[Senate Report 111-36]
[From the U.S. Government Publishing Office]


                                                        Calendar No. 93
111th Congress                                                   Report
                                 SENATE
 1st Session                                                     111-36

======================================================================



 
                ENTREPRENEURIAL DEVELOPMENT ACT OF 2009

                                _______
                                

                  July 2, 2009.--Ordered to be printed

   Filed, under authority of the order of the Senate of June 25, 2009

                                _______
                                

        Ms. Landrieu, from the Committee on Small Business and 
               Entrepreneurship, submitted the following

                              R E P O R T

                         [To accompany S. 1229]

    The Senate Committee on Small Business and Entrepreneurship 
to which was referred the bill (S. 1229) to reauthorize and 
improve the entrepreneurial development programs of the Small 
Business Administration, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                            I. INTRODUCTION

    The Entrepreneurial Development Act of 2009 (S. 1229) was 
introduced by Senator Mary L. Landrieu, for herself and Senator 
Snowe, on June 10, 2009. The bill reauthorizes the SBA's 
entrepreneurial development programs for Fiscal Years 2010, 
2011, and 2012. In addition to updating the SBA's existing 
entrepreneurial development programs, the bill authorizes 
several new program initiatives.
    During markup of the bill, the Committee unanimously 
adopted by voice vote, a bipartisan managers' substitute 
amendment, offered by Chair Landrieu for herself and Ranking 
Member Snowe. The bill was subsequently adopted as amended by a 
roll call vote of 18-0.
    S. 1229 is based on S. 1671, The Entrepreneurial 
Development Act of 2007, which was incorporated into S. 2920, 
the SBA Reauthorization and Improvements Act of 2008, which 
itself was based upon S. 3778, the Small Business 
Reauthorization and Improvements Act of 2006, a comprehensive 
reauthorization bill developed under Senator Snowe, then the 
Chair of the Committee. S. 1229 builds on the Committee's work 
in the prior Congresses, making a few changes to the 
provisions, including updating the language to provide 
clarification on the definition and qualifications of eligible 
Women's Business Centers. S. 1229 also calls for a National 
Small Business Summit. Aside from technical changes, other 
changes include extending privacy requirements to SCORE clients 
and increasing from 9 to 10 the Members of the National Small 
Business Development Center Advisory Board. Several new 
entrepreneurial development initiatives were also included in 
S. 1229, including new programs in support of veterans' and 
Native American entrepreneurship, and a program to provide 
information on health insurance options to small business 
owners.

                        II. DESCRIPTION OF BILL


                       AUTHORIZATION OF PROGRAMS


                        TITLE I--REAUTHORIZATION

    The bill reauthorizes the Small Business Development Center 
(SBDC) program, SCORE and the Paul Coverdell Drug-Free 
Workplace program for Fiscal Years 2010, 2011, and 2012.

          TITLE II--WOMEN'S SMALL BUSINESS OWNERSHIP PROGRAMS

    During the Committee's SBA reauthorization in 2003, the 
Committee determined that the SBA's programs had not evolved to 
meet the changing needs of women-owned small businesses. 
Specifically, women business leaders expressed their 
frustration with the agency, the lack of results from agency 
programs and services for existing women business owners, the 
inactivity of the National Women's Business Council and 
Interagency Committee on Women's Business Enterprise, and the 
lack of connection with the `real world problems' facing women 
entrepreneurs on a day-to-day basis.
    In response, Senator Snowe introduced the Women's Small 
Business Programs Improvement Act (S. 1154), and Senators Snowe 
and Kerry introduced the Women's Business Centers Preservation 
Act of 2003 (S. 1247), which Senator Landrieu co-sponsored. 
Provisions from these bills were then incorporated into S. 
1375, the Small Business Administration 50th Anniversary 
Reauthorization Act of 2003.
    However, in Fiscal Year 2005, a revised version of SBA's 
reauthorization was inserted into Division K of H.R. 4818, the 
Consolidated Appropriations Act for 2005. While this version 
included the reauthorization of the Women's Business Center 
program, it excluded the authorization for the Women's Business 
Center Program Sustainability Pilot program. The pilot program 
was created in bipartisan legislation, the Women's Business 
Center Sustainability Act of 1999, sponsored by Senator Kerry 
and cosponsored by Senator Snowe. Since 2005, the pilot program 
has been only reauthorized on an annual basis in Appropriations 
bills, leaving the most experienced centers, in years five 
through ten, operating with the uncertainty of whether they 
would have an opportunity to continue to participate in the 
program.
    To address these concerns and to meet the increasing demand 
for the program's services, in 2006, Senators Snowe and Kerry 
introduced the Women's Small Business Ownership Programs Act of 
2006 (S. 3659), which Senator Landrieu co-sponsored. The 
provisions of that bill were then incorporated into S. 3778. 
Senate Amendment 187, sponsored by Senators Snowe, Kerry, and 
Sununu, also addressed this issue and was unanimously passed by 
the Senate as an amendment to H.R. 2, the Fair Minimum Wage Act 
of 2007, on January 24, 2007. The Fair Minimum Wage Act was 
subsequently attached to the U.S. Troop Readiness, Veterans' 
Care, Katrina Recovery and Iraq Accountability Appropriations 
Act of 2007. The President signed this legislation into law on 
May 25, 2007. The enacted legislation allows established 
women's business centers--those beyond the first five years of 
funding--to apply for 3-year renewal grants on a continuous 
basis.
    The legislation is similar to language that passed out of 
the Committee on Small Business and Entrepreneurship as part of 
S. 3778, which was contained in S. 1671 as set forth above, and 
based on the Women's Business Center Sustainability Pilot 
Program created in 1999. S. 1229 maintains this renewable grant 
program authorization.

Small Business Administration Office of Women's Business Ownership

    The bill provides authority for the SBA's Office of Women's 
Business Ownership to develop and make available new programs 
and services for established women owned businesses addressing 
issues in the areas of women in manufacturing, technology, 
professional services, retail and product sales, travel and 
tourism, international trade, Federal government procurement 
and contracting. The Committee expects that these new programs 
and services will be developed in consultation with the 
National Women's Business Council, the Interagency Committee on 
Women's Business Enterprise, and representatives of an 
association of women's business centers.
    The bill also directs the SBA to conduct training for 
District Office Women Business Ownership Representatives 
(existing personnel who are responsible for marketing and 
outreach activities) and District Office Technical 
Representatives (existing personnel who are responsible for 
grant programmatic and financial oversight duties) as well as 
providing resources for the District Offices to carry out their 
responsibilities.
    The Women's Business Center Program, established in 1988, 
provides long-term training and counseling to encourage small 
business ownership through more than 100 non-profit 
organizations. The Women's Business Center program has been 
well received and has become a unique resource for women 
entrepreneurs--proving to be of great benefit to the SBA in its 
quest to serve greater numbers of entrepreneurs. Therefore, 
some members of the Committee have questioned agency actions in 
support of opening new centers in new locations before 
stabilizing established centers through continued funding 
opportunities. The SBA has stated that after initial funding, 
the centers should be able to provide services independent of 
the grant program. However, since a requirement of the Women's 
Business Center program is to conduct outreach and long-term 
assistance to the under-served markets on a `no-fee' basis, it 
would be difficult for many centers to become self-sufficient. 
The Committee supports the agency's positioning itself to first 
meet the obligations of renewal grant funding for productive 
centers before creating new centers.
    To improve this process, the bill directs the agency to 
streamline and reduce the reporting requirements and costs of 
the centers, recognizing the limited grant award and limited 
human resources within the centers. Additionally, the bill 
clarifies the definition of an eligible Women's Business 
Center, as well as conditions for participation and financial 
management of the WBC project. Any eligible association that 
represents Women's Business Centers will also have an 
opportunity to consult with the SBA Office of Women's Business 
Ownership for the purpose of developing training programs for 
centers and recommendations to improve the policies and 
procedures governing the operations and administration of the 
program.

National Women's Business Council

    The National Women's Business Council was created by the 
Women's Business Ownership Act of 1988 to serve as an advisory 
body to the President, the Congress and the SBA. Its members 
came from the public and private sectors, and it was 
constituted to respond to criticism of the Interagency 
Committee's inactivity. By separating from the Interagency 
Committee, the Council was better able to focus on its advisory 
mission. The 1997 Small Business Reauthorization Act provided 
for improved reporting duties and Council appointments.
    The 2000 Small Business Reauthorization Act increased the 
annual authorized appropriation from $600,000 to $1 million to 
allow the Council to broaden its scope in research and reports, 
establish advisory councils, conduct conferences, and establish 
an interstate communication network. To build upon the 
foundation previously established for the Council, the 
Committee incorporated the Council's requests to change its 
research formula and establishes a 30 percent allocation of 
appropriated funds for specific research.
    To ensure the Council's continuity and independence, the 
bill clarifies membership representation. The Council has 15 
members representing small businesses and small business 
organizations, with the Chairperson appointed by the President, 
six members representing women's business organizations, and 
the remaining eight members appointed by the SBA Administrator 
based upon recommendations of the Chair and Ranking Members of 
the Senate Committee on Small Business and Entrepreneurship and 
the House Committee on Small Business. Of these eight ``party-
affiliated'' members, four are to come from the same political 
party as the President and four are not to be of the 
President's party.
    In 2003, Senator Landrieu proposed an amendment, which was 
adopted by the Committee, to establish fairness in the 
appointment of Council members as a result of an imbalance in 
membership representation between the two political parties. 
This amendment calls for equal representation of the two 
political parties in the process of appointing members to fill 
vacant seats on the Council and requires the Administrator to 
report to Congress on vacancies that remain unfilled for more 
than 30 days. As part of S. 3778, and again in S. 1671 and S. 
2920, the Committee clarified the amendment to recognize a 
party balance for the eight ``party-affiliated'' members. The 
report must cite in detail the status of all vacancies, 
identifying the type of vacancies, the process the Council will 
follow, and the notice of any anticipated delays in filling the 
vacancies.

Interagency Committee on Women's Business Enterprise

    In 1977, an interagency task force was formed and was 
subsequently renamed the Interagency Council in May 1979 by 
Executive Order 11213. In 1988, the Women's Business Ownership 
Act (Public Law 100-533) replaced the Interagency Council with 
a joint public-private sector National Women's Business 
Council. The SBA Reauthorization and Amendment Act of 1994 
(Public Law 103-403) revised the Interagency Council's 
structure, returning all public-sector participants to comprise 
an expanded Interagency Committee on Women's Business 
Enterprise.
    In 1994, by separating the private-sector Council from the 
public-sector Interagency Committee, it was intended that the 
Council would be the pro-active force to inspire action by the 
Interagency Committee. The 1997 Reauthorization Act 
incorporated a requirement that representatives on the 
Interagency Committee report directly to the head of their 
agency on the Interagency Committee's activities. There is no 
funding authorization provided under current law to support the 
activities of the Interagency Committee. Nor are there clear 
directives on the operations and interaction of the Federal 
agency and department representatives.
    Currently, the Interagency Committee includes 
representatives from the U.S. Departments of Commerce, Defense, 
Education, Energy, Health & Human Services, Labor, 
Transportation, and Treasury, the SBA, General Services 
Administration, Office of Federal Procurement Policy, National 
Aeronautics and Science Administration, Environmental 
Protection Agency, the Federal Reserve, and the Executive 
Office of the President.
    The Federal agencies and departments represented on the 
Interagency Committee allocate existing personnel and resources 
to support participation on the Interagency Committee. The 
Interagency Committee is required to submit an annual report to 
the President and Congress, through the SBA, but there is no 
recent record of annual reports being prepared or forwarded to 
the President and Congress. In addition, the President has not 
appointed a Chairperson to carry out the mission of the 
Interagency Committee, and therefore, the Interagency Committee 
is inactive.
    To reactivate the Interagency Committee so that it can 
accomplish its intended mission, the bill directs the SBA 
Deputy Administrator to assume temporarily the responsibilities 
of the Interagency Committee Chair, if vacant, until the 
President makes an appointment. This action provides for the 
continuity of activities and avoid periods of inactivity. The 
bill also provides operational direction for the Interagency 
Committee by requiring that the Interagency Committee conduct 
three official meetings each year to plan upcoming Fiscal Year 
activities; track year-to-date agency contracting goals; and 
evaluate Fiscal Year progress and begin the report process.
    The bill also establishes, as a subcommittee to the 
Interagency Committee, a policy advisory group consisting of 
representatives from the SBA, the Department of Commerce, the 
Department of Labor, the Department of Defense, the Department 
of the Treasury, two individuals and two organizations that are 
members of the National Women's Business Council. The Committee 
believes that the policy advisory group will return the 
Interagency Committee to a mix of public/private members to 
provide the support and direction so badly needed to revive the 
intent of the Interagency Committee.

     TITLE III--NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM

    The SBA's Office of Native American Affairs implements the 
agency's outreach program for Native American communities on or 
near tribal lands. The bill codifies the Office of Native 
American Affairs, and outlines the qualifications and 
responsibilities of the Office and its head. Additionally, the 
section establishes a program that provides financial 
assistance to eligible Indian tribes, tribal colleges, and 
Alaska Native corporations to create Native American business 
centers. These centers shall conduct five year projects to 
provide culturally tailored business development training and 
related services to Native Americans and Native American small 
business concerns. A Native American business center may enter 
into a contract or cooperative agreement with a Federal 
department or agency to provide specific assistance to Native 
American and other under-served small business concerns located 
on or near tribal lands, to the extent that such contract or 
cooperative agreement is consistent with the terms of any 
federal assistance received by the Native American business 
center. This program would be authorized at $10 million per 
year for Fiscal Years 2010 through 2012.

Office of Native American Affairs pilot program

    To identify and implement Native American economic 
development opportunities available from the Federal government 
and private enterprise, the SBA's Office of Native American 
Affairs is directed to develop and publish a self-assessment 
tool for Indian tribes that will allow such tribes to evaluate 
and implement best practices for economic development, and 
provide assistance to Indian tribes, through the Inter-Agency 
Working Group.

              TITLE IV--VETERANS' BUSINESS CENTER PROGRAM

    According to the Department of Veteran Affairs, there are 
more than 23.8 million veterans in the country, with hundreds 
of new veterans returning home from service in Iraq and 
Afghanistan each day. Additionally a recent small business 
study on veteran business ownership reveals that, approximately 
22 percent of veterans in the U.S. household population were 
either purchasing or starting a new business or considering 
purchasing or starting one in 2004. Of those veteran 
entrepreneurs, 72 percent planned to employ at least one person 
in the start of their venture. The facts indicate that many 
veterans and military personnel returning from recent tours, 
become entrepreneurs to support themselves, create new jobs in 
their communities, and help to strengthen the economy overall.
    Since the passage of ``The Veterans Entrepreneurship and 
Small Business Development Act of 1999'' (P.L. 106-50), the 
SBA's Office of Veterans Business Development (OVBD) has been 
working to provide technical assistance and support to those 
veterans who have served our country and returned to start or 
grow a small business. This Committee supports those efforts to 
ensure their seamless transition to civilian life--and 
specifically civilian employment--provide them with the 
information and tools they need to become successful small 
business owners, and encourage increased levels of veteran 
entrepreneurship. Additionally, this Committee recognizes the 
work that the OVBD has done, and continues to do, in providing 
critical information and services to veteran small business 
owners across the country.
    To that end, the bill establishes a Veterans Business 
Center program within the OVBD, to provide entrepreneurial 
training and counseling to veterans, service-disable veterans, 
Reservists, their spouses and surviving spouses. Specifically, 
this bill authorizes financial assistance to be provided to 
private nonprofit organizations participating in this program 
so they may assist veterans, service-disable veterans, 
Reservists, their spouses and surviving spouses through a 
variety of training outreach, education, and other services. 
The bill provides selection criteria for receiving financial 
assistance through this program, as well as reporting 
requirements for private nonprofit organizations that are 
receiving financial assistance through this program, and 
directs certain coordination efforts between participating 
veterans' business centers and relevant SBA District Office 
personnel. Additionally, the bill authorizes the OVBD to create 
an online mechanism through which it may provide information to 
assist veterans business centers in providing services set 
forth in this section, and for veterans' business centers to be 
able to distribute information and resource materials and 
communicate with each other regarding best practices.

         TITLE V--PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS

    The Program for Investment in Microentrepreneurs (PRIME) 
was created in 1999 when the PRIME Act was incorporated and 
amended in the Gramm-Leach-Bliley Act as part of the U.S. 
Department of the Treasury's Community Development Financial 
Institutions Program. At that time, the conferees chose to have 
the program administered by the SBA. However, the statutory 
provisions were never moved to the Small Business Act.
    PRIME is a program to provide grants to intermediaries that 
use the funds to: (1) train other intermediaries to develop 
microenterprise training and services programs; (2) research 
microenterprise practices; or (3) provide training and 
technical assistance to disadvantaged entrepreneurs. The bill 
reauthorizes PRIME, transfers the statutory language for PRIME 
to the Small Business Act and directs that the program be 
administered through the Office of Entrepreneurial Development 
within the SBA. This bill adds a data collection provision and 
reauthorizes the program at $15 million for Fiscal Years 2010, 
2011, and 2012.

                       TITLE VI--OTHER PROVISIONS

Institutions of higher education

    The bill requires SBDC grantees to be accredited 
institutions of higher education, other than those that are 
already grantees.

Health insurance options information for small business concerns

    One of the most pressing issues facing small business today 
is the rising cost of health insurance. Small businesses face a 
crisis when it comes to securing quality, affordable health 
insurance for their employees. Health insurance costs are 
skyrocketing, and small businesses are trapped in stagnant, 
dysfunctional state insurance markets that have little, if any, 
competition. Further compounding matters, many small businesses 
do not possess the resources, the personnel, or the information 
to navigate the complex health care landscape.
    The Committee supports efforts to increase small business 
awareness of all health insurance options available to them. 
The bill establishes a grant program, to be administered 
through the Office of Entrepreneurial Development within the 
SBA, to provide information, counseling, and educational 
materials to small businesses, through the existing framework 
of relevant resource partners as outlined in the bill. The 
Committee believes that resource partners, such as the 
Association of Small Business Development Centers, the 
Association of Women's Business Centers, SCORE, and Veterans 
Business Centers provide an appropriate mechanism to 
disseminate information about health insurance options to small 
businesses.
    This section is based on the Small Business Health 
Information Options Act of 2007, S. 1690, introduced by Senator 
Snowe in the 109th and 110th Congresses and cosponsored by 
Senators Kerry and Bennett, and later contained in S. 1671, The 
Entrepreneurial Development Act of 2007. It is based on recent 
research conducted by the non-partisan Healthcare Leadership 
Council, which found that with a short educational and 
counseling session, small businesses were up to 33 percent more 
likely to offer health insurance to their employees.

National Small Business Development Center Advisory Board

    Although SBDCs are grouped into 10 regions throughout the 
country, the National Small Business Development Center 
Advisory Board presently only has 9 members on its board. In 
order to ensure that all regions are represented on the board, 
this bill would allow 10 members to serve on the board.

Privacy requirements for SCORE chapters

    Maintaining the privacy of clients is of vital importance 
in allowing a client to share business details and thus receive 
help from a counselor. This provision extends the privacy rules 
which apply to SBDC clients to SCORE clients.

National Small Business Summit

    The last national small business summit, the White House 
Conference on Small Business, took place over a decade ago. 
Many of the recommendations from that conference were enacted 
into law and have helped small businesses continue to drive the 
American economy. However, much has changed since that time, 
and small businesses continue to face new challenges such as 
rising health care costs, increasing regulations and low cost 
competition. This summit will be an opportunity to highlight 
the importance of small businesses in the economy and focus 
attention on the problems and the solutions necessary to 
address the obstacles that may be hindering the ability of 
small businesses to start up and grow.

Assistance to out-of-state small businesses; Small business development 
        centers

    After a disaster, the SBA usually provides additional staff 
and funding to assist only the SBA's disaster loan program. 
However, the Small Business Development Centers (SBDCs), 
resource partners of the SBA, have played a critical role in 
providing additional assistance and counseling to the victims 
of disaster areas. To assist the SBDCs disaster recovery 
efforts, the bill authorizes the Administrator to waive the 
$100,000 maximum size for SBDC portability grants used for 
disaster response. In addition, SBDCs will be authorized to 
provide services to small businesses located outside the SBDC's 
own home state if the small business concerns are located in a 
disaster area. The Committee also believes that SBDCs should be 
allowed to operate at disaster recovery sites, if permissible.

Educating and networking entrepreneurs through technology

    Twenty percent of the American population is projected to 
be self-employed by 2020, growing the American economy from 23 
million companies today to more than 80 million over the next 
11 years. These emerging and growth oriented small business 
owners need technical assistance and training, through 
instructive interaction and meaningful networks across 
industries to accelerate their growth and reduce the risk 
associated with business start up or expansion. Particularly in 
rural regions, small business owners lack access to these 
services and resources; they find a confusing array of 
providers and programs and many small firms go their entire 
business life without substantive interaction with business 
peers.
    The committee supports efforts to accelerate the growth of 
innovative small business owners through online peer, 
professional and global networking, on-demand educational 
resources, and the shared resources of public and private 
programs which offer technical assistance and counseling 
services to small business owners and entrepreneurs. The bill 
establishes an online portal where entrepreneurs and small 
business owners can interact with one another, service 
providers and the global economy. Specifically, the bill 
directs the SBA to consult or contract with resource partners 
of the SBA and qualified third-party vendors in establishing 
and managing this program, in order to fully leverage public 
and private technological and educational resources.

                          III. COMMITTEE VOTE

    In compliance with rule XXVI(7)(b) of the Standing Rules of 
the Senate, the following vote was recorded on June 18, 2009.
    A motion by the Chair to adopt the Entrepreneurial 
Development Act of 2009, as amended by the Manager's Amendment, 
to reauthorize the Small Business Administration's (SBA) 
entrepreneurial development programs and to report the bill 
favorably with an amendment in the nature of a substitute 
reflecting the text as amended by the Manager's Amendment, was 
approved by a unanimous 18-0 recorded vote with the following 
Senators voting in the affirmative: Landrieu, Kerry, Levin, 
Harkin, Lieberman, Cantwell, Bayh, Pryor, Cardin, Shaheen, 
Hagan, Snowe, Bond, Vitter, Thune, Enzi, Isakson, Wicker.

                           IV. 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 discussed in the 
following letter from the Congressional Budget Office.
                                                     June 25, 2009.
Hon. Mary L. Landrieu,
Chairman, Committee on Small Business and Entrepreneurship
U.S. Senate, Washington, DC.
    Dear Madam Chair: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1299, the 
Entrepreneurial Development Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

S. 1229--Entrepreneurial Development Act of 2009

    Summary: S. 1229 would authorize funding for a number of 
Small Business Administration (SBA) programs that provide 
technical support and assistance to small business owners in 
targeted populations, including Native Americans, women, and 
veterans. The bill also would authorize the Government 
Accountability Office (GAO) to prepare several reports on 
issues related to those assistance programs.
    Assuming appropriation of the necessary amounts, CBO 
estimates that implementing S. 1229 would cost $614 million 
over the 2010-2014 period. (Those totals include about $3 
million per year for estimated administrative costs.) Enacting 
the bill would not affect direct spending or revenues.
    S. 1229 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1229 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2010      2011      2012      2013      2014    2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Grant Programs:
    Authorization Level............................       223       231       238         0         0        692
    Estimated Outlays..............................        35       106       178       167       113        599
Additional Administrative Costs:
    Estimated Authorization Level..................         4         4         4         3         3         18
    Estimated Outlays..............................         2         2         3         3         3         13
GAO Reports:
    Estimated Authorization Level..................         2         0         0         0         0          2
    Estimated Outlays..............................         0         1         1         0         0          2
    Total Changes:
        Estimated Authorization Level..............       229       235       242         3         3        712
        Estimated Outlays..........................        37       109       182       170       116        614
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: S. 1229 would authorize appropriations 
through fiscal year 2012 to continue several SBA programs that 
provide assistance to owners of small businesses. CBO estimates 
that implementing the provisions of S. 1229 would cost $614 
million over the 2010-2014 period, assuming appropriation of 
the necessary amounts.

Grant Programs

    The bill would reauthorize through 2012 the Service Corps 
of Retired Executives program, the Small Business Development 
Center (SBDC) program, the Drug-free Workplace program, and the 
Program for Investment in Microentrepreneurs and would 
authorize the appropriation of $565 million over the 2010-2012 
period for those programs. CBO estimates that implementing 
those provisions would cost $488 million over the 2010-2014 
period, assuming appropriation of the specified amounts.
    The bill also would reauthorize SBA's Women's Small 
Business Center program and the National Women's Business 
Council for three years. CBO estimates that implementing those 
programs to support businesses owned by women would cost $57 
million over the 2010-2014 period, assuming appropriation of 
the specified amounts.
    Several programs supporting business ownership by Native 
Americans would be authorized through 2012 under the 
legislation as well. S. 1229 would establish a small business 
development program for Native Americans to offer assistance 
that is tailored to Native American culture. The bill also 
would authorize SBA to develop a tool to evaluate various 
economic development options for Indian tribes. CBO estimates 
that those provisions would cost $27 million over the 2010-2014 
period.
    S. 1229 would establish a veterans' business center program 
to provide training and counseling to veterans, service-
disabled veterans, reservists and their spouses, and surviving 
spouses. The bill also would require the Office of Veterans' 
Business Development to create an online system to support the 
activities of the veterans' business centers. CBO estimates 
that those provisions would cost $27 million over the 2010-2014 
period, assuming appropriation of the specified amounts.

Additional administrative costs

    Based on information from SBA, CBO estimates that the 
agency would need an additional eight full-time equivalent 
positions to establish an Office of Native American Affairs and 
to meet the additional administrative requirements that arise 
from changes to various programs made by the bill. Costs for 
that additional support would total an estimated $13 million 
over the 2010-2014 period.

GAO reports

    Finally, S. 1229 would authorize GAO to prepare a number of 
studies and reports on topics that include the difficulties 
both women's business centers and Native American business 
centers face as a result of economic factors in the areas they 
serve, the effectiveness of the veterans business center 
program, and the feasibility of extending certain pilot 
programs created in the bill. CBO estimates that completing 
these reports would cost about $2 million over the 2010-2014 
period.
    Intergovernmental and private-sector impact: S. 1229 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. By authorizing grants to SBDCs, tribal 
business information centers, and veterans business centers, 
the bill would benefit state, local, and tribal governments. 
Any costs that those entities incur would result from complying 
with conditions of federal assistance.
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on State, Local, and Tribal Governments: Elizabeth Cove 
Delisle; Impact on the Private Sector: Jacob Kuipers.
    Estimate approved by: Theresa Gullo; Deputy Assistant 
Director for Budget Analysis.

                   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 utilize the services provided.

                    VI. SECTION-BY-SECTION ANALYSIS

    Sec. 1. Short Title. The Entrepreneurial Development Act of 
2009.
    Sec. 2. Table of Contents.
    Sec. 3. Definitions.

                        TITLE I--REAUTHORIZATION

    Reauthorizations: Reauthorizes the Small Business 
Development Center (SBDC) program, SCORE and the Paul Coverdell 
Drug-Free Workplace program for 2010, 2011, and 2012.

          TITLE II--WOMEN'S SMALL BUSINESS OWNERSHIP PROGRAMS

    Sec. 201. Office of Women's Business Ownership. This 
section amends the Small Business Act by directing the SBA 
Office of Women's Business Ownership to develop new programs 
and services for established women-owned businesses. In 
addition, this provision requires the Office of Women's 
Business Ownership to consult with the associations 
representing the Women's Business Centers, the National Women's 
Business Council, and the Interagency Committee on Women's 
Business Enterprise. It also requires that training be provided 
for SBA District Office personnel responsible for carrying out 
Agency programs. Finally, this provision requires the 
Administration to improve the women's business center grant 
process and the programmatic and financial oversight process.
    Sec. 202. Women's Business Center Program. Reauthorizes the 
Women's Business Center (WBC) program for 2010, 2011, and 2012. 
Also recognizes the existence and activities of any association 
of women's business centers representing more than half a 
percent or more of the WBCs. Requires the SBA Administrator to 
consult with any association of WBCs to develop training for 
WBC and improvement for the WBC program. In addition, the bill 
clearly sets forth the process and criteria that the agency 
must follow in administering the women's business center grant 
program, and clarifies eligibility for participation in the 
program. It requires the SBA to disburse grants as quickly as 
possible and to provide justification if new WBCs are located 
within 50 miles of an existing WBC. Further, it establishes a 
minimum annual grant amount of $150,000 each WBC.
    Sec. 203. National Women's Business Council. Reauthorizes 
the National Women's Business Council for 2010, 2011, and 2012. 
Changes the Council's research allocation from $550,000 to 30 
percent of appropriated funds.
    Sec. 204. Interagency Committee on Women's Business 
Enterprise. Provides an acting chairperson of the Interagency 
Committee on Women's Business Enterprise and establishes a 
Policy Advisory Group to assist the chairperson in developing 
policies and programs, and defines the composition of the 
Policy Advisory Group. The bill also provides operational 
direction for the Interagency Committee by requiring that the 
Interagency Committee conduct three official meetings each year 
to plan upcoming Fiscal Year activities; track year-to-date 
agency contracting goals; and evaluate Fiscal Year progress and 
begin the report process.
    Sec. 205. Preserving the independence of the National 
Women's Business Council. Requires an equal number of members 
appointed to serve on the Council representing each of the two 
major political parties. This also requires that if a vacancy 
is not filled, or if there exists an imbalance of party-
affiliated members on the Council, in a 30-day period, a report 
must be submitted to the Senate Committee on Small Business and 
Entrepreneurship and House Committees on Small Business and 
Entrepreneurship.
    Sec. 206. Study and report on Women's Business Centers. 
Requires the Comptroller General, within one year of enactment 
of this Act, to conduct a broad study of the unique economic 
issues facing women's business centers covered under this Act.

     TITLE III--NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM

    Sec. 301. Short title. Native American Small Business 
Development Act of 2009.
    Sec. 302. Native American Small Business Development 
Program. The bill codifies the Office of Native American 
Affairs, and outlines the qualifications and responsibilities 
of the Office and its head. Additionally, this section provides 
financial assistance to tribal governments, tribal colleges, 
and Alaska Native corporations to create Native American 
business centers. These centers shall conduct five-year 
projects that offer culturally-tailored business development 
assistance. This program would be authorized at $10 million per 
year for fiscal years 2010 through 2012.
    Sec. 303. Study and report on Native American business 
centers. Requires the Comptroller General, within one year of 
enactment of this Act, to conduct a broad study of the unique 
economic issues facing Native American business centers covered 
under this Act.
    Sec. 304. Office of Native American Affairs pilot program. 
This section authorizes a two-year pilot program for the Office 
of Native American Affairs to develop and publish a self-
assessment tool for evaluation and implementation of best 
practices for economic development for Indian tribes. The 
provision includes a reporting requirement on the effectiveness 
of the self-assessment tool. It also authorizes assistance in 
identifying economic development opportunities to Indian tribes 
through the Inter-Agency Working group, which is comprised of 
key federal agencies. The provision does not include nor 
require authorization of appropriations.

              TITLE IV--VETERANS' BUSINESS CENTER PROGRAM

    Sec. 401. Veterans' Business Center Program; Office of 
Veterans Business Development. This section establishes a 
Veterans Business Center program within the Office of Veterans 
Business Development, to provide entrepreneurial training and 
counseling to veterans, service-disable veterans, Reservists, 
their spouses and surviving spouses. This section authorizes 
financial assistance to be provided to private nonprofit 
organizations participating in this program so that they may be 
able to provide training and services set forth in this 
section. This section also provides selection criteria for 
receiving financial assistance through this program, as well as 
reporting requirements for private nonprofit organizations that 
are receiving financial assistance through this program. This 
section also directs certain coordination efforts between 
participating veterans' business centers and relevant SBA 
District Office personnel.
    Additionally, this section authorizes the Office of 
Veterans Business Development (OVBD) to create an online 
mechanism through which the OVBD may provide information to 
assist veterans business centers in providing services set 
forth in this section, and for veterans' business centers to be 
able to distribute information and resource materials and 
communicate with each other regarding best practices. This 
section authorizes to be appropriated to carry out the 
veterans' business center program: $8 million for fiscal year 
2010; $8.5 million for fiscal year 2011; and $9 million for 
fiscal year 2012. Additionally, the bill calls for $2 million 
annually for the SBA's Office of Veterans Business Development 
for each of fiscal years 2010 through 2012.
    Sec. 402. Reporting requirement for interagency task force. 
Requires a biannual report to Congress on appointments made to, 
progress, and action items regarding the Task Force established 
under section 32(c) of the Small Business Act.
    Sec. 403. Repeal and renewal of grants. Repeals previous 
grant language in the Small Business Act in recognition of the 
establishment of the new veterans' business center program. 
Provides that any private nonprofit receiving financial 
assistance through this program may apply for a renewal of that 
assistance.

         TITLE V--PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS

    Sec. 501. PRIME Reauthorization and transfer to the Small 
Business Act. This subsection transfers the authorization of 
this program from the Riegle Act to the Small Business Act, 
clarifying that the program should be administered by the SBA 
through the Office of Entrepreneurial Development. Of the money 
designated for this program, which provides technical 
assistance to micro-entrepreneurs, the section authorizes 
additional funds to serve Native Americans. This section 
authorizes $15,000,000 for each of fiscal years 2010 through 
2012 to carry out this section, and authorizes $2,000,000 for 
each of fiscal years 2010 through 2012 to serve Native 
Americans.
    Sec. 502. Conforming repeal and amendments.
    Sec. 503. References.
    Sec. 504. Rule of construction.

                       TITLE VI--OTHER PROVISIONS

    Sec. 601. Institutions of higher education. This provision 
requires SBDC grantees that are institutions of higher 
education to be accredited and grandfathers any SBDC grantee 
institution of higher education that is not yet accredited but 
is seeking accreditation.
    Sec. 602. Health insurance options information for small 
business concerns. Establishes a grant program, to be 
administered through the Office of Entrepreneurial Development, 
providing financial assistance to resource partners to be able 
to provide neutral and objective information and educational 
materials regarding health insurance options, including 
coverage options within the small group market, to small 
business concerns. Additionally, this section requires a review 
of the effectiveness of this program within two years of 
disbursement of grants. This section authorizes $5,000,000 for 
this program.
    Sec. 603. National Small Business Development Center 
Advisory Board. The bill adds one member to the National Small 
Business Development Center Advisory Board for a total of ten 
members, to ensure that all ten SBDC districts are represented 
on the board, and revises certain requirements for composition 
of the Advisory Board.
    Sec. 604. Privacy requirements for SCORE chapters. This 
provision extends the privacy protections afforded to SBDC 
clients to SCORE clients.
    Sec. 605. National Small Business Summit. Directs the 
President to convene a National Small Business Summit before 
December 31, 2012 to examine the present conditions and future 
of small businesses in the United States. The summit shall 
include small business owners, representatives of small 
business groups, labor, academia, nonprofit policy groups, and 
State and Federal governments. In addition, no later than 90 
days after the summit, the President will release a report 
identifying key challenges and making recommendations for 
promoting entrepreneurship and the growth of small businesses.
    Sec. 606. SCORE Program. This section amends the Small 
Business Act by replacing all references to the ``Service Corps 
of Retired Executives'' with ``SCORE'' as the official name of 
the program.
    Sec. 607. Assistance to out-of-state small businesses. This 
section authorizes the Administrator to permit small business 
development centers to provide assistance to small business 
concerns located outside of the state without regard to 
geographic proximity during a major disaster.
    Sec. 608. Small business development centers. This section 
revises certain provisions regarding portability grants 
including allowing the Administrator to make grants in excess 
of $100,000 to accommodate extraordinary events with a 
catastrophic impact.
    Sec. 609. Evaluation of pilot programs. This section 
directs the Comptroller General to conduct a study of pilot 
programs related to small business development centers, 
evaluating those programs and providing recommendations as to 
improvements of those programs.
    Sec. 610. Educating and networking entrepreneurs through 
technology. Establishes an online networking and information 
and education resource platform utilizing web-based 
communications and other advanced technology, and leveraging 
available technological resources of resource partners and 
other public and private entities, as a means of providing 
online training, information, and other resources in promoting 
and developing entrepreneurs.