[Congressional Record Volume 155, Number 165 (Friday, November 6, 2009)]
[House]
[Pages H12469-H12471]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               WOMEN'S BUSINESS CENTERS IMPROVEMENTS ACT

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1838) to amend the Small Business Act to modify certain 
provisions relating to Women's Business Centers, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1838

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

     SECTION 1. NOTIFICATION OF GRANTS; PUBLICATION OF GRANT 
                   AMOUNTS.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended by adding at the end the following new subsection:
       ``(o) Notification of Grants; Publication of Grant 
     Amounts.--The Administrator shall disburse funds to a women's 
     business center not later than 1 month after the center's 
     application is approved under this section. At the end of 
     each fiscal year the Administrator (acting through the Office 
     of Women's Business ownership) shall publish on the 
     Administration's website a report setting forth the total 
     amount of the grants made under this Act to each women's 
     business center in the fiscal year for which the report is 
     issued, the total amount of such grants made in each prior 
     fiscal year to each such center, and the total amount of 
     private matching funds provided by each such center over the 
     lifetime of the center.''.

     SEC. 2. COMMUNICATIONS.

       Section 29 of the Small Business Act (15 U.S.C. 656), as 
     amended, is further amended by adding at the end the 
     following new subsection:
       ``(p) Communications.--The Administrator shall establish, 
     by rule, a standardized process to communicate with women's 
     business centers regarding program administration matters, 
     including reimbursement, regulatory matters, and programmatic 
     changes. The Administrator shall notify each women's business 
     center of the opportunity for notice and comment on the 
     proposed rule.''.

     SEC. 3. FUNDING.

       (a) 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, including implementing cost-saving energy 
     techniques; 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 3 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. Projects receiving assistance 
     under this subparagraph that possess the capacity to train 
     existing or potential business owners in the fields of green 
     technology, clean technology, or energy efficiency shall 
     receive the maximum award under this subparagraph.
       ``(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 shall be 
     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 fund-raising and service coordination 
     plans;
       ``(E) the capacity of the project to train existing or 
     potential business owners in the fields of green technology, 
     clean technology, or energy efficiency;
       ``(F) the diversity of services provided; and
       ``(G) geographic distribution within and across the 10 
     regions of the Small Business Administration.''.
       (b) Matching.--Subparagraphs (A) and (B) of section 
     29(c)(1) of the Small Business Act (15 U.S.C. 656(c)(1)) are 
     amended to read as follows:
       ``(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 for the 
     State or United States territory in which the center is 
     located, 1 non-Federal dollar for each 2 Federal dollars.''.
       (c) Authorization.--Section 20 of the Small Business Act 
     (15 U.S.C. 631 note) is amended by inserting the following 
     new subsection after subsection (e):
       ``(f) Women's Business Centers.--There is authorized to be 
     appropriated for purposes of grants under section 29 to 
     women's business centers not more than $20,000,000 in fiscal 
     year 2010 and not more than $22,000,000 in fiscal year 
     2011.''.

     SEC. 4. PERFORMANCE AND PLANNING.

       (a) In General.--Section 29(h)(1) of the Small Business Act 
     (15 U.S.C. 656(h)(1)) is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by redesignating subparagraph (B) as subparagraph (D); 
     and
       (3) by inserting the following new subparagraphs after 
     subparagraph (A):

[[Page H12470]]

       ``(B) establish performance measures, taking into account 
     the demographic differences of populations served by women's 
     business centers, which measures shall include--
       ``(i) outcome-based measures of the amount of job creation 
     or economic activity generated in the local community as a 
     result of efforts made and services provided by each women's 
     business center, and
       ``(ii) service-based measures of the amount of services 
     provided to individuals and small business concerns served by 
     each women's business center;
       ``(C) require each women's business center to submit an 
     annual plan for the next year that includes the center's 
     funding sources and amounts, strategies for increasing 
     outreach to women-owned businesses, strategies for increasing 
     job growth in the community, strategies for increasing job 
     placement of women in nontraditional occupations, and other 
     content as determined by the Administrator; and''.
       (b) Conforming Amendment.--Section 29(h)(1) of the Small 
     Business Act (15 U.S.C. 656(h)(1)), as amended, is further 
     amended by adding the following at the end thereof:

     ``The Administrator's evaluation of each women's business 
     center as required by this subsection shall be in part based 
     on the performance measures under subparagraphs (B) and (C). 
     These measures and the Administrator's evaluations thereof 
     shall be made publicly available.''.

     SEC. 5. NATIONAL WOMEN'S BUSINESS COUNCIL.

       The Women's Business Ownership Act of 1988 is amended as 
     follows:
       (1) In section 409(a) (15 U.S.C. 7109(a)), by adding the 
     following at the end thereof: ``Such studies shall include a 
     study on the impact of the 2008-2009 financial markets crisis 
     on women-owned businesses, and a study of the use of the 
     Small Business Administration's programs by women-owned 
     businesses.''.
       (2) In section 410(a) (15 U.S.C. 7110(a)), by striking 
     ``2001 through 2003'' and insert ``2010 and 2011''.

     SEC. 6. APPLICANT EVALUATION CRITERIA.

       Section 29(f) of the Small Business Act (15 U.S.C. 656(f)) 
     is amended--
       (1) in paragraph (3) by striking ``and'' at the end;
       (2) in paragraph (4) by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(5) whether the applicant has the capacity to train 
     existing or potential business owners in the fields of green 
     technology, clean technology, or energy efficiency.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentlewoman from Oklahoma (Ms. Fallin) 
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 in which to revise and extend their remarks 
and include extraneous material on H.R. 1838, 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 rise in support of H.R. 1838, the 
Women's Business Centers Improvements Act. In America today, the face 
of business is changing. A big part of that change is the growing role 
of women business owners. Female entrepreneurs are bringing new thought 
processes and ingenuity into our economy. The Small Business 
Administration's women's business centers enable women to take these 
great ideas and put them into practice. Not only do these centers 
provide the technical training and advice that are available at other 
SBA centers, but they offer guidance that is specifically tailored to 
female business owners.
  H.R. 1838 will supply these organizations with needed stability. 
Through technical assistance and counseling, the bill would also renew 
the program's original mission, bolstering low-income communities. More 
women than ever before are going into business for themselves. For 
minorities and socially disadvantaged women, launching your own 
enterprise is an especially important option. We have heard time and 
again stories of women lifting themselves out of poverty by starting 
their own enterprise.
  Mr. Speaker, women-owned businesses are increasingly important to our 
national economy. They generate $3 trillion in economic activity and 
are responsible for 16 percent of the U.S. jobs. By strengthening and 
improving the SBA's network of women's business centers, H.R. 1838 will 
expand this success, offering greater economic opportunity to women 
everywhere.
  I will take this opportunity to thank and congratulate the 
gentlewoman from Oklahoma (Ms. Fallin) for the work that she put into 
this legislation.
  I reserve the balance of my time.
  Ms. FALLIN. Mr. Speaker, I yield myself as much time as I may 
consume.
  I rise today in support of H.R. 1838, the SBA Women's Business 
Centers Improvements Act. This important legislation rearranges the 
distribution of funding to women's business centers to offer temporary 
assistance for new businesses and startups for women's business centers 
rather than empower and make permanent dependency on the Federal 
Government with our current system. I want to just say thank you to 
Chairwoman Velazquez for all her help on this piece of legislation. It 
has been a great pleasure to work with her.
  Mr. Speaker, small businesses create seven out of 10 new jobs in the 
United States, and they are the economic engine of our economy. 
Further, women-owned businesses contribute nearly $3 trillion to our 
national economy and create or maintain 23 million jobs and employ or 
generate 16 percent of the jobs in our Nation's economy.
  Women's business centers are an important part of the grant programs 
that are funded by the Small Business Administration. Today, women's 
business centers across the country are providing women entrepreneurs 
with much-needed education, with training, with technical assistance 
and access to capital in startup and operating their small businesses.
  Women's business centers serve over 100,000 women and tens of 
thousands of businesses each year. 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 this 5-year period had ended, the center would be financially 
self-sustaining.
  Although many women's business centers did make this goal, some have 
not, and for a variety of reasons. As a result, a greater percentage of 
the funding of this program has been consumed by the operating costs of 
potentially unviable centers, rather than the intended purpose of 
helping to establish new business centers. The result is a drag on the 
system, unviable business centers that are not truly serving an unmet 
need in their communities. This, of course, jeopardizes the 
effectiveness and the viability of the entire program.
  The SBA Women's Business Centers Improvements Act of 2009 will 
restore the original purpose 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 approach and a balanced percentage of funding is used to 
support both new and existing business centers.
  Modernizing the SBA entrepreneurial development programs will ensure 
small businesses have the opportunity to lead our Nation out of this 
recession into economic prosperity. The SBA Women's Business Centers 
Improvements Act is a huge step in the right direction and provides a 
much-needed helping hand to help our Nation's small businesses and our 
women's business centers.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I would like to inquire if the gentlelady 
has further speakers. I don't have additional speakers on this side, so 
I am prepared to yield back if you are prepared to yield back.
  Ms. FALLIN. I don't have any other speakers, but I do have some 
further comments, Mr. Speaker.
  Ms. VELAZQUEZ. I continue to reserve the balance of my time.
  Ms. FALLIN. Mr. Speaker, I want to talk about a few issues today as I 
finish up here and that is about the Department of Labor and how they 
have announced the national unemployment rate, which has reached 10.2 
percent during the month of October. Another report shows that 
businesses with less than 50 employees lost 75,000 private sector jobs 
in the month of October, also. Small businesses and individuals and 
families have been devastated by this 26-year high unemployment rate.
  Here we are, Mr. Speaker, during this important debate in our Nation 
about

[[Page H12471]]

health care reform, talking about raising taxes on small business 
during this recession. Mr. Speaker, I personally believe, and I think 
the majority of us believe, that small businesses are the economic 
engines in our communities and in our States and are the way that we 
can help lead our Nation out of this recession.
  Yet as we look at the health care reform bill that we're getting 
ready to take up, and you look at different sections of it and how it 
will affect small businesses and job creation and unemployment, I am 
deeply concerned about several sections of this piece of legislation.
  An example is page 297. Section 501 would impose a 2.5 percent tax on 
all individuals who do not purchase bureaucrat-approved health 
insurance. This tax would apply to individuals with incomes under 
$250,000, thus breaking a central promise of President Obama's 
Presidential campaign that we would not be taxing people under 
$250,000. Section 512 under page 313 imposes an 8 percent tax on jobs 
for firms that cannot afford to purchase the bureaucrat-approved health 
coverage. And according to an analysis by a Harvard professor, such a 
tax would place millions of people at risk for unemployment; and a 
majority of those workers could be minorities who, we believe, would 
lose their jobs at twice the rate of their white counterparts.
  Section 551, page 336 imposes additional job-killing taxes in the 
form of a $500 billion surcharge, more than half of which will hit 
small businesses, according to a model developed by President Obama's 
senior economic adviser, which could increase taxes and cost us another 
5.5 million jobs. Of course we know that this piece of legislation also 
adds $729 billion in new taxes on small businesses and on individuals 
who cannot afford health insurance coverage and employers who cannot 
afford to even provide that health insurance.
  And of course another $1 trillion in new Federal spending on expanded 
health care insurance coverage over 10 years is some of the projections 
of this health care bill that we're getting ready to take up. We've had 
several different groups express concern about small businesses, about 
the unemployment rate, about the cost of this proposed health care 
plan. The NFIB has estimated that 1.5 million jobs will be lost due to 
the employer mandate on small businesses. The nearly one-third of 
uninsured workers who earn within $3 of the minimum wage will be put at 
risk of unemployment if their employers are required to offer insurance 
when one in 10 Americans are unemployed already.
  It is a bad time to be mandating these new tax increases on our small 
businesses. We know that the pay-or-play provision could reduce the 
hiring of low-income workers and that those wages could fall even more 
because of required mandates on health insurance.
  This bill that we're talking about for health care is going to leave, 
we believe, 34 million Americans without health insurance because of 
expansion of Medicaid, and millions of Americans will lose their 
current health care coverage if the private sector market is driven out 
of the marketplace that offers insurance.
  According to a 2009 study by the National Federation of Independent 
Business, the cost of health insurance is the number one concern to 
small business owners. Small businesses create seven out of 10 new jobs 
in the U.S. and should be able to provide their employees with health 
benefits and should be able to provide it at a reasonable rate that 
helps these small businesses be competitive, be one of the vital 
benefits that they can provide to their employees, which is small 
businesses.
  The Kaiser Family Foundation reports that health insurance premiums 
for single workers rose 74 percent for small businesses between the 
period of 2001 and 2008; and administrative expenses for small group 
plans account for 25 to 27 percent of premiums compared to that of 5 to 
10 percent for large businesses.
  So, Mr. Speaker, what we know is that if we impose more taxes, more 
mandates, more surcharges on our small businesses at a time when our 
unemployment rate just hit a record high for 26 years, over 10 percent, 
then our small businesses are going to be further devastated by any 
type of health care reform proposal that has a government mandate, that 
has new surcharges, new taxes, huge new taxes on small businesses.
  Mr. Speaker, I am very concerned because small businesses are the 
economic engine of our local economies. They are the way that we can 
lead ourselves out of this recession, and that is why I will be opposed 
to the current health care proposal by Speaker Pelosi.
  Mr. Speaker, I urge passage of this bill.
  I yield back the balance of my time.
  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. 1838, as amended.
  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, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

                          ____________________