[Congressional Record Volume 157, Number 76 (Tuesday, May 31, 2011)]
[House]
[Pages H3778-H3780]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS ADDITIONAL TEMPORARY EXTENSION ACT OF 2011
Mr. GRAVES of Missouri. Mr. Speaker, I move to suspend the rules and
pass the bill (S. 1082) to provide for an additional temporary
extension of programs under the Small Business Act and the Small
Business Investment Act of 1958, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 1082
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 Additional
Temporary Extension Act of 2011''.
SEC. 2. ADDITIONAL TEMPORARY EXTENSION OF AUTHORIZATION OF
PROGRAMS UNDER THE SMALL BUSINESS ACT AND THE
SMALL BUSINESS INVESTMENT ACT OF 1958.
(a) In General.--Section 1 of the Act entitled ``An Act to
extend temporarily certain authorities of the Small Business
Administration'', approved October 10, 2006 (Public Law 109-
316; 120 Stat. 1742), as most recently amended by section 1
of Public Law 112-1 (125 Stat. 3), is amended--
(1) by striking ``Any'' and inserting ``Except as provided
in section 3 of the Small Business Additional Temporary
Extension Act of 2011, any''; and
(2) by striking ``May 31, 2011'' each place it appears and
inserting ``July 31, 2011''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on May 30, 2011.
SEC. 3. EXTENSION OF SBIR AND STTR TERMINATION DATES.
(a) SBIR.--Section 9(m) of the Small Business Act (15
U.S.C. 638(m)) is amended--
(1) by striking ``Termination.--'' and all that follows
through ``the authorization'' and inserting ``Termination.--
The authorization'';
(2) by striking ``2008'' and inserting ``2011''; and
(3) by striking paragraph (2).
(b) STTR.--Section 9(n)(1)(A) of the Small Business Act (15
U.S.C. 638(n)(1)(A)) is amended--
(1) by striking ``In general.--'' and all that follows
through ``with respect'' and inserting ``In general.--With
respect'';
(2) by striking ``2009'' and inserting ``2011''; and
(3) by striking clause (ii).
(c) Commercialization Pilot Program.--Section 9(y)(6) of
the Small Business Act (15 U.S.C. 638(y)(6)) is amended by
striking ``2010'' and inserting ``2011''.
SEC. 4. COMPETITIVE SELECTION PROCEDURES FOR SBIR AND STTR
PROGRAMS.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended by inserting after subsection (r) the following:
``(s) Competitive Selection Procedures for SBIR and STTR
Programs.--All funds awarded, appropriated, or otherwise made
available in accordance with subsection (f) or (n) must be
awarded pursuant to competitive and merit-based selection
procedures.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Graves) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. GRAVES of Missouri. I ask unanimous consent that all Members
shall 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
gentleman from Missouri?
There was no objection.
Mr. GRAVES of Missouri. Mr. Speaker, I yield myself such time as I
may consume.
The legislation we have before us is a short-term extension of
programs that helps our Nation's small businesses. Last week, the House
passed the bill by voice vote to extend these programs for 4 months
until the end of the fiscal year. Unfortunately, that bill was used as
a vehicle to pass the PATRIOT Act authorization. So we have a new bill
before us today.
Like the bill the House passed last week, this legislation extends
the authorization of the Small Business Innovative Research and Small
Business Technology Transfer programs until the end of the fiscal year.
These two programs provide R&D dollars to small businesses to create
jobs, spur innovative ideas to the market, and solve Federal agency
problems, all at no additional cost to the government.
Secondly, the bill extends for 2 months, until July 31, 2011, the
authorization of several other programs of the Small Business
Administration. Among them is the pre-disaster mitigation program that
provides loans to small businesses so they can implement technology
that will reduce the impact of disasters on their operations.
{time} 1810
With the recent devastation we have seen in the Midwest, including in
my home State of Missouri, and with the hurricane season right around
the corner, it's imperative that this program continue for small firms
who wish to bolster their disaster plans.
Mr. Speaker, this is bipartisan legislation that has the support of
the administration, as well as the leadership of both parties on the
other side of the Capitol. It is important that we do not let these
programs lapse, because they will expire if we do not pass this
legislation today. This is the last day.
I urge my colleagues to support our Nation's small businesses and
vote ``yes'' on S. 1082.
I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself as much time as I may
consume.
The role of small businesses in moving the economy forward has never
been more important. Making up over 99 percent of all U.S. firms, they
are critical to innovation, wealth creation, and, most importantly,
employment gains. Many look to the SBA for assistance, using its loan,
contracting, and training programs to start up or expand.
Unfortunately, the legislation before us, while seemingly
uncontroversial, could make it harder for small businesses to access
these very tools and resources. This bill, if passed, will break with
long-standing House precedent and choose winners and losers among SBA
programs. By doing so, it will create confusion among small firms
seeking to use the agency's initiatives.
As many of you know, since September 30, 2006, the SBA has been
operating under a series of 12 temporary extensions. While these
extensions have varied in length, they have always treated all of the
agency's programs and initiatives equally. This has resulted in all of
the SBA's programs operating unimpeded, ensuring that small businesses
have ready access to the tools and resources they need.
Unfortunately, S. 1082 takes the unprecedented step of setting
different authorization periods for certain SBA programs, creating a
maze of confusing dates and deadlines for small businesses. During a
time when efforts are being made to reduce regulatory burden, Congress
should make certain that it is not adding to it by its own unnecessary
actions.
Given the extraordinary nature of S. 1082, it should not be
considered and fast-tracked on the suspension calendar, which is
typically reserved for uncontroversial measures. Instead, such a unique
and precedent-setting measure should go through regular order, where
Members will have an opportunity to amend this unexpected and highly
unusual piece of legislation. At a minimum, this would enable Members
to have more time to understand the detrimental impact this legislation
could have on small businesses. Small businesses, such as those
represented by the U.S. Women's Chamber of Commerce, also oppose this
legislation.
Voting against this extension will not affect any agency program in a
meaningful way. Small businesses will still be able to secure
financing, receive contracts, and access training through the agency's
initiatives. What a vote against this legislation will do, however, is
ensure that we produce a more equitable piece of legislation that
treats all agency initiatives fairly. If parties are serious about
helping small businesses, they will reject this measure and work
expeditiously to approve a more responsible extension.
I urge my colleagues to vote ``no.''
Mr. Speaker, I yield back the balance of my time.
Mr. GRAVES of Missouri. I thank the ranking member.
In closing, just let me reiterate this is a simple, short-term
extension of programs that are very important to our Nation's small
businesses. We aren't changing any policy here. We are just extending
them until hopefully we can work out the differences with the other
body on the other side of the Capitol.
[[Page H3779]]
Again, I urge my colleagues to vote ``yes'' on S. 1082 and keep these
programs running so we can hopefully work out these differences.
Mr. MARKEY. Mr. Speaker, I rise in support of S. 1082, and in strong
support of the Small Business Innovation and Research program. I urge
my colleagues to vote yes, and send this extension to the President to
prevent this crucial program from lapsing.
This is a short term extension, coming on the heels of 10 short term
extensions in the past 3 years.
While I urge my colleagues to vote yes, I also urge members on both
sides to continue working on a long term reauthorization that brings
certainty to this program while at the same time preserving the initial
intent of SBIR: the nurturing of bona fide and innovative small
businesses. As of 2010, SBIR had granted 88,651 awards, totaling over
$28 billion, to Small Businesses around the country.
This program supports two of the things that I've spent my 35 years
in Congress fighting hard to advance: innovation and small business.
Nationally, the program is an unparalleled success. Even though SBIR
only accounts for 2.5% of the Research and Development extramural
budget, SBIR has provided 25% of the 100 most important innovations as
reported by R&D Magazine.
SBIR is the nation's largest source of early-stage research and
development funding. This program has provided for more than 50,000
patents since its inception, successfully harnessing the proven
innovative power of small, technology-based businesses to meet the
nation's technology needs.
On average, SBIR generates seven new patents per day--which is far
more than all U.S. universities combined--at less than one-twelfth
their level of federal research and development funding.
In Massachusetts, we know about innovation and energy. We might not
be blessed with Oil, or Natural gas, but we are blessed with a
different kind of energy.
My state of Massachusetts is not just ``The Bay State''--it's also
the Brain State.
Since its inception, over 12,500 awards have gone to Massachusetts,
totaling almost $4 billion. One need not travel far in my district to
see the affects of the SBIR program. Whether it is the development of
rapid, painless bedside muscle evaluation of children in Woburn, or the
study of Oral antibody therapy for Celiac disease in Wayland, this
program pushes small business, the engine of our economy, into new
levels of discovery and success.
I thank the Speaker for my time, and urge a yes vote on S. 1082.
Let's stand alongside Small Business, and save this crucial and
innovative program from lapsing.
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today in
support of S. 1082, the Small Business Additional Temporary Extension
Act of 2011.
I commend this legislation, which will provide for an additional
temporary extension of programs under the Small Business Act and the
Small Business Investment Act of 1958, including the SBIR and STTR
programs.
We all recognize the important role that small businesses play in
fueling technological innovation and creating jobs in the United
States. That being the case, we should be doing what we can to foster a
vibrant small business community and give our small businesses the
tools that they need to succeed. The SBIR and STTR programs are such
tools--they have been critically important programs for fostering
innovation by small businesses.
Through these two competitive programs, the Small Business
Administration ensures that the nation's small, high-tech, innovative
businesses are a significant part of the federal government's research
and development efforts.
Providing more than 50,000 patents since its inception, the SBIR is
the nation's largest source of early stage research and development
funding.
Unfortunately, the SBIR and STTR programs are set to expire tonight.
This short-term extension of the SBIR and STTR programs will provide
for the continuation of these important programs as we continue our
efforts to enact a comprehensive, long-term reauthorization. Extending
the programs by four months will give us the time we need to resolve
the few remaining issues, including the establishment of a formal
outreach program for women and minority-owned small businesses.
Increasing participation is one of the stated goals of the SBIR
program, and one for which the National Academies found a decidedly
mixed track record.
As we continue our efforts to keep our economy on the path to
recovery, it is more important than ever that we recommit ourselves to
these programs and get a comprehensive reauthorization bill enacted. In
the meantime, I urge my colleagues to support the Small Business
Additional Temporary Extension Act of 2011.
Ms. JACKSON LEE of Texas. Mr. Speaker, I rise in support of S. 1082,
``Small Business Additional Temporary Extension Act of 2011,'' which
temporarily extends from May 31, 2011 through July 31, 2011 certain
authorities of the Small Business Administration and its programs under
the Small Business Act and Small Business Investment Act of 1958. S.
1082 further amends the Small Business Act to reauthorize through
Fiscal Year 2011 the Small Business Innovation Research (SBIR) and
Small Business Technology Transfer (SBIR) programs of the Small
Business Administration (SBA), as well as the SBA's commercialization
pilot program.
American small businesses are the heart beat of our nation. I believe
that small businesses represent more than the American dream--they
represent the American economy. Small businesses account for 95 percent
of all employers, create half of our gross domestic product, and
provide three out of four new jobs in this country.
Through a bipartisan effort, Congress created SBIR in 1982 and STTR
in 1992. Comprehensive extensions for the programs were made in 2000
and 2001, respectively. The programs have received numerous temporary
extensions since they expired in 2008.
In particular, the SBIR and STTR programs technological innovation in
small, high technology firms to meet federal research and development
needs while increasing private sector commercialization and helping the
government solve its problems. Today, 11 Federal agencies (DoD and NIH
to USDA) allocate a portion of their research and development budgets
to projects with small businesses.
Studies show SBIR-backed firms have been responsible for roughly 25%
of the nation's most crucial innovations over the past decade and
account for 38% of America's patents. Among other things, SBIR/STTR
technology is used in the military's Bradley tank, the B-2 Bomber,
communication antennas for first responders in disaster zones, vehicles
for fire fighters combating wildfires, sensors used to detect brain
injuries sustained by high school athletes, and electric toothbrushes.
The SBIR/STTR awards have produced returns on investments. For
example, some of the firms have paid more in taxes than they received
under the SBIR program, have employed thousands of employees, and saved
state governments millions of dollars.
Furthermore, small business in Texas would be at risk of losing
millions in SBIR/STTR awards, ranking 7th in the nation to receive
awards. In 2009 alone, small business in Texas received 278 awards
totaling $89.5 million.
Small business growth means economic growth for the nation. But to
keep this segment of our economy thriving, entrepreneurs need access to
loans. Through loans, small business owners can expand their
businesses, hire more workers and provide more goods and services. The
Small Business Administration (SBA), a federal organization that aids
small businesses with loan and development programs, is a key provider
of support to small businesses. The SBA's main loan program accounts
for 30 percent of all long-term small business borrowing in America.
I have worked hard to help small business owners to fully realize
their potential. That is why I support entrepreneurial development
programs, including the Small Business Development Center and Women's
Business Center programs. These initiatives provide counseling in a
variety of critical areas, including business plan development,
finance, and marketing. We must consider what impact changes in this
appropriations bill will have on small businesses.
There are 5.8 million minority owned businesses in the United States,
representing a significant aspect of our economy. In 2007, minority
owned businesses employed nearly 6 million Americans and generated $1
trillion dollars in economic output.
Women owned businesses have increased 20% since 2002, and currently
total close to 8 million. These organizations make up more than half of
all businesses in health care and social assistance.
My home city of Houston, Texas is home to more than 60,000 women
owned businesses, and more than 60,000 African American owned
businesses.
According to a 2009 report published by the Economic Policy
Institute, ``Starting in 2004, the Small Business Administration (SBA)
set goals for small business participation in federal contracts. It
encouraged agencies to award contracts to companies owned by women,
veterans, and minorities or those located in economically challenged
areas and gave them benchmarks to work toward. The targets are
specific: 23% of contracts to small business, 5% to woman-owned small
businesses, and 3% to disabled veteran-owned and HUBZone small
businesses.''
Women and minority owned businesses generate billions of dollars and
employ millions
[[Page H3780]]
of people. They are certainly qualified to receive these contracts. A
mandatory DOD outreach program would make women and minority owned
businesses aware of all of the contract opportunities available to
them.
FACTS, small business are important because they:
(1) Represent 99.7 percent of all employer firms,
(2) Employ just over half of all private sector employees,
(3) Pay 44 percent of total U.S. private payroll,
(4) Generated 64 percent of net new jobs over the past 15 years,
(5) Create more than half of the nonfarm private gross domestic
product (GDP),
(6) Hire 40 percent of high tech workers (such as scientists,
engineers, and computer programmers), are
(7) Are 52 percent home-based and 2 percent franchises
(8) Made up 97.3 percent of all identified exporters and produced
30.2 percent of the known export value in FY 2007,
(9) Produce 13 times more patents per employee than large patenting
firms and twice as likely as large firm patents to be among the one
percent most cited.
Mr. GRAVES of Missouri. I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Graves) that the House suspend the rules
and pass the bill, S. 1082.
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 motion will be
postponed.
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