[Congressional Record Volume 149, Number 51 (Monday, March 31, 2003)]
[House]
[Pages H2500-H2504]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO INDIAN TRIBE MEMBERS, 
                 NATIVE ALASKANS, AND NATIVE HAWAIIANS

  Mr. SHUSTER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1166) to amend the Small Business Act to expand and improve 
the assistance provided by Small Business Development Centers to Indian 
tribe members, Native Alaskans, and Native Hawaiians.
  The Clerk read as follows:

                               H.R. 1166

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

     SECTION 1. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Approximately 60 percent of Indian tribe members and 
     Native Alaskans live on or adjacent to Indian lands, which 
     suffer from an average unemployment rate of 45 percent.
       (2) Indian tribe members and Native Alaskans 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 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.
       (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.

[[Page H2501]]

       (5) Using the existing infrastructure of the Small Business 
     Development Center program, small businesses owned by Indian 
     tribe members, Native Alaskans, 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, Native Alaskans, and Native 
     Hawaiians and expand existing ones.
       (4) To provide management, technical, and research 
     assistance to small businesses owned by Indian tribe members, 
     Native Alaskans, and Native Hawaiians.
       (5) To seek the advice of local Tribal Councils on where 
     small business development assistance is most needed.
       (6) To ensure that Indian tribe members, Native Alaskans, 
     and Native Hawaiians have full access to existing business 
     counseling and technical assistance available through the 
     Small Business Development Center program.

     SEC. 2. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO 
                   INDIAN TRIBE MEMBERS, NATIVE ALASKANS, 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, 
     native alaskans, 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 
     on Indian lands of small business startups and expansions 
     owned by Indian tribe members, Native Alaskans, and Native 
     Hawaiians.
       ``(B) Eligible states.--For purposes of subparagraph (A), 
     an eligible State is a State that has a combined population 
     of Indian tribe members, Natives Alaskans, 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, Native Alaskans, 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 
     local Tribal Councils.
       ``(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' has the 
     meaning given the term `Indian country' in section 1151 of 
     title 18, United States Code, the meaning given the term 
     `Indian reservation' in section 151.2 of title 25, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this paragraph), and the meaning given the term `reservation' 
     in section 4 of the Indian Child Welfare Act of 1978 (25 
     U.S.C. 1903).
       ``(iii) Indian tribe.--The term `Indian tribe' has the 
     meaning given such term in section 8(a)(13).
       ``(iv) Indian tribe member.--The term `Indian tribe member' 
     means a member of an Indian tribe (other than a Native 
     Alaskan).
       ``(v) Native alaskan.--The term `Native Alaskan' has the 
     meaning given the term `Native' in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       ``(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 2004 through 2006.
       ``(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. 3. 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 local tribal counsels.--A State receiving 
     grants under this section shall request the advice of local 
     Tribal Councils on how best to provide assistance to Indian 
     tribe members, Native Alaskans, and Native Hawaiians and 
     where to locate satellite centers to provide such 
     assistance.''.

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


                             General Leave

  Mr. SHUSTER. 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 this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 1166 is identical to legislation the House passed 
unanimously December 5, 2001. Unfortunately, this bill did not pass the 
Senate last year. We are here today to try again.
  This bill simply establishes a 3-year pilot program providing grants 
to the Small Business Development Centers for assisting Native 
Americans, Native Alaskans, and Native Hawaiian populations with their 
small business development needs.
  Few people realize that 60 percent of our Native American population 
lives in or adjacent to Indian lands that suffer from an average 
unemployment rate of 45 percent. One-third of Native Americans live 
below the poverty level. However, the number of businesses owned by 
Native Americans grew by 84 percent between 1998 and 1997, as compared 
to all other businesses, which grew at only 7 percent over the same 
time period.
  It is quite clear that the entrepreneurial spirit of Native American 
small business ownership is the key to economic growth and 
revitalization of these often forgotten communities. Instead of 
creating a new program, H.R. 1166 uses the existing Small Business 
Development Center network to develop culturally sensitive 
entrepreneurial counseling and technical assistance programs for Native 
Americans.
  The SBDC network has a track record of success. Small businesses that 
use their service have a higher survival rate than the average small 
businesses not receiving such assistance. Any SBDC in a State whose 
Native American population is at least 1 percent of the State's total 
population can apply for a grant from the SBA. Such grants must be used 
to provide SBDC program assistance to Native Americans. The maximum 
grant size is $300,000 and the authorized level is capped at $7 million 
per year.
  Already this fiscal year, the Small Business Administration received 
a $2 million appropriation to develop Native American entrepreneur 
education programs. I join many of my colleagues, including the 
chairman of the Committee on Small Business, the gentleman from 
Illinois (Mr. Manzullo), who is an original cosponsor of this bill, in 
supporting H.R. 1166.
  Mr. Speaker, I reserve the balance of my time.

[[Page H2502]]

  Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, first of all, I would like to thank the gentleman from 
Illinois (Chairman Manzullo), chairman of the Committee on Small 
Business, and the ranking member, the gentlewoman from New York (Ms. 
Velazquez), for their work and commitment to expanding small business 
opportunities for all Americans and for working to bring this bill to 
the floor today.
  I would also like to thank the staff members of the committee for 
their hard work on this legislation and my colleagues who supported 
this bill by joining me as cosponsors.
  The important legislation before us today, H.R. 1166, allows Small 
Business Development Centers to apply for an additional Small Business 
Administration grant to provide specified services to assist with 
outreach, development, and enhancement on Indian lands of small 
business start-ups and expansions that are owned by Indian tribal 
members, Alaskan Natives, or Native Hawaiians.
  This legislation ensures participation of governing bodies of Indian 
tribes, Alaska Native entities, and Native Hawaiian organizations. 
Under H.R. 1166, States receiving a Small Business Development Center 
program grant are required to request advice from the appropriate 
governmental organization on how best to provide assistance to such 
members and where to locate satellite centers to provide such 
assistance. Our intent is to ensure these business development tools 
are provided in a culturally sensitive way.
  Mr. Speaker, small businesses create 75 percent of all new employment 
opportunities, make up 99 percent of all employers, and provide almost 
half of all sales in this country. As many of us have said before and 
will say again, small businesses are the fuel for the engine of 
economic development. That is why it is so imperative that we take 
steps to help ensure that small business development reaches the places 
in this country where economic prosperity has yet to be realized.
  The current economic situation on Native American lands is very 
grave. However, it does hold promise for the future. The average 
unemployment rate of these lands is over 10 times the national average. 
At the same time, small business creation is at an all-time high. 
Native American and Native Alaskan-owned small businesses grew by 84 
percent from 1992 to 1997, and their gross receipts grew by 179 percent 
in that same time period.
  Compare those figures to an overall small business growth rate of 7 
percent and to the gross receipt growth of 40 percent, and we can see 
why there is reason to be optimistic about the future of small business 
development on tribal lands.
  It is with these facts in mind and the desire to help Native 
American, Native Alaskan, and Native Hawaiian entrepreneurs capitalize 
on these positive developments that I introduce 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 the SBDCs can assist Native Americans with the information and 
opportunity to build sustainable businesses in their communities.
  In an effort to ensure the quality and success of the program, the 
proposal requires the SBA to include several items in the grant 
application.

                              {time}  1545

  In addition to the obvious requirements like requiring the 
applicant's goals and objectives, we also must see the applicant's 
experience in conducting programs on ongoing efforts designed to assist 
the business skills of small business owners. Also the capability of 
such applicant to provide training and services to a representative 
number of Native Americans, Native Alaskans, and Native Hawaiians is 
also important to this process.
  I have the great honor of representing 14 Pueblos, the Hickory Apache 
Nation, and a portion of the Navajo Nation. These communities are in 
great need of economic development, and it is clear we can do more to 
aid Native American entrepreneurs not only in my district but 
throughout the country as well. Not enough has been done to assist 
Native Americans in building their businesses. I hope to change this 
situation with the passage of this legislation.
  Mr. Speaker, I yield 2 minutes to the gentlewoman from Guam (Mr. 
Bordallo).
  Ms. BORDALLO. Mr. Speaker, I rise today in support of H.R. 1166, a 
bill to authorize the administration of grants to local small business 
development centers in States with significant populations of Native 
Americans, Native Alaskans, and Native Hawaiians. The gentleman from 
New Mexico (Mr. Udall) has carefully crafted this important legislation 
to address poverty and unemployment amongst those disadvantaged 
populations. I commend the gentleman and the House Committee on Small 
Business for focusing on the sizable socioeconomic problems faced by 
Native Americans.
  H.R. 1166 will enable small business development centers to assist 
Native Americans with job creation and economic growth. This measure 
will help foster self-determination among groups that have been 
historically marginalized by the Federal Government. This bill helps 
individuals to utilize their own valuable business skills so that their 
small business, and in turn their community, may prosper.
  I am in such strong support of the aims of H.R. 1166 that I believe 
the bill can be strengthened by expanding the eligible grant recipients 
to include small business development centers that work with the 
indigenous populations of Guam and American Samoa. Chamorros and 
Samoans from U.S. territories endure economic adversity similar to that 
experienced by Native Americans, Native Alaskans, and Native Hawaiians. 
I look forward to working with my colleagues to ensure that either in 
conference on this legislation, or on a similar proposal, that we take 
action to address the small business development needs of the 
indigenous populations of the United States territories.
  This bill gives real assistance to Native Americans, and I urge my 
colleagues to support its passage and to support economic development 
for all indigenous populations throughout the United States.
  Mr. UDALL of New Mexico. Mr. Speaker, we thank the gentlewoman for 
her service on the Committee on Small Business.
  Mr. Speaker, I yield 2 minutes to the gentleman from Hawaii (Mr. 
Case) who also serves on the Committee on Small Business and is a 
hardworking member on that committee.
  (Mr. CASE asked and was given permission to revise and extend his 
remarks.)
  Mr. CASE. Mr. Speaker, I commend the gentleman from New Mexico (Mr. 
Udall) for his work on this legislation and thank him.
  I rise in very strong support for this legislation because this bill 
perfectly melds two objectives that we want to accomplish here in our 
Congress. The first, of course, is to support small business. We all 
know and the gentleman has outlined how strong small business can be. 
It is the backbone of our economy. It is where much of innovation in 
our country comes from, and it is an area where the need for 
coordination is great. In my own State of Hawaii almost all of the 
businesses are small business-related, and they have the same needs as 
throughout the rest of our country to coordinate those efforts. And 
this is an area in which the Federal Government's assistance is so well 
received because of the return on investment, a return on investment of 
roughly six times the amount invested in these small business 
development centers, returns to the bottom line in terms of increased 
tax revenue and employment.
  The second goal, of course, is the goal of improving the lot of our 
indigenous peoples, whether they be Native Americans or Native 
Hawaiians. I think we all know that the route to improving the lot of 
our indigenous people lies through self-sufficiency. And my own belief, 
and this legislation makes very clear that the belief of most of us, is 
that the way to do that is through encouraging economic activity. So to 
the extent that we can encourage that economic activity, we can take 
the situation that many of our indigenous people find ourselves in, 
especially Native Hawaiians in my home

[[Page H2503]]

State and improve their lot, improve their self-sufficiency, take them 
off the rolls, whether they be the health care rolls, the welfare 
rolls. This is the way too for us to go. This is money well spent.
  Mr. Speaker, I thank and commend the gentleman again for introducing 
this legislation and I certainly hope we can pass this expeditiously.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield 3 minutes to the 
gentleman from North Carolina (Mr. Ballance). He is the ranking member 
on the Subcommittee on Rural Enterprises, Agriculture, and Technology.
  (Mr. BALLANCE asked and was given permission to revise and extend his 
remarks.)
  Mr. BALLANCE. Mr. Speaker, I am honored this evening to join with my 
colleagues on this important issue.
  A careful reading of history reminds us that the first Americans, 
whom we now call Native Americans and sometimes we call Indians, those 
whose ancestors walked the Trail of Tears, part of which is in my 
native State of North Carolina, those who suffered through broken 
promises from our government, and even as we stand here today in combat 
in Federal court with our Department of Interior over how to account 
for funds derived from lands that America allegedly set aside for 
Native Americans, we all know how important small businesses are all 
over our Nation and in every community, where they make up 75 percent 
of new employment and, by some figures, more than 90 percent of all new 
employers.
  The average unemployment rate of Native Americans, particularly those 
on the reservation, languishes today around 45 percent. That is 
unacceptable in modern America, when we keep in mind that the national 
unemployment rate in February of this year was 5.8 percent. Even more 
alarming, one-third of Native Americans currently live below the 
poverty line. And so that is why I am honored to stand with my 
colleagues in support of this important legislation which I understand 
was introduced and went forward last year but did not make it all the 
way. We are hopeful that we can pass this legislation in the House of 
Representatives and it can become law.
  Native American small businesses grew at a rate of 84 percent over 
the last 5 years. And we not only have a legal, I think, 
responsibility, but we have a moral responsibility to ensure that this 
trend continues to ensure that we make efforts to right past wrongs, 
and for selfish reasons, to ensure that in our country that every 
segment of our community has an opportunity for its young people to 
move forward and to enjoy the American dream. I am strongly in support 
of this legislation and I urge my colleagues to pass it.
  Mr. UDALL of New Mexico. Mr. Speaker, if the gentleman from 
Pennsylvania (Mr. Shuster) has no further speakers, I am prepared to 
close.
  Mr. SHUSTER. Mr. Speaker, we have no further speakers. I reserve my 
right to close.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, let me thank the gentleman from Pennsylvania (Mr. 
Shuster) for his management of this bill and for his hard work here on 
the floor today.
  Mr. Speaker, I would again like to thank the chairman of the 
Committee on Small Business and the ranking member, the gentlewoman 
from New York (Ms. Velazquez) for their commitment to passing this 
important legislation. I have high hopes for the impact of this 
legislation and the impact it will have on small business and economic 
development on tribal lands.
  As some of my colleagues have mentioned today, the average 
unemployment rate of Native American communities, particularly on 
reservations, is around 45 percent, while one-third of Native Americans 
currently live below the Nation's poverty level. Mr. Speaker, this 
situation is unacceptable.
  The persistent poverty that is prevalent on tribal lands must come to 
an end, and I believe that passing H.R. 1166 is an important step 
towards achieving this goal. I urge my colleagues to support this 
legislation.
  And just one moment before I yield back, let me also thank the 
committee staff, my former legislative director, Tony Martinez; my 
legislative assistant, Mike Collins; and Michael Day, the minority 
staff director of the Committee on Small Business.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would close by first commending and congratulating the 
gentleman from New Mexico (Mr. Udall) for his hard work on this 
legislation and his support for the small business men and women across 
America. I also want to take this opportunity to thank the ranking 
member, the gentlewoman from New York (Ms. Velazquez) for her support 
on H.R. 1166. And I finally want to thank the gentleman from Illinois 
(Chairman Manzullo) for his leadership and his passion for defending 
the backbone of the American economy and that is small business.
  Mr. MANZULLO. Mr. Speaker, I am delighted that we were able to 
expeditiously move this legislation on the floor today. This bill is 
identical to legislation this House unanimously approved on December 5, 
2001. It is unfortunate that the Senate was unable to take this 
legislation up on the Senate floor last year but we are here today to 
try again.
  The purpose of H.R. 1106 is to create jobs, to spur entrepreneurship, 
and to stimulate the economies and foster economic development on 
Indian lands. Further, the purpose of the Act is to help in the 
creation of new small businesses owned and managed by Indian tribe 
members, Native Alaskans, and Native Hawaiians and to help expand such 
small businesses that already exist. The Act will provide much needed 
management, technical, and research assistance to small businesses 
owned by Indian tribe members, Native Alaskans, and Native Hawaiians. 
The Act will help insure that Indian tribe members, Native Alaskans, 
and Native Hawaiians have full access to existing counseling and 
technical assistance provided through the Small Business Development 
Center (SBDC) program. In providing entrepreneurial assistance, a State 
receiving a grant under the provisions of the Act is required to seek 
the advice of local Tribal Councils on where small business development 
assistance is needed.
  Approximately 60 percent of Indian tribe members and Native Alaskans 
live on or in the immediate vicinity of Indian lands and suffer from an 
average unemployment rate of 45 percent. Currently, Indian tribe 
members and Native Alaskans own more than 197,000 business enterprises 
and generate revenues in excess of $34 billion.
  The service industry, the largest sector, accounts for 17 percent of 
the businesses, and 15.7 percent of the total revenues. The second 
largest sector is construction, which accounts for 13.9 percent of the 
businesses and 15.7 percent of the total revenues. The third largest 
sector, the retail trades, accounts for 7.5 percent of the businesses 
and 13.4 percent of the total revenues.
  The number of businesses owned by Indian tribe members and Native 
Alaskans grew by 84 percent during the period from 1992 to 1997, while 
businesses, generally, grew by only seven percent. During the same 
period, the gross receipts for Indian tribe members and Native Alaskan 
business owners increased by 179 percent, in comparison with the 
business community, as a whole, where the gross receipts for the same 
period grew only by 40 percent.
  In the past, the SBDC program with more than 1,100 offices throughout 
the United States has provided cost-effective business counseling and 
technical assistance to small businesses. For example, clients 
receiving long-term counseling under the program in 1998 generated 
additional tax revenues of $468 million, which was approximately six 
times the cost of the program to the Federal government.

  By using the existing infrastructure of the SBDC program, it is 
anticipated that small businesses owned by Indian tribe members, Native 
Alaskans, and Native Hawaiians, who receive services under the Act, 
will have a higher survival rate than the average small businesses not 
receiving such services. Further, increased assistance through SBDC 
counseling has in the past been able to reduce defaults under Small 
Business Administration (SBA) lending programs.
  The business counseling and technical assistance, provided for under 
this Act, is critical on Indian land where, without such assistance, 
similar services are scarce and expensive. Past and current efforts by 
SBDCs to assist Native American populations located on or along 
reservation lands have proven difficult. In addition, the lack of 
resources makes it difficult to raise an equal amount of matching funds 
to specifically assist Native Americans.
  H.R. 1166 will establish a three-year pilot project providing grants 
to SBDCs for assisting Indian tribe members, Native Alaskans, and 
Native Hawaiian populations with their entrepreneurial needs. The 
purpose is to stimulate

[[Page H2504]]

the economies on reservation lands through the creation and expansion 
of small businesses by ensuring the target population has full access 
to important business counseling and technical assistance through the 
SBDC program.
  Any SBDC in a State, whose Indian tribe members, Native Alaskan, and 
Native Hawaiian populations are one percent of the State's total 
population, can apply for a grant from the SBA. Such grants must be 
used to provide SBDC program assistance to Native Americans. Grants 
under the Act are limited to $300,000 and the amount authorized to be 
appropriated annually, in each of the fiscal years 2004, 2005, and 
2006, is $7 million. No matching funds are required from the States.
  Services by SBDCs are to be provided to benefit the target population 
on tribal lands and reservations, but an individual center need not be 
located on each tribal land location or reservation. If the target 
population is in more than one location or reservation within a State, 
the center should be situated in a location that optimizes access by 
all those serviced by the center. H.R. 1166 does not limit in any way, 
the number of centers or subcenters a state program may implement. I 
expect the SBA Administrator to balance the need for multiple sites 
with the quality of assistance and counseling when awarding grants. 
Consultation with the local Tribal Council is required in determining 
those locations in most need and where the best access may be attained.
  SBA is responsible for designing the grant application, which should 
provide essential information, but should not be burdensome to 
applicants. At a minimum, the application should contain information 
concerning the applicant's (1) goals and objectives, (2) prior 
experience in providing entrepreneurial and technical assistance to 
small businesses, (3) the ability to provide training and services to 
Indian tribe members, Native Alaskans, and Native Hawaiians, and (4) 
the extent of consultation with local Tribal Councils. In addition, the 
applicant should identify the location of a proposed center, and the 
amount of funding required.
  Within 180 days after the enactment of H.R. 1166, the SBA 
Administrator is required to issue final regulations, after a notice 
and comment period, that implement the requirements of the Act. Such 
regulations shall include standards for the educational, technical, and 
support services to be provided and for a work plan for providing 
assistance to the targeted community.
  The Act's predecessor, H.R. 2538, was subject to a hearing and a 
committee mark-up in the 107th Congress. The Congressional Budget 
Office (CBO) estimated that implementing the bill would cost $20 
million over the next four years and contains no intergovernmental or 
private sector mandates. H.R. 2538 also unanimously passed the House on 
December 5, 2001 but unfortunately saw no action on the Senate floor, 
even though a companion bill was discussed and marked-up in the Senate 
Small Business and Entrepreneurship Committee. That's why I am pleased 
to join again with my good friend from New Mexico, in cosponsoring H.R. 
1166 in this Congress and seeing it pass the House yet once again. 
Hopefully, the other body will look more kindly upon the legislation 
this year.
  Mrs. CHRISTENSEN. Mr. Speaker, I rise today in support of H.R. 1166, 
a bill to enhance the capacity of Small Business Development Centers 
(SBDCs) to provide assistance to Native American tribal members, Alaska 
Natives and Native Hawaiians. I would like to commend my colleague and 
friend, Representative Tom Udall, for his work on, once again, bringing 
this important legislation to the floor.
  SBDCs are the premier technical assistance providers to America's 
entrepreneurs. Many small businesses often operate near or at their 
profit margin and do not have additional resources to hire legal or 
technical experts. Research shows that small businesses that receive 
technical assistance are twice as likely to succeed in the marketplace 
than those that do not. In addition to providing technical assistance 
to the general small business community, SBDCs should also target that 
segment of our population with special and unique needs.
  The Native American population is one such population. The United 
States government has an endless commitment to addressing the economic 
and health disparities of Native Americans. Although we have passed 
other legislation such as the Indian Reorganization Act of 1934 and the 
Indian Self-Determination Act of 1975, which both encourage self-
sufficiency in an attempt to amend the effects of relocation, not 
enough has been done to ensure success of economic development within 
this community. That is why I support this bill. The ``Native American 
Small Business Development Act'' (NASBD) will allow Native Americans to 
strengthen and expand their small business infrastructure. This would 
also provide more stable employment and move closer to ending the 
desperate and disparate conditions on reservations. More importantly, 
this bill will allow Native American entrepreneurs to better utilize 
the current SBDC network.
  The Native American population represents a disadvantaged and 
underserved segment of our nation. One-third of Native Americans 
currently live below the nation's poverty level and suffer from the 
highest rate in health disparities. Despite these difficulties, Native 
American small businesses grew at a rate of 84 percent over the last 
five years. But with technical assistance specifically geared toward 
meeting the unique needs of this population, we can create a more 
prosperous economic community in the Native American population, Alaska 
Natives and Native Hawaiians.
  This legislation passed the House of Representatives in the previous 
Congress with strong bipartisan support but failed to reach the Senate 
floor last year. I remain in support of this legislation and committed 
to seeing its complete passage.
  Mr. SHUSTER. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Petri). The question is on the motion 
offered by the gentleman from Pennsylvania (Mr. Shuster) that the House 
suspend the rules and pass the bill, H.R. 1166.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. SHUSTER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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