[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2396 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2396

  To direct the Administrator of the Small Business Administration to 
 establish a pilot program to make grants to eligible entities for the 
   development of peer learning opportunities for second-stage small 
                           business concerns.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2006

Mr. Santorum (for himself and Mr. Allen) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
  To direct the Administrator of the Small Business Administration to 
 establish a pilot program to make grants to eligible entities for the 
   development of peer learning opportunities for second-stage small 
                           business concerns.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Second-Stage Small Business 
Development Act of 2006''.

SEC. 2. PURPOSE.

    The purpose of this Act is to establish a 4-year pilot program to--
            (1) identify second-stage small business concerns that have 
        the capacity for significant business growth and job creation;
            (2) facilitate business growth and job creation by second-
        stage small business concerns through the development of peer 
        learning opportunities;
            (3) utilize the network of small business development 
        centers to expand access to peer learning opportunities for 
        second-stage small business concerns; and
            (4) assist businesses owned by minority individuals, 
        service-disabled veterans, and women.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Community college.--The term ``community college'' has 
        the meaning given that term in section 3301(3) of the Higher 
        Education Act of 1965 (20 U.S.C. 7011(3)).
            (3) Eligible entities.--The term ``eligible entity'' means 
        an entity that--
                    (A) is eligible to receive funding under section 21 
                of the Small Business Act (15 U.S.C. 648); and
                    (B) submits to the Administrator an application 
                that includes--
                            (i) a plan to--
                                    (I) offer peer learning 
                                opportunities to second-stage small 
                                business concerns; and
                                    (II) transition to providing such 
                                opportunities using non-governmental 
                                funding; and
                            (ii) any other information and assurances 
                        that the Administrator may require.
            (4) Historically black college.--The term ``historically 
        Black college'' means a part B institution, as defined in 
        section 322(2) of the Higher Education Act of 1965 (20 U.S.C. 
        1061(2)).
            (5) Hispanic-serving institution.--The term ``Hispanic-
        serving institution'' has the meaning given that term in 
        section 502(a)(5) of the Higher Education Act of 1965 (20 
        U.S.C. 1101a(a)(5)).
            (6) Minority institution.--The term ``minority 
        institution'' has the meaning given that term in section 365(3) 
        of the Higher Education Act of 1965 (20 U.S.C. 1067k(3)).
            (7) Peer learning opportunities.--The term ``peer learning 
        opportunities'' means formally organized peer groups of owners, 
        presidents and chief executive officers in non-competing 
        second-stage business concerns, meeting regularly with a 
        professionally trained facilitator.
            (8) Pilot program.--The term ``pilot program'' means the 
        program established under section 4(a).
            (9) Second-stage small business concern.--The term 
        ``second-stage small business concern'' means a small business 
        concern that--
                    (A) has experienced high growth demonstrated by--
                            (i) an average annual revenue or employee 
                        growth rate of at least 15 percent during the 
                        preceding 3 years; or
                            (ii) any 3 of the following:
                                    (I) Owning proprietary intellectual 
                                property.
                                    (II) Addressing an underserved or 
                                growing market.
                                    (III) Having a sustainable 
                                competitive advantage.
                                    (IV) Exporting goods or services 
                                outside of its community.
                                    (V) Having a product or service 
                                that is scalable to a large market.
                                    (VI) Ownership by minority 
                                individuals, service-disabled veterans, 
                                or women; and
                    (B) does not exceed the size standard for the North 
                American Industrial Classification System code of such 
                concern, as established pursuant to section 3(a) of the 
                Small Business Act (15 U.S.C. 632(a)).
            (10) Small business concern.--The term ``small business 
        concern'' has the meaning given that term under section 3 of 
        the Small Business Act (15 U.S.C. 632).
            (11) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.

SEC. 4. PILOT PROGRAM.

    (a) Establishment.--The Administrator shall establish and carry out 
a pilot program to make grants to eligible entities for the development 
of peer learning opportunities for second-stage small business concerns 
in accordance with this Act.
    (b) Selection of Grant Recipients.--
            (1) In general.--The Administrator shall select 2 eligible 
        entities from each of the 10 regions described in paragraph (3) 
        to receive grants.
            (2) Criteria for selection.--The Administrator shall 
        evaluate the plans described in section 3(3) submitted by 
        eligible entities and select eligible entities to receive 
        grants on the basis of the merit of such plans.
            (3) Regions described.--The regions described in this 
        paragraph are as follows:
                    (A) Region 1.--Maine, Massachusetts, New Hampshire, 
                Connecticut, Vermont, and Rhode Island.
                    (B) Region 2.--New York, New Jersey, Puerto Rico, 
                and the Virgin Islands.
                    (C) Region 3.--Pennsylvania, Maryland, West 
                Virginia, Virginia, the District of Columbia, and 
                Delaware.
                    (D) Region 4.--Georgia, Alabama, North Carolina, 
                South Carolina, Mississippi, Florida, Kentucky, and 
                Tennessee.
                    (E) Region 5.--Illinois, Ohio, Michigan, Indiana, 
                Wisconsin, and Minnesota.
                    (F) Region 6.--Texas, New Mexico, Arkansas, 
                Oklahoma, and Louisiana.
                    (G) Region 7.--Missouri, Iowa, Nebraska, and 
                Kansas.
                    (H) Region 8.--Colorado, Wyoming, North Dakota, 
                South Dakota, Montana, and Utah.
                    (I) Region 9.--California, Guam, Hawaii, Nevada, 
                Arizona, and American Samoa.
                    (J) Region 10.--Washington, Alaska, Idaho, and 
                Oregon.
            (4) Consultation.--If small business development centers 
        have formed an association to pursue matters of common concern 
        as authorized under section 21(a)(3)(A) of the Small Business 
        Act (15 U.S.C. 648(a)(3)(A)), the Administrator shall consult 
        with such association and give substantial weight to the 
        recommendations of such association in selecting the grant 
        recipients.
            (5) Deadline for initial selections.--The Administrator 
        shall make selections under paragraph (1) not later than 60 
        days after the promulgation of regulations under section 5.
    (c) Use of Funds.--An eligible entity that receives a grant under 
the pilot program shall use the grant to--
            (1) identify second-stage small business concerns in the 
        service delivery areas of the eligible entity; and
            (2) establish and conduct peer learning opportunities for 
        such second-stage small business concerns.
    (d) Amount of Grant.--
            (1) In general.--Except as provided in paragraph (2), a 
        grant under the pilot program shall be in an amount that does 
        not exceed the product obtained by multiplying--
                    (A) the amount made available for grants under the 
                pilot program for the fiscal year for which the grant 
                is made; and
                    (B) the ratio that the population of the State in 
                which the eligible entity is located bears to the 
                aggregate population the States in which eligible 
                entities receiving grants for that fiscal year are 
                located.
            (2) Minimum amount of grant.--A grant under the pilot 
        program shall be in an amount not less than $50,000.
    (e) Matching Requirement.--As a condition of a grant under the 
pilot program, the Administrator shall require that a matching amount 
be provided from sources other than the Federal Government that--
            (1) is equal to the amount of the grant, or in the case of 
        an eligible entity that is a community college, historically 
        Black college, Hispanic-serving institution, or other minority 
        institution, is equal to 50 percent of the amount of the grant;
            (2) is not less than 50 percent cash;
            (3) is not more than 50 percent comprised of indirect costs 
        and in-kind contributions; and
            (4) does not include any indirect cost or in-kind 
        contribution derived from any Federal program.
    (f) Quarterly Report to Administrator.--
            (1) In general.--Each eligible entity that receives a grant 
        under the pilot program shall submit to the Administrator a 
        quarterly report that includes--
                    (A) a summary of the peer learning opportunities 
                established by the eligible entity using grant funds;
                    (B) the number of second-stage small business 
                concerns assisted using grant funds; and
                    (C) in the case of an eligible entity that receives 
                a grant for a second fiscal year or any subsequent 
                fiscal year--
                            (i) any measurable economic impact data 
                        resulting from the peer learning opportunities 
                        established using grant funds; and
                            (ii) the number of peer learning 
                        opportunities established by the eligible 
                        entity that have transitioned from operating 
                        using Government funds to operating without 
                        using Government funds.
            (2) Form of report.--The report required under paragraph 
        (1) shall be transmitted in electronic form.
    (g) Data Repository and Clearinghouse.--In carrying out the pilot 
program, the Administrator shall act as the repository of and 
clearinghouse for data and information submitted by the eligible 
entities.
    (h) Annual Report on Pilot Program.--Not later than November 1 of 
each year, the Administrator shall submit to the President and to 
Congress, a report evaluating the success of the pilot program during 
the preceding fiscal year, which shall include the following:
            (1) A description of the types of peer learning 
        opportunities provided with grant funds.
            (2) The number of second-stage small business concerns 
        assisted with grant funds.
            (3) For fiscal year 2007 and each subsequent fiscal year of 
        the pilot program--
                    (A) data regarding the economic impact of the peer 
                learning opportunities provided with grant funds; and
                    (B) the number of peer learning opportunities 
                established by grant recipients that have transitioned 
                from operating using Government funds to operating 
                without using Government funds.
    (i) Privacy Requirement.--
            (1) In general.--A small business development center, 
        consortium of small business development centers, or contractor 
        or agent of a small business development center shall not 
        disclose the name, address, or telephone number of any 
        individual or small business concern receiving assistance under 
        this section without the consent of such individual or small 
        business concern, unless--
                    (A) the Administrator is ordered to make such a 
                disclosure by a court in any civil or criminal 
                enforcement action initiated by a Federal or State 
                agency; or
                    (B) the Administrator considers such a disclosure 
                to be necessary for the purpose of conducting a 
                financial audit of a small business development center, 
                but a disclosure under this subparagraph shall be 
                limited to the information necessary for such audit.
            (2) Administrator use of information.--The privacy 
        requirement under this subsection shall not--
                    (A) restrict Administrator access to program 
                activity data; or
                    (B) prevent the Administrator from using client 
                information to conduct client surveys.
    (j) Evaluation and Report.--Not later than 3 years after the 
establishment of the pilot program, the Comptroller General of the 
United States shall--
            (1) conduct an evaluation of the pilot program; and
            (2) transmit to Congress and the Administrator a report 
        containing the results of such evaluation along with any 
        recommendations as to whether the pilot program, with or 
        without modification, should be extended to include the 
        participation of all small business development centers.
    (k) Termination.--The pilot program shall terminate on September 
30, 2010.

SEC. 5. REGULATIONS.

    After providing notice and an opportunity for comment and after 
consulting with the association described in section 4(b)(5) (if any 
such association has been formed), the Administrator shall promulgate 
final regulations to carry out this Act, including regulations that 
establish--
            (1) standards relating to the establishment and conduct of 
        peer learning opportunities to be provided by grant recipients, 
        including the number of individuals that may participate in a 
        peer group that is part of a peer learning opportunity;
            (2) standards relating to the educational, technical, and 
        professional competency of any facilitator who delivers peer 
        learning opportunities under the pilot program; and
            (3) requirements for transitioning peer learning 
        opportunities funded under the pilot program to non-
        governmental funding.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act, $1,500,000 for each of fiscal years 2007 through 2010.
    (b) Limitation on Use of Other Funds.--The Administrator shall 
carry out this Act using only amounts appropriated in advance 
specifically for the purpose of carrying out this Act.
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