[House Report 110-195]
[From the U.S. Government Publishing Office]





110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-195
======================================================================
 
               SBA WOMEN'S BUSINESS PROGRAMS ACT OF 2007

                                _______
                                

 June 15, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2397]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Small Business, to whom was referred the 
bill (H.R. 2397) to reauthorize the women's entrepreneurial 
development programs of the Small Business Administration, and 
for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
   I. Purpose of the Bill and Summary.................................1
  II. Background and Need for Legislation.............................2
 III. Hearings........................................................4
  IV. Committee Consideration.........................................4
   V. Committee Votes.................................................4
  VI. Section-by-Section Analysis of H.R. 2397........................4
 VII. Congressional Budget Office Cost Estimate.......................8
VIII. Committee Estimate of Costs.....................................9
  IX. Oversight Findings..............................................9
   X. Statement of Constitutional Authority...........................9
  XI. Compliance With Public Law 104-4................................9
 XII. Congressional Accountability Act................................9
XIII. Federal Advisory Committee Statement............................9
 XIV. Statement of No Earmarks........................................9
  XV. Performance Goals and Objectives...............................10
 XVI. Changes in Existing Law Made by the Bill, as Reported..........10

                         I. Purpose and Summary

    Providing entrepreneurial development assistance is one of 
the Small Business Administration's (SBA) main agency-wide 
missions and the most critical for those Americans seeking to 
start a new enterprise, requiring direction with their need for 
start-up capital, business plans, and other basic management 
skills.\1\ One of the most notable changes in the 
entrepreneurial sector is the composition of the population of 
small business owners. Women-owned firms are among the fastest 
growing and most successful of all small businesses. Congress 
recognized this by requiring the SBA to direct some of its 
entrepreneurial outreach programs to women-owned small 
business. However, these programs need further modification to 
ensure that a greater percentage of women have the necessary 
technical resources to start small businesses. The SBA Women's 
Business Programs Act of 2007, H.R. 2397, amends key sections 
of the Small Business Act to support this continued growth of 
women entrepreneurs, especially from underserved communities, 
including socio-economically disadvantaged and rural areas.
---------------------------------------------------------------------------
    \1\ PL 85-536, Section 2(a).
---------------------------------------------------------------------------
    H.R. 2397 supports the growth of women entrepreneurs in two 
ways: enhancing research conducted on women entrepreneurship 
issues; and establishing a more targeted approach to funding of 
Women's Business Centers. Title I requires the National Women's 
Business Council \2\ to consult with Congress and conduct at 
least one study per year on current issues affecting women 
entrepreneurs. It also mandates that the Council update the 
Committee on modifications to its plans and programs. Title II 
establishes a funding formula that allocates federal resources 
to both new and existing Women's Business Centers which provide 
outreach and entrepreneurial development assistance through a 
network of sites located throughout the country. It also 
promotes the expansion of these centers into underserved areas 
by reducing the matchmaking requirement for communities lacking 
investment and requiring centers to target their programs to 
clients in these communities.
---------------------------------------------------------------------------
    \2\ The National Women's Business Council is an independent board 
whose mission is to provide advice on women's business issues to among 
others, the Administrator of the SBA. 15 U.S.C. Sec. 7105.
---------------------------------------------------------------------------
    H.R. 2397 strengthens existing entrepreneurial development 
programs at the agency to ensure they continue to serve a 
unique and important role assisting women small business 
owners. The Committee expects that the legislation will 
increase the effectiveness of federal resources in promoting 
entrepreneurship and using public funds to spur private 
investment in all communities. Furthermore, the Committee 
expects that these changes will promote women entrepreneurship 
in areas, such as rural America, that lag the rest of the 
country in the development of women-owned small businesses.

                II. Background and Need for Legislation


                  A. TRENDS IN WOMEN ENTREPRENEURSHIP

    The diversified entrepreneurial sector is a rapidly growing 
component of the United States economy. Women entrepreneurs 
increasingly develop businesses that create jobs, innovative 
products, and competitive industries.
    Much of the growth in the country's entrepreneurial 
activity is fueled by women-owned firms. For the past two 
decades, women owned firms grew two times faster than the 
national average.\3\ Women own nearly one-third of all 
businesses in the United States which total about 10 million 
firms.\4\ These women entrepreneurs take in about $1 trillion 
in gross receipts \5\ and employ 13 million people.\6\
---------------------------------------------------------------------------
    \3\ Center for Women's Business Research.
    \4\ Ibid.
    \5\ National Women's Business Council.
    \6\ Ibid.
---------------------------------------------------------------------------
    Despite significant success, there still is a wealth of 
untapped women entrepreneurs, especially in low-income and 
rural areas. In order to effectively initiate and expand 
enterprises, women need information and technical assistance to 
develop successful business plans and production processes. 
Entrepreneurial development programs focused on women 
entrepreneurs enhance business opportunities for women by 
providing them insight (through research) and advice that they 
might not otherwise find available. The changes that the 
Committee makes in H.R. 2397 will expand the opportunities for 
women entrepreneurs, whether they already own a business or 
seek to start one.

                  B. CHALLENGES TO WOMEN ENTREPRENEURS

    Women entrepreneurs continue to face obstacles starting, 
maintaining and growing small businesses. These difficulties 
are exacerbated in areas inner cities and rural areas due to 
the lack of readily available networks that can provide advice 
on developing business models, performing market research, 
understanding different types of business structures, and 
finding needed capital. Some of these obstacles have been 
addressed in other legislation adopted by the Committee in its 
ongoing efforts to renew various programs under the Small 
Business Act and Small Business Investment Act of 1958. H.R. 
2397 specifically focuses on the provision of outreach so that 
women entrepreneurs may develop the appropriate strategies for 
obtaining necessary capital and technical assistance required 
to start, maintain, and grow competitive enterprises. The 
Committee expects that the modest changes in H.R. 2397 will 
provide substantial benefits to women business owners and 
especially those located in communities that do not have 
adequate entrepreneurial assistance infrastructure.
    No business in America can start without some influx of 
capital. Commercial financial institutions, including those 
that operate in the SBA's 7(a) loan guarantee program and the 
certified development company program, require the accumulation 
of capital or credit histories. Women wishing to start 
businesses, especially those in inner cities and rural areas, 
will have significantly less accumulated capital to offer as 
collateral. By targeting entrepreneurial assistance to women, 
particularly in these underserved areas, H.R. 2397 will assist 
women to develop financial strategies that enhance their 
capability of locating necessary capital to expand their 
business.
    There are two main aspects to creating a competitive 
enterprise. First, the business model must produce its goods 
and services at a cost less than the marginal value of the 
revenue it obtains from the sale of such goods and services. 
Second, access to markets frequently requires a knowledge of 
the business environment, including potential purchasers and 
competitors. The former often requires ingenuity in the design 
of business practice, including the access to advanced 
technology, and the latter requires an institutional networking 
system. By expanding the network of resource centers and 
facilities to connect business owners with other entrepreneurs, 
H.R. 2397 will provide this sector with increased tools to 
pursue business opportunities. As a result, the legislation is 
expected to increase the competitive capabilities of women 
entrepreneurs.

                             III. Hearings

    On May 16, 2007, the Committee on Small Business held a 
hearing on the entrepreneurial development needs of small 
business owners. The hearing focused on the changing 
entrepreneurial population, particularly the growth of women 
small business owners and their needs in the changing economy. 
At a hearing before the Subcommittee on Contracting and 
Technology on March 21, 2007, issues on women entrepreneurship 
also were raised. Finally, the Committee's hearing on the 
President's proposed budget for the SBA on February 8, 2007 
also delved into the importance of women entrepreneurs and the 
adequacy of the budget resources to support women-owned small 
businesses.

                      IV. Committee Consideration

    The Committee on Small Business, a quorum being present, 
met in open session on May 23, 2007 to consider H.R. 2397.

                           V. Committee Votes

    The Committee on Small Business ordered H.R. 2397 reported 
to the House, as amended by an amendment in the nature of 
substitute, by a voice vote at 10:35 a.m.

              VI. Section-by-Section Analysis of H.R. 2397


Section 1. Short title; table of contents

    This section includes a short title and the table of 
contents.

                                TITLE I

Section 101. Annual studies on problems hindering the success of women 
        entrepreneurs

    The statute creating the National Women's Business Council 
gave the Council substantial discretion in determining its 
agenda, including the research that it would undertake in its 
role as an advisor to the Small Business Administration. This 
section narrows that discretion somewhat by requiring the 
Council to perform at least one study per year that focuses on 
obstacles to the success of women entrepreneurs. The Committee 
expects that the studies will not focus on the same issue year 
after year and expects that the Council will use its expertise 
in determining what obstacles are most important to examine 
each year. Furthermore, the Committee expects that the Council 
will modify its projected research on hindrances to growth of 
women-owned small businesses when economic or technological 
change necessitate modification of its research agenda.
    Typical studies that the Council has performed in the past, 
such as those related to general business development will not 
be considered to meet the objectives set forth in this section. 
Studies need to examine specific issues, such as access to 
venture capital for women entrepreneurs, the impact of rising 
energy costs on women businesses, the lack of broadband access 
in rural areas, or the networks that increase the competitive 
disadvantage women may face in the federal procurement arena.
    The Committee requires that the Council consult with the 
House and Senate Small Business Committees to ensure that there 
proposed studies on barriers to growth of women enterprises 
will examine issues of importance not only to the Council but 
to Congressional policymakers. In other words, the Committee 
intends that the studies mandated by this section shall be 
useful not only to the SBA to but legislators as well. In order 
to ensure the utility of these studies to Congress, the 
Committee expects that the Council will consult with the 
Committee at least 30 days prior to the commencement of any 
research.

Section 102. Additional progress reports

    This provision requires the Council to inform keep federal 
policymakers apprised of its plans through the submission of 
biannual reports to the President and the House and Senate 
Small Business Committees regarding its current and future 
initiatives, policies, and programs. In carrying out the 
responsibilities mandated by this section, the Committee 
expects the Council to apprise its Members of new research 
projects as well as coordination activities with federal 
agencies and their partners, particularly Women's Business 
Centers.

                                TITLE II

    The most significant component of this section is the 
modification of the funding formula for the implementation of 
the Women's Business Center Program created by Section 29 of 
the Small Business Act. Currently, the Administrator selects a 
grantee or grantees from numerous applicants, and then enters 
into a grant agreement covering a five-year period specifying 
how the grantee will deliver the services to be provided at a 
Women's Business Center (WBC). When originally created, 
Congress expected WBCs to become self-sustaining with private 
charitable contributions. WBCs then notified Congress that they 
were having difficulty raising funds from sources other than 
the federal government. Congress reacted by creating a 
sustainability pilot program that authorized some of the funds 
appropriated for new centers would be diverted to sustain 
existing centers whose five-year grant term was expiring. 
Grants under the sustainability pilot were to last four years 
(a time period which expired some time ago) and were for an 
additional five years. In the 2000 reauthorization, funds for 
sustainability were apportioned at 30.2 percent. In subsequent 
appropriations bills, including the most emergency supplemental 
appropriation to fund the activities of the military in Iraq 
and Afghanistan, the percentages for sustainability have 
continued to increase thereby making it more difficult to 
balance funds available to offer women in underserved low-
income areas, including rural America, the services of WBCs.
    The Committee believes that a new approach is needed to 
ensure resources are allocated more fairly to meet the 
objectives of the program. Title II of H.R. 2397 imposes a 
sensible authorization and allocation of funds to WBCs. First, 
it returns to the authorizing Committees decisions on the 
appropriate allocations of funds between existing and new 
centers. Second, it recognizes the need for increased matching 
funds by reducing the size of federal grants for centers open 
for more than five years. Finally, it establishes stricter 
standards to obtain federal funding after eight years of 
existence.

Section 201. Revised funding formula

    The funding formula eliminates the distinction in current 
law between funding and the sustainability pilot program. 
Section 201 classifies WBC into three separate tiers.
    The bill allocates 40 percent of available funding to new 
centers, i.e., to areas where an existing center has not been 
funded. Each grant, subject to the revised matching formula, is 
limited to $150,000 per center. Nothing in H.R. 2397 prohibits 
an applicant from applying for more than one grant under the 
First Tier as long as the applicant opens centers in areas not 
currently served by a WBC.
    Second tier grants (allocated 20 percent of available 
funds) will last for three years and are available to existing 
centers that have completed their original five years of 
funding. In recognition of Congressional intent that WBCs were 
to become self-sustaining, section 201 reduces the size of 
federal grants to Second Tier WBCs from $150,000 to $100,000. 
The remaining forty percent of funds will be made available to 
WBCs that have exhausted their Second Tier Grants. Third Tier 
Grants will last for three years but are renewable for as long 
as the WBC meets the criteria for obtaining a Third Tier Grant. 
Although the Committee is taking the practical step of 
recognizing that the sustainability pilot program is neither a 
pilot program nor about sustainability, the Committee still 
expects WBCs to seek self-sufficiency without federal funds.\7\ 
In recognition of this fact, the size of Third Tier Grants are 
limited to $100,000 and certain benchmarks must be met to 
obtain and continue to receive Third Tier Grants.
---------------------------------------------------------------------------
    \7\ Permanent non-federal funding will benefit WBCs that no longer 
will have to rely on the caprice of federal appropriators.
---------------------------------------------------------------------------
    Performance requirements are established for those centers 
reapplying for Third Tier Grants. In making allocations for 
Third Tier Grants, the Administrator shall develop benchmarks 
\8\ that total women served by center, proportion of low-income 
women and socioeconomic distribution of clients served by 
center, proportion of individuals in community that are 
socially and economically disadvantaged (based on median income 
for both rural and urban areas), future fundraising and service 
coordination plans, diversity of services provided, and 
regional distribution within SBA's 10 districts. The Committee 
expects that these benchmarks and the available funding of 
Third Tier Grants will provide incentives to extant WBCs to 
serve currently underserved areas, such as inner cities and 
rural America. Furthermore, the Committee expects, when 
considering the fundraising capacity of Third Tier Grant 
applicants, to recognize the new match formula created by 
section 202 for WBCs serving low-income areas, including rural 
areas that have not kept pace with overall income growth in the 
country.
---------------------------------------------------------------------------
    \8\ In developing the benchmarks, the Committee expects the 
Administrator to comply with the notice and comment requirements of the 
Administrative Procedure Act as set forth in the SBA's regulations at 
13 C.F.R. Sec. 101.108.
---------------------------------------------------------------------------

Section 202. Matchmaking formula

    WBCs do not receive all of their funding from federal 
grants. Rather, they are required to obtain matching funds from 
non-federal sources. Section 202 revises that matching formula 
to better recognize the difficulties the diversity of WBCs, the 
regions they serve, and their capacity to raise non-federal 
funds for operations. The matching formula recognizes that WBCs 
in the first few years of operations do not have an adequate 
track record to disclose to potential contributors. As a 
result, section 202 only requires WBCs to obtain one dollar in 
non-federal funds for every two dollars in federal funds during 
the first and second year of operations.\9\ Thereafter, the 
matching requirement is a dollar for dollar match unless the 
WBC is serving a very low-income area (one in which at least 50 
percent of the population is below the median income for the 
state). For centers serving a high concentration of lower 
income individuals, such WBCs need only obtain one dollar in 
non-federal dollars for every two dollars of federal grant 
money. The Committee adopted this approach to ensure that 
centers serving low-income (who could benefit the most from the 
advice of WBCs) should not be restrained in offering their 
services because it is harder to raise funds in the local area.
---------------------------------------------------------------------------
    \9\ The Committee expects that the Administrator shall, in 
selecting First Tier grantees, scrutinize WBC operating plans to ensure 
they have mechanisms in place to ramp up their fundraising efforts 
beyond year two. Furthermore, to the extent that the Administrator has 
collected or knows of best practices for WBC fundraising, the Committee 
expects that information will be made available to applicants as well 
as operating WBCs.
---------------------------------------------------------------------------

Section 203. Termination of funding

    At the point that centers determine to terminate their 
funding relationship with the federal government, they are 
prohibited from reapplying for funding. The Committee took this 
approach in order to provide scarce budgetary resources to 
those centers that are in most need of federal funds. However, 
this section allows them to continue using the WBC logo upon 
compliance with general requirements for operating WBCs. The 
Committee expects independent WBCs to uphold the objectives and 
mandate of those centers receiving federal funds.

Section 204. Women's Business Center Awards to be made public

    Nothing in the Small Business Act requires that the SBA 
make the public aware of grantees selected to operate WBCs. The 
absence of transparency makes it difficult for potential 
applicants to determine their likelihood of success and what 
areas of the country, a state, or region needs to be covered by 
a new WBC or a WBC wishing to expand into new territories. The 
Committee expects the agency to develop a process in which the 
public is notified within one week following the award of a 
grant to an entity for the provision of services under this 
program. Notification should include the recipient (including 
whether the center is new or existing) and the grant award 
amount. The Committee expects the SBA to make the information 
available to the public through its website. In making this 
information available on its website, the SBA needs to ensure 
that it can be found with no more than two clicks on two links 
after finding the SBA homepage.\10\ Further, it is the 
Committee's intention that grants are distributed no more than 
one month following the notification of an award.
---------------------------------------------------------------------------
    \10\ The Committee included this language in the Committee report 
because it continues to be frustrated by the inartful and unintuitive 
design of the SBA website. This is not a new complaint for the 
Committee. It has mentioned problems about the SBA website as far back 
as 2003. Four years later and the website continues to make it 
impossible for its oversight Committee staff to find relevant material 
about SBA programs. If the Committee staff cannot find it, then it is 
highly likely that the general public cannot. Thus, the unfortunate 
requirement in the Committee report concerning website accessibility.
---------------------------------------------------------------------------

             VII. Congressional Budget Office Cost Estimate

                                                     June 14, 2007.
Hon. Nydia M. Velazquez, Chairwoman,
Committee on Small Business,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2397, the SBA 
Women's Business Programs Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 2397--SBA Women's Business Programs Act of 2007

    H.R. 2397 would revise the method used by the Small 
Business Administration (SBA) to award grants that support the 
activities of women's business centers. The bill also would 
make several technical changes in the program that supports 
small businesses owned or controlled by women. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing the provisions of H.R. 2397 would cost less than 
$500,000 per year. Enacting the bill would not affect direct 
spending or revenues.
    H.R. 2397 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    Under current law, SBA provides grants to conduct five-year 
projects to provide financial, management, and marketing 
assistance to businesses owned or controlled by women. H.R. 
2397 would create three levels of funding to support the 
activities of women's business centers:
          The first tier of grants which would be 
        allocated 40 percent of available funds would support 
        new five-year projects.
          The second tier which would be allocated 20 
        percent of available funds would support three-year 
        projects in an area where a first-tier project is being 
        completed.
          The third tier which would be allocated 20 
        percent of available funds would support three-year 
        projects in an area where a second-tier project is 
        being completed, and would be subject to certain 
        performance benchmarks.
    Other provisions of the bill would relax requirements 
placed on women's business centers to provide matching funds in 
certain situations, require SBA to make financial assistance 
awards to women's business centers available to the public, and 
require the National Women's Business Council to prepare two 
new reports on its activities.
    The CBO staff contact for this estimate is Susan Willie.
    The estimate was approved by Peter H. Fontaine, Deputy 
Assistant Director for Budget Analysis.

                   VIII. Committee Estimate of Costs

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2397. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

                         IV. Oversight Findings

    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House of Representatives, the oversight findings and 
recommendations of the Committee on Small Business with respect 
to the subject matter contained in H.R. 2397 are incorporated 
into the descriptive portions of this report.

                X. Statement of Constitutional Authority

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, Section 8, clause 18, of the 
Constitution of the United States.

                  XI. Compliance With Public Law 104-4

    H.R. 2397 contains no unfunded mandates.

                 XII. Congressional Accountability Act

    H.R. 2397 does not relate to the terms and conditions of 
employment or access to public services or accommodations with 
the meaning of section 102(b)(3) of P.L. 104-1.

               XIII. Federal Advisory Committee Statement

    H.R. 2397 does not establish or authorize the establishment 
of any new advisory committees.

                     XIV. Statement of No Earmarks

    Pursuant to clause 9 of rule XXI, H.R. 2397 does not 
contain any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in clause 9(d), 9(e), or 
9(f) of rule XXI.

                  XV. Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H.R. 2397 includes a number of provisions designed to 
update and to improve the Small Business Administration's 
entrepreneurial assistance programs for women.

       XVI. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

WOMEN'S BUSINESS OWNERSHIP ACT OF 1988

           *       *       *       *       *       *       *


TITLE IV--DEVELOPMENT OF WOMEN'S BUSINESS ENTERPRISE

           *       *       *       *       *       *       *


SEC. 406. DUTIES OF THE COUNCIL.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Other Duties.--The Council shall--
          (1) * * *

           *       *       *       *       *       *       *

          (4) develop and promote new initiatives, policies, 
        programs, and plans designed to foster women's business 
        enterprise, and on a biannual basis (notwithstanding 
        paragraph (6)) submit to the President and to the 
        Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House 
        of Representatives a report containing a description 
        of, and the status of, such initiatives, policies, 
        programs, and plans; and

           *       *       *       *       *       *       *


SEC. 409. STUDIES AND OTHER RESEARCH.

  (a) * * *
  (b) Problems Hindering the Success of Women Entrepreneurs.--
The Council shall conduct at least one study per year that 
evaluates the problems hindering the success of women 
entrepreneurs. The Council shall select the topic for the study 
in consultation with the Committee on Small Business of the 
House of Representatives and the Committee on Small Business 
and Entrepreneurship of the Senate.
  [(b)] (c) Contract Authority.--In conducting any study or 
other research under this section, the Council may contract 
with one or more public or private entities.

           *       *       *       *       *       *       *

                              ----------                              


SMALL BUSINESS ACT

           *       *       *       *       *       *       *


SEC. 29. WOMEN'S BUSINESS CENTER PROGRAM.

  (a) * * *
  [(b) Authority.--The Administration may provide financial 
assistance to private nonprofit organizations to conduct 5-year 
projects for the benefit of small business concerns owned and 
controlled by women. The projects shall provide--
          [(1) financial assistance, including training and 
        counseling in how to apply for and secure business 
        credit and investment capital, preparing and presenting 
        financial statements, and managing cash flow and other 
        financial operations of a business concern;
          [(2) management assistance, including training and 
        counseling in how to plan, organize, staff, direct, and 
        control each major activity and function of a small 
        business concern; and
          [(3) marketing 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.]
  (b) Authority.--
          (1) In general.--The Administrator may provide 
        financial assistance to private nonprofit organizations 
        to conduct projects for the benefit of small business 
        concerns owned and controlled by women. The projects 
        shall provide--
                  (A) financial assistance, including training 
                and counseling in how to apply for and secure 
                business credit and investment capital, 
                preparing and presenting financial statements, 
                and managing cash flow and other financial 
                operations of a business concern;
                  (B) management assistance, including training 
                and counseling in how to plan, organize, staff, 
                direct, and control each major activity and 
                function of a small business concern; and
                  (C) marketing 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.
          (2) Tiers.--The Administrator shall provide 
        assistance under paragraph (1) in three tiers of 
        assistance as follows:
                  (A) The first tier shall be to conduct a 5-
                year project in a situation where a project has 
                not previously been conducted. Such a project 
                shall be in a total amount of not more than 
                $150,000 per year.
                  (B) The second tier shall be to conduct a 3-
                year project in a situation where a first-tier 
                project is being completed. Such a project 
                shall be in a total amount of not more than 
                $100,000 per year.
                  (C) The third tier shall be to conduct a 3-
                year project in a situation where a second-tier 
                project is being completed. Such a project 
                shall be in a total amount of not more than 
                $100,000 per year. Third-tier grants are 
                renewable subject to established eligibility 
                criteria as well as criteria in subsection 
                (b)(4).
          (3) Allocation of funds.--Of the amounts made 
        available for assistance under this subsection, the 
        Administrator shall allocate--
                  (A) at least 40 percent for first-tier 
                projects under paragraph (2)(A);
                  (B) 20 percent for second-tier projects under 
                paragraph (2)(B); and
                  (C) the remainder for third-tier projects 
                under paragraph (2)(C).
          (4) Benchmarks for third-tier projects.--In awarding 
        third-tier projects under paragraph (2)(C), the 
        Administrator shall use benchmarks based on socio-
        economic factors in the community and on the 
        performance of the applicant. The benchmarks shall 
        include--
                  (A) the total number of women served by the 
                project;
                  (B) the proportion of low income women and 
                socio-economic distribution of clients served 
                by the project;
                  (C) the proportion of individuals in the 
                community that are socially or economically 
                disadvantaged (based on median income);
                  (D) the future fundraising and service 
                coordination plans;
                  (E) the diversity of services provided; and
                  (F) regional distribution within the 10 
                districts of the Administration.
  (c) Conditions of Participation.--
          (1) Non-federal contributions.--As a condition of 
        receiving financial assistance authorized by this 
        section, the recipient organization shall agree to 
        obtain, after its application has been approved and 
        notice of award has been issued, cash contributions 
        from non-Federal sources as follows:
                  [(A) in the first and second years, 1 non-
                Federal dollar for each 2 Federal dollars; and
                  [(B) in the third, fourth, and fifth years, 1 
                non-Federal dollar for each Federal dollar.]
                  (A) For the first and second years of the 
                project, 1 non-Federal dollar for each 2 
                Federal dollars.
                  (B) Each year after the second year of the 
                project--
                          (i) 1 non-Federal dollar for each 
                        Federal dollar; or
                          (ii) if the center is in a community 
                        at least 50 percent of the population 
                        of which is below the median income, 1 
                        non-Federal dollar for each 2 Federal 
                        dollars.

           *       *       *       *       *       *       *

          (5) Termination.--An organization that has conducted 
        a project under this subsection--
                  (A) is not eligible to conduct another such 
                project; and
                  (B) may continue thereafter to use the 
                women's business center logo only with the 
                consent of the Administrator.

           *       *       *       *       *       *       *

  (g) Office of Women's Business Ownership.--
          (1) * * *
          (2) Assistant administrator of the office of women's 
        business ownership.--
                  (A) * * *
                  (B) Responsibilities and duties.--
                          (i) * * *
                          (ii) Duties.--The Assistant 
                        Administrator shall--
                                  (I)  * * *

           *       *       *       *       *       *       *

                                  (V) select applicants to 
                                participate in the program 
                                under this section, and make 
                                available to the public the 
                                award made to each applicant so 
                                selected;

           *       *       *       *       *       *       *


                                  
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