H.R. 1845 – Reading Mode

1.

Short title

This Act may be cited as the Small Business Development Centers Modernization Act of 2009.

2.

Small business development centers operational changes

(a)

Accreditation requirement

Section 21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)) is amended as follows:

(1)

In the proviso, by inserting before institution the following: accredited.

(2)

In the sentence beginning The Administration shall, by inserting before institutions the following: accredited.

(3)

By adding at the end the following new sentence: 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))..

(b)

Program negotiations

Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is amended in the matter preceding subparagraph (A), by inserting before agreed the following: mutually.

(c)

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.

(d)

SBDC hiring

Section 21(c)(2)(A) of the Small Business Act (15 U.S.C. 648(c)(2)(A)) is amended by inserting after full-time staff the following: , the hiring of which shall be at the sole discretion of the center without the need for input or approval from any officer or employee of the Administration.

(e)

Content of consultations

Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 648(a)(7)(A)) is amended in the matter preceding clause (i) by inserting after under this section the following: , or the content of any consultation with such an individual or small business concern,.

(f)

Amounts for administrative expenses

Section 21(a)(4)(C)(v)(I) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(v)(I)) is amended to read as follows:

(I)

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).

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(g)

Non-matching portability grants

Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(viii)) is amended by adding at the end the following: In the event of a disaster, the dollar limitation in the preceding sentence shall not apply..

(h)

Distribution to SBDCs

Section 21(b) of the Small Business Act (15 U.S.C. 648(b)) is amended by adding at the end the following new paragraph:

(4)

Limitation on distribution to small business development centers

(A)

In general

Except as otherwise provided in this paragraph, the Administration 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.

(B)

Unavailability exception

The Administration may distribute funds to a maximum of two Small Business Development Centers in any State if no applicant has applied to serve the entire State.

(C)

Grandfather clause

The limitations in this paragraph shall not apply to any State in which more than one Small Business Development Center received funding prior to January 1, 2007.

(D)

Definition

For the purposes of this paragraph, the term Small Business Development Center means the entity selected by the Administration to receive funds pursuant to the funding formula set forth in subsection (a)(4), without regard to the number of sites for service delivery such entity establishes or funds.

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(i)

Women’s business centers

Section 21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)), as amended, is further amended—

(1)

by striking and women's business centers operating pursuant to section 29; and

(2)

by striking or a women’s business center operating pursuant to section 29.

3.

Access to credit and capital

Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following new subsection:

(o)

Access to credit and capital program

(1)

In general

The Administration shall establish a grant program for small business development centers in accordance with this subsection. To be eligible for the program, a small business development center must be in good standing and comply with the other requirements of this section. Funds made available through the program shall be used to—

(A)

develop specialized programs to assist local small business concerns in securing capital and repairing damaged credit;

(B)

provide informational seminars on securing credit and loans;

(C)

provide one-on-one counseling with potential borrowers to improve financial presentations to lenders; and

(D)

facilitate borrowers’ access to non-traditional financing sources, as well as traditional lending sources.

(2)

Award size limit

The Administration may not award an entity more than $300,000 in grant funds under this subsection.

(3)

Authority

Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out the program established in subsection (a)(1), the Administration may make grants or enter into cooperative agreements to carry out this subsection.

(4)

Authorization

There is authorized to be appropriated not more than $2,500,000 for the purposes of carrying out this subsection for each of the fiscal years 2010 and 2011.

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4.

Procurement training and assistance

Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is further amended by adding at the end the following new subsection:

(p)

Procurement training and assistance

(1)

In general

The Administration shall establish a grant program for small business development centers in accordance with this subsection. To be eligible for the program, a small business development center must be in good standing and comply with the other requirements of this section. Funds made available through the program shall be used to—

(A)

work with local agencies to identify contracts that are suitable for local small business concerns;

(B)

prepare small businesses to be ready as subcontractors and prime contractors for contracts made available under the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) through training and business advisement, particularly in the construction trades; and

(C)

provide technical assistance regarding the Federal procurement process, including assisting small business concerns to comply with federal regulations and bonding requirements.

(2)

Award size limit

The Administration may not award an entity more than $300,000 in grant funds under this subsection.

(3)

Authority

Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out the program established in subsection (a)(1), the Administration may make grants or enter into cooperative agreements to carry out this subsection.

(4)

Authorization of appropriations

There is authorized to be appropriated not more than $2,500,000 for the purposes of carrying out this subsection for each of the fiscal years 2010 and 2011.

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5.

Green entrepreneurs training program

Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is further amended by adding at the end the following new subsection:

(q)

Green entrepreneurs training program

(1)

In general

The Administration shall establish a grant program for small business development centers in accordance with this subsection. To be eligible for the program, a small business development center must be in good standing and comply with the other requirements of this section. Funds made available through the program shall be used to—

(A)

provide education classes and one-on-one instruction in starting a business in the fields of energy efficiency, green technology, or clean technology and in adapting a business to include such fields;

(B)

coordinate such classes and instruction, to the extent practicable, with local community colleges and local professional trade associations;

(C)

assist and provide technical counseling to individuals seeking to start a business in the fields of energy efficiency, green technology, or clean technology and to individuals seeking to adapt a business to include such fields; and

(D)

provide services that assist low-income or dislocated workers to start businesses in the fields of energy efficiency, green technology, or clean technology.

(2)

Award size limit

The Administration may not award an entity more than $300,000 in grant funds under this subsection.

(3)

Authority

Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out the program established in subsection (a)(1), the Administration may make grants or enter into cooperative agreements to carry out this subsection.

(4)

Authorization of appropriations

There is authorized to be appropriated not more than $2,500,000 for the purposes of carrying out this subsection for each of the fiscal years 2010 and 2011.

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6.

Main street stabilization

Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is further amended by adding the following new subsection at the end thereof:

(r)

Main street stabilization

(1)

In general

The Administration shall establish a grant program for small business development centers in accordance with this subsection. To be eligible for the program, a small business development center must be in good standing and comply with the other requirements of this section. Funds made available through the program shall be used to—

(A)

establish a statewide small business helpline within every State and United States territory to provide immediate expert information and assistance to small business concerns;

(B)

develop a portfolio of online survival and growth tools and resources that struggling small business concerns can utilize through the Internet;

(C)

develop business advisory capacity to provide expert consulting and education to assist small businesses at-risk of failure and to, in areas of high demand, shorten the response time of small business development centers, and, in rural areas, support added outreach in remote communities;

(D)

deploy additional resources to help specific industry sectors with a high presence of small business concerns, which shall be targeted toward clusters of small businesses with similar needs and build upon best practices from earlier assistance;

(E)

develop a formal listing of financing options for small business capital access; and

(F)

deliver services that help dislocated workers start new businesses.

(2)

Award size limit

The Administration may not award an entity more than $250,000 in grant funds under this subsection.

(3)

Authority

Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out the program established in subsection (a)(1), the Administration may make grants or enter into cooperative agreements to carry out this subsection.

(4)

Authorization

There is authorized to be appropriated not more than $2,500,000 for the purposes of carrying out this subsection for each of the fiscal years 2010 and 2011.

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7.

Prohibition on program income being used as matching funds

Section 21(a)(4)(B) (15 U.S.C. 648(a)(4)(B)) is amended by inserting after Federal program the following: and shall not include any funds obtained through the assessment of fees to small business clients.

8.

Authorization of appropriations

Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by inserting after subsection (e) the following new subsection:

(f)

Small business development centers

There is authorized to be appropriated to carry out the Small Business Development Center Program under section 21 $150,000,000 for fiscal year 2010 and $160,000,000 for fiscal year 2011.

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9.

Small Manufacturers transition assistance program

Section 21 of the Small Business Act (15 U.S.C. 648), as amended, is further amended by adding at the end the following new subsection:

(s)

Small Manufacturers transition assistance program

(1)

In general

The Administration shall establish a grant program for small business development centers in accordance with this subsection. To be eligible for the program, a small business development center must be in good standing and comply with the other requirements of this section. Funds made available through the program shall be used to—

(A)

provide technical assistance and expertise to small manufacturers with respect to changing operations to another industry sector or reorganizing operations to increase efficiency and profitability;

(B)

assist marketing of the capabilities of small manufacturers outside the principal area of operations of such manufacturers;

(C)

facilitate peer-to-peer and mentor-protege relationships between small manufacturers and corporations and Federal agencies; and

(D)

conduct outreach activities to local small manufacturers with respect to the availability of the services described in subparagraphs (A), (B), and (C).

(2)

Definition of small manufacturer

In this subsection, the term small manufacturer means a small business concern engaged in an industry specified in sector 31, 32, or 33 of the North American Industry Classification System in section 121.201 of title 13, Code of Federal Regulations.

(3)

Award size limit

The Administration may not award an entity more than $250,000 in grant funds under this subsection.

(4)

Authority

Subject to amounts approved in advance in appropriations Acts and separate from amounts approved to carry out the program established in subsection (a)(1), the Administration may make grants or enter into cooperative agreements to carry out this subsection.

(5)

Authorization

There is authorized to be appropriated not more than $2,500,000 for the purposes of carrying out this subsection for each of the fiscal years 2010 and 2011.

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