[Congressional Record Volume 153, Number 98 (Monday, June 18, 2007)]
[House]
[Pages H6615-H6620]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS ACT OF 2007
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2359) to reauthorize programs to assist small business
concerns, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2359
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``SBA
Entrepreneurial Development Programs Act of 2007''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--REVISIONS TO SMALL BUSINESS DEVELOPMENT CENTERS
Sec. 101. Small Business Development Centers operational changes.
TITLE II--GRANT INITIATIVES
Sec. 201. Capital Access Initiative.
Sec. 202. Disaster Recovery Program.
Sec. 203. Innovation and Competitiveness Services to Manufacturers
Initiative.
Sec. 204. Mature Entrepreneurs Assistance Program.
Sec. 205. Small Business Sustainability Initiative.
Sec. 206. Grants to small business development centers to provide
assistance in securing affordable health insurance.
Sec. 207. National regulatory assistance.
Sec. 208. Report.
TITLE III--SCORE
Sec. 301. Repeal of Active Corporation of Executives.
Sec. 302. Increasing the proportion of SCORE volunteers from socially
and economically disadvantaged backgrounds.
Sec. 303. Benchmark reporting.
TITLE I--REVISIONS TO SMALL BUSINESS DEVELOPMENT CENTERS
SEC. 101. SMALL BUSINESS DEVELOPMENT CENTERS OPERATIONAL
CHANGES.
(a) Accreditation Requirement.--Section 21(a)(1) of the
Small Business Act (15 U.S.C. 648(a)(1)) is amended--
(1) in the proviso, by inserting before ``institution'' the
following: ``accredited'';
(2) in the sentence beginning ``The Administration shall'',
by inserting before ``institutions'' the following:
``accredited''; and
(3) by adding at the end the following new sentence: ``As
used in this paragraph, the term `accredited institution of
higher education' means an institution that is accredited as
described in section 101(a)(5) of the Higher Education Act of
1965 (20 U.S.C. 1001(a)(5)).''
(b) Program Negotiations.--Section 21(a)(3) of the Small
Business Act (15 U.S.C. 648(a)(3)) is amended, in the matter
before subparagraph (A), by inserting before ``agreed'' the
following: ``mutually''.
(c) Contract Negotiations.--Section 21(a)(3)(A) of the
Small Business Act (15 U.S.C. 648(a)(3)(A)) is amended by
inserting after ``uniform negotiated'' the following:
``mutually agreed to''.
(d) No SBA Interference in SBDC Hiring.--Section
21(c)(2)(A) of that Act (15 U.S.C. 648(c)(2)(A)) is amended
by inserting after ``full-time staff'' the following: ``, the
hiring of which is carried out by the center without
interference from, and without influence by, any officer or
employee of the Administration,''.
(e) Content of Consultations Covered by Privacy
Requirements.--Section 21(a)(7)(A) of that Act (15 U.S.C.
648(a)(7)(A)) is amended by inserting after ``under this
section'' the following: ``, or the content of any
consultation with such an individual or small business
concern,''.
(f) Repeal of Authority To Use Authorized Amounts for
Administrative Expenses.--Section 21(a)(4)(C)(v) of that Act
(15 U.S.C. 648(a)(4)(C)(v)) is amended by amending subclause
(I) to read as follows:
``(I) In general.--Of the amounts made available in any
fiscal year to carry out this section, not more than $500,000
may be used by the Administration to pay expenses enumerated
in subparagraphs (B) through (D) of section 20(a)(1).''.
(g) No Cap on Non-Matching Portability Grants in the Event
of a Disaster.--Section 21(a)(4)(C)(viii) of that Act (15
U.S.C. 648(a)(4)(C)(viii)) is amended by adding at the end
the following: ``However, in the event of a disaster, the
dollar limitation in the preceding sentence does not
apply.''.
(h) Definition of SBDC.--Section 21(a) of that Act (15
U.S.C. 648(a)) is amended by adding at the end the following:
``(8) Definition.--For the purposes of this section, a
Small Business Development Center is--
``(A) the entity selected by the Administrator to receive
funds pursuant to the funding formula set forth in paragraph
(4); or
``(B) the site at which the services specified by this
section are delivered.''.
(i) Limitation on Distribution to SBDCs.--Section 21(b) of
that Act (15 U.S.C. 648(b)) is amended by adding at the end
the following:
``(4) Limitation on Distribution to Small Business
Development Centers.--
``(A) In general.--Except as provided in this paragraph,
the Administrator shall not distribute funds to a Small
Business Development Center if the State in which the Small
Business Development Center is located is served by more than
one Small Business Development Center. For purposes of this
limitation, the term Small Business Development Center shall
have the meaning set forth in subsection (a)(8).
``(B) Unavailability exception.--The Administrator may
distribute funds to two Small Business Development Centers,
as that term is defined in subsection (a)(8)(A), if no
applicant has applied to serve the entire State. Except as
provided in subparagraph (C), the Administrator is prohibited
from distributing funds to more than two Small Business
Development Centers.
``(C) Grandfather clause.--The limitations in this
paragraph shall not apply for any State in which more than
one Small Business Development Center received funding prior
to January 1, 2007.''.
(j) Reporting of Broadband Service Purchases.--Section
21(c) of that Act (15 U.S.C. 648(c)) is amended by adding at
the end the following:
``(9) Reporting of broadband service purchases.--
``(A) In general.--Pursuant to policies adopted by the
Administrator, Small Business Development Centers shall
report information to the Administrator by nine-digit zip
code--
``(i) whether the individual seeking counseling purchases
broadband service at the address reported to the Small
Business Development Center;
``(ii) if the reported address is different than the
business address, whether broadband service is purchased at
the business address; and
``(iii) if broadband service is not purchased at the
addresses set forth in clauses (i) and (ii).
``(B) Reporting.--The Administrator shall aggregate data by
nine-digit zip code reporting such information to the Federal
Communications Commission and the National Telecommunication
and Information Administration.''.
TITLE II--GRANT INITIATIVES
SEC. 201. CAPITAL ACCESS INITIATIVE.
Section 21 of the Small Business Act (15 U.S.C. 648) is
amended by adding at the end the following:
``(n) Capital Access Initiative.--
``(1) In general.--A lead Small Business Development Center
may apply for an additional grant to carry out a capital
access initiative program.
``(2) Elements of program.--Under a program under paragraph
(1), the Center shall--
``(A) provide capital education by creating a model
template to assist individuals in preparing for a broad range
of capital offerings;
``(B) assess company potential by conducting company
assessments, which shall include, at a minimum, risk analysis
and mapping of best capital opportunities;
``(C) prepare individuals to request capital by advising on
the various aspects of such a request, including the business
plan, the financials, the projections, the presentation, and
the approach;
``(D) provide education on the rules of access engagement,
organizations involved and available, and approaches that
maximize successful requests; and
``(E) deliver ongoing assistance once capital is secured.
``(3) Support.--In carrying out this subsection, the
Administrator shall obtain support from national associations
and from organizations such as regional development groups
and `angel' groups founded by Small Business Development
Centers.
``(4) Minimum amount.--Each grant under this subsection
shall be for at least $100,000.
[[Page H6616]]
``(5) Maximum amount.--No applicant may receive more than
$300,000 in grants under this subsection in a fiscal year.
``(6) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
subsection.''.
SEC. 202. DISASTER RECOVERY PROGRAM.
Section 21 of the Small Business Act (15 U.S.C. 648), as
amended by this Act, is further amended by adding at the end
the following:
``(o) Disaster Recovery Program.--
``(1) In general.--A lead Small Business Development Center
may apply for an additional grant to carry out a disaster
recovery program.
``(2) Elements of program.--Under a program under paragraph
(1), the Center shall--
``(A) serve, in partnership with the Administration's
disaster center response teams, as a locally based resource
for first responders by--
``(i) rotating personnel into a disaster area for immediate
response on the ground, processing applications, developing
an evaluating recovery business models, and distributing
accurate information; and
``(ii) providing continued interaction, over time, with
businesses that are recovering from a disaster;
``(B) participate in ongoing national disaster training;
``(C) develop specific State-level disaster response plans;
and
``(D) form a network with other Centers to serve as a
platform for sharing disaster expertise, training, and human
resources.
``(3) Minimum amount.--Each grant under this subsection
shall be for at least $50,000.
``(4) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
subsection.''.
SEC. 203. INNOVATION AND COMPETITIVENESS SERVICES TO
MANUFACTURERS INITIATIVE.
Section 21 of the Small Business Act (15 U.S.C. 648), as
amended by this Act, is amended by adding at the end the
following:
``(p) Innovation and Competitiveness Services to
Manufacturers Initiative.--
``(1) In general.--A lead Small Business Development Center
may apply for an additional grant to carry out an innovation
and competitiveness services to manufacturers initiative
program.
``(2) Elements of program.--Under a program under paragraph
(1), the Center shall--
``(A) participate in national training institutes to
provide training to all programs of the Center to assist
those programs to qualify for technology accreditation
designation;
``(B) develop, disseminate, and regularly update best
practices `toolkits' that include best practices for
resources, training programs, consultative approaches, and
support services;
``(C) recruit and engage significant local assets and
resources (such as colleges, universities, economic
development organizations, and trade associations) in each
State;
``(D) launch nationally a locally based but common themed
marketing program, targeted at small manufacturers;
``(E) undertake aggressive outreach to increase the levels
of innovation and competitiveness, focusing on business
advisement and training for manufacturers;
``(F) provide ongoing professional development to personnel
of the Center and of other resource partners; and
``(G) develop and report performance, using common
evaluation metrics and outcome measurements.
``(3) Minimum amount.--Each grant under this subsection
shall be for at least $150,000.
``(4) Maximum amount.--A grant under this subsection may
not exceed $500,000.
``(5) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
subsection.''.
SEC. 204. MATURE ENTREPRENEURS ASSISTANCE PROGRAM.
Section 21 of the Small Business Act (15 U.S.C. 648), as
amended by this Act, is amended by adding at the end the
following:
``(q) Mature Entrepreneurs Assistance Program.--
``(1) In general.--A lead Small Business Development Center
may apply for an additional grant to carry out a mature
entrepreneurs assistance program.
``(2) Elements of program.--Under a program under paragraph
(1), the Center shall--
``(A) provide advisors and training resources to assist
business owners in recognizing and developing transition
plans, including by--
``(i) providing training and educational screening
processes on the potential benefits and hazards of self-
employment; and
``(ii) developing courses, consulting processes, and highly
targeted resource materials, and deploying them throughout
the Small Business Development Center network;
``(B) link business owners with additional resource service
providers to prepare businesses for transition, including by
increasing partnership opportunities, particularly with the
Service Corps of Retired Executives (SCORE);
``(C) identify business opportunities for those interested
in acquiring businesses;
``(D) help individuals identify and acquire financing for
acquisition; and
``(E) provide continuing support once transition has
occurred.
``(3) Minimum amount.--Each grant under this subsection
shall be for at least $175,000.
``(4) Maximum amount.--A grant under this subsection may
not exceed $350,000.
``(5) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
subsection.''.
SEC. 205. SMALL BUSINESS SUSTAINABILITY INITIATIVE.
Section 21 of the Small Business Act (15 U.S.C. 648), as
amended by this Act, is amended by adding at the end the
following:
``(r) Small Business Sustainability Initiative.--
``(1) In general.--A lead Small Business Development Center
may apply for an additional grant to carry out a small
business sustainability initiative program.
``(2) Elements of program.--Under a program under paragraph
(1), the Center shall--
``(A) provide necessary support to smaller and medium-sized
businesses to--
``(i) evaluate energy efficiency and green building
opportunities;
``(ii) understand the cost benefits of energy efficiency
and green building opportunities;
``(iii) secure financing to achieve energy efficiency or to
construct green buildings; and
``(iv) empower management to implement energy efficiency
projects;
``(B) assist entrepreneurs with clean technology
development and technology commercialization through--
``(i) technology assessment;
``(ii) intellectual property;
``(iii) Small Business Innovation Research submissions;
``(iv) strategic alliances;
``(v) business model development; and
``(vi) preparation for investors; and
``(C) help small business improve environmental performance
by shifting to less hazardous materials and reducing waste
and emissions at the source, including by providing
assistance for businesses to adapt the materials they use,
the processes they operate, and the products and services
they produce.
``(3) Minimum amount.--Each grant under this subsection
shall be for at least $150,000.
``(4) Maximum amount.--A grant under this subsection may
not exceed $300,000.
``(5) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
subsection.''.
SEC. 206. GRANTS TO SMALL BUSINESS DEVELOPMENT CENTERS TO
PROVIDE ASSISTANCE IN SECURING AFFORDABLE
HEALTH INSURANCE.
(a) Grant Authority.--The Administrator of the Small
Business Administration (hereafter in this section referred
to as the Administrator) may award a grant under this section
to a lead small business development center (as described
under section 21 of the Small Business Act (15 U.S.C. 648)).
(b) Use of Funds.--A recipient of a grant under this
section shall use the grant only for the purpose of providing
to the owner of a small business concern assistance in
identifying and securing affordable health insurance for
their business and employees. A recipient of such a grant
shall identify Federal, State, and local initiatives designed
to assist small businesses and provide such education
information to small business concerns seeking assistance on
obtaining health insurance. A recipient of such a grant shall
also work with health insurance providers in the area to
identify premiums charged on health insurance for small
business. A recipient of such a grant shall also attempt to
negotiate lower health insurance premiums for small business
concerns that seek the assistance of the recipient.
(c) Minimum Grant Amount.--A grant under this section may
not be in an amount less than $200,000.
(d) Application.--Each applicant for a grant under this
section shall submit to the Administrator an application in
such form as the Administrator may require. The application
shall include information regarding the applicant's goals and
objectives for helping address entrepreneur's concerns with
health insurance costs.
(e) Report to Administrator.--As a condition of receiving a
grant under this section, the Administrator shall require the
recipient of a grant to submit to the Administrator, not
later than 18 months after the date on which the grant is
received, a report describing how the grant funds were used.
(f) Cooperative Agreements and Contracts.--The
Administrator may enter into a cooperative agreement or
contract with the recipient of a grant under this section to
provide additional assistance that furthers the purposes of
this section.
(g) Applicability of Grant Requirements.--An applicant for
a grant under this section shall comply with all of the
requirements applicable to a grantee under section 21 of the
Small Business Act, except that the matching funds
requirements of such section shall not apply.
(h) Evaluation of Program.--Not later than March 31, 2009,
the Administrator shall submit to Congress a report that
contains an
[[Page H6617]]
evaluation of the grant program under this section.
(i) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
subsection.
SEC. 207. NATIONAL REGULATORY ASSISTANCE.
The Small Business Act is amended by inserting after
section 21 (15 U.S.C. 648) the following:
``SEC. 21A. SMALL BUSINESS REGULATORY ASSISTANCE.
``(a) Definitions.--In this section, the following
definitions apply:
``(1) Association.--The term `Association' means the
association recognized by the Administrator of the Small
Business Administration under section 21(a)(3)(A).
``(2) Participating small business development center.--The
term `participating Small Business Development Center' means
a Small Business Development Center participating in the
program.
``(3) Program.--The term `program' means the regulatory
assistance program established under this section.
``(4) Regulatory compliance assistance.--The term
`regulatory compliance assistance' means assistance provided
by a Small Business Development Center to a small business
concern to enable the concern to comply with Federal
regulatory requirements.
``(5) Small business development center.--The term `Small
Business Development Center' means a lead Small Business
Development Center described in section 21.
``(6) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, Guam, and American Samoa.
``(b) Authority.--In accordance with this section, the
Administrator shall establish a program to provide regulatory
compliance assistance to small business concerns through
selected Small Business Development Centers, the Association
of Small Business Development Centers, and Federal compliance
partnership programs.
``(c) Small Business Development Centers.--
``(1) In general.--In carrying out the program, the
Administrator shall enter into arrangements with selected
Small Business Development Centers under which such Centers
shall provide--
``(A) access to information and resources, including
current Federal and State nonpunitive compliance and
technical assistance programs similar to those established
under section 507 of the Clean Air Act (42 U.S.C. 7661f);
``(B) training and educational activities;
``(C) confidential, free-of-charge, one-on-one, in-depth
counseling to the owners and operators of small business
concerns regarding compliance with Federal and State
regulations, as long as such counseling is not considered to
be the practice of law in a State in which a Small Business
Development Center is located or in which such counseling is
conducted;
``(D) technical assistance;
``(E) referrals to experts and other providers of
compliance assistance who meet such standards for
educational, technical, and professional competency as are
established by the Administrator; and
``(F) access to the Internet and training on Internet use,
including the use of the Internet website established by the
Administrator under subsection (d)(1)(C).
``(2) Reports.--
``(A) In general.--Each selected Small Business Development
Center shall transmit to the Administrator a quarterly report
that includes--
``(i) a summary of the regulatory compliance assistance
provided by the center under the program; and
``(ii) any data and information obtained by the center from
a Federal agency regarding regulatory compliance that the
agency intends to be disseminated to small business concerns.
``(B) Electronic form.--Each report required under
subparagraph (A) shall be transmitted in electronic form.
``(C) Interim reports.--A participating Small Business
Development Center may transmit to the Administrator such
interim reports as the Center considers appropriate.
``(D) Limitation on disclosure requirements.--The
Administrator shall not require a Small Business Development
Center to disclose the name or address of any small business
concern that received or is receiving assistance under the
program, except that the Administrator shall require such a
disclosure if ordered to do so by a court in any civil or
criminal action.
``(d) Data Repository and Clearinghouse.--
``(1) In general.--In carrying out the program, the
Administrator shall--
``(A) act as the repository of and clearinghouse for data
and information submitted by Small Business Development
Centers;
``(B) submit to the President, the Committee on Small
Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the House of Representatives
an annual report that includes--
``(i) a description of the types of assistance provided by
participating Small Business Development Centers under the
program;
``(ii) data regarding the number of small business concerns
that contacted participating Small Business Development
Centers regarding assistance under the program;
``(iii) data regarding the number of small business
concerns assisted by participating Small Business Development
Centers under the program;
``(iv) data and information regarding outreach activities
conducted by participating Small Business Development Centers
under the program, including any activities conducted in
partnership with Federal agencies;
``(v) data and information regarding each case known to the
Administrator in which one or more Small Business Development
Centers offered conflicting advice or information regarding
compliance with a Federal or State regulation to one or more
small business concerns;
``(vi) any recommendations for improvements in the
regulation of small business concerns; and
``(vii) a list of regulations identified by the
Administrator, after consultation with the Chief Counsel for
Advocacy of the Administration, who shall review such list,
and the Small Business and Agriculture Regulatory Enforcement
Ombudsman, as being most burdensome to small business
concerns, and recommendations to reduce or eliminate the
burdens of such regulations; and
``(C) establish an Internet website that--
``(i) provides access to Federal, State, academic, and
industry association Internet websites containing industry-
specific regulatory compliance information that the
Administrator deems potentially useful to small businesses
attempting to comply with Federal regulations; and
``(ii) arranges such Internet websites in industry-specific
categories.
``(e) Review of Burdensome Regulations and Petition for
Agency Review.--
``(1) Transmission of list of regulations to chief counsel
for advocacy.--The Administrator shall transmit to the Chief
Counsel for Advocacy of the Administration a copy of the list
of regulations submitted under subsection (d)(1)(B) as part
of the annual report required by that subsection.
``(2) Review of list of regulations.--The Chief Counsel for
Advocacy shall review the list of regulations transmitted
under paragraph (1) and identify any regulation that--
``(A) is eligible for review in accordance with section 610
of title 5, United States Code;
``(B) has a significant impact on a substantial number of
small business concerns that is substantially different from
the impact indicated in the final regulatory flexibility
analysis for that regulation, as published with the final
regulation in the Federal Register; or
``(C) has a significant impact on a substantial number of
small business concerns and for which no final regulatory
flexibility analysis was ever performed.
``(3) Notification and agency review.--With respect to any
regulation identified under paragraph (2) the Chief Counsel
for Advocacy shall--
``(A) notify the appropriate Federal rulemaking agency and
the Office of Information and Regulatory Affairs of the
Office of Management of the identification of such rule or
regulation; and
``(B) request the review of such regulation--
``(i) in accordance with section 610 of title 5, United
States Code; or
``(ii) for any impact it has on small business concerns.
``(4) Annual report.--The Chief Counsel for Advocacy shall
publish an annual report containing a list of any regulation
identified under paragraph (2) and the disposition by the
appropriate agency.
``(f) Eligibility.--
``(1) In general.--A Small Business Development Center
shall be eligible to receive assistance under the program
only if the center is certified under section 21(k)(2).
``(2) Waiver.--With respect to a Small Business Development
Center seeking assistance under the program, the
Administrator may waive the certification requirement set
forth in paragraph (1) if the Administrator determines that
the center is making a good faith effort to obtain such
certification.
``(g) Selection of Participating State Programs.--
``(1) Establishment of program.--In consultation with the
Association and giving substantial weight to the
Association's recommendations, the Administrator shall select
the Small Business Development Center programs of 2 States
from each of the following groups of States to participate in
the program:
``(A) Group 1: Maine, Massachusetts, New Hampshire,
Connecticut, Vermont, and Rhode Island.
``(B) Group 2: New York, New Jersey, Puerto Rico, and the
Virgin Islands.
``(C) Group 3: Pennsylvania, Maryland, West Virginia,
Virginia, the District of Columbia, and Delaware.
``(D) Group 4: Georgia, Alabama, North Carolina, South
Carolina, Mississippi, Florida, Kentucky, and Tennessee.
``(E) Group 5: Illinois, Ohio, Michigan, Indiana,
Wisconsin, and Minnesota.
``(F) Group 6: Texas, New Mexico, Arkansas, Oklahoma, and
Louisiana.
``(G) Group 7: Missouri, Iowa, Nebraska, and Kansas.
``(H) Group 8: Colorado, Wyoming, North Dakota, South
Dakota, Montana, and Utah.
``(I) Group 9: California, Guam, Hawaii, Nevada, and
Arizona.
``(J) Group 10: Washington, Alaska, Idaho, and Oregon.
[[Page H6618]]
``(2) Deadline for initial selections.--The Administrator
shall make selections under paragraph (1) not later than 60
days after promulgation of regulations under subsection (k).
``(3) Additional selections.--Not earlier than the date 3
years after the date of the enactment of this paragraph, the
Administrator may select Small Business Development Center
programs of States in addition to those selected under
paragraph (1). The Administrator shall consider the effect on
the programs selected under paragraph (1) before selecting
additional programs under this paragraph.
``(4) Coordination to avoid duplication with other
programs.--In selecting programs under this subsection, the
Administrator shall give a preference to Small Business
Development Center programs that have a plan for consulting
with Federal and State agencies to ensure that any assistance
provided under this section is not duplicated by an existing
Federal or State program.
``(h) Matching Not Required.--Subparagraphs (A) and (B) of
section 21(a)(4) shall not apply to assistance made available
under the program.
``(i) Distribution of Grants.--
``(1) In general.--Except as provided in paragraph (2),
each State program selected to receive a grant under
subsection (g) in a fiscal year shall be eligible to receive
a grant in an amount not to exceed the product obtained by
multiplying--
``(A) the amount made available for grants under this
section for the fiscal year; and
``(B) the ratio that the population of the State bears to
the population of all the States with programs selected to
receive grants under subsection (g) for the fiscal year.
``(2) Minimum amount.--The minimum amount that a State
program selected to receive a grant under subsection (g)
shall be eligible to receive under this section for any
fiscal year shall be $200,000. The Administrator shall reduce
the amount described in paragraph (1) as appropriate to carry
out the purposes of this paragraph and subsection (j)(2).
``(j) Evaluation and Report.--Not later than 3 years after
the establishment of the program, the Comptroller General of
the United States shall conduct an evaluation of the program
and shall transmit to the Administrator, the Committee on
Small Business and Entrepreneurship of the Senate, and the
Committee on Small Business of the House of Representatives a
report containing the results of the evaluation along with
any recommendations as to whether the program, with or
without modification, should be extended to include the
participation of all Small Business Development Centers.
``(k) Promulgation of Regulations.--After providing notice
and an opportunity for comment and after consulting with the
Association (but not later than 180 days after the date of
the enactment of this section), the Administrator shall
promulgate final regulations to carry out this section,
including regulations that establish--
``(1) priorities for the types of assistance to be provided
under the program;
``(2) standards relating to educational, technical, and
support services to be provided by participating Small
Business Development Centers;
``(3) standards relating to any national service delivery
and support function to be provided by the Association under
the program;
``(4) standards relating to any work plan that the
Administrator may require a participating Small Business
Development Center to develop; and
``(5) standards relating to the educational, technical, and
professional competency of any expert or other assistance
provider to whom a small business concern may be referred for
compliance assistance under the program.
``(l) Funding.--Subject to amounts approved in advance in
appropriations Acts and separate from amounts approved to
carry out section 21(a)(1), the Administrator may make grants
or enter into cooperative agreements to carry out this
section.''.
SEC. 208. REPORT.
Not later than 18 months after the date of the enactment of
this Act, the Administrator of the Small Business
Administration shall submit to Congress a report evaluating
the effectiveness of the new Small Business Development
Center programs added by the amendments made by this title.
TITLE III--SCORE
SEC. 301. REPEAL OF ACTIVE CORPORATION OF EXECUTIVES.
Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.
637(b)(1)(B)) is amended by striking ``and an Active Corps of
Executive (ACE)''.
SEC. 302. INCREASING THE PROPORTION OF SCORE VOLUNTEERS FROM
SOCIALLY AND ECONOMICALLY DISADVANTAGED
BACKGROUNDS.
Section 8(b)(1) of the Small Business Act (15 U.S.C.
637(b)(1)) is amended by adding at the end the following:
``(H) The Service Corps of Retired Executives (SCORE)
established under subparagraph (B) shall carry out a plan to
increase the proportion of mentors who are from socially or
economically disadvantaged backgrounds. SCORE shall, on an
annual basis, report to the Administrator on the
implementation of this subparagraph.''.
SEC. 303. BENCHMARK REPORTING.
Section 8(b)(1) of the Small Business Act (15 U.S.C.
637(b)(1)), as amended by section 202, is further amended by
adding at the end the following:
``(I) The Service Corps of Retired Executives (SCORE)
established under subparagraph (B) shall, in consultation
with the Administrator, establish benchmarks for use in
evaluating the performance of its activities and the
performance of its volunteers. The benchmarks shall include
benchmarks relating to the demographic characteristics and
the geographic characteristics of persons assisted by SCORE,
benchmarks relating to the hours spent mentoring by
volunteers, and benchmarks relating to the performance of the
persons assisted by SCORE. SCORE shall, on an annual basis,
report to the Administrator on the extent to which the
benchmarks established under this subparagraph are being
attained.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Tennessee (Mr. David
Davis) each will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative to revise and extend their remarks and include
extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, small businesses play a critical role in our economy. As
the leading job creators and generators of nearly half of private
sector gross domestic product, their impact is felt throughout the
country.
Today, entrepreneurs are confronted with intense competition from
foreign and corporate counterparts. They must continually update their
products and processes, as well as adapt to change quickly.
Traditionally, the SBA's entrepreneurial development programs were
created to provide direction and assistance to small business owners,
helping them remain competitive and armed with the tools to maintain
successful ventures. While providing critical assistance, these
programs were created many years ago to address general business
development issues faced by typical small businesses of the time.
There is no question the needs of entrepreneurs change as the
environment does. The challenges facing entrepreneurs today are
different from those even 5 years ago. SBA's entrepreneurial
development programs must evolve to provide small businesses with the
ability to deal with the economic conditions of today.
The Small Business Entrepreneurial Development Programs Act of 2007
introduced by Congressman Sestak not only modernizes this program to
adjust the current concerns of small businesses but also enhances them.
Today, the leading issues for small firms are the rising health and
energy costs and complying with regulations. This legislation will help
small business owners identify and secure affordable health care. With
less than half of small business owners providing health care, the need
for legislation that helps alleviate this is clear.
Considering the current price of gasoline, there's no question why
the number one concern for entrepreneurs is the cost of energy.
Gasoline is more than $3 a gallon. This price represents a 28 percent
increase over a period of just 2 months ago and a 52 percent increase
since the end of January. Due to small businesses' limited resources,
as production costs are driven up, they become less competitive with
their counterparts.
While the costs of energy and health care have risen, so has the
regulatory burden for small businesses. In 2006, just seven major rules
added over $3.7 billion to the overall regulatory costs. That does not
even account for the thousands of other regulations that were added
last year. Small firms today require affordable access to information
and counseling to address these new rules.
H.R. 2359, with its increased capacities, ensures that the SBDCs
located in communities across the Nation have the ability to assist
entrepreneurs in facing these challenges. For this reason, the SBA
Entrepreneurial Development Act of 2007 has the support of the National
Federation of Independent
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Businesses. They are not only supporting but will key vote this
legislation. By tailoring SBA's economic development programs to the
economic demands and changing composition of small businesses, they
will better promote business development this our communities.
H.R. 2359 will make sure small firms remain a driving force in our
economy. I urge support of this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. DAVID DAVIS of Tennessee. Mr. Speaker, I yield myself such time
as I may consume.
Today, Mr. Speaker, I rise in support of the request to suspend the
rules and pass H.R. 2359, the SBA Entrepreneurial Development Programs
Act of 2007.
I would like to thank Chairwoman Velazquez for working in a
cooperative and bipartisan manner to bring this bill to the floor. This
bill makes modest yet necessary changes in the core entrepreneurial
technical assistance programs of the SBA, the Small Business
Development Center Program.
Small business development centers, on a relatively modest
appropriation, provide free training sessions which last at least 1
hour and free individual one-on-one counseling. The centers met a total
of 700,000 individual business owners and prospective owners in fiscal
year 2007.
Changes are necessary to clarify the statutory mandate and ensure
that small business development centers are appropriately responding to
the new challenges facing America's entrepreneurs. These alterations
are reflected in title I of the bill.
Even though the program is more than 25 years old, there is no
definition of the term ``small business development center,'' which
substantially adds to the confusion interpreting the statutory
language. I would like to thank the chairwoman for including the
definition in the term.
Another key change demonstrates the need to update the mission of the
small business development centers as technology and business practices
change. Broadband access is no longer a luxury for many, if not most,
small businesses; yet the only reliable data on broadband access in
America comes from providers that make the reports to the Federal
Communications Commission.
Congressman Fortenberry, the ranking member of the Committee's
Subcommittee on Rural and Urban Entrepreneurship, had the idea that
rather than relying on these providers, a more accurate picture might
come from actually asking individuals whether they had access to
broadband services. Mr. Fortenberry thought it would make sense to have
the center survey their clients when they come in the door on the
availability of broadband service. The survey might prove a valuable
addition to supplement the existing data from broadband providers. And
without appropriate information on broadband access and penetration, it
is impossible to develop policies that ensure small businesses will
have affordable access to broadband.
Title II also includes a mechanism to increase the capacity of small
business development centers to offer regulatory compliance assistance
to small businesses disproportionately affected by erroneous regulatory
burdens. It is an idea supported by the House in the previous four
Congresses and by the National Federation of Independent Business. I
would like to thank the chairwoman and Mr. Sestak for including this
critical assistance to small business owners.
Ultimately, H.R. 2359 is designed to help small businesses get the
advice and assistance they need to continue their ever-increasing
importance in maintaining America's prime place in the global economy.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I recognize Mr. Sestak, the sponsor of
the legislation, for as much time as he may consume.
Mr. SESTAK. Mr. Speaker, I would like to thank the distinguished
chairwoman from New York for yielding.
Mr. Speaker, I rise today to urge my colleagues to support a piece of
legislation to enhance two critical Small Business Administration
entrepreneurial development programs, the Small Business Development
Centers and the Service Corps for Retired Executives.
Serving as the Representative in a district that has been
historically driven economically by vibrant local small businesses, I
greatly appreciate and support the entrepreneurial development
assistance that the SBA provides.
We know that entrepreneurial development programs work. Businesses
who receive SBA entrepreneurial assistance are twice as likely to
succeed. And for every Federal dollar spent on entrepreneurial
development, $7 are generated in increased tax revenue.
But in the past 3 years, due to changes in our ever-changing
globalizing economy, my district has lost 607 small businesses and one
out of five manufacturing establishments. This is a trend that I am
committed to reversing through fostering entrepreneurial development
and creating the right set of conditions to help businesses flourish,
stay and be attracted to my district, and I believe that supporting
effective small business entrepreneurial development programs is a key
part of that strategy.
In 1980, Congress established the SBDC program to foster economic
development by providing management, technical and research assistance
to current and prospective small businesses. As you know, SBDCs provide
services which include assisting small businesses with financial,
marketing, production, organizational, engineering and technical
problems and feasibility studies.
SBDCs serve Americans with a desire to start their own venture but
who lack the technical expertise associated with starting and running a
successful business, and in the past decades, SBDCs have provided
assistance to millions of entrepreneurs across America.
The SBDC program also represents the effective and efficient use of
allocated Federal moneys through public/private collaboration. To that
end, SBDCs are funded by matching moneys provided by State
legislatures, foundations, State and local chambers of commerce, public
and private universities, vocational and technical schools and
community colleges. In fact, sponsors' contributions have been
increasingly exceeding the minimum 50 percent matching share,
signifying greater participation among such groups and institutions.
This is why I feel especially fortunate to have several Small
Business Development Sub-Centers located at local universities, such as
Widener University and the University of Pennsylvania, which provide
critical business resources and technical assistance to small
businesses in and around my district.
I would like to stress that the core SBDC program has been extremely
effective, but there are certain operational improvements that can be
implemented to increase the flexibility of SBDCs.
To that end, changes proposed in this legislation will ensure the
quality of grant recipients to host SBDCs; help SBDCs maintain their
autonomy from undue SBA interference; protect the confidentiality of
SBDC clients; ensure that taxpayer dollars are being spent as
efficiently as possible by not using SBDC funds except for the sole
purpose of business development; and allowing exemptions to the current
cap on non-matching portability grants in the event of federally
designated natural or human caused disasters.
{time} 1815
In addition to these operational changes, it is important to
strengthen the SBDC core program, which successfully navigates
entrepreneurs in managing their business, by establishing specific
grant programs that will allow SBDCs to tailor their services.
For instance, the Capital Access Initiative would establish grants to
assist entrepreneurs in processing loan applications and obtaining
private equity. An Innovation and Competitiveness Initiative would
establish grants to allow SBDCs to become technology centers, to help
market technologies and advanced projects to manufacturers. A disaster
recovery program would establish grants to allow SBDCs to assist and
coordinate the Federal response for small business disaster victims.
The older entrepreneurial assistance program will target older
Americans
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interested in transitioning to become business owners, while the Small
Business Sustainability Initiative will promote the development and
implementation of energy-efficient and clean energy improvements and
technology. And an Affordable Health Care Initiative will help small
business owners provide affordable health care insurance options to
their employees, as the chairwoman mentioned.
As I also spoke about, a second program which this legislation will
address is SCORE, which provides entrepreneurs with free counseling
assistance by former executives. SCORE provides a valuable service to
small businesses, and I believe it will be even stronger with a
provision to actively recruit volunteer mentors who will then provide a
greater reflection of the social and economic diversity of those who
will utilize SBA services, such as women and underrepresented
minorities.
I urge all my colleagues to support this important bill, which will
greatly enhance the business development resources available to
America's small business owners and aspiring entrepreneurs.
Mr. DAVID DAVIS of Tennessee. Mr. Speaker, I would like to yield such
time as he may consume to my good friend Mr. Latham.
Mr. LATHAM. Mr. Speaker, I thank the gentleman from Tennessee for
yielding me time, and I congratulate the committee and the chairman for
bringing this piece of legislation forward.
Mr. Speaker, I rise today in support of H.R. 2359, the Small Business
Administration Entrepreneurial Development Programs Act.
I am especially pleased that the Small Business Committee included
legislation that I introduced earlier this Congress, H.R. 731, the
National Small Business Regulatory Assistance Act, into this broad
legislative package. This National Small Business Regulatory Assistance
Act utilizes one of SBA's most effective programs, the Small Business
Development Center program. Generally the SBDCs support small
businesses with financial, management, and marketing activities. My
legislation, included in section 207 of H.R. 2359, creates a pilot
program through the SBDCs that will provide free confidential
counseling on regulatory compliance and help small businesses gain
access to regulatory information and resources.
The research done by the Small Business Administration demonstrates
that small businesses with less than 20 employees pay more than $7,600
per employee to comply with Federal regulations each year, while large
firms pay 45 percent less per employee. Adjusted for inflation, the
annual cost of Federal regulations faced by America's small businesses
in 2004 was over $875 billion.
The fact of the matter is many small business owners have neither the
time nor the expertise to sort through hundreds of pages of regulations
in the Federal Register. Small business owners often learn of their
failure to comply with Federal regulations or even that new Federal
regulations have been imposed only after a penalty has been assessed.
The current system denies small businesses access to regulatory
compliance assistance and further weakens the opportunity for America's
small businesses to compete with larger firms both domestically and
internationally.
The Small Business Regulatory Assistance Act represents a win-win for
America's small businesses. Not only will the SBDCs help small business
owners understand what they must do to comply with Federal regulations
but also how they may do so in a most cost-effective manner.
Again, I would like to thank the committee for including this
legislation in the bill, and I urge my colleagues to support the
overall bill.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
Today's entrepreneurs are facing countless challenges. SBA's
entrepreneurial development programs must be modernized to provide
small businesses with the ability to deal with the economic conditions
of today.
Mr. Sestak's legislation, the SBA Entreprenurial Development Programs
Act of 2007, makes much-needed updates to the agency's programs so that
they are better able to assist entrepreneurs and enable small firms to
remain a driving force in our economy.
H.R. 2359 has the support of the NFIB, who, in addition to supporting
it, has made it one of their key votes for the 110th Congress.
Again I want to thank Mr. Sestak and also Mr. Chabot, the ranking
minority member, for working in a bipartisan manner to move this
legislation and other bills that will be moved today. I want to thank
the staff that worked on this bill. From the majority staff, Michael
Day, Adam Minehardt, Nicole Witenstein; from Representative Sestak's
staff, Clarence Tong; and from the minority staff, Barry Pineles.
I strongly urge my colleagues to vote for H.R. 2359.
Ms. BORDALLO. Mr. Speaker, I rise today in strong support of H.R.
2359, the SBA Entrepreneurial Development Programs Act of 2007. I
commend our colleague from Pennsylvania (Mr. Sestak) for sponsoring
this legislation. I also commend our colleague from New York (Ms.
Velazquez), Chairwoman of the Committee on Small Business, and the
members of the Committee on Small Business for their initiatives to
strengthen America's small businesses and for bringing to the House
chamber today four important bills aimed at improving programs and
services administered by the U.S. Small Business Administration.
H.R. 2359 would reauthorize certain entrepreneurial development
programs and aid small businesses across our country in receiving
enhanced assistance from Small Business Development Centers (SBDCs).
H.R. 2359 would also expand the services available through SBDCs to
include assistance aimed to help businesses prepare for and respond to
economic disruptions caused by natural and manmade disasters,
regulatory burdens, and increased costs. By ensuring that the SBDC core
programs remain robust and authorizing new programs that are designed
specifically to meet evolving needs of small business owners and
operators, this bill will help SBDCs sustain a reputation as trusted
and valued sources of technical assistance for our country's
entrepreneurs.
This legislation would further make important changes to the Small
Business Administration Service Corps of Retired Executives (SCORE)
Program. These changes will help ensure that SBA clients from socially
and economically disadvantaged backgrounds can benefit from advice,
counseling and mentoring from executives from similar, disadvantaged
backgrounds. This bill would require the SBA to increase its efforts to
recruit such executives to participate in the SCORE Program.
The SBDC and SCORE programs have been remarkably successful. This
bill will help ensure that those excellent programs are as responsive
as possible to the evolving needs of our country's small businesses. I
urge my colleagues' support for this bill.
Mr. Speaker, I yield back the balance of my time.
Mr. DAVID DAVIS of Tennessee. Mr. Speaker, I have no further requests
for time, and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New York (Ms. Velazquez) that the House suspend the
rules and pass the bill, H.R. 2359.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Ms. VELAZQUEZ. 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 question will
be postponed.
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