[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.
____________________