II
Calendar No. 218
110th CONGRESS
1st Session
H. R. 2359
IN THE SENATE OF THE UNITED STATES
June 21, 2007
Received; read the first time
June 22, 2007
Read the second time and placed on the calendar
AN ACT
To reauthorize programs to assist small business concerns, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the SBA Entrepreneurial Development
Programs Act of 2007
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Revisions to Small Business Development Centers
Sec. 101. Small Business Development Centers operational changes.
Title II—Grant initiatives
Sec. 201. Capital Access Initiative.
Sec. 202. Disaster Recovery Program.
Sec. 203. Innovation and Competitiveness Services to Manufacturers Initiative.
Sec. 204. Mature Entrepreneurs Assistance Program.
Sec. 205. Small Business Sustainability Initiative.
Sec. 206. Grants to small business development centers to provide assistance in securing affordable health insurance.
Sec. 207. National regulatory assistance.
Sec. 208. Report.
Title III—SCORE
Sec. 301. Repeal of Active Corporation of Executives.
Sec. 302. Increasing the proportion of SCORE volunteers from socially and economically disadvantaged backgrounds.
Sec. 303. Benchmark reporting.
Revisions to Small Business Development Centers
Small Business Development Centers operational changes
Accreditation requirement
Section 21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)) is amended—
in the proviso, by
inserting before institution
the following:
accredited
;
in the sentence
beginning The Administration shall
, by inserting before
institutions
the following: accredited
;
and
by adding at the
end the following new sentence: As used in this paragraph, the term
accredited institution of higher education means an institution
that is accredited as described in section 101(a)(5) of the Higher Education
Act of 1965 (20
U.S.C. 1001(a)(5)).
Program negotiations
Section 21(a)(3) of the Small Business Act (15
U.S.C. 648(a)(3)) is amended, in the matter before subparagraph (A), by
inserting before agreed
the following:
mutually
.
Contract negotiations
Section 21(a)(3)(A) of the Small Business Act (15
U.S.C. 648(a)(3)(A)) is amended by inserting after uniform
negotiated
the following: mutually agreed to
.
No SBA interference in SBDC hiring
Section 21(c)(2)(A) of that Act (15
U.S.C. 648(c)(2)(A)) is amended by inserting after full-time
staff
the following: , the hiring of which is carried out by the
center without interference from, and without influence by, any officer or
employee of the Administration,
.
Content of consultations covered by privacy requirements
Section 21(a)(7)(A)
of that Act (15
U.S.C. 648(a)(7)(A)) is amended by inserting after under
this section
the following: , or the content of any consultation
with such an individual or small business concern,
.
Repeal of authority To use authorized amounts for administrative expenses
Section 21(a)(4)(C)(v) of that Act (15 U.S.C. 648(a)(4)(C)(v)) is amended by amending subclause (I) to read as follows:
In general
Of the amounts made available in any fiscal year to carry out this section, not more than $500,000 may be used by the Administration to pay expenses enumerated in subparagraphs (B) through (D) of section 20(a)(1).
.
No cap on non-matching portability grants in the event of a disaster
Section 21(a)(4)(C)(viii) of that Act (15 U.S.C.
648(a)(4)(C)(viii)) is amended by adding at the end the following:
However, in the event of a disaster, the dollar limitation in the
preceding sentence does not apply.
.
Definition of SBDC
Section 21(a) of that Act (15 U.S.C. 648(a)) is amended by adding at the end the following:
Definition
For the purposes of this section, a Small Business Development Center is—
the entity selected by the Administrator to receive funds pursuant to the funding formula set forth in paragraph (4); or
the site at which the services specified by this section are delivered.
.
Limitation on distribution to SBDCs
Section 21(b) of that Act (15 U.S.C. 648(b)) is amended by adding at the end the following:
Limitation on distribution to Small Business Development Centers
In general
Except as provided in this paragraph, the Administrator shall not distribute funds to a Small Business Development Center if the State in which the Small Business Development Center is located is served by more than one Small Business Development Center. For purposes of this limitation, the term Small Business Development Center shall have the meaning set forth in subsection (a)(8).
Unavailability exception
The Administrator may distribute funds to two Small Business Development Centers, as that term is defined in subsection (a)(8)(A), if no applicant has applied to serve the entire State. Except as provided in subparagraph (C), the Administrator is prohibited from distributing funds to more than two Small Business Development Centers.
Grandfather clause
The limitations in this paragraph shall not apply for any State in which more than one Small Business Development Center received funding prior to January 1, 2007.
.
Reporting of broadband service purchases
Section 21(c) of that Act (15 U.S.C. 648(c)) is amended by adding at the end the following:
Reporting of broadband service purchases
In general
Pursuant to policies adopted by the Administrator, Small Business Development Centers shall report information to the Administrator by nine-digit zip code—
whether the individual seeking counseling purchases broadband service at the address reported to the Small Business Development Center;
if the reported address is different than the business address, whether broadband service is purchased at the business address; and
if broadband service is not purchased at the addresses set forth in clauses (i) and (ii).
Reporting
The Administrator shall aggregate data by nine-digit zip code reporting such information to the Federal Communications Commission and the National Telecommunication and Information Administration.
.
Grant initiatives
Capital Access Initiative
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following:
Capital Access Initiative
In general
A lead Small Business Development Center may apply for an additional grant to carry out a capital access initiative program.
Elements of program
Under a program under paragraph (1), the Center shall—
provide capital education by creating a model template to assist individuals in preparing for a broad range of capital offerings;
assess company potential by conducting company assessments, which shall include, at a minimum, risk analysis and mapping of best capital opportunities;
prepare individuals to request capital by advising on the various aspects of such a request, including the business plan, the financials, the projections, the presentation, and the approach;
provide education on the rules of access engagement, organizations involved and available, and approaches that maximize successful requests; and
deliver ongoing assistance once capital is secured.
Support
In
carrying out this subsection, the Administrator shall obtain support from
national associations and from organizations such as regional development
groups and angel
groups founded by Small Business Development
Centers.
Minimum amount
Each grant under this subsection shall be for at least $100,000.
Maximum amount
No applicant may receive more than $300,000 in grants under this subsection in a fiscal year.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this subsection.
.
Disaster Recovery Program
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by this Act, is further amended by adding at the end the following:
Disaster Recovery Program
In general
A lead Small Business Development Center may apply for an additional grant to carry out a disaster recovery program.
Elements of program
Under a program under paragraph (1), the Center shall—
serve, in partnership with the Administration’s disaster center response teams, as a locally based resource for first responders by—
rotating personnel into a disaster area for immediate response on the ground, processing applications, developing an evaluating recovery business models, and distributing accurate information; and
providing continued interaction, over time, with businesses that are recovering from a disaster;
participate in ongoing national disaster training;
develop specific State-level disaster response plans; and
form a network with other Centers to serve as a platform for sharing disaster expertise, training, and human resources.
Minimum amount
Each grant under this subsection shall be for at least $50,000.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this subsection.
.
Innovation and Competitiveness Services to Manufacturers Initiative
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by this Act, is amended by adding at the end the following:
Innovation and Competitiveness Services to Manufacturers Initiative
In general
A lead Small Business Development Center may apply for an additional grant to carry out an innovation and competitiveness services to manufacturers initiative program.
Elements of program
Under a program under paragraph (1), the Center shall—
participate in national training institutes to provide training to all programs of the Center to assist those programs to qualify for technology accreditation designation;
develop,
disseminate, and regularly update best practices toolkits
that
include best practices for resources, training programs, consultative
approaches, and support services;
recruit and engage significant local assets and resources (such as colleges, universities, economic development organizations, and trade associations) in each State;
launch nationally a locally based but common themed marketing program, targeted at small manufacturers;
undertake aggressive outreach to increase the levels of innovation and competitiveness, focusing on business advisement and training for manufacturers;
provide ongoing professional development to personnel of the Center and of other resource partners; and
develop and report performance, using common evaluation metrics and outcome measurements.
Minimum amount
Each grant under this subsection shall be for at least $150,000.
Maximum amount
A grant under this subsection may not exceed $500,000.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this subsection.
.
Mature Entrepreneurs Assistance Program
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by this Act, is amended by adding at the end the following:
Mature Entrepreneurs Assistance Program
In general
A lead Small Business Development Center may apply for an additional grant to carry out a mature entrepreneurs assistance program.
Elements of program
Under a program under paragraph (1), the Center shall—
provide advisors and training resources to assist business owners in recognizing and developing transition plans, including by—
providing training and educational screening processes on the potential benefits and hazards of self-employment; and
developing courses, consulting processes, and highly targeted resource materials, and deploying them throughout the Small Business Development Center network;
link business owners with additional resource service providers to prepare businesses for transition, including by increasing partnership opportunities, particularly with the Service Corps of Retired Executives (SCORE);
identify business opportunities for those interested in acquiring businesses;
help individuals identify and acquire financing for acquisition; and
provide continuing support once transition has occurred.
Minimum amount
Each grant under this subsection shall be for at least $175,000.
Maximum amount
A grant under this subsection may not exceed $350,000.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this subsection.
.
Small Business Sustainability Initiative
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by this Act, is amended by adding at the end the following:
Small Business Sustainability Initiative
In general
A lead Small Business Development Center may apply for an additional grant to carry out a small business sustainability initiative program.
Elements of program
Under a program under paragraph (1), the Center shall—
provide necessary support to smaller and medium-sized businesses to—
evaluate energy efficiency and green building opportunities;
understand the cost benefits of energy efficiency and green building opportunities;
secure financing to achieve energy efficiency or to construct green buildings; and
empower management to implement energy efficiency projects;
assist entrepreneurs with clean technology development and technology commercialization through—
technology assessment;
intellectual property;
Small Business Innovation Research submissions;
strategic alliances;
business model development; and
preparation for investors; and
help small business improve environmental performance by shifting to less hazardous materials and reducing waste and emissions at the source, including by providing assistance for businesses to adapt the materials they use, the processes they operate, and the products and services they produce.
Minimum amount
Each grant under this subsection shall be for at least $150,000.
Maximum amount
A grant under this subsection may not exceed $300,000.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this subsection.
.
Grants to small business development centers to provide assistance in securing affordable health insurance
Grant authority
The Administrator of the Small Business Administration (hereafter in this section referred to as the Administrator) may award a grant under this section to a lead small business development center (as described under section 21 of the Small Business Act (15 U.S.C. 648)).
Use of funds
A recipient of a grant under this section shall use the grant only for the purpose of providing to the owner of a small business concern assistance in identifying and securing affordable health insurance for their business and employees. A recipient of such a grant shall identify Federal, State, and local initiatives designed to assist small businesses and provide such education information to small business concerns seeking assistance on obtaining health insurance. A recipient of such a grant shall also work with health insurance providers in the area to identify premiums charged on health insurance for small business. A recipient of such a grant shall also attempt to negotiate lower health insurance premiums for small business concerns that seek the assistance of the recipient.
Minimum grant amount
A grant under this section may not be in an amount less than $200,000.
Application
Each applicant for a grant under this section shall submit to the Administrator an application in such form as the Administrator may require. The application shall include information regarding the applicant’s goals and objectives for helping address entrepreneur’s concerns with health insurance costs.
Report to Administrator
As a condition of receiving a grant under this section, the Administrator shall require the recipient of a grant to submit to the Administrator, not later than 18 months after the date on which the grant is received, a report describing how the grant funds were used.
Cooperative agreements and contracts
The Administrator may enter into a cooperative agreement or contract with the recipient of a grant under this section to provide additional assistance that furthers the purposes of this section.
Applicability of grant requirements
An applicant for a grant under this section shall comply with all of the requirements applicable to a grantee under section 21 of the Small Business Act, except that the matching funds requirements of such section shall not apply.
Evaluation of program
Not later than March 31, 2009, the Administrator shall submit to Congress a report that contains an evaluation of the grant program under this section.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this subsection.
National regulatory assistance
The Small Business Act is amended by inserting after section 21 (15 U.S.C. 648) the following:
Small business regulatory assistance
Definitions
In this section, the following definitions apply:
Association
The term ‘Association’ means the association recognized by the Administrator of the Small Business Administration under section 21(a)(3)(A).
Participating small business development center
The term ‘participating Small Business Development Center’ means a Small Business Development Center participating in the program.
Program
The term ‘program’ means the regulatory assistance program established under this section.
Regulatory compliance assistance
The term ‘regulatory compliance assistance’ means assistance provided by a Small Business Development Center to a small business concern to enable the concern to comply with Federal regulatory requirements.
Small Business Development Center
The term ‘Small Business Development Center’ means a lead Small Business Development Center described in section 21.
State
The term ‘State’ means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.
Authority
In accordance with this section, the Administrator shall establish a program to provide regulatory compliance assistance to small business concerns through selected Small Business Development Centers, the Association of Small Business Development Centers, and Federal compliance partnership programs.
Small Business Development Centers
In general
In carrying out the program, the Administrator shall enter into arrangements with selected Small Business Development Centers under which such Centers shall provide—
access to information and resources, including current Federal and State nonpunitive compliance and technical assistance programs similar to those established under section 507 of the Clean Air Act (42 U.S.C. 7661f);
training and educational activities;
confidential, free-of-charge, one-on-one, in-depth counseling to the owners and operators of small business concerns regarding compliance with Federal and State regulations, as long as such counseling is not considered to be the practice of law in a State in which a Small Business Development Center is located or in which such counseling is conducted;
technical assistance;
referrals to experts and other providers of compliance assistance who meet such standards for educational, technical, and professional competency as are established by the Administrator; and
access to the Internet and training on Internet use, including the use of the Internet website established by the Administrator under subsection (d)(1)(C).
Reports
In general
Each selected Small Business Development Center shall transmit to the Administrator a quarterly report that includes—
a summary of the regulatory compliance assistance provided by the center under the program; and
any data and information obtained by the center from a Federal agency regarding regulatory compliance that the agency intends to be disseminated to small business concerns.
Electronic form
Each report required under subparagraph (A) shall be transmitted in electronic form.
Interim reports
A participating Small Business Development Center may transmit to the Administrator such interim reports as the Center considers appropriate.
Limitation on disclosure requirements
The Administrator shall not require a Small Business Development Center to disclose the name or address of any small business concern that received or is receiving assistance under the program, except that the Administrator shall require such a disclosure if ordered to do so by a court in any civil or criminal action.
Data repository and clearinghouse
In general
In carrying out the program, the Administrator shall—
act as the repository of and clearinghouse for data and information submitted by Small Business Development Centers;
submit to the President, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives an annual report that includes—
a description of the types of assistance provided by participating Small Business Development Centers under the program;
data regarding the number of small business concerns that contacted participating Small Business Development Centers regarding assistance under the program;
data regarding the number of small business concerns assisted by participating Small Business Development Centers under the program;
data and information regarding outreach activities conducted by participating Small Business Development Centers under the program, including any activities conducted in partnership with Federal agencies;
data and information regarding each case known to the Administrator in which one or more Small Business Development Centers offered conflicting advice or information regarding compliance with a Federal or State regulation to one or more small business concerns;
any recommendations for improvements in the regulation of small business concerns; and
a list of regulations identified by the Administrator, after consultation with the Chief Counsel for Advocacy of the Administration, who shall review such list, and the Small Business and Agriculture Regulatory Enforcement Ombudsman, as being most burdensome to small business concerns, and recommendations to reduce or eliminate the burdens of such regulations; and
establish an Internet website that—
provides access to Federal, State, academic, and industry association Internet websites containing industry-specific regulatory compliance information that the Administrator deems potentially useful to small businesses attempting to comply with Federal regulations; and
arranges such Internet websites in industry-specific categories.
Review of burdensome regulations and petition for agency review
Transmission of list of regulations to Chief Counsel for Advocacy
The Administrator shall transmit to the Chief Counsel for Advocacy of the Administration a copy of the list of regulations submitted under subsection (d)(1)(B) as part of the annual report required by that subsection.
Review of list of regulations
The Chief Counsel for Advocacy shall review the list of regulations transmitted under paragraph (1) and identify any regulation that—
is eligible for review in accordance with section 610 of title 5, United States Code;
has a significant impact on a substantial number of small business concerns that is substantially different from the impact indicated in the final regulatory flexibility analysis for that regulation, as published with the final regulation in the Federal Register; or
has a significant impact on a substantial number of small business concerns and for which no final regulatory flexibility analysis was ever performed.
Notification and agency review
With respect to any regulation identified under paragraph (2) the Chief Counsel for Advocacy shall—
notify the appropriate Federal rulemaking agency and the Office of Information and Regulatory Affairs of the Office of Management of the identification of such rule or regulation; and
request the review of such regulation—
in accordance with section 610 of title 5, United States Code; or
for any impact it has on small business concerns.
Annual report
The Chief Counsel for Advocacy shall publish an annual report containing a list of any regulation identified under paragraph (2) and the disposition by the appropriate agency.
Eligibility
In general
A Small Business Development Center shall be eligible to receive assistance under the program only if the center is certified under section 21(k)(2).
Waiver
With respect to a Small Business Development Center seeking assistance under the program, the Administrator may waive the certification requirement set forth in paragraph (1) if the Administrator determines that the center is making a good faith effort to obtain such certification.
Selection of participating State programs
Establishment of program
In consultation with the Association and giving substantial weight to the Association's recommendations, the Administrator shall select the Small Business Development Center programs of 2 States from each of the following groups of States to participate in the program:
Group 1: Maine, Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode Island.
Group 2: New York, New Jersey, Puerto Rico, and the Virgin Islands.
Group 3: Pennsylvania, Maryland, West Virginia, Virginia, the District of Columbia, and Delaware.
Group 4: Georgia, Alabama, North Carolina, South Carolina, Mississippi, Florida, Kentucky, and Tennessee.
Group 5: Illinois, Ohio, Michigan, Indiana, Wisconsin, and Minnesota.
Group 6: Texas, New Mexico, Arkansas, Oklahoma, and Louisiana.
Group 7: Missouri, Iowa, Nebraska, and Kansas.
Group 8: Colorado, Wyoming, North Dakota, South Dakota, Montana, and Utah.
Group 9: California, Guam, Hawaii, Nevada, and Arizona.
Group 10: Washington, Alaska, Idaho, and Oregon.
Deadline for initial selections
The Administrator shall make selections under paragraph (1) not later than 60 days after promulgation of regulations under subsection (k).
Additional selections
Not earlier than the date 3 years after the date of the enactment of this paragraph, the Administrator may select Small Business Development Center programs of States in addition to those selected under paragraph (1). The Administrator shall consider the effect on the programs selected under paragraph (1) before selecting additional programs under this paragraph.
Coordination to avoid duplication with other programs
In selecting programs under this subsection, the Administrator shall give a preference to Small Business Development Center programs that have a plan for consulting with Federal and State agencies to ensure that any assistance provided under this section is not duplicated by an existing Federal or State program.
Matching not required
Subparagraphs (A) and (B) of section 21(a)(4) shall not apply to assistance made available under the program.
Distribution of grants
In general
Except as provided in paragraph (2), each State program selected to receive a grant under subsection (g) in a fiscal year shall be eligible to receive a grant in an amount not to exceed the product obtained by multiplying—
the amount made available for grants under this section for the fiscal year; and
the ratio that the population of the State bears to the population of all the States with programs selected to receive grants under subsection (g) for the fiscal year.
Minimum amount
The minimum amount that a State program selected to receive a grant under subsection (g) shall be eligible to receive under this section for any fiscal year shall be $200,000. The Administrator shall reduce the amount described in paragraph (1) as appropriate to carry out the purposes of this paragraph and subsection (j)(2).
Evaluation and report
Not later than 3 years after the establishment of the program, the Comptroller General of the United States shall conduct an evaluation of the program and shall transmit to the Administrator, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives a report containing the results of the evaluation along with any recommendations as to whether the program, with or without modification, should be extended to include the participation of all Small Business Development Centers.
Promulgation of regulations
After providing notice and an opportunity for comment and after consulting with the Association (but not later than 180 days after the date of the enactment of this section), the Administrator shall promulgate final regulations to carry out this section, including regulations that establish—
priorities for the types of assistance to be provided under the program;
standards relating to educational, technical, and support services to be provided by participating Small Business Development Centers;
standards relating to any national service delivery and support function to be provided by the Association under the program;
standards relating to any work plan that the Administrator may require a participating Small Business Development Center to develop; and
standards relating to the educational, technical, and professional competency of any expert or other assistance provider to whom a small business concern may be referred for compliance assistance under the program.
Funding
Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out section 21(a)(1), the Administrator may make grants or enter into cooperative agreements to carry out this section.
.
Report
Not later than 18 months after the date of the enactment of this Act, the Administrator of the Small Business Administration shall submit to Congress a report evaluating the effectiveness of the new Small Business Development Center programs added by the amendments made by this title.
SCORE
Repeal of Active Corporation of Executives
Section 8(b)(1)(B) of the Small Business Act
(15 U.S.C.
637(b)(1)(B)) is amended by striking and an Active Corps
of Executive (ACE)
.
Increasing the proportion of SCORE volunteers from socially and economically disadvantaged backgrounds
Section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)) is amended by adding at the end the following:
The Service Corps of Retired Executives (SCORE) established under subparagraph (B) shall carry out a plan to increase the proportion of mentors who are from socially or economically disadvantaged backgrounds. SCORE shall, on an annual basis, report to the Administrator on the implementation of this subparagraph.
.
Benchmark reporting
Section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)), as amended by section 202, is further amended by adding at the end the following:
The Service Corps of Retired Executives (SCORE) established under subparagraph (B) shall, in consultation with the Administrator, establish benchmarks for use in evaluating the performance of its activities and the performance of its volunteers. The benchmarks shall include benchmarks relating to the demographic characteristics and the geographic characteristics of persons assisted by SCORE, benchmarks relating to the hours spent mentoring by volunteers, and benchmarks relating to the performance of the persons assisted by SCORE. SCORE shall, on an annual basis, report to the Administrator on the extent to which the benchmarks established under this subparagraph are being attained.
.
Passed the House of Representatives June 20, 2007.
Lorraine C. Miller,
Clerk.
June 22, 2007
Read the second time and placed on the calendar