Women's Business Centers Sustainability Act of 1999

Summary: (Sec. 3) Directs the Small Business Administration (SBA) to: (1) perform an annual examination of the programs and finances of each women's business center; and (2) determine the viability of each center after such examination. Requires a report from the SBA to the congressional small business committees on the effectiveness of all projects conducted under the women's business centers program.
(Sec. 4) Establishes a four-year pilot program under which the SBA is authorized to make grants on a competitive basis to organizations that have received assistance for participation in the women's business centers program and that: (1) are in the final year of a five-year project; or (2) have completed a financed project and continue to provide assistance to women entrepreneurs. Outlines grant participation conditions, including certification that the organization is private and nonprofit and submission of a five-year plan that demonstrates the organization's ability to serve women business owners or potential owners and to provide training and services to women who are both socially and economically disadvantaged. Outlines matching fund requirements and application procedures. Authorizes appropriations for FY 2000 through 2003 for the pilot program, earmarking specified amounts for administrative costs related to the selection of grant participants and sustainability grants.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Women's Business Centers 
Sustainability Act of 1999''.

SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.

    Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) the term `private nonprofit organization' means an 
        entity described in section 501(c) of the Internal Revenue Code 
        of 1986 that is exempt from taxation under section 501(a) of 
        such Code;''; and
            (2) in subsection (b), by inserting ``nonprofit'' after 
        ``private''.

SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW OF WOMEN'S BUSINESS 
              CENTERS.

    Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
            (1) by striking subsection (h) and inserting the following:
    ``(h) Program Examination.--
            ``(1) In general.--The Administration shall--
                    ``(A) develop and implement procedures to annually 
                examine the programs and finances of each women's 
                business center established pursuant to this section, 
                pursuant to which each such center shall provide to the 
                Administration--
                            ``(i) an itemized cost breakdown of actual 
                        expenditures for costs incurred during the 
                        preceding year; and
                            ``(ii) documentation regarding the amount 
                        of matching assistance from non-Federal sources 
                        obtained and expended by the center during the 
                        preceding year in order to meet the 
                        requirements of subsection (c) and, with 
                        respect to any in-kind contributions described 
                        in subsection (c)(2) that were used to satisfy 
                        the requirements of subsection (c), 
                        verification of the existence and valuation of 
                        those contributions; and
                    ``(B) analyze the results of each such examination 
                and, based on that analysis, make a determination 
                regarding the viability of the programs and finances of 
                each women's business center.
            ``(2) Extension of contracts.--In determining whether to 
        extend or renew a contract with a women's business center, the 
        Administration--
                    ``(A) shall consider the results of the most recent 
                examination of the center under paragraph (1); and
                    ``(B) may withhold such extension or renewal, if 
                the Administration determines that--
                            ``(i) the center has failed to provide any 
                        information required to be provided under 
                        clause (i) or (ii) of paragraph (1)(A), or the 
                        information provided by the center is 
                        inadequate; or
                            ``(ii) the center has failed to provide any 
                        information required to be provided by the 
                        center for purposes of the report of the 
                        Administration under subsection (j), or the 
                        information provided by the center is 
                        inadequate.''; and
            (2) by striking subsection (j) and inserting the following:
    ``(j) Management Report.--
            ``(1) In general.--The Administration shall prepare and 
        submit to the Committees on Small Business of the House of 
        Representatives and the Senate a report on the effectiveness of 
        all projects conducted under this section.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include information concerning, with respect to each 
        women's business center established pursuant to this section--
                    ``(A) the number of individuals receiving 
                assistance;
                    ``(B) the number of startup business concerns 
                formed;
                    ``(C) the gross receipts of assisted concerns;
                    ``(D) the employment increases or decreases of 
                assisted concerns;
                    ``(E) to the maximum extent practicable, increases 
                or decreases in profits of assisted concerns;
                    ``(F) documentation detailing the most recent 
                analysis undertaken under subsection (h)(1)(B) and the 
                determinations made by the Administration with respect 
                to that analysis; and
                    ``(G) demographic data regarding the staff of the 
                center.''.

SEC. 4. WOMEN'S BUSINESS CENTER SUSTAINABILITY PILOT PROGRAM.

    (a) In General.--Section 29 of the Small Business Act (15 U.S.C. 
656) is amended by adding at the end the following:
    ``(l) Sustainability Pilot Program.--
            ``(1) In general.--There is established a 4-year pilot 
        program under which the Administration is authorized to make 
        grants (referred to in this section as `sustainability grants') 
        on a competitive basis for an additional 5-year project under 
        this section to any private nonprofit organization (or a 
        division thereof)--
                    ``(A) that has received financial assistance under 
                this section pursuant to a grant, contract, or 
                cooperative agreement; and
                    ``(B) that--
                            ``(i) is in the final year of a 5-year 
                        project; or
                            ``(ii) to the extent that amounts are 
                        available for such purpose under subsection 
                        (k)(4)(B), has completed a project financed 
                        under this section (or any predecessor to this 
                        section) and continues to provide assistance to 
                        women entrepreneurs.
            ``(2) Conditions for participation.--In order to receive a 
        sustainability grant, an organization described in paragraph 
        (1) shall submit to the Administration an application, which 
        shall include--
                    ``(A) a certification that the applicant--
                            ``(i) is a private nonprofit organization;
                            ``(ii) employs a full-time executive 
                        director or program manager to manage the 
                        women's business center for which a grant is 
                        sought; and
                            ``(iii) as a condition of receiving a 
                        sustainability grant, agrees--
                                    ``(I) to an annual examination by 
                                the Administration of the center's 
                                programs and finances; and
                                    ``(II) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to that 
                                examination;
                    ``(B) 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 site 
                for which a sustainability grant is sought, including 
                the ability to raise financial resources;
                    ``(C) information relating to assistance provided 
                by the women's business center site for which a 
                sustainability grant is sought in the area in which the 
                site is located, including--
                            ``(i) the number of individuals assisted;
                            ``(ii) the number of hours of counseling, 
                        training, and workshops provided; and
                            ``(iii) the number of startup business 
                        concerns formed;
                    ``(D) information demonstrating the effective 
                experience of the applicant in--
                            ``(i) conducting financial, management, and 
                        marketing assistance programs, as described in 
                        paragraphs (1), (2), and (3) of subsection (b), 
                        designed to impart or upgrade the business 
                        skills of women business owners or potential 
                        owners;
                            ``(ii) providing training and services to a 
                        representative number of women who are both 
                        socially and economically disadvantaged;
                            ``(iii) using resource partners of the 
                        Administration and other entities, such as 
                        universities;
                            ``(iv) complying with the cooperative 
                        agreement of the applicant; and
                            ``(v) prudently managing finances and 
                        staffing, including the manner in which the 
                        performance of the applicant compared to the 
                        business plan of the applicant and the manner 
                        in which grants made under subsection (b) were 
                        used by the applicant; and
                    ``(E) a 5-year plan that demonstrates the ability 
                of the women's business center site for which a 
                sustainability grant is sought--
                            ``(i) to serve women business owners or 
                        potential owners in the future by improving 
                        fundraising and training activities; and
                            ``(ii) to provide training and services to 
                        a representative number of women who are both 
                        socially and economically disadvantaged.
            ``(3) Review of applications.--
                    ``(A) In general.--The Administration shall--
                            ``(i) review each application submitted 
                        under paragraph (2) based on the information 
                        provided under subparagraphs (D) and (E) of 
                        that paragraph, and the criteria set forth in 
                        subsection (f); and
                            ``(ii) approve or disapprove applications 
                        for sustainability grants simultaneously with 
                        applications for grants under subsection (b).
                    ``(B) Data collection.--Consistent with the annual 
                report to Congress under subsection (j), each women's 
                business center site that receives a sustainability 
                grant shall, to the maximum extent practicable, collect 
                the information relating to--
                            ``(i) the number of individuals assisted;
                            ``(ii) the number of hours of counseling 
                        and training provided and workshops conducted;
                            ``(iii) the number of startup business 
                        concerns formed;
                            ``(iv) any available gross receipts of 
                        assisted concerns; and
                            ``(v) the number of jobs created, 
                        maintained, or lost at assisted concerns.
                    ``(C) Record retention.--The Administration shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 10 years.
            ``(4) Non-federal contribution.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, as a condition of receiving 
                a sustainability grant, an organization described in 
                paragraph (1) shall agree to obtain, after its 
                application has been approved under paragraph (3) and 
                notice of award has been issued, cash and in-kind 
                contributions from non-Federal sources for each year of 
                additional program participation in an amount equal to 
                1 non-Federal dollar for each Federal dollar.
                    ``(B) In-kind contributions.--Not more than 50 
                percent of the non-Federal assistance obtained for 
                purposes of subparagraph (A) may be in the form of in-
                kind contributions that exist only as budget line 
                items, including such contributions of office equipment 
                and office space.
            ``(5) Timing of requests for proposals.--In carrying out 
        this subsection, the Administration shall issue requests for 
        proposals for women's business centers applying for the pilot 
        program under this subsection simultaneously with requests for 
        proposals for grants under subsection (b).''.
    (b) Authorization of Appropriations.--Section 29(k) of the Small 
Business Act (15 U.S.C. 656(k)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--There is authorized to be appropriated, 
        to remain available until the expiration of the pilot program 
        under subsection (l)--
                    ``(A) $12,000,000 for fiscal year 2000;
                    ``(B) $12,800,000 for fiscal year 2001;
                    ``(C) $13,700,000 for fiscal year 2002; and
                    ``(D) $14,500,000 for fiscal year 2003.'';
            (2) in paragraph (2)--
                    (A) by striking ``Amounts made'' and inserting the 
                following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), amounts made''; and
                    (B) by adding at the end the following:
                    ``(B) Exception.--Of the total amount made 
                available under this subsection for a fiscal year, the 
                following amounts shall be available for costs incurred 
                in connection with the selection of applicants for 
                assistance under this subsection and with monitoring 
                and oversight of the program authorized under this 
                subsection:
                            ``(i) For fiscal year 2000, 2 percent of 
                        such total amount.
                            ``(ii) For fiscal year 2001, 1.9 percent of 
                        such total amount.
                            ``(iii) For fiscal year 2002, 1.9 percent 
                        of such total amount.
                            ``(iv) For fiscal year 2003, 1.6 percent of 
                        such total amount.''; and
            (3) by adding at the end the following:
            ``(4) Reservation of funds for sustainability pilot 
        program.--
                    ``(A) In general.--Of the total amount made 
                available under this subsection for a fiscal year, the 
                following amounts shall be reserved for sustainability 
                grants under subsection (l):
                            ``(i) For fiscal year 2000, 17 percent of 
                        such total amount.
                            ``(ii) For fiscal year 2001, 18.8 percent 
                        of such total amount.
                            ``(iii) For fiscal year 2002, 30.2 percent 
                        of such total amount.
                            ``(iv) For fiscal year 2003, 30.2 percent 
                        of such total amount.
                    ``(B) Use of unawarded reserve funds.--
                            ``(i) Sustainability grants to other 
                        centers.--Of amounts reserved under 
                        subparagraph (A), the Administration shall use 
                        any funds that remain available after making 
                        grants in accordance with subsection (l) to 
                        make grants under such subsection to women's 
                        business center sites that have completed a 
                        project financed under this section (or any 
                        predecessor to this section) and that continue 
                        to provide assistance to women entrepreneurs.
                            ``(ii) Additional grants.--The 
                        Administration shall use any funds described in 
                        clause (i) that remain available after making 
                        grants under such clause to make grants to 
                        additional women's business center sites, or to 
                        increase the grants to existing women's 
                        business center sites, under subsection (b).''.
    (c) Guidelines.--Not later than 30 days after the date of the 
enactment of this Act, the Administrator of the Small Business 
Administration shall issue guidelines to implement the amendments made 
by this section.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 1999.

            Passed the House of Representatives October 19, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.