1.This Act may be cited as the
Second-Stage Small Business
Development Act of 2006
.
2.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.
3.In this Act:
(1)The term Administrator
means
the Administrator of the Small Business Administration.
(2)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)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 collegeThe 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
institutionThe 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)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
opportunitiesThe 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)The term pilot program means the program
established under section 4(a).
(9)Second-stage
small business concernThe 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)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)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.
4.
(a)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)The Administrator shall select 2 eligible entities from
each of the 10 regions described in paragraph (3) to receive grants.
(2)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)The regions described in this paragraph are as
follows:
(A)Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and
Rhode Island.
(B)New York, New Jersey, Puerto Rico, and the Virgin
Islands.
(C)Pennsylvania, Maryland, West Virginia, Virginia, the District
of Columbia, and Delaware.
(D)Georgia, Alabama, North Carolina, South Carolina, Mississippi,
Florida, Kentucky, and Tennessee.
(E)Illinois, Ohio, Michigan, Indiana, Wisconsin, and
Minnesota.
(F)Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.
(G)Missouri, Iowa, Nebraska, and Kansas.
(H)Colorado, Wyoming, North Dakota, South Dakota, Montana, and
Utah.
(I)California, Guam, Hawaii, Nevada, Arizona, and American
Samoa.
(J)Washington, Alaska, Idaho, and Oregon.
(4)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 selectionsThe Administrator shall make selections under
paragraph (1) not later than 60 days after the promulgation of regulations
under section 5.
(c)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)
(1)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)A grant under the pilot program shall be in an amount
not less than $50,000.
(e)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)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)The report required under paragraph (1) shall be
transmitted in electronic form.
(g)Data Repository
and ClearinghouseIn 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 programNot 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)
(1)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 informationThe 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)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)The
pilot program shall terminate on September 30, 2010.
5.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.
6.Authorization of
Appropriations
(a)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 fundsThe Administrator shall carry out this Act
using only amounts appropriated in advance specifically for the purpose of
carrying out this Act.