[Congressional Record Volume 162, Number 143 (Wednesday, September 21, 2016)]
[House]
[Pages H5776-H5779]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
IMPROVING SMALL BUSINESS CYBER SECURITY ACT OF 2016
Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 5064) to amend the Small Business Act to allow small
business development centers to assist and advise small business
concerns on relevant cyber security matters, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5064
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 ``Improving Small Business
Cyber Security Act of 2016''.
SEC. 2. ROLE OF SMALL BUSINESS DEVELOPMENT CENTERS IN CYBER
SECURITY AND PREPAREDNESS.
Section 21 of the Small Business Act (15 U.S.C. 648) is
amended--
(1) in subsection (a)(1), by striking ``and providing
access to business analysts who can refer small business
concerns to available experts:'' and inserting ``providing
access to business analysts who can refer small business
concerns to available experts; and, to the extent
practicable, providing assistance in furtherance of the Small
Business Development Center Cyber Strategy developed under
section 5(b) of the Improving Small Business Cyber Security
Act of 2016:''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) in subparagraph (E), by striking ``and'' at the end;
(ii) in subparagraph (F), by striking the period and
inserting ``; and''; and
(iii) by adding at the end of the following:
``(G) access to cyber security specialists to counsel,
assist, and inform small business concern clients, in
furtherance of the Small Business Development Center Cyber
Strategy developed under section 5(b) of the Improving Small
Business Cyber Security Act of 2016.''.
SEC. 3. ADDITIONAL CYBER SECURITY ASSISTANCE FOR SMALL
BUSINESS DEVELOPMENT CENTERS.
Section 21(a) of the Small Business Act (15 U.S.C. 648(a))
is amended by adding at the end the following:
``(8) Cyber security assistance.--The Department of
Homeland Security, and any other Federal department or agency
in coordination with the Department of Homeland Security, may
leverage small business development centers to provide
assistance to small businesses by disseminating cyber
security risk information and other homeland security
information to help small business concerns in developing or
enhancing cyber security infrastructure, cyber threat
awareness, and cyber training programs for employees.''.
SEC. 4. CYBER SECURITY OUTREACH FOR SMALL BUSINESS
DEVELOPMENT CENTERS.
Section 227 of the Homeland Security Act of 2002 (6 U.S.C.
148) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Cybersecurity Outreach.--
``(1) In general.--The Secretary may leverage small
business development centers to provide assistance to small
business concerns by disseminating information on cyber
threat indicators, defensive measures, cybersecurity risks,
incidents, analyses, and warnings to help small business
concerns in developing or enhancing cybersecurity
infrastructure, cyber threat awareness, and cyber training
programs for employees.
``(2) Definitions.--For purposes of this subsection, the
terms `small business concern' and `small business
development center' have the meaning given such terms,
respectively, under section 3 of the Small Business Act.''.
SEC. 5. GAO STUDY ON SMALL BUSINESS CYBER SUPPORT SERVICES
AND SMALL BUSINESS DEVELOPMENT CENTER CYBER
STRATEGY.
(a) Review of Current Cyber Security Resources.--
(1) In general.--The Comptroller General of the United
States shall conduct a review of current cyber security
resources at the Federal level aimed at assisting small
business concerns with developing or enhancing cyber security
infrastructure, cyber threat awareness, or cyber training
programs for employees.
(2) Content.--The review required under paragraph (1) shall
include the following:
(A) An accounting and description of all Federal Government
programs, projects, and activities that currently provide
assistance to small business concerns in developing or
enhancing cyber security infrastructure, cyber threat
awareness, or cyber training programs for employees.
(B) An assessment of how widely utilized the resources
described under subparagraph (A) are by small business
concerns and a review of whether or not such resources are
duplicative of other programs and structured in a manner that
makes them accessible to and supportive of small business
concerns.
(3) Report.--The Comptroller General shall issue a report
to the Congress, the Administrator of the Small Business
Administration, the Secretary of Homeland Security, and any
association recognized under section 21(a)(3)(A) of the Small
Business Act containing all findings and determinations made
in carrying out the review required under paragraph (1).
(b) Small Business Development Center Cyber Strategy.--
(1) In general.--Not later than 90 days after the issuance
of the report under subsection (a)(3), the Administrator of
the Small Business Administration and the Secretary of
Homeland Security shall work collaboratively to develop a
Small Business Development Center Cyber Strategy.
(2) Consultation.--In developing the strategy under this
subsection, the Administrator of the Small Business
Administration and the Secretary of Homeland Security shall
consult with entities representing the concerns of small
business development centers, including any association
recognized under section 21(a)(3)(A) of the Small Business
Act.
(3) Content.--The strategy required under paragraph (1)
shall include, at minimum, the following:
(A) Plans for leveraging small business development centers
(SBDCs) to access existing cyber programs of the Department
of Homeland Security and other appropriate Federal agencies
to enhance services and streamline cyber assistance to small
business concerns.
(B) To the extent practicable, methods for the provision of
counsel and assistance to
[[Page H5777]]
improve a small business concern's cyber security
infrastructure, cyber threat awareness, and cyber training
programs for employees, including--
(I) working to ensure individuals are aware of best
practices in the areas of cyber security, cyber threat
awareness, and cyber training;
(ii) working with individuals to develop cost-effective
plans for implementing best practices in these areas;
(iii) entering into agreements, where practical, with
Information Sharing and Analysis Centers or similar cyber
information sharing entities to gain an awareness of
actionable threat information that may be beneficial to small
business concerns; and
(iv) providing referrals to area specialists when
necessary.
(c) An analysis of--
(I) how Federal Government programs, projects, and
activities identified by the Comptroller General in the
report issued under subsection (a)(1) can be leveraged by
SBDCs to improve access to high-quality cyber support for
small business concerns;
(ii) additional resources SBDCs may need to effectively
carry out their role; and
(iii) how SBDCs can leverage existing partnerships and
develop new ones with Federal, State, and local government
entities as well as private entities to improve the quality
of cyber support services to small business concerns.
(4) Delivery of strategy.--Not later than 180 days after
the issuance of the report under subsection (a)(3), the Small
Business Development Center Cyber Strategy shall be issued to
the Committees on Homeland Security and Small Business of the
House of Representatives and the Committees on Homeland
Security and Governmental Affairs and Small Business and
Entrepreneurship of the Senate.
(c) Definition.--The term ``small business development
center'' has the meaning given such term in section 3 of the
Small Business Act (15 U.S.C. 632).
SEC. 6. PROHIBITION ON ADDITIONAL FUNDS.
No additional funds are authorized to be appropriated to
carry out the requirements of this Act or the amendments made
by this Act. Such requirements shall be carried out using
amounts otherwise authorized.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Chabot) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days to revise and extend their remarks and to
include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
It is an honor to serve as chairman of the House Small Business
Committee. It affords me the special opportunity of hearing directly
from the very men and women who help drive our economy--America's
small-business owners.
At a hearing several months ago, a small business owner shared his
personal experience with a serious cyber attack. He said:
I logged into our bank accounts, and to my utter horror, I
found that my balance was zero. This was a payday, and I was
terrified that the paychecks that were issued that day would
not clear. We were supporting a number of families, many of
which live paycheck to paycheck and could not have made it
without the paycheck we issued that day. I was also very
worried about our business' reputation since a restaurant
nearby had just bounced their paychecks, and the company
never recovered from the bad publicity they received from not
making their payroll.
Stories like this show the real-world consequences of cyber attacks.
Small businesses are at serious risk from a growing number of cyber
threats.
There is no doubt that the information technology revolution has
provided small businesses with new tools and opportunities to compete
in the global economy. However, technology changes mean hackers are
coming up with more and more sophisticated methods to go after
intellectual property, bank accounts, Social Security numbers, and
anything else that can be used for financial gain or for a competitive
edge.
In 2015, the average amount stolen from small business bank accounts
after a cyber attack was over $32,000; and according to a recent report
by Verizon Enterprise Solutions, a shocking 71 percent of cyber attacks
occurred in businesses with fewer than 100 employees.
It is absolutely critical to both the economic and national security
of this country that our small businesses have all of the necessary
cyber tools to protect themselves from cyber attacks. Small businesses
lack the resources to combat cyber attacks. The Federal Government
needs to step up its game when it comes to protecting the cybersecurity
of small businesses and individuals. That is why I support H.R. 5064,
the Improving Small Business Cyber Security Act of 2016.
This legislation will help small businesses that face cyber threats
by providing access to additional tools, resources, and expertise
through existing Federal cyber resources by allowing the Department of
Homeland Security and other Federal agencies to provide assistance to
small businesses through the Small Business Administration's non-
Federal partners, the Small Business Development Centers, or SBDCs.
This increased coordination will lead to greater cyber support for
small businesses.
I commend Mr. Hanna for his hard work on this legislation. He has
done a great job as chairman of his subcommittee. Unfortunately, he
announced his retirement, and he will be leaving us after this term. He
has really done a tremendous amount of work for small businesses all
over the country because he, himself, has been a successful small-
business person; so he knows what the challenges are, and he has tried
to put them to work in his years here in the House in helping small
businesses all across the country. After all, 70 percent of the new
jobs that are created in the American economy are created by small
businesses, so they are absolutely critical. Again, I commend Mr. Hanna
for his hard work on behalf of these folks.
I urge my colleagues to support H.R. 5064.
Mr. Speaker, I reserve the balance of my time.
{time} 2000
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
I rise in support of H.R. 5064, the Improving Small Business Cyber
Security Act of 2016. Technology has changed the way we all live, but
none more so than for small businesses. It has afforded America's small
employers a unique opportunity to sell their products not just
nationally, but globally.
Despite new occasions for economic growth, technology has also
introduced profound risks. We hear too often of data breaches and cyber
espionage. Yet, we never really think this could happen to us until it
does. All it takes is one incident to have devastating impacts to small
businesses. In fact, 60 percent of small entities go out of business
after 6 months of being hacked.
Clearly, cybersecurity should be a priority to protect our national
security and economy. Failure to do so leaves us all at risk. Whether a
business is adopting cloud computing or simply maintaining a Web site,
cybersecurity should be part of their plan. However, only 31 percent of
small firms take active measures to guard against such attacks, making
them the ideal target for cybercriminals.
A lack of awareness and the high cost to install security mechanisms
leaves many small-business owners exposed. Those that are aware of the
threat, like government contractors, must navigate demanding IT
specifications and complex regulations in order to stay competitive and
win Federal contracts.
To help facilitate the preventive measures within the private sector,
H.R. 5064, the Improving Small Business Cyber Security Act, will
leverage the Small Business Administration's vast network of Small
Business Development Centers.
With 63 lead centers and 900 outreach locations, SBDCs have the
capacity to reach small businesses throughout the country. They also
have a proven record of assisting entrepreneurs with extensive courses
in management and technical assistance. In the last fiscal year, SBDCs
trained over 260,000 clients and advised almost 190,000 clients.
This bill will utilize these existing resource partners by allowing
the centers to assist small firms in developing and enhancing their
cybersecurity infrastructure and employee training programs. The bill
also calls for an SBDC cyber strategy to be designed to further support
small employers to
[[Page H5778]]
protect themselves, their employees, and their customers.
This legislation ensures that our national efforts combating cyber
attacks can be utilized by our Nation's more vulnerable businesses. We
cannot continue to accept the bare minimum as our Nation seeks to end
continued data breaches. Therefore, I ask my fellow Members to support
this bill.
Let me just take this opportunity, also, to commend the gentleman
from New York (Mr. Hanna) for the great work that he has done on this
issue.
I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield 3 minutes to the gentleman from New
York (Mr. Hanna).
Mr. HANNA. Mr. Speaker, I want to thank Chairman Chabot, Chairman
McCaul, Ranking Member Velazquez, and Ranking Member Thompson for the
support of their committees on this bill. This bill was a collaborative
endeavor and all of their staffs worked hard and long to help ensure
this bill made it to the floor today.
I also want to thank the bill's lead sponsor, Representative Kilmer,
for working with us on this bipartisan legislation.
America's small businesses are a critical part of our Nation's
economy. There are 28 million small businesses, and in recent years
they have increasingly become the victims of cyber attacks. By one
estimate, nearly 70 percent of all cyber attacks are now being directed
at our Nation's small businesses.
The reason for this is clear. Small businesses too often lack the
resources or the experience required to make prudent investments in
cybersecurity.
The Improving Small Business Cyber Security Act addresses this issue
by empowering the more than 900 Small Business Development Centers
across our country to provide cyber support to these small businesses.
This support would be offered in accordance with a small business
cybersecurity strategy, which would be developed jointly by the
Department of Homeland Security and the Small Business Administration.
Cyber attacks can decimate small businesses, potentially costing them
tens of thousands of dollars to recover lost data and secure networks.
It is clear to all of us that the upfront cost to invest in state-of-
the-art technologies are prohibitive for many businesses.
This bill represents an opportunity to help small businesses bridge
the knowledge gap in cyberspace by empowering the Small Business
Development Centers to provide up-to-date relevant and cost-effective
cyber support to service them.
This bill also makes good financial sense. By relying on already
existing programs and infrastructure, it improves the Federal resources
we already have to ensure that they better work for America's small
businesses and at no additional cost.
I urge my colleagues to support this commonsense bill. Again, I would
like to thank Chairman Chabot for his support.
Ms. VELAZQUEZ. Mr. Speaker, I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. Knight), a member of the Small Business Committee.
Mr. KNIGHT. Mr. Speaker, we talk a lot about cybersecurity in the
context of national defense, and rightfully so. As a Nation, we ought
to take steps now to ensure our security into the 21st century. But
this is an issue that affects so many people. One that often gets
overlooked is the small business community.
As small businesses increasingly rely on Web-based products and
services, they offer themselves more and more attacks from
cybercriminals. Increases in technology have resulted in more
sophisticated methods of cyber attacks, including hacking, malicious
software, physical error, and lost or stolen devices.
Even a simple cyber attack can effectively destroy a small business.
In fact, 81 percent of small businesses are concerned about a cyber
attack, but only 63 percent have a cybersecurity measure in place.
Many businesses do not feel that they have the adequate legal
protections to share cyber threat indicators with the National
Cybersecurity and Communications Integration Center, the NCCIC. It is
clear to me that the public and private sector must work together to
protect our small businesses.
The Improving Small Business Cyber Security Act of 2016 eases the
burden on small businesses facing cyber threats by providing access to
additional tools, resources, and expertise through existing Federal
cyber resources.
I am proud to cosponsor this legislation, and it will lead to
increased security for our small businesses, which will lead to greater
growth and opportunities for them.
I urge this Chamber to support this important measure.
Ms. VELAZQUEZ. Mr. Speaker, I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Ratcliffe), who is the chairman of Homeland Security's
Subcommittee on Cybersecurity, Infrastructure Protection, and Security
Technologies, which handles cybersecurity and a number of other very
important issues.
Mr. RATCLIFFE. Mr. Speaker, I rise today in support of H.R. 5064, the
Improving Small Business Cyber Security Act of 2016. I thank the
gentleman from New York (Mr. Hanna) for leading the charge on this very
important piece of legislation. I also thank Chairman Chabot for his
leadership on the Small Business Committee and Chairman McCaul for his
leadership on the Committee on Homeland Security.
Mr. Speaker, American small businesses are on the frontlines in the
battle against cybercriminals, but right now many of them lack the
resources to combat this growing and sophisticated threat. America's 28
million small businesses constitute 54 percent of our annual sales here
in the United States and, because of that, they are under cyber attack
like never before. The frequency and high costs of such attacks on
small businesses is causing ripple effects throughout our economy right
now.
H.R. 5064 amends the Homeland Security Act to ensure that Small
Business Development Centers can leverage existing cybersecurity
programs at the Department of Homeland Security. Additionally, this
bill requires the Department of Homeland Security and the Small
Business Administration to jointly develop a cyber strategy for small
businesses so that they can better utilize cyber programs from DHS and
from the Federal Government.
H.R. 5064 also requires a review by the Government Accountability
Office of current cybersecurity programs offered by the Federal
Government to small businesses.
Mr. Speaker, Small Business Development Centers have been on the
ground helping small businesses in this country for more than 30 years.
They have a presence in virtually every community in this country. This
bill provides them with tools, resources, and the expert guidance that
they need to tap into the already existing cyber resources in order to
better meet the 21st century needs of small businesses in this country.
Small businesses, Mr. Speaker, are the life blood of the American
economy, so we need to ensure that resources are available to all of
them to combat these cyber threats. This bill works to achieve that
goal.
I, therefore, ask my colleagues to join me in supporting H.R. 5064.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Our committee hears from small businesses too often about the cost
and complexities associated with cybersecurity. With businesses having
to be familiar with small business data regulations, ever-changing
cyber threats, and the cost to install and maintain a cybersecurity
system, many small-business owners wonder when they will have time to
actually operate their business.
The changes made by H.R. 5064 will unify our efforts and create a
streamlined process for small employers seeking to install cyber
safeguards. Utilizing the existing national network of SBDCs--many of
which small businesses already seek assistance from--as a source for
cyber education and awareness provides a critical tool for American
entrepreneurs.
I, once again, urge my colleagues to support this measure.
I yield back the balance of my time.
[[Page H5779]]
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume to
close.
Mr. Speaker, I would, first of all, like to thank my colleague,
Ranking Member Velazquez, for, once again, working in a bipartisan and
cooperative effort. That is one thing on the Small Business Committee
we always try to do, and we have a very good working relationship. I
want to thank the gentlewoman for continuing that on this bill and
bills in the past and, hopefully, bills in the future as well.
Relative to cybersecurity attacks, we have seen the United States
under a legion of attacks in recent years. They happen virtually every
day. The Federal Government itself has been hit a number of times. The
Office of Personnel Management had 20-plus-million personal individuals
who had their files hacked in the government. We have seen the Postal
Service, we have seen the State Department, and we have even seen the
White House hacked. So it is a big problem.
Now, this happens to large corporations. We have had some of the
largest corporations who have really taken it on the chin, and
literally it cost them millions of dollars. Corporations like Target
and you name it, they have really been hit. They generally have the
resources that they can recover from this. As detrimental as it is to
their business, they survive.
When this happens to small businesses, it may virtually be the death
knell for them. You may have families who no longer have their source
of support because the business just can't take a hit like this.
In my opening statement, I mentioned the person who knew the
restaurant down the street that it happened to them. The businessowner
wanted to pay his employees, and he couldn't pay them because his
balance was zero. So this is a serious threat.
The small business community needs help. This is a step in the right
direction. Representative Hanna, whom we have all praised, really does
deserve the praise because he took this and worked very hard to get
this bill to the point where we are here tonight. Hopefully we are
going to pass the bill.
So I think this is a great piece of legislation. H.R. 5064 would
offer much-needed cybersecurity support to America's small businesses.
It would also better coordinate the Federal Government's overall
strategy in helping small businesses to thwart cyber attacks.
I would urge my colleagues to support this bill.
I yield back the balance of my time.
{time} 2015
The SPEAKER pro tempore (Mr. Poliquin). The question is on the motion
offered by the gentleman from Ohio (Mr. Chabot) that the House suspend
the rules and pass the bill, H.R. 5064, 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.
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