H.R. 6445House117th Congress (2021-2023)Passed House

Small Business Development Centers Improvement Act of 2022

AI-Generated Summary

Updated February 8, 2026 at 8:59 AM UTC

The Small Business Development Centers Improvement Act of 2022 amends the Small Business Act to strengthen oversight, reporting, and funding of Small Business Development Centers (SBDCs). It requires detailed annual reports on entrepreneurial programs, expands marketing and fee‑collection abilities, and adjusts grant and funding rules. The changes affect the SBA, SBDCs, grant recipients, and the small businesses they serve.

Key Provisions

Requires the SBA Administrator to include comprehensive data on all entrepreneurial development activities and SBDC program metrics in an annual report to Congress.
Allows SBDC grant recipients to use up to 10% of their budget for marketing and advertising their services.
Mandates an annual report on data‑collection activities and creates a Data Collection Working Group to study and improve data‑collection methods for the SBDC program.
Permits SBDCs participating in private partnerships or co‑sponsorships to collect fees or other income related to those activities.
Limits SBA’s use of up to $600,000 per fiscal year for certain expenses under section 20(a)(1).
Expands confidentiality disclosures to include telephone numbers, email addresses, and the nature of assistance provided.
Restricts new SBDC grants to entities that held a grant before the law’s enactment, except for not‑for‑profit higher‑education institutions, while clarifying women’s business centers may still receive subgrants.
Sets formula grant appropriations at $175 million per fiscal year for 2022‑2025 and caps the reserve amount at $2 million.
Changes matching‑fund requirements to accept good‑faith assertions and removes the need for matching funds before federal reimbursement.
Modifies contract approval so contracts are approved unless the Associate Administrator certifies they will hinder the SBDC’s grant performance.
Requires the Associate Administrator for SBDCs to market the program and its participants to other federal small‑business assistance programs.

Legislative Activity

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13 earlier actions

SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Small Business and Entrepreneurship Committee

April 27, 2022

View full timeline

HouseIntro Referral

Introduced in House

January 20, 2022

HouseIntro Referral

Referred to the Committee on Small Business, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Small Business Committee

January 20, 2022

HouseCommittee

Committee Consideration and Mark-up Session Held.

Small Business Committee

February 3, 2022

HouseCommittee

Ordered to be Reported by Voice Vote.

Small Business Committee

February 3, 2022

HouseCommittee

Reported by the Committee on Small Business. H. Rept. 117-260, Part I.

Small Business Committee

March 8, 2022

HouseCommittee

Committee on the Budget discharged.

Budget Committee

March 8, 2022

HouseCalendars

Placed on the Union Calendar, Calendar No. 190.

March 8, 2022

HouseFloor

Ms. Velazquez moved to suspend the rules and pass the bill.

April 26, 2022 • 2:15 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H4463-4465)

April 26, 2022 • 2:16 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 6445.

April 26, 2022 • 2:16 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.

April 26, 2022 • 2:25 PM

HouseFloor

On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H4463-4464)

April 26, 2022 • 2:25 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

April 26, 2022 • 2:25 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Small Business and Entrepreneurship Committee

April 27, 2022

Floor Debate

3 members

What members said about H.R. 6445 on the floor

1 Republican2 Democrats

Rep. Nydia M. VelázquezD-NY-7 · Apr 26, 2022

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6445) to amend the Small Business Act to require an annual report on entrepreneurial development programs, and for other purposes. Mr.…

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6445) to amend the Small Business Act to require an annual report on entrepreneurial development programs, and for other purposes.

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

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

Mr. Speaker, before I begin, I thank all of our members for their tireless work on the bills before us today. As we head into National Small Business Week, the legislation we are passing today showcases the bipartisan nature of our committee and highlights how Congress supports the American entrepreneurial spirit.

I rise today in support of H.R. 6445, the Small Business Development Center Improvement Act of 2022, introduced by Representative Golden from Maine and the late Representative Hagedorn from Minnesota.

I will take a moment to remember the late Representative Hagedorn and his work as a member of the Small Business Committee. Before and throughout his illness, Mr. Hagedorn maintained his steadfast commitment to small businesses. My thoughts continue to be with Mr. Hagedorn's family, friends, and staff.

Today's bill is a testament to his dedication to his community and small firms, and I am glad to honor his memory with this legislation.

H.R. 6445 strengthens SBA's largest resource partner, the Small Business Development Center, or SBDC, network, by modernizing the program to meet the needs of today's small businesses and entrepreneurs.

SBDCs deliver free face-to-face and virtual counseling and training in all aspects of business management to small business owners and entrepreneurs across the country. The services include: assisting entrepreneurs with developing a business plan, accessing capital, creating a marketing plan, procuring government contracts, strengthening cybersecurity protections, and entering into international trade.

Through their network of 62 lead centers, managing nearly 1,000 outreach locations, SBDCs assist small business owners and entrepreneurs throughout the country.

SBDCs are a remarkable investment of taxpayer dollars with every Federal dollar spent on the SBDC program generating $1.99 in Federal revenue, a nearly 100 percent return on investment.

To build on this success, H.R. 6445 increases the authorization level to $175 million for the next four fiscal years, allowing the program to grow and reach more of America's 30 million small firms.

The bill also clarifies that SBDCs, and the SBA, may actively market their services. In the Small Business Committee, we often say that SBDCs are the best-kept small business secret.

This bill will go a long way to ensuring more small employers and entrepreneurs are aware that free or low-cost counseling and training exists to help them on their path to success.

I thank the sponsors for leading this effort to modernize and improve the SBDC program and its many valuable services. I urge Members to support this bipartisan piece of legislation, and I reserve the balance of my time.

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

There is no question that we need to support the cornerstone of the SBA's entrepreneurial programs, the Small Business Development Centers. SBDCs are SBA's premier resource partner with centers in communities across the country. Their free or low-cost counseling and training have helped sustain small businesses and entrepreneurs throughout the pandemic.

H.R. 6445 continues the long tradition of SBDC's work to meet the ever-evolving needs of America's entrepreneurs as they emerge from the pandemic. Strengthening the SBDC network will, in turn, provide the support our small businesses need in order to thrive.

Today's bill is endorsed by America's SBDCs, an association representing the 63 SBDC networks and their nearly 1,000 centers.

I thank Mr. Golden and remember the late Mr. Hagedorn for their bipartisan work on this bill.

I urge my colleagues to vote ``yes,'' and I yield back the balance of my time.

Rep. Sheila Jackson LeeD-TX-18 · Apr 27, 2022

Mr. Speaker, I rise in support of H.R. 6445--the Small Business Development Centers Improvement Act of 2022, which reauthorizes the Small Business Development Center Program through FY2025 and amends the Small Business Act to require an annual report on entrepreneurial development programs.

H.R. 6445 will authorize the appropriation of $175 million for each of fiscal years 2022 through 2025 for the Small Business Development Center (SBDC) program. The program awards grants to centers that counsel and train current and prospective small-business owners.

The Small Business Development Centers Improvement Act would help strengthen the SBDC network and allow the center to do more to build awareness of their programs and services.

More specifically, H.R. 6445 will prohibit entities other than institutions of higher education from receiving new grants under the program; allow centers to collect fees related to private partnerships or co-sponsorships; authorize centers to market their services directly to small businesses; and modify or establish provisions related to program funding, operations, data collection, and reporting.

According to the U.S. Census Bureau's Business Dynamics Statistics, about 97 percent of businesses in the greater Houston area are considered small businesses.

Companies that employ less than 500 people collectively employ 44 percent of Houston's workforce, or 1.2 million people.

Eighty-two percent of businesses operating in the Houston area have fewer than 20 employees. Together, these businesses employ just under 400,000 workers, or about 14 percent of the regional workforce.

According to a study done by Self Financial, a personal finance service, there are nearly 170,000 minority-owned startups in the U.S., employing over 700,000 people and generating close to $100 billion in annual revenue.

The study states that Houston ranks fifth in the Nation for minority entrepreneurship.

Nearly 35 percent of Houston-area small businesses employing 50 or fewer people are minority-owned.

And based on demographic trends, these numbers are likely to grow as the population continues to diversify on racial and ethnic lines.

As a senior Member of the House Committees on Judiciary, Homeland Security, and Budget, I have and continue to advocate and fight for funding for the self-employed, independent contractors, sole proprietors, and small businesses.

In the early stages of the pandemic, I introduced H.R. 6292, the COVID-19 Small Business Recovery Grants Act, to help struggling farmers, ranchers, and small businesses that suffered an economic loss due to the COVID-19 Pandemic.

Specifically, this legislation would have established a $1 billion fund to provide direct relief to eligible parties who were experiencing financial losses due to the coronavirus.

The bill supported the American people by preserving the economic viability of small businesses that have been devastated by the COVID-19 Pandemic.

Entrepreneurship is the backbone of American commerce, especially small businesses that are significant drivers of economic growth and job creation in the U.S.

Small businesses provide opportunities for entrepreneurs, jobs for neighbors and gathering places for communities. They're rooted in the landscape where they grow, and foster local economies, keeping money close to home.

Small Business Development Centers are an essential resource for small business owners, especially those who have been historically disadvantaged. SBDC's provide them with business advising, access to training, tools, and resources to help small businesses start, grow, expand, and succeed.

Mr. Speaker, I urge my colleagues to support H.R. 6445 the Small Business Development Centers Improvement Act because we must support our country's small businesses to ensure that our economy is prosperous.

Rep. Blaine LuetkemeyerR-MO-3 · Apr 26, 2022

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in support of H.R. 6445, the Small Business Development Centers Improvement Act of 2022. Before we begin, I will highlight…

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

Mr. Speaker, I rise in support of H.R. 6445, the Small Business Development Centers Improvement Act of 2022.

Before we begin, I will highlight next week's National Small Business Week celebration. This will be a time to honor and reflect upon some of America's hardest working businesses and their employees.

It is with this in mind that I am glad that we are gathering on the House floor today to discuss a number of bills that improve and enhance the Small Business Administration.

Importantly, all five bills that we will be discussing today have been favorably reported out of our committee

in a bipartisan manner. I thank the chair for working with me to advance these bills to the floor.

Small Business Development Centers provide valuable resources and free counseling to entrepreneurs across this great Nation. This Congress, I have heard from several small businesses who have benefited from the SBDC's services.

In my home State of Missouri, the Missouri Small Business Development Center helped a local brewery create a business plan and apply for a 504 loan to grow their business. They also helped a veteran-owned food shipping business scale up and find new partnerships during the pandemic.

They supported countless small businesses in accessing SBA's COVID relief programs such as the Paycheck Protection Program and Economic Injury Disaster loans. I am grateful for their wide range of services to entrepreneurs.

This important legislation will allow SBDCs to continue their important services and expand their network of small business beneficiaries through marketing.

This legislation also ensures SBDC's client information is protected and that cooperation, communication, and collaboration between SBA and SBDC networks is improved.

I thank Mr. Golden for working on this legislation with the late Jim Hagedorn. As we all know, Jim was a champion for small businesses and a truly invaluable member of our Small Business Committee. He will certainly be missed. He leaves a huge hole on our side of the aisle with regard to support of small businesses, and we remember him today.

I also thank the chair for working with me in a bipartisan manner to advance this bill.

I urge my colleagues to ensure that SBDCs can continue serving our small business constituents and communities, and to support H.R. 6445, which was passed favorably out of our committee by a voice vote and passed the House in a similar form last Congress.

The Small Business Development Center network is critical in assisting our small business owners during their entrepreneurial business journey. H.R. 6445 will enhance and improve this journey and ensure the program remains strong and vibrant on behalf of America's small businesses.

I urge my colleagues to support H.R. 6445, and I yield back the balance of my time.

Bill Text

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Referred in SenateIssued April 27, 2022

IIB

117th CONGRESS

2d Session

H. R. 6445

IN THE SENATE OF THE UNITED STATES

April 27, 2022

Received; read twice and referred to the Committee on Small Business and Entrepreneurship

AN ACT

To amend the Small Business Act to require an annual report on entrepreneurial development programs, and for other purposes.

Short title

This Act may be cited as the Small Business Development Centers Improvement Act of 2022.

Annual report on entrepreneurial development programs

Section 10 of the Small Business Act (15 U.S.C. 639) is amended by adding at the end the following new subsection:

(i)

Annual report on entrepreneurial development programs

(1)

Report required

The Administrator shall include in the comprehensive annual report required under subsection (a) the following data:

(A)

A list of all entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through a covered program, including—

(i)

a description and operating details for each such covered program and the activities performed under each such covered program;

(ii)

operating circulars, manuals, and standard operating procedures for each such covered program;

(iii)

a description of the process used to make awards relating to the provision of entrepreneurial development activities under each such covered program;

(iv)

a list of all recipients of awards under each such covered program and the amount of each such award; and

(v)

a list of contractors, including the name and location of such contractor, of an award recipient.

(B)

The total amount of funding obligated for a covered program and the entrepreneurial development activities conducted under each such covered program for the fiscal year preceding the date of the report.

(C)

The names and titles of the individuals responsible for carrying out a covered program.

(D)

For entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through the Small Business Development Center Program established under section 21 (in this section referred to as the Program)—

(i)

the number of individuals counseled or trained through the Program;

(ii)

the total number of hours of counseling and training services provided through the Program;

(iii)

the demographics of participants in the Program, which shall include the gender, race, and age of each such participant;

(iv)

the number of participants in the Program who are veterans;

(v)

the number of new businesses started by participants in the Program;

(vi)

to the extent practicable, the number of jobs supported, created, or retained with assistance from the Program;

(vii)

the amount of capital secured by participants in the Program, including through loans and equity investment;

(viii)

the number of participants in the Program receiving financial assistance, including the type and dollar amount, under a loan program of the Administration;

(ix)

an estimate of gross receipts, including (to the extent practicable) a description of any change in revenue, of small business concerns assisted through the Program;

(x)

the number of referrals of individuals to other resources and programs of the Administration;

(xi)

the results of satisfaction surveys of participants in the Program, including a summary of any comments received from such participants; and

(xii)

any recommendations by the Administrator to improve the delivery of services by the Program.

(2)

Definitions

In this subsection:

(A)

Covered program

The term covered program means a program authorized under section 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 29, 32, or 34 of this Act.

(B)

Entrepreneurial development activity

The term entrepreneurial development activity means an activity related to the delivery of entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of business training services carried out through a covered program.

Marketing of services

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

(o)

No prohibition of marketing of services

An applicant receiving a grant under this section may use up to 10 percent of their budget to market and advertise the services of such applicant to individuals and small business concerns.

Data collection by the small business development center association

(a)

In general

Section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A)) is amended—

(1)

by striking as provided in this section and and inserting as provided in this section,; and

(2)

by inserting before the period at the end the following: , and (iv) governing data collection activities related to applicants receiving grants under this section.

(b)

Annual report on data collection

Section 21 of the Small Business Act (15 U.S.C. 648), as amended by section 3 of this Act, is further amended by adding at the end the following:

(p)

Annual report on data collection

The Administrator shall annually submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on any data collection activities related to the Small Business Development Center Program.

(c)

Working group To improve data collection

(1)

Establishment and study

The Administrator of the Small Business Administration shall establish a group to be known as the Data Collection Working Group consisting of entrepreneurial development grant recipients, the associations and organizations representing such recipients, and officials from the Small Business Administration, to carry out a study to determine the best methods for conducting data collection activities and create or revise existing systems dedicated to data collection.

(2)

Report

Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Data Collection Working Group shall issue a report to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate containing the findings and determinations made in carrying out the study required under paragraph (1), including—

(A)

recommendations for revising existing data collection practices for the Small Business Development Center Program; and

(B)

a proposed plan for the Administrator of the Small Business Administration to implement such recommendations.

Fees from private partnerships and cosponsorships

Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is amended by adding at the end the following:

(D)

Fees from private partnerships and cosponsorships

A small business development center that participates in a private partnership or cosponsorship, in which the Administrator or designee of the Administrator also participates, may collect fees or other income related to the operation of such private partnership or cosponsorship.

Equity for small business development centers

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

(I)

In general

Of the amounts made available in any fiscal year to carry out this section, not more than $600,000 may be used by the Administration to pay expenses enumerated in subparagraphs (B) through (D) of section 20(a)(1).

Confidentiality requirements

Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 648(a)(7)(A)) is amended—

(1)

by striking or telephone number and inserting , telephone number, or email address; and

(2)

by inserting , or the nature or content of such assistance, to any State, local, or Federal agency, or to any third party after receiving assistance under this section.

Limitation on award of grants to small business development centers

(a)

In general

Section 21 of the Small Business Act (15 U.S.C. 648), as amended by section 4, is further amended—

(1)

in subsection (a)(1)—

(A)

by striking any women’s business center operating pursuant to section 29,;

(B)

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

(C)

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

(2)

by adding at the end the following:

(q)

Limitation on award of grants

Except for not-for-profit institutions of higher education, and notwithstanding any other provision of law, the Administrator may not award a grant or contract to, or enter into a cooperative agreement with, an entity under this section unless that entity—

(1)

received a grant or contract from, or entered into a cooperative agreement with, the Administrator under this section before the date of the enactment of this subsection; and

(2)

seeks to renew such a grant, contract, or cooperative agreement after such date.

(b)

Rule of construction

The amendments made by this section may not be construed as prohibiting a women’s business center (as described under section 29 of the Small Business Act) from receiving a subgrant from an entity receiving a grant under section 21 of the Small Business Act.

Management of program activities

Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)), as amended by section 4, is further amended—

(1)

in the matter preceding subparagraph (A), by striking upon, with full participation of both parties, and inserting upon with the full participation of all parties (including the association authorized in subparagraph (A)), and carried out;

(2)

in subparagraph (A), by striking and develop and inserting and negotiate the development of; and

(3)

in subparagraph (C)—

(A)

by striking Whereas;

(B)

by inserting Program after Center;

(C)

by striking National and inserting national; and

(D)

by moving such subparagraph 2 ems to the left.

10.

Authorization of appropriations for formula grants received by States

Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended—

(1)

in clause (vii), by striking subparagraph and all that follows through the period at the end and inserting subparagraph $175,000,000 for each of fiscal years 2022 through 2025.; and

(2)

in clause (viii), by striking shall reserve not less than $1,000,000 and inserting shall reserve not more than $2,000,000.

11.

Requirements relating to matching funds

Section 21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)) is amended by adding at the end the following new sentence: Such matching funds shall be evidenced by good faith assertions from the applicant, and the expenditure of matching funds shall not be made a prerequisite of the reimbursement of Federal funds, notwithstanding the final reconciliation payment for the close-out of each award..

12.

Contract prerequisites

Section 21(a)(5)(B) of the Small Business Act (15 U.S.C. 648(a)(5)(B)) is amended by striking the second sentence and inserting the following: Each contract shall be deemed approved under subparagraph (A) unless the Associate Administrator certifies in writing within 15 business days after award of the contract that the contract will not provide assistance to small business concerns and that performance of the contract will hinder the small business development center in carrying out the terms of the grant received by the small business development center under this section..

13.

Duties of the Associate Administrator for Small Business Development Centers

Section 21(h)(2) of the Small Business Act (15 U.S.C. 648(h)(2)) is amended by adding at the end the following new subparagraph:

(C)

Marketing

The Associate Administrator for Small Business Development Centers shall market and advertise the Small Business Development Center Program and participants in such Program as a resource available to any Federal program providing assistance to small business concerns, including the FAST program established under section 34.

14.

Determination of budgetary effects

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Passed the House of Representatives April 26, 2022.

Cheryl L. Johnson,

Clerk.