[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.

                          ____________________