II
Calendar No. 93
111th CONGRESS
1st Session
S. 1229
[Report No. 111–36]
IN THE SENATE OF THE UNITED STATES
June 10, 2009
Ms. Landrieu (for herself, Ms. Snowe, Mrs. Shaheen, and Mr. Kerry) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
July 2, 2009
Reported under authority of the order of the Senate of June 25, 2009, by Ms. Landrieu, with an amendment
Strike out all after the enacting clause and insert the part printed in italic
A BILL
To reauthorize and improve the entrepreneurial development programs of the Small Business Administration, and for other purposes.
Short title
This Act may be cited as the
Entrepreneurial Development Act of
2009
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I—Reauthorization
Sec. 101. Reauthorization.
TITLE II—Women’s small business ownership programs
Sec. 201. Office of Women’s Business Ownership.
Sec. 202. Women’s Business Center Program.
Sec. 203. National Women’s Business Council.
Sec. 204. Interagency Committee on Women’s Business Enterprise.
Sec. 205. Preserving the independence of the National Women’s Business Council.
Sec. 206. Study and report on women's business centers.
TITLE III—Native American small business development program
Sec. 301. Short title.
Sec. 302. Native American small business development program.
Sec. 303. Study and report on Native American business centers.
Sec. 304. Office of Native American Affairs pilot program.
TITLE IV—Veterans' business center program
Sec. 401. Veterans' business center program; Office of Veterans Business Development.
Sec. 402. Reporting requirement for interagency task force.
Sec. 403. Repeal and renewal of grants.
TITLE V—Program for investment in microentrepreneurs
Sec. 501. PRIME reauthorization.
Sec. 502. Conforming repeal and amendments.
Sec. 503. References.
Sec. 504. Rule of construction.
TITLE VI—Other provisions
Sec. 601. Institutions of higher education.
Sec. 602. Health insurance options information for small business concerns.
Sec. 603. National Small Business Development Center Advisory Board.
Sec. 604. Privacy requirements for SCORE chapters.
Sec. 605. National small business summit.
Sec. 606. SCORE program.
Sec. 607. Assistance to out-of-state small businesses.
Sec. 608. Small business development centers.
Sec. 609. Evaluation of pilot programs.
Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632); and
the term small business development center means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648).
Reauthorization
Reauthorization
In general
Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended—
by redesignating subsection (j) as subsection (f); and
by adding at the end the following:
SCORE program
There are authorized to be appropriated to the Administrator to carry out the SCORE program authorized by section 8(b)(1) such sums as are necessary for the Administrator to make grants or enter into cooperative agreements for a total of—
$10,000,000 in fiscal year 2010;
$11,000,000 in fiscal year 2011; and
$13,000,000 in fiscal year 2012.
.
Small business development centers
Section 21(a)(4)(C)(vii) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(vii)) is amended to read as follows:
Authorization of appropriations
There are authorized to be appropriated to carry out this subparagraph—
$150,000,000 for fiscal year 2010;
$155,000,000 for fiscal year 2011; and
$160,000,000 for fiscal year 2012.
.
Paul D. Coverdell drug-free workplace program
In general
Section 27(g) of the Small Business Act (15 U.S.C. 654(g)) is amended—
in paragraph (1),
by striking fiscal years 2005 and 2006
and inserting
fiscal years 2010 through 2012
; and
in paragraph (2),
by striking fiscal years 2005 and 2006
and inserting
fiscal years 2010 through 2012
.
Conforming amendment
Section 21(c)(3)(T) of the Small Business Act (15
U.S.C. 648(c)(3)(T)) is amended by striking October 1, 2006
and
inserting October 1, 2012
.
Women’s small business ownership programs
Office of Women’s Business Ownership
In general
Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is amended—
in paragraph (2)—
in subparagraph (B)(i), by striking “in the areas” and all that follows through the end of subclause (I), and inserting the following: “to address issues concerning the management, operations, manufacturing, technology, finance, retail and product sales, international trade, Government contracting, and other disciplines required for—
starting, operating, and increasing the business of a small business concern;
; and
in subparagraph
(C), by inserting before the period at the end the following: , the
National Women’s Business Council, and any association of women’s business
centers
; and
by adding at the end the following:
Training
The Administrator may provide annual programmatic and financial oversight training for women’s business ownership representatives and district office technical representatives of the Administration to enable representatives to carry out their responsibilities.
Program and transparency improvements
The Administrator shall maximize the transparency of the women’s business center financial assistance proposal process and the programmatic and financial oversight process by—
providing public notice of the announcement for financial assistance under subsection (b) and grants under subsection (l) not later than the end of the first quarter of each fiscal year;
in the announcement described in subparagraph (A), outlining award and program evaluation criteria and describing the weighting of the criteria for financial assistance under subsection (b) and grants under subsection (l);
minimizing paperwork and reporting requirements for applicants for and recipients of financial assistance under this section;
standardizing the oversight and review process of the Administration; and
providing to each women’s business center, not later than 60 days after the completion of a site visit at the women's business center (whether conducted for an audit, performance review, or other reason), a copy of site visit reports and evaluation reports prepared by district office technical representatives or officers or employees of the Administration.
.
Change of title
In general
Section 29 of the Small Business Act (15 U.S.C. 656) is amended—
in subsection (a)—
by striking paragraphs (1) and (4);
by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively; and
by inserting before paragraph (4), as so redesignated, the following:
the term Director means the Director of the Office of Women's Business Ownership established under subsection (g);
;
by striking
Assistant Administrator
each place it appears and inserting
Director
; and
in subsection
(g)(2), in the paragraph heading, by striking Assistant Administrator
and inserting Director
.
Women's Business Ownership Act of 1988
Title IV of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is amended—
in section
403(a)(2)(B), by striking Assistant Administrator
and inserting
Director
;
in section 405, by
striking Assistant Administrator
and inserting
Director
; and
in section 406(c),
by striking Assistant Administrator
and inserting
Director
.
Women’s Business Center Program
Women’s Business Center financial assistance
Section 29 of the Small Business Act (15 U.S.C. 656) is amended—
in subsection (a)—
by inserting before paragraph (2), as added by section 201(b), the following:
the term association of women’s business centers means an organization—
that represents not less than 51 percent of the women’s business centers that participate in a program under this section; and
whose primary purpose is to represent women’s business centers;
;
by inserting after paragraph (2), as added by section 201(b), the following:
the term eligible entity means—
a private nonprofit organization;
a State, regional, or local economic development organization;
a development, credit, or finance corporation chartered by a State;
a public or private institution of higher education (as that term is used in sections 101 and 102 of the Higher Education Act of 1965 (20 U.S.C. 1001 and 1002)); or
any combination of entities listed in subparagraphs (A) through (D);
; and
by adding after paragraph (5), as redesignated by section 201(b), the following:
the term women's business center means a project conducted by an eligible entity under this section that—
is carried out separately from other projects, if any, of the eligible entity; and
is separate from the financial system of the eligible entity;
.
in subsection (b)—
by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), and adjusting the margins accordingly;
by striking
The Administration
and all that follows through 5-year
project
and inserting the following:
In general
The Administration may provide financial assistance to an eligible entity to conduct a project under this section
;
by striking
The projects shall
and inserting the following:
Use of funds
The project shall be designed to provide training and counseling that meets the needs of women, especially socially and economically disadvantaged women, and shall provide
; and
by adding at the end the following:
Amount of financial assistance
In general
The Administrator may award financial assistance under this subsection of not less than $150,000 per year.
Equal allocations
In the event that the Administration has insufficient funds to provide financial assistance of $150,000 for each recipient of financial assistance under this subsection in any fiscal year, available funds shall be allocated equally to recipients, unless a recipient requests a lower amount than the allocated amount.
Consultation with associations of Women’s Business Centers
The Administrator shall consult with each association of women’s business centers to develop—
a training program for the staff of women’s business centers and the Administration; and
recommendations to improve the policies and procedures for governing the general operations and administration of the Women’s Business Center program, including grant program improvements under subsection (g)(5).
;
in subsection (c)—
in paragraph (1)
by striking the recipient organization
and inserting an
eligible entity
;
in paragraph (3),
in the second sentence, by striking a recipient organization
and
inserting an eligible entity
; and
in paragraph (4)—
by striking
recipient
each place it appears and inserting eligible
entity
; and
by striking
such organization
and inserting the eligible
entity
;
in subsection (e)—
by striking
applicant organization
and inserting eligible
entity
;
by striking
a recipient organization
and inserting an eligible
entity
; and
by striking
site
;
by striking subsection (f) and inserting the following:
Applications and criteria for initial financial assistance
Application
Each eligible entity desiring financial assistance under subsection (b) shall submit to the Administrator an application that contains—
a certification that the eligible entity—
has designated an executive director or program manager, who may be compensated from financial assistance under subsection (b) or other sources, to manage the center on a full-time basis; and
as a condition of receiving financial assistance under subsection (b), agrees—
to receive a site visit by the Administrator as part of the final selection process;
to undergo an annual programmatic and financial review; and
to the maximum extent practicable, to remedy any problems identified pursuant to the site visit or review under subclause (I) or (II);
meets the accounting and reporting requirements established by the Director of the Office of Management and Budget;
information demonstrating that the eligible entity has the ability and resources to meet the needs of the market to be served by the women's business center for which financial assistance under subsection (b) is sought, including the ability to obtain the non-Federal contribution required under subsection (c);
information relating to the assistance to be provided by the women's business center for which financial assistance under subsection (b) is sought in the area in which the women's business center site is located;
information demonstrating the experience and effectiveness of the eligible entity in—
conducting financial, management, and marketing assistance programs, as described under subsection (b)(2), which are designed to teach or upgrade the business skills of women who are business owners or potential business owners;
providing training and services to a representative number of women who are socially and economically disadvantaged; and
using resource partners of the Administration and other entities, such as universities; and
a 5-year plan that describes the ability of the women's business center for which financial assistance is sought—
to serve women who are business owners or potential owners by conducting training and counseling activities; and
to provide training and services to a representative number of women who are socially and economically disadvantaged.
Additional information
The Administrator shall make any request for additional information from an organization applying for financial assistance under subsection (b) that was not requested in the original announcement in writing.
Review and approval of applications for initial financial assistance
In general
The Administrator shall—
review each application submitted under paragraph (1), based on the information described in such paragraph and the criteria set forth under subparagraph (B) of this paragraph; and
to the extent practicable, as part of the final selection process, conduct a site visit at each women's business center for which financial assistance under subsection (b) is sought.
Selection criteria
In general
The Administrator shall evaluate applicants for financial assistance under subsection (b) in accordance with selection criteria that are—
established before the date on which applicants are required to submit the applications;
stated in terms of relative importance; and
publicly available and stated in each solicitation for applications for financial assistance under subsection (b) made by the Administrator.
Required criteria
The selection criteria for financial assistance under subsection (b) shall include—
the experience of the applicant in conducting programs or ongoing efforts designed to teach or enhance the business skills of women who are business owners or potential business owners;
the ability of the applicant to commence a project within a minimum amount of time;
the ability of the applicant to provide training and services to a representative number of women who are socially and economically disadvantaged; and
the location for the women's business center site proposed by the applicant, including whether the applicant is located in a State in which there is not a women's business center receiving funding from the Administration.
Proximity
If the principal place of business of an applicant for financial assistance under subsection (b) is located less than 50 miles from the principal place of business of a women’s business center that received funds under this section on or before the date of the application, the applicant shall not be eligible for the financial assistance, unless the applicant submits a detailed written justification of the need for an additional center in the area in which the applicant is located.
Record retention
The Administrator shall maintain a copy of each application submitted under this subsection for not less than 7 years.
; and
in subsection (m), by striking paragraph (3) and inserting the following:
Application and approval for renewal grants
Application
Each eligible entity desiring a grant under this subsection shall submit to the Administrator an application that contains—
a certification that the applicant—
is a private nonprofit organization;
has designated a full-time executive director or program manager to manage the women's business center operated by the applicant; and
as a condition of receiving a grant under this subsection, agrees—
to receive a site visit as part of the final selection process;
to submit, for the 2 full fiscal years before the date on which the application is submitted, annual programmatic and financial review reports or certified copies of the compliance supplemental audits under OMB Circular A–133 of the applicant; and
to remedy any problem identified pursuant to the site visit or review under item (aa) or (bb);
information demonstrating that the applicant has the ability and resources to meet the needs of the market to be served by the women's business center for which a grant under this subsection is sought, including the ability to ability to obtain the non-Federal contribution required under paragraph (4)(C);
information relating to assistance to be provided by the women's business center for which a grant under this subsection is sought in the area of the women's business center site;
information demonstrating the use of resource partners of the Administration and other entities;
a 3-year plan that describes the ability of the women's business center for which a grant under this subsection is sought—
to serve women who are business owners or potential business owners by conducting training and counseling activities; and
to provide training and services to a representative number of women who are socially and economically disadvantaged; and
any additional information that the Administrator may reasonably require.
Review and approval of applications for grants
In general
The Administrator shall—
review each application submitted under subparagraph (A), based on the information described in such subparagraph and the criteria set forth under clause (ii) of this subparagraph; and
whenever practicable, as part of the final selection process, conduct a site visit at each women's business center for which a grant under this subsection is sought.
Selection criteria
In general
The Administrator shall evaluate applicants for grants under this subsection in accordance with selection criteria that are—
established before the date on which applicants are required to submit the applications;
stated in terms of relative importance; and
publicly available and stated in each solicitation for applications for grants under this subsection made by the Administrator.
Required criteria
The selection criteria for a grant under this subsection shall include—
the total number of entrepreneurs served by the applicant;
the total number of new start-up companies assisted by the applicant;
the percentage of the clients of the applicant that are socially or economically disadvantaged; and
the percentage of individuals in the community served by the applicant who are socially or economically disadvantaged.
Conditions for continued funding
In determining whether to make a grant under this subsection, the Administrator—
shall consider the results of the most recent evaluation of the women's business center for which a grant under this subsection is sought, and, to a lesser extent, previous evaluations; and
may withhold a grant under this subsection, if the Administrator determines that the applicant has failed to provide the information required to be provided under this paragraph, or the information provided by the applicant is inadequate.
Notification
Not later than 60 days after the date of the deadline to submit applications for each fiscal year, the Administrator shall approve or deny any application under this paragraph and notify the applicant for each such application.
Record retention
The Administrator shall maintain a copy of each application submitted under this paragraph for not less than 7 years.
.
Technical and conforming Amendments
Section 29 of the Small Business Act (15 U.S.C. 656) is amended—
in subsection
(h)(2), by striking to award a contract (as a sustainability grant)
under subsection (l) or
;
in subsection
(j)(1), by striking The Administration
and inserting Not
later than November 1st of each year, the Administrator
;
in subsection (k)—
by striking paragraphs (1), (2), and (4);
by redesignating paragraph (3) as paragraph (5); and
by inserting before paragraph (5), as so redesignated, the following:
In general
There are authorized to be appropriated to the Administration to carry out this section, to remain available until expended—
$20,000,000 for fiscal year 2010;
$20,500,000 for fiscal year 2011; and
$21,000,000 for fiscal year 2012.
Allocation
Of amounts made available pursuant to paragraph (1), the Administrator shall use not less than 50 percent for grants under subsection (l).
Use of amounts
Amounts made available under this subsection may only be used for grant awards and may not be used for costs incurred by the Administration in connection with the management and administration of the program under this section.
Continuing grant and cooperative agreement authority
In general
The authority of the Administrator to provide financial assistance under this section shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts.
Prompt disbursement
Upon receiving funds to carry out this section for a fiscal year, the Administrator shall, to the extent practicable, promptly reimburse funds to any women’s business center awarded financial assistance under this section if the center meets the eligibility requirements under this section.
Renewal
After the Administrator has entered into a grant or cooperative agreement with any women's business center under this section, the Administrator shall not suspend, terminate, or fail to renew or extend any such grant or cooperative agreement, unless the Administrator—
provides the women's business center with written notification setting forth the reasons for that action; and
affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.
;
in subsection
(m)(4)(D), by striking or subsection (l)
; and
by redesignating subsections (m) and (n), as amended by this Act, as subsections (l) and (m), respectively.
National Women’s Business Council
Membership
Section 407(f) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107(f)) is amended by adding at the end the following:
Representation of member organizations
In consultation with the chairperson of the Council and the Administrator, a national women's business organization or small business concern that is represented on the Council may replace its representative member on the Council during the service term to which that member was appointed.
.
Authorization of Appropriations
Section 410(a) of the Women’s Business Ownership
Act of 1988 (15 U.S.C. 7110(a)) is amended by striking 2001 through
2003, of which $550,000
and inserting 2010 through 2012, of
which not less than 30 percent
.
Interagency Committee on Women’s Business Enterprise
Chairperson
Section 403(b) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7103(b)) is amended—
by striking
Not later
and inserting the following:
In general
Not later
; and
by adding at the end the following:
Vacancy
In the event that a chairperson is not appointed under paragraph (1), the Deputy Administrator of the Small Business Administration shall serve as acting chairperson of the Interagency Committee until a chairperson is appointed under paragraph (1).
.
Policy Advisory Group
Section 401 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101) is amended—
by striking
There
and inserting the following:
Establishment of Committee
There
; and
by adding at the end the following:
Policy Advisory Group
Establishment
There is established a Policy Advisory Group within the Interagency Committee to assist the chairperson in developing policies and programs under this Act.
Membership
The Policy Advisory Group shall be composed of 7 policy making officials, of whom—
1 shall be a representative of the Small Business Administration;
1 shall be a representative of the Department of Commerce;
1 shall be a representative of the Department of Labor;
1 shall be a representative of the Department of Defense;
1 shall be a representative of the Department of the Treasury; and
2 shall be representatives of the Council.
Meetings
The Policy Advisory Group established under paragraph (1) shall meet not less frequently than 3 times each year to—
plan activities for the new fiscal year;
track year-to-date agency contracting activities; and
evaluate the progress during the fiscal year and prepare an annual report.
.
Preserving the independence of the National Women’s Business Council
Findings
Congress finds the following:
The National Women’s Business Council provides an independent source of advice and policy recommendations regarding women’s business development and the needs of women entrepreneurs in the United States to—
the President;
Congress;
the Interagency Committee on Women’s Business Enterprise; and
the Administrator.
The members of the National Women’s Business Council are small business owners, representatives of business organizations, and representatives of women’s business centers.
The chairman and ranking member of the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives make recommendations to the Administrator to fill 8 of the positions on the National Women’s Business Council. Four of the positions are reserved for small business owners who are affiliated with the political party of the President, and 4 of the positions are reserved for small business owners who are not affiliated with the political party of the President. This method of appointment ensures that the National Women’s Business Council will provide Congress with nonpartisan, balanced, and independent advice.
In order to maintain the independence of the National Women’s Business Council and to ensure that the Council continues to provide the President, the Interagency Committee on Women’s Business Enterprise, the Administrator, and Congress with advice on a nonpartisan basis, it is essential that the Council maintain the bipartisan balance established under section 407 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107).
Maintenance of Partisan Balance
Section 407(f) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107(f)), as amended by this Act, is amended by adding at the end the following:
Partisan balance
When filling a vacancy under paragraph (1) of this subsection of a member appointed under paragraph (1) or (2) of subsection (b), the Administrator shall, to the extent practicable, ensure that there are an equal number of members on the Council from each of the 2 major political parties.
Accountability
If a vacancy is not filled within the 30-day period required under paragraph (1), or if there is an imbalance in the number of members on the Council from each of the 2 major political parties for a period exceeding 30 days, the Administrator shall submit a report, not later than 10 days after the expiration of either such 30-day deadline, to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, that explains why the respective deadline was not met and provides an estimated date on which any vacancies will be filled, as applicable.
.
Study and report on women's business centers
In general
The Comptroller General of the United States shall conduct a broad study of the unique economic issues facing women's business centers located in covered areas to identify—
the difficulties such centers face in raising non-Federal funds;
the difficulties such centers face competing for financial assistance, non-Federal funds, or other types of assistance;
the difficulties such centers face in writing grant proposals; and
other difficulties such centers face because of the economy in the type of covered area in which such centers are located.
Report
Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to Congress a report regarding the results of the study conducted under subsection (a), which shall include recommendations, if any, regarding how to—
address the unique difficulties women's business centers located in covered areas face because of the type of covered area in which such centers are located;
expand the presence of, and increase the services provided by, women's business centers located in covered areas; and
best use technology and other resources to better serve women business owners located in covered areas.
Definition of covered area
In this section, the term covered area means—
any State that is predominantly rural, as determined by the Administrator;
any State that is predominantly urban, as determined by the Administrator; and
any State or territory that is an island.
Native American small business development program
Short title
This title may be cited
as the Native American Small Business
Development Act of 2009
.
Native American small business development program
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating section 44 as section 45; and
by inserting after section 43 the following:
Native American small business development program
Definitions
In this section—
the term Alaska Native has the meaning given the term Native in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b));
the term Alaska Native corporation has the meaning given the term Native Corporation in section 3(m) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
the term Assistant Administrator means the Assistant Administrator of the Office of Native American Affairs established under subsection (b);
the terms center and Native American business center mean a center established under subsection (c);
the term eligible applicant means—
an Indian tribe;
a tribal college;
an Alaska Native corporation; or
a private, nonprofit organization—
that provides business and financial or procurement technical assistance to any entity described in subparagraph (A), (B), or (C); and
the majority of members of the board of directors of which are members of an Indian tribe; or
a small business development center, women's business center, or other private organization participating in a joint project;
the term Indian means a member of an Indian tribe;
the term Indian tribe has the meaning given that term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b);
the term joint project means a project that—
combines the resources and expertise of 2 or more distinct entities at a physical location dedicated to assisting the Native American community; and
submits to the Administration a joint application that contains—
a certification that each participant of the project—
is an eligible applicant;
employs an executive director or program manager to manage the center; and
provides information demonstrating a record of commitment to providing assistance to Native Americans and;
information demonstrating that the participants in the joint project have the ability and resources to meet the needs, including the cultural needs, of the Native Americans to be served by the project;
the term Native American Business Enterprise Center means an entity providing business development assistance to federally recognized tribes and Native Americans under a grant from the Minority Business Development Agency of the Department of Commerce;
the term Native American small business concern means a small business concern that is owned and controlled by—
a member of an Indian tribe; or
an Alaska Native or Alaska Native corporation;
the term Native American small business development program means the program established under subsection (c);
the term tribal college has the meaning given the term tribally controlled college or university has in section 2(a)(4) of the Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801(a)(4)); and
the term tribal lands means all lands within the exterior boundaries of any Indian reservation.
Office of Native American Affairs
Establishment
There is established within the Administration the Office of Native American Affairs, which, under the direction of the Assistant Administrator, shall implement the programs of the Administration for the development of business enterprises by Native Americans.
Purpose
The purpose of the Office of Native American Affairs is to assist Native American entrepreneurs to—
start, operate, and increase the business of small business concerns;
develop management and technical skills;
seek Federal procurement opportunities;
increase employment opportunities for Native Americans through the establishment and expansion of small business concerns; and
increase the access of Native Americans to capital markets.
Assistant Administrator
Appointment
The Administrator shall appoint a qualified individual to serve as Assistant Administrator of the Office of Native American Affairs in accordance with this paragraph.
Qualifications
The Assistant Administrator appointed under subparagraph (A) shall have—
knowledge of Native American culture; and
experience providing culturally tailored small business development assistance to Native Americans.
Employment status
The Administrator shall establish the position of Assistant Administrator as—
a position at GS–15 of the General Schedule; or
a Senior Executive Service position to be filled by a noncareer appointee, as defined under section 3132(a)(7) of title 5, United States Code.
Responsibilities and duties
The Assistant Administrator shall—
in consultation with the Associate Administrator for Entrepreneurial Development, administer and manage the Native American Small Business Development program established under this section;
recommend the annual administrative and program budgets for the Office of Native American Affairs;
consult with Native American business centers in carrying out the program established under this section;
recommend appropriate funding levels;
review the annual budgets submitted by each applicant for the Native American Small Business Development program;
select applicants to participate in the program under this section;
implement this section; and
maintain a clearinghouse for the dissemination and exchange of information between Native American business centers.
Consultation requirements
In carrying out the responsibilities and duties described in this paragraph, the Assistant Administrator shall confer with and seek the advice of—
officials of the Administration working in areas served by Native American business centers;
representatives of Indian tribes;
tribal colleges; and
Alaska Native corporations.
Native American small business development program
Authorization
In general
The Administration, through the Office of Native American Affairs, shall provide financial assistance to eligible applicants to create Native American business centers in accordance with this section.
Use of funds
The financial and resource assistance provided under this subsection shall be used to establish a Native American business center to overcome obstacles impeding the creation, development, and expansion of small business concerns, in accordance with this section, by—
reservation-based American Indians; and
Alaska Natives.
5-Year projects
In general
Each Native American business center that receives assistance under paragraph (1)(A) shall conduct a 5-year project that offers culturally tailored business development assistance in the form of—
financial education, including training and counseling in—
applying for and securing business credit and investment capital;
preparing and presenting financial statements; and
managing cash flow and other financial operations of a business concern;
management education, including training and counseling in planning, organizing, staffing, directing, and controlling each major activity and function of a small business concern; and
marketing education, including training and counseling in—
identifying and segmenting domestic and international market opportunities;
preparing and executing marketing plans;
developing pricing strategies;
locating contract opportunities;
negotiating contracts; and
utilizing varying public relations and advertising techniques.
Business development assistance recipients
The business development assistance under subparagraph (A) shall be offered to prospective and current owners of small business concerns that are owned by—
Indians or Indian tribes, and located on or near tribal lands; or
Alaska Natives or Alaska Native corporations.
Form of Federal financial assistance
Documentation
In general
The financial assistance to Native American business centers authorized under this subsection may be made by grant, contract, or cooperative agreement.
Exception
Financial assistance under this subsection to Alaska Native corporations may only be made by grant or cooperative agreement.
Payments
Timing
Payments made under this subsection may be disbursed in periodic installments, at the request of the recipient.
Advance
The Administrator may disburse not more than 25 percent of the annual amount of Federal financial assistance awarded to a Native American small business center after notice of the award has been issued.
Federal share
In general
Initial financial assistance
Except as provided in subclause (II), an eligible applicant that receives financial assistance under this subsection shall provide non-Federal contributions for the operation of the Native American business center established by the eligible applicant in an amount equal to—
in each of the first and second years of the project, not less than 33 percent of the amount of the financial assistance received under this subsection; and
in each of the third through fifth years of the project, not less than 50 percent of the amount of the financial assistance received under this subsection.
Renewals
An eligible applicant that receives a renewal of financial assistance under this subsection shall provide non-Federal contributions for the operation of a Native American business center established by the eligible applicant in an amount equal to not less than 50 percent of the amount of the financial assistance received under this subsection.
Contract and cooperative agreement authority
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 underserved small business concerns located on or near tribal lands, to the extent that such contract or cooperative agreement is consistent with and does not duplicate the terms of any assistance received by the Native American business center from the Administration.
Application process
Submission of a 5-year plan
Each applicant for assistance under paragraph (1) shall submit a 5-year plan to the Administration on proposed assistance and training activities.
Criteria
In general
The Administrator shall evaluate applicants for financial assistance under this subsection in accordance with selection criteria that are—
established before the date on which eligible applicants are required to submit the applications;
stated in terms of relative importance; and
publicly available and stated in each solicitation for applications for financial assistance under this subsection made by the Administrator.
Considerations
The criteria required by this subparagraph shall include—
the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of current or potential owners of Native American small business concerns;
the ability of the applicant to commence a project within a minimum amount of time;
the ability of the applicant to provide quality training and services to a significant number of Native Americans;
previous assistance from the Administration to provide services in Native American communities;
the proposed location for the Native American business center, with priority given based on the proximity of the center to the population being served and to achieve a broad geographic dispersion of the centers; and
demonstrated experience in providing technical assistance, including financial, marketing, and management assistance.
Conditions for participation
Each eligible applicant desiring a grant under this subsection shall submit an application to the Administrator that contains—
a certification that the applicant—
is an eligible applicant;
employs an executive director or program manager to manage the Native American business center; and
agrees—
to a site visit by the Administrator as part of the final selection process;
to an annual programmatic and financial examination; and
to the maximum extent practicable, to remedy any problems identified pursuant to that site visit or examination;
information demonstrating that the applicant has the ability and resources to meet the needs, including cultural needs, of the Native Americans to be served by the grant;
information relating to proposed assistance that the grant will provide, including—
the number of individuals to be assisted; and
the number of hours of counseling, training, and workshops to be provided;
information demonstrating the effectiveness and experience of the applicant in—
conducting financial, management, and marketing assistance programs designed to educate or improve the business skills of, current or prospective Native American business owners;
providing training and services to a representative number of Native Americans;
using resource partners of the Administration and other entities, including universities, Indian tribes, or tribal colleges; and
the prudent management of finances and staffing;
the location where the applicant will provide training and services to Native Americans;
a 5-year plan that describes—
the number of Native Americans and Native American small business concerns to be served by the grant;
if the Native American business center is located in the continental United States, the number of Native Americans to be served by the grant; and
the training and services to be provided to a representative number of Native Americans; and
if the applicant is a joint project—
a certification that each participant in the joint project is an eligible applicant;
information demonstrating a record of commitment to providing assistance to Native Americans; and
information demonstrating that the participants in the joint project have the ability and resources to meet the needs, including the cultural needs, of the Native Americans to be served by the grant.
Review of applications
The Administrator shall approve or disapprove each completed application submitted under this subsection not later than 60 days after the date on which the eligible applicant submits the application.
Program examination
In general
Each Native American business center established under this subsection shall annually provide to the Administrator an itemized cost breakdown of actual expenditures made during the preceding year.
Administration action
Based on information received under subparagraph (A), the Administration shall—
develop and implement an annual programmatic and financial examination of each Native American business center assisted pursuant to this subsection; and
analyze the results of each examination conducted under clause (i) to determine the programmatic and financial viability of each Native American business center.
Conditions for continued funding
In determining whether to renew a grant, contract, or cooperative agreement with a Native American business center, the Administration—
shall consider the results of the most recent examination of the center under subparagraph (B), and, to a lesser extent, previous examinations; and
may withhold such renewal, if the Administrator determines that—
the center has failed to provide the information required to be provided under subparagraph (A), or the information provided by the center is inadequate;
the center has failed to provide adequate information required to be provided by the center for purposes of the report of the Administrator under subparagraph (E);
the center has failed to comply with a requirement for participation in the Native American small business development program, as determined by the Administrator, including—
failure to acquire or properly document a non-Federal share;
failure to establish an appropriate partnership or program for marketing and outreach to reach new Native American small business concerns;
failure to achieve results described in a financial assistance agreement; and
failure to provide to the Administrator a description of the amount and sources of any non-Federal funding received by the center;
the center has failed to carry out the 5-year plan under in paragraph (6)(F); or
the center cannot make the certification described in paragraph (6)(A).
Continuing contract and cooperative agreement authority
In general
The authority of the Administrator to enter into contracts or cooperative agreements in accordance with this subsection shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts.
Renewal
After the Administrator has entered into a contract or cooperative agreement with any Native American business center under this subsection, the Administrator may not suspend, terminate, or fail to renew or extend any such contract or cooperative agreement unless the Administrator provides the center with written notification setting forth the reasons therefor and affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.
Management report
In general
The Administration shall prepare and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an annual report on the effectiveness of all projects conducted by Native American business centers under this subsection and any pilot programs administered by the Office of Native American Affairs.
Contents
Each report submitted under clause (i) shall include, with respect to each Native American business center receiving financial assistance under this subsection—
the number of individuals receiving assistance from the Native American business center;
the number of startup business concerns created with the assistance of the Native American business center;
the number of existing businesses in the area served by the Native American business center seeking to expand employment;
the number of jobs created or maintained, on an annual basis, by Native American small business concerns assisted by the center since receiving funding under this Act;
to the maximum extent practicable, the amount of the capital investment and loan financing used by emerging and expanding businesses that were assisted by a Native American business center; and
the most recent examination, as required under subparagraph (B), and the determination made by the Administration under that subparagraph.
Annual report
Each Native American business center receiving financial assistance under this subsection shall submit to the Administrator an annual report on the services provided with the financial assistance, including—
the number of individuals assisted, categorized by ethnicity;
the number of hours spent providing counseling and training for those individuals;
the number of startup small business concerns created or maintained with the assistance of the Native American business center;
the gross receipts of small business concerns assisted by the Native American business center;
the number of jobs created or maintained by small business concerns assisted by the Native American business center; and
the number of jobs for Native Americans created or maintained at small business concerns assisted by the Native American business center.
Record retention
Applications
The Administrator shall maintain a copy of each application submitted under this subsection for not less than 7 years.
Annual reports
The Administrator shall maintain copies of the certification submitted under paragraph (6)(A) indefinitely.
Authorization of appropriations
There is authorized to be appropriated $10,000,000 for each of fiscal years 2010 through 2012, to carry out the Native American Small Business Development program.
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Study and report on Native American business centers
In general
The Comptroller General of the United States shall conduct a broad study of the unique economic issues facing Native American business centers to identify—
the difficulties such centers face in raising non-Federal funds;
the difficulties such centers face competing for financial assistance, non-Federal funds, or other types of assistance;
the difficulties such centers face in writing grant proposals; and
other difficulties such centers face because of the economy in the area in which such centers are located.
Report
Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to Congress a report regarding the results of the study conducted under subsection (a), which shall include recommendations, if any, regarding how to—
address the unique difficulties Native American business centers face because of the type of area in which such centers are located;
expand the presence of, and increase the services provided by, Native American business centers; and
best use technology and other resources to better serve Native American business owners.
Definition of Native American business center
In this section, the term Native American business center has the meaning given that term in section 44(a) of the Small Business Act, as added by this Act.
Office of Native American Affairs pilot program
Definition
In this section, the term Indian tribe means any band, nation, or organized group or community of Indians located in the contiguous United States, and the Metlakatla Indian Community, whose members are recognized as eligible for the services provided to Indians by the Secretary of the Interior because of their status as Indians.
Authorization
The Office of Native American Affairs of the Administration may conduct a pilot program—
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
to provide assistance to Indian tribes, through an interagency working group, in identifying and implementing economic development opportunities available from the Federal Government and private enterprise, including—
the Administration;
the Department of Energy;
the Environmental Protection Agency;
the Department of Commerce;
the Federal Communications Commission;
the Department of Justice;
the Department of Labor;
the Office of National Drug Control Policy; and
the Department of Agriculture.
Termination of program
The authority to conduct a pilot program under this section shall terminate on September 30, 2012.
Report
Not later than September 30, 2012, the Office of Native American Affairs shall submit a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the effectiveness of the self-assessment tool developed under subsection (b)(1).
Veterans' business center program
Veterans' business center program; Office of Veterans Business Development
In general
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by striking subsection (f) and inserting the following:
Online coordination
Definition
In this subsection, the term veterans' assistance provider means—
a veterans' business center established under subsection (g);
an employee of the Administration assigned to the Office of Veterans Business Development; and
a veterans business ownership representative designated under subsection (g)(13)(B).
Establishment
The Associate Administrator shall establish an online mechanism to—
provide information that assists veterans' assistance providers in carrying out the activities of the veterans' assistance providers; and
coordinate and leverage the work of the veterans' assistance providers, including by allowing a veterans' assistance provider to—
distribute best practices and other materials;
communicate with other veterans' assistance providers regarding the activities of the veterans' assistance provider on behalf of veterans; and
pose questions to and request input from other veterans' assistance providers.
Veterans' Business Center Program
Definitions
In this subsection—
the term active duty has the meaning given that term in section 101 of title 10, United States Code;
the term private nonprofit organization means an entity that is described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code;
the term Reservist means a member of a reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code;
the term Service Corps of Retired Executives means the Service Corps of Retired Executives authorized under section 8(b)(1);
the term small business concern owned and controlled by veterans—
has the same meaning as in section 3(q); and
includes a small business concern—
not less than 51 percent of which is owned by one or more spouses of veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more spouses of veterans; and
the management and daily business operations of which are controlled by one or more spouses of veterans;
the term spouse, relating to a veteran, service-disabled veteran, or Reservist, includes an individual who is the spouse of a veteran, service-disabled veteran, or Reservist on the date on which the veteran, service-disabled veteran, or Reservist died;
the term veterans' business center program means the program established under paragraph (2)(A); and
the term women’s business center means a women’s business center described in section 29.
Program Established
In general
The Administrator, acting through the Associate Administrator, shall establish a veterans' business center program, under which the Associate Administrator may provide financial assistance to a private nonprofit organization to conduct a 5-year project for the benefit of small business concerns owned and controlled by veterans, which may be renewed for one or more additional 5-year periods.
Form of Financial Assistance
Financial assistance under this subsection may be in the form of a grant, a contract, or a cooperative agreement.
Veterans' business centers
Each private nonprofit organization that receives financial assistance under this subsection shall establish or operate a veterans' business center (which may include establishing or operating satellite offices in the region described in paragraph (5) served by that private nonprofit organization) that provides to veterans (including service-disabled veterans), Reservists, and the spouses of veterans (including service-disabled veterans) and Reservists—
financial advice, including training and counseling on applying for and securing business credit and investment capital, preparing and presenting financial statements, and managing cash flow and other financial operations of a small business concern;
management advice, including training and counseling on the planning, organization, staffing, direction, and control of each major activity and function of a small business concern;
marketing advice, including training and counseling on identifying and segmenting domestic and international market opportunities, preparing and executing marketing plans, developing pricing strategies, locating contract opportunities, negotiating contracts, and using public relations and advertising techniques; and
advice, including training and counseling, for Reservists and the spouses of Reservists.
Application
In general
A private nonprofit organization desiring to receive financial assistance under this subsection shall submit an application to the Associate Administrator at such time and in such manner as the Associate Administrator may require.
5-year plan
Each application described in subparagraph (A) shall include a 5-year plan on proposed fundraising and training activities relating to the veterans' business center.
Determination and Notification
Not later than 60 days after the date on which a private nonprofit organization submits an application under subparagraph (A), the Associate Administrator shall approve or deny the application and notify the applicant of the determination.
Availability of application
The Associate Administrator shall make every effort to make the application under subparagraph (A) available online.
Eligibility
The Associate Administrator may select to receive financial assistance under this subsection—
a Veterans Business Outreach Center established by the Administrator under section 8(b)(17) on or before the day before the date of enactment of this subsection;
a private nonprofit organization that—
received financial assistance in fiscal year 2006 from the National Veterans Business Development Corporation established under section 33; and
is in operation on the date of enactment of this subsection; or
other private nonprofit organizations located in various regions of the United States, as the Associate Administrator determines is appropriate.
Selection criteria
In general
The Associate Administrator shall establish selection criteria, stated in terms of relative importance, to evaluate and rank applicants under paragraph (5)(C) for financial assistance under this subsection.
Criteria
The selection criteria established under this paragraph shall include—
the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of veterans, and the spouses of veterans, who own or may own small business concerns;
for an applicant for initial financial assistance under this subsection—
the ability of the applicant to begin operating a veterans' business center within a minimum amount of time; and
the geographic region to be served by the veterans business center;
the demonstrated ability of the applicant to—
provide managerial counseling and technical assistance to entrepreneurs; and
coordinate services provided by veterans services organizations and other public or private entities; and
for any applicant for a renewal of financial assistance under this subsection, the results of the most recent examination under paragraph (10) of the veterans' business center operated by the applicant.
Criteria publicly available
The Associate Administrator shall—
make publicly available the selection criteria established under this paragraph; and
include the criteria in each solicitation for applications for financial assistance under this subsection.
Amount of assistance
The amount of financial assistance provided under this subsection to a private nonprofit organization for each fiscal year shall be—
not less than $150,000; and
not more than $200,000.
Federal share
In general
Initial financial assistance
Except as provided in clause (ii), a private nonprofit organization that receives financial assistance under this subsection shall provide non-Federal contributions for the operation of the veterans business center established by the private nonprofit organization in an amount equal to—
in each of the first and second years of the project, not less than 33 percent of the amount of the financial assistance received under this subsection; and
in each of the third through fifth years of the project, not less than 50 percent of the amount of the financial assistance received under this subsection.
Renewals
A private nonprofit organization that receives a renewal of financial assistance under this subsection shall provide non-Federal contributions for the operation of the veterans business center established by the private nonprofit organization in an amount equal to not less than 50 percent of the amount of the financial assistance received under this subsection .
Form of non-federal share
Not more than 50 percent of the non-Federal share for a project carried out using financial assistance under this subsection may be in the form of in-kind contributions.
Timing of disbursement
The Associate Administrator may disburse not more than 25 percent of the financial assistance awarded to a private nonprofit organization before the private nonprofit organization obtains the non-Federal share required under this paragraph with respect to that award.
Failure to obtain non-federal funding
In general
If a private nonprofit organization that receives financial assistance under this subsection fails to obtain the non-Federal share required under this paragraph during any fiscal year, the private nonprofit organization may not receive a disbursement under this subsection in a subsequent fiscal year or a disbursement for any other project funded by the Administration, unless the Administrator makes a written determination that the private nonprofit organization will be able to obtain a non-Federal contribution.
Restoration
A private nonprofit organization prohibited from receiving a disbursement under clause (i) in a fiscal year may receive financial assistance in a subsequent fiscal year if the organization obtains the non-Federal share required under this paragraph for the subsequent fiscal year.
Contract authority
A veterans' business center may enter into a contract with a Federal department or agency to provide specific assistance to veterans, service-disabled veterans, Reservists, or the spouses of veterans, service-disabled veterans, or Reservists. Performance of such contract shall not hinder the veterans' business center in carrying out the terms of the grant received by the veterans' business centers from the Administrator.
Examination and determination of viability
Examination
In general
The Associate Administrator shall conduct an annual examination of the programs and finances of each veterans' business center established or operated using financial assistance under this subsection.
Factors
In conducting the examination under clause (i), the Associate Administrator shall consider whether the veterans business center has failed—
to provide the information required to be provided under subparagraph (B), or the information provided by the center is inadequate;
the center has failed to comply with a requirement for participation in the veterans' business center program, as determined by the Assistant Administrator, including—
failure to acquire or properly document a non-Federal share;
failure to establish an appropriate partnership or program for marketing and outreach to small business concerns;
failure to achieve results described in a financial assistance agreement; and
failure to provide to the Administrator a description of the amount and sources of any non-Federal funding received by the center;
to carry out the 5-year plan under in paragraph (4)(B); or
to meet the eligibility requirements under paragraph (5).
Information provided
In the course of an examination under subparagraph (A), the veterans' business center shall provide to the Associate Administrator—
an itemized cost breakdown of actual expenditures for costs incurred during the most recent full fiscal year;
documentation of the amount of non-Federal contributions obtained and expended by the veterans' business center during the most recent full fiscal year; and
with respect to any in-kind contribution under paragraph (8)(B), verification of the existence and valuation of such contributions.
Determination of viability
The Associate Administrator shall analyze the results of each examination under this paragraph and, based on that analysis, make a determination regarding the viability of the programs and finances of each veterans' business center.
Discontinuation of funding
In general
The Associate Administrator may discontinue an award of financial assistance to a private nonprofit organization at any time if the Associate Administrator determines under subparagraph (C) that the veterans' business center operated by that organization is not viable.
Restoration
The Associate Administrator may continue to provide financial assistance to a private nonprofit organization in a subsequent fiscal year if the Associate Administrator determines under subparagraph (C) that the veterans' business center is viable.
Privacy requirements
In general
Except as provided in subparagraph (B), a veterans' business center established or operated using financial assistance provided under this subsection may not disclose the name, address, or telephone number of any individual or small business concern that receives advice from the veterans' business center without the consent of the individual or small business concern.
Exception
A veterans' business center may disclose information described in subparagraph (A)—
if the Administrator or Associate Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or
to the extent that the Administrator or Associate Administrator determines that such a disclosure is necessary to conduct a financial audit of a veterans' business center.
Administration use of information
This paragraph does not—
restrict access by the Administrator to program activity data; or
prevent the Administrator from using information not described in subparagraph (A) to conduct surveys of individuals or small business concerns that receive advice from a veterans' business center.
Regulations
The Administrator shall issue regulations to establish standards for requiring disclosures under subparagraph (B)(ii).
Report
In general
Not later than 60 days after the end of each fiscal year, the Associate Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effectiveness of the veterans' business center program in each region during the most recent full fiscal year.
Contents
Each report under this paragraph shall include, at a minimum, for each veterans' business center established or operated using financial assistance provided under this subsection—
the number of individuals receiving assistance from the veterans' business center, including the number of such individuals who are—
veterans or spouses of veterans;
service-disabled veterans or spouses of service-disabled veterans; or
Reservists or spouses of Reservists;
the number of startup small business concerns formed by individuals receiving assistance from the veterans' business center, including—
veterans or spouses of veterans;
service-disabled veterans or spouses of service-disabled veterans; or
Reservists or spouses of Reservists;
the gross receipts of small business concerns that receive advice from the veterans' business center;
the employment increases or decreases of small business concerns that receive advice from the veterans' business center;
to the maximum extent practicable, the increases or decreases in profits of small business concerns that receive advice from the veterans' business center; and
the results of the examination of the veterans' business center under paragraph (10).
Coordination of efforts and consultation
Coordination and consultation
To the extent practicable, the Associate Administrator and each private nonprofit organization that receives financial assistance under this subsection shall—
coordinate outreach and other activities with other programs of the Administration and the programs of other Federal agencies;
consult with technical representatives of the district offices of the Administration in carrying out activities using financial assistance under this subsection; and
provide information to the veterans business ownership representatives designated under subparagraph (B) and coordinate with the veterans business ownership representatives to increase the ability of the veterans business ownership representatives to provide services throughout the area served by the veterans business ownership representatives.
Veterans business ownership representatives
Designation
The Administrator shall designate not fewer than 1 individual in each district office of the Administration as a veterans business ownership representative, who shall communicate and coordinate activities of the district office with private nonprofit organizations that receive financial assistance under this subsection.
Initial designation
The first individual in each district office of the Administration designated by the Administrator as a veterans business ownership representative under clause (i) shall be an individual that is employed by the Administration on the date of enactment of this subsection.
Existing contracts
An award of financial assistance under this subsection shall not void any contract between a private nonprofit organization and the Administration that is in effect on the date of such award.
Authorization of appropriations
There are authorized to be appropriated—
to carry out subsections (a) through (f), $2,000,000 for each of fiscal years 2010 through 2012; and
to carry out subsection (g)—
$8,000,000 for fiscal year 2010;
$8,500,000 for fiscal year 2011; and
$9,000,000 for fiscal year 2012.
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GAO Report
Definitions
In this subsection—
the term small business concern owned and controlled by veterans has the meaning given that term in section 32(g) of the Small Business Act, as added by this section; and
the term veterans’ business center program means the veterans’ business center program established under section 32(g) of the Small Business Act, as added by this section.
Report
In general
Not later than 60 days after the end of the second fiscal year beginning after the date on which the veterans’ business center program is established, the Comptroller General of the United States shall evaluate the effectiveness of the veterans’ business center program, and submit to Congress a report on the results of that evaluation.
Contents
The report submitted under subparagraph (A) shall include—
an assessment of—
the use of amounts made available to carry out the veterans’ business center program;
the effectiveness of the services provided by each private nonprofit organization receiving financial assistance under the veterans’ business center program;
whether the services described in clause (ii) are duplicative of services provided by other veteran service organizations, programs of the Administration, or programs of another Federal department or agency and, if so, recommendations regarding how to alleviate the duplication of the services; and
whether there are areas of the United States in which there are not adequate entrepreneurial services for small business concerns owned and controlled by veterans and, if so, whether there is a veterans' business center established under the veterans’ business center program providing services to that area; and
recommendations, if any, for improving the veteran's business center program.
Reporting requirement for interagency task force
Section 32(c) of the Small Business Act (15 U.S.C. 657b(c)) is amended by adding at the end the following:
Report
Not less frequently than twice each year, the Administrator shall submit to Congress a report on the appointments made to and activities of the task force.
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Repeal and renewal of grants
Definition
In this section, the term covered grant, contract, or cooperative agreement means a grant, contract, or cooperative agreement that was—
made or entered into under section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)); and
in effect on or before the date described in subsection (b)(2).
Repeal
In general
Section 8(b) of the Small Business Act (15 U.S.C. 637(b)) is amended—
in paragraph (15),
by adding and
at the end;
in paragraph (16),
by striking ; and
and inserting a period; and
by striking paragraph (17).
Effective date
The amendments made by paragraph (1) shall take effect 60 days after the date of enactment of this Act.
Transitional rules
In General
Notwithstanding any other provision of law, a covered grant, contract, or cooperative agreement shall remain in full force and effect under the terms, and for the duration, of the covered grant, contract, or agreement.
Additional requirements
Any organization that was awarded or entered into a covered grant, contract, or cooperative agreement shall be subject to the requirements of section 32(g) of the Small Business Act (15 U.S.C. 657b(g)) (as added by this Act).
Renewal of financial assistance
An organization that was awarded or entered into a covered grant, contract, or cooperative agreement may apply for a renewal of the grant, contract, or agreement under the terms and conditions described in section 32(g) of the Small Business Act (15 U.S.C. 657b(g)) (as added by this Act).
Program for investment in microentrepreneurs
PRIME reauthorization
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating sections 37 through 44 as sections 38 through 45, respectively; and
by inserting after section 36 the following:
Program for investment in microentrepreneurs
Definitions
In this section:
Associate Administrator
The term Associate Administrator means the Associate Administrator for Entrepreneurial Development of the Administration.
Capacity building services
The term capacity building services means services provided to an organization that is, or that is in the process of becoming, a microenterprise development organization or program, for the purpose of enhancing the ability of the organization to provide training and services to disadvantaged entrepreneurs.
Collaborative
The term collaborative means 2 or more nonprofit entities that agree to act jointly as a qualified organization under this section.
Disadvantaged entrepreneur
The term disadvantaged entrepreneur means a microentrepreneur that—
is a low-income person;
is a very low-income person; or
lacks adequate access to capital or other resources essential for business success, or is economically disadvantaged, as determined by the Administrator.
Disadvantaged native american entrepreneur
The term disadvantaged Native American entrepreneur means a disadvantaged entrepreneur who is also a member of an Indian Tribe.
Indian tribe
The term Indian tribe has the meaning given that term in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)).
Intermediary
The term intermediary means a private, nonprofit entity that seeks to serve microenterprise development organizations and programs, as authorized under subsection (d).
Low-income person
The term low-income person means a person having an income, adjusted for family size, of not more than—
for metropolitan areas, 80 percent of the area median income; and
for nonmetropolitan areas, the greater of—
80 percent of the area median income; or
80 percent of the statewide nonmetropolitan area median income.
Microentrepreneur
The term microentrepreneur means the owner or developer of a microenterprise.
Microenterprise
The term microenterprise means a sole proprietorship, partnership, or corporation that—
has not more than 4 employees; and
generally lacks access to conventional loans, equity, or other banking services.
Microenterprise development organization or program
The term microenterprise development organization or program means a nonprofit entity, or a program administered by such an entity, including community development corporations or other nonprofit development organizations and social service organizations, that provides services to disadvantaged entrepreneurs.
Training and technical assistance
The term training and technical assistance means services and support provided to disadvantaged entrepreneurs, such as assistance for the purpose of enhancing business planning, marketing, management, financial management skills, and assistance for the purpose of accessing financial services.
Qualified organization
The term qualified organization means—
a nonprofit microenterprise development organization or program (or a group or collaborative thereof) that has a demonstrated record of delivering microenterprise services to disadvantaged entrepreneurs;
an intermediary;
a microenterprise development organization or program that is—
accountable to a local community; and
working in conjunction with a State or local government or Indian tribe; or
an Indian tribe acting on its own, if the Indian tribe certifies that no private organization or program referred to in this paragraph exists within its jurisdiction.
Very low-income person
The term very low-income person means an individual having an income, adjusted for family size, of not more than 150 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by that section).
Establishment of program
The Associate Administrator shall establish a microenterprise training and technical assistance and capacity building services grant program to provide grants to qualified organizations in accordance with this section.
Uses of assistance
A qualified organization shall use a grant made under this section—
to provide training and technical assistance to disadvantaged entrepreneurs;
to provide training and technical assistance and capacity building services to microenterprise development organizations and programs and groups of such organizations and programs to assist such organizations and programs in developing microenterprise training and services;
to aid in researching and developing the best practices in the field of microenterprise and training and technical assistance programs for disadvantaged entrepreneurs;
to provide training and technical assistance to disadvantaged Native American entrepreneurs and prospective disadvantaged Native American entrepreneurs; and
for such other activities as the Associate Administrator determines are consistent with the purposes of this section.
Allocation of grants; subgrants
Allocation of grants
In general
The Associate Administrator shall allocate assistance from the Administration under this section to ensure that—
not less than 75 percent of amounts made available to the Administrator for grants under this section are used for activities described in subsection (c)(1); and
not less than 15 percent of amounts made available to the Administrator for grants under this section are used for activities described in subsection (c)(2).
Limit on individual assistance
No single person may receive more than 10 percent of the total amounts made available for grants under this section for a single fiscal year.
Targeted assistance
The Associate Administrator shall ensure that not less than 50 percent of the total amounts made available for grants under this section are used to benefit very low-income persons, including very low-income persons residing on Indian reservations.
Subgrants authorized
In general
A qualified organization receiving a grant under this section may provide subgrants using that grant to qualified organizations that are small or emerging microenterprises and programs, subject to such rules and regulations as the Associate Administrator determines are appropriate.
Limit on administrative expenses
Not more than 7.5 percent of the amount received by a qualified organization under a grant under this section may be used for administrative expenses in connection with the making of subgrants under subparagraph (A).
Diversity
In making grants under this section, the Associate Administrator shall ensure that grant recipients include both large and small microenterprise organizations that serve urban, rural, and Indian tribal communities and diverse populations.
Prohibition on preferential consideration of certain administration program participants
In making grants under this section, the Associate Administrator shall ensure that any application made by a qualified organization that is a participant in the program established under section 7(m) does not receive preferential consideration over applications from other qualified organizations that are not participants in the program.
Federal share
In general
A qualified organization that receives a grant under this section shall provide non-Federal contributions to carry out the activities described in subsection (c) in an amount equal to not less than 50 percent of the amount of the grant received under this section.
Sources of non-Federal share
The non-Federal share of the cost of a project using a grant under this section may be in the form of fees, grants, gifts, funds from loan sources, or in-kind resources of an applicant from public or private sources.
Exception
In general
If the Associate Administrator determines that an applicant for assistance under this section has severe constraints on available sources of non-Federal funds, the Associate Administrator may reduce or eliminate the requirement under paragraph (1).
Limitation
Not more than 10 percent of the total funds made available from the Administration in any fiscal year to carry out this section may be excepted under subparagraph (A) from the requirement under paragraph (1).
Applications for assistance
An application for a grant under this section shall be submitted in such form and in accordance with such procedures as the Associate Administrator shall establish.
Recordkeeping and reporting
In general
Each qualified organization that receives a grant under this section shall—
submit to the Administration not less frequently than once every 18-month period, financial statements audited by an independent certified public accountant;
submit an annual report to the Administration on the activities of the qualified organization; and
keep such records as the Associate Administrator determines are necessary to disclose the manner in which amounts made available under a grant under this section are used.
Access
Upon the request of the Associate Administrator, the Associate Administrator shall have access to any record of any qualified organization that receives a grant under this section, for the purpose of determining compliance with this section.
Data collection
Each qualified organization that receives a grant under this section shall collect information relating to, as applicable—
the number of individuals counseled or trained by the organization;
the number of hours of counseling provided by the organization;
the number of startup small business concerns formed with the assistance of the organization;
the number of small business concerns expanded with the assistance of the organization;
the number of low-income individuals counseled or trained by the organization; and
the number of very low-income individuals counseled or trained by the organization.
Authorization of appropriations
In general
There are authorized to be appropriated to the Administrator $15,000,000 for each of fiscal years 2010 through 2012 to carry out this section, which shall remain available until expended.
Certain programs
In addition to the amount authorized under paragraph (1), there are authorized to be appropriated to the Administrator $2,000,000 for each of fiscal years 2010 through 2012 to carry out subsection (c)(4), which shall remain available until expended.
.
Conforming repeal and amendments
Conforming repeal
Subtitle C of title I of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6901 et seq.) is repealed.
Conforming amendments
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
in section 38(d)
(15 U.S.C. 657i(d)), as so redesignated, by striking section 43
and inserting section 44
;
in section 41(d)
(15 U.S.C. 657l(d)), as so redesignated, by striking section 43
and inserting section 44
; and
in section 42(b)
(15 U.S.C. 657m(b)), as so redesignated, by striking section 43
and inserting section 44
.
References
All references in Federal law, other than
section 504 of this Act, to the Program for Investment in
Microentrepreneurs Act of 1999
or the PRIME Act
shall be
deemed to be references to section 37 of the Small Business Act, as added by
this Act.
Rule of construction
Nothing in this title or the amendments made by this title shall affect any grant or assistance provided under the Program for Investment in Microentrepreneurs Act of 1999 (15 U.S.C. 6901 et seq.), before the date of enactment of this Act, and any such grant or assistance shall be subject to the Program for Investment in Microentrepreneurs Act of 1999, as in effect on the day before the date of enactment of this Act.
Other provisions
Institutions of higher education
In general
Section 21(a)(1) of the Small Business Act (15 U.S.C.
648(a)(1)) is amended by striking : Provided,
That
and all that follows through on such date.
and inserting the following: . On and after December 31, 2010, the
Administration may only make a grant under this paragraph to an applicant that
is an institution of higher education, as defined in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)) that is accredited (and not
merely in preaccreditation status) by a nationally recognized accrediting
agency or association, recognized by the Secretary of Education for such
purpose in accordance with section 496 of that Act (20 U.S.C. 1099b), or to a
women's business center operating pursuant to section 29 as a small business
development center, unless the applicant was receiving financial assistance
(including a contract or cooperative agreement) on December 31,
2010.
.
Effective date
The amendment made by subsection (a) shall take effect on December 31, 2010.
Health insurance options information for small business concerns
Definitions
In this section—
the term grant program means the small business health insurance information grant program established under subsection (b)(1); and
the term resource partner means—
the association of small business development centers authorized to be established under section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A));
the Association of Women's Business Centers;
the Service Corps of Retired Executives authorized by section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)); and
1 veterans business center (as that term is used in section 32(g) of the Small Business Act (15 U.S.C. 657b(g)), as added by this Act), as determined by the Associate Administrator for Entrepreneurial Development.
Small Business Health Insurance Information Program
Program established
The Administrator, acting through the Associate Administrator for Entrepreneurial Development, shall establish a program to make grants to resource partners 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.
Grant recipients
The Associate Administrator for Entrepreneurial Development shall make 1 grant to each of the resource partners.
Grant amounts
The grants made under this section shall—
be made from funds appropriated to the Administrator to carry out the activities of the Office of Entrepreneurial Development; and
not exceed a total amount of $5,000,000.
Contract
As a condition of receiving a grant under this section, each resource partner shall agree, by contract with the Administration—
to begin to use the funds in accordance with paragraph (5) not later than 1 year after the date on which the resource partner receives the grant; and
to return any funds that have not been used, if the Administrator determines that the resource partner is not carrying out the grant program activities under paragraph (5)(A).
Use of funds
Grant program activities
A resource partner shall use funds provided under the grant program to create, in consultation with the Associate Administrator for Entrepreneurial Development of the Administration—
an online training program;
an online repository of health insurance information relevant to small business concerns;
a counseling curriculum that can be used in the physical location of the resource partner; and
materials containing relevant information that can be disbursed to owners of small business concerns throughout the country.
Content of materials
In general
In creating materials under the grant program, a resource partner shall evaluate and incorporate relevant portions of existing informational materials regarding health insurance options, including materials and resources developed by the National Association of Insurance Commissioners, the Kaiser Family Foundation, and the Healthcare Leadership Council.
Health insurance options
In incorporating information regarding health insurance options under clause (i), a resource partner shall provide neutral and objective information regarding health insurance options in the geographic area served by the resource partner, including traditional employer sponsored health insurance for the group insurance market, such as the health insurance options described in section 2791 of the Public Health Services Act (42 U.S.C. 300gg–91) or section 125 of the Internal Revenue Code of 1986, and Federal and State health insurance programs.
Review and Report
Review of grant program
The Associate Administrator for Entrepreneurial Development shall conduct a review of the effectiveness of the grant program.
Report
Not later than 2 years after the date on which all grants under the grant program are disbursed, the Associate Administrator for Entrepreneurial Development shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the results of the review under paragraph (1).
National Small Business Development Center Advisory Board
In general
Section 21(i)(1) of the Small Business Act (15 U.S.C. 648(i)(1)) is amended—
in the first sentence, by striking
nine members
and inserting 10 members
;
in the second
sentence, by striking six
and inserting the members who
are not from universities or their affiliates
;
by striking the third sentence; and
in the fourth
sentence, by inserting not less than
before
one-third
.
Incumbents
An individual serving as a member of the Board on the date of enactment of this Act may continue to serve on the Board until the end of the term of the member under section 21(i)(1) of the Small Business Act (15 U.S.C. 648(i)(1)), as in effect on the day before such date of enactment.
Privacy requirements for SCORE chapters
Section 8 of the Small Business Act (15 U.S.C. 637) is amended by striking subsection (c) and inserting the following:
Privacy requirements
In general
A chapter of the SCORE program authorized by subsection (b)(1) or an agent of such a chapter may not disclose the name, address, or telephone number of any individual or small business concern receiving assistance from that chapter or agent without the consent of such individual or small business concern, unless—
the Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or
the Administrator determines such a disclosure to be necessary for the purpose of conducting a financial audit of a chapter of the SCORE program authorized by subsection (b)(1), in which case disclosure shall be limited to the information necessary for such audit.
Administrator use of information
This subsection shall not—
restrict the access of the Administrator to program activity data; or
prevent the Administrator from using client information to conduct client surveys.
Regulations
In general
The Administrator shall issue regulations to establish standards—
for disclosures with respect to financial audits under paragraph (1)(B); and
for client surveys under paragraph (2)(B), including standards for oversight of such surveys and for dissemination and use of client information.
Maximum privacy protection
Regulations under this paragraph shall, to the extent practicable, provide for the maximum amount of privacy protection.
Inspector general
Until the effective date of regulations under this paragraph, any client survey and the use of such information shall be approved by the Inspector General of the Administration who shall include such approval in the semi-annual report of the Inspector General.
.
National small business summit
In general
Not later than December 31, 2012, the President shall convene a National Small Business Summit to examine the present conditions and future of the community of small business concerns in the United States. The summit shall include owners of small business concerns, representatives of small business groups, labor, academia, the Federal Government, State governments, Indian tribes, Federal research and development agencies, and nonprofit policy groups concerned with the issues of small business concerns.
Report
Not later than 90 days after the date of the conclusion of the summit convened under subsection (a), the President shall issue a report on the results of the summit. The report shall identify key challenges and make recommendations for promoting entrepreneurship and the growth of small business concerns.
SCORE program
In general
Section 8(b)(1)(B) of
the Small Business Act (15 U.S.C. 637(b)(1)(B)) is amended by striking a
Service Corps of Retired Executives (SCORE)
and inserting the
SCORE
.
Technical and conforming amendments
In general
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
in section
7(m)(3)(A)(i)(VIII), by striking Service Corps of Retired
Executives
and inserting SCORE
; and
in section
33(b)(2), by striking Service Corps of Retired Executives
and
inserting SCORE
.
Other law
Section 337(d)(2) of the Energy Policy and Conservation Act
(42 U.S.C. 6307(d)(2)) is amended by striking Service Corps of Retired
Executives (SCORE)
and inserting SCORE
.
References
Any reference to the Service Corps of Retired Executives established under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)), as in effect on the day before the date of enactment of this Act, in any law, rule, regulation, certificate, directive, instruction, or other official paper shall be considered to refer to the SCORE established under section 8(b)(1)(B) of the Small Business Act, as amended by this Act.
Assistance to out-of-state small businesses
Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is amended—
by striking
(3) At the discretion
and inserting the following:
Assistance to out-of-state small businesses
In general
At the discretion
; and
by adding at the end the following:
Disaster recovery assistance
In general
At the discretion of the Administrator, the Administrator may authorize a small business development center to provide assistance, as described in subsection (c), to small business concerns located outside of the State, without regard to geographic proximity, if the small business concerns are located in an area for which the President has declared a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122), during the period of the declaration.
Continuity of services
A small business development center that provides counselors to an area described in clause (i) shall, to the maximum extent practicable, ensure continuity of services in any State in which the small business development center otherwise provides services.
Access to disaster recovery facilities
For purposes of this subparagraph, the Administrator shall, to the maximum extent practicable, permit the personnel of a small business development center to use any site or facility designated by the Administrator for use to provide disaster recovery assistance.
.
Small business development centers
Portability grants
Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(viii)) is amended—
in the first sentence—
by striking
From the funds appropriated pursuant to clause (vii)
and
inserting Of the amounts made available to carry out this subparagraph
in each fiscal year
; and
by striking
as a result of a business or government facility down sizing or closing,
which has resulted in the loss of jobs or small business instability
and inserting due to events that have resulted or will result in, the
downsizing or closing of a business or government facility
; and
by adding at the
end The Administrator may make a grant under this clause that exceeds
$100,000 to accommodate extraordinary events that the Administrator determines
have had a catastrophic impact on small business concerns in a
community.
.
Purposes
Section
21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)) is amended in the
first sentence by adding regulatory compliance and
after
counseling concerning
.
Evaluation of pilot programs
In general
Not later than 30 months after the date of disbursement of the first grant under a covered pilot program, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report evaluating the covered pilot program, including recommendations, if any, on possible improvements or modifications to the covered pilot program, including the feasibility of extending the covered pilot program to all small business development centers.
Definition of covered pilot program
In this section, the term covered pilot program means a pilot program relating to small business development centers established under this Act or an amendment made by this Act.
Short title
This Act may be cited as the
Entrepreneurial Development Act of
2009
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I—Reauthorization
Sec. 101. Reauthorization.
TITLE II—Women’s small business ownership programs
Sec. 201. Office of Women’s Business Ownership.
Sec. 202. Women’s Business Center Program.
Sec. 203. National Women’s Business Council.
Sec. 204. Interagency Committee on Women’s Business Enterprise.
Sec. 205. Preserving the independence of the National Women’s Business Council.
Sec. 206. Study and report on women's business centers.
TITLE III—Native American small business development program
Sec. 301. Short title.
Sec. 302. Native American small business development program.
Sec. 303. Study and report on Native American business centers.
Sec. 304. Office of Native American Affairs pilot program.
TITLE IV—Veterans' business center program
Sec. 401. Veterans' business center program; Office of Veterans Business Development.
Sec. 402. Reporting requirement for interagency task force.
Sec. 403. Repeal and renewal of grants.
TITLE V—Program for investment in microentrepreneurs
Sec. 501. PRIME reauthorization.
Sec. 502. Conforming repeal and amendments.
Sec. 503. References.
Sec. 504. Rule of construction.
TITLE VI—Other provisions
Sec. 601. Institutions of higher education.
Sec. 602. Health insurance options information for small business concerns.
Sec. 603. National Small Business Development Center Advisory Board.
Sec. 604. Privacy requirements for SCORE chapters.
Sec. 605. National small business summit.
Sec. 606. SCORE program.
Sec. 607. Assistance to out-of-state small businesses.
Sec. 608. Small business development centers.
Sec. 609. Evaluation of pilot programs.
Sec. 610. Educating and networking entrepreneurs through technology.
Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632); and
the term small business development center means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648).
Reauthorization
Reauthorization
In general
Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended—
by redesignating subsection (j) as subsection (f); and
by adding at the end the following:
SCORE program
There are authorized to be appropriated to the Administrator to carry out the SCORE program authorized by section 8(b)(1) such sums as are necessary for the Administrator to make grants or enter into cooperative agreements for a total of—
$10,000,000 in fiscal year 2010;
$11,000,000 in fiscal year 2011; and
$13,000,000 in fiscal year 2012.
.
Small business development centers
Section 21(a)(4)(C)(vii) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(vii)) is amended to read as follows:
Authorization of appropriations
There are authorized to be appropriated to carry out this subparagraph—
$150,000,000 for fiscal year 2010;
$155,000,000 for fiscal year 2011; and
$160,000,000 for fiscal year 2012.
.
Paul D. Coverdell drug-free workplace program
In general
Section 27(g) of the Small Business Act (15 U.S.C. 654(g)) is amended—
in paragraph (1), by
striking fiscal years 2005 and 2006
and inserting fiscal
years 2010 through 2012
; and
in paragraph (2), by
striking fiscal years 2005 and 2006
and inserting fiscal
years 2010 through 2012
.
Conforming amendment
Section 21(c)(3)(T) of the Small Business Act (15
U.S.C. 648(c)(3)(T)) is amended by striking October 1, 2006
and
inserting October 1, 2012
.
Women’s small business ownership programs
Office of Women’s Business Ownership
In general
Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) is amended—
in paragraph (2)—
in subparagraph (B)(i), by striking “in the areas” and all that follows through the end of subclause (I), and inserting the following: “to address issues concerning the management, operations, manufacturing, technology, finance, retail and product sales, international trade, Government contracting, and other disciplines required for—
starting, operating, and increasing the business of a small business concern;
; and
in subparagraph (C), by
inserting before the period at the end the following: , the National
Women’s Business Council, and any association of women’s business
centers
; and
by adding at the end the following:
Training
The Administrator may provide annual programmatic and financial oversight training for women’s business ownership representatives and district office technical representatives of the Administration to enable representatives to carry out their responsibilities.
Program and transparency improvements
The Administrator shall maximize the transparency of the women’s business center financial assistance proposal process and the programmatic and financial oversight process by—
providing public notice of the announcement for financial assistance under subsection (b) and grants under subsection (l) not later than the end of the first quarter of each fiscal year;
in the announcement described in subparagraph (A), outlining award and program evaluation criteria and describing the weighting of the criteria for financial assistance under subsection (b) and grants under subsection (l);
minimizing paperwork and reporting requirements for applicants for and recipients of financial assistance under this section;
standardizing the oversight and review process of the Administration; and
providing to each women’s business center, not later than 60 days after the completion of a site visit at the women's business center (whether conducted for an audit, performance review, or other reason), a copy of site visit reports and evaluation reports prepared by district office technical representatives or officers or employees of the Administration.
.
Change of title
In general
Section 29 of the Small Business Act (15 U.S.C. 656) is amended—
in subsection (a)—
by striking paragraphs (1) and (4);
by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively; and
by inserting before paragraph (4), as so redesignated, the following:
the term Director means the Director of the Office of Women's Business Ownership established under subsection (g);
;
by striking
Assistant Administrator
each place it appears and inserting
Director
; and
in subsection (g)(2), in
the paragraph heading, by striking Assistant Administrator
and inserting
Director
.
Women's Business Ownership Act of 1988
Title IV of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is amended—
in section 403(a)(2)(B),
by striking Assistant Administrator
and inserting
Director
;
in section 405, by
striking Assistant Administrator
and inserting
Director
; and
in section 406(c), by
striking Assistant Administrator
and inserting
Director
.
Women’s Business Center Program
Women’s Business Center financial assistance
Section 29 of the Small Business Act (15 U.S.C. 656) is amended—
in subsection (a)—
by inserting before paragraph (2), as added by section 201(b), the following:
the term association of women’s business centers means an organization—
that represents not less than 51 percent of the women’s business centers that participate in a program under this section; and
whose primary purpose is to represent women’s business centers;
;
by inserting after paragraph (2), as added by section 201(b), the following:
the term eligible entity means—
a private nonprofit organization;
a State, regional, or local economic development organization;
a development, credit, or finance corporation chartered by a State;
a public or private institution of higher education (as that term is used in sections 101 and 102 of the Higher Education Act of 1965 (20 U.S.C. 1001 and 1002)); or
any combination of entities listed in subparagraphs (A) through (D);
; and
by adding after paragraph (5), as redesignated by section 201(b), the following:
the term women's business center means a project conducted by an eligible entity under this section;
;
in subsection (b)—
by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), and adjusting the margins accordingly;
by striking The
Administration
and all that follows through 5-year
project
and inserting the following:
In general
The Administration may provide financial assistance to an eligible entity to conduct a project under this section
;
by striking The
projects shall
and inserting the following:
Use of funds
The project shall be designed to provide training and counseling that meets the needs of women, especially socially and economically disadvantaged women, and shall provide
; and
by adding at the end the following:
Amount of financial assistance
In general
The Administrator may award financial assistance under this subsection of not less than $150,000 per year.
Equal allocations
In the event that the Administration has insufficient funds to provide financial assistance of $150,000 for each recipient of financial assistance under this subsection in any fiscal year, available funds shall be allocated equally to recipients, unless a recipient requests a lower amount than the allocated amount.
Consultation with associations of Women’s Business Centers
The Administrator shall consult with each association of women’s business centers to develop—
a training program for the staff of women’s business centers and the Administration; and
recommendations to improve the policies and procedures for governing the general operations and administration of the Women’s Business Center program, including grant program improvements under subsection (g)(5).
;
in subsection (c)—
in paragraph (1) by
striking the recipient organization
and inserting an
eligible entity
;
in paragraph (3), in the
second sentence, by striking a recipient organization
and
inserting an eligible entity
;
in paragraph (4)—
by striking
recipient
each place it appears and inserting eligible
entity
; and
by striking such
organization
and inserting the eligible entity
;
and
by adding at end the following:
Separation of project and funds
An eligible entity shall—
carry out a project under this section separately from other projects, if any, of the eligible entity; and
separately maintain and account for any financial assistance under this section.
;
in subsection (e)—
by striking
applicant organization
and inserting eligible
entity
;
by striking a
recipient organization
and inserting an eligible entity
;
and
by striking
site
;
by striking subsection (f) and inserting the following:
Applications and criteria for initial financial assistance
Application
Each eligible entity desiring financial assistance under subsection (b) shall submit to the Administrator an application that contains—
a certification that the eligible entity—
has designated an executive director or program manager, who may be compensated from financial assistance under subsection (b) or other sources, to manage the center on a full-time basis; and
as a condition of receiving financial assistance under subsection (b), agrees—
to receive a site visit by the Administrator as part of the final selection process;
to undergo an annual programmatic and financial review; and
to the maximum extent practicable, to remedy any problems identified pursuant to the site visit or review under subclause (I) or (II);
meets the accounting and reporting requirements established by the Director of the Office of Management and Budget;
information demonstrating that the eligible entity has the ability and resources to meet the needs of the market to be served by the women's business center for which financial assistance under subsection (b) is sought, including the ability to obtain the non-Federal contribution required under subsection (c);
information relating to the assistance to be provided by the women's business center for which financial assistance under subsection (b) is sought in the area in which the women's business center site is located;
information demonstrating the experience and effectiveness of the eligible entity in—
conducting financial, management, and marketing assistance programs, as described under subsection (b)(2), which are designed to teach or upgrade the business skills of women who are business owners or potential business owners;
providing training and services to a representative number of women who are socially and economically disadvantaged; and
using resource partners of the Administration and other entities, such as universities; and
a 5-year plan that describes the ability of the women's business center for which financial assistance is sought—
to serve women who are business owners or potential owners by conducting training and counseling activities; and
to provide training and services to a representative number of women who are socially and economically disadvantaged.
Additional information
The Administrator shall make any request for additional information from an organization applying for financial assistance under subsection (b) that was not requested in the original announcement in writing.
Review and approval of applications for initial financial assistance
In general
The Administrator shall—
review each application submitted under paragraph (1), based on the information described in such paragraph and the criteria set forth under subparagraph (B) of this paragraph; and
to the extent practicable, as part of the final selection process, conduct a site visit at each women's business center for which financial assistance under subsection (b) is sought.
Selection criteria
In general
The Administrator shall evaluate applicants for financial assistance under subsection (b) in accordance with selection criteria that are—
established before the date on which applicants are required to submit the applications;
stated in terms of relative importance; and
publicly available and stated in each solicitation for applications for financial assistance under subsection (b) made by the Administrator.
Required criteria
The selection criteria for financial assistance under subsection (b) shall include—
the experience of the applicant in conducting programs or ongoing efforts designed to teach or enhance the business skills of women who are business owners or potential business owners;
the ability of the applicant to commence a project within a minimum amount of time;
the ability of the applicant to provide training and services to a representative number of women who are socially and economically disadvantaged; and
the location for the women's business center site proposed by the applicant, including whether the applicant is located in a State in which there is not a women's business center receiving funding from the Administration.
Proximity
If the principal place of business of an applicant for financial assistance under subsection (b) is located less than 50 miles from the principal place of business of a women’s business center that received funds under this section on or before the date of the application, the applicant shall not be eligible for the financial assistance, unless the applicant submits a detailed written justification of the need for an additional center in the area in which the applicant is located.
Record retention
The Administrator shall maintain a copy of each application submitted under this subsection for not less than 7 years.
; and
in subsection (m), by striking paragraph (3) and inserting the following:
Application and approval for renewal grants
Application
Each eligible entity desiring a grant under this subsection shall submit to the Administrator an application that contains—
a certification that the applicant—
is a private nonprofit organization;
has designated a full-time executive director or program manager to manage the women's business center operated by the applicant; and
as a condition of receiving a grant under this subsection, agrees—
to receive a site visit as part of the final selection process;
to submit, for the 2 full fiscal years before the date on which the application is submitted, annual programmatic and financial review reports or certified copies of the compliance supplemental audits under OMB Circular A–133 of the applicant; and
to remedy any problem identified pursuant to the site visit or review under item (aa) or (bb);
information demonstrating that the applicant has the ability and resources to meet the needs of the market to be served by the women's business center for which a grant under this subsection is sought, including the ability to ability to obtain the non-Federal contribution required under paragraph (4)(C);
information relating to assistance to be provided by the women's business center for which a grant under this subsection is sought in the area of the women's business center site;
information demonstrating the use of resource partners of the Administration and other entities;
a 3-year plan that describes the ability of the women's business center for which a grant under this subsection is sought—
to serve women who are business owners or potential business owners by conducting training and counseling activities; and
to provide training and services to a representative number of women who are socially and economically disadvantaged; and
any additional information that the Administrator may reasonably require.
Review and approval of applications for grants
In general
The Administrator shall—
review each application submitted under subparagraph (A), based on the information described in such subparagraph and the criteria set forth under clause (ii) of this subparagraph; and
whenever practicable, as part of the final selection process, conduct a site visit at each women's business center for which a grant under this subsection is sought.
Selection criteria
In general
The Administrator shall evaluate applicants for grants under this subsection in accordance with selection criteria that are—
established before the date on which applicants are required to submit the applications;
stated in terms of relative importance; and
publicly available and stated in each solicitation for applications for grants under this subsection made by the Administrator.
Required criteria
The selection criteria for a grant under this subsection shall include—
the total number of entrepreneurs served by the applicant;
the total number of new start-up companies assisted by the applicant;
the percentage of the clients of the applicant that are socially or economically disadvantaged; and
the percentage of individuals in the community served by the applicant who are socially or economically disadvantaged.
Conditions for continued funding
In determining whether to make a grant under this subsection, the Administrator—
shall consider the results of the most recent evaluation of the women's business center for which a grant under this subsection is sought, and, to a lesser extent, previous evaluations; and
may withhold a grant under this subsection, if the Administrator determines that the applicant has failed to provide the information required to be provided under this paragraph, or the information provided by the applicant is inadequate.
Notification
Not later than 60 days after the date of the deadline to submit applications for each fiscal year, the Administrator shall approve or deny any application under this paragraph and notify the applicant for each such application.
Record retention
The Administrator shall maintain a copy of each application submitted under this paragraph for not less than 7 years.
.
Technical and conforming Amendments
Section 29 of the Small Business Act (15 U.S.C. 656) is amended—
in subsection (h)(2), by
striking to award a contract (as a sustainability grant) under
subsection (l) or
;
in subsection (j)(1), by
striking The Administration
and inserting Not later than
November 1st of each year, the Administrator
;
in subsection (k)—
by striking paragraphs (1), (2), and (4);
by redesignating paragraph (3) as paragraph (5); and
by inserting before paragraph (5), as so redesignated, the following:
In general
There are authorized to be appropriated to the Administration to carry out this section, to remain available until expended—
$20,000,000 for fiscal year 2010;
$20,500,000 for fiscal year 2011; and
$21,000,000 for fiscal year 2012.
Allocation
Of amounts made available pursuant to paragraph (1), the Administrator shall use not less than 50 percent for grants under subsection (l).
Use of amounts
Amounts made available under this subsection may only be used for grant awards and may not be used for costs incurred by the Administration in connection with the management and administration of the program under this section.
Continuing grant and cooperative agreement authority
In general
The authority of the Administrator to provide financial assistance under this section shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts.
Prompt disbursement
Upon receiving funds to carry out this section for a fiscal year, the Administrator shall, to the extent practicable, promptly reimburse funds to any women’s business center awarded financial assistance under this section if the center meets the eligibility requirements under this section.
Renewal
After the Administrator has entered into a grant or cooperative agreement with any women's business center under this section, the Administrator shall not suspend, terminate, or fail to renew or extend any such grant or cooperative agreement, unless the Administrator—
provides the women's business center with written notification setting forth the reasons for that action; and
affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.
;
in subsection (m)(4)(D),
by striking or subsection (l)
; and
by redesignating subsections (m) and (n), as amended by this Act, as subsections (l) and (m), respectively.
National Women’s Business Council
Membership
Section 407(f) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107(f)) is amended by adding at the end the following:
Representation of member organizations
In consultation with the chairperson of the Council and the Administrator, a national women's business organization or small business concern that is represented on the Council may replace its representative member on the Council during the service term to which that member was appointed.
.
Authorization of Appropriations
Section 410(a) of the Women’s Business Ownership
Act of 1988 (15 U.S.C. 7110(a)) is amended by striking 2001 through
2003, of which $550,000
and inserting 2010 through 2012, of
which not less than 30 percent
.
Interagency Committee on Women’s Business Enterprise
Chairperson
Section 403(b) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7103(b)) is amended—
by striking Not
later
and inserting the following:
In general
Not later
; and
by adding at the end the following:
Vacancy
In the event that a chairperson is not appointed under paragraph (1), the Deputy Administrator of the Small Business Administration shall serve as acting chairperson of the Interagency Committee until a chairperson is appointed under paragraph (1).
.
Policy Advisory Group
Section 401 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7101) is amended—
by striking
There
and inserting the following:
Establishment of Committee
There
; and
by adding at the end the following:
Policy Advisory Group
Establishment
There is established a Policy Advisory Group within the Interagency Committee to assist the chairperson in developing policies and programs under this Act.
Membership
The Policy Advisory Group shall be composed of 7 policy making officials, of whom—
1 shall be a representative of the Small Business Administration;
1 shall be a representative of the Department of Commerce;
1 shall be a representative of the Department of Labor;
1 shall be a representative of the Department of Defense;
1 shall be a representative of the Department of the Treasury; and
2 shall be representatives of the Council.
Meetings
The Policy Advisory Group established under paragraph (1) shall meet not less frequently than 3 times each year to—
plan activities for the new fiscal year;
track year-to-date agency contracting activities; and
evaluate the progress during the fiscal year and prepare an annual report.
.
Preserving the independence of the National Women’s Business Council
Findings
Congress finds the following:
The National Women’s Business Council provides an independent source of advice and policy recommendations regarding women’s business development and the needs of women entrepreneurs in the United States to—
the President;
Congress;
the Interagency Committee on Women’s Business Enterprise; and
the Administrator.
The members of the National Women’s Business Council are small business owners, representatives of business organizations, and representatives of women’s business centers.
The chairman and ranking member of the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives make recommendations to the Administrator to fill 8 of the positions on the National Women’s Business Council. Four of the positions are reserved for small business owners who are affiliated with the political party of the President, and 4 of the positions are reserved for small business owners who are not affiliated with the political party of the President. This method of appointment ensures that the National Women’s Business Council will provide Congress with nonpartisan, balanced, and independent advice.
In order to maintain the independence of the National Women’s Business Council and to ensure that the Council continues to provide the President, the Interagency Committee on Women’s Business Enterprise, the Administrator, and Congress with advice on a nonpartisan basis, it is essential that the Council maintain the bipartisan balance established under section 407 of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107).
Maintenance of Partisan Balance
Section 407(f) of the Women’s Business Ownership Act of 1988 (15 U.S.C. 7107(f)), as amended by this Act, is amended by adding at the end the following:
Partisan balance
When filling a vacancy under paragraph (1) of this subsection of a member appointed under paragraph (1) or (2) of subsection (b), the Administrator shall, to the extent practicable, ensure that there are an equal number of members on the Council from each of the 2 major political parties.
Accountability
If a vacancy is not filled within the 30-day period required under paragraph (1), or if there is an imbalance in the number of members on the Council from each of the 2 major political parties for a period exceeding 30 days, the Administrator shall submit a report, not later than 10 days after the expiration of either such 30-day deadline, to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, that explains why the respective deadline was not met and provides an estimated date on which any vacancies will be filled, as applicable.
.
Study and report on women's business centers
In general
The Comptroller General of the United States shall conduct a broad study of the unique economic issues facing women's business centers located in covered areas to identify—
the difficulties such centers face in raising non-Federal funds;
the difficulties such centers face competing for financial assistance, non-Federal funds, or other types of assistance;
the difficulties such centers face in writing grant proposals; and
other difficulties such centers face because of the economy in the type of covered area in which such centers are located.
Report
Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to Congress a report regarding the results of the study conducted under subsection (a), which shall include recommendations, if any, regarding how to—
address the unique difficulties women's business centers located in covered areas face because of the type of covered area in which such centers are located;
expand the presence of, and increase the services provided by, women's business centers located in covered areas; and
best use technology and other resources to better serve women business owners located in covered areas.
Definition of covered area
In this section, the term covered area means—
any State that is predominantly rural, as determined by the Administrator;
any State that is predominantly urban, as determined by the Administrator; and
any State or territory that is an island.
Native American small business development program
Short title
This title may be cited
as the Native American Small Business
Development Act of 2009
.
Native American small business development program
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating section 44 as section 45; and
by inserting after section 43 the following:
Native American small business development program
Definitions
In this section—
the term Alaska Native has the meaning given the term Native in section 3(b) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(b));
the term Alaska Native corporation has the meaning given the term Native Corporation in section 3(m) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
the term Assistant Administrator means the Assistant Administrator of the Office of Native American Affairs established under subsection (b);
the terms center and Native American business center mean a center established under subsection (c);
the term eligible applicant means—
an Indian tribe;
a tribal college;
an Alaska Native corporation; or
a private, nonprofit organization—
that provides business and financial or procurement technical assistance to any entity described in subparagraph (A), (B), or (C); and
the majority of members of the board of directors of which are members of an Indian tribe; or
a small business development center, women's business center, or other private organization participating in a joint project;
the term Indian means a member of an Indian tribe;
the term Indian tribe has the meaning given that term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b);
the term joint project means a project that—
combines the resources and expertise of 2 or more distinct entities at a physical location dedicated to assisting the Native American community; and
submits to the Administration a joint application that contains—
a certification that each participant of the project—
is an eligible applicant;
employs an executive director or program manager to manage the center; and
provides information demonstrating a record of commitment to providing assistance to Native Americans and;
information demonstrating that the participants in the joint project have the ability and resources to meet the needs, including the cultural needs, of the Native Americans to be served by the project;
the term Native American Business Enterprise Center means an entity providing business development assistance to federally recognized tribes and Native Americans under a grant from the Minority Business Development Agency of the Department of Commerce;
the term Native American small business concern means a small business concern that is owned and controlled by—
a member of an Indian tribe; or
an Alaska Native or Alaska Native corporation;
the term Native American small business development program means the program established under subsection (c);
the term tribal college has the meaning given the term tribally controlled college or university has in section 2(a)(4) of the Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801(a)(4)); and
the term tribal lands means all lands within the exterior boundaries of any Indian reservation.
Office of Native American Affairs
Establishment
There is established within the Administration the Office of Native American Affairs, which, under the direction of the Assistant Administrator, shall implement the programs of the Administration for the development of business enterprises by Native Americans.
Purpose
The purpose of the Office of Native American Affairs is to assist Native American entrepreneurs to—
start, operate, and increase the business of small business concerns;
develop management and technical skills;
seek Federal procurement opportunities;
increase employment opportunities for Native Americans through the establishment and expansion of small business concerns; and
increase the access of Native Americans to capital markets.
Assistant Administrator
Appointment
The Administrator shall appoint a qualified individual to serve as Assistant Administrator of the Office of Native American Affairs in accordance with this paragraph.
Qualifications
The Assistant Administrator appointed under subparagraph (A) shall have—
knowledge of Native American culture; and
experience providing culturally tailored small business development assistance to Native Americans.
Employment status
The Administrator shall establish the position of Assistant Administrator as—
a position at GS–15 of the General Schedule; or
a Senior Executive Service position to be filled by a noncareer appointee, as defined under section 3132(a)(7) of title 5, United States Code.
Responsibilities and duties
The Assistant Administrator shall—
in consultation with the Associate Administrator for Entrepreneurial Development, administer and manage the Native American Small Business Development program established under this section;
recommend the annual administrative and program budgets for the Office of Native American Affairs;
consult with Native American business centers in carrying out the program established under this section;
recommend appropriate funding levels;
review the annual budgets submitted by each applicant for the Native American Small Business Development program;
select applicants to participate in the program under this section;
implement this section; and
maintain a clearinghouse for the dissemination and exchange of information between Native American business centers.
Consultation requirements
In carrying out the responsibilities and duties described in this paragraph, the Assistant Administrator shall confer with and seek the advice of—
officials of the Administration working in areas served by Native American business centers;
representatives of Indian tribes;
tribal colleges; and
Alaska Native corporations.
Native American small business development program
Authorization
In general
The Administration, through the Office of Native American Affairs, shall provide financial assistance to eligible applicants to create Native American business centers in accordance with this section.
Use of funds
The financial and resource assistance provided under this subsection shall be used to establish a Native American business center to overcome obstacles impeding the creation, development, and expansion of small business concerns, in accordance with this section, by—
reservation-based American Indians; and
Alaska Natives.
5-Year projects
In general
Each Native American business center that receives assistance under paragraph (1)(A) shall conduct a 5-year project that offers culturally tailored business development assistance in the form of—
financial education, including training and counseling in—
applying for and securing business credit and investment capital;
preparing and presenting financial statements; and
managing cash flow and other financial operations of a business concern;
management education, including training and counseling in planning, organizing, staffing, directing, and controlling each major activity and function of a small business concern; and
marketing education, including training and counseling in—
identifying and segmenting domestic and international market opportunities;
preparing and executing marketing plans;
developing pricing strategies;
locating contract opportunities;
negotiating contracts; and
utilizing varying public relations and advertising techniques.
Business development assistance recipients
The business development assistance under subparagraph (A) shall be offered to prospective and current owners of small business concerns that are owned by—
Indians or Indian tribes, and located on or near tribal lands; or
Alaska Natives or Alaska Native corporations.
Form of Federal financial assistance
Documentation
In general
The financial assistance to Native American business centers authorized under this subsection may be made by grant, contract, or cooperative agreement.
Exception
Financial assistance under this subsection to Alaska Native corporations may only be made by grant or cooperative agreement.
Payments
Timing
Payments made under this subsection may be disbursed in periodic installments, at the request of the recipient.
Advance
The Administrator may disburse not more than 25 percent of the annual amount of Federal financial assistance awarded to a Native American small business center after notice of the award has been issued.
Federal share
In general
Initial financial assistance
Except as provided in subclause (II), an eligible applicant that receives financial assistance under this subsection shall provide non-Federal contributions for the operation of the Native American business center established by the eligible applicant in an amount equal to—
in each of the first and second years of the project, not less than 33 percent of the amount of the financial assistance received under this subsection; and
in each of the third through fifth years of the project, not less than 50 percent of the amount of the financial assistance received under this subsection.
Renewals
An eligible applicant that receives a renewal of financial assistance under this subsection shall provide non-Federal contributions for the operation of a Native American business center established by the eligible applicant in an amount equal to not less than 50 percent of the amount of the financial assistance received under this subsection.
Contract and cooperative agreement authority
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 underserved small business concerns located on or near tribal lands, to the extent that such contract or cooperative agreement is consistent with and does not duplicate the terms of any assistance received by the Native American business center from the Administration.
Application process
Submission of a 5-year plan
Each applicant for assistance under paragraph (1) shall submit a 5-year plan to the Administration on proposed assistance and training activities.
Criteria
In general
The Administrator shall evaluate applicants for financial assistance under this subsection in accordance with selection criteria that are—
established before the date on which eligible applicants are required to submit the applications;
stated in terms of relative importance; and
publicly available and stated in each solicitation for applications for financial assistance under this subsection made by the Administrator.
Considerations
The criteria required by this subparagraph shall include—
the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of current or potential owners of Native American small business concerns;
the ability of the applicant to commence a project within a minimum amount of time;
the ability of the applicant to provide quality training and services to a significant number of Native Americans;
previous assistance from the Administration to provide services in Native American communities;
the proposed location for the Native American business center, with priority given based on the proximity of the center to the population being served and to achieve a broad geographic dispersion of the centers; and
demonstrated experience in providing technical assistance, including financial, marketing, and management assistance.
Conditions for participation
Each eligible applicant desiring a grant under this subsection shall submit an application to the Administrator that contains—
a certification that the applicant—
is an eligible applicant;
employs an executive director or program manager to manage the Native American business center; and
agrees—
to a site visit by the Administrator as part of the final selection process;
to an annual programmatic and financial examination; and
to the maximum extent practicable, to remedy any problems identified pursuant to that site visit or examination;
information demonstrating that the applicant has the ability and resources to meet the needs, including cultural needs, of the Native Americans to be served by the grant;
information relating to proposed assistance that the grant will provide, including—
the number of individuals to be assisted; and
the number of hours of counseling, training, and workshops to be provided;
information demonstrating the effectiveness and experience of the applicant in—
conducting financial, management, and marketing assistance programs designed to educate or improve the business skills of, current or prospective Native American business owners;
providing training and services to a representative number of Native Americans;
using resource partners of the Administration and other entities, including universities, Indian tribes, or tribal colleges; and
the prudent management of finances and staffing;
the location where the applicant will provide training and services to Native Americans;
a 5-year plan that describes—
the number of Native Americans and Native American small business concerns to be served by the grant;
if the Native American business center is located in the continental United States, the number of Native Americans to be served by the grant; and
the training and services to be provided to a representative number of Native Americans; and
if the applicant is a joint project—
a certification that each participant in the joint project is an eligible applicant;
information demonstrating a record of commitment to providing assistance to Native Americans; and
information demonstrating that the participants in the joint project have the ability and resources to meet the needs, including the cultural needs, of the Native Americans to be served by the grant.
Review of applications
The Administrator shall approve or disapprove each completed application submitted under this subsection not later than 60 days after the date on which the eligible applicant submits the application.
Program examination
In general
Each Native American business center established under this subsection shall annually provide to the Administrator an itemized cost breakdown of actual expenditures made during the preceding year.
Administration action
Based on information received under subparagraph (A), the Administration shall—
develop and implement an annual programmatic and financial examination of each Native American business center assisted pursuant to this subsection; and
analyze the results of each examination conducted under clause (i) to determine the programmatic and financial viability of each Native American business center.
Conditions for continued funding
In determining whether to renew a grant, contract, or cooperative agreement with a Native American business center, the Administration—
shall consider the results of the most recent examination of the center under subparagraph (B), and, to a lesser extent, previous examinations; and
may withhold such renewal, if the Administrator determines that—
the center has failed to provide the information required to be provided under subparagraph (A), or the information provided by the center is inadequate;
the center has failed to provide adequate information required to be provided by the center for purposes of the report of the Administrator under subparagraph (E);
the center has failed to comply with a requirement for participation in the Native American small business development program, as determined by the Administrator, including—
failure to acquire or properly document a non-Federal share;
failure to establish an appropriate partnership or program for marketing and outreach to reach new Native American small business concerns;
failure to achieve results described in a financial assistance agreement; and
failure to provide to the Administrator a description of the amount and sources of any non-Federal funding received by the center;
the center has failed to carry out the 5-year plan under in paragraph (6)(F); or
the center cannot make the certification described in paragraph (6)(A).
Continuing contract and cooperative agreement authority
In general
The authority of the Administrator to enter into contracts or cooperative agreements in accordance with this subsection shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts.
Renewal
After the Administrator has entered into a contract or cooperative agreement with any Native American business center under this subsection, the Administrator may not suspend, terminate, or fail to renew or extend any such contract or cooperative agreement unless the Administrator provides the center with written notification setting forth the reasons therefor and affords the center an opportunity for a hearing, appeal, or other administrative proceeding under chapter 5 of title 5, United States Code.
Management report
In general
The Administration shall prepare and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an annual report on the effectiveness of all projects conducted by Native American business centers under this subsection and any pilot programs administered by the Office of Native American Affairs.
Contents
Each report submitted under clause (i) shall include, with respect to each Native American business center receiving financial assistance under this subsection—
the number of individuals receiving assistance from the Native American business center;
the number of startup business concerns created with the assistance of the Native American business center;
the number of existing businesses in the area served by the Native American business center seeking to expand employment;
the number of jobs created or maintained, on an annual basis, by Native American small business concerns assisted by the center since receiving funding under this Act;
to the maximum extent practicable, the amount of the capital investment and loan financing used by emerging and expanding businesses that were assisted by a Native American business center; and
the most recent examination, as required under subparagraph (B), and the determination made by the Administration under that subparagraph.
Annual report
Each Native American business center receiving financial assistance under this subsection shall submit to the Administrator an annual report on the services provided with the financial assistance, including—
the number of individuals assisted, categorized by ethnicity;
the number of hours spent providing counseling and training for those individuals;
the number of startup small business concerns created or maintained with the assistance of the Native American business center;
the gross receipts of small business concerns assisted by the Native American business center;
the number of jobs created or maintained by small business concerns assisted by the Native American business center; and
the number of jobs for Native Americans created or maintained at small business concerns assisted by the Native American business center.
Record retention
Applications
The Administrator shall maintain a copy of each application submitted under this subsection for not less than 7 years.
Annual reports
The Administrator shall maintain copies of the certification submitted under paragraph (6)(A) indefinitely.
Authorization of appropriations
There is authorized to be appropriated $10,000,000 for each of fiscal years 2010 through 2012, to carry out the Native American Small Business Development program.
.
Study and report on Native American business centers
In general
The Comptroller General of the United States shall conduct a broad study of the unique economic issues facing Native American business centers to identify—
the difficulties such centers face in raising non-Federal funds;
the difficulties such centers face competing for financial assistance, non-Federal funds, or other types of assistance;
the difficulties such centers face in writing grant proposals; and
other difficulties such centers face because of the economy in the area in which such centers are located.
Report
Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to Congress a report regarding the results of the study conducted under subsection (a), which shall include recommendations, if any, regarding how to—
address the unique difficulties Native American business centers face because of the type of area in which such centers are located;
expand the presence of, and increase the services provided by, Native American business centers; and
best use technology and other resources to better serve Native American business owners.
Definition of Native American business center
In this section, the term Native American business center has the meaning given that term in section 44(a) of the Small Business Act, as added by this Act.
Office of Native American Affairs pilot program
Definition
In this section, the term Indian tribe means any band, nation, or organized group or community of Indians located in the contiguous United States, and the Metlakatla Indian Community, whose members are recognized as eligible for the services provided to Indians by the Secretary of the Interior because of their status as Indians.
Authorization
The Office of Native American Affairs of the Administration may conduct a pilot program—
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
to provide assistance to Indian tribes, through an interagency working group, in identifying and implementing economic development opportunities available from the Federal Government and private enterprise, including—
the Administration;
the Department of Energy;
the Environmental Protection Agency;
the Department of Commerce;
the Federal Communications Commission;
the Department of Justice;
the Department of Labor;
the Office of National Drug Control Policy; and
the Department of Agriculture.
Termination of program
The authority to conduct a pilot program under this section shall terminate on September 30, 2012.
Report
Not later than September 30, 2012, the Office of Native American Affairs shall submit a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the effectiveness of the self-assessment tool developed under subsection (b)(1).
Veterans' business center program
Veterans' business center program; Office of Veterans Business Development
In general
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by striking subsection (f) and inserting the following:
Online coordination
Definition
In this subsection, the term veterans' assistance provider means—
a veterans' business center established under subsection (g);
an employee of the Administration assigned to the Office of Veterans Business Development; and
a veterans business ownership representative designated under subsection (g)(13)(B).
Establishment
The Associate Administrator shall establish an online mechanism to—
provide information that assists veterans' assistance providers in carrying out the activities of the veterans' assistance providers; and
coordinate and leverage the work of the veterans' assistance providers, including by allowing a veterans' assistance provider to—
distribute best practices and other materials;
communicate with other veterans' assistance providers regarding the activities of the veterans' assistance provider on behalf of veterans; and
pose questions to and request input from other veterans' assistance providers.
Veterans' Business Center Program
Definitions
In this subsection—
the term active duty has the meaning given that term in section 101 of title 10, United States Code;
the term private nonprofit organization means an entity that is described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code;
the term Reservist means a member of a reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code;
the term Service Corps of Retired Executives means the Service Corps of Retired Executives authorized under section 8(b)(1);
the term small business concern owned and controlled by veterans—
has the same meaning as in section 3(q); and
includes a small business concern—
not less than 51 percent of which is owned by one or more spouses of veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more spouses of veterans; and
the management and daily business operations of which are controlled by one or more spouses of veterans;
the term spouse, relating to a veteran, service-disabled veteran, or Reservist, includes an individual who is the spouse of a veteran, service-disabled veteran, or Reservist on the date on which the veteran, service-disabled veteran, or Reservist died;
the term veterans' business center program means the program established under paragraph (2)(A); and
the term women’s business center means a women’s business center described in section 29.
Program Established
In general
The Administrator, acting through the Associate Administrator, shall establish a veterans' business center program, under which the Associate Administrator may provide financial assistance to a private nonprofit organization to conduct a 5-year project for the benefit of small business concerns owned and controlled by veterans, which may be renewed for one or more additional 5-year periods.
Form of Financial Assistance
Financial assistance under this subsection may be in the form of a grant, a contract, or a cooperative agreement.
Veterans' business centers
Each private nonprofit organization that receives financial assistance under this subsection shall establish or operate a veterans' business center (which may include establishing or operating satellite offices in the region described in paragraph (5) served by that private nonprofit organization) that provides to veterans (including service-disabled veterans), Reservists, and the spouses of veterans (including service-disabled veterans) and Reservists—
financial advice, including training and counseling on applying for and securing business credit and investment capital, preparing and presenting financial statements, and managing cash flow and other financial operations of a small business concern;
management advice, including training and counseling on the planning, organization, staffing, direction, and control of each major activity and function of a small business concern;
marketing advice, including training and counseling on identifying and segmenting domestic and international market opportunities, preparing and executing marketing plans, developing pricing strategies, locating contract opportunities, negotiating contracts, and using public relations and advertising techniques; and
advice, including training and counseling, for Reservists and the spouses of Reservists.
Application
In general
A private nonprofit organization desiring to receive financial assistance under this subsection shall submit an application to the Associate Administrator at such time and in such manner as the Associate Administrator may require.
5-year plan
Each application described in subparagraph (A) shall include a 5-year plan on proposed fundraising and training activities relating to the veterans' business center.
Determination and Notification
Not later than 60 days after the date on which a private nonprofit organization submits an application under subparagraph (A), the Associate Administrator shall approve or deny the application and notify the applicant of the determination.
Availability of application
The Associate Administrator shall make every effort to make the application under subparagraph (A) available online.
Eligibility
The Associate Administrator may select to receive financial assistance under this subsection—
a Veterans Business Outreach Center established by the Administrator under section 8(b)(17) on or before the day before the date of enactment of this subsection;
a private nonprofit organization that—
received financial assistance in fiscal year 2006 from the National Veterans Business Development Corporation established under section 33; and
is in operation on the date of enactment of this subsection; or
other private nonprofit organizations located in various regions of the United States, as the Associate Administrator determines is appropriate.
Selection criteria
In general
The Associate Administrator shall establish selection criteria, stated in terms of relative importance, to evaluate and rank applicants under paragraph (5)(C) for financial assistance under this subsection.
Criteria
The selection criteria established under this paragraph shall include—
the experience of the applicant in conducting programs or ongoing efforts designed to impart or upgrade the business skills of veterans, and the spouses of veterans, who own or may own small business concerns;
for an applicant for initial financial assistance under this subsection—
the ability of the applicant to begin operating a veterans' business center within a minimum amount of time; and
the geographic region to be served by the veterans business center;
the demonstrated ability of the applicant to—
provide managerial counseling and technical assistance to entrepreneurs; and
coordinate services provided by veterans services organizations and other public or private entities; and
for any applicant for a renewal of financial assistance under this subsection, the results of the most recent examination under paragraph (10) of the veterans' business center operated by the applicant.
Criteria publicly available
The Associate Administrator shall—
make publicly available the selection criteria established under this paragraph; and
include the criteria in each solicitation for applications for financial assistance under this subsection.
Amount of assistance
The amount of financial assistance provided under this subsection to a private nonprofit organization for each fiscal year shall be—
not less than $150,000; and
not more than $200,000.
Federal share
In general
Initial financial assistance
Except as provided in clause (ii), a private nonprofit organization that receives financial assistance under this subsection shall provide non-Federal contributions for the operation of the veterans business center established by the private nonprofit organization in an amount equal to—
in each of the first and second years of the project, not less than 33 percent of the amount of the financial assistance received under this subsection; and
in each of the third through fifth years of the project, not less than 50 percent of the amount of the financial assistance received under this subsection.
Renewals
A private nonprofit organization that receives a renewal of financial assistance under this subsection shall provide non-Federal contributions for the operation of the veterans business center established by the private nonprofit organization in an amount equal to not less than 50 percent of the amount of the financial assistance received under this subsection.
Form of non-federal share
Not more than 50 percent of the non-Federal share for a project carried out using financial assistance under this subsection may be in the form of in-kind contributions.
Timing of disbursement
The Associate Administrator may disburse not more than 25 percent of the financial assistance awarded to a private nonprofit organization before the private nonprofit organization obtains the non-Federal share required under this paragraph with respect to that award.
Failure to obtain non-federal funding
In general
If a private nonprofit organization that receives financial assistance under this subsection fails to obtain the non-Federal share required under this paragraph during any fiscal year, the private nonprofit organization may not receive a disbursement under this subsection in a subsequent fiscal year or a disbursement for any other project funded by the Administration, unless the Administrator makes a written determination that the private nonprofit organization will be able to obtain a non-Federal contribution.
Restoration
A private nonprofit organization prohibited from receiving a disbursement under clause (i) in a fiscal year may receive financial assistance in a subsequent fiscal year if the organization obtains the non-Federal share required under this paragraph for the subsequent fiscal year.
Contract authority
A veterans' business center may enter into a contract with a Federal department or agency to provide specific assistance to veterans, service-disabled veterans, Reservists, or the spouses of veterans, service-disabled veterans, or Reservists. Performance of such contract shall not hinder the veterans' business center in carrying out the terms of the grant received by the veterans' business centers from the Administrator.
Examination and determination of viability
Examination
In general
The Associate Administrator shall conduct an annual examination of the programs and finances of each veterans' business center established or operated using financial assistance under this subsection.
Factors
In conducting the examination under clause (i), the Associate Administrator shall consider whether the veterans business center has failed—
to provide the information required to be provided under subparagraph (B), or the information provided by the center is inadequate;
the center has failed to comply with a requirement for participation in the veterans' business center program, as determined by the Assistant Administrator, including—
failure to acquire or properly document a non-Federal share;
failure to establish an appropriate partnership or program for marketing and outreach to small business concerns;
failure to achieve results described in a financial assistance agreement; and
failure to provide to the Administrator a description of the amount and sources of any non-Federal funding received by the center;
to carry out the 5-year plan under in paragraph (4)(B); or
to meet the eligibility requirements under paragraph (5).
Information provided
In the course of an examination under subparagraph (A), the veterans' business center shall provide to the Associate Administrator—
an itemized cost breakdown of actual expenditures for costs incurred during the most recent full fiscal year;
documentation of the amount of non-Federal contributions obtained and expended by the veterans' business center during the most recent full fiscal year; and
with respect to any in-kind contribution under paragraph (8)(B), verification of the existence and valuation of such contributions.
Determination of viability
The Associate Administrator shall analyze the results of each examination under this paragraph and, based on that analysis, make a determination regarding the viability of the programs and finances of each veterans' business center.
Discontinuation of funding
In general
The Associate Administrator may discontinue an award of financial assistance to a private nonprofit organization at any time if the Associate Administrator determines under subparagraph (C) that the veterans' business center operated by that organization is not viable.
Restoration
The Associate Administrator may continue to provide financial assistance to a private nonprofit organization in a subsequent fiscal year if the Associate Administrator determines under subparagraph (C) that the veterans' business center is viable.
Privacy requirements
In general
Except as provided in subparagraph (B), a veterans' business center established or operated using financial assistance provided under this subsection may not disclose the name, address, or telephone number of any individual or small business concern that receives advice from the veterans' business center without the consent of the individual or small business concern.
Exception
A veterans' business center may disclose information described in subparagraph (A)—
if the Administrator or Associate Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or
to the extent that the Administrator or Associate Administrator determines that such a disclosure is necessary to conduct a financial audit of a veterans' business center.
Administration use of information
This paragraph does not—
restrict access by the Administrator to program activity data; or
prevent the Administrator from using information not described in subparagraph (A) to conduct surveys of individuals or small business concerns that receive advice from a veterans' business center.
Regulations
The Administrator shall issue regulations to establish standards for requiring disclosures under subparagraph (B)(ii).
Report
In general
Not later than 60 days after the end of each fiscal year, the Associate Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effectiveness of the veterans' business center program in each region during the most recent full fiscal year.
Contents
Each report under this paragraph shall include, at a minimum, for each veterans' business center established or operated using financial assistance provided under this subsection—
the number of individuals receiving assistance from the veterans' business center, including the number of such individuals who are—
veterans or spouses of veterans;
service-disabled veterans or spouses of service-disabled veterans; or
Reservists or spouses of Reservists;
the number of startup small business concerns formed by individuals receiving assistance from the veterans' business center, including—
veterans or spouses of veterans;
service-disabled veterans or spouses of service-disabled veterans; or
Reservists or spouses of Reservists;
the gross receipts of small business concerns that receive advice from the veterans' business center;
the employment increases or decreases of small business concerns that receive advice from the veterans' business center;
to the maximum extent practicable, the increases or decreases in profits of small business concerns that receive advice from the veterans' business center; and
the results of the examination of the veterans' business center under paragraph (10).
Coordination of efforts and consultation
Coordination and consultation
To the extent practicable, the Associate Administrator and each private nonprofit organization that receives financial assistance under this subsection shall—
coordinate outreach and other activities with other programs of the Administration and the programs of other Federal agencies;
consult with technical representatives of the district offices of the Administration in carrying out activities using financial assistance under this subsection; and
provide information to the veterans business ownership representatives designated under subparagraph (B) and coordinate with the veterans business ownership representatives to increase the ability of the veterans business ownership representatives to provide services throughout the area served by the veterans business ownership representatives.
Veterans business ownership representatives
Designation
The Administrator shall designate not fewer than 1 individual in each district office of the Administration as a veterans business ownership representative, who shall communicate and coordinate activities of the district office with private nonprofit organizations that receive financial assistance under this subsection.
Initial designation
The first individual in each district office of the Administration designated by the Administrator as a veterans business ownership representative under clause (i) shall be an individual that is employed by the Administration on the date of enactment of this subsection.
Existing contracts
An award of financial assistance under this subsection shall not void any contract between a private nonprofit organization and the Administration that is in effect on the date of such award.
Authorization of appropriations
There are authorized to be appropriated—
to carry out subsections (a) through (f), $2,000,000 for each of fiscal years 2010 through 2012; and
to carry out subsection (g)—
$8,000,000 for fiscal year 2010;
$8,500,000 for fiscal year 2011; and
$9,000,000 for fiscal year 2012.
.
GAO Report
Definitions
In this subsection—
the term small business concern owned and controlled by veterans has the meaning given that term in section 32(g) of the Small Business Act, as added by this section; and
the term veterans’ business center program means the veterans’ business center program established under section 32(g) of the Small Business Act, as added by this section.
Report
In general
Not later than 60 days after the end of the second fiscal year beginning after the date on which the veterans’ business center program is established, the Comptroller General of the United States shall evaluate the effectiveness of the veterans’ business center program, and submit to Congress a report on the results of that evaluation.
Contents
The report submitted under subparagraph (A) shall include—
an assessment of—
the use of amounts made available to carry out the veterans’ business center program;
the effectiveness of the services provided by each private nonprofit organization receiving financial assistance under the veterans’ business center program;
whether the services described in clause (ii) are duplicative of services provided by other veteran service organizations, programs of the Administration, or programs of another Federal department or agency and, if so, recommendations regarding how to alleviate the duplication of the services; and
whether there are areas of the United States in which there are not adequate entrepreneurial services for small business concerns owned and controlled by veterans and, if so, whether there is a veterans' business center established under the veterans’ business center program providing services to that area; and
recommendations, if any, for improving the veteran's business center program.
Reporting requirement for interagency task force
Section 32(c) of the Small Business Act (15 U.S.C. 657b(c)) is amended by adding at the end the following:
Report
Not less frequently than twice each year, the Administrator shall submit to Congress a report on the appointments made to and activities of the task force.
.
Repeal and renewal of grants
Definition
In this section, the term covered grant, contract, or cooperative agreement means a grant, contract, or cooperative agreement that was—
made or entered into under section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)); and
in effect on or before the date described in subsection (b)(2).
Repeal
In general
Section 8(b) of the Small Business Act (15 U.S.C. 637(b)) is amended—
in paragraph (15), by
adding and
at the end;
in paragraph (16), by
striking ; and
and inserting a period; and
by striking paragraph (17).
Effective date
The amendments made by paragraph (1) shall take effect 60 days after the date of enactment of this Act.
Transitional rules
In General
Notwithstanding any other provision of law, a covered grant, contract, or cooperative agreement shall remain in full force and effect under the terms, and for the duration, of the covered grant, contract, or agreement.
Additional requirements
Any organization that was awarded or entered into a covered grant, contract, or cooperative agreement shall be subject to the requirements of section 32(g) of the Small Business Act (15 U.S.C. 657b(g)) (as added by this Act).
Renewal of financial assistance
An organization that was awarded or entered into a covered grant, contract, or cooperative agreement may apply for a renewal of the grant, contract, or agreement under the terms and conditions described in section 32(g) of the Small Business Act (15 U.S.C. 657b(g)) (as added by this Act).
Program for investment in microentrepreneurs
PRIME reauthorization
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
by redesignating sections 37 through 44 as sections 38 through 45, respectively; and
by inserting after section 36 the following:
Program for investment in microentrepreneurs
Definitions
In this section:
Associate Administrator
The term Associate Administrator means the Associate Administrator for Entrepreneurial Development of the Administration.
Capacity building services
The term capacity building services means services provided to an organization that is, or that is in the process of becoming, a microenterprise development organization or program, for the purpose of enhancing the ability of the organization to provide training and services to disadvantaged entrepreneurs.
Collaborative
The term collaborative means 2 or more nonprofit entities that agree to act jointly as a qualified organization under this section.
Disadvantaged entrepreneur
The term disadvantaged entrepreneur means a microentrepreneur that—
is a low-income person;
is a very low-income person; or
lacks adequate access to capital or other resources essential for business success, or is economically disadvantaged, as determined by the Administrator.
Disadvantaged native american entrepreneur
The term disadvantaged Native American entrepreneur means a disadvantaged entrepreneur who is also a member of an Indian Tribe.
Indian tribe
The term Indian tribe has the meaning given that term in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)).
Intermediary
The term intermediary means a private, nonprofit entity that seeks to serve microenterprise development organizations and programs, as authorized under subsection (d).
Low-income person
The term low-income person means a person having an income, adjusted for family size, of not more than—
for metropolitan areas, 80 percent of the area median income; and
for nonmetropolitan areas, the greater of—
80 percent of the area median income; or
80 percent of the statewide nonmetropolitan area median income.
Microentrepreneur
The term microentrepreneur means the owner or developer of a microenterprise.
Microenterprise
The term microenterprise means a sole proprietorship, partnership, or corporation that—
has not more than 4 employees; and
generally lacks access to conventional loans, equity, or other banking services.
Microenterprise development organization or program
The term microenterprise development organization or program means a nonprofit entity, or a program administered by such an entity, including community development corporations or other nonprofit development organizations and social service organizations, that provides services to disadvantaged entrepreneurs.
Training and technical assistance
The term training and technical assistance means services and support provided to disadvantaged entrepreneurs, such as assistance for the purpose of enhancing business planning, marketing, management, financial management skills, and assistance for the purpose of accessing financial services.
Qualified organization
The term qualified organization means—
a nonprofit microenterprise development organization or program (or a group or collaborative thereof) that has a demonstrated record of delivering microenterprise services to disadvantaged entrepreneurs;
an intermediary;
a microenterprise development organization or program that is—
accountable to a local community; and
working in conjunction with a State or local government or Indian tribe; or
an Indian tribe acting on its own, if the Indian tribe certifies that no private organization or program referred to in this paragraph exists within its jurisdiction.
Very low-income person
The term very low-income person means an individual having an income, adjusted for family size, of not more than 150 percent of the poverty line (as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by that section).
Establishment of program
The Associate Administrator shall establish a microenterprise training and technical assistance and capacity building services grant program to provide grants to qualified organizations in accordance with this section.
Uses of assistance
A qualified organization shall use a grant made under this section—
to provide training and technical assistance to disadvantaged entrepreneurs;
to provide training and technical assistance and capacity building services to microenterprise development organizations and programs and groups of such organizations and programs to assist such organizations and programs in developing microenterprise training and services;
to aid in researching and developing the best practices in the field of microenterprise and training and technical assistance programs for disadvantaged entrepreneurs;
to provide training and technical assistance to disadvantaged Native American entrepreneurs and prospective disadvantaged Native American entrepreneurs; and
for such other activities as the Associate Administrator determines are consistent with the purposes of this section.
Allocation of grants; subgrants
Allocation of grants
In general
The Associate Administrator shall allocate assistance from the Administration under this section to ensure that—
not less than 75 percent of amounts made available to the Administrator for grants under this section are used for activities described in subsection (c)(1); and
not less than 15 percent of amounts made available to the Administrator for grants under this section are used for activities described in subsection (c)(2).
Limit on individual assistance
No single person may receive more than 10 percent of the total amounts made available for grants under this section for a single fiscal year.
Targeted assistance
The Associate Administrator shall ensure that not less than 50 percent of the total amounts made available for grants under this section are used to benefit very low-income persons, including very low-income persons residing on Indian reservations.
Subgrants authorized
In general
A qualified organization receiving a grant under this section may provide subgrants using that grant to qualified organizations that are small or emerging microenterprises and programs, subject to such rules and regulations as the Associate Administrator determines are appropriate.
Limit on administrative expenses
Not more than 7.5 percent of the amount received by a qualified organization under a grant under this section may be used for administrative expenses in connection with the making of subgrants under subparagraph (A).
Diversity
In making grants under this section, the Associate Administrator shall ensure that grant recipients include both large and small microenterprise organizations that serve urban, rural, and Indian tribal communities and diverse populations.
Prohibition on preferential consideration of certain administration program participants
In making grants under this section, the Associate Administrator shall ensure that any application made by a qualified organization that is a participant in the program established under section 7(m) does not receive preferential consideration over applications from other qualified organizations that are not participants in the program.
Federal share
In general
A qualified organization that receives a grant under this section shall provide non-Federal contributions to carry out the activities described in subsection (c) in an amount equal to not less than 50 percent of the amount of the grant received under this section.
Sources of non-Federal share
The non-Federal share of the cost of a project using a grant under this section may be in the form of fees, grants, gifts, funds from loan sources, or in-kind resources of an applicant from public or private sources.
Exception
In general
If the Associate Administrator determines that an applicant for assistance under this section has severe constraints on available sources of non-Federal funds, the Associate Administrator may reduce or eliminate the requirement under paragraph (1).
Limitation
Not more than 10 percent of the total funds made available from the Administration in any fiscal year to carry out this section may be excepted under subparagraph (A) from the requirement under paragraph (1).
Applications for assistance
An application for a grant under this section shall be submitted in such form and in accordance with such procedures as the Associate Administrator shall establish.
Recordkeeping and reporting
In general
Each qualified organization that receives a grant under this section shall—
submit to the Administration not less frequently than once every 18-month period, financial statements audited by an independent certified public accountant;
submit an annual report to the Administration on the activities of the qualified organization; and
keep such records as the Associate Administrator determines are necessary to disclose the manner in which amounts made available under a grant under this section are used.
Access
Upon the request of the Associate Administrator, the Associate Administrator shall have access to any record of any qualified organization that receives a grant under this section, for the purpose of determining compliance with this section.
Data collection
Each qualified organization that receives a grant under this section shall collect information relating to, as applicable—
the number of individuals counseled or trained by the organization;
the number of hours of counseling provided by the organization;
the number of startup small business concerns formed with the assistance of the organization;
the number of small business concerns expanded with the assistance of the organization;
the number of low-income individuals counseled or trained by the organization; and
the number of very low-income individuals counseled or trained by the organization.
Authorization of appropriations
In general
There are authorized to be appropriated to the Administrator $15,000,000 for each of fiscal years 2010 through 2012 to carry out this section, which shall remain available until expended.
Certain programs
In addition to the amount authorized under paragraph (1), there are authorized to be appropriated to the Administrator $2,000,000 for each of fiscal years 2010 through 2012 to carry out subsection (c)(4), which shall remain available until expended.
.
Conforming repeal and amendments
Conforming repeal
Subtitle C of title I of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6901 et seq.) is repealed.
Conforming amendments
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
in section 38(d) (15
U.S.C. 657i(d)), as so redesignated, by striking section 43
and
inserting section 44
;
in section 41(d) (15
U.S.C. 657l(d)), as so redesignated, by striking section 43
and
inserting section 44
; and
in section 42(b) (15
U.S.C. 657m(b)), as so redesignated, by striking section 43
and
inserting section 44
.
References
All references in Federal law, other than
section 504 of this Act, to the Program for Investment in
Microentrepreneurs Act of 1999
or the PRIME Act
shall be
deemed to be references to section 37 of the Small Business Act, as added by
this Act.
Rule of construction
Nothing in this title or the amendments made by this title shall affect any grant or assistance provided under the Program for Investment in Microentrepreneurs Act of 1999 (15 U.S.C. 6901 et seq.), before the date of enactment of this Act, and any such grant or assistance shall be subject to the Program for Investment in Microentrepreneurs Act of 1999, as in effect on the day before the date of enactment of this Act.
Other provisions
Institutions of higher education
In general
Section 21(a)(1) of the Small Business Act (15 U.S.C.
648(a)(1)) is amended by striking : Provided,
That
and all that follows through on such date.
and inserting the following: . On and after December 31, 2010, the
Administration may only make a grant under this paragraph to an applicant that
is an institution of higher education, as defined in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)) that is accredited (and not
merely in preaccreditation status) by a nationally recognized accrediting
agency or association, recognized by the Secretary of Education for such
purpose in accordance with section 496 of that Act (20 U.S.C. 1099b), or to a
women's business center operating pursuant to section 29 as a small business
development center, unless the applicant was receiving financial assistance
(including a contract or cooperative agreement) on December 31,
2010.
.
Effective date
The amendment made by subsection (a) shall take effect on December 31, 2010.
Health insurance options information for small business concerns
Definitions
In this section—
the term grant program means the small business health insurance information grant program established under subsection (b)(1); and
the term resource partner means—
the association of small business development centers authorized to be established under section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A));
the Association of Women's Business Centers;
the Service Corps of Retired Executives authorized by section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)); and
1 veterans business center (as that term is used in section 32(g) of the Small Business Act (15 U.S.C. 657b(g)), as added by this Act), as determined by the Associate Administrator for Entrepreneurial Development.
Small Business Health Insurance Information Program
Program established
The Administrator, acting through the Associate Administrator for Entrepreneurial Development, shall establish a program to make grants to resource partners 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.
Grant recipients
The Associate Administrator for Entrepreneurial Development shall make 1 grant to each of the resource partners.
Grant amounts
The grants made under this section shall—
be made from funds appropriated to the Administrator to carry out the activities of the Office of Entrepreneurial Development; and
not exceed a total amount of $5,000,000.
Contract
As a condition of receiving a grant under this section, each resource partner shall agree, by contract with the Administration—
to begin to use the funds in accordance with paragraph (5) not later than 1 year after the date on which the resource partner receives the grant; and
to return any funds that have not been used, if the Administrator determines that the resource partner is not carrying out the grant program activities under paragraph (5)(A).
Use of funds
Grant program activities
A resource partner shall use funds provided under the grant program to create, in consultation with the Associate Administrator for Entrepreneurial Development of the Administration—
an online training program;
an online repository of health insurance information relevant to small business concerns;
a counseling curriculum that can be used in the physical location of the resource partner; and
materials containing relevant information that can be disbursed to owners of small business concerns throughout the country.
Content of materials
In general
In creating materials under the grant program, a resource partner shall evaluate and incorporate relevant portions of existing informational materials regarding health insurance options, including materials and resources developed by the National Association of Insurance Commissioners, the Kaiser Family Foundation, and the Healthcare Leadership Council.
Health insurance options
In incorporating information regarding health insurance options under clause (i), a resource partner shall provide neutral and objective information regarding health insurance options in the geographic area served by the resource partner, including traditional employer sponsored health insurance for the group insurance market, such as the health insurance options described in section 2791 of the Public Health Services Act (42 U.S.C. 300gg–91) or section 125 of the Internal Revenue Code of 1986, and Federal and State health insurance programs.
Review and Report
Review of grant program
The Associate Administrator for Entrepreneurial Development shall conduct a review of the effectiveness of the grant program.
Report
Not later than 2 years after the date on which all grants under the grant program are disbursed, the Associate Administrator for Entrepreneurial Development shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the results of the review under paragraph (1).
National Small Business Development Center Advisory Board
In general
Section 21(i)(1) of the Small Business Act (15 U.S.C. 648(i)(1)) is amended—
in the first sentence, by striking
nine members
and inserting 10 members
;
in the second sentence,
by striking six
and inserting the members who are not
from universities or their affiliates
;
by striking the third sentence; and
in the fourth sentence,
by inserting not less than
before
one-third
.
Incumbents
An individual serving as a member of the Board on the date of enactment of this Act may continue to serve on the Board until the end of the term of the member under section 21(i)(1) of the Small Business Act (15 U.S.C. 648(i)(1)), as in effect on the day before such date of enactment.
Privacy requirements for SCORE chapters
Section 8 of the Small Business Act (15 U.S.C. 637) is amended by striking subsection (c) and inserting the following:
Privacy requirements
In general
A chapter of the SCORE program authorized by subsection (b)(1) or an agent of such a chapter may not disclose the name, address, or telephone number of any individual or small business concern receiving assistance from that chapter or agent without the consent of such individual or small business concern, unless—
the Administrator is ordered to make such a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or
the Administrator determines such a disclosure to be necessary for the purpose of conducting a financial audit of a chapter of the SCORE program authorized by subsection (b)(1), in which case disclosure shall be limited to the information necessary for such audit.
Administrator use of information
This subsection shall not—
restrict the access of the Administrator to program activity data; or
prevent the Administrator from using client information to conduct client surveys.
Regulations
In general
The Administrator shall issue regulations to establish standards—
for disclosures with respect to financial audits under paragraph (1)(B); and
for client surveys under paragraph (2)(B), including standards for oversight of such surveys and for dissemination and use of client information.
Maximum privacy protection
Regulations under this paragraph shall, to the extent practicable, provide for the maximum amount of privacy protection.
Inspector general
Until the effective date of regulations under this paragraph, any client survey and the use of such information shall be approved by the Inspector General of the Administration who shall include such approval in the semi-annual report of the Inspector General.
.
National small business summit
In general
Not later than December 31, 2012, the President shall convene a National Small Business Summit to examine the present conditions and future of the community of small business concerns in the United States. The summit shall include owners of small business concerns, representatives of small business groups, labor, academia, the Federal Government, State governments, Indian tribes, Federal research and development agencies, and nonprofit policy groups concerned with the issues of small business concerns.
Report
Not later than 90 days after the date of the conclusion of the summit convened under subsection (a), the President shall issue a report on the results of the summit. The report shall identify key challenges and make recommendations for promoting entrepreneurship and the growth of small business concerns.
SCORE program
In general
Section 8(b)(1)(B) of
the Small Business Act (15 U.S.C. 637(b)(1)(B)) is amended by striking a
Service Corps of Retired Executives (SCORE)
and inserting the
SCORE
.
Technical and conforming amendments
In general
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
in section
7(m)(3)(A)(i)(VIII), by striking Service Corps of Retired
Executives
and inserting SCORE
; and
in section 33(b)(2), by
striking Service Corps of Retired Executives
and inserting
SCORE
.
Other law
Section 337(d)(2) of the Energy Policy and Conservation Act
(42 U.S.C. 6307(d)(2)) is amended by striking Service Corps of Retired
Executives (SCORE)
and inserting SCORE
.
References
Any reference to the Service Corps of Retired Executives established under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)), as in effect on the day before the date of enactment of this Act, in any law, rule, regulation, certificate, directive, instruction, or other official paper shall be considered to refer to the SCORE established under section 8(b)(1)(B) of the Small Business Act, as amended by this Act.
Assistance to out-of-state small businesses
Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is amended—
by striking (3) At
the discretion
and inserting the following:
Assistance to out-of-state small businesses
In general
At the discretion
; and
by adding at the end the following:
Disaster recovery assistance
In general
At the discretion of the Administrator, the Administrator may authorize a small business development center to provide assistance, as described in subsection (c), to small business concerns located outside of the State, without regard to geographic proximity, if the small business concerns are located in an area for which the President has declared a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122), during the period of the declaration.
Continuity of services
A small business development center that provides counselors to an area described in clause (i) shall, to the maximum extent practicable, ensure continuity of services in any State in which the small business development center otherwise provides services.
Access to disaster recovery facilities
For purposes of this subparagraph, the Administrator shall, to the maximum extent practicable, permit the personnel of a small business development center to use any site or facility designated by the Administrator for use to provide disaster recovery assistance.
.
Small business development centers
Portability grants
Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(viii)) is amended—
in the first sentence—
by striking From
the funds appropriated pursuant to clause (vii)
and inserting Of
the amounts made available to carry out this subparagraph in each fiscal
year
; and
by striking as a
result of a business or government facility down sizing or closing, which has
resulted in the loss of jobs or small business instability
and
inserting due to events that have resulted or will result in, the
downsizing or closing of a business or government facility
; and
by adding at the end
The Administrator may make a grant under this clause that exceeds
$100,000 to accommodate extraordinary events that the Administrator determines
have had a catastrophic impact on small business concerns in a
community.
.
Purposes
Section
21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)) is amended in the
first sentence by adding regulatory compliance and
after
counseling concerning
.
Evaluation of pilot programs
In general
Not later than 30 months after the date of disbursement of the first grant under a covered pilot program, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report evaluating the covered pilot program, including recommendations, if any, on possible improvements or modifications to the covered pilot program, including the feasibility of extending the covered pilot program to all small business development centers.
Definition of covered pilot program
In this section, the term covered pilot program means a pilot program relating to small business development centers established under this Act or an amendment made by this Act.
Educating and networking entrepreneurs through technology
Purpose
The purpose of this section is to provide a customized online community for potential and existing entrepreneurs to—
access entrepreneurship educational offerings of the Administration, other Federal and State agencies, and public and private entities;
engage in peer learning and networking; and
readily access information, community resources, service provider organizations, and individuals in the State in which the entrepreneurs reside who provide business assistance and capital.
Definition
In this section, the term qualified third-party vendor means an entity with—
experience in the planning, administration, and management of online communities and the delivery of technologically-driven education; and
the ability to connect community-based and public organizations to collaborate in the delivery of services and delivery of resources online.
Authority
In general
The Administrator shall establish and manage a program that—
provides online entrepreneurial training, ensuring that materials described in subsection (d) are timely and relevant to entrepreneurial development and can be successfully communicated remotely to an audience through the use of technology; and
includes a nationwide, online learning community of owners of small business concerns and entrepreneurs, customized by State.
Consultation and contracting
The Administrator shall consult or contract with resource partners of the Administration and qualified third-party vendors to carry out this section.
Communications technology
The Administrator shall ensure that the online entrepreneurial training and the online learning community established under this subsection allow entrepreneurs (including geographically isolated entrepreneurs with less than broadband technology access) in all States and the territories of the United States to network with the peers of the entrepreneurs and to access entrepreneurial training and technical assistance resources.
Materials
In carrying out this section, the Administrator—
shall, to the maximum extent practicable, use materials that incorporate quality resources and educational offerings of the Administration, the SCORE established under section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)), as amended by this Act, small business development centers, and other public and private entities; and
shall develop additional materials to address any areas not adequately addressed by the materials described in paragraph (1).
July 2, 2009
Reported with an amendment