[Congressional Record Volume 164, Number 74 (Tuesday, May 8, 2018)]
[House]
[Pages H3806-H3808]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2018

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1702) to amend the Small Business Act to improve the small 
business development centers program, and for other purposes, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows

                               H.R. 1702

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

     SECTION 1. SHORT TITLE.

       This subtitle may be cited as the ``Small Business 
     Development Centers Improvement Act of 2018''.

     SEC. 2. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT 
                   PROGRAMS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 47 as section 48; and
       (2) by inserting after section 46 the following new 
     section:

     ``SEC. 47. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT 
                   PROGRAMS.

       ``(a) Expanded Support for Entrepreneurs.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the Administrator shall only deliver entrepreneurial 
     development services, entrepreneurial education, support for 
     the development and maintenance of clusters, or business 
     training through a program authorized under--
       ``(A) section 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 29, or 32 
     of this Act; or
       ``(B) sections 358 or 389 of the Small Business Investment 
     Act of 1958.
       ``(2) Exception.--This section shall not apply to services 
     provided to assist small business concerns owned by an Indian 
     tribe (as such term is defined in section 8(a)(13)).
       ``(b) Annual Report.--Beginning on the first December 1 
     after the date of the enactment of this subsection, the 
     Administrator shall annually report to the Committee on Small 
     Business of the House of Representatives and the Committee on 
     Small Business and Entrepreneurship of the Senate on all 
     entrepreneurial development activities undertaken in the 
     current fiscal year through a program described in subsection 
     (a). Such report shall include--
       ``(1) a description and operating details for each program 
     and activity;
       ``(2) operating circulars, manuals, and standard operating 
     procedures for each program and activity;
       ``(3) a description of the process used to award grants 
     under each program and activity;
       ``(4) a list of all awardees, contractors, and vendors 
     (including organization name and location) and the amount of 
     awards for the current fiscal year for each program and 
     activity;
       ``(5) the amount of funding obligated for the current 
     fiscal year for each program and activity; and
       ``(6) the names and titles for those individuals 
     responsible for each program and activity.''.

     SEC. 3. MARKETING OF SERVICES.

       Section 21 of the Small Business Act (15 U.S.C. 648) is 
     amended by adding at the end the following:
       ``(o) No Prohibition of Marketing of Services.--The 
     Administrator shall not prohibit applicants receiving grants 
     under this section from marketing and advertising their 
     services to individuals and small business concerns.''.

     SEC. 4. DATA COLLECTION.

       (a) In General.--Section 21(a)(3)(A) of the Small Business 
     Act (15 U.S.C. 648(a)(3)(A)) is amended--
       (1) by striking ``as provided in this section and'' and 
     inserting ``as provided in this section,''; and
       (2) by inserting before the period at the end the 
     following: ``, and (iv) governing data collection activities 
     related to applicants receiving grants under this section''.
       (b) Annual Report on Data Collection.--Section 21 of the 
     Small Business Act (15 U.S.C. 648), as amended by section 3 
     of this Act, is further amended by adding at the end the 
     following:
       ``(p) Annual Report on Data Collection.--The Administrator 
     shall report annually to the Committee on Small Business of 
     the House of Representatives and the Committee on Small 
     Business and Entrepreneurship of the Senate on any data 
     collection activities related to the Small Business 
     Development Center Program.''.
       (c) Working Group To Improve Data Collection.--
       (1) Establishment and study.--The Administrator of the 
     Small Business Administration shall establish a group to be 
     known as the ``Data Collection Working Group'' consisting of 
     members from entrepreneurial development grant recipients 
     associations and organizations and officials from the Small 
     Business Administration, to carry out a study to determine 
     the best way to capture data collection and create or revise 
     existing systems dedicated to data collection.
       (2) Report.--Not later than the end of the 180-day period 
     beginning on the date of the enactment of this Act, the Data 
     Collection Working Group shall issue a report to the 
     Committee on Small Business of the House of Representatives 
     and the Committee on Small Business and Entrepreneurship of 
     the Senate containing the findings and determinations made in 
     carrying out the study required under paragraph (1), 
     including--
       (A) recommendations for revising existing data collection 
     practices; and
       (B) a proposed plan for the Small Business Administration 
     to implement such recommendations.

     SEC. 5. FEES FROM PRIVATE PARTNERSHIPS AND COSPONSORSHIPS.

       Section 21(a)(3) of the Small Business Act (15 U.S.C. 
     648(a)(3)(C)), as amended by section 4, is further amended by 
     adding at the end the following:
       ``(D) Fees From Private Partnerships and Cosponsorships.--A 
     small business development center that participates in a 
     private partnership or cosponsorship with the Administration 
     shall not be prohibited from collecting fees or other income 
     related to the operation of such a private partnership or 
     cosponsorship.''.

     SEC. 6. EQUITY FOR SMALL BUSINESS DEVELOPMENT CENTERS.

       Subclause (I) of section 21(a)(4)(C)(v) of the Small 
     Business Act (15 U.S.C. 648(a)(4)(C)(v)) is amended to read 
     as follows:

       ``(I) In general.--Of the amounts made available in any 
     fiscal year to carry out this section, not more than $600,000 
     may be used by the Administration to pay expenses enumerated 
     in subparagraphs (B) through (D) of section 20(a)(1).''.

     SEC. 7. CONFIDENTIALITY REQUIREMENTS.

       Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 
     648(a)(7)(A)) is amended by inserting after ``under this 
     section'' the following: ``to any State, local, or Federal 
     agency, or to any third party''.

[[Page H3807]]

  


     SEC. 8. LIMITATION ON AWARD OF GRANTS TO SMALL BUSINESS 
                   DEVELOPMENT CENTERS.

       (a) In General.--Section 21 of the Small Business Act (15 
     U.S.C. 648), as amended by section 4, is further amended--
       (1) in subsection (a)(1), by striking ``any women's 
     business center operating pursuant to section 29,''; and
       (2) by adding at the end the following:
       ``(q) Limitation on Award of Grants.--Except for not-for-
     profit institutions of higher education, and notwithstanding 
     any other provision of law, the Administrator may not award 
     grants (including contracts and cooperative agreements) under 
     this section to any entity other than those that received 
     grants (including contracts and cooperative agreements) under 
     this section prior to the date of the enactment of this 
     subsection, and that seek to renew such grants (including 
     contracts and cooperative agreements) after such date.''.
       (b) Rule of Construction.--The amendments made by this 
     section may not be construed as prohibiting a women's 
     business center (as described under section 29 of the Small 
     Business Act (15 U.S.C. 656)) from receiving a subgrant from 
     an entity receiving a grant under section 21 of the Small 
     Business Act (15 U.S.C. 648).

  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 include 
extraneous material 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.
  Mr. Speaker, H.R. 1702, the Small Business Development Centers 
Improvement Act of 2018, will expand the resources available to 
America's entrepreneurs through the nearly 1,000 small business 
development centers, or SBDCs, located throughout the country.
  Mr. Speaker, I thank the gentleman from Pennsylvania (Mr. Evans) for 
introducing this bill.
  Over 99 percent of all businesses in our Nation are small, and those 
businesses employ nearly 60 million Americans. The U.S. economy depends 
on the success of small businesses. Providing support to entrepreneurs 
and small-business owners must be a priority for this Congress, and 
SBDCs offer that support.
  Small business development centers offer low- or no-cost business 
counseling and training to aspiring entrepreneurs and existing small-
business owners alike. The support offered at these centers ranges from 
creating the first business plan, commercial advertising and branding, 
and navigating the international trade market.
  The importance of the assistance offered at SBDCs really cannot be 
overstated. In fiscal year 2017 alone, last year, SBDCs trained over 
245,000 clients and advised over 188,000 individuals, resulting in the 
creation of over 14,000 new small businesses and the infusion of 
roughly $5.6 billion into the American economy.
  For every Federal dollar appropriated to the SBDC program, $43.50 in 
new capital was generated. The legislation we are discussing today will 
only serve to increase the impact of SBDCs.
  H.R. 1702 includes a number of commonsense updates to the SBDC 
program. This legislation will increase awareness of the technical and 
managerial training opportunities offered at centers by allowing SBDCs 
to market and advertise their products and services. This simple change 
can have a significant impact on our economy by ensuring that those 
entrepreneurs seeking to start or scale a business know where to turn 
for help.
  Additionally, H.R. 1702 will strengthen the SBDC accreditation 
process and ensure client information remains confidential. These 
changes facilitate the efficient and effective use of taxpayer dollars 
at every SBDC.
  Through H.R. 1702, this legislation, we will provide greater support 
to the men and women throughout our country who are working tirelessly 
to create jobs, enhance our communities, and support our economies.
  Mr. Speaker, I urge my colleagues to support this legislation, and I 
reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself as much time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 1702, the Small Business 
Development Centers Improvement Act.
  Whether it is helping to create a business plan, navigate the 
procurement process, market a new product, or identify international 
trade opportunities, the SBA's entrepreneurial development programs 
provide an array of services to help small firms navigate obstacles, 
grow, and thrive.
  Entrepreneurs, therefore, significantly benefit from having tools to 
identify, fiscally plan for, and maintain critical business 
improvements.
  Entrepreneurs located throughout the country, including in 
underserved rural and inner-city communities, benefit from accessible, 
affordable technical assistance. This reduces their isolation from 
buyers and other businesses.
  In addition to outreach, hands-on counseling is critical for 
businesses to obtain information pertinent to their local market and 
capacities. That is why SBDCs are so critical to our local communities.
  Today's bill modernizes and strengthens the SBDC network by improving 
data collection, streamlining collaboration, reducing paperwork, and 
allowing additional outreach on marketing to be performed.
  H.R. 1702 is a comprehensive bill providing necessary steps forward 
to advance our Nation's entrepreneurial economic system.
  Mr. Speaker, I urge Members to support this legislation, and I 
reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Kentucky (Mr. Comer), a very valuable member of the 
Small Business Committee.
  Mr. COMER. Mr. Speaker, I thank the chairman for yielding.
  Mr. Speaker, H.R. 1709, the Small Business Development Centers 
Improvement Act of 2018, expands support for entrepreneurs by 
modernizing the statute governing the Small Business Administration's 
Small Business Development Centers program.
  Small Business Development Centers, or SBDCs, provide entrepreneurs 
and small-business owners with business counseling and training at 
roughly 1,000 locations throughout the country.
  These centers, spanning rural and urban areas alike, have had an 
immense impact on the American economy. As a result of SBDC training, a 
new job is created every 5\1/2\ minutes, a new business is created 
every 30 minutes, and $100,000 in sales is generated every 8.2 minutes.
  The SBDC program is providing small-business owners and entrepreneurs 
with the resources they need to be successful.
  H.R. 1702 further expands support for entrepreneurs by ensuring that 
the SBA focuses its resources and attention on congressionally 
authorized entrepreneurial development programs, such as SBDCs. This 
provision will promote operational efficiency within these programs, to 
the benefit of both small-business owners and taxpayers.
  Additionally, this legislation allows SBDCs to market or advertise 
their business counseling and training programs. This will increase the 
impact of SBDCs by ensuring that entrepreneurs and small-business 
owners are aware of the resources available to them.

                              {time}  1430

  Finally, H.R. 1702 includes minor programmatic updates, including 
confidentiality requirements and data collection requirements that 
allow for the continued integrity of the SBDC program overall.
  Small business development centers serve an important purpose in 
furthering entrepreneurship and business creation throughout the United 
States. H.R. 1702 allows SBDCs to continue to fulfill this purpose.
  I urge my colleagues to support the bill.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 5 minutes to the gentleman from 
Pennsylvania (Mr. Evans), who is the ranking member of the Subcommittee 
on Economic Growth, Tax and Capital Access and also a sponsor of the 
bill.

[[Page H3808]]

  

  Mr. EVANS. Mr. Speaker, I rise in support of H.R. 1702, the Small 
Business Development Centers Improvement Act of 2018.
  I want to thank my colleague, Congressman Blum of Iowa, for working 
with me to help American small businesses via this critical Small 
Business Development Centers bill.
  The small business development centers provide assistance in 
Philadelphia and nationwide to small businesses and aspiring 
entrepreneurs throughout the United States and its territories. SBDCs 
help entrepreneurs from Ogontz Avenue to Broad Street to realize the 
dream of owning a business and help existing businesses remain 
competitive in a complex, ever-changing global marketplace.
  SBDCs are hosted by leading universities and State economic 
development agencies and funded, in part, through a partnership with 
SBA. SBA advisers provide aspiring and current small-business owners a 
variety of free business counseling and low-cost training centers and 
business development plans, manufacturing assistance, financial 
packaging, lending assistance, exporting and importing support, 
disaster recovery assistance, procurement and contracting aid, market 
research help and program support, and healthcare guidance.
  Mr. Speaker, last week, at the Enterprise Center Minority Business 
Development Center in Philadelphia, run by an incredibly capable woman 
by the name of Della Clark, I had the honor of hosting the gentlewoman 
from New York, Ranking Member Velazquez, at a roundtable for women 
entrepreneurs.
  I want to take a moment to thank the participants, the audience, and 
the community, as this is the type of collaboration necessary to ensure 
that we use small businesses and the SBDCs as another tool in the 
toolbox to help revitalize our city and remake it. Roundtables like 
those last week in Philadelphia are where entrepreneurs can share 
information, resources, and expertise, like background on small 
business development centers, with those who may not be aware of them.
  Access to capital is key for entrepreneurs in Philadelphia that look 
to start new business ventures and expand existing ones. Economic 
development, both long- and short-term, is a by-product of small 
businesses receiving affordable financing to help them create jobs in 
their local communities.
  This is an example of small business firms utilizing other financial 
programs, but this is where SBDCs are so critical because they help us 
make the connection to financing that otherwise would be missing. 
Traditional lending sources often ignore many communities around the 
country, resulting in small business utilization of other financial 
programs.
  SBDCs began in 1976 with only eight participating universities. In 
fiscal year 2017, 188,225 entrepreneurs now receive business 
consulting, over 245,000 entrepreneurs are trained, and 14 million new 
businesses were created because of SBDCs.
  Sometimes small businesses will utilize traditional sources such as 
their local banks, but many small bank owners will attest, sometimes 
avenues are not available, and that is where the SBA can be a 
lifesaver. Among the improvements we can make, we can work to make 
SBDCs better through the grants, loans, and other assistance to make 
SBDCs the garage of today, so that when an entrepreneur from North 
Philly has a dream, guts, and moxie to walk into one, they are not 
laughed at and turned away or spurned away. Let's face it: many of the 
people who have that dream and inspiration are not experts at 
spreadsheets, invoice management, and contract jargon.
  This is a goal, as a member of this important committee, to ensure 
that any American can use the SBDC as a garage, like the Steve Jobs, 
Bill Gates, and Angela Riches of the world. Mr. Speaker, that is what 
the American Dream is all about.
  I look forward to working with my colleague, Congressman Blum, and 
other members of the committee. I especially want to thank all of the 
members of the committee working together because, when areas such as 
North Philly, West Philly, South Philly, Narberth, Bala Cynwyd, or 
Ardmore have investment and capital needs, they know where to go and 
whom to ask for the SBA assistance.
  Mr. Speaker, I thank my colleagues, and I encourage them to vote 
``yes'' on H.R. 1702.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  There is no question that we need to support the cornerstone of the 
SBA's entrepreneurial programs, the small business development centers. 
H.R. 1702 does just that by updating marketing strategies and requiring 
more reporting so we can better understand the system provided to our 
constituencies.
  Today's bill is endorsed by America's SBDCs, an association 
representing the 63 SBDC networks and their nearly 1,000 centers.
  I would like to thank Representative Evans for leading this bill and 
all his efforts to improve the program. I would also like to thank 
Halimah Locke and Veena Srinivasa for their dedicated work on 
this legislation.

  I urge Members to support this bill, and I yield back the balance of 
my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to commend the gentleman from Pennsylvania (Mr. 
Evans) for his leadership on this and many other issues on the 
committee.
  The small business development centers, SBDCs, serve, really, a very 
important purpose in furthering entrepreneurship and business creation 
throughout the United States. Many of the Nation's nearly 30 million 
small businesses have utilized the services offered by the SBDCs, and 
this bill improves and modernizes that network.
  I again want to commend Mr. Evans for formulating this bill, pushing 
it through, and now taking this important step in actually entering it 
into the law.
  I urge my colleagues to support this bipartisan legislation, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. 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. 1702, 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.

                          ____________________