[Congressional Record (Bound Edition), Volume 153 (2007), Part 12]
[House]
[Pages 16166-16168]
[From the U.S. Government Publishing Office, www.gpo.gov]




     EXPANDING AND IMPROVING ASSISTANCE PROVIDED BY SMALL BUSINESS 
                          DEVELOPMENT CENTERS

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2284) to amend the Small Business Act to expand and improve 
the assistance provided by Small Business Development Centers to Indian 
tribe members, Alaska Natives, and Native Hawaiians.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2284

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) The rate for American Indians and Alaskan Natives 
     living below 50 percent the poverty level is 11.2 percent, 
     nearly double the rate of the general population.
       (2) The unemployment rate for American Indians and Alaskan 
     Natives 16 years and over is 13.6 percent, nearly double the 
     rate of the general population.
       (3) Indian tribe members and Alaska Natives own more than 
     201,000 businesses and generate more than $26,000,000,000 in 
     revenues. The construction industry accounted for 16 percent 
     of these businesses and 22.5 percent of their total receipts. 
     The next largest was the service industry (13.2 percent and 
     3.4 percent, respectively). The third largest was the health 
     care and social assistance industry (12.1 percent and 4.6 
     percent, respectively).
       (4) The Small Business Development Center program is cost 
     effective. Clients receiving long-term counseling under the 
     program in 2005 generated additional tax revenues of 
     $248,000,000, nearly 2.8 times the cost of the program to the 
     Federal Government.
       (5) Using the existing infrastructure of the Small Business 
     Development Center program, small businesses owned by Indian 
     tribe members, Alaska Natives, and Native Hawaiians receiving 
     services under the program will have a higher survival rate 
     than the average small business not receiving such services.
       (6) Business counseling and technical assistance is 
     critical on Indian lands where similar services are scarce 
     and expensive.
       (7) Increased assistance through counseling under the Small 
     Business Development Center program has been shown to reduce 
     the default rate associated with lending programs of the 
     Small Business Administration.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To stimulate economies on Indian lands.
       (2) To foster economic development on Indian lands.
       (3) To assist in the creation of new small businesses owned 
     by Indian tribe members, Alaska Natives, and Native Hawaiians 
     and expand existing ones.
       (4) To provide management, technical, and research 
     assistance to small businesses owned by Indian tribe members, 
     Alaska Natives, and Native Hawaiians.
       (5) To seek the advice of local Tribal Councils on where 
     small business development assistance is most needed.
       (6) To ensure that Indian tribe members, Alaska Natives, 
     and Native Hawaiians have full access to existing business 
     counseling and technical assistance available through the 
     Small Business Development Center program.

     SEC. 2. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO 
                   INDIAN TRIBE MEMBERS, ALASKA NATIVES, AND 
                   NATIVE HAWAIIANS.

       (a) In General.--Section 21(a) of the Small Business Act 
     (15 U.S.C. 648(a)) is amended by adding at the end the 
     following:
       ``(8) Additional grant to assist indian tribe members, 
     alaska natives, and native hawaiians.--
       ``(A) In general.--Any applicant in an eligible State that 
     is funded by the Administration as a Small Business 
     Development Center may apply for an additional grant to be 
     used solely to provide services described in subsection 
     (c)(3) to assist with outreach, development, and enhancement 
     on Indian lands of small business startups and expansions 
     owned by Indian tribe members, Alaska Natives, and Native 
     Hawaiians.
       ``(B) Eligible states.--For purposes of subparagraph (A), 
     an eligible State is a State that has a combined population 
     of Indian tribe members, Alaska Natives, and Native Hawaiians 
     that comprises at least 1 percent of the State's total 
     population, as shown by the latest available census.
       ``(C) Grant applications.--An applicant for a grant under 
     subparagraph (A) shall submit to the Administration an 
     application that is in such form as the Administration may 
     require. The application shall include information regarding 
     the applicant's goals and objectives for the services to be 
     provided using the grant, including--
       ``(i) the capability of the applicant to provide training 
     and services to a representative number of Indian tribe 
     members, Alaska Natives, and Native Hawaiians;
       ``(ii) the location of the Small Business Development 
     Center site proposed by the applicant;
       ``(iii) the required amount of grant funding needed by the 
     applicant to implement the program; and
       ``(iv) the extent to which the applicant has consulted with 
     local Tribal Councils.
       ``(D) Applicability of grant requirements.--An applicant 
     for a grant under subparagraph (A) shall comply with all of 
     the requirements of this section, except that the matching 
     funds requirements under paragraph (4)(A) shall not apply.
       ``(E) Maximum amount of grants.--No applicant may receive 
     more than $300,000 in grants under this paragraph for one 
     fiscal year.
       ``(F) Regulations.--After providing notice and an 
     opportunity for comment and after consulting with the 
     Association recognized by the Administration pursuant to 
     paragraph (3)(A) (but not later than 180 days after the date 
     of enactment of this paragraph), the Administration shall 
     issue final regulations to carry out this paragraph, 
     including regulations that establish--
       ``(i) standards relating to educational, technical, and 
     support services to be provided by Small Business Development 
     Centers receiving assistance under this paragraph; and
       ``(ii) standards relating to any work plan that the 
     Administration may require a Small Business Development 
     Center receiving assistance under this paragraph to develop.
       ``(G) Definitions.--In this section, the following 
     definitions apply:
       ``(i) Indian lands.--The term `Indian lands' has the 
     meaning given the term `Indian country' in section 1151 of 
     title 18, United States Code, the meaning given the term 
     `Indian reservation' in section 151.2 of title 25, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this paragraph), and the meaning given the term `reservation' 
     in section 4 of the Indian Child Welfare Act of 1978 (25 
     U.S.C. 1903).
       ``(ii) Indian tribe.--The term `Indian tribe' means any 
     band, nation, or organized group or community of Indians 
     located in the contiguous United States, and the Metlakatla 
     Indian Community, whose members are recognized as eligible 
     for the services provided to Indians by the Secretary of the 
     Interior because of their status as Indians.
       ``(iii) Indian tribe member.--The term `Indian tribe 
     member' means a member of an Indian tribe (other than a 
     Alaska Native).
       ``(iv) Alaska native.--The term `Alaska Native' has the 
     meaning given the term `Native' in section 3(b) of the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1602(b)).
       ``(v) Native hawaiian.--The term `Native Hawaiian' means 
     any individual who is--

       ``(I) a citizen of the United States; and
       ``(II) a descendant of the aboriginal people, who prior to 
     1778, occupied and exercised sovereignty in the area that now 
     constitutes the State of Hawaii.

       ``(vi) Tribal organization.--The term `tribal organization' 
     has the meaning given that term in section 4(l) of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b(l)).
       ``(H) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $7,000,000 for 
     each of fiscal years 2008 through 2010.
       ``(I) Funding limitations.--
       ``(i) Nonapplicability of certain limitations.--Funding 
     under this paragraph shall

[[Page 16167]]

     be in addition to the dollar program limitations specified in 
     paragraph (4).
       ``(ii) Limitation on use of funds.--The Administration may 
     carry out this paragraph only with amounts appropriated in 
     advance specifically to carry out this paragraph.''.

     SEC. 3. STATE CONSULTATION WITH TRIBAL ORGANIZATIONS.

       Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) 
     is amended by adding at the end the following:
       ``(9) Advice of local tribal organizations.--A Small 
     Business Development Center receiving a grant under this 
     section shall request the advice of tribal organization on 
     how best to provide assistance to Indian tribe members, 
     Alaska Natives, and Native Hawaiians and where to locate 
     satellite centers to provide such assistance.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Tennessee (Mr. David 
Davis) 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 to revise and extend their remarks and 
include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself as much time as I may 
consume.
  Mr. Speaker, small businesses are responsible for creating three out 
of every four new jobs and account for almost half of all sales in this 
country. There is no question the impact they have on economic growth 
and the development and revitalization of countless neighbors.
  Currently, the Native American population is one of the most 
impoverished. Their unemployment rate is nearly double that of the 
general population, with almost half of all residents living on a 
reservation unemployed.
  Providing opportunities for business growth within the Native 
American sector will create jobs, generate revenue and ultimately 
benefit local economies across the country. The Native American Small 
Business Development Act of 2007, introduced by Representative Udall, 
works to increase prospects for Native Americans through small business 
ownership.
  While many in the Native American population are struggling, there is 
strong interest to engage in entrepreneurship. For these communities to 
have a growing small business sector, resources must be available 
locally and be culturally sensitive.
  This legislation has enjoyed bipartisan support in the past and has 
passed the House in previous Congresses. It is designed to provide 
culturally tailored assistance for entrepreneurial development in some 
of the most disadvantaged areas of this country.

                              {time}  1845

  Not only will this bill help combat poverty and unemployment, but it 
will bring new services and opportunities to Native American 
communities. It is my hope that in the 110th Congress, H.R. 2284 can 
finally become law and expand the right to business ownership. I urge 
support of this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVID DAVIS of Tennessee. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, today I rise in support of the request to suspend the 
rules and pass H.R. 2284, a bill to provide additional Small Business 
Development Center resources focused on Native Americans, Alaskan 
Natives and Native Hawaiians. The bill, the product and dedicated 
effort of the author, Congressman Tom Udall, former Small Business 
Committee member, was passed without objection by voice vote.
  I would like to thank Chairwoman Velazquez for working in a 
cooperative and bipartisan manner to bring this matter to the House 
floor.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield such time as he may consume to 
the gentleman from New Mexico (Mr. Udall), the sponsor of the 
legislation.
  Mr. UDALL of New Mexico. Mr. Speaker, before I begin, I would like to 
thank the gentlewoman from New York (Ms. Velazquez) and the gentleman 
from Ohio (Mr. Chabot) for their work and commitment to expanding small 
business opportunities. I am especially grateful for their efforts to 
bring this bill to the floor today. I would also like to thank all my 
colleagues who supported this bill by joining me as cosponsors.
  This important legislation before us today, H.R. 2284, allows Small 
Business Development Centers to apply for an additional SBA grant to 
provide specified services assisting small business start-ups and 
expansions owned by Indian Tribal Members, Alaskan Natives or Native 
Hawaiians. My bill ensures those seeking to create, develop and expand 
small businesses have full access to the counseling and technical 
assistance available through SBDCs. The tools offered by the SBDCs can 
assist these entrepreneurs with the information and opportunity to 
build sustainable businesses in their communities.
  H.R. 2284 also ensures participation of governing bodies of Indian 
tribes, Alaskan Native entities and Native Hawaiian organizations by 
requiring grant recipients to request their advice on how best to 
provide assistance. Our intent is to ensure that these business 
development tools are provided in a culturally sensitive way.
  Small businesses create 75 percent of all new employment 
opportunities and make up 99 percent of all employers. They anchor our 
neighborhoods, provide jobs and contribute to the overall economic 
development of many communities. That is why it is so imperative that 
we take steps to help ensure that small business development reaches 
the places in this country where economic prosperity has yet to be 
fully realized.
  I have the great honor of representing 14 Pueblos, the Jicarilla 
Apache Nation and a portion of the Navajo Nation. Many of these 
communities would greatly benefit by more economic development. It is 
clear we can do more to aid Native American entrepreneurs in my 
district and throughout the country. I hope to help rectify this 
situation with the passage of this legislation.
  Mr. DAVID DAVIS of Tennessee. Mr. Speaker, I have no further 
speakers, and I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, in closing, with unemployment rampant on 
Native American reservations, legislation that not only fights poverty 
but fosters the development of job creation is critical. I strongly 
urge my colleagues to vote for H.R. 2284.
  Ms. BORDALLO. Mr. Speaker, I rise today in support of H.R. 2284, a 
bill to amend the Small Business Act to expand and improve the 
assistance provided by Small Business Development Centers to Indian 
tribe members, Alaska Natives, and Native Hawaiians. I commend the 
gentleman from New Mexico (Mr. Udall) for introducing this important 
legislation to address poverty and unemployment amongst these 
disadvantaged and underserved communities. I also thank my colleague 
from New York (Ms. Velazquez), Chairwoman of the Committee on Small 
Business, and the members of the Committee on Small Business for their 
continued leadership toward helping strengthen our country's small 
businesses and in addressing the socioeconomic challenges faced by our 
indigenous communities.
  H.R. 2284 will enable small business development centers to assist 
Native American communities in the areas of job creation and economic 
growth. This bill helps individuals to utilize their own valuable 
business skills so that their small businesses, and in turn their 
community, may prosper.
  This is a strong bill. But I believe that it can strengthened by 
expanding the eligible grant recipients to include small business 
development centers that work with the indigenous populations of the 
territories, particularly in Guam, the Commonwealth of the Northern 
Mariana Islands, and American Samoa. Pacific Islanders from the 
territories endure economic adversity similar to that experienced by 
Native Americans, Alaska Natives, and Native Hawaiians. I look forward 
to working with my colleagues to ensure that either in conference on 
this legislation, or on a similar proposal, that we take action to 
address the small business development needs of the indigenous peoples 
of the U.S. territories.

[[Page 16168]]

  This bill, if enacted, would provide for valuable federal assistance 
for Native Americans, and I urge my colleagues to support its passage 
and to support economic development for all indigenous communities 
throughout the United States.
  Ms. HIRONO. Mr. Speaker, I rise in support of H.R. 2284, which will 
amend the Small Business Act to improve the assistance provided by 
Small Business Development Centers to Indian tribe members, Alaska 
Natives and Native Hawaiians.
  This bill will provide management, technical and research assistance 
to small businesses owned by Indian tribe members, Alaska Natives and 
Native Hawaiians and ensure them full access to existing business 
counseling and technical assistance available through the Small 
Business Development Center program.
  Mr. Speaker, in a recent report by the distinguished Visiting Senior 
Fellow at the East-West Center and Emeritus Professor at the University 
Hawaii, Dr. Seiji Naya, the poverty rate for Native Hawaiians was 15 
percent in 2005 while the state average was 9.8 percent. Native 
Hawaiians accounted for 27 percent of the total State population in 
poverty. The per capita income for Native Hawaiians was only 67 percent 
of the state average. In terms of per capita income, 32 percent of 
Native Hawaiians earned less than $10,000 in 2005 compared to only 18 
percent for Non-Native Hawaiians.
  Native Hawaiians are committed to changing these statistics through 
innovative educational and entrepreneurial programs. One of the most 
promising government programs that will enable them to do this is the 
Small Business Act, particularly Section 8(a) which has given Native 
Americans an opportunity to participate in the economy of this country 
by providing a fair chance to obtain federal contracts. As a result, 
hundreds of Native American, Alaska Native and Native Hawaiian 
entrepreneurs have been given the opportunity to demonstrate their 
business capabilities, while providing valuable services and products 
to the government and the private sector.
  The Native Hawaiian organizations that have taken advantage of the 
8(a) program have provided hundreds of new well-paying jobs for Native 
Hawaiians and Non-Native Hawaiians alike. Many Native Hawaiians have 
received training in new marketable skills. The profits from these 
enterprises have been plowed back into the Native Hawaiian communities 
to provide essential social, health and cultural benefits traditionally 
funded by government or not at all.
  H.R. 2284 will provide the necessary assistance to help make sure 
that these worthy programs continue to grow and expand as much as 
possible by providing needed assistance and business expertise. I urge 
unanimous approval of this measure.
  Ms. VELAZQUEZ. Mr. Speaker, I yield back the balance of my time, and 
encourage adoption of the resolution.
  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. 2284.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. GOHMERT. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this question will 
be postponed.

                          ____________________