[Congressional Record Volume 165, Number 166 (Monday, October 21, 2019)]
[House]
[Pages H8266-H8268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2019

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4406) 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. 4406

       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 Development 
     Centers Improvement Act of 2019''.

     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 49 as section 50; and
       (2) by inserting after section 48 the following new 
     section:

     ``SEC. 49. 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, and support 
     for the development and maintenance of the Regional 
     Innovation Clusters Program (or similar business training 
     services) 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 section, the 
     Administrator shall annually submit to the Committee on Small 
     Business of the House of Representatives and the Committee on 
     Small Business and Entrepreneurship of the Senate a report on 
     the following:
       ``(1) All entrepreneurial development activities undertaken 
     during the fiscal year preceding the date of the report 
     through a program described in subsection (a), including--
       ``(A) a description and operating details for each program 
     and the activities performed under each program;
       ``(B) operating circulars, manuals, and standard operating 
     procedures for each program;
       ``(C) a description of the process used to award grants 
     under such programs;
       ``(D) a list of all recipients of awards under a program 
     described in subsection (a), contractors, and vendors 
     (including organization name and location) and the amount of 
     awards provided during the fiscal year preceding the date of 
     the report for such programs and activities performed under 
     such programs;
       ``(E) the total amount of funding obligated for such 
     programs and activities for the fiscal year preceding the 
     date of the report; and
       ``(F) the names and titles of the individuals responsible 
     for such programs.
       ``(2) For entrepreneurial development activities undertaken 
     during the fiscal year preceding the date of the report 
     through the Small Business Development Center Program (in 
     this section referred to as the `Program')--
       ``(A) the number of individuals counseled or trained 
     through the Program;
       ``(B) the total number of hours of counseling and training 
     services provided through the Program;
       ``(C) the demographics of participants in the Program, 
     which shall include the gender, race, and age of each such 
     participant;
       ``(D) the number of participants in the Program who are 
     veterans;
       ``(E) the number of new businesses started by participants 
     in the Program;
       ``(F) to the extent practicable, the number of jobs 
     supported, created, or retained with assistance from small 
     business development centers;
       ``(G) the amount of capital secured by participants in the 
     Program, including through loans and equity investment;
       ``(H) the number of participants in the Program receiving 
     financial assistance, including the type and dollar amount, 
     under the loan programs of the Administration;
       ``(I) an estimate of gross receipts, including (to the 
     extent practicable) a description of any change in revenue, 
     of small business concerns assisted through the Program;
       ``(J) the number of referrals to other resources and 
     programs of the Administration;
       ``(K) the results of satisfaction surveys of participants 
     in the Program, including a summary of any comments received 
     from such participants; and
       ``(L) any recommendations by the Administrator to improve 
     the delivery of services by the Program.''.

     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.--An 
     applicant receiving a grant under this section may market and 
     advertise the services of such applicant to individuals and 
     small business concerns.''.

     SEC. 4. DATA COLLECTION BY THE SMALL BUSINESS DEVELOPMENT 
                   CENTER ASSOCIATION.

       (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 annually submit to the Committee on Small Business of 
     the House of Representatives and the Committee on Small 
     Business and Entrepreneurship of the Senate a report 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 
     entrepreneurial development grant recipients, the 
     associations and organizations representing such recipients, 
     and officials from the Small Business Administration, to 
     carry out a study to determine the best methods for 
     conducting data collection activities 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 for the Small Business Development Center Program; 
     and
       (B) a proposed plan for the Administrator of 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)) is 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, in which the 
     Administrator or designee of the Administrator also 
     participates, may collect fees or other income related to the 
     operation of such 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)(I)) 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--
       (1) by striking ``or telephone number'' and inserting ``, 
     telephone number, or email address''; and
       (2) by inserting ``, or the nature or content of such 
     assistance, to any State, local, or Federal agency, or to any 
     third party'' after ``receiving assistance under this 
     section''.

     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)--

[[Page H8267]]

       (A) by striking ``any women's business center operating 
     pursuant to section 29,'';
       (B) by striking ``or a women's business center operating 
     pursuant to section 29''; and
       (C) by striking ``and women's business centers 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 a 
     grant or contract to, or enter into a cooperative agreement 
     with, an entity under this section unless that entity--
       ``(1) received a grant or contract from, or entered into a 
     cooperative agreement with, the Administrator under this 
     section before the date of the enactment of this subsection; 
     and
       ``(2) seeks to renew such a grant, contract, or cooperative 
     agreement 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) from receiving a subgrant from an entity 
     receiving a grant under section 21 of the Small Business Act.

     SEC. 9. MANAGEMENT OF PROGRAM ACTIVITIES.

       Section 21(a)(3) of the Small Business Act (15 U.S.C. 
     648(a)(3)), as amended by section 4, is further amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``upon, with full participation of both parties,'' and 
     inserting ``upon with the full participation of all parties 
     (including the association authorized in subparagraph (A)), 
     and carried out'';
       (2) in subparagraph (A), by striking ``and develop'' and 
     inserting ``and negotiate the development of''; and
       (3) in subparagraph (C)--
       (A) by striking ``Whereas'';
       (B) by inserting ``Program'' after ``Center'';
       (C) by striking ``National'' and inserting ``national''; 
     and
       (D) by moving such subparagraph two ems to the left.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 
     648(a)(4)(C)) is amended--
       (1) in clause (vii), by striking ``subparagraph'' and all 
     that follows through the period at the end and inserting 
     ``subparagraph $175,000,000 for each of fiscal years 2020 
     through 2023.''; and
       (2) in clause (viii), by striking ``shall reserve not less 
     than $1,000,000'' and inserting ``shall reserve not more than 
     $2,000,000''.

     SEC. 11. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the measure under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of H.R. 4406, the Small Business 
Development Centers Improvement Act of 2019.
  Mr. Speaker, as always, before we address the many benefits of the 
bill, I just want to thank the ranking member and his staff for all of 
their collaboration and hard work to bring this bipartisan package of 
bills to the floor. Our committee prides itself on our ability to put 
the noise aside and get meaningful work accomplished.
  These bills are especially critical because they strengthen the 
entrepreneurial network of small businesses contributing to our country 
every day. It is once again a reminder of the importance of working 
across the aisle and getting things done for America's 30 million small 
businesses.
  H.R. 4406 bolsters the Small Business Development Center, or SBDC, 
Network, which is the Small Business Administration's largest 
entrepreneurial resource partner.
  The network delivers free face-to-face counseling and at-cost 
training in all aspects of business management to new and existing 
small firms. The services include, but are in no way limited to, 
assisting small businesses with developing a business plan, accessing 
capital, marketing, regulatory compliance, technology development, and 
international trade.
  The benefits of the program are tangible to businessowners and the 
Federal taxpayer. For every Federal dollar spent on SBDCs, $2 is 
returned to the U.S. Treasury, nearly $3 to the States, and 
approximately $48 in new capital is generated.
  Unfortunately, over the years, Congress has asked them to take on 
additional responsibilities, ranging from cybersecurity to export 
promotion. Increasing the authorization level to $175 million each 
year, just as this bill does, will allow the program to grow and reach 
more American entrepreneurs.
  H.R. 4406 also requires regular reporting to Congress on new metrics 
to help us better assess the program and how improvements can be made 
in the future.
  Starting a business is not for the faint of heart, and strengthening 
the network will enable SBDCs to continue providing the in-depth 
business training for aspiring entrepreneurs and small business owners.
  Mr. Speaker, I thank Mr. Golden and Vice Ranking Member Radewagen for 
leading this effort to improve the program, measure its success, and 
increase awareness of the SBDC program and its many valuable services.
  Mr. Speaker, I urge Members to support this bipartisan piece of 
legislation, and I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 4406, the Small Business 
Development Centers Improvement Act of 2019.
  Mr. Speaker, before I speak on the bill, I would like to thank 
Chairwoman Velazquez for working with us in such a bipartisan manner. 
It is surely refreshing in this age of intense partisanship to work 
together the way that we do, and have for many years now, to improve 
the programs offered by the SBA. So I want to thank the chairwoman 
again for her leadership on the committee.
  The Small Business Development Center program, or SBDC, is the 
largest of the SBA's entrepreneurial development programs, with 
locations in all 50 States and also in all four territories.
  In fiscal year 2019, more than 250,000 clients received low-cost 
training, and nearly 200,000 clients received no-cost business 
consulting.
  H.R. 4406, this bill, includes several updates based on feedback from 
H.R. 1702, the Small Business Development Centers Improvement Act of 
last year, 2018, which passed the House in May of 2018.
  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. SBDCs 
offer that support. They offer minimal or no-cost business counseling 
and training to would-be entrepreneurs and existing small business 
owners, alike.
  The support offered at these centers ranges from creating the 
business plans to commercial promotion and branding and navigating the 
international trade market. The importance of the assistance offered 
SBDCs cannot really be overstated.
  It is not just the single entrepreneur who benefits; our Nation 
benefits as well. For every Federal dollar appropriated in the SBDC 
program, $43.50 in new capital is generated. The legislation we are 
considering today will only serve to increase the positive impact of 
SBDCs to our entrepreneurs and national economy.
  Mr. Speaker, I want to thank the gentleman from Maine (Mr. Golden) 
and the gentlewoman from American Samoa (Mrs. Radewagen) for their hard 
work on this legislation.
  Mr. Speaker, I urge my colleagues to support the bill, and I reserve 
the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield as much time as he may consume to 
the gentleman from Maine (Mr. Golden), the sponsor of the bill and 
chair of the Subcommittee on Contracting and Infrastructure.
  Mr. GOLDEN. Mr. Speaker, I thank Chairwoman Velazquez for yielding me 
the time.
  Since coming to Congress 10 months ago, I have been focused on 
protecting

[[Page H8268]]

jobs in the State of Maine, and that means helping small businesses 
succeed.
  Thousands of small businesses in my State have launched or grown with 
help from small business development centers, or, as you heard them 
referred to, SBDCs.
  Just last year, SBDCs served over 1,500 small businesses in my State, 
helped to start 136 new businesses, and worked to protect or create 
more than 800 jobs. Here are just a few of the small businesses that I 
have heard from directly in my district about this program:
  SBDCs helped The Maine Meal in Skowhegan purchase a building in order 
to launch their new business;
  The Milk House in Monmouth received the accounting and tax advice 
that they needed to help grow their business from an SBDC adviser, an 
important farming and dairy industry right there;
  SBDCs helped Lost Valley Ski Area in Auburn, just across the river 
from my hometown, to develop a business plan so that they could secure 
the financing they needed to acquire and continue the Lost Valley Ski 
Area, which is very important to our community, particularly during the 
winter months.
  I have visited each of these businesses and seen their work 
firsthand. These are just a few of the thousands of SBDC success 
stories in the State of Maine.
  Given that small business development centers are the largest 
resource partner to SBA, it is particularly important for Congress to 
keep the program up to date and performing at a high level for small 
businesses throughout the country.
  In Maine, the State's lead SBDC runs 11 outreach locations in my 
congressional district alone, in partnership with regional economic 
development entities, enabling small businesses in Maine's rural 
communities to access valuable assistance.
  While the centers have had many successes, we have also learned 
lessons about ways to improve the programs in the year since it was 
last reauthorized. That is why I am excited to lead this bill, 
alongside Vice Ranking Member Radewagen, to reauthorize the program. 
Mr. Speaker, I want to thank her for her support of the bill. It has 
been a pleasure to work with her.
  The Small Business Development Centers Improvement Act of 2019 will 
make a number of positive changes to improve oversight, better enable 
SBDCs to partner with other organizations, bolster the center 
accreditation process, and improve the voice of SBDCs in setting the 
program's direction.
  I am particularly glad that the bill will help broaden rural small 
business access to this assistance by clarifying that centers are 
allowed to market and advertise their services. Rural access to SBA 
resources is key for States like Maine and many rural communities all 
over the country.
  Finally, the bill will reauthorize appropriations at the level of 
$175 million for fiscal years 2020 through 2023, reaffirming Congress' 
commitment to the program.
  Mr. Speaker, in closing, I would like to thank the chairwoman and the 
ranking member and, in particular, their staffs for forging a 
bipartisan path forward on the reauthorization of this program.
  I would also like to thank Vice Ranking Member Radewagen for 
coleading this bill with me, as well as Mr. Hagedorn, Mr. Evans, and 
Mr. Fitzpatrick for joining me as cosponsors.
  Mr. Speaker, I would encourage all of my colleagues to support this 
bill to keep the SBDC program up to date for the good of America's 
small businesses.
  Mr. CHABOT. Mr. Speaker, I yield myself the balance of my time. We 
have no further Members to speak on the bill, and I will be very brief.
  The SBDC program positively affects hundreds of thousands of 
entrepreneurs each year and offers a significant return on investment 
for American taxpayers.
  Mr. Speaker, this is a good, bipartisan bill, and I urge my 
colleagues to support it.
  Mr. Speaker, I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  America's 30 million small businesses account for more than 56 
million jobs and create two out of three private-sector jobs in the 
United States. The SBA offers a wide range of free or low-cost 
counseling and training services through its entrepreneurial ecosystem 
to help entrepreneurs launch and grow their businesses.
  H.R. 4406 makes a number of improvements to the SBDC program. It will 
enable more collaboration between the centers and SBA, improve the 
ability of this committee to oversee its performance, while also 
clarifying other rules, such as confidentiality requirements.
  Most importantly, this legislation is a much-needed reauthorization 
of the program for 4 years at greater authorization levels.
  It is time for Congress to prove its commitment to entrepreneurs all 
over the country by strengthening one of the greatest resources, the 
SBA SBDC program. It is a commonsense move and one supported by the 
Association of Small Business Development Centers.
  Mr. Speaker, again, I thank the ranking member for his support, and I 
urge my colleagues to support the bill.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 4406, as amended.
  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, further 
proceedings on this motion will be postponed.

                          ____________________