[Congressional Record Volume 147, Number 167 (Wednesday, December 5, 2001)]
[House]
[Pages H8856-H8860]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT ACT

  Mr. MANZULLO. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2538) to amend the Small Business Act to expand and approve 
the assistance provided by Small Business Development Centers to Indian 
tribe members, Native Alaskans, and Native Hawaiians, as amended.
  The Clerk read as follows:

                               H.R. 2538

       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 ``Native American Small 
     Business Development Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Approximately 60 percent of Indian tribe members and 
     Alaska Natives live on or adjacent to Indian lands, which 
     suffer from an average unemployment rate of 45 percent.
       (2) Indian tribe members and Alaska Natives own more than 
     197,000 businesses and generate more than $34,000,000,000 in 
     revenues. The service industry accounted for 17 percent of 
     these businesses (of which 40 percent were engaged in 
     business and personal services) and 15.1 percent of their 
     total receipts. The next largest was the construction 
     industry (13.9 percent and 15.7 percent, respectively). The 
     third largest was the retail trade industry (7.5 percent and 
     13.4 percent, respectively).
       (3) The number of businesses owned by Indian tribe members 
     and Alaska Natives grew by 84 percent from 1992 to 1997, and 
     their gross receipts grew by 179 percent in that period. This 
     is compared to all businesses which grew by 7 percent, and 
     their total gross receipts grew by 40 percent, in that 
     period.
       (4) The Small Business Development Center program is cost 
     effective. Clients receiving long-term counseling under the 
     program in 1998 generated additional tax revenues of 
     $468,000,000, roughly 6 times the cost of the program to the 
     Federal Government.
       (5) Using the existing infrastructure of the Small Business 
     Development Center program, small businesses owned by Indian 
     tribe members, Alaska Natives, and Native Hawaiians receiving 
     services under the program will have a higher survival rate 
     than the average small business not receiving such services.
       (6) Business counseling and technical assistance is 
     critical on Indian lands where similar services are scarce 
     and expensive.
       (7) Increased assistance through counseling under the Small 
     Business Development Center program has been shown to reduce 
     the default rate associated with lending programs of the 
     Small Business Administration.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To stimulate economies on Indian lands.
       (2) To foster economic development on Indian lands.
       (3) To assist in the creation of new small businesses owned 
     by Indian tribe members,

[[Page H8857]]

     Alaska Natives, and Native Hawaiians and expand existing 
     ones.
       (4) To provide management, technical, and research 
     assistance to small businesses owned by Indian tribe members, 
     Alaska Natives, and Native Hawaiians.
       (5) To seek the advice of the governing bodies of Indian 
     tribes, corporations organized pursuant to the Alaska Native 
     Claims Settlement Act and other Alaska Native entities, and 
     Native Hawaiian organizations on where small business 
     development assistance is most needed.
       (6) To ensure that Indian tribe members, Alaska Natives, 
     and Native Hawaiians have full access to existing business 
     counseling and technical assistance available through the 
     Small Business Development Center program.

     SEC. 3. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO 
                   INDIAN TRIBE MEMBERS, ALASKA NATIVES, AND 
                   NATIVE HAWAIIANS.

       (a) In General.--Section 21(a) of the Small Business Act 
     (15 U.S.C. 648(a)) is amended by adding at the end the 
     following:
       ``(7) Additional grant to assist indian tribe members, 
     alaska natives, and native hawaiians.--
       ``(A) In general.--Any applicant in an eligible State that 
     is funded by the Administration as a Small Business 
     Development Center may apply for an additional grant to be 
     used solely to provide services described in subsection 
     (c)(3) to assist with outreach, development, and enhancement 
     of small business startups and expansions that are owned by 
     Indian tribe members, Alaska Natives, or Native Hawaiians and 
     that are located in Alaska or Hawaii, or on Indian lands in 
     the 48 contiguous States.
       ``(B) Eligible states.--For purposes of subparagraph (A), 
     an eligible State is a State that has a combined population 
     of Indian tribe members, Alaska Natives, and Native Hawaiians 
     that comprises at least 1 percent of the State's total 
     population, as shown by the latest available census.
       ``(C) Grant applications.--An applicant for a grant under 
     subparagraph (A) shall submit to the Associate Administrator 
     an application that is in such form as the Associate 
     Administrator may require. The application shall include 
     information regarding the applicant's goals and objectives 
     for the services to be provided using the grant, 
     including--
       ``(i) the capability of the applicant to provide training 
     and services to a representative number of Indian tribe 
     members, Alaska Natives, and Native Hawaiians;
       ``(ii) the location of the Small Business Development 
     Center site proposed by the applicant;
       ``(iii) the required amount of grant funding needed by the 
     applicant to implement the program; and
       ``(iv) the extent to which the applicant has consulted with 
     the governing bodies of Indian tribes, corporations organized 
     pursuant to the Alaska Native Claims Settlement Act and other 
     Alaska Native entities, and Native Hawaiian organizations, as 
     appropriate.
       ``(D) Applicability of grant requirements.--An applicant 
     for a grant under subparagraph (A) shall comply with all of 
     the requirements of this section, except that the matching 
     funds requirements of paragraph (4)(A) shall not apply.
       ``(E) Maximum amount of grants.--No applicant may receive 
     more than $300,000 in grants under this paragraph in a fiscal 
     year.
       ``(F) Regulations.--After providing notice and an 
     opportunity for comment and after consulting with the 
     Association recognized by the Administration pursuant to 
     paragraph (3)(A) (but not later than 180 days after the date 
     of enactment of this paragraph), the Administrator shall 
     issue final regulations to carry out this paragraph, 
     including regulations that establish--
       ``(i) standards relating to educational, technical, and 
     support services to be provided by Small Business Development 
     Centers receiving assistance under this paragraph; and
       ``(ii) standards relating to any work plan that the 
     Associate Administrator may require a Small Business 
     Development Center receiving assistance under this paragraph 
     to develop.
       ``(G) Definitions.--In this paragraph, the following 
     definitions apply:
       ``(i) Associate administrator.--The term `Associate 
     Administrator' means the Associate Administrator for Small 
     Business Development Centers.
       ``(ii) Indian lands.--The term `Indian lands' means, in the 
     48 contiguous States, land that is a `reservation' for the 
     purposes of section 4 of the Indian Child Welfare Act of 1978 
     (25 U.S.C. 1903) and land that is an `Indian reservation' for 
     the purposes of section 151.2 of title 25, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     paragraph).
       ``(iii) Indian tribe.--The term `Indian tribe' means a 
     federally recognized Indian tribe.
       ``(iv) Indian tribe member.--The term `Indian tribe member' 
     means an individual who is a member of an Indian tribe.
       ``(v) Alaska Native.--The term `Alaska Native' means an 
     individual who is--

       ``(I) a `Native' for the purposes of section 3(b) of the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1602(b));
       ``(II) a descendent of an individual who is a `Native' for 
     the purposes of section 3(b) of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1602(b)); or
       ``(III) a Tsimshian Indian who is an enrolled member of the 
     Metlakatla Indian Community.

       ``(vi) Native hawaiian.--The term `Native Hawaiian' means 
     any individual who is a descendant of the aboriginal people, 
     who prior to 1778, occupied and exercised sovereignty in the 
     area that now constitutes the State of Hawaii.
       ``(H) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $7,000,000 for 
     each of fiscal years 2002 through 2004.
       ``(I) Funding limitations.--
       ``(i) Nonapplicability of certain limitations.--Funding 
     under this paragraph shall be in addition to the dollar 
     program limitations specified in paragraph (4).
       ``(ii) Limitation on use of funds.--The Administration may 
     carry out this paragraph only with amounts appropriated in 
     advance specifically to carry out this paragraph.''.

     SEC. 4. STATE CONSULTATION WITH LOCAL TRIBAL COUNCILS.

       Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) 
     is amended by adding at the end the following:
       ``(9) Advice of governing bodies of indian tribes, alaska 
     native corporations and other entities, and native hawaiian 
     organizations.--A State receiving grants under this section 
     shall request the advice of the governing bodies of Indian 
     tribes, corporations organized pursuant to the Alaska Native 
     Claims Settlement Act and other Alaska Native entities, and 
     Native Hawaiian organizations, as appropriate, on how best to 
     provide assistance to Indian tribe members, Alaska Natives, 
     and Native Hawaiians and where to locate satellite centers to 
     provide such assistance.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Manzullo) and the gentleman from New Mexico (Mr. Udall) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Illinois (Mr. Manzullo).


                             General Leave

  Mr. MANZULLO. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on H.R. 2538.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to join with my good friend, the gentleman 
from New Mexico (Mr. Udall), in offering this bill today.
  While many Americans are justifiably anxious about a one-half percent 
jump in the unemployment rate, about 60 percent of our Native American 
population lives in or adjacent to Indian lands that suffer from an 
average unemployment rate of 45 percent. This past summer I had the 
opportunity to visit Santa Fe in the heart of the district of the 
gentleman from New Mexico (Mr. Udall); and at that time we held a 
hearing involving the contracting practices of one of our labs out 
there, the Los Alamos lab.
  The evidence adduced at the hearing pointed out quite significantly 
that the Native American tribes are not getting their share of the 
amount of Federal dollars that are being poured into the Los Alamos 
facility.
  One of the purposes of this bill is to extend the facilities of the 
SBCDs, the Small Business Development Centers, of which there are over 
1,000 in this country, for the purpose of business counseling and 
technical assistance to the Native Americans who may wish to become 
involved in the procurement process.
  What is good about this bill, Mr. Speaker, is the fact that this is a 
self-help program, it involves the outlay of a relatively small amount 
of money, it is aimed directly at the Native Americans that really need 
the assistance, and it is the type of learning of business techniques 
that makes the Native Americans better able to compete to go after 
these Federal contracts and in the private sector.
  So I join in the support of this bill and would encourage my 
colleagues to support H.R. 2538.
  Mr. Speaker, I reserve the balance of my time.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I 
may consume.
  First of all, let me thank the majority leader for allowing this 
legislation to come before the House for consideration. I also would 
like to thank the gentleman from Illinois (Chairman Manzullo) and the 
ranking member, the gentlewoman from New York (Ms. Velazquez), for 
their work and commitment to expanding small business opportunities for 
all Americans.

[[Page H8858]]

  H.R. 2538 will establish a 3-year pilot program for providing grants 
to Small Business Development Centers for assisting Native American, 
Native Alaskan and Native Hawaiian populations with their small 
business development needs.
  Today we have demonstrated how important small business is to the 
health of our economy, but there are still places in this country where 
economic prosperity has often failed to reach. These areas deserve our 
attention and assistance.
  Consider this: nowhere in America has poverty persisted longer than 
on or near Native American reservations, which suffer an average 
unemployment rate of 45 percent. However, the number of businesses 
owned by Indian tribe members and Native Alaskans grew by 84 percent 
from 1992 to 1997, and their gross receipts grew by 179 percent in that 
period. This is compared to all businesses which grew by 7 percent, and 
their total gross receipts grew by 40 percent in that period.
  I would like to continue this growth and expansion of small 
enterprise through this legislation. My bill ensures that Native 
Americans, Native Alaskans and Native Hawaiians seeking to create, 
develop and expand small businesses, have full access to the counseling 
and technical assistance available through the SBA's SBDC program. The 
business development tools offered by SBDCs can assist Native Americans 
with the information and opportunity to build sustainable businesses in 
their communities.
  The Native American Small Business Development Act would permit State 
Small Business Development Centers to apply for Federal grants to 
establish one or more Native American Small Business Development 
Centers. In an effort to ensure the quality and success of the program, 
the proposal requires grant applicants to provide the SBA with their 
goals and objectives, including their experience in assisting 
entrepreneurs with the difficulties in operating a small business.
  In addition, the applicant must show their ability to provide 
training and services to a representative number of Native Americans, 
Native Alaskans and Native Hawaiians. Most importantly, applicants must 
seek the advice of the local native population on specific needs and 
the location of services they will provide.
  It is clear we can do more to aid Native American entrepreneurs. Not 
enough has been done to assist Native Americans in building their 
businesses, which in turn helps benefit their communities.

                              {time}  1200

  I hope to change that with this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume. 
I want to acknowledge the work of my colleagues on the Committee on 
Resources, in particular the gentleman from Utah (Mr. Hansen). They 
contributed immensely to this bill in order to make sure that we are 
helping as many native Americans as possible, and particularly in 
clarifying the language as it applies to Alaska natives. I thank them 
for their contribution to this important legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield such time as she may 
consume to the gentlewoman from New York (Ms. Velazquez), our ranking 
member and a very hardworking member on this piece of legislation.
  Ms. VELAZQUEZ. Mr. Speaker, I rise in strong support of H.R. 2538, 
the Native American Small Business Development Act. This is an 
important piece of legislation which we need now more than ever. I 
thank the gentleman from New Mexico for his hard work on this issue, 
and I congratulate him for bringing it to the floor today.
  In the past decade, our economy has created more than 15 million new 
jobs and the greatest boom time on record. American small business has 
been an integral part of this growth. Small companies and entrepreneurs 
employ half our workers, create jobs 75 percent faster than large 
firms, and make up nearly half our gross domestic product. They are the 
key to our success and will be the key to our economic recovery.
  But the prosperity many Americans have enjoyed failed to reach some 
places in our country. Certain regions and communities peer over an 
ever-widening canyon that separates them from those better off. These 
areas deserve our attention and our help to fill that gap.
  Nowhere in America is poverty more persistent than on and near Native 
American reservations where citizens suffer a staggering average 
unemployment rate of 45 percent. Over a third of reservation 
inhabitants live below the poverty line.
  But one of the bright spots on many reservations during the past 
decade has been the growth of small business. From 1992 to 1997, the 
number of businesses owned by Native Americans grew by 84 percent. 
Their gross receipts also grew during that time by 179 percent. Those 
rates dwarf national figures for small business. Clearly, Native 
American enterprise is a powerful engine for renewal.
  While such spirit is innate, success is learned. We know from 
consistent and incontrovertible evidence that technical assistance 
helps small companies. Entrepreneurs who learn business skills are 
twice as likely to succeed.
  The gentleman from New Mexico (Mr. Udall), my good friend, 
understands this principle, which is why he introduced his innovative 
and valuable legislation. I commend him for his leadership and 
stewardship of this bill.
  The Native American Small Business Development Act will provide the 
technical assistance and aid needed to spur and perpetuate an 
extraordinary burst of enterprise. It ensures that those seeking to 
develop small businesses will have full access to counseling and 
technical assistance provided by the SBA's Small Business Development 
Program.
  With the economy in a downturn, we need this bill now more than ever, 
because enterprise is the engine of recovery. These hardworking 
entrepreneurs deserve the best service available to build and grow. 
This legislation will ensure they receive that aid which will help 
spread and sustain prosperity to every corner of our country.
  Mr. Speaker, I urge all of my colleagues to support this legislation.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield 3 minutes to the 
gentlewoman from the Virgin Islands (Mrs. Christensen).
  Mrs. CHRISTENSEN. Mr. Speaker, I thank the gentleman for yielding me 
time.
  Mr. Speaker, today I join my colleagues in support of H.R. 2538, the 
Native American Small Business Development Act. Within the past decade, 
America's small businesses have experienced unprecedented growth and 
have contributed greatly to our Nation's economic upswing prior to 
September 11. Now they will be an important engine for recovery.
  As the premier technical assistance providers to America's 
entrepreneurs, Small Business Development Centers are responsible, in 
large part, for the successes of small businesses.
  We know that many of these businesses operate near or at their profit 
margin and do not have the additional resources to hire legal or 
technical experts. This is where the SBDCs step in to provide free or, 
in a few instances, low-cost technical assistance. Research shows that 
small businesses that receive this technical assistance are twice as 
likely to succeed as those which do not.
  Mr. Speaker, for too long our Nation's Native American population, 
the first Americans, have been, as they have often been referred to as, 
the ``forgotten people.'' As a member of the Committee on Resources, 
like the gentleman from New Mexico (Mr. Udall), and as a person with 
Native American lineage myself, I want to commend the gentleman from 
New Mexico for introducing this bill, and I am pleased to support it, 
and I look forward to its passage today.
  While our country has experienced economic prosperity over the past 
decade, the Native American community, including the Alaskan Natives 
and Native Hawaiian communities, continue to lag behind. For example, 
the average unemployment rate for Native American communities, 
particularly on reservations, averages about 45 percent, with one-third 
of Native Americans living below the poverty level. With only limited 
help, Native American small businesses have grown at a rate of 84

[[Page H8859]]

percent over the past 5 years, but we need to help them more. We need 
to help them do better.
  Mr. Speaker, H.R. 2538 will provide $7 million to fund a 3-year pilot 
program to provide technical assistance to Native American, Native 
Alaskan, and Native Hawaiian businesses. This program will give these 
businesses better access to the SBDC network, no matter where they are 
located. It will help to sustain and, hopefully, boost the growth of 
Native American, Native Alaskan and Hawaiian Native businesses which, 
in turn, will spur the much-needed economic growth in these 
communities.
  Once again, I would like to commend the gentleman for championing 
this cause and bringing this legislation to the floor, and I urge my 
colleagues to support it.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield 2 minutes to the 
gentleman from Illinois (Mr. Davis).
  Mr. DAVIS of Illinois. Mr. Speaker, first of all, let me congratulate 
the gentleman from New Mexico (Mr. Udall) on the introduction of this 
bill. I also want to commend the chairman and ranking member for the 
efficient manner in which they have moved this legislation to the 
floor.
  Mr. Speaker, I rise in support of H.R. 2538, the Native American 
Entrepreneurial Development Act. This legislation would provide $7 
million to fund a 3-year program for technical assistance to Native 
American businesses.
  Mr. Speaker, the reality is that when we provide an opportunity for 
Native American businesses to grow and develop, to experience some 
sense of technical knowledge, to be able to come into the mainstream, 
then we are really doing the work, I think, that we were sent here to 
do.
  I do not want to be redundant, but I certainly want to commend again 
the gentleman from New Mexico for his sensitivity and understanding and 
recognition of the needs of the people that he represents. Again, I 
commend the chairman, the gentleman from Illinois (Mr. Manzullo), and 
the ranking member for the efficiency and the good work of this 
Committee on Small Business. With all due respect to other committees, 
Mr. Speaker, I think that this is probably one of the most bipartisan, 
one of the most efficient committees in Congress, and we all do an 
outstanding job on it.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield 1 minute to the 
gentlewoman from Ohio (Mrs. Jones).
  Mrs. JONES of Ohio. Mr. Speaker, I thank the gentleman for his 
leadership on this issue, and I thank the chairman for his leadership 
on the committee.
  I just rise very quickly to say that I had an opportunity to visit 
Ship Rock, New Mexico, with President Clinton when we went on the tour 
of the Digital Divide. At that time, I had a chance to visit an Indian 
reservation, and I had a chance to speak with and discuss with the 
people there the issues of small business. I am so happy that the 
gentleman has chosen and has had an opportunity to address this issue.
  Secondly, I had a chance to visit the Small Business Development 
Center in Hawaii where they were doing innovative things on a lot of 
little small islands where they were able to put the counselor for the 
Small Business Development Center on a computer at one end and the 
people on the small islands at the other end to engage in counseling. 
So I am so happy that the gentleman has taken the leadership in this 
area, and I rise in support of him and congratulate him on the work he 
is doing, and the chairman as well.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, let me just thank the chairman of the committee, the 
gentleman from Illinois (Mr. Manzullo), once again. I want to echo what 
has been said earlier, that we have one of the most bipartisan 
committees in the Congress, and I know because of all of the chairman's 
hard work we have gotten this bill through and gotten this done.
  I want to take the opportunity to thank the staff on both sides and 
my staff member, Tony Martinez, who has worked very hard on this.
  Members from both parties talked about visiting my district and 
learning from those experiences out there, and I think one of the 
things they learned is that we can make a real difference for Native 
American entrepreneurs with this piece of legislation.
  So let me once again just thank the gentleman from Illinois (Mr. 
Manzullo) for all of his hard work.
  Mr. RANGEL. Mr. Speaker, I rise today in support of the bill H.R. 
2538, an important piece of legislation for the Native American small 
businesses community.
  Now, more than ever, we need to develop and expand the Native 
American private sector. Industries employ a growing number of 
individuals on reservations. The expansion of small businesses 
positively impacts these communities by putting money directly into 
their hands and places them directly in control of their destinies.
  In addition to creating new small businesses and enlarging existing 
ones we must provide management, technical, and research assistance to 
Native Americans who seek to create, develop, or expand small 
businesses. Only by providing them full access to the necessary 
business counseling and technical assistance can we ensure their 
success, a success that is so important to the future of those 
communities.
  With our priority to support the Native American small business 
community, we build a stronger economy and provide jobs to tribal 
members. This will, in turn, open the doors for the future of the 
tribal Nations. Native Americans face various challenges and we have 
the obligation to actively pursue methods to improve the Native 
American standard of living.
  Mr. YOUNG of Alaska. Mr. Speaker, I rise in support of H.R. 2538 as 
amended, and wish to clarify how the program authorized in this bill 
operates with respect to my Alaska Native constituents.
  H.R. 2538 as amended does not differ in substance from the bill as 
reported by the Committee on Small Business. Rather, the measure under 
consideration today simply recognizes the unique Native American 
policies that Congress has implemented in the State of Alaska, and 
clarifies how the grant program the bill authorizes will be implemented 
in that State.
  In the 48 contiguous States, Congress's policy on Native Americans 
has focused on recognizing groups of Native Americans as ``federally 
recognized tribes'' that are distinct political entities and a majority 
of whose members reside on reservations and other land that is owned by 
the United States in trust.
  However, while Congress has routinely designated groups of Alaska 
Natives as ``tribes,'' it has done so for the sole purpose of ensuring 
that Alaska Natives are eligible for programs and services that the 
United States provides to Native Americans because of their status as 
Native Americans.
  Congress has not recognized any group of Alaska Natives as a 
``federally recognized tribe'' that is a distinct political entity.
  Instead, since 1884 Congress has required Alaska Natives to be, at 
all locations in Alaska, subject to the same criminal and civil state 
laws that non-Native Alaskans are required to observe.
  Consistent with that policy, in 1971 when it extinguished Alaska 
Native aboriginal title by enacting the Alaska Native Claims Settlement 
Act, Congress required Alaska Natives to organize business corporations 
under the laws of the state of Alaska and then directed the Secretary 
of the Interior to convey the corporations fee title to 44 million 
acres of Federal land.
  The amendments made to H.R. 2538 as reported by the Committee on 
Small Business simply acknowledge that Congress' Alaska Native policy 
is quite different from the Native American policy that Congress has 
implemented in the 48 contiguous States. It will also ensure that the 
intent of H.R. 2538 can be effectively met in Alaska for the benefit of 
Alaska Natives.
  I would like to thank the gentleman from New Mexico and the chairman 
and ranking members of the Small Business Committee, and their staff, 
for their assistance in making appropriate changes to the language in 
the bill as reported.
  These amendments will ensure the programs authorized by H.R. 2538 
assist Alaska Natives as intended. I support H.R. 2538 as amended.
  Mr. MATHESON. Mr. Speaker, it is with great pleasure that I rise 
today to support H.R. 2358, the Native American Entrepreneurial 
Development Act. This legislation is a great step forward for the small 
businesses owned and operated by Native Americans.
  As many of us know, there are over 1,000 Small Business Development 
Centers across the United States serving over 600,000 businesses. Over 
30 percent of those businesses are minority-owned. Unfortunately, while 
small businesses helped in our Nation's economic boom in the 1990s, 
Native American communities have lagged behind. Unemployment, 
especially on reservations, continues to be a rampant 45 percent. Even 
worse, nearly one in three Native Americans live far below the poverty 
line.
  This legislation focuses on a $7 million pilot program that will 
provide technical assistance

[[Page H8860]]

to Native American businesses. Since Native American businesses have 
grown at a rate of 84 percent over the last 5 years, H.R. 2358 will 
help more Native Americans find success as they launch companies and 
access the Small Business Development Center's network.
  I appreciate the work and leadership of my colleagues on this 
legislation. As we work together, I believe that we will find more 
positive solutions that will help Native Americans throughout the 
United States become more successful. I ask my colleagues to support 
H.R. 2358, the Native American Entrepreneurial Development Act, and 
give Native American businesses the opportunity to access capitol, hire 
strong, skilled workers, and successfully negotiate Federal, State, and 
local laws and regulations.
  Mr. KILDEE. Mr. Speaker, as co-chairman of the Congressional Native 
American Caucus, I rise in strong support of H.R. 2538, a bill that 
amends the Small Business Act to expand and improve the assistance 
provided by the Small Business Development Centers (SBDC) for Native 
American tribal members. Alaska Natives and Native Hawaiians. I want to 
thank my good friend from New Mexico, Congressman Tom Udall, for 
introducing this bill. I am proud to be an original cosponsor.
  Mr. Speaker, the bill establishes a 3-year pilot project that allows 
any SBDC in a State, whose Native American tribal members, Alaska 
Native, or Native Hawaiian populations are 1 percent of the State's 
total population, to apply for grants from the Small Business 
Administration. The grants will help the SBDCs to assist the small 
business owners with their entrepreneurial needs.
  The purpose of this bill is to create jobs and to foster economic 
development on tribal lands. It is my hope that by using the existing 
structure of the Small Business Administration's SBDC program, small 
businesses on tribal land will have a better chance for success. Due to 
limited resources, the SBDC program has had a difficult time providing 
counseling and technical assistance to small business owners on tribal 
land. This bill will provide SBDC the adequate resources it needs to 
reach out to small business owners in Indian country.
  Mr. Speaker, I ask my colleagues to support this measure.
  Mrs. MINK of Hawaii. Mr. Speaker, I rise today in support of H.R. 
2538, the Native American Small Business Development Act.
  Native people throughout our country continues to struggle because 
they lack the basic economic infrastructure to support businesses. 
Consequently, the poverty rate for native people remains at an 
unacceptable level. According to the Census Bureau, the poverty rate 
for American Indians and Alaska Natives averaged 25.9 percent from 1998 
through 2000.
  In Hawaii, census data indicates that Native Hawaiians continue to be 
clustered in the state's poorest areas. According to the State of 
Hawaii's Office of Hawaiian Affairs, Native Hawaiians significantly lag 
behind the state's averages for family income and high school 
graduation rates. The unemployment rate for Native Hawaiians living in 
Hawaii during 2000 was 7.2 percent, well above the state average of 4.3 
percent.
  Despite these sobering statistics, native people continue to show a 
strong entrepreneurial spirit. These businesses are gateways allowing 
individuals to find their way out of poverty.
  H.R. 2538 creates a 3-year pilot program to support this 
entrepreneurial spirit by providing grants to Small Business 
Development Centers that assist the small business needs of native 
people.
  Under this bill, Small Business Development Centers can obtain 
$300,000 grants to assist with outreach, development, and enhancement 
of small businesses owned by Indian tribe members, Native Alaskans, and 
Native Hawaiians. The bill will target the grants to businesses located 
on or near native lands, which will create new job opportunities for 
native people living in these areas.
  The bill require states to consult with local native groups to 
determine the best way to provide assistance and where to locate 
satellite business centers. The cooperative nature of the relationship 
between the Small Business Development Centers and native people will 
help ensure the success of the program.
  I urge my colleagues to vote for H.R. 2538 and help provide small 
business opportunities to Native Americans throughout America.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield back the balance of my 
time.
  Mr. MANZULLO. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion 
offered by the gentleman from Illinois (Mr. Manzullo) that the House 
suspend the rules and pass the bill, H.R. 2538, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A bill to amend 
the Small Business Act to expand and improve the assistance provided by 
Small Business Development Centers to Indian tribe members, Alaska 
Natives, and Native Hawaiians.''.
  A motion to reconsider was laid on the table.

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