[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5367 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5367
To amend the Small Business Act to make improvements to the Small
Business Development Center Program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 8, 2023
Mr. Golden of Maine (for himself and Ms. Velazquez) introduced the
following bill; which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to make improvements to the Small
Business Development Center Program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Development Centers
Improvement Act of 2023''.
SEC. 2. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 49 as section 50; and
(2) by inserting after section 48 the following new
section:
``SEC. 49. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.
``(a) Expanded Support for Entrepreneurs.--
``(1) In general.--Notwithstanding any other provision of
law and except as provided in paragraph (3), the
Administrator--
``(A) shall only deliver entrepreneurial
development services, entrepreneurial education, or
support for the development and maintenance of the
Regional Innovation Clusters Program (or similar
business training services) through a program of the
Administration that was established before the date of
the enactment of this section; and
``(B) may not establish a program after the date of
the enactment of this Act to provide such services,
education, or support without explicit authority
provided by an Act of Congress.
``(2) Notification.--The Administrator shall notify
Congress before providing any services, education, or support
described in paragraph (1)(A).
``(3) Exception.--This section does not apply to services
provided to assist small business concerns owned by an Indian
tribe (as such term is defined in section 8(a)(13)).
``(b) Annual Report.--The Administrator shall include in the annual
report required under section 10(a) the following information:
``(1) A list of all covered activities undertaken through a
program of the Administration during the fiscal year preceding
the date of the report, including--
``(A) a description and operating details for each
such program and the covered activities conducted under
each such program;
``(B) operating circulars, manuals, notices of
awards, notices of funding opportunities, and standard
operating procedures for each such program and the
covered activities conducted under each such program;
``(C) a description of the process used to provide
awards for covered activities conducted under each such
program;
``(D) a list of all recipients of awards under each
such program, contractors, and vendors (including
organization name and location) and the amount of
awards provided during the fiscal year preceding the
date of the report for such programs and activities
performed under such programs;
``(E) the total amount of funding obligated for
each such program and the covered activities conducted
under each such program for the fiscal year preceding
the date of the report; and
``(F) the names and titles of the individuals
responsible for carrying out each such program.
``(2) Covered activity defined.--In this subsection, the
term `covered activity' means entrepreneurial development
services, entrepreneurial education, or support for the
development and maintenance of the Regional Innovation Clusters
Program (or similar business training services).''.
(b) Applicability.--Subsection (b) of section 49 of the Small
Business Act (15 U.S.C. 639), as added by this section, shall apply
with respect to the first annual report required under section 10(a) of
such Act (15 U.S.C. 639(a)) after October 1, 2023.
SEC. 3. DATA COLLECTION BY THE SMALL BUSINESS DEVELOPMENT CENTER
ASSOCIATION, WOMEN'S BUSINESS CENTERS, AND SCORE.
(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) Working Group To Improve Data Collection.--
(1) Establishment.--The Administrator of the Small Business
Administration shall establish a group to be known as the
``Data Collection Working Group'' consisting of--
(A) entrepreneurial development grant recipients;
(B) associations and organizations representing
such recipients;
(C) contractors that handle data systems for
women's business centers (as described under section 29
of the Small Business Act (15 U.S.C. 656)), small
business development centers (as defined in section 3
of such Act (15 U.S.C. 632)), and chapters of the
Service Corps of Retired Executives (established under
section 8(b)(1)(B) of such Act (15 U.S.C.
637(b)(1)(B))); and
(D) officials from the Small Business
Administration.
(2) Responsibilities.--The Data Collection Working Group
shall--
(A) determine the best methods for conducting data
collection activities for the Small Business
Development Center Program, women's business centers,
and chapters of the Service Corps of Retired
Executives; and
(B) develop recommendations to create or revise
existing systems dedicated to data collection for the
Small Business Development Center Program, women's
business centers, and chapters of the Service Corps of
Retired Executives.
(3) 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 of the Data
Collection Working Group pursuant to paragraph (2), including--
(A) the recommendations developed under paragraph
(2)(B); and
(B) a proposed plan for the Administrator of the
Small Business Administration to implement such
recommendations.
SEC. 4. MARKETING OF SERVICES.
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by
section 14, is further amended by adding at the end the following:
``(q) No Prohibition of Marketing of Services.--An applicant
receiving a grant under this section may use up to 10 percent of
program funds to market and advertise the services of such applicant to
individuals and small business concerns.''.
SEC. 5. FEES FROM PRIVATE PARTNERSHIPS.
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.''.
SEC. 6. 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).''.
SEC. 7. 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''.
SEC. 8. 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 this Act, 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:
``(r) Limitation on Award of Grants.--Except for institutions of
higher education (as defined in section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001), 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.
SEC. 9. MANAGEMENT OF PROGRAM ACTIVITIES.
Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)),
as amended by section 5, 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.
SEC. 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 ``this subparagraph--''
and all that follows through the period at the end and
inserting ``this subparagraph $175,000,000 for each of fiscal
years 2024 through 2027.''; and
(2) in clause (viii)--
(A) by striking ``shall reserve not less than
$1,000,000'' and inserting ``shall reserve not more
than $2,000,000''; and
(B) by striking ``shall not exceed $100,000'' and
inserting ``shall not exceed $200,000''.
SEC. 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.''.
SEC. 12. CONTRACT PREREQUISITES.
Section 21(a)(5)(B) of the Small Business Act (15 U.S.C.
648(a)(5)(B)) is amended by adding at the end the following: ``If the
Associate Administrator fails to issue a determination of an approval
for a contract within 10 days after receipt of a request for such
determination, such contract shall be deemed to be approved.''.
SEC. 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.''.
SEC. 14. ANNUAL REPORT ON ENTREPRENEURIAL DEVELOPMENT ACTIVITIES.
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by
adding at the end the following new subsection:
``(p) Small Business Development Centers Annual Report.--Beginning
on the first December 1 after the date of the enactment of this
subsection, 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 the
entrepreneurial development activities undertaken during the fiscal
year preceding the date of the report through the Small Business
Development Center Program (in this subsection referred to as the
`Program'), including--
``(1) the total number of hours of counseling and training
services provided through the Program;
``(2) to the extent practicable, the demographics of
participants in the Program, which shall include the gender,
race, and age of each such participant;
``(3) the number of participants in the Program who are
veterans;
``(4) the number of new businesses started by participants
in the Program;
``(5) to the extent practicable, the number of jobs created
or retained with assistance from the Program;
``(6) to the extent practicable, the amount of capital
secured by participants in the Program, including through loans
and equity investment;
``(7) the number of participants in the Program receiving
financial assistance, including the type and dollar amount,
under a loan program of the Administration;
``(8) 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;
``(9) the number of referrals of individuals counseled or
trained through the Program to other resources and programs of
the Administration;
``(10) the results of satisfaction surveys of participants
in the Program, including a summary of any comments received
from such participants; and
``(11) any recommendations by the Administrator or the
National Small Business Development Center Advisory Board
(established under subsection (i)) to improve the delivery of
services by the Program.''.
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