[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

[[Page H6619]]

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

[[Page H6620]]

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.

                          ____________________