[Congressional Record Volume 156, Number 48 (Thursday, March 25, 2010)]
[Senate]
[Pages S2116-S2117]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU (for herself, Ms. Snowe, and Mr. Durbin):
  S. 3165. A bill to authorize the Administrator of the Small Business 
Administration to waive the non-Federal share requirement under certain 
programs; to the Committee on Small Business and Entrepreneurship.
  Ms. LANDRIEU. Mr. President, as Chair of the Committee on Small 
Business and Entrepreneurship, I am pleased to join the Committee's 
Ranking Member, Senator Olympia Snowe of Maine, and my distinguished 
colleague from Illinois, Senator Richard Durbin, in introducing the 
Small Business Community Partners Relief Act of 2010. This bi-partisan 
legislation will provide much-needed relief to Women's Business 
Centers, WBCs, and SBA Microloan intermediaries--two Small Business 
Administration, SBA, resource partners that provide critical assistance 
to our Nation's 29 million small businesses.
  For my colleagues who may not be familiar with these programs, let me 
first explain the vital role of WBCs and Microloan intermediaries and 
the importance of aiding the small businesses these centers target.
  Women's Business Centers provide quality counseling and training 
services to all entrepreneurs, primarily women, and especially those 
who are socially and economically disadvantaged. More than 110 centers 
across the country help more than 150,000 clients annually on a vast 
array of topics--from how to write a business plan to where to get 
financing. Many WBCs provide multilingual services and a number offer 
daycare services, allowing mothers with children to attend training 
classes.
  Microloan intermediaries provide small, short-term loans to start-ups 
or small growing firms that cannot access credit through traditional 
loan programs. Like WBCs, the 160 Microloan

[[Page S2117]]

intermediaries throughout the nation also help entrepreneurs manage 
their start-up and expand while creating or saving thousands of jobs. 
Also like WBCs, the Microloan intermediaries tend to serve 
disadvantaged businesses in areas of the country that have been hit the 
hardest by the recession. About 48 percent of microloans go to small 
businesses owned by women, and about 53 percent to minority-owned small 
businesses.
  Aiding women and minority small business owners is vital to the 
economic success of our nation because women-owned and minority-owned 
businesses are the fastest growing segments of the small business 
community--creating hundreds of thousands of jobs. Women-owned 
businesses contribute nearly $3 trillion to our economy and create or 
save 23 million jobs each year, according to the Center for Women's 
Business Research. Minority-owned firms contribute nearly $700 billion 
to the economy and create or save 4.7 million jobs, according to the 
Department of Commerce's Minority Business Development Agency.
  While minority and women-owned firms do contribute greatly to the 
economy, they still need our help. Even though the number of minority-
owned firms has grown by 35 percent, the average gross receipts for 
those firms dropped by 16 percent. Women-owned firms meanwhile have 
lower revenues and fewer employees than their male-owned counterparts--
although 6 percent of men-owned businesses have revenues of $1 million 
or more, only 3 percent of women-owned firms reach the $1 million 
marker.
  In this economic downturn, minority and women-owned businesses are 
struggling even more than usual. When they go to their local WBC or 
Microloan intermediary they are finding these centers of aid and 
counseling struggling as well. That's because, in order to receive 
Federal money, the centers and intermediaries must also find matching 
local funds. This funding often comes from local governments, 
universities and private entities. But these partners have had to 
tighten their belts, cutting much of their funding to the WBCs and 
Microloan intermediaries.
  Without matching funding from their local partners, some WBCs and 
Microloan intermediaries have had to reduce or refuse Federal money. 
Nine WBCs have closed or requested reduced funding in the last year and 
many intermediaries are struggling to keep their doors open, even in 
the face of record demand for their services.
  The Small Business Community Partner Relief Act would enable the SBA 
Administrator to temporarily waive the non-Federal match funding 
requirement, allowing struggling WBCs and Microloan intermediaries to 
receive the full amount of Federal support available. This change will 
make it possible for the centers and intermediaries to continue serving 
those small businesses that need help the most in these difficult 
times.
  I look forward to working with Ranking Member Snowe, Senator Durbin 
and my colleagues in the Senate to make this necessary change a reality 
for the hundreds of centers and intermediaries throughout the country, 
and the millions of small businesses that rely on these programs to 
help them survive, grow and create jobs.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3165

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Community 
     Partner Relief Act of 2010''.

     SEC. 2. MATCHING REQUIREMENTS UNDER SMALL BUSINESS PROGRAMS.

       (a) Microloan Program.--Section 7(m) of the Small Business 
     Act (15 U.S.C. 636(m)) is amended--
       (1) in paragraph (3)(B)--
       (A) by striking ``As a condition'' and inserting the 
     following:
       ``(i) In general.--Subject to clause (ii), as a 
     condition'';
       (B) by striking ``the Administration'' and inserting ``the 
     Administrator''; and
       (C) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may not 
     waive the requirement for an intermediary to obtain non-
     Federal funds under this clause for more than a total of 2 
     fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitation.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.''; and

       (2) in paragraph (4)(B)--
       (A) by striking ``As a condition'' and all that follows 
     through ``the Administration shall require'' and inserting 
     the following:
       ``(i) In general.--Subject to clause (ii), as a condition 
     of a grant made under subparagraph (A), the Administrator 
     shall require''; and
       (B) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may not 
     waive the requirement for an intermediary to obtain non-
     Federal funds under this clause for more than a total of 2 
     fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitation.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.''.

       (b) Women's Business Center Program.--Section 29(c) of the 
     Small Business Act (15 U.S.C. 656(c)) is amended--
       (1) in paragraph (1), by striking ``As a condition'' and 
     inserting ``Subject to paragraph (5), as a condition''; and
       (2) by adding at the end the following:
       ``(5) Waiver of non-federal share relating to technical 
     assistance and counseling.--
       ``(A) In general.--Upon request by a recipient 
     organization, and in accordance with this paragraph, the 
     Administrator may waive, in whole or in part, the requirement 
     to obtain non-Federal funds under this subsection for the 
     technical assistance and counseling activities of the 
     recipient organization carried out using financial assistance 
     under this section for a fiscal year. The Administrator may 
     not waive the requirement for a recipient organization to 
     obtain non-Federal funds under this paragraph for more than a 
     total of 2 fiscal years.
       ``(B) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this paragraph, 
     the Administrator shall consider--
       ``(i) the economic conditions affecting the recipient 
     organization;
       ``(ii) the impact a waiver under this clause would have on 
     the credibility of the women's business center program under 
     this section;
       ``(iii) the demonstrated ability of the recipient 
     organization to raise non-Federal funds; and
       ``(iv) the performance of the recipient organization.
       ``(C) Limitation.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     if granting the waiver would undermine the credibility of the 
     women's business center program under this section.''.
                                 ______