[Congressional Record Volume 168, Number 68 (Tuesday, April 26, 2022)]
[House]
[Pages H4463-H4465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2022
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 6445) to amend the Small Business Act to require an annual
report on entrepreneurial development programs, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6445
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 2022''.
SEC. 2. ANNUAL REPORT ON ENTREPRENEURIAL DEVELOPMENT
PROGRAMS.
Section 10 of the Small Business Act (15 U.S.C. 639) is
amended by adding at the end the following new subsection:
``(i) Annual Report on Entrepreneurial Development
Programs.--
``(1) Report required.--The Administrator shall include in
the comprehensive annual report required under subsection (a)
the following data:
``(A) A list of all entrepreneurial development activities
undertaken during the fiscal year preceding the date of the
report through a covered program, including--
``(i) a description and operating details for each such
covered program and the activities performed under each such
covered program;
``(ii) operating circulars, manuals, and standard operating
procedures for each such covered program;
``(iii) a description of the process used to make awards
relating to the provision of entrepreneurial development
activities under each such covered program;
``(iv) a list of all recipients of awards under each such
covered program and the amount of each such award; and
``(v) a list of contractors, including the name and
location of such contractor, of an award recipient.
``(B) The total amount of funding obligated for a covered
program and the entrepreneurial development activities
conducted under each such covered program for the fiscal year
preceding the date of the report.
``(C) The names and titles of the individuals responsible
for carrying out a covered program.
``(D) For entrepreneurial development activities undertaken
during the fiscal year preceding the date of the report
through the Small Business Development Center Program
established under section 21 (in this section referred to as
the `Program')--
``(i) the number of individuals counseled or trained
through the Program;
``(ii) the total number of hours of counseling and training
services provided through the Program;
``(iii) the demographics of participants in the Program,
which shall include the gender, race, and age of each such
participant;
``(iv) the number of participants in the Program who are
veterans;
``(v) the number of new businesses started by participants
in the Program;
``(vi) to the extent practicable, the number of jobs
supported, created, or retained with assistance from the
Program;
``(vii) the amount of capital secured by participants in
the Program, including through loans and equity investment;
``(viii) the number of participants in the Program
receiving financial assistance, including the type and dollar
amount, under a loan program of the Administration;
``(ix) 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;
``(x) the number of referrals of individuals to other
resources and programs of the Administration;
``(xi) the results of satisfaction surveys of participants
in the Program, including a summary of any comments received
from such participants; and
``(xii) any recommendations by the Administrator to improve
the delivery of services by the Program.
``(2) Definitions.--In this subsection:
``(A) Covered program.--The term `covered program' means a
program authorized under section 7(j), 7(m), 8(a), 8(b)(1),
21, 22, 29, 32, or 34 of this Act.
``(B) Entrepreneurial development activity.--The term
`entrepreneurial development activity' means an activity
related to the delivery of entrepreneurial development
services, entrepreneurial education, or support for the
development and maintenance of business training services
carried out through a covered 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 use up to
10 percent of their budget to 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
[[Page H4464]]
(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)--
(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 2 ems to the left.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS FOR FORMULA GRANTS
RECEIVED BY STATES.
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 2022
through 2025.''; 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. REQUIREMENTS RELATING TO MATCHING FUNDS.
Section 21(a)(4)(A) of the Small Business Act (15 U.S.C.
648(a)(4)(A)) is amended by adding at the end the following
new sentence: ``Such matching funds shall be evidenced by
good faith assertions from the applicant, and the expenditure
of matching funds shall not be made a prerequisite of the
reimbursement of Federal funds, notwithstanding the final
reconciliation payment for the close-out of each award.''.
SEC. 12. CONTRACT PREREQUISITES.
Section 21(a)(5)(B) of the Small Business Act (15 U.S.C.
648(a)(5)(B)) is amended by striking the second sentence and
inserting the following: ``Each contract shall be deemed
approved under subparagraph (A) unless the Associate
Administrator certifies in writing within 15 business days
after award of the contract that the contract will not
provide assistance to small business concerns and that
performance of the contract will hinder the small business
development center in carrying out the terms of the grant
received by the small business development center under this
section.''.
SEC. 13. DUTIES OF THE ASSOCIATE ADMINISTRATOR FOR SMALL
BUSINESS DEVELOPMENT CENTERS.
Section 21(h)(2) of the Small Business Act (15 U.S.C.
648(h)(2)) is amended by adding at the end the following new
subparagraph:
``(C) Marketing.--The Associate Administrator for Small
Business Development Centers shall market and advertise the
Small Business Development Center Program and participants in
such Program as a resource available to any Federal program
providing assistance to small business concerns, including
the FAST program established under section 34.''.
SEC. 14. 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 Missouri (Mr.
Luetkemeyer) each will control 20 minutes.
=========================== NOTE ===========================
April 26, 2022, on page H4464, in the second column, the
following appeared: The SPEAKER pro tempore. Pursuant to the rule,
the gentlewoman from New York (Ms. Velazquez) and the gentleman
from Minnesota (Mr. Luetkemeyer) each will control 20 minutes.
The online version has been corrected to read: The SPEAKER pro
tempore. Pursuant to the rule, the gentlewoman from New York (Ms.
Velazquez) and the gentleman from Missouri (Mr. Luetkemeyer) each
will control 20 minutes.
========================= END NOTE =========================
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, before I begin, I thank all of our members for their
tireless work on the bills before us today. As we head into National
Small Business Week, the legislation we are passing today showcases the
bipartisan nature of our committee and highlights how Congress supports
the American entrepreneurial spirit.
I rise today in support of H.R. 6445, the Small Business Development
Center Improvement Act of 2022, introduced by Representative Golden
from Maine and the late Representative Hagedorn from Minnesota.
I will take a moment to remember the late Representative Hagedorn and
his work as a member of the Small Business Committee. Before and
throughout his illness, Mr. Hagedorn maintained his steadfast
commitment to small businesses. My thoughts continue to be with Mr.
Hagedorn's family, friends, and staff.
Today's bill is a testament to his dedication to his community and
small firms, and I am glad to honor his memory with this legislation.
H.R. 6445 strengthens SBA's largest resource partner, the Small
Business Development Center, or SBDC, network, by modernizing the
program to meet the needs of today's small businesses and
entrepreneurs.
SBDCs deliver free face-to-face and virtual counseling and training
in all aspects of business management to small business owners and
entrepreneurs across the country. The services include: assisting
entrepreneurs with developing a business plan, accessing capital,
creating a marketing plan, procuring government contracts,
strengthening cybersecurity protections, and entering into
international trade.
Through their network of 62 lead centers, managing nearly 1,000
outreach locations, SBDCs assist small business owners and
entrepreneurs throughout the country.
SBDCs are a remarkable investment of taxpayer dollars with every
Federal dollar spent on the SBDC program generating $1.99 in Federal
revenue, a nearly 100 percent return on investment.
To build on this success, H.R. 6445 increases the authorization level
to $175 million for the next four fiscal years, allowing the program to
grow and reach more of America's 30 million small firms.
The bill also clarifies that SBDCs, and the SBA, may actively market
their services. In the Small Business Committee, we often say that
SBDCs are the best-kept small business secret.
This bill will go a long way to ensuring more small employers and
entrepreneurs are aware that free or low-cost counseling and training
exists to help them on their path to success.
I thank the sponsors for leading this effort to modernize and improve
the SBDC program and its many valuable services. I urge Members to
support this bipartisan piece of legislation, and I reserve the balance
of my time.
Mr. LUETKEMEYER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 6445, the Small Business
Development Centers Improvement Act of 2022.
Before we begin, I will highlight next week's National Small Business
Week celebration. This will be a time to honor and reflect upon some of
America's hardest working businesses and their employees.
It is with this in mind that I am glad that we are gathering on the
House floor today to discuss a number of bills that improve and enhance
the Small Business Administration.
Importantly, all five bills that we will be discussing today have
been favorably reported out of our committee
[[Page H4465]]
in a bipartisan manner. I thank the chair for working with me to
advance these bills to the floor.
Small Business Development Centers provide valuable resources and
free counseling to entrepreneurs across this great Nation. This
Congress, I have heard from several small businesses who have benefited
from the SBDC's services.
In my home State of Missouri, the Missouri Small Business Development
Center helped a local brewery create a business plan and apply for a
504 loan to grow their business. They also helped a veteran-owned food
shipping business scale up and find new partnerships during the
pandemic.
They supported countless small businesses in accessing SBA's COVID
relief programs such as the Paycheck Protection Program and Economic
Injury Disaster loans. I am grateful for their wide range of services
to entrepreneurs.
This important legislation will allow SBDCs to continue their
important services and expand their network of small business
beneficiaries through marketing.
This legislation also ensures SBDC's client information is protected
and that cooperation, communication, and collaboration between SBA and
SBDC networks is improved.
I thank Mr. Golden for working on this legislation with the late Jim
Hagedorn. As we all know, Jim was a champion for small businesses and a
truly invaluable member of our Small Business Committee. He will
certainly be missed. He leaves a huge hole on our side of the aisle
with regard to support of small businesses, and we remember him today.
I also thank the chair for working with me in a bipartisan manner to
advance this bill.
I urge my colleagues to ensure that SBDCs can continue serving our
small business constituents and communities, and to support H.R. 6445,
which was passed favorably out of our committee by a voice vote and
passed the House in a similar form last Congress.
The Small Business Development Center network is critical in
assisting our small business owners during their entrepreneurial
business journey. H.R. 6445 will enhance and improve this journey and
ensure the program remains strong and vibrant on behalf of America's
small businesses.
I urge my colleagues to support H.R. 6445, and I yield back the
balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
There is no question that we need to support the cornerstone of the
SBA's entrepreneurial programs, the Small Business Development Centers.
SBDCs are SBA's premier resource partner with centers in communities
across the country. Their free or low-cost counseling and training have
helped sustain small businesses and entrepreneurs throughout the
pandemic.
H.R. 6445 continues the long tradition of SBDC's work to meet the
ever-evolving needs of America's entrepreneurs as they emerge from the
pandemic. Strengthening the SBDC network will, in turn, provide the
support our small businesses need in order to thrive.
Today's bill is endorsed by America's SBDCs, an association
representing the 63 SBDC networks and their nearly 1,000 centers.
I thank Mr. Golden and remember the late Mr. Hagedorn for their
bipartisan work on this bill.
I urge my colleagues to vote ``yes,'' 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. 6445.
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.
____________________