To amend the Small Business Act to expand and improve the assistance provided by Small Business Development Centers to Indian tribe members, Alaska Natives, and Native Hawaiians.

Mr. Speaker, I rise in reluctant opposition to the SBA Entrepreneurial Development Programs Act of 2007. I am a strong supporter of Small Business Development Centers (SBDCs). These centers continue to do a lot of good work to promote job creation and small business development throughout our nation. There are three SBDCs that serve constituents in the 16th District of Illinois and they do phenomenal work in oftentimes a difficult local economic climate with limited resources. But I fear that the various SBDC bills we debate this week may kill the program with kindness.

The bills all taken together proposes to create nine new grant initiatives within the SBDC program. According to the non-partisan Congressional Budget Office (CBO), the bills would add $122 million in additional spending in Fiscal Year 2008 alone and $365 million over the next five fiscal years. When you consider that the Democrat-controlled House Appropriations Financial Services Subcommittee recently provided a generous increase of $11 million for the regular SBDC program to reach $100 million for Fiscal Year 2008, these bills taken together proposes to more than double the size of the SBDC program. In an era of tight budgets, I don't think any program deserves a 122 percent increase.

I am sympathetic to many of these initiatives. I am particularly supportive of making sure that Small Business Administration (SBA) employees do not interfere in hiring decisions of local SBDCs. I also support provisions in Section 207 to require more information, primarily through Internet Web-based technologies, about regulatory compliance to small business owners.

But there are still significant outstanding budgetary issues. Throughout my tenure as the former Chairman of the House Small Business Committee, I tried numerous times to see the National Regulatory Assistance and the Native American Entrepreneurial Assistance SBDC initiatives, among others, become law. Last year, we reached a common- sense consensus that in order to get these new initiatives into law, the high $135 million authorization level for the overall SBDC program should be proportionally reduced. However, that consensus is not in these bills that we are debating this week. I find it odd that the ``pay-go'' fiscal conservative rhetoric of the Democrats is not met by reality. There are no spending offsets in these bills.

Some of these initiatives also are duplicative of existing Federal programs. For example, the Manufacturing Extension Partnership (MEP) program administered by the Department of Commerce through local centers across the nation offers the very same services that are outlined in Section 203 of H.R. 2359. The National Veterans Business Development Corporation (or Vets Corp) offers the same services as those being proposed in H.R. 2366.

I also have concern that some of the provisions in H.R. 2359 go beyond the mission of SBDCs, which historically has been primarily targeted at helping new or struggling small businesses. For example, Section 206 requires that SBDC grant recipients ``shall also attempt to negotiate lower health insurance premiums for small business concerns that seek the assistance of the recipient.'' In my view, it is not the role of SBDCs to get involved in the pricing health insurance premiums. Section 204 of H.R. 2359 establishes a new program to help transition so-called ``mature'' small businesses even though there is no definition of what the authors of this legislation mean by ``transition'' or ``mature'' small business. Again, I don't think it is the role of SBDCs to be involved in initiatives that could result in the closure of small businesses.

I also fear that creating these nine new initiatives all at once will give false hope to SBDCs seeking to receive these grants. These initiatives will not start until a specific amount separate from the regular SBDC appropriation is allocated from the Appropriations Committee. In principle, this is a good policy to help insure that the money to run the regular SBDC program is not raided to fund these new initiatives. However, noting that the Democrat-controlled House Appropriations Financial Services Subcommittee just provided a long- overdue increase for the regular SBDC program, I seriously doubt that any of these specific SBDC initiatives will be funded at a significant level in the near future, further diminishing the expectations behind this legislation.

Finally, these nine new initiatives create many hoops for local SBDCs to jump through in order to qualify for these grants. These bills will create a paperwork and accounting nightmare for SBDCs to keep track of various grants, particularly if they apply and receive multiple awards under different initiatives, for the programs they administer. In retrospect, it is probably best that Congress provides an overall increase in the appropriation for the regular SBDC program and then require that all SBDCs provide some services (even if it is to network with another specialized SBDC or another Federal partner such as a local MEP center or the Vets Corp) in the nine issue areas outlined in H.R. 2359, H.R. 2366, and H.R. 2284 as opposed to the micro-management approach as contained in these bills.

Mr. Speaker, last year, I predicted that if Democrats took over control of Congress, spending on the Small Business Administration (SBA) would dramatically increase. Never in my wildest dreams did I think they would be so brazen. Elections do matter. Thus far this year, the CBO estimates that the Democrat-controlled House Small Business Committee has authorized $5.4 billion in new spending over the next 5 years--$1.379 billion in fiscal year 2008 alone. With these bills on the suspension calendar this week, proposed spending on the SBA will grow once again. All totaled, the CBO estimates that spending on the SBA will increase by nearly $5.8 billion over 4 years and $1.525 billion in fiscal year 2008 alone. To put this massive spending increase in perspective, the House Appropriations Financial Services Subcommittee recommends providing $582 million in total spending on the SBA in fiscal year 2008. I urge my colleagues to stand up for fiscal responsibility and to prevent mission-creep within the SBDC network by voting against these bills.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2284) to amend the Small Business Act to expand and improve the assistance provided by Small Business Development Centers to Indian tribe members, Alaska Natives, and Native Hawaiians.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield myself as much time as I may consume.

Mr. Speaker, small businesses are responsible for creating three out of every four new jobs and account for almost half of all sales in this country. There is no question the impact they have on economic growth and the development and revitalization of countless neighbors.

Currently, the Native American population is one of the most impoverished. Their unemployment rate is nearly double that of the general population, with almost half of all residents living on a reservation unemployed.

Providing opportunities for business growth within the Native American sector will create jobs, generate revenue and ultimately benefit local economies across the country. The Native American Small Business Development Act of 2007, introduced by Representative Udall, works to increase prospects for Native Americans through small business ownership.

While many in the Native American population are struggling, there is strong interest to engage in entrepreneurship. For these communities to have a growing small business sector, resources must be available locally and be culturally sensitive.

This legislation has enjoyed bipartisan support in the past and has passed the House in previous Congresses. It is designed to provide culturally tailored assistance for entrepreneurial development in some of the most disadvantaged areas of this country.

Not only will this bill help combat poverty and unemployment, but it will bring new services and opportunities to Native American communities. It is my hope that in the 110th Congress, H.R. 2284 can finally become law and expand the right to business ownership. I urge support of this legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico (Mr. Udall), the sponsor of the legislation.

(Mr. UDALL of New Mexico asked and was given permission to revise and extend his remarks.)

Mr. Speaker, in closing, with unemployment rampant on Native American reservations, legislation that not only fights poverty but fosters the development of job creation is critical. I strongly urge my colleagues to vote for H.R. 2284.

Mr. Speaker, I yield back the balance of my time, and encourage adoption of the resolution.

Mr. Speaker, I rise in support of H.R. 2284, which will amend the Small Business Act to improve the assistance provided by Small Business Development Centers to Indian tribe members, Alaska Natives and Native Hawaiians.

This bill will provide management, technical and research assistance to small businesses owned by Indian tribe members, Alaska Natives and Native Hawaiians and ensure them full access to existing business counseling and technical assistance available through the Small Business Development Center program.

Mr. Speaker, in a recent report by the distinguished Visiting Senior Fellow at the East-West Center and Emeritus Professor at the University Hawaii, Dr. Seiji Naya, the poverty rate for Native Hawaiians was 15 percent in 2005 while the state average was 9.8 percent. Native Hawaiians accounted for 27 percent of the total State population in poverty. The per capita income for Native Hawaiians was only 67 percent of the state average. In terms of per capita income, 32 percent of Native Hawaiians earned less than $10,000 in 2005 compared to only 18 percent for Non-Native Hawaiians.

Native Hawaiians are committed to changing these statistics through innovative educational and entrepreneurial programs. One of the most promising government programs that will enable them to do this is the Small Business Act, particularly Section 8(a) which has given Native Americans an opportunity to participate in the economy of this country by providing a fair chance to obtain federal contracts. As a result, hundreds of Native American, Alaska Native and Native Hawaiian entrepreneurs have been given the opportunity to demonstrate their business capabilities, while providing valuable services and products to the government and the private sector.

The Native Hawaiian organizations that have taken advantage of the 8(a) program have provided hundreds of new well-paying jobs for Native Hawaiians and Non-Native Hawaiians alike. Many Native Hawaiians have received training in new marketable skills. The profits from these enterprises have been plowed back into the Native Hawaiian communities to provide essential social, health and cultural benefits traditionally funded by government or not at all.

H.R. 2284 will provide the necessary assistance to help make sure that these worthy programs continue to grow and expand as much as possible by providing needed assistance and business expertise. I urge unanimous approval of this measure.

Mr. Speaker, before I begin, I would like to thank the gentlewoman from New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) for their work and commitment to expanding small business opportunities. I am especially grateful for their efforts to bring this bill to the floor today. I would also like to thank all my colleagues who supported this bill by joining me as cosponsors.

This important legislation before us today, H.R. 2284, allows Small Business Development Centers to apply for an additional SBA grant to provide specified services assisting small business start-ups and expansions owned by Indian Tribal Members, Alaskan Natives or Native Hawaiians. My bill ensures those seeking to create, develop and expand small businesses have full access to the counseling and technical assistance available through SBDCs. The tools offered by the SBDCs can assist these entrepreneurs with the information and opportunity to build sustainable businesses in their communities.

H.R. 2284 also ensures participation of governing bodies of Indian tribes, Alaskan Native entities and Native Hawaiian organizations by requiring grant recipients to request their advice on how best to provide assistance. Our intent is to ensure that these business development tools are provided in a culturally sensitive way.

Small businesses create 75 percent of all new employment opportunities and make up 99 percent of all employers. They anchor our neighborhoods, provide jobs and contribute to the overall economic development of many communities. That is why it is so imperative that we take steps to help ensure that small business development reaches the places in this country where economic prosperity has yet to be fully realized.

I have the great honor of representing 14 Pueblos, the Jicarilla Apache Nation and a portion of the Navajo Nation. Many of these communities would greatly benefit by more economic development. It is clear we can do more to aid Native American entrepreneurs in my district and throughout the country. I hope to help rectify this situation with the passage of this legislation.

Mr. Speaker, I rise today in support of H.R. 2284, a bill to amend the Small Business Act to expand and improve the assistance provided by Small Business Development Centers to Indian tribe members, Alaska Natives, and Native Hawaiians. I commend the gentleman from New Mexico (Mr. Udall) for introducing this important legislation to address poverty and unemployment amongst these disadvantaged and underserved communities. I also thank my colleague from New York (Ms. Velazquez), Chairwoman of the Committee on Small Business, and the members of the Committee on Small Business for their continued leadership toward helping strengthen our country's small businesses and in addressing the socioeconomic challenges faced by our indigenous communities.

H.R. 2284 will enable small business development centers to assist Native American communities in the areas of job creation and economic growth. This bill helps individuals to utilize their own valuable business skills so that their small businesses, and in turn their community, may prosper.

This is a strong bill. But I believe that it can strengthened by expanding the eligible grant recipients to include small business development centers that work with the indigenous populations of the territories, particularly in Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. Pacific Islanders from the territories endure economic adversity similar to that experienced by Native Americans, Alaska Natives, and Native Hawaiians. I look forward to working with my colleagues to ensure that either in conference on this legislation, or on a similar proposal, that we take action to address the small business development needs of the indigenous peoples of the U.S. territories.

This bill, if enacted, would provide for valuable federal assistance for Native Americans, and I urge my colleagues to support its passage and to support economic development for all indigenous communities throughout the United States.