[Congressional Record Volume 165, Number 166 (Monday, October 21, 2019)]
[House]
[Pages H8268-H8274]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WOMEN'S BUSINESS CENTERS IMPROVEMENTS ACT OF 2019
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4405) to amend the Small Business Act to improve the women's
business center program, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4405
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 ``Women's Business Centers
Improvements Act of 2019''.
SEC. 2. AMENDMENTS TO WOMEN'S BUSINESS CENTER PROGRAM.
Section 29 of the Small Business Act (15 U.S.C. 656) is
amended to read as follows:
``SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.
``(a) Definitions.--In this section:
``(1) Assistant administrator.--The term `Assistant
Administrator' means the Assistant Administrator of the
Office of Women's Business Ownership established under
subsection (k).
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an organization described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code;
``(B) a State, regional, or local economic development
organization, so long as the organization certifies that
grant funds received under this section will not be
commingled with other funds;
``(C) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)), unless such institution is currently receiving a
grant under section 21;
``(D) a development, credit, or finance corporation
chartered by a State, so long as the corporation certifies
that grant funds received under this section will not be
commingled with other funds; or
``(E) any combination of entities listed in subparagraphs
(A) through (D).
``(3) Small business concern owned and controlled by
women.--The term `small business concern owned and controlled
by women' has the meaning given under section 3(n).
``(4) Women's business center.--The term `women's business
center' means the location at which counseling and training
on the management, operations (including manufacturing,
services, and retail), access to capital, international
trade, Government procurement opportunities, and any other
matter that is needed to start, maintain, or expand a small
business concern owned and controlled by women.
``(5) Women's business center association.--The term
`Women's Business Center Association' means a membership
organization formed by women's business centers to pursue
matters of common concern.
[[Page H8269]]
``(b) Authority.--
``(1) Establishment.--There is established a Women's
Business Center Program under which the Administrator may
provide a grant to any eligible entity to operate one or more
women's business centers for the benefit of small business
concerns owned and controlled by women.
``(2) Use of funds.--The women's business centers shall be
designed to provide counseling and training that meets the
needs of the small business concerns owned and controlled by
women, especially socially or economically disadvantaged
women, and shall provide--
``(A) financial assistance, including training and
counseling in how to apply for and secure business credit and
investment capital, preparing and presenting financial
statements, and managing cash flow and other financial
operations of a small business concern;
``(B) management assistance, including training and
counseling in how to plan, organize, staff, direct, and
control each major activity and function of a small business
concern; and
``(C) marketing assistance, including training and
counseling in identifying and segmenting domestic and
international market opportunities, preparing and executing
marketing plans, developing pricing strategies, locating
contract opportunities, negotiating contracts, and utilizing
varying public relations and advertising techniques.
``(3) Types of grants.--
``(A) Initial grant.--The amount of an initial grant, which
shall be for a 5-year term, provided under this subsection to
an eligible entity shall be not more than $300,000 annually
(as such amount is annually adjusted by the Administrator to
reflect the change in inflation).
``(B) Continuation grants.--The Administrator may award a
continuation grant, which shall be for a 5-year term, of not
more than $300,000 annually (as such amount is annually
adjusted by the Administrator to reflect the change in
inflation) to an eligible entity that received an initial
grant under subparagraph (A). There shall be no limitation on
the number of continuation grants an eligible entity may
receive under this section.
``(c) Application.--
``(1) Initial grants and continuation grants.--To receive
an initial grant or continuation grant under this section, an
eligible entity shall submit an application to the
Administrator in such form, in such manner, and containing
such information as the Administrator may require,
including--
``(A) a certification that the eligible entity--
``(i) has designated an executive director or program
manager, who may be compensated using grant funds awarded
under this section or other sources, to manage the women's
business center for which a grant under subsection (b) is
sought; and
``(ii) meets accounting and reporting requirements
established by the Director of the Office of Management and
Budget;
``(B) information demonstrating the experience and
effectiveness of the eligible entity in--
``(i) providing counseling and training described under
subsection (b)(2);
``(ii) providing training and services to a representative
number of women who are socially or economically
disadvantaged; and
``(iii) working with resource partners of the
Administration and other entities; and
``(C) a 5-year plan that--
``(i) includes information relating to the assistance to be
provided by the women's business center in the area in which
the women's business center is located;
``(ii) describes the ability of the eligible entity to meet
the needs of the market to be served by the women's business
center, including the ability to obtain the matching funds
required under subsection (e); and
``(iii) describes the ability of the eligible entity to
provide counseling and training described under subsection
(b)(2), including to a representative number of women who are
socially or economically disadvantaged.
``(2) Record retention.--
``(A) In general.--The Administrator shall maintain a copy
of each application submitted under this subsection for not
less than 5 years.
``(B) Paperwork reduction.--The Administrator shall take
steps to reduce, to the maximum extent practicable, the
paperwork burden associated with carrying out subparagraph
(A).
``(d) Selection of Eligible Entities.--
``(1) In general.--In selecting recipients of initial
grants, the Administrator shall consider--
``(A) the experience of the applicant in providing
entrepreneurial training;
``(B) the amount of time needed for the applicant to
commence operation of a women's business center;
``(C) in consultation with a Women's Business Center
Association, the capacity of the applicant to meet the
accreditation standards established under subsection (k)(4)
in a timely manner;
``(D) the ability of the applicant to sustain operations,
including the applicant's ability to obtain sufficient non-
Federal funds, for a 5-year period;
``(E) the proposed location of a women's business center to
be operated by the applicant and the location's proximity to
Veteran Business Outreach Centers and to recipients of grants
under section 8(b)(1) or 21;
``(F) the population density of the area to be served by
the women's business center operated by the applicant; and
``(G) the advice and counsel of a Women's Business Center
Association to determine areas with unmet needs and the
likelihood that the recipient will become accredited.
``(2) Selection criteria.--
``(A) Rulemaking.--The Administrator shall issue
regulations to specify the criteria for review and selection
of applicants under this subsection.
``(B) Modifications prohibited after announcement.--With
respect to a public announcement of any opportunity to be
awarded a grant under this section made by the Administrator
pursuant to subsection (l)(1), the Administrator may not
modify regulations issued pursuant to subparagraph (A) with
respect to such opportunity unless required to do so by an
Act of Congress or an order of a Federal court.
``(C) Rule of construction.--Nothing in this paragraph may
be construed as prohibiting the Administrator from modifying
the regulations issued pursuant to subparagraph (A) (after
providing an opportunity for notice and comment) as such
regulations apply to an opportunity to be awarded a grant
under this section that the Administrator has not yet
publicly announced pursuant to subsection (l)(1).
``(e) Matching Requirements.--
``(1) In general.--Subject to paragraph (5), upon approval
of an application submitted under subsection (c), the
eligible entity shall agree to obtain contributions from non-
Federal sources--
``(A) in the first and second year of the term of an
initial grant, if applicable, 1 non-Federal dollar for each 2
Federal dollars; and
``(B) in each subsequent year of the term of an initial
grant, if applicable, or for the term of a continuation
grant, 1 non-Federal dollar for each Federal dollar.
``(2) Form of matching funds.--Not more than one-half of
non-Federal matching funds described under paragraph (1) may
be in the form of in-kind contributions that are budget line
items only, including office equipment and office space.
``(3) Solicitation.--Notwithstanding any other provision of
law, an eligible entity may--
``(A) solicit cash and in-kind contributions from private
individuals and entities to be used to operate a women's
business center; and
``(B) use amounts made available by the Administrator under
this section for the cost of such solicitation and management
of the contributions received.
``(4) Disbursement of funds.--The Administrator may
disburse an amount not greater than 25 percent of the total
amount of a grant awarded to an eligible entity before such
eligible entity obtains the non-Federal matching funds
described under paragraph (1).
``(5) Failure to obtain matching funds.--If an eligible
entity fails to obtain the required matching funds described
under paragraph (1), the eligible entity may not be eligible
to receive advance disbursements pursuant to paragraph (4)
during the remainder of the term, if applicable, of an
initial grant awarded under this section. Before approving
such eligible entity for a continuation grant under this
section, the Administrator shall make a written
determination, including the reasons for such determination,
of whether the Administrator believes that the eligible
entity will be able to obtain the requisite funding under
paragraph (1) for such continuation grant.
``(6) Waiver of non-federal share.--
``(A) In general.--Upon request by an eligible entity, and
in accordance with this paragraph, the Administrator may
waive, in whole or in part, the requirement to obtain non-
Federal matching funds for a grant awarded under this section
for the eligible entity for a one-year term of the grant. The
Administrator may not issue such a waiver for more than a
total of 2 consecutive one-year terms.
``(B) Considerations.--In determining whether to issue a
waiver under this paragraph, the Administrator shall
consider--
``(i) the economic conditions affecting the eligible
entity;
``(ii) the demonstrated ability of the eligible entity to
raise non-Federal funds; and
``(iii) the performance of the eligible entity under the
initial grant.
``(C) Limitation.--The Administrator may not issue a waiver
under this paragraph if the Administrator determines that
granting the waiver would undermine the credibility of the
Women's Business Center Program.
``(7) Excess non-federal dollars.--The amount of non-
Federal dollars obtained by an eligible entity that is above
the amount that is required to be obtained by the eligible
entity under this subsection shall not be subject to the
requirements of part 200 of title 2, Code of Federal
Regulations, or any successor thereto, if such amount of non-
Federal dollars--
``(A) is not used as matching funds for purposes of
implementing the Women's Business Center Program; and
``(B) was not obtained using funds from the Women's
Business Center Program.
``(8) Carryover.--Excess non-Federal dollars described in
paragraph (7) may be used to satisfy the matching funds
requirement under paragraph (1) for the subsequent one-year
grant term, if applicable, except that such amounts shall be
subject to the requirements of part 200 of title 2, Code of
Federal Regulations, or any successor thereto.
``(f) Other Requirements.--
[[Page H8270]]
``(1) Separation of funds.--An eligible entity shall--
``(A) operate a women's business center under this section
separately from other projects, if any, of the eligible
entity; and
``(B) separately maintain and account for any grants
received under this section.
``(2) Examination of eligible entities.--
``(A) Required site visit.--Before receiving an initial
grant under this section, each applicant shall have a site
visit by an employee of the Administration, in order to
ensure that the applicant has sufficient resources to provide
the services for which the grant is being provided.
``(B) Annual review.--An employee of the Administration
shall--
``(i) conduct an annual programmatic and financial
examination of each eligible entity, as described in
subsection (g); and
``(ii) provide the results of such examination to the
eligible entity.
``(3) Remediation of problems.--
``(A) Plan of action.--If an examination of an eligible
entity conducted under paragraph (2)(B) identifies any
problems, the eligible entity shall, within 45 calendar days
of receiving a copy of the results of such examination,
provide the Assistant Administrator with a plan of action,
including specific milestones, for correcting such problems.
``(B) Plan of action review by the assistant
administrator.--The Assistant Administrator shall review each
plan of action submitted under subparagraph (A) within 30
calendar days of receiving such plan. If the Assistant
Administrator determines that such plan--
``(i) will bring the eligible entity into compliance with
all the terms of the grant agreement, the Assistant
Administrator shall approve such plan; or
``(ii) is inadequate to remedy the problems identified in
the annual examination to which the plan of action relates,
the Assistant Administrator shall set forth such reasons in
writing and provide such determination to the eligible entity
within 15 calendar days of such determination.
``(C) Amendment to plan of action.--An eligible entity
receiving a determination under subparagraph (B)(ii) shall
have 30 calendar days from the receipt of the determination
to amend the plan of action to satisfy the problems
identified by the Assistant Administrator and resubmit such
plan to the Assistant Administrator.
``(D) Amended plan review by the assistant administrator.--
Within 15 calendar days of the receipt of an amended plan of
action under subparagraph (C), the Assistant Administrator
shall either approve or reject such plan and provide such
approval or rejection in writing to the eligible entity.
``(E) Appeal of assistant administrator determination.--
``(i) In general.--If the Assistant Administrator rejects
an amended plan under subparagraph (D), the eligible entity
shall have the opportunity to appeal such decision to the
Administrator, who may delegate such appeal to an appropriate
officer of the Administration.
``(ii) Opportunity for explanation.--Any appeal described
under clause (i) shall provide an opportunity for the
eligible entity to provide, in writing, an explanation of why
the eligible entity's amended plan remedies the problems
identified in the annual examination conducted under
paragraph (2)(B).
``(iii) Notice of determination.--The Administrator shall
provide to the eligible entity a determination of the appeal,
in writing, not later than 15 calendar days after the
eligible entity files an appeal under this subparagraph.
``(iv) Effect of failure to act.--If the Administrator
fails to act on an appeal made under this subparagraph within
the 15-day period specified under clause (iii), the eligible
entity's amended plan of action submitted under subparagraph
(C) shall be deemed to be approved.
``(4) Termination of grant.--
``(A) In general.--The Administrator shall terminate a
grant to an eligible entity under this section if the
eligible entity fails to comply with--
``(i) a plan of action approved by the Assistant
Administrator under paragraph (3)(B)(i); or
``(ii) an amended plan of action approved by the Assistant
Administrator under paragraph (3)(D) or approved on appeal
under paragraph (3)(E).
``(B) Appeal of termination.--An eligible entity shall have
the opportunity to challenge the termination of a grant under
subparagraph (A) on the record and after an opportunity for a
hearing.
``(C) Final agency action.--A determination made pursuant
to subparagraph (B) shall be considered final agency action
for the purposes of chapter 7 of title 5, United States Code.
``(5) Consultation with majority women's business center
association.--If a majority of women's business centers that
are operating pursuant to agreements with the Administration
are members of an individual Women's Business Center
Association, the Administrator shall--
``(A) recognize the existence and activities of such
Association; and
``(B) consult with the Association on, and negotiate with
the Association in the development of documents with respect
to--
``(i) announcing the annual scope of activities pursuant to
this section;
``(ii) requesting proposals to deliver assistance as
provided in this section; and
``(iii) governing the general operations and administration
of women's business centers, specifically including the
development of regulations and a uniform negotiated
cooperative agreement for use on an annual basis when
entering into individual negotiated agreements with women's
business centers.
``(g) Program Examination.--
``(1) In general.--The Administration shall--
``(A) develop and implement an annual programmatic and
financial examination of each eligible entity receiving a
grant under this section, under which each such eligible
entity shall provide to the Administration--
``(i) an itemized cost breakdown of actual expenditures for
costs incurred during the preceding year; and
``(ii) documentation regarding the amount of matching
assistance from non-Federal sources obtained and expended by
the eligible entity during the preceding year in order to
meet the requirements of subsection (e) and, with respect to
any in-kind contributions described in subsection (e)(2) that
were used to satisfy the requirements of subsection (e),
verification of the existence and valuation of those
contributions; and
``(B) analyze the results of each such examination and,
based on that analysis, make a determination regarding the
programmatic and financial viability of each women's business
center operated by the eligible entity.
``(2) Conditions for continued funding.--In determining
whether to award a continuation grant to an eligible entity,
the Administrator--
``(A) shall consider the results of the most recent
examination of the eligible entity under paragraph (1);
``(B) shall determine if--
``(i) the eligible entity has failed to provide, or
provided inadequate, information under paragraph (1)(A); or
``(ii) the eligible entity has failed to provide any
information required to be provided by the women's business
center for purposes of the management report under subsection
(m)(1), or the information provided by the center is
inadequate; and
``(C) shall consider the accreditation status as described
in subsection (k)(4).
``(h) Notice and Comment Required.--The Administrator may
only make a change to the standards by which an eligible
entity obtains or maintains grants under this section, the
standards for accreditation, or any other requirement for the
operation of a women's business center if the Administrator
first provides notice and the opportunity for public comment,
as set forth in section 553(b) of title 5, United States
Code, without regard to any exceptions provided for under
such section.
``(i) Contract Authority.--
``(1) Eligible entity.--An eligible entity that receives a
grant under this section may enter into a contract with a
Federal department or agency to provide specific assistance
to small business concerns owned and controlled by women and
other underserved small business concerns, if performance of
such a contract does not hinder the ability of the eligible
entity to carry out the terms of a grant received under this
section.
``(2) Administrator.--The authority of the Administrator to
enter into contracts shall be in effect for each fiscal year
only to the extent and in the amounts as are provided in
advance in appropriations Acts. After the Administrator has
entered into a contract, either as a grant or a cooperative
agreement, with any applicant under this section, the
Administrator shall not suspend, terminate, or fail to renew
or extend any such contract unless the Administrator provides
the applicant with written notification setting forth the
reasons therefore and affords the applicant an opportunity
for a hearing, appeal, or other administrative proceeding
under chapter 5 of title 5, United States Code.
``(j) Privacy Requirements.--
``(1) In general.--A women's business center may not
disclose the name, address, or telephone number of any
individual or small business concern receiving assistance
under this section without the consent of such individual or
small business concern, unless--
``(A) the Administrator orders such disclosure after the
Administrator is ordered to make such a disclosure by a court
in any civil or criminal enforcement action initiated by a
Federal or State agency; or
``(B) the Administrator considers such a disclosure to be
necessary for the purpose of conducting a financial audit of
a women's business center, except that such a disclosure
shall be limited to the information necessary for such audit.
``(2) Administration use of information.--This subsection
shall not--
``(A) restrict Administration access to women's business
center data; or
``(B) prevent the Administration from using information
about individuals who use women's business centers to conduct
surveys of such individuals.
``(3) Regulations.--The Administrator shall issue
regulations to establish standards for disclosures for
purposes of a financial audit described under paragraph
(1)(B).
``(k) Office of Women's Business Ownership.--
``(1) Establishment.--There is established within the
Administration an Office of Women's Business Ownership, which
shall be responsible for the administration of the
Administration's programs for the development of women's
business enterprises (as defined in section 408 of the
Women's Business Ownership Act of 1988). The Office of
Women's Business Ownership shall be administered by
[[Page H8271]]
an Assistant Administrator, who shall be appointed by the
Administrator.
``(2) Assistant administrator of the office of women's
business ownership.--
``(A) Qualification.--The position of Assistant
Administrator shall be a Senior Executive Service position
under section 3132(a)(2) of title 5, United States Code. The
Assistant Administrator shall serve as a noncareer appointee
(as defined in section 3132(a)(7) of that title).
``(B) Duties.--The Assistant Administrator shall administer
the programs and services of the Office of Women's Business
Ownership and perform the following functions:
``(i) Recommend the annual administrative and program
budgets of the Office and eligible entities receiving a grant
under the Women's Business Center Program.
``(ii) Review the annual budgets submitted by each eligible
entity receiving a grant under the Women's Business Center
Program.
``(iii) Collaborate with other Federal departments and
agencies, State and local governments, not-for-profit
organizations, and for-profit organizations to maximize
utilization of taxpayer dollars and reduce (or eliminate) any
duplication among the programs overseen by the Office of
Women's Business Ownership and those of other entities that
provide similar services to women entrepreneurs.
``(iv) Maintain a clearinghouse to provide for the
dissemination and exchange of information between women's
business centers.
``(v) Serve as the vice chairperson of the Interagency
Committee on Women's Business Enterprise and as the liaison
for the National Women's Business Council.
``(3) Mission.--The mission of the Office of Women's
Business Ownership shall be to assist women entrepreneurs to
start, grow, and compete in global markets by providing
quality support with access to capital, access to markets,
job creation, growth, and counseling by--
``(A) fostering participation of women entrepreneurs in the
economy by overseeing a network of women's business centers
throughout States and territories;
``(B) creating public-private partnerships to support women
entrepreneurs and conduct outreach and education to small
business concerns owned and controlled by women; and
``(C) working with other programs of the Administrator to--
``(i) ensure women are well-represented in those programs
and being served by those programs; and
``(ii) identify gaps where participation by women in those
programs could be increased.
``(4) Accreditation program.--
``(A) Establishment.--Not later than 270 days after the
date of enactment of this paragraph, the Administrator shall
publish standards for a program to accredit eligible entities
that receive a grant under this section.
``(B) Public comment; transition.--Before publishing the
standards under subparagraph (A), the Administrator--
``(i) shall provide a period of not less than 60 days for
public comment on such standards; and
``(ii) may not terminate a grant under this section absent
evidence of fraud or other criminal misconduct by the
recipient.
``(C) Contracting authority.--The Administrator may provide
financial support, by contract or otherwise, to a Women's
Business Center Association to provide assistance in
establishing the standards required under subparagraph (A) or
for carrying out an accreditation program pursuant to such
standards.
``(5) Continuation grant considerations.--
``(A) In general.--In determining whether to award a
continuation grant under this section, the Administrator
shall consider the results of the annual programmatic and
financial examination conducted under subsection (g) and the
accreditation program.
``(B) Accreditation requirement.--After the end of the 2-
year period beginning on the date of enactment of this
subsection, the Administration may not award a continuation
grant under this section unless the applicable eligible
entity has been approved under the accreditation program
conducted pursuant to this subsection, except that the
Assistant Administrator for the Office of Women's Business
Ownership may waive such accreditation requirement, in the
discretion of the Assistant Administrator, upon a showing
that the eligible entity is making a good faith effort to
obtain accreditation.
``(6) Annual conference.--Each women's business center
shall participate in annual professional development at an
annual conference facilitated by a Women's Business Center
Association.
``(l) Notification Requirements Under the Women's Business
Center Program.--The Administrator shall provide the
following:
``(1) A public announcement of any opportunity to be
awarded grants under this section, to include the selection
criteria under subsection (d) and any applicable regulations.
``(2) To any applicant for a grant under this section that
failed to obtain such a grant, an opportunity to debrief with
the Administrator to review the reasons for the applicant's
failure.
``(3) To an eligible entity that receives an initial grant
under this section, if a site visit or review of the eligible
entity is carried out by an officer or employee of the
Administration (other than the Inspector General), a copy of
the site visit report or evaluation, as applicable, within 30
calendar days of the completion of such visit or evaluation.
``(m) Annual Management Report.--
``(1) In general.--The Administrator shall prepare and
submit to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate an annual report on the
effectiveness of women's business centers operated through a
grant awarded under this section.
``(2) Contents.--Each report submitted under paragraph (1)
shall include--
``(A) information concerning, with respect to each women's
business center established pursuant to a grant awarded under
this section, the most recent analysis of the annual
programmatic and financial examination of the applicable
eligible entity, as required under subsection (g)(1)(B), and
the subsequent determination made by the Administration under
that subsection;
``(B) the number of persons advised and trained through the
Women's Business Center Program;
``(C) the total number of hours of advising and training
through the Program;
``(D) the demographics of Program participants to include
gender, race, and age of each such participant;
``(E) the number of Program participants who are veterans;
``(F) the number of new businesses started by participants
in the Program;
``(G) to the extent practicable, the number of jobs
supported, created or retained with assistance from women's
business centers;
``(H) the amount of capital secured by participants in the
Program, including through loans and equity investment;
``(I) the number of participants in the Program receiving
financial assistance, including the type and dollar amount,
under the loan programs of the Administration;
``(J) 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;
``(K) to the maximum extent practicable, increases or
decreases in revenues for the assisted small business
concerns;
``(L) the number of referrals made to other resources and
programs of the Administration;
``(M) the results of satisfaction surveys of participants,
including a summary of any comments received from such
participants; and
``(N) any recommendations by the Administrator to improve
the delivery of services by women's business centers.
``(n) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Administration to carry out this section, to remain
available until expended, $31,500,000 for each of fiscal
years 2020 through 2023.
``(2) Use of amounts.--
``(A) In general.--Except as provided in subparagraph (B),
amounts made available under this subsection for fiscal year
2020, and each fiscal year thereafter, may only be used for
grant awards and may not be used for costs incurred by the
Administration in connection with the management and
administration of the program under this section.
``(B) Exceptions.--Of the amount made available under this
subsection for a fiscal year, the following amounts shall be
available for costs incurred by the Administration in
connection with the management and administration of the
program under this section:
``(i) For the first fiscal year beginning after the date of
the enactment of this subparagraph, 2.65 percent.
``(ii) For the second fiscal year beginning after the date
of the enactment of this subparagraph and each fiscal year
thereafter through fiscal year 2023, 2.5 percent.
``(3) Expedited acquisition.--Notwithstanding any other
provision of law, the Administrator may use such expedited
acquisition methods as the Administrator determines to be
appropriate to carry out this section, except that the
Administrator shall ensure that all small business sources
are provided a reasonable opportunity to submit proposals.
``(4) Accreditation and annual conference.--Not less than
$500,000 of the amounts appropriated pursuant to paragraph
(1) for a fiscal year shall be available for purposes of
carrying out subsection (k), of which no less than $50,000
shall be available to support an annual conference described
under subsection (k)(6).''.
SEC. 3. EFFECT ON EXISTING GRANTS.
(a) Terms and Conditions.--A nonprofit organization
receiving a grant under section 29(m) of the Small Business
Act (15 U.S.C. 656(m)), as in effect on the day before the
date of enactment of this Act, shall continue to receive the
grant under the terms and conditions in effect for the grant
on the day before the date of enactment of this Act, except
that the nonprofit organization may not apply for a
continuation of the grant under section 29(m)(5) of the Small
Business Act (15 U.S.C. 656(m)(5)), as in effect on the day
before the date of enactment of this Act.
(b) Length of Continuation Grant.--The Administrator of the
Small Business Administration may award a grant under section
29 of the Small Business Act, as amended by this Act, to a
nonprofit organization receiving a grant under section 29(m)
of the Small
[[Page H8272]]
Business Act (15 U.S.C. 656(m)), as in effect on the day
before the date of enactment of this Act, for the period--
(1) beginning on the day after the last day of the grant
agreement under such section 29(m); and
(2) ending at the end of the third fiscal year beginning
after the date of enactment of this Act.
SEC. 4. REGULATIONS.
Not later than 270 days after the date of the enactment of
this Act, the Administrator of Small Business Administration
shall issue such rules as are necessary to carry out section
29 of the Small Business Act (15 U.S.C. 656), as amended by
this Act, and ensure that a period of public comment for such
rules is not less than 60 days.
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 in support of the bill before us today, H.R.
4405, the Women's Business Centers Improvements Act.
Women's Business Centers, or WBCs, are a critical component of SBA's
entrepreneurial ecosystem. WBCs were created to assist small businesses
primarily owned by women, many of whom are socially and economically
disadvantaged.
{time} 1545
The WBC program funds more than 100 centers nationwide and offers a
full range of counseling and training services for all stages of
business development. Many of the WBCs provide multilingual services,
maintain evening and weekend hours to accommodate clients who work full
time, and allow children to attend training sessions with their
mothers.
In fiscal year 2018, the WBC program trained and advised more than
150,000 clients and created nearly 12,000 small businesses. It has also
proven to be a great return on investment, just like the SBDCs. For
every dollar invested in WBCs, $46 is returned to the economy. And,
with women making up the fastest growing sector of entrepreneurs, it is
imperative to invest in modernizing and adequately funding the program.
The Women's Business Centers Improvements Act increases the
authorization level to $31.5 million each year and lifts the cap on
individual center grants to $300,000, allowing more established centers
to expand their reach to greater numbers of women entrepreneurs,
particularly those of whom are socially and economically disadvantaged.
Additionally, this legislation makes key changes to the program,
enabling the WBCs to serve more of America's nearly 30 million women-
owned small businesses. By eliminating unnecessary reporting
requirements and creating a transparent and consultative process
between SBA and the Association of Women's Business Centers, the bill
guarantees WBCs can meet the growing demand for their services.
I want to thank Representative Davids and Representative Hagedorn for
their diligence in working to get this bill right and ensuring that
women entrepreneurs across the country have continued access to vital
counseling and training.
Mr. Speaker, I urge Members to support this bipartisan bill, 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. 4405, the Women's Business
Centers Improvements Act of 2019. I commend and thank the two lead
sponsors of this legislation, Ms. Davids of Kansas and Mr. Hagedorn of
Minnesota, for their leadership. This makes key updates to the SBA's
Office of Women's Business Ownership and the Women's Business Center
program, or WBC.
The WBC program funds more than 100 nonprofit organizations that
provide training, counseling, and technical assistance specifically
tailored to meet the needs of women entrepreneurs. Many WBCs offer
training at night or in multiple languages to ensure that women
entrepreneurs have the tools and support they need when creating or
sustaining a business.
Last year, WBCs trained over 114,000 clients and advised over 26,000
individuals. This training and counseling contributed to the creation
of more than 17,000 new small businesses in the United States. The
Women's Business Center program has a profound impact not only in our
local communities, but also on our Nation's economy overall.
H.R. 4405, the Women's Business Centers Improvements Act of 2019,
builds on H.R. 1680, the Women's Business Centers Improvements Act of
2018, which passed the House back in May of 2018.
This bill raises the initial 5-year grant amount and indexes it for
inflation. This minor increase provides new and existing women's
business centers with the support they need to provide an effective
course curriculum to small business clients.
Additionally, H.R. 4405 requires the SBA to establish a WBC
accreditation program. This program, similar to the successful Small
Business Development Center accreditation program, will ensure
programmatic consistency among WBC locations and guarantee that each
center is providing women entrepreneurs with effective training
opportunities.
These updates will ensure that the funds supporting the WBC program
are used efficiently to foster economic growth.
Mr. Speaker, it is a good bill, and I urge my colleagues to support
it. I, again, want to commend the two leaders on this important
legislation, and I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield such time as she may consume to
the gentlewoman from Kansas (Ms. Davids), sponsor of the bill.
Ms. DAVIDS of Kansas. Mr. Speaker, I urge my colleagues to vote yes
on H.R. 4405, the Women's Business Centers Improvements Act of 2019,
which would increase access to vital resources and opportunities for
female entrepreneurs in Kansas and across the country.
I thank Ranking Member Chabot and Chairwoman Velazquez for their
commitment to small businesses in our country.
I thank my fellow Small Business Committee member, Representative
Hagedorn, for cosponsoring and co-leading this bipartisan piece of
legislation with me.
This bill helps to strengthen the Women's Business Center program,
which funds more than 100 women's business centers, also known as WBCs,
across the country and in the district I represent in Kansas.
These centers provide small business owners, many of whom are
socially and economically disadvantaged, with critical counseling and
training at all stages of their business development.
Many WBCs provide multilingual services, maintain evening and weekend
hours to accommodate clients who work full time, and allow children to
attend sessions with their mothers.
The value of WBCs cannot be overstated. Women are the fastest growing
sector of entrepreneurs in our country. We often forget that up until
1988, women would have a hard time applying for a business loan without
a male relative to cosign it.
Now, more than 11.6 million businesses in the United States are owned
by women, and more than 5.4 million businesses are majority owned by
women of color.
But even though we have made great progress, many unique challenges
still exist for women, particularly women of color, to start and grow a
business. These include things like limited access to funding resources
and the support system needed to get a business off the ground and
maintain its success.
I see this firsthand when I am doing a ``Sharice's Shift'' in my
district. It is our outreach program where I work at a local business
and spend time with that business owner in my community.
WBCs are critical in addressing a whole range of women's
entrepreneurial needs. They provide training, mentoring, business
development, and
[[Page H8273]]
financing opportunities for 145,000 women entrepreneurs each year.
The Kansas City Women's Business Center, located in Fairway, Kansas--
which I proudly represent--serves over 600 clients annually in both
Kansas and Missouri through business trainings, workshops, counseling,
and access to capital programs.
That is why it is so important to support the WBC program. Despite
the tremendous growth of the program since its creation in 1988, its
resources have not kept up with the even greater growth of women
entrepreneurs.
My bill would authorize funding for the WBC program for 4 years at
$31.5 million. It is currently at $18 million. This increase ensures
the program can reach even more women.
It would also increase the cap on individual center grants to
$300,000 and index for inflation for the first time since the program's
creation.
According to a survey conducted by the Association of Women Business
Centers, 70 percent of the centers could match at least $300,000. And
it would establish an accreditation program to strengthen WBCs and
raise the standards of excellence for training and counseling women
entrepreneurs.
Mr. Speaker, I urge my colleagues to support the Women's Business
Centers Improvements Act and help ensure that we can create a level
playing field for female entrepreneurs that sets them up for success.
Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the
gentleman from Minnesota (Mr. Hagedorn), the principal sponsor on the
legislation on the Republican side.
Mr. HAGEDORN. Mr. Speaker, I thank Ranking Member Chabot for yielding
the time.
Mr. Speaker, I rise today in support of H.R. 4405, the Women's
Business Centers Improvements Act.
Mr. Speaker, I thank my colleague, Representative Davids, for
sponsoring this bill, introducing it, and inviting me to co-author it.
I appreciate her leadership on this.
This bipartisan legislation works to support women entrepreneurs
nationwide by modernizing and strengthening the Women's Business
Centers program. Our bill will increase access to training, counseling,
assistance programs, capital, and workforce investment. All these
measures are essential to create new businesses, expand enterprises,
and grow our United States economy.
Millions of women own small businesses in the United States, and that
is a wonderful thing. Entrepreneurship and the Women's Business Center
program are essential for empowering women to become business owners.
By enhancing these services, we increase the ability to inspire and
foster new generations of business leaders.
Small business is the job-producing backbone of our American economy.
Whether you are in southern Minnesota, eastern Kansas, or communities
across our Nation, it is critical that we foster an environment of
growth where entrepreneurs of all stripes have access to the resources
they need to succeed and are not stymied by excessive regulations,
taxes, and other antibusiness burdens.
According to the National Association of Women Business Owners, as of
2017, more than 11.6 million firms are owned and operated by women.
These firms employ almost 9 million people and generate $1.7 trillion
in revenue.
To keep our economy growing, we must embrace, encourage, and promote
emerging enterprises, including those owned by folks who do not fit the
traditional mode of business owners to get started.
One of the great success stories that we have in women
entrepreneurship is that of Christine Lantinen and her candy company in
Minnesota's First District out of Le Center, Minnesota. The company is
called Maud Borup.
In May I had the opportunity to tour the 112-year-old wholesale
confections company that specializes in gourmet candy, baking kits,
food kits, and lots of other things, including gummy bears, the best I
have ever enjoyed, to be honest with you.
Maud Borup started as a woman-owned, brick-and-mortar candy shop in
St. Paul, even before women had the right to vote. Today, it is a
wholesale company, continuing to offer opportunities for women. Ninety-
six percent of its more than 100 employees are women.
Christine, an Army veteran, no less, bought the company in 2005 and
has expanded the company's employment by 2,000 percent and sales by
2,500 percent. To put that into perspective, sales have gone from
$500,000 all the way to $20 million in just 10 years. And for good
reason. She was named the Small Business Person of the Year in
Minnesota for 2019.
She served her country and now she is serving her community by
expanding jobs and economic opportunity for folks in southern
Minnesota. This is one of the types of success stories that we are
trying to emulate and replicate all across the country with our
legislation, the Women's Business Centers Improvements Act.
Our legislation will fund more than 100 nonprofit organizations that
provide training, counseling, and technical assistance, specifically
for women entrepreneurs.
Our bill, as the ranking member said, expands upon the success of
H.R. 1680, which was passed by the House in May of 2018, but didn't
quite make it into law. Our legislation will make key improvements for
the Small Business Administration's Office of Women's Business
Ownership and the Women's Business Center program by raising the
initial grant amount to $300,000 and increasing the authorization level
to $31.5 million for fiscal years 2020 through 2023.
This legislation establishes an accreditation program to strengthen
Women's Business Centers by increasing accountability and raising the
standards of excellence for training and counseling of women
entrepreneurs and will also create a transparent and consultative
process for the selection of new center locations, while also requiring
an annual report to ensure transparency and measure the effectiveness
of the overall program.
Most importantly, the bill will help facilitate small business
creation, provide much-needed reforms that will be a helping hand to
women business owners, free aspiring entrepreneurs of undue burdens and
barriers to entry, further economic expansion, and help hardworking
Americans achieve their dreams.
I am incredibly proud of the bipartisan nature of this bill. I thank,
again, Congresswoman Davids for introducing and managing the bill. I am
proud to stand with her to champion women-owned enterprises. And a
special thanks to the Committee on Small Business, of course our chair,
Chairwoman Velazquez and Ranking Member Chabot for the bipartisan
support that they have offered.
Mr. Speaker, I ask my colleagues to join me in supporting H.R. 4405.
{time} 1600
Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers, so I am
prepared to close if the gentleman doesn't have any other speakers.
I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
In closing, although a little less than 40 percent of all firms in
the United States are women owned, that number has increased by 114
percent over the last 10 years. With women-owned firms growing more
than 2.5 times faster than other businesses, it is important to
recognize women entrepreneurs as a driving force in today's economy.
Mr. Speaker, I urge my colleagues to support this bipartisan
legislation, and I yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the United States has nearly 30 million women-owned
firms, more than one-third of all firms. Our economy relies heavily on
women-owned small businesses, as they generate over $1.9 trillion in
revenues and employ 9.4 million workers.
H.R. 4405 ensures that they have access to the tools they need to
succeed.
The good news is, women-owned small businesses are growing two times
faster, on average, than all businesses nationwide, and women of color
are launching businesses 4.5 times faster than all businesses.
The discouraging news is that half of aspiring women business owners
report a lack of available mentors. We must take action to break down
the barriers hindering their success. That is why it is imperative for
us to pass this legislation today, ensuring access to
[[Page H8274]]
mentorship and professional guidance to the fastest growing group of
entrepreneurs.
The Women's Business Centers Improvements Act builds on their success
by creating uniformity through accreditation for WBCs and increasing
maximum grant levels to ensure they have the resources to meet demands
for their services.
We all agree that women business owners offer invaluable
contributions to our economy. By passing this bill, we are standing
with women.
Mr. Speaker, I urge Members to support this bill, and 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. 4405.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________