[Congressional Record (Bound Edition), Volume 153 (2007), Part 21]
[House]
[Pages 29806-29809]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  SMALL BUSINESS PROGRAMS ACT OF 2007

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3866) to reauthorize certain programs under the Small 
Business Act for each of fiscal years 2008 and 2009, as amended.

[[Page 29807]]

  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3866

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Programs Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reauthorization of small business programs.
Sec. 3. BusinessLINC grants reauthorization.
Sec. 4. Small Business Development Center Program reauthorization.
Sec. 5. Women's Business Center Program reauthorization.
Sec. 6. HUBZone reauthorization.
Sec. 7. Office of Veterans Business Development reauthorization.
Sec. 8. Advisory Committee on Veterans Business Affairs extension.
Sec. 9. National Women's Business Council reauthorization.

     SEC. 2. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended--
       (1) by striking subsections (b), (d), and (j);
       (2) by redesignating subsections (c) and (e) as (b) and 
     (c), respectively;
       (3) in subsection (b) (as so redesignated; disaster 
     mitigation pilot program) by striking ``2005'' and ``2006'' 
     and inserting ``2008'' and ``2009'', respectively; and
       (4) by inserting after subsection (c) (as so redesignated) 
     the following:
       ``(d) Fiscal Year 2008.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 2008:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $80,000,000 in technical assistance grants, as 
     provided in section 7(m); and
       ``(ii) $110,000,000 in direct loans, as provided in 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $29,300,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $20,000,000,000 in general business loans, as 
     provided in section 7(a);
       ``(ii) $8,500,000,000 in certified development company 
     financings, as provided in section 7(a)(13) and as provided 
     in section 504 of the Small Business Investment Act of 1958;
       ``(iii) $750,000,000 in loans, as provided in section 
     7(a)(21); and
       ``(iv) $50,000,000 in loans, as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make $4,000,000,000 in guarantees of 
     debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $6,000,000,000, of which not more than 50 percent may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter into cooperative agreements for a total amount of 
     $7,000,000 for the Service Corps of Retired Executives 
     program authorized by section 8(b)(1).
       ``(2) Additional authorization.--There are authorized to be 
     appropriated to the Administration for fiscal year 2008 
     $20,000,000 to carry out the PRIME program.
       ``(e) Fiscal Year 2009.--
       ``(1) Program levels.--The following program levels are 
     authorized for fiscal year 2009:
       ``(A) For the programs authorized by this Act, the 
     Administration is authorized to make--
       ``(i) $90,000,000 in technical assistance grants, as 
     provided in section 7(m); and
       ``(ii) $120,000,000 in direct loans, as provided in 7(m).
       ``(B) For the programs authorized by this Act, the 
     Administration is authorized to make $29,800,000,000 in 
     deferred participation loans and other financings. Of such 
     sum, the Administration is authorized to make--
       ``(i) $20,000,000,000 in general business loans, as 
     provided in section 7(a);
       ``(ii) $9,000,000,000 in certified development company 
     financings, as provided in section 7(a)(13) and as provided 
     in section 504 of the Small Business Investment Act of 1958;
       ``(iii) $750,000,000 in loans, as provided in section 
     7(a)(21); and
       ``(iv) $50,000,000 in loans, as provided in section 7(m).
       ``(C) For the programs authorized by title III of the Small 
     Business Investment Act of 1958, the Administration is 
     authorized to make $4,000,000,000 in guarantees of 
     debentures.
       ``(D) For the programs authorized by part B of title IV of 
     the Small Business Investment Act of 1958, the Administration 
     is authorized to enter into guarantees not to exceed 
     $6,000,000,000, of which not more than 50 percent may be in 
     bonds approved pursuant to section 411(a)(3) of that Act.
       ``(E) The Administration is authorized to make grants or 
     enter into cooperative agreements for a total amount of 
     $7,000,000 for the Service Corps of Retired Executives 
     program authorized by section 8(b)(1).
       ``(2) Additional authorization.--There are authorized to be 
     appropriated to the Administration for fiscal year 2009 
     $20,000,000 to carry out the PRIME program.''.

     SEC. 3. BUSINESSLINC GRANTS REAUTHORIZATION.

       Section 8(n) of the Small Business Act (15 U.S.C. 637(n)) 
     is amended--
       (1) by striking ``$6,600,000'' and inserting 
     ``$7,000,000''; and
       (2) by striking ``2001 through 2006'' and inserting ``2008 
     and 2009''.

     SEC. 4. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM 
                   REAUTHORIZATION.

       Section 21(a)(4)(C)(vii) of the Small Business Act (15 
     U.S.C. 648(a)(4)(C)(vii)) is amended by striking subclauses 
     (I) and (II) and inserting the following:

       ``(I) $140,000,000 for fiscal year 2008; and
       ``(II) $145,000,000 for fiscal year 2009.''.

     SEC. 5. WOMEN'S BUSINESS CENTER PROGRAM REAUTHORIZATION.

       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 are authorized to be appropriated 
     to carry out this section--
       ``(A) $17,000,000 for fiscal year 2008; and
       ``(B) $17,500,000 for fiscal year 2009.''; and
       (2) in paragraph (2)(B), by striking clauses (i) through 
     (iv) and inserting the following:
       ``(i) For fiscal year 2008, 1.5 percent.
       ``(ii) For fiscal year 2009, 1.5 percent.''.

     SEC. 6. HUBZONE REAUTHORIZATION.

       Section 31(d) of the Small Business Act (15 U.S.C. 657a) is 
     amended--
       (1) by striking ``$10,000,000'' and inserting 
     ``$20,000,000''; and
       (2) by striking ``2004 through 2006'' and inserting ``2008 
     and 2009''.

     SEC. 7. OFFICE OF VETERANS BUSINESS DEVELOPMENT 
                   REAUTHORIZATION.

       Section 32(c) of the Small Business Act (15 U.S.C. 657b(c)) 
     is amended by striking paragraphs (1) and (2) and inserting 
     the following:
       ``(1) $3,000,000 for fiscal year 2008; and
       ``(2) $4,000,000 for fiscal year 2009.''.

     SEC. 8. ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS 
                   EXTENSION.

       (a) Extension of Termination Date.--Section 203(h) of the 
     Veterans Entrepreneurship and Small Business Development Act 
     of 1999 (Public Law 106-50; 15 U.S.C. 657b note) is amended 
     by striking ``September 30, 2006'' and inserting ``September 
     30, 2009''.
       (b) Conforming Amendment.--Section 33(h) of the Small 
     Business Act (15 U.S.C. 657c(h)) is amended by striking 
     ``October 1, 2006'' and inserting ``October 1, 2009''.

     SEC. 9. NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION.

       Section 410(a) of the Women's Business Ownership Act of 
     1988 (Public Law 100-533; 15 U.S.C. 7110(a)) is amended by 
     striking ``2001 through 2003'' and inserting ``2008 and 
     2009''.

  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.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, our economy is constantly evolving and changing. For 
this Nation's 27 million small firms to be successful, our economic 
policies must be adjusted accordingly.
  While we have made great strides in this Congress to make sure the 
needs of small business owners are met, H.R. 3866 is the final step in 
reauthorizing small business assistance programs, ensuring the success 
and growth of small firms.
  Today, entrepreneurs are faced with many challenges. They must 
compete in a global marketplace, deal with rising energy and health 
care costs, and find ways to access affordable capital. To alleviate 
many of these burdens, we have passed initiatives in this Congress that 
provide the overall tools for entrepreneurial success. We have passed 
legislation that lowers the cost of loans and gives minorities greater 
access to SBA programs.
  Through H.R. 3567, SBA's investment programs were improved and a new 
source of equity capital was open to entrepreneurs through angel 
investment. Also, small business contracting programs has been 
modernized, accountability has been increased, and fraud has been 
reduced. This makes sure small firms have fair access to the Federal 
marketplace and allows them to continue growing their companies and 
creating jobs.
  In the aftermath of Hurricane Katrina, entrepreneurs were faced with 
delays in disaster loans, overwhelming

[[Page 29808]]

amounts of paperwork, and a lengthy application process leaving them 
frustrated and discouraged. The RECOVER Act ensures that the SBA is 
prepared, has a large, well-trained disaster response workforce, and 
that delays and poor service encountered by victims of hurricanes do 
not happen again.
  While critical, these initiatives are just the first step. The Small 
Business Programs Act of 2007 provides the vehicle for SBA's small 
business assistance programs to run and meet the needs of entrepreneurs 
in our changing economy. Most importantly, it gives the SBA the 
necessary resources to continue helping small businesses start and 
expand.
  H.R. 3866 extends SBA's small business assistance programs for the 
next 2 years. Also, this bill provides the necessary authority for the 
SBA to carry out its lending and venture capital programs, ensuring 
SBA's initiatives are the premier lending tools for entrepreneurs.
  The SBA and its programs are vital to assisting small businesses 
across this country. Along with the Small Business Development Centers, 
Women Business Centers, and SCORE, the SBA has worked to meet the 
rising demand for services at a time when their budget continues to 
decrease.
  These programs have a proven track record of success, but they 
require sufficient resources to be able to evolve and modernize. 
Clearly, in order for small firms to adapt to changing economic 
conditions, small business assistance programs must be adjusted. There 
is no larger job creator or greater impact on local communities in this 
country than small firms.
  H.R. 3866 arms small business assistance programs with the tools that 
allow entrepreneurs to continue spurring economic growth.
  I strongly urge my colleagues to vote for the Small Business Programs 
Act of 2007.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Today, Mr. Speaker, I rise in support of the request to suspend the 
rules and pass H.R. 3866, the SBA Programs Act of 2007.
  I would like to thank Chairwoman Velazquez for working in a 
cooperative and bipartisan manner to bring this bill to the House floor 
today.
  The bill we are considering today is a highly technical bill, but one 
of the Small Business Committee's legislative obligations.
  The financing programs in the Small Business Act and the Small 
Business Investment Act of 1958 rely on lending by the private sector. 
Lenders are protected by guarantees issued by the SBA, promising 
repayment if the small business borrower fails. Congress must impose 
limits on the authority of the SBA to issue such guarantees. H.R. 3866 
establishes limits that will enable the program to operate even if 
there is unexpected demand.
  Given the current credit crunch, it is certainly possible that the 
SBA will have a spike in demand. The limits adopted in this bill will 
ensure that, unlike in some prior years, the program will not be the 
subject of operational restrictions.
  I want to point out that supporting these limits will have no 
budgetary impact. The SBA's guaranteed loan, certified development 
company, and debenture small business investment company programs also 
operate at zero subsidy. That means the programs require no 
appropriation, and losses are covered by fees charged to lenders and 
borrowers. Maintaining this zero subsidy still enables Congress to 
provide for significant expansion of the authorization in order to meet 
demand, while protecting taxpayers.
  The microloan programs, which helps entrepreneurs in many low-income 
areas and is a valuable job creation tool for a modest investment by 
the government, also receives an increase in lending authority.

                              {time}  1330

  Given the value of the program, I believe that the modest increase 
more than pays for itself in providing jobs and developing the 
entrepreneurial culture that continues to maintain the economic 
viability of this Nation.
  In addition, the committee must provide authorization levels for the 
Small Business Development Center program. The allocation of funds to 
various centers is based in part on a comparison of funds appropriated 
to funds authorized. Without an authorization level, the funding 
formula cannot work. It also is important to point out that the 
authorization level for the SBDCs is increased by around 3\1/2\ 
percent. This increase takes into account inflation and the 
administration's request that the centers provide even more counseling. 
The other major entrepreneurial outreach program of the SBA, the 
Women's Business Center program, receives an increase of around 17 
percent. Now, while this may at first seem like a lot, the 
authorization in this bill represents the first time in nearly 8 years 
that the Women's Business Center authorization levels have been set 
thus representing an adjustment in align with inflation.
  Similarly, the PRIME program, which provides additional technical 
assistance to microloan borrowers, has not received an authorization 
level since 1999. The authorization of $20 million in this bill 
represents an increase of $625,000 per year, or just enough, again, to 
keep up with inflation. I want to point out that the SBA requested a 
budget increase to cover inflation including the rapid rise in the cost 
of energy. It is only fair to authorize a similar modest increase for 
SBA's entrepreneurial outreach in education programs.
  Other authorizations in this bill also represent either level 
funding, such as the SCORE program and the drug-free workplace program 
or represent very modest increases from prior authorization levels such 
as the $400,000 increase in funding for BusinessLINC, a valuable 
program that helps small businesses find contracts to supply large 
businesses with goods and services.
  Two programs received significant boosts in authorization levels, the 
Office of Veterans Affairs and the HUBZone programs. In time of war, it 
is important that we provide assistance to our veterans. That includes 
ensuring that they have the tools necessary to integrate into civilian 
life through entrepreneurship. On a percentage basis, the authorization 
increase for the program is significant, but the dollar value is a 
modest $2 million. Given the sacrifices our veterans have made, this 
represents only a modest down payment on the debt we owe to them, our 
veterans.
  As for the HUBZone program, the increase arises from the efforts of 
the committee to ensure that only firms eligible for participation in 
the program receive Federal Government contracts. This requires 
additional onsite verification and thus represents the committee's view 
to the appropriators to significantly increase funding in that area.
  Again, I would like to thank Chairwoman Velazquez. Although there are 
significant philosophical differences between Members, I think the past 
year has demonstrated what can happen when this body tries to work 
through those differences without acrimony or questioning of the 
motives of the other side. Much can be accomplished for the American 
public, and that is what the people elected us to do. So I want to, 
again, commend the chairwoman for her willingness to work in a 
bipartisan manner not only in this bill but many bills that we have 
dealt with in the past.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I have no further speakers, and I am 
prepared to close if the gentleman is prepared to close.
  Mr. CHABOT. Mr. Speaker, I am prepared to close. I have no other 
speakers.
  Ms. VELAZQUEZ. Mr. Speaker, I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield back my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, there is no question that today's economic environment 
is increasingly difficult for small firms to thrive in. We have seen 
record highs in

[[Page 29809]]

gas prices, unmanageable health care costs and barriers in the way of 
accessing affordable capital. Now, more than ever, small businesses 
need assistance programs they can rely on that are well-equipped to 
meet their needs. With the Small Business Programs Act of 2007 that is 
exactly what we are giving entrepreneurs.
  This legislation ensures that our Nations's 27 million entrepreneurs 
have access to the business development assistance that they need and 
deserve. These firms employ one half of our workforce, spur economic 
development and revitalize our communities. When their businesses are 
growing and flourishing, the benefits are felt across the country.
  With the passage of H.R. 3866, we set program levels for SBA's 
entrepreneurial assistance initiatives, updating and modernizing them. 
The primary role of the SBA is to help entrepreneurs who have the drive 
but need assistance. It is clear that small firms play a crucial role 
in our economy. By ensuring that these businesses have current and 
sufficient assistance, we are investing in our communities, helping to 
create jobs, and benefiting the Nation as a whole.
  I would like to take this opportunity to thank Ranking Member Chabot 
for your collaboration for us to work together in a responsible way, to 
follow regular order, and I am very proud that every time that we have 
considered legislation, we have done so in a very inclusive, open way 
and we can show results. With the passage of this bill, we have passed 
15 bills through the House of Representatives. I am very proud of that 
product. It shows the things that can be done when we respect each 
other despite our differences. But we show the American public that we 
are willing to work together on their behalf.
  I also would like to take an opportunity to thank the staff that 
worked on this legislation from the Small Business Committee majority 
staff, Tim Slattery and Michael Day, and from the minority staff, Barry 
Pineles, Kevin Fitzpatrick and Mike Smullen. I strongly urge my 
colleagues to vote for H.R. 3866, the Small Business Programs Act of 
2007.


                             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 H.R. 3866, as amended.
  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 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. 3866, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________