59–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–192 

AMENDING THE SMALL BUSINESS ACT TO EXPAND AND IMPROVE THE ASSISTANCE PROVIDED BY SMALL BUSINESS DEVELOPMENT CENTERS TO 

INDIAN TRIBE MEMBERS, ALASKA NATIVES, AND NATIVE HAWAIIANS 

JUNE 15, 2007.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Ms. VELA ́ ZQUEZ, from the Committee on Small Business, 

submitted the following 

R E P O R T 

[To accompany H.R. 2284] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Small Business, to whom was referred the bill 

(H.R. 2284) to amend the Small Business Act to expand and improve the assistance provided by Small Business Development Centers to Indian tribe members, Alaska Natives, and Native Hawaiians, having considered the same, report favorably thereon without 

amendment and recommend that the bill do pass. 

CONTENTS 

Page 

I. Purpose of the Bill and Summary ............................................................. 1 

II. Background and Need for Legislation ....................................................... 2 

III. Hearings ....................................................................................................... 4 

IV. Committee Consideration ........................................................................... 4 

V. Committee Votes ......................................................................................... 4 

VI. Section-by-Section Analysis of H.R. 2284 .................................................. 4 

VII. Congressional Budget Office Cost Estimate ............................................. 6 

VIII. Committee Estimate of Costs ..................................................................... 7 

IX. Oversight Findings ...................................................................................... 7 

X. Statement of Constitutional Authority ...................................................... 7 

XI. Compliance With Public Law 104–4 .......................................................... 8 

XII. Congressional Accountability Act .............................................................. 8 

XIII. Federal Advisory Committee Statement ................................................... 8 

XIV. Statement of No Earmarks ........................................................................ 8 

XV. Performance Goals and Objectives ............................................................ 8 

XVI. Changes in Existing Law Made by the Bill, as Reported ........................ 8 

I. PURPOSE AND SUMMARY

The purpose of H.R. 2284 (the Act or H.R. 2284) is to create jobs, 

to foster entrepreneurship, and to stimulate economic development 

on Indian lands. It facilitates the creation of new small businesses 


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owned and managed by Indian tribe members, Native Alaskans, 

and Native Hawaiians or expands such existing businesses. The 

Act will provide needed management, technical, and research assistance to small businesses owned by Indian tribe members, Native Alaskans, and Native Hawaiians. It will provide them better 

access to existing counseling and technical assistance provided 

through the Small Business Development Center (SBDC) program. 

Tribal Councils will be consulted about the use of grants provided 

to an SBDC program in an eligible State by the Act to ensure that 

they have a say in the development assistance that is provided. 

To accomplish this purpose, the Act establishes a three-year authorization for project providing grants to SBDCs for assisting Indian tribe members, Native Alaskans, and Native Hawaiian populations with their entrepreneurial needs. Any SBDC in a State 

whose Indian tribe members, Native Alaskan, and Native Hawaiian populations are one percent of the State’s total population can 

apply for a grant from the SBA. Such grants must be used to provide SBDC program assistance to Native Americans. Grants under 

the Act are limited to $300,000 and the amount authorized to be 

appropriated annually, in each of the fiscal years 2008, 2009, and 

2010, is $7 million. 

Services by SBDCs are to be provided to benefit the target population on tribal lands and reservations, but an individual center 

need not be located on each tribal land location or reservation. If 

the target population is in more than one location or reservation 

within a State, the center should be situated in a location that optimizes access by all those serviced by the center. The Act does not 

limit in any way, the number of centers or subcenters a state program may implement. The Committee expects the Administrator to 

balance the need for multiple sites with the quality of assistance 

and counseling when awarding grants. Consultation with the local 

Tribal Council is required in determining those locations with the 

most need and where the best access to targeted populations and 

businesses may be attained. 

SBA is responsible for designing the grant application which 

should provide essential information, but should not be burdensome to applicants. At a minimum, the application should contain 

information concerning the applicant’s (1) goals and objectives, (2) 

prior experience in providing entrepreneurial and technical assistance to small businesses, (3) the ability to provide training and 

services to Indian tribe members, Native Alaskans, and Native Hawaiians, and (4) the extent of consultation with local Tribal Councils. In addition, the applicant should identify the location of a proposed center, and the amount of funding required to accomplish its 

goals and objectives. 

Within 180 days after the enactment of the Act, the Administrator is required to issue final regulations, after a notice and comment period, that implement the requirements of the Act. Such regulations shall include standards for the educational, technical, and 

support services to be provided and for a work plan for providing 

assistance to the targeted community. 

II. BACKGROUND AND NEED FOR LEGISLATION

The majority of Indian tribe members and Native Alaskans live 

on or in the immediate vicinity of Indian lands and suffer from unVerDate Aug 31 2005 04:49 Jun 19, 2007 Jkt 059006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR192.XXX HR192

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1 2002 Economic Census; Survey of Business Owners: American Indian- and Alaskan Native 

Owned Firms Bureau of the Census—August, 2006. 2Minorities in Business, a Demographic Review of Minority Business Ownership; Office of Advocacy; Small Business Administration; Dr. Ying Lowry; April 2007. 3 1997 Economic Census; Survey of Business Owners: American Indian- and Alaskan Native 

Owned Firms; Bureau of the Census—2000. 4 2002 Economic Census; Survey of Business Owners: American Indian- and Alaskan Native 

Owned Firms; Bureau of the Census—August, 2006 (see Table 1). 

employment that is at least twice the national average. The most 

recent figures show that Indian tribe members and Native Alaskans own more than 201,000 business enterprises and generate 

revenues in excess of $26 billion annually. Though the number of 

businesses increased slightly (by 4%) the gross revenues decreased 

by over 10% since the previous U.S. Census Department Survey of 

Small Business Owners.1 On average, for every dollar a whiteowned business earns, an Indian Tribe member or Native Alaskan 

earns a little more than half.2 These facts contribute to the overriding reality that 25% of Native Americans live below the poverty 

level and 11.2 percent are at least 50 percent below the poverty 

level, almost twice the national average. 

Growth of Indian businesses has slowed significantly when compared to encouraging signs of a decade ago. For example, according 

to the previous Survey of Small Business Owners, between 1992 

and 1997 businesses owned by Indian tribe members and Native 

Alaskans grew by 84 percent while businesses, generally, grew by 

only seven percent. During the same period, the gross receipts for 

Indian tribe members and Native Alaskan business owners increased by 179 percent, in comparison with the business community, as a whole, where the gross receipts for the same period grew 

only by 40 percent.3

The construction industry is the largest business sector and accounts for about one sixth of all firms and one fifth of total revenues. The second largest is health and social assistance services 

which accounts for about one eighth of all businesses but only 5% 

of total revenues and finally, the third largest sector, the retail 

trades, accounts for one tenth of the businesses and one sixth of 

total revenues.4 The Committee found that these types of businesses could benefit from technical advice and assistance and their 

growth could spur employment in Native American communities. 

The Small Business Administration’s SBDC program network 

which has more than 1000 offices throughout the United States 

provides cost-effective business counseling and technical assistance 

to small businesses. For example, clients receiving long-term counseling under the program in 2005 generated additional tax revenues of $248 million, which was approximately three times the cost 

of the program to the Federal government. The Committee also believes this counseling has additional long-term benefits because advice once incorporated by the business continues to help it grow 

and strengthen in the future. 

By using the existing infrastructure of the SBDC program, it is 

anticipated that small businesses owned by Indian tribe members, 

Native Alaskans, and Native Hawaiians, who receive services 

under the Act, will have a higher survival rate than the average 

small businesses not receiving such services. Further, increased assistance through SBDC counseling has in the past been able to reduce defaults under Small Business Administration (SBA) lending 


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programs. The Committee considered both these to be significant 

benefits. 

The business counseling and technical assistance, provided for 

under this Act, is critical on Indian land where, without such assistance, similar services are scarce and expensive. Past and current efforts by SBDCs to assist Native American populations located on or along reservation lands have proven difficult. In addition, the lack of resources makes it difficult to raise an equal 

amount of matching funds that could be dedicated specifically to 

assist Native Americans as required by the regular SBDC program. 

III. HEARINGS

In the 110th Congress, the full Committee on Small Business 

held a hearing on May 14, 2007 to examine entrepreneurial development needs of all small business owners, including Native Americans. The hearing focused in part on challenges Native Americans 

face in today’s economy and recommendations for improvements to 

federal assistance programs specifically targeting Native American 

groups. The Committee has also held a number of hearings over 

the years on this issue which has included the testimony of Tribal 

leaders, Mr. Udall, author of H.R. 2284, representatives from Small 

Business Development Centers and their Association. Measures 

substantially similar to H.R. 2284 have been reported favorably out 

of Committee four times and were passed by the House twice. 

IV. COMMITTEE CONSIDERATION

On May 14, 2007, the Committee on Small Business met in open 

session to consider H.R. 2284 and any amendments. 

V. COMMITTEE VOTES

The Committee on Small Business ordered H.R. 2284 reported to 

the House, by a voice vote at 10:30 a.m., May 23, 2007 and no 

amendments were offered. 

VI. SECTION-BY-SECTION ANALYSIS OF THE NATIVE AMERICANS

SMALL BUSINESS DEVELOPMENT ACT—H.R. 2284 

A bill to amend the Small Business Act to expand and improve 

the assistance provided by Small Business Development Centers to 

Indian tribe members, Alaska Natives, and Native Hawaiians. 

Section 1: Findings and purposes 

This section makes findings about the high rates of poverty and 

unemployment for Native Americans and Alaskan Natives which 

are nearly double that of the general population. Additionally, it 

finds that the SBDC program is a cost effective method of delivering technical assistance and that its existing infrastructure can 

provide counseling and services that may help small businesses 

owned by Native Americans, Alaska Natives, and Native Hawaiians to attain a higher survival rate than the average small business not receiving such services. 

The section also states the purposes of the legislation to stimulate economies and foster economic development on Indian lands 

and assist in the creation of new small businesses owned by Native 


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Americans, Alaska Natives, and Native Hawaiians and expand existing ones. It states a further purpose that advice of local Tribal 

Councils shall be sought out and considered. 

Section 2: Small Business Development Center assistance to Indian 

tribe members, Alaska Natives, and Native Hawaiians 

This section sets up a procedure within the Small Business Act 

whereby SBDCs funded by the SBA that are in ‘‘eligible’’ states can 

apply for an additional grant to be used solely to provide services 

to assist with outreach, development, and enhancement on Indian 

lands of small business startups and expansions owned by Indian 

tribe members, Alaska Natives, and Native Hawaiians. It defines 

eligible states as those that have a combined population of Indian 

tribe members, Alaska Natives, and Native Hawaiians comprising 

at least 1 percent of the state’s total population, as shown by the 

latest available census. The section places a cap on the program of 

$300,000 per year but no matching funds are required. The Committee intends to provide special help in those states that have a 

significant Native American population by adding a technical business assistance capability to the SBDC system within the state in 

places where Native American populations can easily access this 

assistance. The Committee believes levels of poverty within these 

communities can be reduced by providing such assistance in these 

identified communities. Because many Native Americans live on or 

adjacent to Indian lands, where economic opportunities are limited, 

the Committee expects the SBDCs to be located on or in close proximity to Indian lands. Although Native Americans who do not live 

on Indian lands may seek the assistance of these centers, the Committee believes that assistance should go to aid with outreach, development, and enhancement on Indian lands of small business 

startups and expansions owned by Indian tribe members, Native 

Alaskans, and Native Hawaiians. Native Americans located near 

existing centers or subcenters are encouraged to continue to utilize 

those existing resources. 

The section sets out that the application for the grant must include information regarding the applicant’s goals and objectives for 

the services to be provided using the grant, including: (1) the capability of the applicant to provide training and services to a representative number of Indian tribe members, Alaska Natives, and 

Native Hawaiians; (2) the location of the SBDC site proposed by 

the applicant; (3) the required amount of grant funding needed to 

implement the program; and (4) the extent to which the applicant 

has consulted with local Tribal Councils. The Committee feels that 

certain basic criteria must be considered when evaluating a grant 

proposal and sets out specifically what those criteria are and directs that they be included in the application documents. The Committee feels that it is particularly important that local Tribal Councils actively participate from the outset. 

Within 180 days of enactment, the SBA must issue regulations 

pertaining to the program, including: standards relating to educational, technical, and support services to be provided by SBDCs 

receiving assistance; and standards relating to any work plan that 

the Administration may require a SBDC receiving assistance to develop. The Committee intends to have the SBA move forward as 

quickly as possible with this program. The Committee believes that 


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setting standards will help ensure that the grants will be awarded 

to the most qualified SBDC programs and provide a mechanism by 

which the Administrator can evaluate the success of the program. 

The legislation authorizes $7,000,000 for each of fiscal years 

2008 through 2010 for the program. The Administration can carry 

out this program only with amounts appropriated in advance specifically to carry it out. The Committee intends that any funds appropriated to support this program be in addition to funds allocated 

to SBDCs under the normal formula for those funds and that such 

funds be specifically appropriated for this program. 

Section 3: State consultation with tribal organizations 

A Small Business Development Center receiving a grant must request the advice of tribal organizations on how best to provide assistance to Indian tribe members, Alaska Natives, and Native Hawaiians and where to locate satellite centers to provide such assistance. The Committee intends that the SBDC programs receiving 

grants give an active role to the local Tribal Councils in placing additional centers to carry out the programs created by this legislation. While it will be up to these SBDC programs to decide the 

number and location of centers to provide the new services, these 

decisions must be taken after careful consideration of the advice 

provided Native American groups that are the intended beneficiaries of this program. 

VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

JUNE 4, 2007. 

Hon. NYDIA M. VELA ́ ZQUEZ, 

Chairwoman, Committee on Small Business, 

House of Representatives, Washington, DC. 

DEAR MADAM CHAIRWOMAN: The Congressional Budget Office 

has prepared the enclosed cost estimate for H.R. 2284, a bill to 

amend the Small Business Act to expand and improve the assistance provided by Small Business Development Centers to Indian 

tribe members, Alaska Natives, and Native Hawaiians. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 

H.R. 2284—A bill to amend the Small Business Act to expand and 

improve the assistance provided by Small Business Development Centers to Indian tribe members, Alaska Natives, and Native Hawaiians 

Summary: H.R. 2284 would authorize the appropriation of $21 

million over the period of fiscal years 2008 through 2010 to assist 

small businesses owned by Indian tribe members, Alaska Natives, 

and Native Hawaiians. Under the bill, the Small Business Administration would make grants to eligible Small Business Development Centers (SBDC) to assist those groups with start-up and expansion activities. Assuming appropriation of the specified 

amounts, CBO estimates that implementing H.R. 2284 would cost 


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$18 million over the 2008–2012 period. Enacting H.R. 2284 would 

not affect revenues or direct spending. 

H.R. 2284 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would benefit state, local, and tribal governments. 

Estimated cost to the Federal Government: For this estimate 

CBO assumes that the bill will be enacted prior to the start of fiscal year 2008, that the specified amounts will be appropriated each 

year, and that spending will follow historical patterns for similar 

programs. CBO estimates that implementing the bill would cost 

$18 million over the 2008–2012 period to award grants to SBDCs 

to assist small business-owners who are members of Indian tribes, 

Alaska Natives, or Native Hawaiians. 

By fiscal year, in millions of dollars— 

2008 2009 2010 2011 2012 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level .................................................................................................. 7 7 7 0 0 

Estimated Outlays ................................................................................................... * 3 5 6 4 

Note.—* = less than $500,000. 

Intergovernmental and private-sector impact: H.R. 2284 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. By authorizing appropriations for grants to existing SBDCs 

that meet certain requirements, and by waiving requirements that 

eligible entities provide matching funds, the bill would benefit 

state, local, and tribal governments. 

Estimate prepared by: Federal costs: Susan Willie. Impact on 

state, local, and tribal governments: Elizabeth Cove. Impact on the 

private sector: Amy Petz. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

VIII. COMMITTEE ESTIMATE OF COSTS

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 

2284. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its 

report a timely submitted cost estimate of the bill prepared by the 

Director of the Congressional Budget Office under section 402 of 

the Congressional Budget Act. 

IX. OVERSIGHT FINDINGS

In accordance with clause (2)(b)(1) of rule X of the Rules of the 

House of Representatives, the oversight findings and recommendations of the Committee on Small Business with respect to the subject matter contained in H.R. 2284 are incorporated into the descriptive portions of this report. 

X. STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legisVerDate Aug 31 2005 04:49 Jun 19, 2007 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR192.XXX HR192

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lation in Article I, Section 8, clause 18, of the Constitution of the 

United States. 

XI. COMPLIANCE WITH PUBLIC LAW 104–4 

H.R. 2284 contains no unfunded mandates. 

XII. CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 2284 does not relate to the terms and conditions of employment or access to public services or accommodations with the 

meaning of section 102(b)(3) of P.L. 104–1. 

XIII. FEDERAL ADVISORY COMMITTEE STATEMENT

H.R. 2284 does not establish or authorize the establishment of 

any new advisory committees. 

XIV. STATEMENT OF NO EARMARKS

Pursuant to clause 9 of rule XXI, H.R. 2284 does not contain any 

congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of Rule XXI. 

XV. PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: H.R. 2284 

includes a number of provisions designed to update and to improve 

the Small Business Administration’s entrepreneurial assistance 

programs particularly in the delivery of assistance to Indian tribe 

members, Alaska Natives and Native Hawaiians. 

XVI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

SMALL BUSINESS ACT 

* * * * * * * 

SEC. 21. (a)(1) * * * 

* * * * * * * 

(8) ADDITIONAL GRANT TO ASSIST INDIAN TRIBE MEMBERS, 

ALASKA NATIVES, AND NATIVE HAWAIIANS.—

(A) IN GENERAL.—Any applicant in an eligible State that 

is funded by the Administration as a Small Business Development Center may apply for an additional grant to be 

used solely to provide services described in subsection (c)(3) 

to assist with outreach, development, and enhancement on 

Indian lands of small business startups and expansions 

owned by Indian tribe members, Alaska Natives, and Native Hawaiians. 

(B) ELIGIBLE STATES.—For purposes of subparagraph 

(A), an eligible State is a State that has a combined popuVerDate Aug 31 2005 05:32 Jun 19, 2007 Jkt 059006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6603 E:\HR\OC\HR192.XXX HR192

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lation of Indian tribe members, Alaska Natives, and Native 

Hawaiians that comprises at least 1 percent of the State’s 

total population, as shown by the latest available census. 

(C) GRANT APPLICATIONS.—An applicant for a grant 

under subparagraph (A) shall submit to the Administration 

an application that is in such form as the Administration 

may require. The application shall include information regarding the applicant’s goals and objectives for the services 

to be provided using the grant, including— (i) the capability of the applicant to provide training 

and services to a representative number of Indian tribe 

members, Alaska Natives, and Native Hawaiians; 

(ii) the location of the Small Business Development 

Center site proposed by the applicant; 

(iii) the required amount of grant funding needed by 

the applicant to implement the program; and 

(iv) the extent to which the applicant has consulted 

with local Tribal Councils. 

(D) APPLICABILITY OF GRANT REQUIREMENTS.—An applicant for a grant under subparagraph (A) shall comply with 

all of the requirements of this section, except that the 

matching funds requirements under paragraph (4)(A) shall 

not apply. 

(E) MAXIMUM AMOUNT OF GRANTS.—No applicant may receive more than $300,000 in grants under this paragraph 

for one fiscal year. 

(F) REGULATIONS.—After providing notice and an opportunity for comment and after consulting with the Association recognized by the Administration pursuant to paragraph (3)(A) (but not later than 180 days after the date of 

enactment of this paragraph), the Administration shall 

issue final regulations to carry out this paragraph, including regulations that establish— (i) standards relating to educational, technical, and 

support services to be provided by Small Business Development Centers receiving assistance under this 

paragraph; and 

(ii) standards relating to any work plan that the Administration may require a Small Business Development Center receiving assistance under this paragraph 

to develop. 

(G) DEFINITIONS.—In this section, the following definitions apply: 

(i) INDIAN LANDS.—The term ‘‘Indian lands’’ has the 

meaning given the term ‘‘Indian country’’ in section 

1151 of title 18, United States Code, the meaning given 

the term ‘‘Indian reservation’’ in section 151.2 of title 

25, Code of Federal Regulations (as in effect on the 

date of enactment of this paragraph), and the meaning 

given the term ‘‘reservation’’ in section 4 of the Indian 

Child Welfare Act of 1978 (25 U.S.C. 1903). 

(ii) INDIAN TRIBE.—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 


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recognized as eligible for the services provided to Indians by the Secretary of the Interior because of their status as Indians. 

(iii) INDIAN TRIBE MEMBER.—The term ‘‘Indian tribe 

member’’ means a member of an Indian tribe (other 

than an Alaska Native). 

(iv) ALASKA NATIVE.—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)). 

(v) NATIVE HAWAIIAN.—The term ‘‘Native Hawaiian’’ means any individual who is— (I) a citizen of the United States; and 

(II) a descendant of the aboriginal people, who 

prior to 1778, occupied and exercised sovereignty 

in the area that now constitutes the State of Hawaii. 

(vi) TRIBAL ORGANIZATION.—The term ‘‘tribal organization’’ has the meaning given that term in section 4(l) 

of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(l)). 

(H) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this paragraph 

$7,000,000 for each of fiscal years 2008 through 2010. 

(I) FUNDING LIMITATIONS.— (i) NONAPPLICABILITY OF CERTAIN LIMITATIONS.— Funding under this paragraph shall be in addition to 

the dollar program limitations specified in paragraph 

(4). 

(ii) LIMITATION ON USE OF FUNDS.—The Administration may carry out this paragraph only with amounts 

appropriated in advance specifically to carry out this 

paragraph. 

* * * * * * * 

(c)(1) * * * 

* * * * * * * 

(9) ADVICE OF LOCAL TRIBAL ORGANIZATIONS.—A Small Business 

Development Center receiving a grant under this section shall request the advice of tribal organizations on how best to provide assistance to Indian tribe members, Alaska Natives, and Native Hawaiians and where to locate satellite centers to provide such assistance. 

* * * * * * * 


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