Veterans' business center program; Office of Veterans Business Development

(a)

In general

Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by striking subsection (f) and inserting the following:

(f)

Online coordination

(1)

Definition

In this subsection, the term veterans' assistance provider means— (A)a veterans' business center established under subsection (g); (B)an employee of the Administration assigned to the Office of Veterans Business Development; and (C)a veterans business ownership representative designated under subsection (g)(13)(B). (2)

Establishment

The Associate Administrator shall establish an online mechanism to— (A)provide information that assists veterans' assistance providers in carrying out the activities of the veterans' assistance providers; and (B)coordinate and leverage the work of the veterans' assistance providers, including by allowing a veterans' assistance provider to— (i)distribute best practices and other materials; (ii)communicate with other veterans' assistance providers regarding the activities of the veterans' assistance provider on behalf of veterans; and (iii)pose questions to and request input from other veterans' assistance providers. (g)

Veterans' Business Center Program

(1)

Definitions

In this subsection— (A)the term active duty has the meaning given that term in section 101 of title 10, United States Code; (B)the term private nonprofit organization means an entity that is described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; (C)the term Reservist means a member of a reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code; (D)the term Service Corps of Retired Executives means the Service Corps of Retired Executives authorized under section 8(b)(1); (E)the term small business concern owned and controlled by veterans— (i)has the same meaning as in section 3(q); and (ii)includes a small business concern— (I)not less than 51 percent of which is owned by one or more spouses of veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more spouses of veterans; and (II)the management and daily business operations of which are controlled by one or more spouses of veterans; (F)the term spouse, relating to a veteran, service-disabled veteran, or Reservist, includes an individual who is the spouse of a veteran, service-disabled veteran, or Reservist on the date on which the veteran, service-disabled veteran, or Reservist died; (G)the term veterans' business center program means the program established under paragraph (2)(A); and (H)the term women’s business center means a women’s business center described in section 29. (2)

Program Established

(A)

In general

The Administrator, acting through the Associate Administrator, shall establish a veterans' business center program, under which the Associate Administrator may provide financial assistance to a private nonprofit organization to conduct a 5-year project for the benefit of small business concerns owned and controlled by veterans, which may be renewed for one or more additional 5-year periods. (B)

Form of Financial Assistance

Financial assistance under this subsection may be in the form of a grant, a contract, or a cooperative agreement. (3)

Veterans' business centers

Each private nonprofit organization that receives financial assistance under this subsection shall establish or operate a veterans' business center (which may include establishing or operating satellite offices in the region described in paragraph (5) served by that private nonprofit organization) that provides to veterans (including service-disabled veterans), Reservists, and the spouses of veterans (including service-disabled veterans) and Reservists— (A)financial advice, including training and counseling on applying for and securing business credit and investment capital, preparing and presenting financial statements, and managing cash flow and other financial operations of a small business concern; (B)management advice, including training and counseling on the planning, organization, staffing, direction, and control of each major activity and function of a small business concern; (C)marketing advice, including training and counseling on identifying and segmenting domestic and international market opportunities, preparing and executing marketing plans, developing pricing strategies, locating contract opportunities, negotiating contracts, and using public relations and advertising techniques; and (D)advice, including training and counseling, for Reservists and the spouses of Reservists. (4)

Application

(A)

In general

A private nonprofit organization desiring to receive financial assistance under this subsection shall submit an application to the Associate Administrator at such time and in such manner as the Associate Administrator may require. (B)

5-year plan

Each application described in subparagraph (A) shall include a 5-year plan on proposed fundraising and training activities relating to the veterans' business center. (C)

Determination and Notification

Not later than 60 days after the date on which a private nonprofit organization submits an application under subparagraph (A), the Associate Administrator shall approve or deny the application and notify the applicant of the determination. (D)

Availability of application

The Associate Administrator shall make every effort to make the application under subparagraph (A) available online. (5)

Eligibility

The Associate Administrator may select to receive financial assistance under this subsection— (A)a Veterans Business Outreach Center established by the Administrator under section 8(b)(17) on or before the day before the date of enactment of this subsection; or (B)private nonprofit organizations located in various regions of the United States, as the Associate Administrator determines is appropriate. (6)

Selection criteria

(A)

In general

The Associate Administrator shall establish selection criteria, stated in terms of relative importance, to evaluate and rank applicants under paragraph (5)(C) for financial assistance under this subsection. (B)

Criteria

The selection criteria established under this paragraph shall include— (i)the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of veterans, and the spouses of veterans, who own or may own small business concerns; (ii)for an applicant for initial financial assistance under this subsection— (I)the ability of the applicant to begin operating a veterans' business center within a minimum amount of time; and (II)the geographic region to be served by the veterans' business center; (iii)the demonstrated ability of the applicant to— (I)provide managerial counseling and technical assistance to entrepreneurs; and (II)coordinate services provided by veterans services organizations and other public or private entities; and (iv)for any applicant for a renewal of financial assistance under this subsection, the results of the most recent examination under paragraph (10) of the veterans' business center operated by the applicant. (C)

Criteria publicly available

The Associate Administrator shall— (i)make publicly available the selection criteria established under this paragraph; and (ii)include the criteria in each solicitation for applications for financial assistance under this subsection. (7)

Amount of assistance

The amount of financial assistance provided under this subsection to a private nonprofit organization for each fiscal year shall be— (A)not less than $150,000; and (B)not more than $200,000. (8)

Federal share

(A)

In general

(i)

Initial financial assistance

Except as provided in clause (ii) and subparagraph (E), a private nonprofit organization that receives financial assistance under this subsection shall provide non-Federal contributions for the operation of the veterans' business center established by the private nonprofit organization in an amount equal to— (I)in each of the first and second years of the project, not less than 33 percent of the amount of the financial assistance received under this subsection; and (II)in each of the third through fifth years of the project, not less than 50 percent of the amount of the financial assistance received under this subsection. (ii)

Renewals

A private nonprofit organization that receives a renewal of financial assistance under this subsection shall provide non-Federal contributions for the operation of the veterans' business center established by the private nonprofit organization in an amount equal to not less than 50 percent of the amount of the financial assistance received under this subsection. (B)

Form of non-federal share

Not more than 50 percent of the non-Federal share for a project carried out using financial assistance under this subsection may be in the form of in-kind contributions. (C)

Timing of disbursement

The Associate Administrator may disburse not more than 25 percent of the financial assistance awarded to a private nonprofit organization before the private nonprofit organization obtains the non-Federal share required under this paragraph with respect to that award. (D)

Failure to obtain non-federal funding

(i)

In general

If a private nonprofit organization that receives financial assistance under this subsection fails to obtain the non-Federal share required under this paragraph during any fiscal year, the private nonprofit organization may not receive a disbursement under this subsection in a subsequent fiscal year or a disbursement for any other project funded by the Administration, unless the Administrator makes a written determination that the private nonprofit organization will be able to obtain a non-Federal contribution. (ii)

Restoration

A private nonprofit organization prohibited from receiving a disbursement under clause (i) in a fiscal year may receive financial assistance in a subsequent fiscal year if the organization obtains the non-Federal share required under this paragraph for the subsequent fiscal year. (E)

Waiver of non-Federal share

(i)

In general

Upon request by a private nonprofit organization, and in accordance with this subparagraph, the Administrator may waive, in whole or in part, the requirement to obtain non-Federal funds under subparagraph (A) for a fiscal year. The Administrator may not waive the requirement for a private nonprofit organization to obtain non-Federal funds under this subparagraph for more than a total of 2 fiscal years. (ii)

Considerations

In determining whether to waive the requirement to obtain non-Federal funds under this subparagraph, the Administrator shall consider— (I)the economic conditions affecting the private nonprofit organization; (II)the impact a waiver under this subparagraph would have on the credibility of the veterans' business center program; (III)the demonstrated ability of the private nonprofit organization to raise non-Federal funds; and (IV)the performance of the private nonprofit organization. (iii)

Limitation

The Administrator may not waive the requirement to obtain non-Federal funds under this subparagraph if granting the waiver would undermine the credibility of the veterans' business center program. (9)

Contract authority

A veterans' business center may enter into a contract with a Federal department or agency to provide specific assistance to veterans, service-disabled veterans, Reservists, or the spouses of veterans, service-disabled veterans, or Reservists. Performance of such contract shall not hinder the veterans' business center in carrying out the terms of the grant received by the veterans' business centers from the Administrator. (10)

Examination and determination of viability

(A)

Examination

(i)

In general

The Associate Administrator shall conduct an annual examination of the programs and finances of each veterans' business center established or operated using financial assistance under this subsection. (ii)

Factors

In conducting the examination under clause (i), the Associate Administrator shall consider whether the veterans' business center has failed— (I)to provide the information required to be provided under subparagraph (B), or the information provided by the center is inadequate; (II)the center has failed to comply with a requirement for participation in the veterans' business center program, as determined by the Assistant Administrator, including— (aa)failure to acquire or properly document a non-Federal share; (bb)failure to establish an appropriate partnership or program for marketing and outreach to small business concerns; (cc)failure to achieve results described in a financial assistance agreement; and (dd)failure to provide to the Administrator a description of the amount and sources of any non-Federal funding received by the center; (III)to carry out the 5-year plan under in paragraph (4)(B); or (IV)to meet the eligibility requirements under paragraph (5). (B)

Information provided

In the course of an examination under subparagraph (A), the veterans' business center shall provide to the Associate Administrator— (i)an itemized cost breakdown of actual expenditures for costs incurred during the most recent full fiscal year; (ii)documentation of the amount of non-Federal contributions obtained and expended by the veterans' business center during the most recent full fiscal year; and (iii)with respect to any in-kind contribution under paragraph (8)(B), verification of the existence and valuation of such contributions. (C)

Determination of viability

The Associate Administrator shall analyze the results of each examination under this paragraph and, based on that analysis, make a determination regarding the viability of the programs and finances of each veterans' business center. (D)

Discontinuation of funding

(i)

In general

The Associate Administrator may discontinue an award of financial assistance to a private nonprofit organization at any time if the Associate Administrator determines under subparagraph (C) that the veterans' business center operated by that organization is not viable. (ii)

Restoration

The Associate Administrator may continue to provide financial assistance to a private nonprofit organization in a subsequent fiscal year if the Associate Administrator determines under subparagraph (C) that the veterans' business center is viable. (11)

Privacy requirements

(A)

In general

Except as provided in subparagraph (B), a veterans' business center established or operated using financial assistance provided under this subsection may not disclose the name, address, or telephone number of any individual or small business concern that receives advice from the veterans' business center without the consent of the individual or small business concern. (B)

Exception

A veterans' business center may disclose information described in subparagraph (A)— (i)if the Administrator or Associate 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 (ii)to the extent that the Administrator or Associate Administrator determines that such a disclosure is necessary to conduct a financial audit of a veterans' business center. (C)

Administration use of information

This paragraph does not— (i)restrict access by the Administrator to program activity data; or (ii)prevent the Administrator from using information not described in subparagraph (A) to conduct surveys of individuals or small business concerns that receive advice from a veterans' business center. (D)

Regulations

The Administrator shall issue regulations to establish standards for requiring disclosures under subparagraph (B)(ii). (12)

Report

(A)

In general

Not later than 60 days after the end of each fiscal year, the Associate Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effectiveness of the veterans' business center program in each region during the most recent full fiscal year. (B)

Contents

Each report under this paragraph shall include, at a minimum, for each veterans' business center established or operated using financial assistance provided under this subsection— (i)the number of individuals receiving assistance from the veterans' business center, including the number of such individuals who are— (I)veterans or spouses of veterans; (II)service-disabled veterans or spouses of service-disabled veterans; or (III)Reservists or spouses of Reservists; (ii)the number of startup small business concerns formed by individuals receiving assistance from the veterans' business center, including— (I)veterans or spouses of veterans; (II)service-disabled veterans or spouses of service-disabled veterans; or (III)Reservists or spouses of Reservists; (iii)the gross receipts of small business concerns that receive advice from the veterans' business center; (iv)the employment increases or decreases of small business concerns that receive advice from the veterans' business center; (v)to the maximum extent practicable, the increases or decreases in profits of small business concerns that receive advice from the veterans' business center; and (vi)the results of the examination of the veterans' business center under paragraph (10). (13)

Coordination of efforts and consultation

(A)

Coordination and consultation

To the extent practicable, the Associate Administrator and each private nonprofit organization that receives financial assistance under this subsection shall— (i)coordinate outreach and other activities with other programs of the Administration and the programs of other Federal agencies; (ii)consult with technical representatives of the district offices of the Administration in carrying out activities using financial assistance under this subsection; and (iii)provide information to the veterans business ownership representatives designated under subparagraph (B) and coordinate with the veterans business ownership representatives to increase the ability of the veterans business ownership representatives to provide services throughout the area served by the veterans business ownership representatives. (B)

Veterans business ownership representatives

(i)

Designation

The Administrator shall designate not fewer than 1 individual in each district office of the Administration as a veterans business ownership representative, who shall communicate and coordinate activities of the district office with private nonprofit organizations that receive financial assistance under this subsection. (ii)

Initial designation

The first individual in each district office of the Administration designated by the Administrator as a veterans business ownership representative under clause (i) shall be an individual that is employed by the Administration on the date of enactment of this subsection. (14)

Existing contracts

An award of financial assistance under this subsection shall not void any contract between a private nonprofit organization and the Administration that is in effect on the date of such award. (h)

Authorization of appropriations

There are authorized to be appropriated— (1)to carry out subsections (a) through (f), $2,000,000 for each of fiscal years 2011 through 2013; and (2)to carry out subsection (g)— (A)$8,000,000 for fiscal year 2011; (B)$8,500,000 for fiscal year 2012; and (C)$9,000,000 for fiscal year 2013.

(b)

GAO Reports

(1)

Definitions

In this subsection— (A)the terms small business concern and veteran have the meanings given those terms under section 3 of the Small Business Act (15 U.S.C. 632); and (B)the terms Reservist, small business concern owned and controlled by veterans, and veterans’ business center program have the meanings given those terms in section 32(g) of the Small Business Act, as added by this section. (2)

Report on access to credit

(A)

In general

Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit a report regarding the ability of small business concern owned and controlled by veterans to access credit to— (i)the Committee on Veterans' Affairs and the Committee on Small Business and Entrepreneurship of the Senate; and (ii)the Committee on Veterans' Affairs and the Committee on Small Business of the House of Representatives. (B)

Contents

The report submitted under subparagraph (A) shall include an analysis of— (i)the sources of credit used by small business concerns owned and controlled by veterans and percentage of the credit obtained by small business concern owned and controlled by veterans that is obtained from each source; (ii)the default rate for small business concerns owned and controlled by veterans separately for each source of credit described in clause (i), as compared to the default rate for the source of credit for small business concerns generally; (iii)the Federal lending programs available to provide credit to small business concerns owned and controlled by veterans; (iv)gaps, if any, in the availability of credit for small business concerns owned and controlled by veterans that are not being filled by the Federal Government or private sources; (v)obstacles faced by veterans in trying to access credit; (vi)the extent to which deployment and other military responsibilities affect the credit history of veterans and Reservists; and (vii)the extent to which veterans are aware of Federal programs targeted towards helping veterans access credit. (3)

Report on veterans’ business center program

(A)

In general

Not later than 60 days after the end of the second fiscal year beginning after the date on which the veterans’ business center program is established, the Comptroller General of the United States shall evaluate the effectiveness of the veterans’ business center program, and submit to Congress a report on the results of that evaluation. (B)

Contents

The report submitted under subparagraph (A) shall include— (i)an assessment of— (I)the use of amounts made available to carry out the veterans’ business center program; (II)the effectiveness of the services provided by each private nonprofit organization receiving financial assistance under the veterans’ business center program; (III)whether the services described in clause (ii) are duplicative of services provided by other veteran service organizations, programs of the Small Business Administration, or programs of another Federal department or agency and, if so, recommendations regarding how to alleviate the duplication of the services; and (IV)whether there are areas of the United States in which there are not adequate entrepreneurial services for small business concerns owned and controlled by veterans and, if so, whether there is a veterans' business center established under the veterans’ business center program providing services to that area; and (ii)recommendations, if any, for improving the veterans’ business center program.