Senate Report 111-36 - ENTREPRENEURIAL DEVELOPMENT ACT OF 2009

[Senate Report 111-36]
[From the U.S. Government Publishing Office]

Calendar No. 93
111th Congress Report
SENATE
1st Session 111-36

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ENTREPRENEURIAL DEVELOPMENT ACT OF 2009

_______

July 2, 2009.--Ordered to be printed

Filed, under authority of the order of the Senate of June 25, 2009

_______

Ms. Landrieu, from the Committee on Small Business and
Entrepreneurship, submitted the following

R E P O R T

[To accompany S. 1229]

The Senate Committee on Small Business and Entrepreneurship
to which was referred the bill (S. 1229) to reauthorize and
improve the entrepreneurial development programs of the Small
Business Administration, and for other purposes, having
considered the same, reports favorably thereon with an
amendment in the nature of a substitute and recommends that the
bill, as amended, do pass.

I. INTRODUCTION

The Entrepreneurial Development Act of 2009 (S. 1229) was
introduced by Senator Mary L. Landrieu, for herself and Senator
Snowe, on June 10, 2009. The bill reauthorizes the SBA's
entrepreneurial development programs for Fiscal Years 2010,
2011, and 2012. In addition to updating the SBA's existing
entrepreneurial development programs, the bill authorizes
several new program initiatives.
During markup of the bill, the Committee unanimously
adopted by voice vote, a bipartisan managers' substitute
amendment, offered by Chair Landrieu for herself and Ranking
Member Snowe. The bill was subsequently adopted as amended by a
roll call vote of 18-0.
S. 1229 is based on S. 1671, The Entrepreneurial
Development Act of 2007, which was incorporated into S. 2920,
the SBA Reauthorization and Improvements Act of 2008, which
itself was based upon S. 3778, the Small Business
Reauthorization and Improvements Act of 2006, a comprehensive
reauthorization bill developed under Senator Snowe, then the
Chair of the Committee. S. 1229 builds on the Committee's work
in the prior Congresses, making a few changes to the
provisions, including updating the language to provide
clarification on the definition and qualifications of eligible
Women's Business Centers. S. 1229 also calls for a National
Small Business Summit. Aside from technical changes, other
changes include extending privacy requirements to SCORE clients
and increasing from 9 to 10 the Members of the National Small
Business Development Center Advisory Board. Several new
entrepreneurial development initiatives were also included in
S. 1229, including new programs in support of veterans' and
Native American entrepreneurship, and a program to provide
information on health insurance options to small business
owners.

II. DESCRIPTION OF BILL

AUTHORIZATION OF PROGRAMS

TITLE I--REAUTHORIZATION

The bill reauthorizes the Small Business Development Center
(SBDC) program, SCORE and the Paul Coverdell Drug-Free
Workplace program for Fiscal Years 2010, 2011, and 2012.

TITLE II--WOMEN'S SMALL BUSINESS OWNERSHIP PROGRAMS

During the Committee's SBA reauthorization in 2003, the
Committee determined that the SBA's programs had not evolved to
meet the changing needs of women-owned small businesses.
Specifically, women business leaders expressed their
frustration with the agency, the lack of results from agency
programs and services for existing women business owners, the
inactivity of the National Women's Business Council and
Interagency Committee on Women's Business Enterprise, and the
lack of connection with the `real world problems' facing women
entrepreneurs on a day-to-day basis.
In response, Senator Snowe introduced the Women's Small
Business Programs Improvement Act (S. 1154), and Senators Snowe
and Kerry introduced the Women's Business Centers Preservation
Act of 2003 (S. 1247), which Senator Landrieu co-sponsored.
Provisions from these bills were then incorporated into S.
1375, the Small Business Administration 50th Anniversary
Reauthorization Act of 2003.
However, in Fiscal Year 2005, a revised version of SBA's
reauthorization was inserted into Division K of H.R. 4818, the
Consolidated Appropriations Act for 2005. While this version
included the reauthorization of the Women's Business Center
program, it excluded the authorization for the Women's Business
Center Program Sustainability Pilot program. The pilot program
was created in bipartisan legislation, the Women's Business
Center Sustainability Act of 1999, sponsored by Senator Kerry
and cosponsored by Senator Snowe. Since 2005, the pilot program
has been only reauthorized on an annual basis in Appropriations
bills, leaving the most experienced centers, in years five
through ten, operating with the uncertainty of whether they
would have an opportunity to continue to participate in the
program.
To address these concerns and to meet the increasing demand
for the program's services, in 2006, Senators Snowe and Kerry
introduced the Women's Small Business Ownership Programs Act of
2006 (S. 3659), which Senator Landrieu co-sponsored. The
provisions of that bill were then incorporated into S. 3778.
Senate Amendment 187, sponsored by Senators Snowe, Kerry, and
Sununu, also addressed this issue and was unanimously passed by
the Senate as an amendment to H.R. 2, the Fair Minimum Wage Act
of 2007, on January 24, 2007. The Fair Minimum Wage Act was
subsequently attached to the U.S. Troop Readiness, Veterans'
Care, Katrina Recovery and Iraq Accountability Appropriations
Act of 2007. The President signed this legislation into law on
May 25, 2007. The enacted legislation allows established
women's business centers--those beyond the first five years of
funding--to apply for 3-year renewal grants on a continuous
basis.
The legislation is similar to language that passed out of
the Committee on Small Business and Entrepreneurship as part of
S. 3778, which was contained in S. 1671 as set forth above, and
based on the Women's Business Center Sustainability Pilot
Program created in 1999. S. 1229 maintains this renewable grant
program authorization.

Small Business Administration Office of Women's Business Ownership

The bill provides authority for the SBA's Office of Women's
Business Ownership to develop and make available new programs
and services for established women owned businesses addressing
issues in the areas of women in manufacturing, technology,
professional services, retail and product sales, travel and
tourism, international trade, Federal government procurement
and contracting. The Committee expects that these new programs
and services will be developed in consultation with the
National Women's Business Council, the Interagency Committee on
Women's Business Enterprise, and representatives of an
association of women's business centers.
The bill also directs the SBA to conduct training for
District Office Women Business Ownership Representatives
(existing personnel who are responsible for marketing and
outreach activities) and District Office Technical
Representatives (existing personnel who are responsible for
grant programmatic and financial oversight duties) as well as
providing resources for the District Offices to carry out their
responsibilities.
The Women's Business Center Program, established in 1988,
provides long-term training and counseling to encourage small
business ownership through more than 100 non-profit
organizations. The Women's Business Center program has been
well received and has become a unique resource for women
entrepreneurs--proving to be of great benefit to the SBA in its
quest to serve greater numbers of entrepreneurs. Therefore,
some members of the Committee have questioned agency actions in
support of opening new centers in new locations before
stabilizing established centers through continued funding
opportunities. The SBA has stated that after initial funding,
the centers should be able to provide services independent of
the grant program. However, since a requirement of the Women's
Business Center program is to conduct outreach and long-term
assistance to the under-served markets on a `no-fee' basis, it
would be difficult for many centers to become self-sufficient.
The Committee supports the agency's positioning itself to first
meet the obligations of renewal grant funding for productive
centers before creating new centers.
To improve this process, the bill directs the agency to
streamline and reduce the reporting requirements and costs of
the centers, recognizing the limited grant award and limited
human resources within the centers. Additionally, the bill
clarifies the definition of an eligible Women's Business
Center, as well as conditions for participation and financial
management of the WBC project. Any eligible association that
represents Women's Business Centers will also have an
opportunity to consult with the SBA Office of Women's Business
Ownership for the purpose of developing training programs for
centers and recommendations to improve the policies and
procedures governing the operations and administration of the
program.

National Women's Business Council

The National Women's Business Council was created by the
Women's Business Ownership Act of 1988 to serve as an advisory
body to the President, the Congress and the SBA. Its members
came from the public and private sectors, and it was
constituted to respond to criticism of the Interagency
Committee's inactivity. By separating from the Interagency
Committee, the Council was better able to focus on its advisory
mission. The 1997 Small Business Reauthorization Act provided
for improved reporting duties and Council appointments.
The 2000 Small Business Reauthorization Act increased the
annual authorized appropriation from $600,000 to $1 million to
allow the Council to broaden its scope in research and reports,
establish advisory councils, conduct conferences, and establish
an interstate communication network. To build upon the
foundation previously established for the Council, the
Committee incorporated the Council's requests to change its
research formula and establishes a 30 percent allocation of
appropriated funds for specific research.
To ensure the Council's continuity and independence, the
bill clarifies membership representation. The Council has 15
members representing small businesses and small business
organizations, with the Chairperson appointed by the President,
six members representing women's business organizations, and
the remaining eight members appointed by the SBA Administrator
based upon recommendations of the Chair and Ranking Members of
the Senate Committee on Small Business and Entrepreneurship and
the House Committee on Small Business. Of these eight ``party-
affiliated'' members, four are to come from the same political
party as the President and four are not to be of the
President's party.
In 2003, Senator Landrieu proposed an amendment, which was
adopted by the Committee, to establish fairness in the
appointment of Council members as a result of an imbalance in
membership representation between the two political parties.
This amendment calls for equal representation of the two
political parties in the process of appointing members to fill
vacant seats on the Council and requires the Administrator to
report to Congress on vacancies that remain unfilled for more
than 30 days. As part of S. 3778, and again in S. 1671 and S.
2920, the Committee clarified the amendment to recognize a
party balance for the eight ``party-affiliated'' members. The
report must cite in detail the status of all vacancies,
identifying the type of vacancies, the process the Council will
follow, and the notice of any anticipated delays in filling the
vacancies.

Interagency Committee on Women's Business Enterprise

In 1977, an interagency task force was formed and was
subsequently renamed the Interagency Council in May 1979 by
Executive Order 11213. In 1988, the Women's Business Ownership
Act (Public Law 100-533) replaced the Interagency Council with
a joint public-private sector National Women's Business
Council. The SBA Reauthorization and Amendment Act of 1994
(Public Law 103-403) revised the Interagency Council's
structure, returning all public-sector participants to comprise
an expanded Interagency Committee on Women's Business
Enterprise.
In 1994, by separating the private-sector Council from the
public-sector Interagency Committee, it was intended that the
Council would be the pro-active force to inspire action by the
Interagency Committee. The 1997 Reauthorization Act
incorporated a requirement that representatives on the
Interagency Committee report directly to the head of their
agency on the Interagency Committee's activities. There is no
funding authorization provided under current law to support the
activities of the Interagency Committee. Nor are there clear
directives on the operations and interaction of the Federal
agency and department representatives.
Currently, the Interagency Committee includes
representatives from the U.S. Departments of Commerce, Defense,
Education, Energy, Health & Human Services, Labor,
Transportation, and Treasury, the SBA, General Services
Administration, Office of Federal Procurement Policy, National
Aeronautics and Science Administration, Environmental
Protection Agency, the Federal Reserve, and the Executive
Office of the President.
The Federal agencies and departments represented on the
Interagency Committee allocate existing personnel and resources
to support participation on the Interagency Committee. The
Interagency Committee is required to submit an annual report to
the President and Congress, through the SBA, but there is no
recent record of annual reports being prepared or forwarded to
the President and Congress. In addition, the President has not
appointed a Chairperson to carry out the mission of the
Interagency Committee, and therefore, the Interagency Committee
is inactive.
To reactivate the Interagency Committee so that it can
accomplish its intended mission, the bill directs the SBA
Deputy Administrator to assume temporarily the responsibilities
of the Interagency Committee Chair, if vacant, until the
President makes an appointment. This action provides for the
continuity of activities and avoid periods of inactivity. The
bill also provides operational direction for the Interagency
Committee by requiring that the Interagency Committee conduct
three official meetings each year to plan upcoming Fiscal Year
activities; track year-to-date agency contracting goals; and
evaluate Fiscal Year progress and begin the report process.
The bill also establishes, as a subcommittee to the
Interagency Committee, a policy advisory group consisting of
representatives from the SBA, the Department of Commerce, the
Department of Labor, the Department of Defense, the Department
of the Treasury, two individuals and two organizations that are
members of the National Women's Business Council. The Committee
believes that the policy advisory group will return the
Interagency Committee to a mix of public/private members to
provide the support and direction so badly needed to revive the
intent of the Interagency Committee.

TITLE III--NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM

The SBA's Office of Native American Affairs implements the
agency's outreach program for Native American communities on or
near tribal lands. The bill codifies the Office of Native
American Affairs, and outlines the qualifications and
responsibilities of the Office and its head. Additionally, the
section establishes a program that provides financial
assistance to eligible Indian tribes, tribal colleges, and
Alaska Native corporations to create Native American business
centers. These centers shall conduct five year projects to
provide culturally tailored business development training and
related services to Native Americans and Native American small
business concerns. A Native American business center may enter
into a contract or cooperative agreement with a Federal
department or agency to provide specific assistance to Native
American and other under-served small business concerns located
on or near tribal lands, to the extent that such contract or
cooperative agreement is consistent with the terms of any
federal assistance received by the Native American business
center. This program would be authorized at $10 million per
year for Fiscal Years 2010 through 2012.

Office of Native American Affairs pilot program

To identify and implement Native American economic
development opportunities available from the Federal government
and private enterprise, the SBA's Office of Native American
Affairs is directed to develop and publish a self-assessment
tool for Indian tribes that will allow such tribes to evaluate
and implement best practices for economic development, and
provide assistance to Indian tribes, through the Inter-Agency
Working Group.

TITLE IV--VETERANS' BUSINESS CENTER PROGRAM

According to the Department of Veteran Affairs, there are
more than 23.8 million veterans in the country, with hundreds
of new veterans returning home from service in Iraq and
Afghanistan each day. Additionally a recent small business
study on veteran business ownership reveals that, approximately
22 percent of veterans in the U.S. household population were
either purchasing or starting a new business or considering
purchasing or starting one in 2004. Of those veteran
entrepreneurs, 72 percent planned to employ at least one person
in the start of their venture. The facts indicate that many
veterans and military personnel returning from recent tours,
become entrepreneurs to support themselves, create new jobs in
their communities, and help to strengthen the economy overall.
Since the passage of ``The Veterans Entrepreneurship and
Small Business Development Act of 1999'' (P.L. 106-50), the
SBA's Office of Veterans Business Development (OVBD) has been
working to provide technical assistance and support to those
veterans who have served our country and returned to start or
grow a small business. This Committee supports those efforts to
ensure their seamless transition to civilian life--and
specifically civilian employment--provide them with the
information and tools they need to become successful small
business owners, and encourage increased levels of veteran
entrepreneurship. Additionally, this Committee recognizes the
work that the OVBD has done, and continues to do, in providing
critical information and services to veteran small business
owners across the country.
To that end, the bill establishes a Veterans Business
Center program within the OVBD, to provide entrepreneurial
training and counseling to veterans, service-disable veterans,
Reservists, their spouses and surviving spouses. Specifically,
this bill authorizes financial assistance to be provided to
private nonprofit organizations participating in this program
so they may assist veterans, service-disable veterans,
Reservists, their spouses and surviving spouses through a
variety of training outreach, education, and other services.
The bill provides selection criteria for receiving financial
assistance through this program, as well as reporting
requirements for private nonprofit organizations that are
receiving financial assistance through this program, and
directs certain coordination efforts between participating
veterans' business centers and relevant SBA District Office
personnel. Additionally, the bill authorizes the OVBD to create
an online mechanism through which it may provide information to
assist veterans business centers in providing services set
forth in this section, and for veterans' business centers to be
able to distribute information and resource materials and
communicate with each other regarding best practices.

TITLE V--PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS

The Program for Investment in Microentrepreneurs (PRIME)
was created in 1999 when the PRIME Act was incorporated and
amended in the Gramm-Leach-Bliley Act as part of the U.S.
Department of the Treasury's Community Development Financial
Institutions Program. At that time, the conferees chose to have
the program administered by the SBA. However, the statutory
provisions were never moved to the Small Business Act.
PRIME is a program to provide grants to intermediaries that
use the funds to: (1) train other intermediaries to develop
microenterprise training and services programs; (2) research
microenterprise practices; or (3) provide training and
technical assistance to disadvantaged entrepreneurs. The bill
reauthorizes PRIME, transfers the statutory language for PRIME
to the Small Business Act and directs that the program be
administered through the Office of Entrepreneurial Development
within the SBA. This bill adds a data collection provision and
reauthorizes the program at $15 million for Fiscal Years 2010,
2011, and 2012.

TITLE VI--OTHER PROVISIONS

Institutions of higher education

The bill requires SBDC grantees to be accredited
institutions of higher education, other than those that are
already grantees.

Health insurance options information for small business concerns

One of the most pressing issues facing small business today
is the rising cost of health insurance. Small businesses face a
crisis when it comes to securing quality, affordable health
insurance for their employees. Health insurance costs are
skyrocketing, and small businesses are trapped in stagnant,
dysfunctional state insurance markets that have little, if any,
competition. Further compounding matters, many small businesses
do not possess the resources, the personnel, or the information
to navigate the complex health care landscape.
The Committee supports efforts to increase small business
awareness of all health insurance options available to them.
The bill establishes a grant program, to be administered
through the Office of Entrepreneurial Development within the
SBA, to provide information, counseling, and educational
materials to small businesses, through the existing framework
of relevant resource partners as outlined in the bill. The
Committee believes that resource partners, such as the
Association of Small Business Development Centers, the
Association of Women's Business Centers, SCORE, and Veterans
Business Centers provide an appropriate mechanism to
disseminate information about health insurance options to small
businesses.
This section is based on the Small Business Health
Information Options Act of 2007, S. 1690, introduced by Senator
Snowe in the 109th and 110th Congresses and cosponsored by
Senators Kerry and Bennett, and later contained in S. 1671, The
Entrepreneurial Development Act of 2007. It is based on recent
research conducted by the non-partisan Healthcare Leadership
Council, which found that with a short educational and
counseling session, small businesses were up to 33 percent more
likely to offer health insurance to their employees.

National Small Business Development Center Advisory Board

Although SBDCs are grouped into 10 regions throughout the
country, the National Small Business Development Center
Advisory Board presently only has 9 members on its board. In
order to ensure that all regions are represented on the board,
this bill would allow 10 members to serve on the board.

Privacy requirements for SCORE chapters

Maintaining the privacy of clients is of vital importance
in allowing a client to share business details and thus receive
help from a counselor. This provision extends the privacy rules
which apply to SBDC clients to SCORE clients.

National Small Business Summit

The last national small business summit, the White House
Conference on Small Business, took place over a decade ago.
Many of the recommendations from that conference were enacted
into law and have helped small businesses continue to drive the
American economy. However, much has changed since that time,
and small businesses continue to face new challenges such as
rising health care costs, increasing regulations and low cost
competition. This summit will be an opportunity to highlight
the importance of small businesses in the economy and focus
attention on the problems and the solutions necessary to
address the obstacles that may be hindering the ability of
small businesses to start up and grow.

Assistance to out-of-state small businesses; Small business development
centers

After a disaster, the SBA usually provides additional staff
and funding to assist only the SBA's disaster loan program.
However, the Small Business Development Centers (SBDCs),
resource partners of the SBA, have played a critical role in
providing additional assistance and counseling to the victims
of disaster areas. To assist the SBDCs disaster recovery
efforts, the bill authorizes the Administrator to waive the
$100,000 maximum size for SBDC portability grants used for
disaster response. In addition, SBDCs will be authorized to
provide services to small businesses located outside the SBDC's
own home state if the small business concerns are located in a
disaster area. The Committee also believes that SBDCs should be
allowed to operate at disaster recovery sites, if permissible.

Educating and networking entrepreneurs through technology

Twenty percent of the American population is projected to
be self-employed by 2020, growing the American economy from 23
million companies today to more than 80 million over the next
11 years. These emerging and growth oriented small business
owners need technical assistance and training, through
instructive interaction and meaningful networks across
industries to accelerate their growth and reduce the risk
associated with business start up or expansion. Particularly in
rural regions, small business owners lack access to these
services and resources; they find a confusing array of
providers and programs and many small firms go their entire
business life without substantive interaction with business
peers.
The committee supports efforts to accelerate the growth of
innovative small business owners through online peer,
professional and global networking, on-demand educational
resources, and the shared resources of public and private
programs which offer technical assistance and counseling
services to small business owners and entrepreneurs. The bill
establishes an online portal where entrepreneurs and small
business owners can interact with one another, service
providers and the global economy. Specifically, the bill
directs the SBA to consult or contract with resource partners
of the SBA and qualified third-party vendors in establishing
and managing this program, in order to fully leverage public
and private technological and educational resources.

III. COMMITTEE VOTE

In compliance with rule XXVI(7)(b) of the Standing Rules of
the Senate, the following vote was recorded on June 18, 2009.
A motion by the Chair to adopt the Entrepreneurial
Development Act of 2009, as amended by the Manager's Amendment,
to reauthorize the Small Business Administration's (SBA)
entrepreneurial development programs and to report the bill
favorably with an amendment in the nature of a substitute
reflecting the text as amended by the Manager's Amendment, was
approved by a unanimous 18-0 recorded vote with the following
Senators voting in the affirmative: Landrieu, Kerry, Levin,
Harkin, Lieberman, Cantwell, Bayh, Pryor, Cardin, Shaheen,
Hagan, Snowe, Bond, Vitter, Thune, Enzi, Isakson, Wicker.

IV. COST ESTIMATE

In compliance with rule XXVI(11)(a)(1) of the Standing
Rules of the Senate, the Committee estimates the cost of the
legislation will be equal to the amounts discussed in the
following letter from the Congressional Budget Office.
June 25, 2009.
Hon. Mary L. Landrieu,
Chairman, Committee on Small Business and Entrepreneurship
U.S. Senate, Washington, DC.
Dear Madam Chair: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1299, the
Entrepreneurial Development Act of 2009.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Douglas W. Elmendorf.
Enclosure.

S. 1229--Entrepreneurial Development Act of 2009

Summary: S. 1229 would authorize funding for a number of
Small Business Administration (SBA) programs that provide
technical support and assistance to small business owners in
targeted populations, including Native Americans, women, and
veterans. The bill also would authorize the Government
Accountability Office (GAO) to prepare several reports on
issues related to those assistance programs.
Assuming appropriation of the necessary amounts, CBO
estimates that implementing S. 1229 would cost $614 million
over the 2010-2014 period. (Those totals include about $3
million per year for estimated administrative costs.) Enacting
the bill would not affect direct spending or revenues.
S. 1229 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1229 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------
2010 2011 2012 2013 2014 2010-2014
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Grant Programs:
Authorization Level............................ 223 231 238 0 0 692
Estimated Outlays.............................. 35 106 178 167 113 599
Additional Administrative Costs:
Estimated Authorization Level.................. 4 4 4 3 3 18
Estimated Outlays.............................. 2 2 3 3 3 13
GAO Reports:
Estimated Authorization Level.................. 2 0 0 0 0 2
Estimated Outlays.............................. 0 1 1 0 0 2
Total Changes:
Estimated Authorization Level.............. 229 235 242 3 3 712
Estimated Outlays.......................... 37 109 182 170 116 614
----------------------------------------------------------------------------------------------------------------

Basis of estimate: S. 1229 would authorize appropriations
through fiscal year 2012 to continue several SBA programs that
provide assistance to owners of small businesses. CBO estimates
that implementing the provisions of S. 1229 would cost $614
million over the 2010-2014 period, assuming appropriation of
the necessary amounts.

Grant Programs

The bill would reauthorize through 2012 the Service Corps
of Retired Executives program, the Small Business Development
Center (SBDC) program, the Drug-free Workplace program, and the
Program for Investment in Microentrepreneurs and would
authorize the appropriation of $565 million over the 2010-2012
period for those programs. CBO estimates that implementing
those provisions would cost $488 million over the 2010-2014
period, assuming appropriation of the specified amounts.
The bill also would reauthorize SBA's Women's Small
Business Center program and the National Women's Business
Council for three years. CBO estimates that implementing those
programs to support businesses owned by women would cost $57
million over the 2010-2014 period, assuming appropriation of
the specified amounts.
Several programs supporting business ownership by Native
Americans would be authorized through 2012 under the
legislation as well. S. 1229 would establish a small business
development program for Native Americans to offer assistance
that is tailored to Native American culture. The bill also
would authorize SBA to develop a tool to evaluate various
economic development options for Indian tribes. CBO estimates
that those provisions would cost $27 million over the 2010-2014
period.
S. 1229 would establish a veterans' business center program
to provide training and counseling to veterans, service-
disabled veterans, reservists and their spouses, and surviving
spouses. The bill also would require the Office of Veterans'
Business Development to create an online system to support the
activities of the veterans' business centers. CBO estimates
that those provisions would cost $27 million over the 2010-2014
period, assuming appropriation of the specified amounts.

Additional administrative costs

Based on information from SBA, CBO estimates that the
agency would need an additional eight full-time equivalent
positions to establish an Office of Native American Affairs and
to meet the additional administrative requirements that arise
from changes to various programs made by the bill. Costs for
that additional support would total an estimated $13 million
over the 2010-2014 period.

GAO reports

Finally, S. 1229 would authorize GAO to prepare a number of
studies and reports on topics that include the difficulties
both women's business centers and Native American business
centers face as a result of economic factors in the areas they
serve, the effectiveness of the veterans business center
program, and the feasibility of extending certain pilot
programs created in the bill. CBO estimates that completing
these reports would cost about $2 million over the 2010-2014
period.
Intergovernmental and private-sector impact: S. 1229
contains no intergovernmental or private-sector mandates as
defined in UMRA. By authorizing grants to SBDCs, tribal
business information centers, and veterans business centers,
the bill would benefit state, local, and tribal governments.
Any costs that those entities incur would result from complying
with conditions of federal assistance.
Estimate prepared by: Federal Costs: Susan Willie; Impact
on State, Local, and Tribal Governments: Elizabeth Cove
Delisle; Impact on the Private Sector: Jacob Kuipers.
Estimate approved by: Theresa Gullo; Deputy Assistant
Director for Budget Analysis.

V. EVALUATION OF REGULATORY IMPACT

In compliance with rule XXVI(11)(b) of the Standing Rules
of the Senate, it is the opinion of the Committee that no
significant additional regulatory impact will be incurred in
carrying out the provisions of this legislation. There will be
no additional impact on the personal privacy of companies or
individuals who utilize the services provided.

VI. SECTION-BY-SECTION ANALYSIS

Sec. 1. Short Title. The Entrepreneurial Development Act of
2009.
Sec. 2. Table of Contents.
Sec. 3. Definitions.

TITLE I--REAUTHORIZATION

Reauthorizations: Reauthorizes the Small Business
Development Center (SBDC) program, SCORE and the Paul Coverdell
Drug-Free Workplace program for 2010, 2011, and 2012.

TITLE II--WOMEN'S SMALL BUSINESS OWNERSHIP PROGRAMS

Sec. 201. Office of Women's Business Ownership. This
section amends the Small Business Act by directing the SBA
Office of Women's Business Ownership to develop new programs
and services for established women-owned businesses. In
addition, this provision requires the Office of Women's
Business Ownership to consult with the associations
representing the Women's Business Centers, the National Women's
Business Council, and the Interagency Committee on Women's
Business Enterprise. It also requires that training be provided
for SBA District Office personnel responsible for carrying out
Agency programs. Finally, this provision requires the
Administration to improve the women's business center grant
process and the programmatic and financial oversight process.
Sec. 202. Women's Business Center Program. Reauthorizes the
Women's Business Center (WBC) program for 2010, 2011, and 2012.
Also recognizes the existence and activities of any association
of women's business centers representing more than half a
percent or more of the WBCs. Requires the SBA Administrator to
consult with any association of WBCs to develop training for
WBC and improvement for the WBC program. In addition, the bill
clearly sets forth the process and criteria that the agency
must follow in administering the women's business center grant
program, and clarifies eligibility for participation in the
program. It requires the SBA to disburse grants as quickly as
possible and to provide justification if new WBCs are located
within 50 miles of an existing WBC. Further, it establishes a
minimum annual grant amount of $150,000 each WBC.
Sec. 203. National Women's Business Council. Reauthorizes
the National Women's Business Council for 2010, 2011, and 2012.
Changes the Council's research allocation from $550,000 to 30
percent of appropriated funds.
Sec. 204. Interagency Committee on Women's Business
Enterprise. Provides an acting chairperson of the Interagency
Committee on Women's Business Enterprise and establishes a
Policy Advisory Group to assist the chairperson in developing
policies and programs, and defines the composition of the
Policy Advisory Group. The bill also provides operational
direction for the Interagency Committee by requiring that the
Interagency Committee conduct three official meetings each year
to plan upcoming Fiscal Year activities; track year-to-date
agency contracting goals; and evaluate Fiscal Year progress and
begin the report process.
Sec. 205. Preserving the independence of the National
Women's Business Council. Requires an equal number of members
appointed to serve on the Council representing each of the two
major political parties. This also requires that if a vacancy
is not filled, or if there exists an imbalance of party-
affiliated members on the Council, in a 30-day period, a report
must be submitted to the Senate Committee on Small Business and
Entrepreneurship and House Committees on Small Business and
Entrepreneurship.
Sec. 206. Study and report on Women's Business Centers.
Requires the Comptroller General, within one year of enactment
of this Act, to conduct a broad study of the unique economic
issues facing women's business centers covered under this Act.

TITLE III--NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM

Sec. 301. Short title. Native American Small Business
Development Act of 2009.
Sec. 302. Native American Small Business Development
Program. The bill codifies the Office of Native American
Affairs, and outlines the qualifications and responsibilities
of the Office and its head. Additionally, this section provides
financial assistance to tribal governments, tribal colleges,
and Alaska Native corporations to create Native American
business centers. These centers shall conduct five-year
projects that offer culturally-tailored business development
assistance. This program would be authorized at $10 million per
year for fiscal years 2010 through 2012.
Sec. 303. Study and report on Native American business
centers. Requires the Comptroller General, within one year of
enactment of this Act, to conduct a broad study of the unique
economic issues facing Native American business centers covered
under this Act.
Sec. 304. Office of Native American Affairs pilot program.
This section authorizes a two-year pilot program for the Office
of Native American Affairs to develop and publish a self-
assessment tool for evaluation and implementation of best
practices for economic development for Indian tribes. The
provision includes a reporting requirement on the effectiveness
of the self-assessment tool. It also authorizes assistance in
identifying economic development opportunities to Indian tribes
through the Inter-Agency Working group, which is comprised of
key federal agencies. The provision does not include nor
require authorization of appropriations.

TITLE IV--VETERANS' BUSINESS CENTER PROGRAM

Sec. 401. Veterans' Business Center Program; Office of
Veterans Business Development. This section establishes a
Veterans Business Center program within the Office of Veterans
Business Development, to provide entrepreneurial training and
counseling to veterans, service-disable veterans, Reservists,
their spouses and surviving spouses. This section authorizes
financial assistance to be provided to private nonprofit
organizations participating in this program so that they may be
able to provide training and services set forth in this
section. This section also provides selection criteria for
receiving financial assistance through this program, as well as
reporting requirements for private nonprofit organizations that
are receiving financial assistance through this program. This
section also directs certain coordination efforts between
participating veterans' business centers and relevant SBA
District Office personnel.
Additionally, this section authorizes the Office of
Veterans Business Development (OVBD) to create an online
mechanism through which the OVBD may provide information to
assist veterans business centers in providing services set
forth in this section, and for veterans' business centers to be
able to distribute information and resource materials and
communicate with each other regarding best practices. This
section authorizes to be appropriated to carry out the
veterans' business center program: $8 million for fiscal year
2010; $8.5 million for fiscal year 2011; and $9 million for
fiscal year 2012. Additionally, the bill calls for $2 million
annually for the SBA's Office of Veterans Business Development
for each of fiscal years 2010 through 2012.
Sec. 402. Reporting requirement for interagency task force.
Requires a biannual report to Congress on appointments made to,
progress, and action items regarding the Task Force established
under section 32(c) of the Small Business Act.
Sec. 403. Repeal and renewal of grants. Repeals previous
grant language in the Small Business Act in recognition of the
establishment of the new veterans' business center program.
Provides that any private nonprofit receiving financial
assistance through this program may apply for a renewal of that
assistance.

TITLE V--PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS

Sec. 501. PRIME Reauthorization and transfer to the Small
Business Act. This subsection transfers the authorization of
this program from the Riegle Act to the Small Business Act,
clarifying that the program should be administered by the SBA
through the Office of Entrepreneurial Development. Of the money
designated for this program, which provides technical
assistance to micro-entrepreneurs, the section authorizes
additional funds to serve Native Americans. This section
authorizes $15,000,000 for each of fiscal years 2010 through
2012 to carry out this section, and authorizes $2,000,000 for
each of fiscal years 2010 through 2012 to serve Native
Americans.
Sec. 502. Conforming repeal and amendments.
Sec. 503. References.
Sec. 504. Rule of construction.

TITLE VI--OTHER PROVISIONS

Sec. 601. Institutions of higher education. This provision
requires SBDC grantees that are institutions of higher
education to be accredited and grandfathers any SBDC grantee
institution of higher education that is not yet accredited but
is seeking accreditation.
Sec. 602. Health insurance options information for small
business concerns. Establishes a grant program, to be
administered through the Office of Entrepreneurial Development,
providing financial assistance to resource partners to be able
to provide neutral and objective information and educational
materials regarding health insurance options, including
coverage options within the small group market, to small
business concerns. Additionally, this section requires a review
of the effectiveness of this program within two years of
disbursement of grants. This section authorizes $5,000,000 for
this program.
Sec. 603. National Small Business Development Center
Advisory Board. The bill adds one member to the National Small
Business Development Center Advisory Board for a total of ten
members, to ensure that all ten SBDC districts are represented
on the board, and revises certain requirements for composition
of the Advisory Board.
Sec. 604. Privacy requirements for SCORE chapters. This
provision extends the privacy protections afforded to SBDC
clients to SCORE clients.
Sec. 605. National Small Business Summit. Directs the
President to convene a National Small Business Summit before
December 31, 2012 to examine the present conditions and future
of small businesses in the United States. The summit shall
include small business owners, representatives of small
business groups, labor, academia, nonprofit policy groups, and
State and Federal governments. In addition, no later than 90
days after the summit, the President will release a report
identifying key challenges and making recommendations for
promoting entrepreneurship and the growth of small businesses.
Sec. 606. SCORE Program. This section amends the Small
Business Act by replacing all references to the ``Service Corps
of Retired Executives'' with ``SCORE'' as the official name of
the program.
Sec. 607. Assistance to out-of-state small businesses. This
section authorizes the Administrator to permit small business
development centers to provide assistance to small business
concerns located outside of the state without regard to
geographic proximity during a major disaster.
Sec. 608. Small business development centers. This section
revises certain provisions regarding portability grants
including allowing the Administrator to make grants in excess
of $100,000 to accommodate extraordinary events with a
catastrophic impact.
Sec. 609. Evaluation of pilot programs. This section
directs the Comptroller General to conduct a study of pilot
programs related to small business development centers,
evaluating those programs and providing recommendations as to
improvements of those programs.
Sec. 610. Educating and networking entrepreneurs through
technology. Establishes an online networking and information
and education resource platform utilizing web-based
communications and other advanced technology, and leveraging
available technological resources of resource partners and
other public and private entities, as a means of providing
online training, information, and other resources in promoting
and developing entrepreneurs.