[Congressional Record Volume 153, Number 98 (Monday, June 18, 2007)]
[House]
[Pages H6627-H6629]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SBA WOMEN'S BUSINESS PROGRAMS ACT OF 2007
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2397) to reauthorize the women's entrepreneurial development
programs of the Small Business Administration, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2397
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
Women's Business 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--NATIONAL WOMEN'S BUSINESS COUNCIL
Sec. 101. Annual studies on problems hindering the success of women
entrepreneurs.
Sec. 102. Additional progress reports.
TITLE II--WOMEN'S BUSINESS CENTERS
Sec. 201. Revised funding formula.
Sec. 202. Matchmaking formula change.
Sec. 203. Termination of funding.
Sec. 204. Women's business center awards to be made public.
TITLE I--NATIONAL WOMEN'S BUSINESS COUNCIL
SEC. 101. ANNUAL STUDIES ON PROBLEMS HINDERING THE SUCCESS OF
WOMEN ENTREPRENEURS.
Section 409 of the Women's Business Ownership Act of 1988
(15 U.S.C. 7109) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Problems Hindering the Success of Women
Entrepreneurs.--The Council shall conduct at least one study
per year that evaluates the problems hindering the success of
women entrepreneurs. The Council shall select the topic for
the study in consultation with the Committee on Small
Business of the House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate.''.
SEC. 102. ADDITIONAL PROGRESS REPORTS.
Section 406(d)(4) of the Women's Business Ownership Act of
1988 (15 U.S.C. 7106(d)(4)) is amended by inserting before
the semicolon at the end the following: ``, and on a biannual
basis (notwithstanding paragraph (6)) submit to the President
and to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the
House of Representatives a report containing a description
of, and the status of, such initiatives, policies, programs,
and plans''.
TITLE II--WOMEN'S BUSINESS CENTERS
SEC. 201. REVISED FUNDING FORMULA.
Section 29(b) of the Small Business Act (15 U.S.C. 656(b))
is amended to read as follows:
``(b) Authority.--
``(1) In general.--The Administrator may provide financial
assistance to private nonprofit organizations to conduct
projects for the benefit of small business concerns owned and
controlled by women. The projects shall provide--
``(A) financial assistance, including training and
counseling in how to apply for and secure business credit and
investment capital, preparing and presenting financial
statements, and managing cash flow and other financial
operations of a business concern;
``(B) management assistance, including training and
counseling in how to plan, organize, staff, direct, and
control each major activity and function of a small business
concern; and
``(C) marketing assistance, including training and
counseling in identifying and segmenting domestic and
international market opportunities, preparing and executing
marketing plans, developing pricing strategies, locating
contract opportunities, negotiating contracts, and utilizing
varying public relations and advertising techniques.
``(2) Tiers.--The Administrator shall provide assistance
under paragraph (1) in three tiers of assistance as follows:
``(A) The first tier shall be to conduct a 5-year project
in a situation where a project has not previously been
conducted. Such a project shall be in a total amount of not
more than $150,000 per year.
``(B) The second tier shall be to conduct a 3-year project
in a situation where a first-tier project is being completed.
Such a project shall be in a total amount of not more than
$100,000 per year.
``(C) The third tier shall be to conduct a 3-year project
in a situation where a second-tier project is being
completed. Such a project shall be in a total amount of not
more than $100,000 per year. Third-tier grants are renewable
subject to established eligibility criteria as well as
criteria in subsection (b)(4).
``(3) Allocation of funds.--Of the amounts made available
for assistance under this subsection, the Administrator shall
allocate--
``(A) at least 40 percent for first-tier projects under
paragraph (2)(A);
``(B) 20 percent for second-tier projects under paragraph
(2)(B); and
``(C) the remainder for third-tier projects under paragraph
(2)(C).
``(4) Benchmarks for third-tier projects.--In awarding
third-tier projects under paragraph (2)(C), the Administrator
shall use benchmarks based on socio-economic factors in the
community and on the performance of the applicant. The
benchmarks shall include--
``(A) the total number of women served by the project;
``(B) the proportion of low income women and socio-economic
distribution of clients served by the project;
``(C) the proportion of individuals in the community that
are socially or economically disadvantaged (based on median
income);
``(D) the future fundraising and service coordination
plans;
``(E) the diversity of services provided; and
``(F) regional distribution within the 10 districts of the
Administration.''.
SEC. 202. MATCHMAKING FORMULA CHANGE.
Section 29(c)(1) of the Small Business Act (15 U.S.C.
656(c)(1)) is amended--
(1) by striking subparagraphs (A) and (B); and
(2) by adding at the end the following:
``(A) For the first and second years of the project, 1 non-
Federal dollar for each 2 Federal dollars.
``(B) Each year after the second year of the project--
``(i) 1 non-Federal dollar for each Federal dollar; or
``(ii) if the center is in a community at least 50 percent
of the population of which is below the median income, 1 non-
Federal dollar for each 2 Federal dollars.''.
SEC. 203. TERMINATION OF FUNDING.
Section 29(c) of the Small Business Act (15 U.S.C. 656(c))
is amended by adding at the end the following:
``(5) Termination.--An organization that has conducted a
project under this subsection--
``(A) is not eligible to conduct another such project; and
``(B) may continue thereafter to use the women's business
center logo only with the consent of the Administrator.''.
SEC. 204. WOMEN'S BUSINESS CENTER AWARDS TO BE MADE PUBLIC.
Section 29(g)(2)(B)(ii)(V) of the Small Business Act (15
U.S.C. 656(g)(2)(B)(ii)(V)) is amended by inserting before
the semicolon at the end the following: ``, and make
available to the public the award made to each applicant so
selected''.
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 days 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 such time as I may
consume.
Mr. Speaker, there is no question that the face of small business is
changing in this country. Women entrepreneurs now account for 50
percent of all small business owners and are growing at a phenomenal
rate. The SBA Women's Program Act of 2007, sponsored by Congresswoman
Fallin, works to enhance opportunities for women by increasing access
to in-depth outcome-oriented counseling and training. It strengthens
SBA's Women's Business Centers to ensure that they continue to serve
the important role of assisting small business owners.
While many have taken advantage of the services Women's Business
Centers offer, not all budding entrepreneurs are getting the resources
they need to successfully start and own a business. A significant gap
exists between the
[[Page H6628]]
number of women in our country and those involved in entrepreneurship,
particularly in certain industry sectors.
Representative Fallin's legislation will increase the reach of
Women's Business Centers to help develop entrepreneurship, particularly
in underprivileged areas. By setting standards, it ensures that those
who want to start their own firms have quality support and training
resources available. The increased research that this bill requires
will make sure that challenges currently impacting women are identified
and addressed.
The SBA Women's Procurement Act of 2007 builds on the strong track
record of Women's Business Centers. The expansion of these centers has
the potential to spur economic growth in disadvantaged communities and
to even move impoverished women from welfare to entrepreneurship.
I strongly support 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.
Mr. Speaker, I rise in support of the request to suspend the rules
and pass H.R. 2397, the SBA Women's Business Programs Act of 2007. I
would like to thank Chairwoman Velazquez for working in a cooperative
and bipartisan manner to bring this bill, authored by Ms. Fallin, a
freshman member of the committee, to the House floor.
Mr. Speaker, I yield such time as she may consume to the gentlewoman
from Oklahoma (Ms. Fallin).
Ms. FALLIN. Mr. Speaker, I would like to begin by thanking Chairwoman
Velazquez and Ranking Member Chabot for their support for this
legislation and also in helping to build a strong bipartisan coalition
in the Small Business Committee.
This bill, the SBA Women's Business Act of 2007, will strengthen the
Women Business Centers program that was established in 1997 by making
it more efficient and more accountable. The Women's Business Centers
are a very important part of the grant programs that are funded by the
Small Business Administration. Today, Women's Business Centers all
across the country are providing women entrepreneurs with much-needed
technical assistance in starting and operating their own small
businesses.
In the mid-1990s, the Federal Government began awarding grants to
Women's Business Centers that were operating as nonprofit organizations
in conjunction with institutions of higher learning. Originally, these
grants were intended to be awarded to business centers in their first 5
years with the understanding that after the first 5-year period had
ended, the center would be financially self-sustaining.
Although many Women's Business Centers did meet this goal, some have
not for a variety of reasons. As a result, a greater percentage of the
funding for this program has been consumed by the operating costs of
potentially unviable centers rather than the intended purposes of
establishing new business centers. The result is a drag on the system
and viable business centers that are not truly serving an unmet need in
their communities. This jeopardizes the effectiveness in the viability
of the entire program.
The SBA Women's Business Programs Act of 2007 will restore the
original priorities held by the Federal Government when this program
was created. By offering a three-tiered system of funding and lower
caps on spending for older business centers, we can ensure a balanced
percentage of funding is used to support both new and existing business
centers.
The first tier requires that at least 40 percent of the total funds
be reserved for the purpose of establishing and supporting new Women's
Business Centers during their first 5 years of existence. The second
tier will use 20 percent of the total funds to help sustain the centers
that have successfully existed during their first 5 years.
Lastly, the third tier will use a maximum of 40 percent of the funds
to continue supporting centers that have existed for 8 years or more
and have met the necessary benchmarks set forth by the SBA to receive
this funding. This three-tiered system will offer a helping hand to
newly established centers while slowly weaning the older centers off
the dependency of the Federal grants.
It is important to realize that this legislation does not affect the
overall funding level of this program. Rather, it rearranges the
distribution of funds to reflect the original intention of these
grants, an offer of temporary assistance rather than one of permanent
dependency on the Federal Government.
This legislation will ultimately restore accountability and
efficiency to a program that, while well intentioned, has become
weighed down by inefficiency. These are goals that every Member of
Congress can all support. The SBA Women's Business Programs Act of 2007
has passed in the Small Business Committee with overwhelming bipartisan
support, and I want to encourage all my colleagues on both sides of the
aisle to vote in favor of this today.
Mr. DAVID DAVIS of Tennessee. Mr. Speaker, I have no further
speakers, and I yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, the small business face in America is
changing. We have more and more women who would like to get involved in
opening and starting their businesses, and the bill that we have before
us as sponsored by Representative Fallin does just that.
It promotes opportunity for women by increasing access to business
counseling and training through the development of the Women's Business
Center. This will better enable women to have flourishing enterprises
and help to spur job creation and economic development across this
Nation. I urge adoption of this bill.
Mr. SESTAK. Mr. Speaker, as a husband, a father of a young daughter,
the proud brother to 6 sisters, and having served alongside dedicated
women in the military, I have seen first-hand the role that women play
in economically strengthening American society. And this is why I rise
today to support H.R. 2397, the SBA Women's Business Programs Act of
2007.
Despite their significant contributions, women who work full time,
year round, still only make 77 cents for every dollar made by their
male counterparts, and women business owners, particularly those from
socially and economically disadvantaged backgrounds, face significant
challenges resulting from inadequate community resources. Such
resources include lack of access to capital, training resources, and
networks of assistance.
Today, women-owned firms are one of the fastest growing, successful
small business sectors. The number of women-owned firms has increased
at nearly double the rate of all firms, and those with socially and
economically disadvantaged backgrounds have grown at twice the rate of
their counterparts and 6 times the rate of all U.S. firms. As the
number of women entrepreneurs grows, particularly those from
underserved communities, I believe it is critical that women have
adequate and appropriate resources to prepare them for success in the
marketplace. To that end, H.R. 2397 proposes to expand the agency's
commitment to the Women's Business Centers (WBCs).
WBCs provide in-depth, substantive, and outcome-oriented counseling,
training and mentoring, resulting in substantial economic impact as
measured by successful business start-ups, job creation and retention,
and increased company revenues. They also provide financial,
management, and marketing assistance to women small business owners.
H.R. 2397 supports the growth of women small business owners by
expanding entrepreneurial development assistance, particularly in low-
income areas. The legislation dedicates funding to the opening of new
WBCs in underserved areas, while implementing new benchmarks to ensure
centers that continually receive funds are meeting performance
requirements. These metrics, which include information on clients
served and fundraising plans, will help to preserve resources for
centers that have demonstrated success helping women entrepreneurs
while promoting the expansion of assistance centers into underserved
areas.
H.R. 2397 is important legislation which promotes economic security
for America's women, and I urge all my colleagues to support this bill.
Ms. BORDALLO. Mr. Speaker, I rise today in strong support of H.R.
2397, the Small Business Administration Women's Business Programs Act
of 2007. I commend my colleague from Oklahoma (Ms. Fallin) for
introducing this important legislation to reauthorize the women's
entrepreneurial development programs of the Small Business
Administration (SBA).
[[Page H6629]]
Most notably H.R. 2397 would authorize the SBA Administrator to
provide financial assistance to private nonprofit organizations to
conduct projects for the benefit of small businesses owned and operated
by women. The bill notes that such projects shall provide, among other
things, financial assistance, including training and counseling on how
to apply for and secure business credit and investment capital,
preparing and presenting financial statements, and managing cash flow
and other financial operations of a business concern; management
assistance, including training and counseling in how to plan, organize,
staff, direct, and control each major activity and function of a small
business; and marketing assistance, including training and counseling
in identifying and segmenting domestic and international market
opportunities, preparing and executing marketing plans, developing
pricing strategies, locating contract opportunities, negotiating
contracts, and utilizing varying public relations and advertising
techniques.
H.R. 2397 would also direct that the National Women's Business
Council (NWBC) conduct at least one study per year that evaluates the
challenges hindering the success of women entrepreneurs, and mandates
that NWBC select the topic for the study in consultation with the
Committee on Small Business of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the Senate.
Support for this legislation will help Congress fulfill its
commitment to ensuring that women owned and operated small businesses
are able to access the resources and training they may require in order
to achieve success. I urge my colleagues to support H.R. 2397.
Mr. Speaker, 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. 2397.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________