[Congressional Record Volume 153, Number 171 (Tuesday, November 6, 2007)]
[House]
[Pages H12773-H12776]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS PROGRAMS ACT OF 2007
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3866) to reauthorize certain programs under the Small
Business Act for each of fiscal years 2008 and 2009, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3866
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 ``Small
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.
Sec. 2. Reauthorization of small business programs.
Sec. 3. BusinessLINC grants reauthorization.
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Sec. 4. Small Business Development Center Program reauthorization.
Sec. 5. Women's Business Center Program reauthorization.
Sec. 6. HUBZone reauthorization.
Sec. 7. Office of Veterans Business Development reauthorization.
Sec. 8. Advisory Committee on Veterans Business Affairs extension.
Sec. 9. National Women's Business Council reauthorization.
SEC. 2. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.
Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended--
(1) by striking subsections (b), (d), and (j);
(2) by redesignating subsections (c) and (e) as (b) and
(c), respectively;
(3) in subsection (b) (as so redesignated; disaster
mitigation pilot program) by striking ``2005'' and ``2006''
and inserting ``2008'' and ``2009'', respectively; and
(4) by inserting after subsection (c) (as so redesignated)
the following:
``(d) Fiscal Year 2008.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 2008:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $80,000,000 in technical assistance grants, as
provided in section 7(m); and
``(ii) $110,000,000 in direct loans, as provided in 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $29,300,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make--
``(i) $20,000,000,000 in general business loans, as
provided in section 7(a);
``(ii) $8,500,000,000 in certified development company
financings, as provided in section 7(a)(13) and as provided
in section 504 of the Small Business Investment Act of 1958;
``(iii) $750,000,000 in loans, as provided in section
7(a)(21); and
``(iv) $50,000,000 in loans, as provided in section 7(m).
``(C) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is
authorized to make $4,000,000,000 in guarantees of
debentures.
``(D) For the programs authorized by part B of title IV of
the Small Business Investment Act of 1958, the Administration
is authorized to enter into guarantees not to exceed
$6,000,000,000, of which not more than 50 percent may be in
bonds approved pursuant to section 411(a)(3) of that Act.
``(E) The Administration is authorized to make grants or
enter into cooperative agreements for a total amount of
$7,000,000 for the Service Corps of Retired Executives
program authorized by section 8(b)(1).
``(2) Additional authorization.--There are authorized to be
appropriated to the Administration for fiscal year 2008
$20,000,000 to carry out the PRIME program.
``(e) Fiscal Year 2009.--
``(1) Program levels.--The following program levels are
authorized for fiscal year 2009:
``(A) For the programs authorized by this Act, the
Administration is authorized to make--
``(i) $90,000,000 in technical assistance grants, as
provided in section 7(m); and
``(ii) $120,000,000 in direct loans, as provided in 7(m).
``(B) For the programs authorized by this Act, the
Administration is authorized to make $29,800,000,000 in
deferred participation loans and other financings. Of such
sum, the Administration is authorized to make--
``(i) $20,000,000,000 in general business loans, as
provided in section 7(a);
``(ii) $9,000,000,000 in certified development company
financings, as provided in section 7(a)(13) and as provided
in section 504 of the Small Business Investment Act of 1958;
``(iii) $750,000,000 in loans, as provided in section
7(a)(21); and
``(iv) $50,000,000 in loans, as provided in section 7(m).
``(C) For the programs authorized by title III of the Small
Business Investment Act of 1958, the Administration is
authorized to make $4,000,000,000 in guarantees of
debentures.
``(D) For the programs authorized by part B of title IV of
the Small Business Investment Act of 1958, the Administration
is authorized to enter into guarantees not to exceed
$6,000,000,000, of which not more than 50 percent may be in
bonds approved pursuant to section 411(a)(3) of that Act.
``(E) The Administration is authorized to make grants or
enter into cooperative agreements for a total amount of
$7,000,000 for the Service Corps of Retired Executives
program authorized by section 8(b)(1).
``(2) Additional authorization.--There are authorized to be
appropriated to the Administration for fiscal year 2009
$20,000,000 to carry out the PRIME program.''.
SEC. 3. BUSINESSLINC GRANTS REAUTHORIZATION.
Section 8(n) of the Small Business Act (15 U.S.C. 637(n))
is amended--
(1) by striking ``$6,600,000'' and inserting
``$7,000,000''; and
(2) by striking ``2001 through 2006'' and inserting ``2008
and 2009''.
SEC. 4. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM
REAUTHORIZATION.
Section 21(a)(4)(C)(vii) of the Small Business Act (15
U.S.C. 648(a)(4)(C)(vii)) is amended by striking subclauses
(I) and (II) and inserting the following:
``(I) $140,000,000 for fiscal year 2008; and
``(II) $145,000,000 for fiscal year 2009.''.
SEC. 5. WOMEN'S BUSINESS CENTER PROGRAM REAUTHORIZATION.
Section 29(k) of the Small Business Act (15 U.S.C. 656(k))
is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--There are authorized to be appropriated
to carry out this section--
``(A) $17,000,000 for fiscal year 2008; and
``(B) $17,500,000 for fiscal year 2009.''; and
(2) in paragraph (2)(B), by striking clauses (i) through
(iv) and inserting the following:
``(i) For fiscal year 2008, 1.5 percent.
``(ii) For fiscal year 2009, 1.5 percent.''.
SEC. 6. HUBZONE REAUTHORIZATION.
Section 31(d) of the Small Business Act (15 U.S.C. 657a) is
amended--
(1) by striking ``$10,000,000'' and inserting
``$20,000,000''; and
(2) by striking ``2004 through 2006'' and inserting ``2008
and 2009''.
SEC. 7. OFFICE OF VETERANS BUSINESS DEVELOPMENT
REAUTHORIZATION.
Section 32(c) of the Small Business Act (15 U.S.C. 657b(c))
is amended by striking paragraphs (1) and (2) and inserting
the following:
``(1) $3,000,000 for fiscal year 2008; and
``(2) $4,000,000 for fiscal year 2009.''.
SEC. 8. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS
EXTENSION.
(a) Extension of Termination Date.--Section 203(h) of the
Veterans Entrepreneurship and Small Business Development Act
of 1999 (Public Law 106-50; 15 U.S.C. 657b note) is amended
by striking ``September 30, 2006'' and inserting ``September
30, 2009''.
(b) Conforming Amendment.--Section 33(h) of the Small
Business Act (15 U.S.C. 657c(h)) is amended by striking
``October 1, 2006'' and inserting ``October 1, 2009''.
SEC. 9. NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION.
Section 410(a) of the Women's Business Ownership Act of
1988 (Public Law 100-533; 15 U.S.C. 7110(a)) is amended by
striking ``2001 through 2003'' and inserting ``2008 and
2009''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, our economy is constantly evolving and changing. For
this Nation's 27 million small firms to be successful, our economic
policies must be adjusted accordingly.
While we have made great strides in this Congress to make sure the
needs of small business owners are met, H.R. 3866 is the final step in
reauthorizing small business assistance programs, ensuring the success
and growth of small firms.
Today, entrepreneurs are faced with many challenges. They must
compete in a global marketplace, deal with rising energy and health
care costs, and find ways to access affordable capital. To alleviate
many of these burdens, we have passed initiatives in this Congress that
provide the overall tools for entrepreneurial success. We have passed
legislation that lowers the cost of loans and gives minorities greater
access to SBA programs.
Through H.R. 3567, SBA's investment programs were improved and a new
source of equity capital was open to entrepreneurs through angel
investment. Also, small business contracting programs has been
modernized, accountability has been increased, and fraud has been
reduced. This makes sure small firms have fair access to the Federal
marketplace and allows them to continue growing their companies and
creating jobs.
In the aftermath of Hurricane Katrina, entrepreneurs were faced with
delays in disaster loans, overwhelming amounts of paperwork, and a
lengthy application process leaving them frustrated and discouraged.
The RECOVER Act ensures that the SBA is prepared, has a large, well-
trained disaster response workforce, and that delays and poor service
encountered by victims of hurricanes do not happen again.
While critical, these initiatives are just the first step. The Small
Business Programs Act of 2007 provides the vehicle for SBA's small
business assistance programs to run and meet the needs of entrepreneurs
in our changing economy. Most importantly, it gives the SBA the
necessary resources to continue helping small businesses start and
expand.
H.R. 3866 extends SBA's small business assistance programs for the
next 2 years. Also, this bill provides the necessary authority for the
SBA to carry out its lending and venture capital programs, ensuring
SBA's initiatives are
[[Page H12775]]
the premier lending tools for entrepreneurs.
The SBA and its programs are vital to assisting small businesses
across this country. Along with the Small Business Development Centers,
Women Business Centers, and SCORE, the SBA has worked to meet the
rising demand for services at a time when their budget continues to
decrease.
These programs have a proven track record of success, but they
require sufficient resources to be able to evolve and modernize.
Clearly, in order for small firms to adapt to changing economic
conditions, small business assistance programs must be adjusted. There
is no larger job creator or greater impact on local communities in this
country than small firms.
H.R. 3866 arms small business assistance programs with the tools that
allow entrepreneurs to continue spurring economic growth.
I strongly urge my colleagues to vote for the Small Business Programs
Act of 2007.
Mr. Speaker, I reserve the balance of my time.
Mr. CHABOT. 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. 3866, the SBA 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 House floor
today.
The bill we are considering today is a highly technical bill, but one
of the Small Business Committee's legislative obligations.
The financing programs in the Small Business Act and the Small
Business Investment Act of 1958 rely on lending by the private sector.
Lenders are protected by guarantees issued by the SBA, promising
repayment if the small business borrower fails. Congress must impose
limits on the authority of the SBA to issue such guarantees. H.R. 3866
establishes limits that will enable the program to operate even if
there is unexpected demand.
Given the current credit crunch, it is certainly possible that the
SBA will have a spike in demand. The limits adopted in this bill will
ensure that, unlike in some prior years, the program will not be the
subject of operational restrictions.
I want to point out that supporting these limits will have no
budgetary impact. The SBA's guaranteed loan, certified development
company, and debenture small business investment company programs also
operate at zero subsidy. That means the programs require no
appropriation, and losses are covered by fees charged to lenders and
borrowers. Maintaining this zero subsidy still enables Congress to
provide for significant expansion of the authorization in order to meet
demand, while protecting taxpayers.
The microloan programs, which helps entrepreneurs in many low-income
areas and is a valuable job creation tool for a modest investment by
the government, also receives an increase in lending authority.
{time} 1330
Given the value of the program, I believe that the modest increase
more than pays for itself in providing jobs and developing the
entrepreneurial culture that continues to maintain the economic
viability of this Nation.
In addition, the committee must provide authorization levels for the
Small Business Development Center program. The allocation of funds to
various centers is based in part on a comparison of funds appropriated
to funds authorized. Without an authorization level, the funding
formula cannot work. It also is important to point out that the
authorization level for the SBDCs is increased by around 3\1/2\
percent. This increase takes into account inflation and the
administration's request that the centers provide even more counseling.
The other major entrepreneurial outreach program of the SBA, the
Women's Business Center program, receives an increase of around 17
percent. Now, while this may at first seem like a lot, the
authorization in this bill represents the first time in nearly 8 years
that the Women's Business Center authorization levels have been set
thus representing an adjustment in align with inflation.
Similarly, the PRIME program, which provides additional technical
assistance to microloan borrowers, has not received an authorization
level since 1999. The authorization of $20 million in this bill
represents an increase of $625,000 per year, or just enough, again, to
keep up with inflation. I want to point out that the SBA requested a
budget increase to cover inflation including the rapid rise in the cost
of energy. It is only fair to authorize a similar modest increase for
SBA's entrepreneurial outreach in education programs.
Other authorizations in this bill also represent either level
funding, such as the SCORE program and the drug-free workplace program
or represent very modest increases from prior authorization levels such
as the $400,000 increase in funding for BusinessLINC, a valuable
program that helps small businesses find contracts to supply large
businesses with goods and services.
Two programs received significant boosts in authorization levels, the
Office of Veterans Affairs and the HUBZone programs. In time of war, it
is important that we provide assistance to our veterans. That includes
ensuring that they have the tools necessary to integrate into civilian
life through entrepreneurship. On a percentage basis, the authorization
increase for the program is significant, but the dollar value is a
modest $2 million. Given the sacrifices our veterans have made, this
represents only a modest down payment on the debt we owe to them, our
veterans.
As for the HUBZone program, the increase arises from the efforts of
the committee to ensure that only firms eligible for participation in
the program receive Federal Government contracts. This requires
additional onsite verification and thus represents the committee's view
to the appropriators to significantly increase funding in that area.
Again, I would like to thank Chairwoman Velazquez. Although there are
significant philosophical differences between Members, I think the past
year has demonstrated what can happen when this body tries to work
through those differences without acrimony or questioning of the
motives of the other side. Much can be accomplished for the American
public, and that is what the people elected us to do. So I want to,
again, commend the chairwoman for her willingness to work in a
bipartisan manner not only in this bill but many bills that we have
dealt with in the past.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers, and I am
prepared to close if the gentleman is prepared to close.
Mr. CHABOT. Mr. Speaker, I am prepared to close. I have no other
speakers.
Ms. VELAZQUEZ. Mr. Speaker, I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield back my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, there is no question that today's economic environment
is increasingly difficult for small firms to thrive in. We have seen
record highs in gas prices, unmanageable health care costs and barriers
in the way of accessing affordable capital. Now, more than ever, small
businesses need assistance programs they can rely on that are well-
equipped to meet their needs. With the Small Business Programs Act of
2007 that is exactly what we are giving entrepreneurs.
This legislation ensures that our Nations's 27 million entrepreneurs
have access to the business development assistance that they need and
deserve. These firms employ one half of our workforce, spur economic
development and revitalize our communities. When their businesses are
growing and flourishing, the benefits are felt across the country.
With the passage of H.R. 3866, we set program levels for SBA's
entrepreneurial assistance initiatives, updating and modernizing them.
The primary role of the SBA is to help entrepreneurs who have the drive
but need assistance. It is clear that small firms play a crucial role
in our economy. By ensuring that these businesses have current and
sufficient assistance, we are investing in our communities, helping to
create jobs, and benefiting the Nation as a whole.
I would like to take this opportunity to thank Ranking Member Chabot
for
[[Page H12776]]
your collaboration for us to work together in a responsible way, to
follow regular order, and I am very proud that every time that we have
considered legislation, we have done so in a very inclusive, open way
and we can show results. With the passage of this bill, we have passed
15 bills through the House of Representatives. I am very proud of that
product. It shows the things that can be done when we respect each
other despite our differences. But we show the American public that we
are willing to work together on their behalf.
I also would like to take an opportunity to thank the staff that
worked on this legislation from the Small Business Committee majority
staff, Tim Slattery and Michael Day, and from the minority staff, Barry
Pineles, Kevin Fitzpatrick and Mike Smullen. I strongly urge my
colleagues to vote for H.R. 3866, the Small Business Programs Act of
2007.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on H.R. 3866, as amended.
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 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. 3866, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________