[Senate Report 107-236]
[From the U.S. Government Publishing Office]
Calendar No. 545
107th Congress Report
SENATE
2d Session 107-236
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NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT ACT
_______
August 1, 2002.--Ordered to be printed
_______
Mr. Kerry, from the Committee on Small Business and Entrepreneurship,
submitted the following
R E P O R T
[To accompany S. 2335]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business and Entrepreneurship, to
which was referred the bill (S. 2335) to establish the Office
of Native American Affairs within the Small Business
Administration, to create the Native American Small Business
Development Program, and for other purposes, having considered
the same, reports favorably thereon with amendments and
recommends that the bill, as amended, do pass.
On July 24, 2002, the Committee on Small Business and
Entrepreneurship considered S. 2335, the ``Native American
Small Business Development Act.'' The Committee adopted by
unanimous voice vote an amendment offered by the Chairman,
Senator John F. Kerry, and the Ranking Republican, Senator
Christopher S. Bond. As amended, S. 2335 would statutorily
create an office housed in the U.S. Small Business
Administration (SBA) called the Office of Native American
Affairs and establish two grant assistance programs to provide
resources to Native Americans, one of which is a pilot program
designed to explore competing types of assistance to aid Native
American communities. Having considered S. 2335, as amended,
the Committee reports favorably thereon without further
amendment and recommends that the bill do pass.
I. INTRODUCTION
The United States has a unique historical and legal
relationship with the American Indian tribes, which serves as
the basis for the Federal government's responsibility and
obligations. This government-to-government relationship is a
well-established principle of Federal Indian law that is
reflected in the U.S. Constitution and expressed in treaties,
executive agreements and orders, statutes, the course of
dealings, and hundreds of Federal court decisions. There are
also moral components to the relationship, which has been
described as a ``mutuality of obligations'' between the
parties. The relationship is most easily understood by
reference to the cession of millions of acres of land by tribes
to the United States in return for peace, protection of tribal
sovereignty, and the provision of programs and services by the
United States.
There are currently 561 Federally recognized tribes in the
United States, with some 40 percent of tribes located in the
state of Alaska. The 2000 Census data indicate there are 2.5
million American Indians and Alaska Natives (AI/AN) in the
United States, with over 57 percent living in urban areas, and
the remainder residing on Indian reservations or in rural
areas, sometimes hundreds of miles from the nearest urban area.
In addition, approximately 4.1 million Census respondents
identified themselves in the AI/AN category or ancestry who
also claimed other ethnicity or ancestry. Many of these
individuals would be eligible for Federal services under S.
2335, the ``Native American Small Business Development Act.''
Given the near-complete absence of private-sector
enterprises in reservation communities, nearly one in three
American Indians and Alaska Natives, or 31.2 percent, live in
poverty. In the U.S. today, the unemployment rate is 5.9
percent, whereas in Native communities the unemployment rate
hovers near 50 percent--nearly twice that of the national
unemployment rate in the Great Depression of the 1930s. Earning
capacity figures also lag behind that of other Americans: for
every $100 earned by the average American family, an American
Indian family earns $62. Similarly, the average annual per
capita income for American Indians is $8,284.
Native Hawaiians face a similar set of economic
circumstances and their communities would benefit from the
targeted resources of S. 2335. For example, according to the
2000 edition of the Native Hawaiian Data Book, published by the
Office of Hawaiian Affairs of the state of Hawaii, over 19
percent of Native Hawaiians in Hawaii are below the poverty
level and over 45 percent of Native Hawaiians in Hawaii receive
food stamps.
Since 1910, the Congress has enacted over 160 statutes to
address the conditions of Native Hawaiians, based upon their
status as Native Americans. Like their American Indian and
Alaska Native counterparts, Native Hawaiian communities
experience high rates of unemployment, the highest rates of
inadequate and overcrowded housing in the United States, and
some of the highest rates of mortality from diabetes,
hypertension and certain forms of cancer. In an effort to
address the economic conditions that plague Native Hawaiian
communities, Native Hawaiian small businesses have entered into
partnerships with Native Hawaiian nonprofit organizations, so
that business revenues can be used to address the needs of the
broader Native Hawaiian population.
Regardless of where Native Americans reside, however, they
continue to rank at or near the bottom of nearly every social,
health, and economic indicator, as compared to all other groups
of American citizens. They continue to suffer the highest rates
of unemployment and poverty, live in substandard housing, have
poor health, receive an inadequate education, and contend with
disintegrating social systems, all of which erode both the
quality and dignity of life in Native communities and serve as
indicators that the United States is not doing all it can to
meet its responsibilities and promises.
It is the Committee's belief that providing increased
resources to Native American communities for small business
creation and growth is essential to assisting Native American
communities in their efforts to overcome the systemic problems
that have lead to limited opportunities and high unemployment.
The Small Business Administration currently has an Office
of Native American Affairs (ONAA), whose stated mission is to
ensure that American Indians, Alaska Natives and Native
Hawaiians seeking to create, develop and expand small
businesses have full access to the necessary business
development and expansion tools available through the SBA's
entrepreneurial development, lending and procurement programs.
The ONAA has only one project designed to provide assistance to
Native American communities, the Tribal Business Information
Centers (TBICs). As of March 2002, the SBA has ceased funding
for this useful activity, despite bipartisan support in the
United States Senate. At its peak, the TBIC activity operated
18 centers in seven states. SBA provided $32,000 to each center
annually after the initial start-up funding provided by the
Bureau of Indian Affairs at the Department of Interior.
Although TBICs used limited SBA resources to provide
desperately needed, culturally tailored business development
assistance to Native American communities, their small number
and inadequate funding level has prevented them from being a
solution to the small business development needs of many Native
American communities. Further, TBICs did not operate in Native
Hawaiian or Native Alaskan communities. The Committee believes
that TBICs have had the greatest impact when the services they
provide were combined with a broader range of small business
services, such as those currently provided by the SBA in non-
Native American communities, so as to reach a wider spectrum of
small businesses in Native American communities.
On February 4, 2002, the Bush Administration sent the
Fiscal Year 2003 budget request to Congress. Within the budget
submission for the SBA, the President requested $1 million for
an unspecified grant program, designated ``Native American
Outreach'' to provide resources ``directly to tribes to assist
in economic development and job creation.'' Increased resources
are needed to alleviate the dire conditions in Native America
and address the basic human needs of American Indians, Alaska
Natives and Native Hawaiians. While the Committee is in favor
of providing increased resources to Native American
communities, it is concerned about the SBA's desire to abandon
the current TBIC program, which has the support of the Native
American communities they serve, for an unspecified block grant
program.
The Senate Committee believes that the SBA would better
serve Native American communities through the expansion of the
existing TBIC activity, as envisioned by S. 2335, the ``Native
American Small Business Development Act,'' and the expansion of
other small business development programs in Native American
communities that are capable of providing culturally tailored
business development assistance and that authorize increased,
targeted resources as envisioned by both S. 2335 and H.R. 2538,
the ``Native American Small Business Development Act.''
II. LEGISLATIVE HISTORY
H.R. 2538, the ``Native American Small Business Development Act''
On July 17, 2001, Congressman Tom Udall of New Mexico
introduced H.R. 2538, the ``Native American Small Business
Development Act.'' This legislation authorizes a three-year
pilot program at $7 million per year, for state Small Business
Development Centers (SBDCs) to receive grant assistance from
the SBA, up to a maximum of $300,000, to assist with outreach,
development, and enhancement of small business startups and
expansions that are owned by Indian tribe members, Alaska
Natives, or Native Hawaiians and that are located in Alaska or
Hawaii, or on Indian lands in the 48 contiguous states.
On Thursday, July 19, 2001, the Subcommittee on Workforce,
Empowerment and Government Programs of the Committee on Small
Business held a hearing to hear testimony with regard to H.R.
2538 and other legislation. According to the House Report
accompanying H.R. 2538 (H. Rpt. 107-211), the hearing ``showed
that some SBDCs were already providing, on a limited basis, the
services which are the subject of the three bills. The hearing
evidenced a need for expansion of the services to other
locations.''
On August 1, 2001, the House Committee on Small Business
considered H.R. 2538 and passed the legislation without
amendment. On December 5, 2001, the House of Representatives
passed, by voice vote, H.R. 2538, without amendment.
The Senate Committee believes that providing additional
resources to SBDCs for culturally tailored business development
assistance in Native American communities is an important step
in helping to develop these communities. However, the Senate
Committee also believes that such a step should coincide with
an increase in the TBIC activity and the statutory creation of
a program at the SBA to promote small business development in
Native American communities.
S. 2335, the ``Native American Small Business Development Act''
On April 25, 2002, Senator Tim Johnson of South Dakota
introduced S. 2335, the ``Native American Small Business
Development Act.'' Senators John F. Kerry, Maria Cantwell, Paul
D. Wellstone, Thomas A. Daschle, Max Baucus, Daniel K. Inouye,
Jeff Bingaman, Debbie Stabenow, Hillary Rodham Clinton, Gordon
Smith and Daniel K. Akaka are cosponsors of the legislation.
The purpose of S. 2335 was to create, by statute, an office
housed in the SBA called the Office of Native American Affairs
(ONAA), create a Native American Development Program and
establish three assistance programs to provide resources to
Native Americans, two of which are pilot programs.
On April 30, 2002, the Committee held a joint hearing with
the U.S. Senate Committee on Indian Affairs titled ``Small
Business Development in Native American Communities: Is the
Federal Government Meeting its Obligations?'' During the
hearing, the Committees heard testimony regarding SBA's
proposed block grant program, S. 2335 and general Native
American development issues surrounding small business growth
and creation. Congressman Tom Udall, the sponsor of H.R. 2538
and Senator Tim Johnson testified on the first panel, both in
support of S. 2335. The second panel consisted of Ms. Kaaren
Johnson Street, the Associate Deputy Administrator for
Entrepreneurial Development at the SBA. Ms. Johnson Street
represented the SBA and provided testimony on the block grant
proposal, stating that the SBA had no position on the
legislation before the Committee (S. 2335). The third panel to
provide testimony consisted of Native American activists,
program providers and Tribal leaders. All participants on the
third panel expressed support for S. 2335 and stated it would
be of substantial benefit to Native American communities.
During consideration of S. 2335, on July 24, 2002, the
Committee adopted an amendment proposed by Senators Kerry and
Bond, which made changes to the Native American Development
Grant Pilot Program, eliminated the American Indian Tribal
Assistance Center Grant Program, and clarified provisions of
the legislation.
Changes to the Native American Development Grant pilot
program stemmed from testimony presented to the Committee and
subsequent discussions with the Association of Small Business
Development Centers. The elimination of the American Indian
Tribal Assistance Center grant program was a compromise
agreement worked out between the Committee managers to address
unease regarding the $7 million cost of the legislation and the
concern that multiple programs might result in inadequate
funding levels. Concerns that the SBA should focus on
strengthening its existing TBIC activity were also strongly
expressed. Clarifying changes were made as needed after
consultation with program beneficiaries, and the Senate and
House sponsors of the legislation.
III. ANALYSIS OF S. 2335, THE ``NATIVE AMERICAN SMALL BUSINESS
DEVELOPMENT ACT,'' AS AMENDED
Purpose
The purpose of the Native American Small Business
Development Act, as amended, is to create by statute an office
housed in the U.S. Small Business Administration (SBA) called
the Office of Native American Affairs (ONAA). The legislation
also establishes two assistance programs to provide aid to
Native Americans, one of which is a pilot program.
The original legislation called for the establishment of a
third assistance program, the American Indian Tribal Assistance
Center Grant Pilot Program. The amendment adopted in Committee
eliminated this proposed pilot program.
Role of the Office of Native American Affairs
The ONAA, to be headed by an Assistant Administrator, will
be responsible for assisting Native Americans and Native
American communities to start, operate, and grow small business
concerns; develop management and technical skills; seek Federal
procurement opportunities; increase employment opportunities
through the start and expansion of small business concerns; and
increase their access to capital markets.
Responsibilities of the Assistant Administrator
The Assistant Administrator for the ONAA shall be
responsible for administering the Native American Development
Program; recommending budget levels and establishing funding
levels for the programs under its jurisdiction; and maintaining
lines of communication between Native American business centers
(NABCs). The Assistant Administrator (AA) is statutorily
required to consult with Tribal Colleges and Tribal
Governments, NABCs, Alaska Native Corporations (ANC), and
Native Hawaiian Organizations (NHO) when carrying out
responsibilities under this legislation. Under the Native
American Small Business Development Act, the AA must have
knowledge of Native American cultures and experience providing
culturally tailored small business development assistance to
Native Americans.
The requirement that the AA also consult with the NABCs
established under the legislation was added in the amendment
adopted by the Committee.
Native American Small Business Development Program
The Native American Small Business Development program
under S. 2335 is designed to be the SBA's primary program for
providing business development assistance to Native American
communities. To provide this assistance, the SBA will offer
financial and resource assistance to establish and keep NABCs
in operation. Financial assistance under the Native American
Development program would be available through competitive
grant awards to Tribal Governments and Tribal Colleges, ANCs
and NHOs. Resource assistance would also be available to NABCs
located on or near Tribal lands.
Financial assistance includes grants (without a matching
requirement), contracts, or cooperative agreements. ANCs and
NHOs may only receive grant assistance.
Resource assistance includes personal computers, CD-ROM
technology and interactive videos, graphic work stations,
computer software, distance learning business-related training
courses, and reference materials.
Use of Funds
The funds available under the legislation are to be used to
address the unique conditions faced by reservation-based
American Indians, as well as Native Hawaiians and Alaska
Natives, in their efforts to create, develop, and expand small
business concerns.
Each NABC that receives financial or resource assistance
shall establish a five-year project. The five-year projects
will offer development assistance to provide:
Financial education assistance, including training
and counseling in applying for and securing business
credit and investment capital; preparing and presenting
financial statements; and managing cash flow and other
financial operations of a business concern;
Management education assistance, including training
and counseling in planning, organizing, staffing,
directing, and controlling each major activity and
function of a small business concern; and
Marketing education 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.
Application Process
Eligible entities desiring assistance under this program
must submit five-year project proposals to the SBA, which is
responsible for determining eligibility criteria within the
following guidelines:
The experience of the applicant in conducting
programs or ongoing efforts designed to impart or
upgrade the business skills of current or potential
owners of Native American small business concerns;
The ability of the applicant to commence a project
within a minimum amount of time and the ability of the
applicant to provide training and services to a
representative number of Native Americans;
The proposed location for the NABC, with a priority
given for geographic dispersion and location near
populations targeted by the legislation; and
Previous assistance from the SBA to provide services
in Native American communities.
It is the Committee's intention that in establishing the
predetermined selection criteria for the NABC grant application
process, the SBA should provide the highest priority to current
and former participants in the TBIC activity. The SBA should
then look to creating the widest possible geographic dispersion
of NABCs to ensure Native American communities throughout the
country have access to NABC services.
Program Monitoring and Evaluation
Each recipient of assistance under the NABC program shall
annually provide the SBA with a cost breakdown of all
expenditures from the previous year.
The SBA is required to review these financial reports and
analyze the results of each examination to determine the
programmatic and financial viability of each NABC. The
Committee expects this analysis to be completed promptly.
Grant renewals are available at the completion of a five-
year project. The SBA may deny a renewal if the NABC has failed
to provide any significant, required information or if the
information provided by the NABC is inadequate or incomplete,
preventing an adequate analysis of the performance of the NABC.
Contract and cooperative agreement renewals are on a yearly
basis, provided funding is available. A contract or cooperative
agreement may not be terminated or denied renewal without a
written statement of explanation from the SBA.
SBA Reporting Requirement
The SBA, with respect to each NABC receiving financial
assistance, must report annually to Congress: the number of
individuals receiving assistance from the NABC; the number of
startup business concerns formed; the gross receipts of
assisted concerns; the employment increases or decreases of
assisted Native American small business concerns; to the
maximum extent practicable, increases or decreases in profits
of assisted Native American small business concerns; and the
most recent financial examination.
The Committee believes that the SBA should develop
appropriate standards, conforming to the Government Performance
and Results Act of 1993, for the required report.
Native American Business Center Reporting Requirement
Each NABC receiving assistance from the Federal government
under this program shall annually provide the SBA a report on
the services provided with such financial assistance, including
the number of individuals assisted, categorized by ethnicity;
the number of hours spent providing counseling and training for
those individuals; the number of startup small business
concerns formed, maintained, and lost; the gross receipts of
assisted small business concerns; the number of jobs created,
maintained, or lost at assisted small business concerns; and
the number of Native American jobs created, maintained, or lost
at assisted small business concerns.
Authorization
The program is authorized at $4 million per year.
The amendment adopted in Committee transferred $1 million
of the original $5 million authorization to the Native American
Development Grant Pilot Program to accommodate changes made by
the amendment.
Native American Development Grant Pilot Program
This pilot program establishes a Native American
development grant, which is designed to provide culturally
tailored business development training and other services to
Native Americans and small businesses owned by Native
Americans. The program is authorized as a 4-year pilot program.
Grants awarded under this program are for a period of two to
four years.
Eligible Participants
The Native American development grant is open to two types
of organizations: (1) any Small Business Development Center
(SBDC); or (2) any private nonprofit organization that (a) is
permitted by the tribal government to provide technical
assistance to small business concerns within the jurisdiction
of the tribe, (b) is an NHO, or (c) is an ANC.
A provision in the legislation requires that the same
number of grants be issued to each type of eligible
organization and that disbursements occur to each type of
organization in pairs, so that each type of organization can be
evaluated against the other on a level playing field.
The amendment adopted by the Committee changed the
description of an eligible nonprofit by striking ``has tribal
government members, or their designees, comprising a majority
of its board of directors,'' and replacing it with the phrase
``is permitted by the tribal government to provide technical
assistance to small business concerns within the jurisdiction
of the tribe.'' The Committee amendment made this change in
response to hearing testimony raising concerns about the
volatility in the leadership composition of some Tribal
Governments, which may make it difficult for some nonprofit
entities to maintain Tribal Government members or their
designees on their boards.
This change is also intended to allow for a broader
application pool for the Native American development grant. The
Committee intends ``permitted'' to mean operating with the
knowledge of the Tribal Government and should not be
interpreted to mean formal written authority.
The Committee amendment also set forth the requirement for
an equal number of grants for eligible types of organizations
as a response to concerns that the pilot program, as put forth
in the underlying legislation, did not establish a true test
between SBDC services and nonprofit services in Native American
communities.
Application Criteria
Applicants must employ a full-time executive director or
program manager to manage the facility; agree to a site visit
as part of the final selection process and to an annual
programmatic and financial examination; and remedy, to the
maximum extent practicable, any problems identified pursuant to
that site visit or examination. Applicants must also provide:
Information demonstrating that the applicant has the
ability and resources to meet the needs, including
cultural needs, of the Native Americans to be served by
the grant;
Information relating to proposed assistance that the
grant will provide, including the number of individuals
to be assisted, the number of hours of counseling,
training, and workshops to be provided;
Information demonstrating the effective experience of
the applicant in conducting financial, management, and
marketing assistance programs designed to impart or
upgrade the business skills of current or prospective
Native American business owners; provide training and
services to a representative number of Native Americans
located on or off Tribal Lands; using resource partners
of the SBA and other entities, including universities,
Tribal Governments, or Tribal Colleges; and the prudent
management of finances and staffing;
The proposed location where Native Americans will
receive the culturally tailored business development
training and other services to be provided by the
applicant; and
A multi-year plan, corresponding to the length of the
grant, that describes the number of Native Americans
and Native American small business concerns to be
served by the grant; and the training and services to
be provided to a representative number of Native
Americans.
The amendment adopted in Committee added the phrase ``on or
near Tribal lands'' to the multi-year plan as it pertains to
proposed services in the contiguous United States. It is the
Committee's intention that services provided in the contiguous
United States under this pilot be focused on or near the
reservation, where poverty rates are at their worst and
economic opportunities are severely limited.
Application Review and Approval
The SBA will review each eligible applicant's submission
and approve or disapprove of the application within 60 days of
submission.
The amendment adopted in Committee establishes a
provisional approval process so that the SBA can meet the
requirements of the 60-day application review in the event that
one type of applicant must wait for the approval of the other
under the pairing requirement.
Reporting Requirements
Each recipient of a Native American development grant must
annually report to the SBA on the number of individuals
assisted, categorized by ethnicity; the number of hours spent
providing counseling and training for those individuals; the
number of startup small business concerns formed, maintained,
and lost; the gross receipts of assisted small business
concerns; the number of jobs created, maintained, or lost at
assisted small business concerns; and the number of Native
American jobs created, maintained, or lost at assisted small
business concerns.
Although not specifically stated in the legislation, the
Committee believes that SBA should submit and evaluation of
this pilot program to the Committee on Small Business of the
House and the Committee on Small Business and Entrepreneurship
of the Senate detailing whether the pilot program was
successful in providing culturally tailored small business
assistance to Native Americans and comparing and contrasting
the results of the activities of each type of eligible grant
organization under the pilot program. The Committee believes
that the SBA should develop appropriate standards, conforming
to the Government Performance and Results Act of 1993, for this
evaluation.
Grant Level and Authorization
The grants are capped at $100,000 per year. The pilot
program is authorized at $2 million per fiscal year.
The amendment adopted in Committee increased the original
authorization for this pilot program from $1 million to $2
million, $1 million for each type of eligible organization.
This increase was necessary to accommodate changes to the
Native American development grant pilot made by the amendment.
The $1 million was transferred from the Native American Small
Business Development program established in Section 2 of S.
2335.
American Indian Tribal Assistance Center Grant Program
This pilot program, along with its $1 million authorization
level and references to it within the underlying legislation,
was eliminated in the amendment adopted in Committee. The
elimination of this program reduces the overall authorized
level of S. 2335 to $6 million.
IV. COMMITTEE VOTE
In compliance with rule XXVI(7)(b) of the Standing Rules of
the Senate, the following votes were recorded on July 24, 2002.
A motion by Senator Kerry to adopt an amendment by Senators
Kerry and Bond concerning a compromise agreement on the
legislation passed by unanimous voice vote. A motion by Senator
Kerry to adopt S. 2335, the ``Native American Small Business
Development Act,'' as amended, was approved by a 19-0 recorded
vote, with the following Senators voting in the affirmative:
Kerry, Bond, Levin, Harkin, Lieberman, Wellstone, Cleland,
Landrieu, Edwards, Cantwell, Carnahan, Burns, Bennett, Snowe,
Enzi, Fitzgerald, Crapo, Allen and Ensign. No Senator voted in
the negative.
V. EVALUATION OF REGULATORY IMPACT
In compliance with rule XXVI(11)(b) of the Standing Rules
of the Senate, it is the opinion of the Committee that no
significant additional regulatory impact will be incurred in
carrying out the provisions of this legislation. There will be
no additional impact on the personal privacy of companies or
individuals who make use of the services provided.
VI. CHANGES IN EXISTING LAW
In the opinion of the Committee, it is necessary to
dispense with the requirement of rule XXVI(12) of the Standing
Rules of the Senate in order to expedite the business of the
Senate.
VII. COST ESTIMATE
In compliance with rule XXVI(11)(a)(1) of the Standing
Rules of the Senate, the Committee estimates the cost of the
legislation will be equal to the amounts indicated by the
Congressional Budget Office in the following letter.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 30, 2002.
Hon. John F. Kerry,
Chairman, Committee on Small Business and Entrepreneurship,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepare the enclosed cost estimate for S. 2335, the Native
American Small Business Development Act.
If you wish further details on the estimate, we will be
pleased to provide them. The CBO staff contact is Ken Johnson.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
S. 2335--Native American Small Business Development Act
Summary: S. 2335 would authorize the Small Business
Administration (SBA) to issue grants for small business
development centers (SBDCs) and other business training program
targeted to Native Americans. These programs would be operated
by the private sector, schools, community groups, or tribal
governments and would provide management assistance to current
and prospective small business owners.
S. 2335 would authorize the appropriation of $4 million a
year for SBDCs during the 2003-2007 period of $2 million a year
for other training programs through 2006. CBO estimates that
implementing the bill would cost $27 million over the 2003-2007
period, assuming the appropriation of the authorized amounts.
The bill would not affect direct spending or receipts;
therefore, pay-as-you-go procedures would not apply.
S. 2335 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The bill would benefit tribal governments receiving grants
under this bill, and any costs they incur would be voluntary.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 2335 is shown in the following table.
For this estimate, CBO assumes that the bill will be enacted by
the end of fiscal year 2002 and that the authorized amounts
will be appropriated for each year. Estimated outlays are based
on historical spending patterns for similar SBA programs. The
costs of this legislation fall within budget function 370
(commerce and housing credit).
----------------------------------------------------------------------------------------------------------------
By fiscal year in millions of dollars--
--------------------------------------------
2003 2004 2005 2006 2007
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level................................................ 6 6 6 6 4
Estimated Outlays.................................................. 4 6 6 6 5
----------------------------------------------------------------------------------------------------------------
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 2335
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would benefit tribal governments
receiving grants under this bill, and any costs they incur
would be voluntary.
Previous CBO cost estimate: On August 14, 2001, CBO
transmitted a cost estimate for H.R. 2538, the Native American
Small Business Development Act, as ordered reported by the
House Committee on Small Business on August 1, 2001. H.R. 2538
authorized the appropriation of $7 million a year during the
2002-2004 period for SBDCs that assist Native Americans. CBO
estimated that implementing that bill would cost about $200
million over the 2002-2006 period, assuming the appropriation
of the authorized amounts.
Estimate prepared by: Federal costs: Ken Johnson; Impact on
state, local, and tribal governments: Greg Waring; Impact on
the private sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
VIII. SECTION-BY-SECTION ANALYSIS, S. 2335, THE ``NATIVE AMERICAN SMALL
BUSINESS DEVELOPMENT ACT,'' AS AMENDED
The bill establishes the Office of Native American Affairs
within the Small Business Administration, creates the Native
American Small Business Development Program, and creates a
pilot program to assist Native American communities.
Section 1. Short title
The Act is titled the ``Native American Small Business
Development Act.''
Section 2. Native American Small Business Development Program
This section amends the Small Business Act by redesignating
the existing Section 36 as Section 37 and inserting a new
Section 36 with the Native American Small Business Development
Program.
Section 3. Pilot program
This section establishes the Native American Development
Grant Pilot Program.