targeted approach to the National
Women's Business Council's research program. Title V increases
the effectiveness of the SCORE program by establishing new
performance and benchmark requirements for the agency's
business mentoring resources. Title VI updates the structure of
the SBA's entrepreneurial development portfolio by requiring
increased coordination and planning by program operators. Title
VII authorizes the development of specialized assistance
programs at Small Business Development Centers, which are
responsive to the issues facing entrepreneurs today, and
updates operational procedures to improve the delivery of
services through the centers.
H.R. 2352 strengthens SBA's entrepreneurial development
programs so that small businesses can not only survive the
current downturn, but also expand and create new jobs. The
proposed initiatives to broaden and customize business
development assistance are also likely to promote
entrepreneurship in underserved areas, such as rural America
and inner cities, while spurring private investment in all
communities. The Committee further expects the legislation to
improve small firms' access to quality entrepreneurial
assistance by relying upon existing agency expertise and
infrastructure, thereby serving as a cost effective investment
mechanism.
II. Background and Need for Legislation
A. ENTREPRENEURIAL DEVELOPMENT NEEDS AND EXISTING PROGRAMS
Small business owners often seek assistance across an array
of issues, from accessing capital to drafting business plans.
SBA's entrepreneurial development (ED) programs are a critical
tool for providing this aid. In fact, numerous studies have
shown small firms that receive the necessary technical
assistance are twice as likely to succeed.
ED programs also assist entrepreneurs to weather
recessions. These programs aid in ways such as helping small
firms maintain their market share or providing access to the
resources they need to grow and innovate. They therefore play a
vital role in boosting the U.S. economy by expanding the
population of entrepreneurs and increasing their capacity for
success.
To assist entrepreneurs to build competitive enterprises
through an array of services, SBA's ED programs were developed
over the past several decades. Those services include
counseling, workshops and educational training, all of which
are accessible through a network of facilities across the
country. Administration of these programs is facilitated
through SBA, which acts in a public/private partnership with
organizational providers.
Small Business Development Centers, or SBDC's, provide some
of the most critical resources within SBA's ED toolbox. These
facilities serve rural, suburban, and urban communities with
management, technical, and research resources to both existing
and prospective startups. Specifically, they provide assistance
with everything from marketing and financial planning to
organizational and technical problems. With nearly a thousand
service centers and numerous additional outreach offices in the
network, SBDC's operate in a partnership between SBA,
educational institutions, and state and local governments.
Entrepreneurs have access to general business counseling
through the agency's SCORE program, which provides mentoring
services. Nearly 400 chapters across the country connect
experienced and emerging entrepreneurs to provide one-on-one
business counseling.
A wide array of business development services is also
available to entrepreneurs through the agency's Small Business
Training Network. This resource offers online courses,
workshops, publications, information resources, learning tools
and direct access to electronic counseling and other forms of
technical assistance.
On top of this, SBA targets business development assistance
to serve the expanding entrepreneurial population. Assistance
is customized according to the socio-economic and demographic
backgrounds of various cohorts of the small business sector. ED
assistance is targeted to women entrepreneurs through the
Women's Business Center (WBC) Program. That particular
initiative was designed to address the unique needs of women
entrepreneurs by addressing capital access issues, procurement
assistance, and management training. Currently, there are 96
WBCs in 46 states and territories, co-located at other
entrepreneurial development centers or existing as stand-alone
operations.
Access to services for veterans to initiate and expand
small businesses is provided through the agency's five Veteran
Business Outreach Centers. These facilities are responsible for
helping veterans to access capital and procurement
opportunities through marketing and outreach efforts.
In addition to strengthening the women and veteran-owned
business community, SBA customizes entrepreneurial development
assistance resources for Native American entrepreneurs. Through
SBA's Office of Native American Affairs, business development
assistance is designed to address these entrepreneurs' needs in
accordance with their industry and community-based conditions.
Given SBA's track record with the ED program, demand for
these services has surpassed what Congress could have
predicted. Over the past several decades, growth within the
entrepreneurial community has also created new business
development needs. Entrepreneurs today require appropriate
tools to respond to new and challenging conditions in the
marketplace.
B. SBA ED PROGRAMS MUST BE MODERNIZED AND STRENGTHENED
In the face of a changing economic landscape, the purpose
and institutional structure of SBA's ED programs have evolved.
However, despite some minor modifications, the programs'
services and implementation remain essentially unchanged from
their original design. Consequently, they lack the capacity to
address current needs.
Services must reflect current entrepreneurial needs arising from
economic downturn
ED programs must address a range of new needs that firms
currently face. Historically, the agency's ED programs
addressed a comprehensive range of traditional issues. As a
result, SBA developed many one-stop facilities for servicing a
broad array of entrepreneurs. Accordingly, staff expertise
tended to be broad in scope, rather than specialized. That
broad approach has driven the agency's ED program focus over
the past several decades and is inadequate to meet the
specialized needs facing today's entrepreneurs.
Tailoring these services to reflect the specific needs of
small businesses will increase their success. Major shifts in
the economy over the past decade have required small firms to
reduce their cost of production and become more competitive in
domestic and global markets. Further, recent macroeconomic
shocks, including the increasing cost of capital, disruptions
in global trade, and market failures, have created new demands
for business development assistance.
Improve the implementation of the network's programs
Given the increasing range and complexity of small business
owners' needs, the agency's ED programs must be implemented
more effectively. Each ED program has a unique mandate and
service delivery approach that is customized to its particular
clients. However, as a network, the programs have established
local connections and resources that benefit entrepreneurs
within a region. Enhanced coordination among this network is
critical to make the most of scarce resources available for
small firms. It can also ensure that best practices are shared
amongst providers that have similar goals but work within
different contexts.
Increase access to ED services particularly in underserved communities
To bolster firms in underserved communities, all
entrepreneurs must have greater access to ED program resources.
This is critical as many firms from socio-economically
disadvantaged backgrounds lag behind other businesses in
several key indicators. In particular, they struggle to access
affordable capital, which is exacerbated during an economic
slowdown. Another cohort of entrepreneurs requiring specialized
assistance is veterans who significantly benefit from resources
to transfer their military skills into economic opportunities.
Business development resources must be expanded to accommodate
veterans, including those with disabilities and women
separating from the military. This will ensure that following
their service, they maintain the capacity for productivity and
contribute to economic growth. Expanded access to ED assistance
can help these groups stabilize business enterprises and
maintain economic opportunities.
Improve the distribution of resources to maintain operations and
growing demand for ED services
Resources to fund ED programs in accordance with demand are
significantly below the necessary levels. This is a result of a
budgetary approach in which the entrepreneurial development
programs were funded well below the Congressionally-authorized
levels. For every one of these programs, the funding level is
twenty to thirty percent below the authorized level. Cuts to
the supply of resources through these programs run counter to
trends in the small business community, given that there has
been significant growth in both the number and types of
entrepreneurs over the past several decades. These reductions
have also occurred simultaneously with new conditions in local
and national economies, which are altering the types of
opportunities available for entrepreneurs as well as their
business development needs.
Enhance connections between program performance standards and economic
growth objectives
As it stands, the ED network has minimal transparency in
highlighting its contributions to economic growth. Data
currently gathered by the SBA for this type of reporting does
not adequately capture ED's economic impact. For example, there
is an overreliance on capturing data such as participation
rates; e.g., total conference attendees, a figure that often
fails to illustrate a program's utility. Similarly, SBA's
online services share this problem, as it is difficult to
numerically quantify the system's benefits. As these resources
can be accessed freely and no follow up is required on their
use, the agency cannot definitively demonstrate their use for
growing businesses. Instead, the performance data should
indicate activities such as the number of jobs created,
employees hired and sales generated from the outcome of each
client relationship and service provided. This type of data
would more accurately reflect the role of these programs in
economic growth.
As the economic environment continues to change, ED
programs must be updated accordingly. The current gaps in
business development assistance services and emerging
entrepreneurial needs can be resolved through statutory
enhancements in the agency's ED portfolio. H.R. 2352 provides
these programmatic enhancements by improving the services
available for small businesses to successfully adjust to the
current economy; updating the institutional structure to
increase the efficient delivery of these resources; and
promoting economic growth objectives through these programs.
III. Hearings
The Committee on Small Business has held numerous hearings
to evaluate the state of entrepreneurial development resources
at SBA and to consider updates to these programs in order to
address emerging business assistance needs. On February 11,
2009, the Committee held a hearing to examine the effectiveness
of SBA's ED programs, particularly taking into account their
capacity to assist firms to adjust successfully to the economic
downturn and considering recommendations to improve these
services. At a hearing before the Subcommittee on Rural
Development, Entrepreneurship and Trade, on April 2, 2009,
legislative initiatives to update and reauthorize SBA's ED
programs were evaluated to determine their likely impact on
small businesses and their role in promoting an economic
recovery. On May 6, 2009, the Committee considered the
effectiveness of H.R. 2352 in stabilizing and strengthening
small businesses during the economic downturn. Over the past
several years, the Committee has also held hearings to evaluate
the service quality and resource capacity of SBA's ED programs
available to address business assistance needs.
IV. Committee Consideration
The Committee on Small Business, a quorum being present,
met in open session on May 13, 2009 to consider H.R. 2352.
V. Committee Votes
The Committee on Small Business ordered H.R. 2352 reported
to the House, as amended, by a voice vote at 2:34 pm. During
consideration of the bill, three amendments were considered.
First, an amendment by Mrs. Dahlkemper, making national guard
members and reservists eligible for VBC program services, was
agreed to by voice vote at 2:28 pm. Second, an amendment by Mr.
King, requiring the establishment of a peer-to-peer technical
assistance initiative, as part of the distance learning
program, was agreed to by voice vote at 2:32 pm. Finally, an
amendment by Mrs. Halvorson, making surviving spouses of
deceased veterans eligible for VBC program services, was agreed
to by voice vote at 2:34 pm.
VI. Section-by-Section Analysis of H.R. 2352
Section 1. Short title; table of contents
This section includes a short title and the table of
contents.
Title I--Establishment of Veterans Business Center Program
Section 101. Veterans Business Center Program
This section establishes new program and requirements under
SBA's Office of Veterans Business Development.\2\ It creates a
Veterans Business Center program to provide entrepreneurial
training and counseling to veterans. Under this program,
existing and new veterans' assistance outreach centers are
required to focus on veterans' entrepreneurial development,
counseling of veteran-owned businesses through one-on-one
instruction and classes, and government procurement assistance
to veterans. This section establishes a Director to oversee and
implement the program. The Director is required to report to
the Associate Administrator for Veterans Business Development.
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\2\SBA's Office of Veterans Business Development was established
with passage of Public Law 106-50, The Veterans Entrepreneurship and
Small Business Development Act of 1999, which was enacted to address
the lack of adequate resources to assist veterans seeking self-
employment and entrepreneurial opportunities.
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The Administrator is required to establish by regulation a
process to designate new Veterans Business Centers. This
process must include an explicit period where entities can
apply to become a Veterans Business Center, a period where the
Administrator reviews such applications, and a period where the
Administrator informs the applicants of the outcome of the
review. The Administrator is required to make publicly
available the awards of grants under this section.
Awards for grants are authorized in this section for the
establishment of additional Veterans Business Centers. Eligible
centers may receive an initial grant of $150,000 per year for
no longer than 5 years. After a Veterans Business Center
receives five years of initial grants, it may receive a growth
funding grant of $100,000 per year for no longer than 3 years,
unless it meets performance benchmarks as established by the
Administrator. If such performance benchmarks are met, the
Center can reapply for another growth funding grant. The
program requires a non-federal match of 50 percent of the
federal funds each Center receives and permits a Center to
request a hardship waiver from the Administrator from this
requirement.
This section requires SBA to give priority to applications
that will establish new Veterans Business Centers in geographic
areas that are not currently served by an existing Veterans
Business Center where the populations of veterans exceeds the
national median of such measure; or the populations of veterans
from the wars in Iraq and Afghanistan exceed the national
median of such measure.
This section also sets forth that the SBA shall be
responsible for the development and implementation of an annual
training program for the staff and personnel of Veterans
Business Centers. This will include educating, supporting, and
providing best practices regarding the establishment and on-
going operation of such Centers. The SBA is required to develop
this training program in consultation with Veterans Business
Centers, the Interagency Veterans Task Force, and veteran's
service organizations. The Administrator is authorized to
contract with qualified third party vendors as necessary to
develop and implement this program.
The program grandfathers Veterans Business Outreach Centers
established by the Administrator under the authority in section
8(b)(17) of the Small Business Act and veterans entrepreneurial
training centers that were funded by the National Veterans
Business Development Corporation established in Section 33 of
the Small Business Act and that remain in operation on date of
enactment. Such Centers are fully eligible for grants made
available in this program.
The Committee is assured by the SBA's April 16, 2009
correspondence of their support for designating and providing
Congressionally-appropriated funds for the establishment of
additional veteran entrepreneurship training centers through
SBA's Veteran Business program. In the letter, the agency
further indicated agreement with the Committee's position on
the need to maintain the network of existing centers that are
available to assist veterans, specifically through the three
existing Regional Hug Community Based Centers, funded by the
National Veterans Business Development Corporation. The
Committee supports the SBA's March 31, 2009 publication of a
special program announcement in www.grants.gov which would
facilitate the continued operations of the Northeast Veterans
Business Resource Center, Inc., Boston, Massachusetts; the
Veterans Advocacy Foundation, St. Louis, Missouri; and Vet Biz
Central, Flint, Michigan. The agency has committed that
providing the timely submission of a technical proposal, each
of the named centers will receive a cooperative agreement award
of $150,000 for a period of one year, from April 2009 to April
2010 and in 2010, these centers will have to compete for future
funding with other organizations seeking to participate in the
VBOC program.
The section authorizes to carryout this initiative $10
million for fiscal year 2010 and $12 million for fiscal year
2011.
In addition to the core grant funding, this section
establishes three supplemental grant programs for specific
activities carried out by Veterans Business Centers. This
includes an Access to Capital grant program that will be used
by Centers to develop specialized programs to assist veteran-
owned small businesses in securing capital and repairing
damaged credit; provide veteran-owned small businesses
informational seminars on securing credit and loans; provide
one-on-one counseling to veteran-owned small businesses to
improve financial presentations to lenders; and facilitate
veteran-owned small businesses access to non-traditional
financing sources, as well as traditional lending sources.
This section also establishes a Procurement Assistance
grant program, which will provide Centers with funds to work
with local agencies to identify contracts that are suitable for
veteran-owned small businesses; prepare veteran-owned small
businesses to be project ready as subcontractors and smaller
primes for contracts made available through the American
Recovery and Reinvestment Act through training and business
advisement, especially in the construction trades; and provide
veteran-owned small businesses technical assistance regarding
the federal procurement process, including assisting veteran-
owned small businesses comply with federal regulations and
bonding requirements.
A Service-Disabled Veterans grant program is also included
in this section in which Veterans Business Centers will be
provided with funds to develop outreach programs to local and
regional service-disabled veterans regarding the benefits of
self-employment; provide tailored training to service-disabled
veterans regarding business plan development, marketing,
budgeting, accounting, and merchandising; and assist veteran-
owned small businesses locate and secure business
opportunities.
For each of these three grants, the SBA can award a Center
up to $75,000. There is authorized $1.5 million for each of
fiscal years 2010 and 2011 for each of the three grant
programs.
The section contains language directing the agency on how
to fund the new grant initiatives discussed below. The
Committee expects Veterans Business Center's core program
funding to remain separate from appropriations for the new
grant initiatives established in H.R. 2352.
Finally, the SBA is authorized to carryout an event once
every two years for the purpose of providing outreach,
networking opportunities, education, training, and support to
Veterans Business Centers funded through this Act, veterans
service organizations, veteran-owned small businesses, and
other entities as determined by the Administrator. $450,000 is
authorized to carryout this section in fiscal year 2010.
Section 102. Reporting requirement for interagency task
force
This section requires a report to Congress semi-annually on
appointments made to, progress, and actions items regarding the
Task Force established under section 32(c) of the Small
Business Act.
Title II--Educating entrepreneurs through today's technology
Section 201. Educating entrepreneurs through technology
The Small Business Act is amended by adding a new section,
which has as its purpose providing high-quality multilingual
distance training and education to potential and existing
entrepreneurs through the use of technology.
In order to implement this new program, the Administrator
is required to contract with qualified third-party vendors for
entrepreneurial training content and the development of a
communications platform that can broadcast content under this
Act nationally. The Administrator will develop contract with
two qualified-third party vendors to develop content.
This section defines a qualified third-party vendor as an
entity with experience in distance learning content and/or
communications technology with the ability to utilize on-line,
satellite, video on demand and connected community based
organizations to distribute and conduct distance learning
related to entrepreneurship, credit management, financial
literacy and federal small business development programs.
The content is mandated to be timely and relevant to
entrepreneurial development and shall be able to be
successfully communicated remotely to an audience through the
use of technology. In addition, the SBA to the maximum extent
practicable must promote content that makes use of technologies
that allow for remote interaction by the content provider with
an audience. The SBA must also ensure that the content is
catalogued and accessible to small businesses on-line or
through other remote technologies.
With regard to technology, the SBA is required to ensure
that the communications technology is able to distribute
content through all 50 states and U.S. territories to small
businesses, home-based businesses, Small Business Development
Centers, Women's Business Centers, Veterans Business Centers,
and SBA District Offices. Such communication technology must
make use of broadband to the maximum extent possible.
The Administrator is required to report to Congress six
months after the date of enactment of its progress in
implementing this Act. The Administrator must report to
Congress, beginning one year after of enactment and annually
thereafter, on the number of presentations made, the number of
small businesses served, and feedback on the usefulness of this
medium in presenting entrepreneurial education nationwide.
$2 million is authorized to carryout this Act in each of
fiscal years 2010 and 2011.
Title III--Enhancing Native American entrepreneurship
Section 301. Establishment of Office of Native American
Affairs and Tribal Business Information Centers
Program
This section establishes the Office of Native American
Affairs within SBA and designates an Associate Administrator
for Native American Affairs to oversee this office. This
section sets forth responsibilities of the Office, which
include developing and implementing tools and strategies to
increase Native American entrepreneurship; expanding the
availability of business training, access to capital, and
federal small business contracts for Native American
entrepreneurs, expanding outreach to Native American
communities and aggressively marketing entrepreneurial
development services to this community, and representing the
agency regarding Native American economic development matters.
The Office is responsible for oversight and implementation of
all agency initiatives regarding Native American
entrepreneurial development. The Office is authorized for $2
million for each of fiscal years 2010 and 2011.
In addition, this section authorizes the Administrator to
operate on a stand-alone basis or in coordination with other
federal agencies, a Tribal Business Information Center (TBIC)
program, where the Administrator may provide grants as
described in this section, contribute agency personnel to the
Centers, and contribute agency resources to the Centers for the
purpose of providing Native American populations with business
training and entrepreneurial development assistance. The
Administrator shall establish by regulation a process to make
such designations and grant awards under this program.
Under the TBIC program, the Administrator is authorized to
designate and make grants of up to $300,000 to Tribal Business
Information Centers. Grants shall be used for the purpose of
providing business workshops, business counseling,
entrepreneurial development training, access to computer
technology, and other resources to assist Native American
Indians start or expand a business. There is authorized $15
million for fiscal year 2010 and $17 million for fiscal year
2011.
Section 302. Small business development center assistance
to Indian tribe members, Alaska Natives, and Native
Hawaiians
This section sets up a procedure within the Small Business
Act whereby SBDCs funded by the SBA that are in ``eligible''
states can apply for an additional grant to be used solely to
provide services to assist with outreach, development, and
enhancement on Indian lands of small business startups and
expansions owned by Indian tribe members, Alaska Natives, and
Native Hawaiians. It defines eligible states as those that have
a combined population of Indian tribe members, Alaska Natives,
and Native Hawaiians comprising at least 1 percent of the
state's total population, as shown by the latest available
census. The section places a cap on the program of $300,000 per
year but no matching funds are required.
A Small Business Development Center receiving a grant is
required to request the advice of tribal organizations on how
best to provide assistance to Indian tribe members, Alaska
Natives, and Native Hawaiians and where to locate satellite
centers to provide such assistance.
The legislation authorizes $7,000,000 for each of fiscal
years 2010 and 2011 for the program. The Administration can
carry out this program only with amounts appropriated in
advance specifically to carry it out. The Committee intends
that any funds appropriated to support this program be in
addition to funds allocated to SBDCs under the normal formula
for those funds and that such funds be specifically
appropriated for this program.
Title IV--Broadening the Women's Business Centers Program
Section 401. Notification and publication of grant awards
This section requires SBA to annually report publicly on
its website the grants made to women's business centers. This
shall include the amount of the annual grant, the total number
of years since its inception that a center has won an SBA
grant, how much funds it has received in total from the SBA
over its lifetime, as well as the total private matching funds
raised over its lifetime. The Committee intends that SBA make
this information widely available as soon as such awards are
made to the centers.
Section 402. Communications
This section requires the SBA to establish by regulation a
standardized process to communicate with women's business
centers regarding program administration matters, including
reimbursement, regulatory matters, and programmatic changes.
Women's business centers shall be given notice and an
opportunity to comment on this regulation. In addition, women's
business centers shall receive funds not later than one month
after an award has been announced. The Committee intends this
section to reduce the duration between SBA's announcement of
awards and centers' receipt of funds from the agency.
Section 403. Funding
This section modifies the funding formula for the
implementation of the Women's Business Center Program created
by Section 29 of the Small Business Act.\3\ The revised funding
formula eliminates the distinction in current law between
funding and the sustainability pilot program. This section
classifies women's business centers into three separate tiers.
The Committee intends that this section will place an emphasis
on opening new centers, while also maintaining minimal long-
term support for existing centers.
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\3\Currently, the Administrator selects a grantee or grantees from
numerous applicants, and then enters into a grant agreement covering a
five-year period specifying how the grantee will deliver the services
to be provided at a Women's Business Center (WBC). When originally
created, Congress expected WBCs to become self-sustaining with private
charitable contributions. WBCs then notified Congress that they were
having difficulty raising funds from sources other than the federal
government. Congress reacted by creating a sustainability pilot program
that authorized some of the funds appropriated for new centers would be
diverted to sustain existing centers whose five-year grant term was
expiring. Grants under the sustainability pilot were to last four years
(a time period which expired some time ago) and were for an additional
five years. In the 2000 reauthorization, funds for sustainability were
apportioned at 30.2 percent. In subsequent appropriations bills,
including the 2007 emergency supplemental appropriation to fund the
activities of the military in Iraq and Afghanistan, the percentages for
sustainability have continued to increase thereby making it more
difficult to balance funds available to offer women in underserved low-
income areas, including rural America, the services of WBCs.
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The bill allocates 40 percent of available funding to new
centers, i.e., to areas where an existing center has not been
funded. Each grant, subject to the revised matching formula, is
limited to $150,000 per center. Second tier grants (allocated
20 percent of available funds) will last for three years and
are available to existing centers that have completed their
original five years of funding. In recognition of Congressional
intent that women's business centers were to become self-
sustaining, this section reduces the size of federal grants to
Second Tier women's business centers from $150,000 to
$100,000.\4\ The remaining 40 percent of funds will be made
available to women's business centers that have exhausted their
Second Tier Grants. Third Tier Grants will last for three years
but are renewable for as long as the center meets the criteria
for obtaining a Third Tier Grant. The size of Third Tier Grants
is limited to $100,000 and certain benchmarks must be met to
obtain and continue to receive such grants.
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\4\Permanent non-federal funding will benefit WBCs that no longer
will have to rely on the caprice of federal appropriators.
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Performance requirements are established for those centers
reapplying for Third Tier Grants. In making allocations for
Third Tier Grants, the Administrator is required to develop
benchmarks that include the total number of women served by
center, proportion of low-income women and socioeconomic
distribution of clients served by center, proportion of
individuals in the community that are socially and economically
disadvantaged (based on median income for both rural and urban
areas), future fundraising and service coordination plans,
diversity of services provided, and regional distribution
within SBA's 10 regions.\5\
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\5\In developing the benchmarks, the Committee expects the
Administrator to comply with the notice and comment requirements of the
Administrative Procedure Act as set forth in the SBA's regulations at
13 C.F.R. Sec. 101.108.
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In addition, this section makes changes to the matching
formula. Women's business centers do not receive all of their
funding from federal grants. Rather, they are required to
obtain matching funds from non-federal sources. This section
revises that matching formula to only require women's business
centers to obtain one dollar in non-federal funds for every two
dollars in federal funds during the first and second year of
operations.\6\ Thereafter, the matching requirement is a dollar
for dollar match unless a center is serving a very low-income
area (one in which at least 50 percent of the population is
below the median income for the State or U.S. territory in
which it is located). For centers serving a high concentration
of lower income individuals, such women's business centers need
only obtain one dollar in non-federal dollars for every two
dollars of federal grant money.
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\6\The Committee expects that the Administrator shall, in selecting
First Tier grantees, scrutinize WBC operating plans to ensure they have
mechanisms in place to ramp up their fundraising efforts beyond year
two. Furthermore, to the extent that the Administrator has collected or
knows of best practices for WBC fundraising, the Committee expects that
information will be made available to applicants as well as operating
WBCs.
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This section authorizes funds for women's business centers
for $20 million in fiscal year 2010 and $22 million in fiscal
year 2011.
Section 404. Performance and planning
This section establishes performance measures for women's
business centers. The Committee intends such measures to be
used proactively by the Administrator to determine continued
funding eligibility for centers. Such measures shall include
outcome-based measures of the amount of job creation or
economic activity generated in the local community as a result
of efforts made and services provided by each women's business
center and service-based measures of the amount of services
provided to individuals and small business concerns served by
each women's business center.\7\ Such measures shall take into
account the demographic differences of populations served by
the centers. The Administrator's evaluation of women's business
centers as required by subsection 29(h) shall be in part based
on these this subparagraph's performance measures. These
measures and the Administrator's evaluations thereof shall be
made publicly available.
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\7\The Committee expects that the Administration develops
performance measures that are specific in nature to sufficiently
evaluate the impacts of the centers' services. These measures can
include items such as: program effects on jobs retained or expanded by
the assisted businesses, program effects on sales (domestic and
international) generated by the assisted businesses, and program
effects on assisted firms' survival rates.
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In addition, this section requires women's business center
to submit an annual plan for the next year that includes the
center's funding sources and amounts, strategies for increasing
outreach to women-owned businesses, strategies for increasing
job growth in the community, and other content as determined by
the Administrator. The Administrator's evaluation of women's
business centers as required by subsection 29(h) shall be in
part based on these this subparagraph's planning requirements.
These measures and the Administrator's evaluations thereof
shall be made publicly available.
Section 405. National Women's Business Council
This section authorizes funds for the Council at $1 million
for each of fiscal years 2010 and 2011 and requires specific
studies on women's entrepreneurship. This includes a study on
the impact of the 2008-2009 financial markets crisis on women-
owned businesses and a study on the use of SBA's programs by
women-owned businesses.
The Committee requires that the Council consult with the
House and Senate Small Business Committees to ensure that
proposed studies on women enterprises will examine issues of
importance not only to the Council but to Congressional
policymakers. In other words, the Committee intends that the
studies mandated by this section shall be useful not only to
the SBA but to legislators as well. In order to ensure the
utility of these studies to Congress, the Committee expects
that the Council will consult with the Committee at least 30
days prior to the commencement of any research.
While the Committee reauthorizes the Council, the Committee
expects to see a further demonstration of the utility of the
Council's research and work products. The Committee expects the
Council to make greater efforts to link its work with the
challenges facing today's entrepreneurs.
Title V--SCORE Program Improvements
Section 501. Expansion of volunteer representation and
benchmark reports
This section requires SCORE administrators to actively
recruit and maintain volunteer mentors in order to increasingly
reflect socially- and economically-disadvantaged sectors of the
population, while reporting on the status of this effort to the
SBA every year. The Committee expects SCORE administrators to
include in the annual reports the total socially-economically
disadvantaged volunteers as a proportion of the demographic
composition of each community as well as the length of time
each volunteer has provided service to the program. It is also
expected that SBA provides a copy of the annual report to the
Committee.
In addition, SCORE administrators are required to establish
benchmarks reviewed by the SBA regarding service delivery, such
as the success of assisted entrepreneurs. The Committee expects
program administrators to include in the report data on the
geographic distribution of businesses assisted as well as gaps
in services according to location. Other benchmarks should
include coordination efforts with public-private entities and
details on fundraising ventures, including all grants awarded.
It is also expected that SBA provides a copy of the annual
report to the Committee.
The Committee expects this section to provide for greater
accountability of funding resources direct toward SCORE.
Section 502. Mentoring and networking
The Administrator is required to ensure that SCORE program
establishes a mentoring program and a networking program for
small business concerns. The mentoring program through SCORE
will provide one-on-one advice to small business concerns from
qualified counselors. Qualified counselors are designated as
those that have at least ten years experience in the industry
sector or the area of responsibility of the small business
concern seeking advice.
The Administrator is also required to ensure that the SCORE
program carryout a networking program that provides small
business concerns with the opportunity to make business
contacts in their industry or geographic region.
Section 503. Name of program changed to SCORE
This section updates the Small Business Act by deleting
inclusion of the ``Active Corps of Executive'' (ACE) program in
the SCORE statute, due to the defunct nature of this entity
since 1995. In addition, this change specifies that from the
date of enactment forward the program shall be known as SCORE.
Section 504. Authorization
The SCORE program is authorized in Section 20 of the Small
Business Act for $7 million per year for each of fiscal years
2010 and 2011.
Title VI--Expanding Entrepreneurship Act of 2009
Section 601. Expanding entrepreneurship
This title adds a new subsection (g) to the section 4 of
the Small Business Act by mandating the following new
responsibilities and initiatives be implemented through the
SBA's ED portfolio.
(1) Entrepreneurial development planning
This subsection requires the SBA to develop a plan and
submit it to Congress for creating jobs through its
entrepreneurial development programs. It shall include the
agency's plan for drawing on existing programs, including Small
Business Development Centers, Women's Business Centers, SCORE,
Veterans' Business Outreach Centers, Native American Outreach,
and other appropriate initiatives. The SBA shall also identify
a strategy for each SBA Region to create or retain jobs through
agency programs.
The Committee expects this requirement to be completed in
addition to the current report performed by the SBA's Office of
Entrepreneurial Development, which is an annual study on the
portfolio of programs' performances from the past year. This
plan must instead formulate future-oriented goals for the
programs and develop specific implementation strategies to
realize the objectives.
(2) Data collection process
This provision requires that the SBA develops and
implements a consistent data collection process amongst all ED
programs. It specifies the types of data to be collected,
including job creation and program performance measurements.
The Committee intends that ED program providers be consulted
before this process is implemented.
(3) Coordination and alignment of SBA entrepreneurial
development programs
This subsection requires that SBA coordinate the agency's
Entrepreneurial Development programs with State and local
economic development agencies and other federal agencies as
appropriate. The Administrator must report annually to
Congress, in consultation with other federal departments and
agencies as appropriate, on opportunities to foster
coordination, limit duplication, and improve program delivery
for federal entrepreneurial development activities.
(4) Database of entrepreneurial development service
providers
This subsection establishes a database of providers of
entrepreneurial development services and requires the
Administrator to make this resource available via the agency's
website. This database must be searchable on industry,
geography, and service required.
The Committee expects the database to be easily accessible
on the SBA's website to ensure that entrepreneurs can gain
information on the resources available nationally and in their
local communities. The Committee also expects that the
Administrator seek comment from ED providers on this effort
before it is implemented.
(5) Community specialist
The Administrator is required to designate not less than
one staff member in each SBA District Office as a Community
Specialist who has as their full-time responsibility working
with local entrepreneurial development service providers to
increase coordination with federal resources. The SBA must
establish benchmarks to evaluate this position's performance.
The Committee expects the Community Specialist to work with
the region's entrepreneurial development service providers,
including economic development agencies, community development
associations, business assistance providers, educational
institutions, and local, regional, and state officials to plan
for and promote sustainable regional growth through
entrepreneurship activities.
(6) Entrepreneurial development portal
The Administrator is required to establish a web-based
portal that provides comprehensive information on all of SBA's
entrepreneurial development resources. This must be available
with one-click from the SBA's main website. This shall increase
consumer-oriented webpages on the agency's website and focus on
promoting access to business solutions, including marketing,
financing, and human resources planning; establish relevant web
content aggregated by industry segment, stage of business
development, level of need, and include referral links to
appropriate agency services (financing, training and
counseling, procurement assistance); and provide style
guidelines and links for visitors to the SBA website to be able
to comment-on and/or rate the materials in terms of their
usefulness.
The Committee expects these resources to be easily accessed
by businesses seeking assistance online and information on
entrepreneurial development resources in their communities.
Currently, the Committee believes that the agency's online
resources are neither highly transparent nor easily accessible;
and intends that the agency overhaul these resources to address
these shortcomings. The Committee also expects that the
Administrator seek comment from ED providers on this effort
before it is implemented.
(7) Prohibition of pilot programs
This subsection prohibits the SBA from establishing an
entrepreneurial development pilot program for a period of
greater than three years. The Committee intends this provision
to limit unauthorized programs from using scarce ED resources.
The Committee strongly believes that the agency should seek
formal statutory language for any program that it believes is
worthy of regular federal funding and resources. It is not the
Committee's intent that this provision be used as part of the
oversight mechanism for ED providers.
Title VII--Modernizing the Small Business Development Center Program
Section 701. Small Business Development Center operational
changes
This section makes several operational and technical
changes to the Small Business Development Center (SBDC)
program. The SBA is required to provide grants only to
universities with academic accreditations. The Committee
intends to strengthen eligibility criteria for SBDC grantees by
requiring new award recipients to be institutions of higher
education that are fully accredited.
This section clarifies the contract negotiation process
between the agency and grant recipients, and authorizes the
latter as equal partners in the process. The provision is
expected to ensure that the entities are functioning as a
partnership and that SBDC grant recipients serve a meaningful
role in the negotiations to determine the programs/services
they will provide as well as the finalized contract agreement
with the agency. This section also prohibits SBA interference
in the hiring practices of the SBDC grant recipient host. The
intention of the provision is to clarify that the agency does
not have veto authority over the grant recipient's hiring
practices. It is required that the hiring process must be based
upon fair, openly competitive and non-discriminatory hiring
practices.
This section expands privacy protection requirements to
apply to the content of SBDC consultation sessions. Client
confidentiality protections established in the 2004 SBA
Reauthorization Act are strengthened to also cover the context
of the consulting engagement.
Program administrative costs are addressed in this section,
limiting the agency to an amount of $500,000 to be taken from
program resources for administration expenses to examine center
operations. The Committee intends that the SBDC Program Office
and the SBA should budget for administrative costs through the
agency's annual fiscal proposals.
This section allows exemptions in the event of a federally-
designated natural or human-caused disaster to the cap on non-
matching portability grants. The Committee intends this
provision will prevent the historically lengthy and
disconnected process for grant proposals responding to one
disaster, such as the occurrence in the Gulf Coast.
This section limits the number of SBDC grantees to one per
state, unless a single SBDC does not apply to cover the entire
state. This provision, however, grandfathers the multiple SBDC
grantees in California and Texas, until they propose to
consolidate. In addition, for the purpose of this section, an
SBDC grantee is defined as the entity that received the funds
from the SBA pursuant to the SBDC funding formula.
Due to their ability to secure separate federal funding for
entrepreneurial development activities from the SBA, this
section eliminates women's business centers from the pool of
eligible entities for SBDC grants.
Core funding and specialized grant program sections
established in sections 702, 703, 704, and 705
Sections 702, 703, 704, and 705 contain language directing
the agency on how to fund the new grant initiatives they
establish. This language specifically prevents the SBA from
using funds from the SBDC core program established in section
21(a)(1) of the Small Business Act. As a result, the Committee
fully expects SBDC's core program funding to remain separate
and independent from appropriations for the new grant
initiatives established in H.R. 2352. Further, it is expected
that the SBDC core program be funded at least at its current
authorization level.
Full funding is critical to ensure service providers have
the capacity to fulfill the program's mandate, especially as
demand for entrepreneurial development assistance has
increased. However, it is the Committee's judgment that this
program has been inadequately funded. Despite the success of
the SBDC program, the program was flat-funded over recent
years, with the agency requesting only a 2 percent increase in
its budget during this time. The effect of this cut, on top of
the effects of inflation over the past six years, means that
many centers across the United States will have lost up to
twenty percent of funding since 2001.
By creating additional authorizations for the grant
initiatives, the legislation is intended to facilitate the
development of specialized services for interested and eligible
centers. However, the grants have not been designed to
substitute for the comprehensive set of services that SBDCs are
required to provide in their core program.
Section 702. Access to Credit and Capital Program
Section 702 establishes a grant program for SBDCs to
develop specialized programs to assist local small firms in
securing capital and repairing damaged credit; provide
informational seminars on securing credit and loans; provide
one-on-one counseling with potential borrowers to improve
financial presentations to lenders; and facilitate borrowers'
access to non-traditional financing sources, as well as
traditional lending sources. The award size under this program
is $300,000. $2.5 million is authorized for each of fiscal
years 2010 and 2011 for the purposes of carrying out this
section. Funds for this program are separate and in addition to
funds provided to the core SBDC program.
Section 703. Procurement Training and Assistance Program
This section establishes a procurement training program for
SBDCs to work with local agencies to identify contracts that
are suitable for local small firms; prepare small businesses to
be project ready as subcontractors and smaller primes on for
contracts made available through the American Recovery and
Reinvestment Act through training and business advisement,
especially in the construction trades; and provide technical
assistance regarding the federal procurement process, including
assisting small firms comply with federal regulations and
bonding requirements. The award size under this program is
$300,000. $2.5 million is authorized for each of fiscal years
2010 and 2011 for the purposes of carrying out this section.
Funds for this program are separate and in addition to funds
provided to the core SBDC program.
Section 704. Green Entrepreneurs Training Program
This section establishes a green entrepreneurial
development program, in which SBDCs will provide education
classes and one-on-one instruction in starting a business in
the fields of energy efficiency, green technology, or clean
technology; coordinate such classes and instruction, to the
extent practicable, with local community colleges and local
professional trade associations; assist and provide technical
counsel to individuals seeking to start a business in the
fields of energy efficiency, green technology, or clean
technology. The award size under this program is $300,000. $2.5
million is authorized for each of fiscal years 2010 and 2011
for the purposes of carrying out this section. Funds for this
program are separate and in addition to funds provided to the
core SBDC program.
Section 705. Main Street Stabilization Program
Eligible SBDCs are authorized to receive grants through
this section for the purpose of establishing a statewide Small
Business Helpline within every state and territory to provide
immediate expert information and assistance to small firms;
assist dislocated workers interested in starting their own
business; developing a portfolio of online survival and growth
tools and resources struggling small companies can utilize 24/7
via the Internet; growing business advisory capacity to provide
expert consulting and education to assist small businesses at-
risk of failure; and deploying additional resources to help
specific sectors with a high presence of small companies. The
award size under this program is $250,000. $2.5 million is
authorized for each of fiscal years 2010 and 2011 for the
purposes of carrying out this section. Funds for this program
are separate and in addition to funds provided to the core SBDC
program.
Section 706. Prohibition on program income being used as
matching funds
Entities participating in the SBDC program are prohibited
from using funds obtained through the assessment of fees to
small business clients as program matching funds. It is the
Committee's intent that this section further encourages SBDCs
to secure matching funds from private resources other than the
small business clients seeking to use SBDCs' services.
Section 707. Authorization
Funds for the SBDC program are authorized for $150 million
in fiscal year 2010 and $160 million in fiscal year 2011.
VIII. Committee Estimate of Costs
At the time of the filing of the report on H.R. 2352, the
cost estimate of the Congressional Budget Office was not
available. In compliance with clause 3(d)(2) of rule XIII of
the Rules of the House of Representatives and based on the best
information available at this time, the Committee estimates
that, should H.R. 2352 be enacted, it would a cost of $234
million in fiscal year 2010 and $248 million in fiscal year
2011. Most of the costs fall within budget function 370,
(commerce and housing credit).
Basis of the estimate
In Title I of H.R. 2352, authorization is provided for the
operations of the Veterans Business Center Program, including
outreach facilities and administrative costs. Additional
administrative resources for the implementation of a biennial
Veterans Business Summit at $450,000 are also provided for in
the legislation. Further, this section authorizes the SBA to
award a number of grants to Veterans Business Centers to expand
the range of services provided to this sector. It is estimated
that implementing the new grant provisions in the section would
cost $4.5 million.
Title II costs include $2 million for the establishment and
operation of Distance Learning programs at the agency in both
FY 2010 and 2011, which includes resources for the development
of entrepreneurial training content by third parties. An
additional $100,000 is authorized for the establishment of
communications infrastructure and staff resources for the
development of an online peer-to-peer technical assistance
online network.
The costs for Title III include a program authorization for
the administration of the SBA's Office of Native American
Affairs. Additionally, this section authorizes the SBA to award
a number of grants for the establishment of Tribal Business
Information Centers to expand the range of services provided to
this sector. It is estimated that implementing the new grant
provisions in the section would cost $15 million in FY 2010 and
$17 million in FY 2011. This section further authorizes the SBA
to award a number of grants to eligible Small Business
Development Centers located in communities with high Native
American populations to expand outreach facilities for these
entrepreneurs. It is estimated that implementing this new grant
provision would cost $7 million in both FY 2010 and FY 2011.
Program authorizations levels for Title IV include $20
million in FY 2010 and $22 million in FY 2011 for the Women's
Business Center operations. Further, the National Women's
Business Council is authorized at $1 million for both FY 2010
and FY 2011.
Title V authorizes funding for SCORE program operations at
$7 million for both FY 2010 and 2011.
It is estimated that costs for Title VI will include
$100,000 in personnel resources for both FY 2010 and FY 2011
for planning, database management and coordination requirements
of the legislation. $3.4 million is expected to be necessary to
fund personnel resources for the designation of Community
Specialists as required by the legislation. This cost estimate
is determined based upon locating one Community Specialist in
each of the 85 District Offices with an average salary for
these staff at $40,000 per year. To establish the
infrastructural and staff resources necessary for the
development and maintenance of the ED portal on the agency's
website, it is estimated that $1 million will be required.
In Title VII, H.R. 2352 authorizes the SBA to award a
number of grants to Small Business Development Centers to
expand the range of services provided to entrepreneurs. It is
estimated that implementing the section would cost $2.5 million
for the implementation of each of the four new grant programs,
for a total of $10 million in both FY 2010 and FY 2011.
Further, authorization is provided for the core operations of
the Small Business Development Center Program, including
outreach facilities and administrative costs, at $150 million
in FY 2010 and $160 million in FY 2011.
IX. Oversight Findings
In accordance with clause (2)(b)(1) of rule X of the Rules
of the House of Representatives, the oversight findings and
recommendations of the Committee on Small Business with respect
to the subject matter contained in H.R. 2352 are incorporated
into the descriptive portions of this report.
X. Statement of Constitutional Authority
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in Article I, Section 8, clause 18, of the
Constitution of the United States.
XI. Compliance with Public Law 104-4
H.R. 2352 contains no unfunded mandates.
XII. Congressional Accountability Act
H.R. 2352 does not relate to the terms and conditions of
employment or access to public services or accommodations
within the meaning of section 102(b)(3) of P.L. 104-1.
XIII. Federal Advisory Committee Statement
H.R. 2352 does not establish or authorize the establishment
of any new advisory committees.
XIV. Statement of No Earmarks
Pursuant to clause 9 of rule XXI, H.R. 2352 does not
contain any congressional earmarks, limited tax benefits, or
limited tariff benefits as defined in clause 9(d), 9(e), or
9(f) of rule XXI.
XV. Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
H.R. 2352 includes a number of provisions designed to
update and to improve the Small Business Administration's
entrepreneurial development programs.
XVI. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
Sec. 4. (a) * * *
(b)(1) The management of the Administration shall be vested
in an Administrator who shall be appointed from civilian life
by the President, by and with the advice and consent of the
Senate, and who shall be a person of outstanding qualifications
known to be familiar and sympathetic with small business needs
and problems. The Administrator shall not engage in any other
business, vocation, or employment than that of serving as
Administrator. In carrying out the programs administered by the
Small Business Administration including its lending and
guaranteeing functions, the Administrator shall not
discriminate on the basis of sex or marital status against any
person or small business concern applying for or receiving
assistance from the Small Business Administration, and the
Small Business Administration shall give special consideration
to veterans of the Armed Forces of the United States and their
survivors or dependents. The President also may appoint a
Deputy Administrator, by and with the advice and consent of the
Senate. The Administrator is authorized to appoint [five
Associate Administrators] six Associate Administrators
(including the Associate Administrator specified in section 201
of the Small Business Investment Act of 1958) to assist in the
execution of the functions vested in the Administration. One
such Associate Administrator shall be the Associate
Administrator for Native American Affairs, who shall administer
the Office of Native American Affairs established under section
45. One such Associate Administrator shall be the Associate
Administrator for Veterans Business Development, who shall
administer the Office of Veterans Business Development
established under section 32. One of the Associate
Administrators shall be designated at the time of his
appointment as the Associate Administrator for Minority Small
Business and Capital Ownership Development who shall be an
employee in the competitive service or in the Senior Executive
Service and a career appointee and shall be responsible to the
Administrator for the formulation and execution of the policies
and programs under sections 7(j) and 8(a) of this Act which
provide assistance to minority small business concerns.
* * * * * * *
(g) Management and Direction.--
(1) Plan for entrepreneurial development and job
creation strategy.--The Administrator shall develop and
submit to Congress a plan, in consultation with a
representative from each of the agency's
entrepreneurial development programs, for using the
Small Business Administration's entrepreneurial
development programs as a catalyst for job creation for
fiscal years 2009 and 2010. The plan shall include the
Administration's plan for drawing on existing programs,
including Small Business Development Centers, Women's
Business Centers, SCORE, Veterans Business Centers,
Native American Outreach, and other appropriate
programs. The Administrator shall identify a strategy
for each Administration region to create or retain jobs
through Administration programs. The Administrator
shall identify, in consultation with appropriate
personnel from entrepreneurial development programs,
performance measures and criteria, including job
creation, job retention, and job retraining goals, to
evaluate the success of the Administration's actions
regarding these efforts.
(2) Data collection process.--The Administrator
shall, after notice and opportunity for comment,
promulgate a rule to develop and implement a consistent
data collection process to cover all entrepreneurial
development programs. Such data collection process
shall include data relating to job creation,
performance, and any other data determined appropriate
by the Administrator with respect to the
Administration's entrepreneurial development programs.
(3) Coordination and alignment of sba entrepreneurial
development programs.--The Administrator shall submit
annually to Congress, in consultation with other
Federal departments and agencies as appropriate, a
report on opportunities to foster coordination, limit
duplication, and improve program delivery for Federal
entrepreneurial development programs.
(4) Database of entrepreneurial development service
providers.--The Administrator shall, after a period of
60 days for public comment, establish a database of
providers of entrepreneurial development services and,
make such database available through the
Administration's Web site. The database shall be
searchable by industry, geography, and service
required.
(5) Community specialist.--The Administrator shall
designate not less than one staff member in each
Administration district office as a community
specialist who has as their full-time responsibility
working with local entrepreneurial development service
providers to increase coordination with Federal
resources. The Administrator shall develop benchmarks
for measuring the performance of community specialists
under this subsection.
(6) Entrepreneurial development portal.--The
Administrator shall publish a design for a Web-based
portal to provide comprehensive information on the
Administration's entrepreneurial development programs.
After a period of 60 days for public comment, the
Administrator shall establish such portal and--
(A) integrate under one Web portal, Small
Business Development Centers, Women's Business
Centers, SCORE, Veterans Business Centers, the
Administration's distance learning program, and
other programs as appropriate;
(B) revise the Administration's primary Web
site so that the Web portal described in
subparagraph (A) is available as a link on the
main Web page of the Web site;
(C) increase consumer-oriented content on the
Administration's Web site and focus on
promoting access to business solutions,
including marketing, financing, and human
resources planning;
(D) establish relevant Web content aggregated
by industry segment, stage of business
development, level of need, and include
referral links to appropriate Administration
services, including financing, training and
counseling, and procurement assistance; and
(E) provide style guidelines and links for
visitors to the Administration's Web site to be
able to comment on and evaluate the materials
in terms of their usefulness.
(7) Pilot programs.--The Administrator may not
conduct any pilot program for a period of greater than
3 years if the program conflicts with, or uses the
resources of, any of the entrepreneurial development
programs authorized under section 8(b)(1)(B), 21, 29,
32, or any other provision of this Act.
* * * * * * *
Sec. 7. (a) * * *
* * * * * * *
(m) Microloan Program.--
(1) * * *
* * * * * * *
(3) Loans to intermediaries.--
(A) Intermediary applications.--(i) In
general.--As part of its application for a
loan, each intermediary shall submit a
description to the Administration of--
(I) * * *
* * * * * * *
(VIII) any plan to involve other
technical assistance providers (such as
counselors from [the Service Corps of
Retired Executives] SCORE or small
business development centers) or
private sector lenders in assisting
selected business concerns.
* * * * * * *
Sec. 8. (a) * * *
(b) It shall also be the duty of the Administration and it is
hereby empowered, whenever it determines such action is
necessary--
(1)(A) * * *
(B)(i) To establish, conduct, and publicize, and to
recruit, select, and train volunteers for (and to enter
into contracts, grants, or cooperative agreements
therefor), volunteer programs, including a Service
Corps of Retired [Executives (SCORE) and an Active
Corps of Executive (ACE)] Executives (in this Act
referred to as ``SCORE'') for the purposes of section
8(b)(1)(A) of this Act. To facilitate the
implementation of such volunteer programs the
Administration shall maintain at its headquarters and
pay the salaries, benefits, and expenses of a volunteer
and professional staff to manage and oversee the
program. Any such payments made pursuant to this
subparagraph shall be effective only to such extent or
in such amounts as are provided in advance in
appropriation Acts. Notwithstanding any other provision
of law, SCORE may solicit cash and in-kind
contributions from the private sector to be used to
carry out its functions under this Act, and may use
payments made by the Administration pursuant to this
subparagraph for such solicitation and the management
of the contributions received.
(ii) The Administrator shall ensure that SCORE,
established under this subparagraph, carries out a plan
to increase the proportion of mentors who are from
socially or economically disadvantaged backgrounds and,
on an annual basis, reports to the Administrator on the
implementation of this subparagraph.
(iii) The Administrator shall ensure that SCORE,
established under this subparagraph, establishes
benchmarks for use in evaluating the performance of its
activities and the performance of its volunteers. The
benchmarks shall include benchmarks relating to the
demographic characteristics and the geographic
characteristics of persons assisted by SCORE,
benchmarks relating to the hours spent mentoring by
volunteers, and benchmarks relating to the performance
of the persons assisted by SCORE. SCORE shall report,
on an annual basis, to the Administrator the extent to
which the benchmarks established under this clause are
being attained.
(iv) The Administrator shall ensure that SCORE,
established under this subparagraph, establishes a
mentoring program for small business concerns that
provides one-on-one advice to small business concerns
from qualified counselors. For purposes of this clause,
qualified counselors are counselors with at least 10
years experience in the industry sector or area of
responsibility of the small business concern seeking
advice.
(v) The Administrator shall carry out a networking
program through SCORE, established under this
subparagraph, that provides small business concerns
with the opportunity to make business contacts in their
industry or geographic region.
* * * * * * *
Sec. 20. (a) * * *
* * * * * * *
(d) Fiscal Year 2005.--
(1) Program levels.--The following program levels are
authorized for fiscal year 2005:
(A) * * *
* * * * * * *
(E) The Administration is authorized to make
grants or enter into cooperative agreements for
a total amount of $7,000,000 for [the Service
Corps of Retired Executives program] SCORE
authorized by section 8(b)(1).
* * * * * * *
(e) Fiscal Year 2006.--
(1) Program levels.--The following program levels are
authorized for fiscal year 2006:
(A) * * *
* * * * * * *
(E) The Administration is authorized to make
grants or enter into cooperative agreements for
a total amount of $7,000,000 for [the Service
Corps of Retired Executives program] SCORE
authorized by section 8(b)(1).
* * * * * * *
(f) Women's Business Centers.--There is authorized to be
appropriated for purposes of grants under section 29 to women's
business centers not more than $20,000,000 in fiscal year 2010
and not more than $22,000,000 in fiscal year 2011.
(g) Authorization of Appropriations for SCORE.--There is
authorized to be appropriated $7,000,000 for SCORE under
section 8(b)(1) for each of the fiscal years 2010 and 2011.
(h) Small Business Development Centers.--There is authorized
to be appropriated to carry out the Small Business Development
Center Program under section 21 $150,000,000 for fiscal year
2010 and $160,000,000 for fiscal year 2011.
* * * * * * *
Sec. 21. (a)(1) The Administration is authorized to make
grants (including contracts and cooperative agreements) to any
State government or any agency thereof, any regional entity,
any State-chartered development, credit or finance corporation,
any women's business center operating pursuant to section 29,
any public or private institution of higher education,
including but not limited to any land-grant college or
university, any college or school of business, engineering,
commerce, or agriculture, community college or junior college,
or to any entity formed by two or more of the above entities
(herein referred to as ``applicants'') to assist in
establishing small business development centers and to any such
labor for: small business oriented employment or natural
resources development programs; studies, research, and
counseling concerning the managing, financing, and operation of
small business enterprises, management and technical assistance
regarding small business participation in international
markets, export promotion and technology transfer; delivery or
distribution of such services and information; and providing
access to business analysts who can refer small business
concerns to available experts: Provided, That after December
31, 1990, the Administration shall not make a grant to any
applicant other than an accredited institution of higher
education [or a women's business center operating pursuant to
section 29] as a Small Business Development Center unless the
applicant was receiving a grant (including a contract or
cooperative agreement) on such date. The Administration shall
require any applicant for a small business development center
grant with performance commencing on or after January 1, 1992
to have its own budget and to primarily utilize accredited
institutions of higher education [and women's business centers
operating pursuant to section 29] to provide services to the
small business community. The term of such grants shall be made
on a calendar year basis or to coincide with the Federal fiscal
year. In this paragraph, the term ``accredited institution of
higher education'' means an institution that is accredited as
described in section 101(a)(5) of the Higher Education Act of
1965 (20 U.S.C. 1001(a)(5)).
* * * * * * *
(3) The Small Business Development Center Program shall be
under the general management and oversight of the
Administration for the delivery of programs and services to the
small business community. Such programs and services shall be
jointly developed, negotiated, and mutually agreed upon, with
full participation of both parties, pursuant to an executed
cooperative agreement between the Small Business Development
Center applicant and the Administration.
(A) Small business development centers are authorized to form
an association to pursue matters of common concern. If more
than a majority of the small business development centers which
are operating pursuant to agreements with the Administration
are members of such an association, the Administration is
authorized and directed to recognize the existence and
activities of such an association and to consult with it and
develop documents (i) announcing the annual scope of activities
pursuant to this section, (ii) requesting proposals to deliver
assistance as provided in this section and (iii) governing the
general operations and administration of the Small Business
Development Center Program, specifically including the
development of regulations and a uniform negotiated mutually
agreed to cooperative agreement for use on an annual basis when
entering into individual negotiated agreements with small
business development centers.
* * * * * * *
(4) Small business development center program level.--
(A) * * *
(B) Restriction.--The matching amount described in
subparagraph (A) shall not include any indirect costs
or in-kind contributions derived from any Federal
program and shall not include any funds obtained
through the assessment of fees to small business
clients.
(C) Funding formula.--
(i) * * *
* * * * * * *
(v) Use of amounts.--
[(I) In general.--Of the amounts made
available in any fiscal year to carry
out this section--
[(aa) not more than $500,000
may be used by the
Administration to pay expenses
enumerated in subparagraphs (B)
through (D) of section
20(a)(1); and
[(bb) not more than $500,000
may be used by the
Administration to pay the
examination expenses enumerated
in section 20(a)(1)(E).]
(I) In general.--Of the amounts made
available in any fiscal year to carry
out this section, not more than
$500,000 may be used by the
Administration to pay expenses
enumerated in subparagraphs (B) through
(D) of section 20(a)(1).
* * * * * * *
(viii) Limitation.--From the funds
appropriated pursuant to clause (vii), the
Administration shall reserve not less than
$1,000,000 in each fiscal year to develop
portable assistance for startup and
sustainability non-matching grant programs to
be conducted by eligible small business
development centers in communities that are
economically challenged as a result of a
business or government facility down sizing or
closing, which has resulted in the loss of jobs
or small business instability. A non-matching
grant under this clause shall not exceed
$100,000, and shall be used for small business
development center personnel expenses and
related small business programs and services.
In the event of a disaster, the dollar
limitation in the preceding sentence shall not
apply.
* * * * * * *
(7) Privacy requirements.--
(A) In general.--A small business development center,
consortium of small business development centers, or
contractor or agent of a small business development
center may not disclose the name, address, or telephone
number of any individual or small business concern
receiving assistance under this section, or the content
of any consultation with such an individual or small
business concern, without the consent of such
individual or small business concern, unless--
(i) * * *
* * * * * * *
(8) Additional grant to assist indian tribe members,
alaska natives, and native hawaiians.--
(A) In general.--Any applicant in an eligible
State that is funded by the Administration as a
Small Business Development Center may apply for
an additional grant to be used solely to
provide services described in subsection (c)(3)
to assist with outreach, development, and
enhancement on Indian lands of small business
startups and expansions owned by Indian tribe
members, Alaska Natives, and Native Hawaiians.
(B) Eligible states.--For purposes of
subparagraph (A), an eligible State is a State
that has a combined population of Indian tribe
members, Alaska Natives, and Native Hawaiians
that comprises at least 1 percent of the
State's total population, as shown by the
latest available census.
(C) Grant applications.--An applicant for a
grant under subparagraph (A) shall submit to
the Administration an application that is in
such form as the Administration may require.
The application shall include information
regarding the applicant's goals and objectives
for the services to be provided using the
grant, including--
(i) the capability of the applicant
to provide training and services to a
representative number of Indian tribe
members, Alaska Natives, and Native
Hawaiians;
(ii) the location of the Small
Business Development Center site
proposed by the applicant;
(iii) the required amount of grant
funding needed by the applicant to
implement the program; and
(iv) the extent to which the
applicant has consulted with local
tribal councils.
(D) Applicability of grant requirements.--An
applicant for a grant under subparagraph (A)
shall comply with all of the requirements of
this section, except that the matching funds
requirements under paragraph (4)(A) shall not
apply.
(E) Maximum amount of grants.--No applicant
may receive more than $300,000 in grants under
this paragraph for any fiscal year.
(F) Regulations.--After providing notice and
an opportunity for comment and after consulting
with the Association recognized by the
Administration pursuant to paragraph (3)(A)
(but not later than 180 days after the date of
enactment of this paragraph), the
Administration shall issue final regulations to
carry out this paragraph, including regulations
that establish--
(i) standards relating to
educational, technical, and support
services to be provided by Small
Business Development Centers receiving
assistance under this paragraph; and
(ii) standards relating to any work
plan that the Administration may
require a Small Business Development
Center receiving assistance under this
paragraph to develop.
(G) Advice of local tribal organizations.--A
Small Business Development Center receiving a
grant under this paragraph shall request the
advice of a tribal organization on how best to
provide assistance to Indian tribe members,
Alaska Natives, and Native Hawaiians and where
to locate satellite centers to provide such
assistance.
(H) Definitions.--In this paragraph, the
following definitions apply:
(i) Indian lands.--The term ``Indian
lands'' has the meaning given the term
``Indian country'' in section 1151 of
title 18, United States Code, the
meaning given the term ``Indian
reservation'' in section 151.2 of title
25, Code of Federal Regulations (as in
effect on the date of enactment of this
paragraph), and the meaning given the
term ``reservation'' in section 4 of
the Indian Child Welfare Act of 1978
(25 U.S.C. 1903).
(ii) Indian tribe.--The term ``Indian
tribe'' means any band, nation, or
organized group or community of Indians
located in the contiguous United
States, and the Metlakatla Indian
Community, whose members are recognized
as eligible for the services provided
to Indians by the Secretary of the
Interior because of their status as
Indians.
(iii) Indian tribe member.--The term
``Indian tribe member'' means a member
of an Indian tribe (other than an
Alaska Native).
(iv) Alaska native.--The term
``Alaska Native'' has the meaning given
the term ``Native'' in section 3(b) of
the Alaska Native Claims Settlement Act
(43 U.S.C. 1602(b)).
(v) Native hawaiian.--The term
``Native Hawaiian'' means any
individual who is--
(I) a citizen of the United
States; and
(II) a descendant of the
aboriginal people, who prior to
1778, occupied and exercised
sovereignty in the area that
now constitutes the State of
Hawaii.
(vi) Tribal organization.--The term
``tribal organization'' has the meaning
given that term in section 4(l) of the
Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(l)).
(I) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this paragraph $7,000,000 for each of fiscal
years 2010 and 2011.
(J) Funding limitations.--
(i) Nonapplicability of certain
limitations.--Funding under this
paragraph shall be in addition to the
dollar program limitations specified in
paragraph (4).
(ii) Limitation on use of funds.--The
Administration may carry out this
paragraph only with amounts
appropriated in advance specifically to
carry out this paragraph.
(b)(1) * * *
* * * * * * *
(4) Limitation on distribution to small business development
centers.--
(A) In general.--Except as otherwise provided in this
paragraph, the Administration shall not distribute
funds to a Small Business Development Center if the
State in which the Small Business Development Center is
located is served by more than one Small Business
Development Center.
(B) Unavailability exception.--The Administration may
distribute funds to a maximum of 2 Small Business
Development Centers in any State if no applicant has
applied to serve the entire State.
(C) Grandfather clause.--The limitations in this
paragraph shall not apply to any State in which more
than one Small Business Development Center received
funding prior to January 1, 2007.
(D) Definition.--For the purposes of this paragraph,
the term ``Small Business Development Center'' means
the entity selected by the Administration to receive
funds pursuant to the funding formula set forth in
subsection (a)(4), without regard to the number of
sites for service delivery such entity establishes or
funds.
(c)(1) * * *
(2) A small business development center shall provide
services as close as possible to small businesses by providing
extension services and utilizing satellite locations when
necessary. The facilities and staff of each Small Business
Development Center shall be located in such places as to
provide maximum accessibility and benefits to the small
businesses which the center is intended to serve. To the extent
possible, it also shall make full use of other Federal and
State government programs that are concerned with aiding small
business. A small business development center shall have--
(A) a full-time staff, the hiring of which shall be
at the sole discretion of the center without the need
for input or approval from any officer or employee of
the Administration, including a full-time director who
shall have the authority to make expenditures under the
center's budget and who shall manage the program
activities;
* * * * * * *
(o) Access to Credit and Capital Program.--
(1) In general.--The Administration shall establish a
grant program for small business development centers in
accordance with this subsection. To be eligible for the
program, a small business development center must be in
good standing and comply with the other requirements of
this section. Funds made available through the program
shall be used to--
(A) develop specialized programs to assist
local small business concerns in securing
capital and repairing damaged credit;
(B) provide informational seminars on
securing credit and loans;
(C) provide one-on-one counseling with
potential borrowers to improve financial
presentations to lenders; and
(D) facilitate borrowers' access to non-
traditional financing sources, as well as
traditional lending sources.
(2) Award size limit.--The Administration may not
award an entity more than $300,000 in grant funds under
this subsection.
(3) Authority.--Subject to amounts approved in
advance in appropriations Acts and separate from
amounts approved to carry out the program established
in subsection (a)(1), the Administration may make
grants or enter into cooperative agreements to carry
out this subsection.
(4) Authorization.--There is authorized to be
appropriated not more than $2,500,000 for the purposes
of carrying out this subsection for each of the fiscal
years 2010 and 2011.
(p) Procurement Training and Assistance.--
(1) In general.--The Administration shall establish a
grant program for small business development centers in
accordance with this subsection. To be eligible for the
program, a small business development center must be in
good standing and comply with the other requirements of
this section. Funds made available through the program
shall be used to--
(A) work with local agencies to identify
contracts that are suitable for local small
business concerns;
(B) prepare small businesses to be ready as
subcontractors and prime contractors for
contracts made available under the American
Recovery and Reinvestment Act of 2009 (Public
Law 111-5) through training and business
advisement, particularly in the construction
trades; and
(C) provide technical assistance regarding
the Federal procurement process, including
assisting small business concerns to comply
with federal regulations and bonding
requirements.
(2) Award size limit.--The Administration may not
award an entity more than $300,000 in grant funds under
this subsection.
(3) Authority.--Subject to amounts approved in
advance in appropriations Acts and separate from
amounts approved to carry out the program established
in subsection (a)(1), the Administration may make
grants or enter into cooperative agreements to carry
out this subsection.
(4) Authorization of appropriations.--There is
authorized to be appropriated not more than $2,500,000
for the purposes of carrying out this subsection for
each of the fiscal years 2010 and 2011.
(q) Green Entrepreneurs Training Program.--
(1) In general.--The Administration shall establish a
grant program for small business development centers in
accordance with this subsection. To be eligible for the
program, a small business development center must be in
good standing and comply with the other requirements of
this section. Funds made available through the program
shall be used to--
(A) provide education classes and one-on-one
instruction in starting a business in the
fields of energy efficiency, green technology,
or clean technology;
(B) coordinate such classes and instruction,
to the extent practicable, with local community
colleges and local professional trade
associations; and
(C) assist and provide technical counseling
to individuals seeking to start a business in
the fields of energy efficiency, green
technology, or clean technology.
(2) Award size limit.--The Administration may not
award an entity more than $300,000 in grant funds under
this subsection.
(3) Authority.--Subject to amounts approved in
advance in appropriations Acts and separate from
amounts approved to carry out the program established
in subsection (a)(1), the Administration may make
grants or enter into cooperative agreements to carry
out this subsection.
(4) Authorization of appropriations.--There is
authorized to be appropriated not more than $2,500,000
for the purposes of carrying out this subsection for
each of the fiscal years 2010 and 2011.
(r) Main Street Stabilization.--
(1) In general.--The Administration shall establish a
grant program for small business development centers in
accordance with this subsection. To be eligible for the
program, a small business development center must be in
good standing and comply with the other requirements of
this section. Funds made available through the program
shall be used to--
(A) establish a statewide small business
helpline within every State and United States
territory to provide immediate expert
information and assistance to small business
concerns;
(B) develop a portfolio of online survival
and growth tools and resources that struggling
small business concerns can utilize through the
Internet;
(C) develop business advisory capacity to
provide expert consulting and education to
assist small businesses at-risk of failure and
to, in areas of high demand, shorten the
response time of small business development
centers, and, in rural areas, support added
outreach in remote communities;
(D) deploy additional resources to help
specific industry sectors with a high presence
of small business concerns, which shall be
targeted toward clusters of small businesses
with similar needs and build upon best
practices from earlier assistance;
(E) develop a formal listing of financing
options for small business capital access; and
(F) deliver services that help dislocated
workers start new businesses.
(2) Award size limit.--The Administration may not
award an entity more than $250,000 in grant funds under
this subsection.
(3) Authority.--Subject to amounts approved in
advance in appropriations Acts and separate from
amounts approved to carry out the program established
in subsection (a)(1), the Administration may make
grants or enter into cooperative agreements to carry
out this subsection.
(4) Authorization.--There is authorized to be
appropriated not more than $2,500,000 for the purposes
of carrying out this subsection for each of the fiscal
years 2010 and 2011.
* * * * * * *
SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.
(a) * * *
[(b) Authority.--The Administration may provide financial
assistance to private nonprofit organizations to conduct 5-year
projects for the benefit of small business concerns owned and
controlled by women. The projects shall provide--
[(1) financial assistance, including training and
counseling in how to apply for and secure business
credit and investment capital, preparing and presenting
financial statements, and managing cash flow and other
financial operations of a business concern;
[(2) management assistance, including training and
counseling in how to plan, organize, staff, direct, and
control each major activity and function of a small
business concern; and
[(3) marketing assistance, including training and
counseling in identifying and segmenting domestic and
international market opportunities, preparing and
executing marketing plans, developing pricing
strategies, locating contract opportunities,
negotiating contracts, and utilizing varying public
relations and advertising techniques.]
(b) Authority.--
(1) In general.--The Administrator may provide
financial assistance to private nonprofit organizations
to conduct projects for the benefit of small business
concerns owned and controlled by women. The projects
shall provide--
(A) financial assistance, including training
and counseling in how to apply for and secure
business credit and investment capital,
preparing and presenting financial statements,
and managing cash flow and other financial
operations of a business concern;
(B) management assistance, including training
and counseling in how to plan, organize, staff,
direct, and control each major activity and
function of a small business concern; and
(C) marketing assistance, including training
and counseling in identifying and segmenting
domestic and international market
opportunities, preparing and executing
marketing plans, developing pricing strategies,
locating contract opportunities, negotiating
contracts, and utilizing varying public
relations and advertising techniques.
(2) Tiers.--The Administrator shall provide
assistance under paragraph (1) in 3 tiers of assistance
as follows:
(A) The first tier shall be to conduct a 5-
year project in a situation where a project has
not previously been conducted. Such a project
shall be in a total amount of not more than
$150,000 per year.
(B) The second tier shall be to conduct a 3-
year project in a situation where a first-tier
project is being completed. Such a project
shall be in a total amount of not more than
$100,000 per year.
(C) The third tier shall be to conduct a 3-
year project in a situation where a second-tier
project is being completed. Such a project
shall be in a total amount of not more than
$100,000 per year. Third-tier grants shall be
renewable subject to established eligibility
criteria as well as criteria in subsection
(b)(4).
(3) Allocation of funds.--Of the amounts made
available for assistance under this subsection, the
Administrator shall allocate--
(A) at least 40 percent for first-tier
projects under paragraph (2)(A);
(B) 20 percent for second-tier projects under
paragraph (2)(B); and
(C) the remainder for third-tier projects
under paragraph (2)(C).
(4) Benchmarks for third-tier projects.--In awarding
third-tier projects under paragraph (2)(C), the
Administrator shall use benchmarks based on socio-
economic factors in the community and on the
performance of the applicant. The benchmarks shall
include--
(A) the total number of women served by the
project;
(B) the proportion of low income women and
socio-economic distribution of clients served
by the project;
(C) the proportion of individuals in the
community that are socially or economically
disadvantaged (based on median income);
(D) the future fund-raising and service
coordination plans;
(E) the diversity of services provided; and
(F) geographic distribution within and across
the 10 regions of the Small Business
Administration.
(c) Conditions of Participation.--
(1) Non-federal contributions.--As a condition of
receiving financial assistance authorized by this
section, the recipient organization shall agree to
obtain, after its application has been approved and
notice of award has been issued, cash contributions
from non-Federal sources as follows:
[(A) in the first and second years, 1 non-
Federal dollar for each 2 Federal dollars; and
[(B) in the third, fourth, and fifth years, 1
non-Federal dollar for each Federal dollar.]
(A) For the first and second years of the
project, 1 non-Federal dollar for each 2
Federal dollars.
(B) Each year after the second year of the
project--
(i) 1 non-Federal dollar for each
Federal dollar; or
(ii) if the center is in a community
at least 50 percent of the population
of which is below the median income for
the State or United States territory in
which the center is located, 1 non-
Federal dollar for each 2 Federal
dollars.
* * * * * * *
(h) Program Examination.--
(1) In general.--The Administration shall--
(A) develop and implement an annual
programmatic and financial examination of each
women's business center established pursuant to
this section, pursuant to which each such
center shall provide to the Administration--
(i) * * *
(ii) documentation regarding the
amount of matching assistance from non-
Federal sources obtained and expended
by the center during the preceding year
in order to meet the requirements of
subsection (c) and, with respect to any
in-kind contributions described in
subsection (c)(2) that were used to
satisfy the requirements of subsection
(c), verification of the existence and
valuation of those contributions; [and]
(B) establish performance measures, taking
into account the demographic differences of
populations served by women's business centers,
which measures shall include--
(i) outcome-based measures of the
amount of job creation or economic
activity generated in the local
community as a result of efforts made
and services provided by each women's
business center, and
(ii) service-based measures of the
amount of services provided to
individuals and small business concerns
served by each women's business center;
(C) require each women's business center to
submit an annual plan for the next year that
includes the center's funding sources and
amounts, strategies for increasing outreach to
women-owned businesses, strategies for
increasing job growth in the community, and
other content as determined by the
Administrator; and
[(B)] (D) analyze the results of each such
examination and, based on that analysis, make a
determination regarding the programmatic and
financial viability of each women's business
center.
The Administrator's evaluation of each women's business
center as required by this subsection shall be in part
based on the performance measures under subparagraphs
(B) and (C). These measures and the Administrator's
evaluations thereof shall be made publicly available.
* * * * * * *
(o) Notification of Grants; Publication of Grant Amounts.--
The Administrator shall disburse funds to a women's business
center not later than one month after the center's application
is approved under this section. At the end of each fiscal year
the Administrator (acting through the Office of Women's
Business ownership) shall publish on the Administration's
website a report setting forth the total amount of the grants
made under this Act to each women's business center in the
fiscal year for which the report is issued, the total amount of
such grants made in each prior fiscal year to each such center,
and the total amount of private matching funds provided by each
such center over the lifetime of the center.
(p) Communications.--The Administrator shall establish, by
rule, a standardized process to communicate with women's
business centers regarding program administration matters,
including reimbursement, regulatory matters, and programmatic
changes. The Administrator shall notify each women's business
center of the opportunity for notice and comment on the
proposed rule.
* * * * * * *
SEC. 32. VETERANS PROGRAMS.
(a) * * *
* * * * * * *
(c) Interagency Task Force.--
(1) * * *
* * * * * * *
(4) Report.--The Administrator shall submit to
Congress biannually a report on the appointments made
to and activities of the task force.
* * * * * * *
(f) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section (other than
subsections (g), (h), and (i))--
(1) * * *
* * * * * * *
(g) Veterans Business Center Program.--
(1) In general.--The Administrator shall establish a
Veterans Business Center program within the
Administration to provide entrepreneurial training and
counseling to veterans in accordance with this
subsection.
(2) Director.--The Administrator shall appoint a
Director of the Veterans Business Center program, who
shall implement and oversee such program and who shall
report directly to the Associate Administrator for
Veterans Business Development.
(3) Designation of veterans business centers.--The
Director shall establish by regulation an application,
review, and notification process to designate entities
as veterans business centers for purposes of this
section. The Director shall make publicly known the
designation of an entity as a veterans business center
and the award of a grant to such center under this
subsection.
(4) Funding for veterans business centers.--
(A) Initial grants.--The Director is
authorized to make a grant (hereinafter in this
subsection referred to as an ``initial grant'')
to each veterans business center each year for
not more than 5 years in the amount of
$150,000.
(B) Growth funding grants.--After a veterans
business center has received 5 years of initial
grants under subparagraph (A), the Director is
authorized to make a grant (hereinafter in this
subsection referred to as a ``growth funding
grant'') to such center each year for not more
than 3 years in the amount of $100,000. After
such center has received 3 years of growth
funding grants, the Director shall require such
center to meet performance benchmarks
established by the Director to be eligible for
growth funding grants in subsequent years.
(5) Center responsibilities.--Each veterans business
center receiving a grant under this subsection shall
use the funds primarily on veteran entrepreneurial
development, counseling of veteran-owned small
businesses through one-on-one instruction and classes,
and providing government procurement assistance to
veterans.
(6) Matching funds.--Each veterans business center
receiving a grant under this subsection shall be
required to provide a non-Federal match of 50 percent
of the Federal funds such center receives under this
subsection. The Director may issue to a veterans
business center, upon request, a waiver from all or a
portion of such matching requirement upon a
determination of hardship.
(7) Targeted areas.--The Director shall give priority
to applications for designations and grants under this
subsection that will establish a veterans business
center in a geographic area, as determined by the
Director, that is not currently served by a veterans
business center and in which--
(A) the population of veterans exceeds the
national median of such measure; or
(B) the population of veterans of Operation
Iraqi Freedom or Operation Enduring Freedom
exceeds the national median of such measure.
(8) Training program.--The Director shall develop and
implement, directly or by contract, an annual training
program for the staff and personnel of designated
veterans business centers to provide education,
support, and information on best practices with respect
to the establishment and operation of such centers. The
Director shall develop such training program in
consultation with veterans business centers, the
interagency task force established under subsection
(c), and veterans service organizations.
(9) Inclusion of other organizations in program.--
Upon the date of the enactment of this subsection, each
Veterans Business Outreach Center established by the
Administrator under the authority of section 8(b)(17)
and each center that received funds during fiscal year
2006 from the National Veterans Business Development
Corporation established under section 33 and that
remains in operation shall be treated as designated as
a veterans business center for purposes of this
subsection and shall be eligible for grants under this
subsection.
(10) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $10,000,000 for fiscal year 2010 and
$12,000,000 for fiscal year 2011.
(h) Additional Grants Available to Veterans Business
Centers.--
(1) Access to capital grant program.--
(A) In general.--The Director of the Veterans
Business Center program shall establish a grant
program under which the Director is authorized
to make, to veterans business centers
designated under subsection (g), grants for the
following:
(i) Developing specialized programs
to assist veteran-owned small
businesses to secure capital and repair
damaged credit.
(ii) Providing informational seminars
on securing loans to veteran-owned
small businesses.
(iii) Providing one-on-one counseling
to veteran-owned small businesses to
improve the financial presentations of
such businesses to lenders.
(iv) Facilitating the access of
veteran-owned small businesses to both
traditional and non-traditional
financing sources.
(B) Award size.--The Director may not award a
veterans business center more than $75,000 in
grants under this paragraph.
(C) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this paragraph $1,500,000 for each of fiscal
years 2010 and 2011.
(2) Procurement assistance grant program.--
(A) In general.--The Director shall establish
a grant program under which the Director is
authorized to make, to veterans business
centers designated under subsection (g), grants
for the following:
(i) Assisting veteran-owned small
businesses to identify contracts that
are suitable to such businesses.
(ii) Preparing veteran-owned small
businesses to be ready as
subcontractors and prime contractors
for contracts made available through
the American Recovery and Reinvestment
Act of 2009 (Public Law 111-5) through
training and business advisement,
particularly with respect to the
construction trades.
(iii) Providing veteran-owned small
businesses technical assistance with
respect to the Federal procurement
process, including assisting such
businesses to comply with Federal
regulations and bonding requirements.
(B) Award size.--The Director may not award a
veterans business center more than $75,000 in
grants under this paragraph.
(C) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this paragraph $1,500,000 for each of fiscal
years 2010 and 2011.
(3) Service-disabled veteran-owned small business
grant program.--
(A) In general.--The Director shall establish
a grant program under which the Director is
authorized to make, to veterans business
centers designated under subsection (g), grants
for the following:
(i) Developing outreach programs for
service-disabled veterans with respect
to the benefits of self-employment.
(ii) Providing tailored training to
service-disabled veterans with respect
to business plan development,
marketing, budgeting, accounting, and
merchandising.
(iii) Assisting service-disabled
veteran-owned small businesses to
locate and secure business
opportunities.
(B) Award size.--The Director may not award a
veterans business center more than $75,000 in
grants under this paragraph.
(C) Authorization of appropriations.--There
is authorized to be appropriated to carry out
this paragraph $1,500,000 for each of fiscal
years 2010 and 2011.
(i) Veterans Entrepreneurial Development Summit.--
(1) In general.--The Director of the Veterans
Business Center program is authorized to carry out an
event, once every two years, for the purpose of
providing networking opportunities, outreach,
education, training, and support to veterans business
centers funded under this section, veteran-owned small
businesses, veterans service organizations, and other
entities as determined appropriate for inclusion by the
Director.
(2) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $450,000 for fiscal years 2010 and 2011.
(j) Inclusion of Surviving Spouses.--For purposes of
subsections (g), (h), and (i) the following apply:
(1) The term ``veteran'' includes a surviving spouse
of the following:
(A) A member of the Armed Forces, including a
reserve component thereof.
(B) A veteran.
(2) The term ``veteran-owned small business''
includes a small business owned by a surviving spouse
of the following:
(A) A member of the Armed Forces, including a
reserve component thereof.
(B) A veteran.
(k) Inclusion of Reserve Components.--For purposes of
subsections (g), (h), and (i) the following apply:
(1) The term ``veteran'' includes a member of the
reserve components of the armed forces as specified in
section 10101 of title 10, United States Code.
(2) The term ``veteran-owned small business''
includes a small business owned by a member of the
reserve components of the armed forces as specified in
section 10101 of title 10, United States Code.
SEC. 33. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION.
(a) * * *
(b) Purposes of the Corporation.--The purposes of the
Corporation shall be--
(1) * * *
(2) to assist veterans, including service-disabled
veterans, with the formation and expansion of small
business concerns by working with and organizing public
and private resources, including those of the Small
Business Administration, the Department of Veterans
Affairs, the Department of Labor, the Department of
Commerce, the Department of Defense, the [Service Corps
of Retired Executives] SCORE (described in section
8(b)(1)(B) of this Act), the Small Business Development
Centers (described in section 21 of this Act), and the
business development staffs of each department and
agency of the United States.
* * * * * * *
SEC. 44. EDUCATING AND NETWORKING ENTREPRENEURS THROUGH TECHNOLOGY.
(a) Purpose.--The purpose of this section is to provide high-
quality distance learning and opportunities for the exchange of
peer-to-peer technical assistance through online networking to
potential and existing entrepreneurs through the use of
technology.
(b) Definition.--As used in this section, the term
``qualified third-party vendor'' means an entity with
experience in distance learning content or communications
technology, or both, with the ability to utilize on-line,
satellite, video-on-demand, and connected community-based
organizations to distribute and conduct distance learning and
establish an online network for use by potential and existing
entrepreneurs to facilitate the exchange of peer-to-peer
technical assistance related to entrepreneurship, credit
management, financial literacy, and Federal small business
development programs.
(c) Authority.--The Administrator shall contract with
qualified third-party vendors for entrepreneurial training
content, the development of communications technology that can
distribute content under this section throughout the United
States, and the establishment of a nationwide, online network
for the exchange of peer-to-peer technical assistance. The
Administrator shall contract with at least 2 qualified third-
party vendors to develop content.
(d) Content.--The Administrator shall ensure that the content
referred to in subsection (c) is timely and relevant to
entrepreneurial development and can be successfully
communicated remotely to an audience through the use of
technology. The Administrator shall, to the maximum extent
practicable, promote content that makes use of technologies
that allow for remote interaction by the content provider with
an audience. The Administrator shall ensure that the content is
catalogued and accessible to small businesses on-line or
through other remote technologies.
(e) Communications Technology.--The Administrator shall
ensure that the communications technology referred to in
subsection (c) is able to distribute content throughout all 50
States and the territories of the United States to small
business concerns, home-based businesses, Small Business
Development Centers, Women's Business Centers, Veterans
Business Centers, and the Small Business Administration and
network entrepreneurs throughout all 50 States and the
territories of the United States to allow for peer-to-peer
learning through the creation of a location online that allows
entrepreneurs and small business owners the opportunity to
exchange technical assistance through the sharing of
information. To the extent possible, the qualified third-party
vendor should deliver the content and facilitate the networking
using broadband technology.
(f) Reports to Congress.--The Administrator shall submit a
report to Congress 6 months after the date of the enactment of
this section containing an analysis of the Small Business
Administration's progress in implementing this section. The
Administrator shall submit a report to Congress one year after
the date of the enactment of this section and annually
thereafter containing the number of presentations made under
this section, the number of small businesses served under this
section, the extent to which this section resulted in the
establishment of new businesses, and feedback on the usefulness
of this medium in presenting entrepreneurial education and
facilitating the exchange of peer-to-peer technical assistance
throughout the United States.
(g) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $2,000,000 for each
of the fiscal years 2010 and 2011.
SEC. 45. OFFICE OF NATIVE AMERICAN AFFAIRS AND TRIBAL BUSINESS
INFORMATION CENTERS PROGRAM.
(a) Office of Native American Affairs.--
(1) Establishment.--There is established in the
Administration an Office of Native American Affairs
(hereinafter referred to in this subsection as the
``Office'').
(2) Associate administrator.--The Office shall be
administered by an Associate Administrator appointed
under section 4(b)(1).
(3) Responsibilities.--The Office shall have the
following responsibilities:
(A) Developing and implementing tools and
strategies to increase Native American
entrepreneurship.
(B) Expanding the access of Native American
entrepreneurs to business training, capital,
and Federal small business contracts.
(C) Expanding outreach to Native American
communities and aggressively marketing
entrepreneurial development services to such
communities.
(D) Representing the Administration with
respect to Native American economic development
matters.
(4) Coordination and oversight function.--The Office
shall provide oversight with respect to and assist the
implementation of all Administration initiatives
relating to Native American entrepreneurial
development.
(5) Authorization of appropriations.--To carry out
this subsection, there is authorized to be appropriated
to the Administrator $2,000,000 for each of fiscal
years 2010 and 2011.
(b) Tribal Business Information Centers Program.--
(1) Establishment.--The Administrator is authorized
to operate, alone or in coordination with other Federal
departments and agencies, a Tribal Business Information
Centers program that provides Native American
populations with business training and entrepreneurial
development assistance.
(2) Designation of centers.--The Administrator shall
designate entities as centers under the Tribal Business
Information Centers program.
(3) Administration support.--The Administrator may
contribute agency personnel and resources to the
centers designated under paragraph (2) to carry out
this subsection.
(4) Grant program.--The Administrator is authorized
to make grants of not more than $300,000 to centers
designated under paragraph (2) for the purpose of
providing Native Americans the following:
(A) Business workshops.
(B) Individualized business counseling.
(C) Entrepreneurial development training.
(D) Access to computer technology and other
resources to start or expand a business.
(5) Regulations.--The Administrator shall by
regulation establish a process for designating centers
under paragraph (2) and making the grants authorized
under paragraph (4).
(6) Definition of administrator.--In this subsection,
the term ``Administrator'' means the Administrator,
acting through the Associate Administrator
administering the Office of Native American Affairs.
(7) Authorization of appropriations.--To carry out
this subsection, there is authorized to be appropriated
to the Administrator $15,000,000 for fiscal year 2010
and $17,000,000 for fiscal year 2011.
(c) Definition of Native American.--The term ``Native
American'' means an Indian tribe member, Alaska Native, or
Native Hawaiian as such are defined in section 21(a)(8) of this
Act.
Sec. [44.] 46. All laws and parts of laws inconsistent with
this Act are hereby repealed to the extent of such
inconsistency.
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WOMEN'S BUSINESS OWNERSHIP ACT OF 1988
* * * * * * *
TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE
* * * * * * *
SEC. 409. STUDIES AND OTHER RESEARCH.
(a) In General.--The Council may conduct such studies and
other research relating to the award of Federal prime contracts
and subcontracts to women-owned businesses, to access to credit
and investment capital by women entrepreneurs, or to other
issues relating to women-owned businesses, as the Council
determines to be appropriate. Such studies shall include a
study on the impact of the 2008-2009 financial markets crisis
on women-owned businesses, and a study of the use of the Small
Business Administration's programs by women-owned businesses.
* * * * * * *
SEC. 410. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to
carry out this title $1,000,000, for each of fiscal years [2001
through 2003] 2010 and 2011, of which $550,000 shall be
available in each such fiscal year to carry out section 409.
* * * * * * *