[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[House]
[Pages 30765-30767]
[From the U.S. Government Publishing Office, www.gpo.gov]



          WOMEN'S BUSINESS CENTERS SUSTAINABILITY ACT OF 1999

  Mrs. KELLY. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table the Senate bill (S. 791) to amend the Small Business 
Act with respect to the women's business center program, and ask for 
its immediate consideration in the House.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  Mr. UDALL of New Mexico. Mr. Speaker, reserving the right to object, 
I do not intend to object, but I rise in strong support of Senate bill 
S. 791, the Women's Business Centers Sustainability Act of 1999. This 
is the Senate version of H.R. 491, which the House recently passed 
under suspension. With the passage of this bill, we will ensure that 
the women's business centers keep their doors open, and that the 
program will continue to grow with new centers in previously 
underserved areas.
  Mr. Speaker, I would also like to thank the gentlewoman from New York 
(Mrs. Kelly) for all her hard work and leadership on this bill.
  Mr. Speaker, under my reservation, I yield to the gentlewoman from 
New York (Mrs. Kelly) to explain her unanimous consent request.

                              {time}  1945

  Mrs. KELLY. Mr. Speaker, the purpose of S. 791 is to allow for 
currently funded Women's Business Centers and graduated Business 
Women's Centers to recompete for Federal funding. S. 791 addresses the 
funding constraints that make it increasingly difficult for Women's 
Business Centers to sustain the level of services they provide and, in 
some instances, to remain open after they graduate from the Women's 
Business Centers Program and no longer receive Federal matching funds.
  Mr. TALENT. Mr. Speaker, I rise today in support of Senate Bill 791, 
``The Women's Business Centers Sustainability Act of 1999.''
  Women-owned businesses are the fastest growing sector of small 
business in America today. In fact, women entrepreneurs are starting 
new firms at twice the rate of all other business and own nearly 40 
percent of all firms in the U.S.
  These strong numbers show the success that women entrepreneurs enjoy, 
but anyone who has ever started a new business, knows that the road is 
not always smooth. Women's Business Centers play a major role in making 
that road to success a little less bumpy. Women's Business Centers, 
like the public-private partnership of the St. Louis Women's Business 
Center in my District, play a major role in assisting women 
entrepreneurs establish strong business plans through courses, 
workshops, mentor services and provide access to financing for building 
businesses.
  H.R. 1497 builds upon the legislation we passed earlier this year to 
help grow the number of Women's Business Centers across the nation. But 
as with anything, we must continue to take a well-balanced approach 
that allows successful centers to continue to compete for funding as 
they make the transition to the private sector. The Women's Business 
Center Sustainability Act makes it possible for Centers like the St. 
Louis Women's Business Center to have a sort of safety net as they make 
that transition at the end of their 5-year grant cycle.
  Mr. Speaker, Women's Business Centers contribute to the success of 
thousands of women entrepreneurs by offering the critical community 
support necessary for them to succeed in today's business world. As 
more and more women decide to be their own boss, Women's Business 
Centers will provide them with the resources and training they need. I 
commend the spirit and innovation of all those whose entrepreneurial 
spirit has made America great and I urge my colleagues to support 
passage of the Women's Business Center Sustainability Act.
  Mr. DAVIS of Illinois. Mr. Speaker, I rise in support of S. 791 the 
Women's Business Centers Sustainability Act. Women entrepreneurs are an 
increasingly significant part of the U.S. economy. Women own more than 
8 million businesses and account for approximately one-third of all 
U.S. businesses and are starting businesses at twice the rate of men. 
Shrouded by these stirring statistics, is the fact that women encounter 
numerous obstacles trying to start, maintain or expand a business--
obstacles which must be eliminated if we are ever to realize the full 
potential of this dynamic sector of our economy.
  In my particular District, there exists several entities that help 
women's small businesses expand, in some instances, get started. I am 
very proud of these organizations for their dedication and hard work. 
In a very orderly and organized way, without a lot of overhead, women's 
business centers, by various names, are helping women who have an idea 
about a small business, providing them with technical assistance, in 
some instances to provide micro loans, and in all instances to provide 
the knowledge and wherewithal and planning that is necessary so that 
they start off on the right foot. Therefore, Mr. Speaker, I urge all 
members to vote for this mindfall, well thought out bill and support 
our Nation's women's businesses.
  Mr. UDALL of New Mexico. Mr. Speaker, I withdraw my reservation of 
objection.
  The SPEAKER pro tempore (Mr. Pease). Is there objection to the 
request of the gentlewoman from New York?
  There was no objection.
  The Clerk read the Senate bill, as follows:

                                 S. 791

       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 
     Sustainability Act of 1999''.

     SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) the term `private nonprofit organization' means an 
     entity that is described in section 501(c) of the Internal 
     Revenue Code of 1986 and exempt from taxation under section 
     501(a) of such Code;''; and
       (2) in subsection (b), by inserting ``nonprofit'' after 
     ``private''.

     SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW OF WOMEN'S 
                   BUSINESS CENTERS.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended--
       (1) by striking subsection (h) and inserting the following:
       ``(h) Program Examination.--
       ``(1) In general.--The Administration shall--
       ``(A) develop and implement an annual programmatic and 
     financial examination of each women's business center 
     established pursuant to this section, pursuant to which each 
     such center 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 center during the preceding year in order to meet the 
     requirements of subsection (c) and, with

[[Page 30766]]

     respect to any in-kind contributions described in subsection 
     (c)(2) that were used to satisfy the requirements of 
     subsection (c), 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.
       ``(2) Conditions for continued funding.--In determining 
     whether to award a contract (as a sustainability grant) under 
     subsection (l) or to renew a contract (either as a grant or 
     cooperative agreement) under this section with a women's 
     business center, the Administration--
       ``(A) shall consider the results of the most recent 
     examination of the center under paragraph (1); and
       ``(B) may withhold such award or renewal, if the 
     Administration determines that--
       ``(i) the center has failed to provide any information 
     required to be provided under clause (i) or (ii) of paragraph 
     (1)(A), or the information provided by the center is 
     inadequate; or
       ``(ii) the center has failed to provide any information 
     required to be provided by the center for purposes of the 
     report of the Administration under subsection (j), or the 
     information provided by the center is inadequate.''; and
       (2) by striking subsection (j) and inserting the following:
       ``(j) Management Report.--
       ``(1) In general.--The Administration shall prepare and 
     submit to the Committees on Small Business of the House of 
     Representatives and the Senate a report on the effectiveness 
     of all projects conducted under this section.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include information concerning, with respect to each 
     women's business center established pursuant to this 
     section--
       ``(A) the number of individuals receiving assistance;
       ``(B) the number of startup business concerns formed;
       ``(C) the gross receipts of assisted concerns;
       ``(D) the employment increases or decreases of assisted 
     concerns;
       ``(E) to the maximum extent practicable, increases or 
     decreases in profits of assisted concerns; and
       ``(F) the most recent analysis, as required under 
     subsection (h)(1)(B), and the subsequent determination made 
     by the Administration under that subsection.''.

     SEC. 4. WOMEN'S BUSINESS CENTERS SUSTAINABILITY PILOT 
                   PROGRAM.

       (a) In General.--Section 29 of the Small Business Act (15 
     U.S.C. 656) is amended by adding at the end the following:
       ``(l) Sustainability Pilot Program.--
       ``(1) In general.--There is established a 4-year pilot 
     program under which the Administration is authorized to award 
     grants (referred to in this section as `sustainability 
     grants') on a competitive basis for an additional 5-year 
     project under this section to any private nonprofit 
     organization (or a division thereof)--
       ``(A) that has received financial assistance under this 
     section pursuant to a grant, contract, or cooperative 
     agreement; and
       ``(B) that--
       ``(i) is in the final year of a 5-year project; or
       ``(ii) has completed a project financed under this section 
     (or any predecessor to this section) and continues to provide 
     assistance to women entrepreneurs.
       ``(2) Conditions for participation.--In order to receive a 
     sustainability grant, an organization described in paragraph 
     (1) shall submit to the Administration an application, which 
     shall include--
       ``(A) a certification that the applicant--
       ``(i) is a private nonprofit organization;
       ``(ii) employs a full-time executive director or program 
     manager to manage the center; and
       ``(iii) as a condition of receiving a sustainability grant, 
     agrees--

       ``(I) to a site visit as part of the final selection 
     process and to an annual programmatic and financial 
     examination; and
       ``(II) to the maximum extent practicable, to remedy any 
     problems identified pursuant to that site visit or 
     examination;

       ``(B) information demonstrating that the applicant has the 
     ability and resources to meet the needs of the market to be 
     served by the women's business center site for which a 
     sustainability grant is sought, including the ability to 
     fundraise;
       ``(C) information relating to assistance provided by the 
     women's business center site for which a sustainability grant 
     is sought in the area in which the site is located, 
     including--
       ``(i) the number of individuals assisted;
       ``(ii) the number of hours of counseling, training, and 
     workshops provided; and
       ``(iii) the number of startup business concerns formed;
       ``(D) information demonstrating the effective experience of 
     the applicant in--
       ``(i) conducting financial, management, and marketing 
     assistance programs, as described in paragraphs (1), (2), and 
     (3) of subsection (b), designed to impart or upgrade the 
     business skills of women business owners or potential owners;
       ``(ii) providing training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged;
       ``(iii) using resource partners of the Administration and 
     other entities, such as universities;
       ``(iv) complying with the cooperative agreement of the 
     applicant; and
       ``(v) the prudent management of finances and staffing, 
     including the manner in which the performance of the 
     applicant compared to the business plan of the applicant and 
     the manner in which grant funds awarded under subsection (b) 
     were used by the applicant; and
       ``(E) a 5-year plan that projects the ability of the 
     women's business center site for which a sustainability grant 
     is sought--
       ``(i) to serve women business owners or potential owners in 
     the future by improving fundraising and training activities; 
     and
       ``(ii) to provide training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged.
       ``(3) Review of applications.--
       ``(A) In general.--The Administration shall--
       ``(i) review each application submitted under paragraph (2) 
     based on the information provided under in subparagraphs (D) 
     and (E) of that paragraph, and the criteria set forth in 
     subsection (f);
       ``(ii) as part of the final selection process, conduct a 
     site visit at each women's business center for which a 
     sustainability grant is sought; and
       ``(iii) approve or disapprove applications for 
     sustainability grants simultaneously with applications for 
     grants under subsection (b).
       ``(B) Data collection.--Consistent with the annual report 
     to Congress under subsection (j), each women's business 
     center site that is awarded a sustainability grant shall, to 
     the maximum extent practicable, collect information relating 
     to--
       ``(i) the number of individuals assisted;
       ``(ii) the number of hours of counseling and training 
     provided and workshops conducted;
       ``(iii) the number of startup business concerns formed;
       ``(iv) any available gross receipts of assisted concerns; 
     and
       ``(v) the number of jobs created, maintained, or lost at 
     assisted concerns.
       ``(C) Record retention.--The Administration shall maintain 
     a copy of each application submitted under this subsection 
     for not less than 10 years.
       ``(4) Non-federal contribution.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, as a condition of receiving a sustainability 
     grant, an organization described in paragraph (1) shall agree 
     to obtain, after its application has been approved under 
     paragraph (3) and notice of award has been issued, cash and 
     in-kind contributions from non-Federal sources for each year 
     of additional program participation in an amount equal to 1 
     non-Federal dollar for each Federal dollar.
       ``(B) Form of non-federal contributions.--Not more than 50 
     percent of the non-Federal assistance obtained for purposes 
     of subparagraph (A) may be in the form of in-kind 
     contributions that are budget line items only, including 
     office equipment and office space.
       ``(5) Timing of requests for proposals.--In carrying out 
     this subsection, the Administration shall issue requests for 
     proposals for women's business centers applying for the pilot 
     program under this subsection simultaneously with requests 
     for proposals for grants under subsection (b).''.
       (b) Authorization of Appropriations.--Section 29(k) of the 
     Small Business Act (15 U.S.C. 656(k)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--There is authorized to be appropriated, 
     to remain available until the expiration of the pilot program 
     under subsection (l)--
       ``(A) $12,000,000 for fiscal year 2000;
       ``(B) $12,800,000 for fiscal year 2001;
       ``(C) $13,700,000 for fiscal year 2002; and
       ``(D) $14,500,000 for fiscal year 2003.'';
       (2) in paragraph (2)--
       (A) by striking ``Amounts made'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     amounts made''; and
       (B) by adding at the end the following:
       ``(B) Exceptions.--Of the amount made available under this 
     subsection for a fiscal year, the following amounts shall be 
     available for selection panel costs, post-award conference 
     costs, and costs related to monitoring and oversight:
       ``(i) For fiscal year 2000, 2 percent.
       ``(ii) For fiscal year 2001, 1.9 percent.
       ``(iii) For fiscal year 2002, 1.9 percent.
       ``(iv) For fiscal year 2003, 1.6 percent.''; and
       (3) by adding at the end the following:
       ``(4) Reservation of funds for sustainability pilot 
     program.--
       ``(A) In general.--Subject to subparagraph (B), of the 
     total amount made available under this subsection for a 
     fiscal year, the following amounts shall be reserved for 
     sustainability grants under subsection (l):
       ``(i) For fiscal year 2000, 17 percent.
       ``(ii) For fiscal year 2001, 18.8 percent.

[[Page 30767]]

       ``(iii) For fiscal year 2002, 30.2 percent.
       ``(iv) For fiscal year 2003, 30.2 percent.
       ``(B) Use of unawarded funds for sustainability pilot 
     program grants.--If the amount reserved under subparagraph 
     (A) for any fiscal year is not fully awarded to private 
     nonprofit organizations described in subsection (l)(1)(B), 
     the Administration is authorized to use the unawarded amount 
     to fund additional women's business center sites or to 
     increase funding of existing women's business center sites 
     under subsection (b).''.
       (c) Guidelines.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall issue guidelines to implement 
     the amendments made by this section.

     SEC. 5. SENSE OF THE SENATE REGARDING GOVERNMENT PROCUREMENT 
                   ACCESS FOR WOMEN-OWNED SMALL BUSINESSES.

       (a) Findings.--The Senate finds that--
       (1) women-owned small businesses are a powerful force in 
     the economy;
       (2) between 1987 and 1996--
       (A) the number of women-owned small businesses in the 
     United States increased by 78 percent, almost twice the rate 
     of increase of all businesses in the United States;
       (B) the number of women-owned small businesses increased in 
     every State;
       (C) total sales by women-owned small businesses in the 
     United States increased by 236 percent;
       (D) employment provided by women-owned small businesses in 
     the United States increased by 183 percent; and
       (E) the rates of growth for women-owned small businesses in 
     the United States for the fastest growing industries were--
       (i) 171 percent in construction;
       (ii) 157 percent in wholesale trade;
       (iii) 140 percent in transportation and communications;
       (iv) 130 percent in agriculture; and
       (v) 112 percent in manufacturing;
       (3) approximately 8,000,000 women-owned small businesses in 
     the United States provide jobs for 15,500,000 individuals and 
     generate almost $1,400,000,000,000 in sales each year;
       (4) the participation of women-owned small businesses in 
     the United States in the procurement market of the Federal 
     Government is limited;
       (5) the Federal Government is the largest purchaser of 
     goods and services in the United States, spending more than 
     $200,000,000,000 each year;
       (6) the majority of Federal Government purchases are for 
     items that cost $25,000 or less; and
       (7) the rate of Federal procurement for women-owned small 
     businesses is 2.2 percent.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that, not later than 1 year after the date of enactment of 
     this Act, the Comptroller General of the United States 
     should--
       (1) conduct an audit of the Federal procurement system 
     regarding Federal contracting involving women-owned small 
     businesses for the 3 preceding fiscal years;
       (2) solicit from Federal employees involved in the Federal 
     procurement system any suggestions regarding how to increase 
     the number of Federal contracts awarded to women-owned small 
     businesses; and
       (3) submit to Congress a report on the results of that 
     audit, which report shall include--
       (A) an analysis of any identified trends in Federal 
     contracting with respect to women-owned small businesses;
       (B) any recommended means to increase the number of Federal 
     contracts awarded to women-owned small businesses that the 
     Comptroller General considers to be appropriate, after taking 
     into consideration any suggestions received pursuant to a 
     solicitation described in paragraph (2), including any such 
     means that incorporate the concepts of teaming or partnering; 
     and
       (C) a discussion of any barriers to the receipt of Federal 
     contracts by women-owned small businesses and other small 
     businesses that are created by legal or regulatory 
     procurement requirements or practices.

     SEC. 6. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on October 1, 1999.

  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.

                          ____________________