118 S2185 IS: Small Business Development Centers Improvement Act of 2023
U.S. Senate
2023-06-22
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II
118th CONGRESS
1st Session
S. 2185
IN THE SENATE OF THE UNITED STATES
June 22, 2023
Mr. Cardin introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To amend the Small Business Act to require an annual report on entrepreneurial development programs, and for other purposes.
1.

Short title
This Act may be cited as the “Small Business Development Centers Improvement Act of 2023”.
2.

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:
“(i)

Annual report on entrepreneurial development programs
(1)

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.
(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.
(2)

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 under each such covered program.
(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 total number and 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)
to the extent practicable, the demographics of participants in the Program, which shall include the gender, race, ethnicity, 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, and retained with assistance from the Program;
(vii)
to the extent practicable, the total amount of capital secured by participants in the Program, including through loans and equity investment from the Administration;
(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 those participants; and
(xii)
any recommendations by the Administrator to improve the delivery of services by the Program.”.
3.

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

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 the applicant to individuals and small business concerns.”.
4.

Data collection working group
(a)

Establishment of working group To improve data collection
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.
(b)

Report
Not later than 180 days after the date of enactment of this Act, the Data Collection Working Group shall issue a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives containing the findings and determinations made in carrying out the study required under subsection (a), including—
(1)
recommendations for revising existing data collection practices for the Small Business Development Center Program established under section 21 of the Small Business Act (15 U.S.C. 648); and
(2)
a proposed plan for the Administrator of the Small Business Administration to implement the recommendations described in paragraph (1).
5.

Oversight; fees from private partnerships and cosponsorships; negotiation
Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is amended—
(1)
in the matter preceding subparagraph (A), by inserting “, including financial oversight,” after “oversight”;
(2)
by moving subparagraphs (A) and (B) 2 ems to the right;
(3)
in subparagraph (C)—
(A)
by striking “Whereas”;
(B)
by inserting “Program” after “Center”; and
(C)
by striking “National” and inserting “national”; and
(4)
by adding at the end the following:
“(D)
(i)
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 in order to hold events related to the private partnership or cosponsorship.
(ii)
Nothing in clause (i) shall be construed as the Administration endorsing a private partnership or cosponsorship described in clause (i).
(E)
An association formed under subparagraph (A) shall, at the request of a small business development center applicant or applicants, participate in the negotiation of the cooperative agreement described in this paragraph between the small business development center applicant or applicants and the Administration.”.
6.

Equity for small business development centers
Section 21(a)(4)(C)(v) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(v)) is amended to read as follows:
“(v)

Use of amounts
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).”.
7.

Confidentiality requirements
Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 648(a)(7)(A)) is amended, in the matter preceding clause (i)—
(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”.
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 section 3 of this Act, is 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 as a Small Business Development Center”; 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 nonprofit 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 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 described in section 29 of the Small Business Act (15 U.S.C. 646) from receiving a subgrant from an entity receiving a grant under section 21 of the Small Business Act (15 U.S.C. 648).
9.

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 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 “$100,000” and inserting “$200,000.”
10.

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: “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.”.
11.

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:
“(C)

Marketing
The Associate Administrator for Small Business Development Centers shall market and advertise the Small Business Development Center Program and participants in that Program as a resource available to any Federal program providing assistance to small business concerns, including the FAST program established under section 34.”.
12.

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.