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34–836 PDF 2007

FULL COMMITTEE MARKUP OF

ENTREPRENEURIAL DEVELOPMENT LEGISLATION

COMMITTEE ON SMALL BUSINESS 

UNITED STATES HOUSE OF 

REPRESENTATIVES

ONE HUNDRED TENTH CONGRESS

FIRST SESSION

MAY 23, 2007

Serial Number 110-24

Printed for the use of the Committee on Small Business

(

Available via the World Wide Web: http://www.access.gpo.gov/congress/house 

HOUSE COMMITTEE ON SMALL BUSINESS 

NYDIA M. VELA ́ ZQUEZ, New York, Chairwoman 

JUANITA MILLENDER-McDONALD, 

California 

WILLIAM JEFFERSON, Louisiana 

HEATH SHULER, North Carolina 

CHARLIE GONZA ́ LEZ, Texas 

RICK LARSEN, Washington 

RAUL GRIJALVA, Arizona 

MICHAEL MICHAUD, Maine 

MELISSA BEAN, Illinois 

HENRY CUELLAR, Texas 

DAN LIPINSKI, Illinois 

GWEN MOORE, Wisconsin 

JASON ALTMIRE, Pennsylvania 

BRUCE BRALEY, Iowa 

YVETTE CLARKE, New York 

BRAD ELLSWORTH, Indiana 

HANK JOHNSON, Georgia 

JOE SESTAK, Pennsylvania 

STEVE CHABOT, Ohio, Ranking Member 

ROSCOE BARTLETT, Maryland 

SAM GRAVES, Missouri 

TODD AKIN, Missouri 

BILL SHUSTER, Pennsylvania 

MARILYN MUSGRAVE, Colorado 

STEVE KING, Iowa 

JEFF FORTENBERRY, Nebraska 

LYNN WESTMORELAND, Georgia 

LOUIE GOHMERT, Texas 

DEAN HELLER, Nevada 

DAVID DAVIS, Tennessee 

MARY FALLIN, Oklahoma 

VERN BUCHANAN, Florida 

JIM JORDAN, Ohio 

MICHAEL DAY, Majority Staff Director 

ADAM MINEHARDT, Deputy Staff Director 

TIM SLATTERY, Chief Counsel 

KEVIN FITZPATRICK, Minority Staff Director

STANDING SUBCOMMITTEES 

Subcommittee on Finance and Tax

MELISSA BEAN, Illinois, Chairwoman 

RAUL GRIJALVA, Arizona 

MICHAEL MICHAUD, Maine 

BRAD ELLSWORTH, Indiana 

HANK JOHNSON, Georgia 

JOE SESTAK, Pennsylvania 

DEAN HELLER, Nevada, Ranking 

BILL SHUSTER, Pennsylvania 

STEVE KING, Iowa 

VERN BUCHANAN, Florida 

JIM JORDAN, Ohio

Subcommittee on Contracting and Technology

BRUCE BRALEY, IOWA, Chairman 

WILLIAM JEFFERSON, Louisiana 

HENRY CUELLAR, Texas 

GWEN MOORE, Wisconsin 

YVETTE CLARKE, New York 

JOE SESTAK, Pennsylvania 

DAVID DAVIS, Tennessee, Ranking 

ROSCOE BARTLETT, Maryland 

SAM GRAVES, Missouri 

TODD AKIN, Missouri 

MARY FALLIN, Oklahoma

(II) 

Subcommittee on Regulations, Health Care and Trade

CHARLES GONZA ́ LEZ, Texas, Chairman 

WILLIAM JEFFERSON, Louisiana 

RICK LARSEN, Washington 

DAN LIPINSKI, Illinois 

MELISSA BEAN, Illinois 

GWEN MOORE, Wisconsin 

JASON ALTMIRE, Pennsylvania 

JOE SESTAK, Pennsylvania 

LYNN WESTMORELAND, Georgia, Ranking 

BILL SHUSTER, Pennsylvania 

STEVE KING, Iowa 

MARILYN MUSGRAVE, Colorado 

MARY FALLIN, Oklahoma 

VERN BUCHANAN, Florida 

JIM JORDAN, Ohio

Subcommittee on Urban and Rural Entrepreneurship

HEATH SHULER, North Carolina, Chairman 

RICK LARSEN, Washington 

MICHAEL MICHAUD, Maine 

GWEN MOORE, Wisconsin 

YVETTE CLARKE, New York 

BRAD ELLSWORTH, Indiana 

HANK JOHNSON, Georgia 

JEFF FORTENBERRY, Nebraska, Ranking 

ROSCOE BARTLETT, Maryland 

MARILYN MUSGRAVE, Colorado 

DEAN HELLER, Nevada 

DAVID DAVIS, Tennessee

Subcommittee on Investigations and Oversight

JASON ALTMIRE, PENNSYLVANIA, Chairman 

JUANITA MILLENDER-McDONALD, 

California 

CHARLIE GONZA ́ LEZ, Texas 

RAUL GRIJALVA, Arizona 

LOUIE GOHMERT, Texas, Ranking 

LYNN WESTMORELAND, Georgia

(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page

Vela ́zquez, Hon. Nydia M. ....................................................................................... 1

Chabot, Hon. Steve .................................................................................................. 2

Michaud, Hon. Michael ........................................................................................... 3

Shuler, Hon. Heath .................................................................................................. 4, 7

Buchanan, Hon. Vern .............................................................................................. 5

Fallin, Hon. Mary .................................................................................................... 8

Grijalva, Hon. Raul .................................................................................................. 10

Sestak, Hon. Joe ...................................................................................................... 11

APPENDIX 

Prepared Statements: 

Vela ́zquez, Hon. Nydia M. ....................................................................................... 14

Chabot, Hon. Steve .................................................................................................. 16

(V) 

(1)

FULL COMITTEE MARKUP OF 

ENTREPRENEURIAL DEVELOPMENT 

LEGISLATION 

WEDNESDAY, MAY 23, 2007

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

Washington, DC. 

The Committee met, pursuant to call, at 10:00 a.m., in Room 

2360 Rayburn House Office Building, Hon. Nydia Vela ́zquez 

[Chairwoman of the Committee] presiding. 

Present: Representatives Vela ́zquez, Jefferson, Shuler, Gonzalez, 

Grijalva, Michaud, Cuellar, Moore, Altmire, Braley, Clarke, Ellsworth, Sestak, Chabot, Bartlett, Graves, Fortenberry, Heller, 

Davis, Fallin, Buchanan and Jordan. 

OPENING STATEMENT OF CHAIRWOMAN VELA ́ ZQUEZ 

Chairwoman VELA ́ ZQUEZ. I am pleased to call to order today’s 

markup. 

Today’s markup addresses two very important issues for small 

firms—energy and the SBA’s entrepreneurial development programs. Because they provide three out of every four new jobs, there 

is no question that high-quality technical assistance and energy efficient resources should be available to small business owners. 

One of the most important objectives of the SBA is to provide direction and resources to those looking to start and grow their businesses. To do this, the agency has a number of initiatives that were 

designed to meet the needs of small business owners. However, as 

the economy has changed, so have the challenges facing this nation’s entrepreneurs. At the top of this list is the need for relief 

from rising energy costs. In fact, two-thirds of small business owners anticipate a decrease in profits due to the current price of energy. 

The bills before us today provide SBA’s entrepreneurial development programs with the capacity to ensure small businesses can 

address the specific issues they face in current economic conditions. 

In addition, entrepreneurs will have access to the tools necessary 

to address their energy needs. I want to thank my colleagues for 

working on these issues and for the solutions they have developed. 

Today’s environment for small business is not easy. We hear constantly of the barriers that stand in the way of their success. With 

the contributions they make to this country, it is important that we 

give small firms the resources they deserve. All members of the 

Committee should be commended for their work towards this goal. 

2

At the conclusion of today’s markup, this Committee will have 

moved 10 separate pieces of legislation, 5 of which have already 

passed the House. We could not have done this without everyone’s 

cooperation, and I appreciate the members’ willingness to work together. I especially want to thank Ranking Member Chabot for all 

of his construction feedback. 

What the Committee has been able to do so far represents significant progress. I want to make it clear that this is not because 

of one person’s or one side’s agenda, but because of the bipartisan 

collaboration we have maintained. While we have accomplished a 

lot, we have much more to do, if our goal is to improve the environment for entrepreneurs. 

I look forward to continuing to work together in a way that best 

serves the needs of our nation’s small businesses. I would now like 

to yield to Ranking Member Chabot for his opening remarks. 

OPENING STATEMENT OF MR. CHABOT 

Mr. CHABOT. I would like to thank the Chairwoman for holding 

this markup and for her remarks here this morning—this markup 

on this important set of bills. The Committee has not examined legislation concerning the outreach and technical assistance programs 

of the Small Business Administration in almost four years, and 

Congress has not considered a general overall of such programs 

since the reauthorization in 2000. 

Of the 28 million small businesses in the United States, the vast 

majority do not have the financial wherewithal to hire sophisticated management consultants or retain large numbers of in-house 

staff to address the myriad issues that their businesses face. The 

vast spectrum of businesses and the potential needs of their owners 

require an equally broad array of technical advice services to help 

them prosper. 

This advice might range from the simplicity of preparing a 

cashflow chart for a home-based business to compliance with the 

Environmental Protection Agency’s latest maximum achievable 

control standard for air pollutants. Given the need, Congress authorized a wide variety of public-private partnerships overseen by 

the Small Business Administration to offer technical advice that 

larger businesses can obtain from either their own personal or 

through the retention of consulting firms. 

These programs run the gamut from general outreach programs 

offered by volunteer executives to programs designed to target assistance at groups that normally might not even consider that the 

government has programs to assist them in the operation of their 

businesses. No one can deny the effectiveness of these programs. 

As we heard during testimony last week, the technical assistance 

provided has helped Native Americans start businesses despite numerous bureaucratic hurdles, and an immigrant woman create a 

thriving handbag manufacturing company. With continued rapid 

changes in the American economy, the technical assistance programs must be able to respond in a similarly agile manner. 

The bills that we are considering today are an excellent start in 

maintaining the quality of these programs while ensuring that they 

meet any objectives related to reaching their targeted audiences. In 

addition, the bills will reduce bureaucratic red tape facing the priVerDate 0ct 09 2002 16:46 Jan 22, 2008 Jkt 033615 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 G:\CLERK SB\HEARINGS\TRANSCRIPTS\34836.TXT LEANN
3

vate partners while providing and improving oversight of these programs. Given the benefits that these programs provide to small 

businesses and entrepreneurs, I think we all support them. 

I must make a few comments about the scope of the bill on small 

business development centers. As I noted in my opening statement 

when Mr. Preston testified on the President’s budget for the SBA, 

it seems fair that the small business development centers, SBDCs, 

should get an increase to cover inflation, if the SBA gets a similar 

increase. So an authorization increase is useful. 

However, I am less than convinced of the need for the multiplicity of additional targeted competitive grant programs for the 

SBDCs. I recognize that none of these programs will reduce the 

core funding for the program and will require separate appropriate. 

Despite this, I think we need to work in a bipartisan manner to 

think about ways that the size of this authorization for the various 

targeted programs might be further reduced. 

Finally, I must address one bill before us today that is not directly related to the SBA’s entrepreneurial development programs. 

No one can doubt that rising energy costs are a problem for America’s businesses. The ultimate solution probably requires a mix of 

developing more energy resources within the control of the United 

States while also using these resources more efficiently. 

Small businesses are innovators, and rising energy costs certainly constitutes the necessity that is the mother of innovation. To 

the extent that the bill we are considering today assists small businesses, both as producers of energy resources and teaches them 

new ways to use energy more efficiently, I find no reason to oppose 

the bill. 

The modifications in this bill to Title III of the Small Business 

Investment Act of 1958 may have some utility, and, as drafted, do 

not increase any spending. Nevertheless, I am concerned that the 

appropriators may interpret the authorization from this Committee 

as the go-ahead to appropriate before allowing the program to operate a zero subsidy and see whether there is even a need for federal 

funding of venture capital for small businesses constructing renewable fuel plants. 

But, again, although we do have some reservations on some aspects in some areas, overall we think all of these bills move us in 

the right direction, and I want to again commend the Chairwoman 

for working in a bipartisan manner and including members on both 

sides who have offered bills that will be addressed here this morning. 

And, again, thank you, Madam Chair, for your cooperation. And 

I yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you, Ranking Member Chabot. 

Are there any other members that wish to be recognized for the 

purpose of opening remarks? I now recognize the gentleman from 

Maine for the purpose of a colloquy. 

OPENING STATEMENT OF MR. MICHAUD 

Mr. MICHAUD. Thank you very much, Madam Chairwoman, Mr. 

Ranking Member. I was going to offer amendments to the bills this 

morning that create new grant programs today. While I have decided not to offer them, my goal was to protect the core funding of 

4

the small business development center program. And it was to ensure that the creation of any new grant programs do not reduce the 

core funding for SBDC programs. 

Will the Chair and Ranking Member work with me to protect the 

core funding as we move forward on the authorization and appropriation process? 

Chairwoman VELA ́ ZQUEZ. I thank the gentleman for raising this 

important issue, and I agree that we need to address this, and I 

will make a commitment to work with you and your staff on this 

matter as Congress considers the funding for the core SBDC program. 

Mr. MICHAUD. Thank you, Madam Chairwoman. I also would like 

to ask unanimous consent to allow the Association of Small Business Development Centers to submit a letter for the record dealing 

with this issue. 

Chairwoman VELA ́ ZQUEZ. Without objection. 

Mr. MICHAUD. Thank you. 

Chairwoman VELA ́ ZQUEZ. Are there any other members that wish 

to be recognized for the purpose of opening remarks? Mr. Shuler? 

OPENING STATEMENT OF MR. SHULER 

Mr. SHULER. Madam Chair, thank you, and thank Ranking Member Chabot for the hard work and the dedication of holding this 

markup today. 

I am particularly pleased that we are considering the Small Energy Efficiency Business Act. Small businesses are the first to be 

affected by rising energy prices. The small businesses will be the 

first to find the solutions. This bill will give them the tools that 

they need to lead our nation to energy efficiency and independence, 

and I urge my colleagues to support this bill. 

And, once again, just a special thanks to Ranking Member 

Chabot and to Chairwoman Vela ́zquez for their hard work and 

dedication. And, truly, of all the committees, this is certainly a very 

bipartisan support, and I commend both of you for that.

Mr. CHABOT. A breath of fresh air, as we like to say. 

Mr. SHULER. That it is. 

Mr. CHABOT. Excellent. 

Chairwoman VELA ́ ZQUEZ. Are there any other members that wish 

to be recognized for the purpose of opening remarks? 

Mr. CHABOT. Madam Chair? 

Chairwoman VELA ́ ZQUEZ. Yes. 

Mr. CHABOT. If any of our members would like to speak, they are 

certainly welcome to speak or they can wait until we bring up the 

bill. We are going to bring up the bills individually? 

Chairwoman VELA ́ ZQUEZ. Yes. 

Mr. CHABOT. Yes. They can speak at the bill at that time, if they 

would like. 

Chairwoman VELA ́ ZQUEZ. The first order of business is to consider the SBA’s Veterans’ Program Act of 2007, introduced by Representative Buchanan. 

Today, more than 130,000 troops have already returned home 

from Iraq and Afghanistan. These men and women are increasingly 

5

turning towards small business ownership. In fact, veteran business owners account for 14 percent of all self-employed in the U.S. 

Mr. Buchanan’s legislation ensures that those servicemen and 

women who are returning from Iraq or Afghanistan and 

transitioning into civilian life will have all the opportunities possible to pursue entrepreneurship, should they choose that career 

path. This bill strengthens and expands existing programs, providing counseling and necessary resources to veterans. 

Veterans are an increasing portion of the small business sector. 

After the dedication they have demonstrated to this country, helping them achieve the American dream of entrepreneurship is the 

least that we can do. 

I strongly urge support of this legislation. I now yield to the bill’s 

sponsor, Mr. Buchanan, for his remarks. 

STATEMENT OF MR. BUCHANAN ON H.R. 2366

Mr. BUCHANAN. Thank you, Madam Chair. And I would also like 

to say that I want to thank you. You don’t just talk about bipartisanship spirit, you have reached out to me numerous times, called 

me. I appreciate that. I think a lot of freshmen coming in, we wanted to have that sense of that spirit, and I appreciate that leadership. 

I would also like to thank the Ranking Member for working with 

me on this legislation, allowing for a swift consideration. 

I want to also urge my colleagues on the Small Business Committee to join me in an effort to enact a good piece of legislation 

that will go a long way towards helping our veterans succeed in the 

small business world after their military service is over. 

My bill, H.R. 2366, would create an important program within 

the Small Business Administration that will give our veterans not 

just a chance at success, but a real chance, and provide them with 

all of the help and assistance a grateful nation can offer. The legislation is intended to help veterans through grants, information 

services, and contacts with professionals in their field of endeavor. 

This federal support will enhance the ability of a veteran to become an entrepreneur, his or her, in their own right. My bill would 

put an emphasis on providing veterans with market research, financial options, and technological training important to becoming 

a successful business owner. 

H.R. 2366 not only expands the number and scope of veteran outreach centers, it ensures the openings of more doors and opportunities for our women veterans. Assisting our women returning from 

combat has been an area long overlooked, and it is high time we 

did something about it. 

Today, our Committee will pass a bill that will help individuals 

make an important transition from being a veteran to a small business entrepreneur. I urge all my colleagues to support H.R. 2366. 

Thank you, Madam, Chair. 

Chairwoman VELA ́ ZQUEZ. Thank you. 

I now yield to Ranking Member, Mr. Chabot. 

Mr. CHABOT. Thank you, Madam Chair. And in the interest of 

moving the markup along, I will be very brief. I just want to commend the gentleman from Florida for offering this helpful bill. 

6

There is no group, I believe, who have earned our appreciation 

more than the veterans. 

And we have, as we know, many, many of our military personnel 

are serving in Iraq and Afghanistan and other places around the 

world, and many of these military personnel are obviously women 

as well. So I want to commend the gentleman for offering this, and 

we appreciate his hard work on this Committee. 

And I yield back the balance of my time. 

Chairwoman VELA ́ ZQUEZ. Thank you. 

Are there any other members that wish to be recognized? 

[No response.] 

The Committee now moves to consideration of the bill H.R. 2366. 

The Clerk will report the title of the bill. 

The CLERK. H.R. 2366, to reauthorize the Veterans’ Entrepreneurial Development Programs of the Small Business Administration, and for other purposes. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent that the bill 

in its entirety be open for amendments at this time. Does any 

member seek recognition for the purpose of offering an amendment? 

[No response.] 

Seeing no amendments, the question is on reporting H.R. 2366. 

All those in favor, say aye. 

[Ayes.] 

Those opposed, say no. 

[No response.] 

The ayes have it. The bill is adopted and reported. 

The next order of business is to consider the Small Energy Efficient Business Act, introduced by Representative Shuler.

Currently, the leading concern for small business owners is the 

high cost of energy. Gas prices are now reaching an average of 

$3.10, up 77 cents from the beginning of the year. There is no question that this is having an impact on entrepreneurs. 

Given that small businesses already have limited margins, the 

last thing they need is additional costs adding to their bottom line. 

H.R. 2389 will help small businesses by providing new financing 

options for the purchase of more energy efficient products. 

For example, a small business owner could save 20 percent of its 

energy costs by installing a solar water heating system that has an 

upfront cost of $160,000. But with a savings in energy use, it will 

pay for itself in five years. Clearly, any assistance we can provide 

to help small businesses purchase such products is well worth the 

investment. 

This legislation not only helps small firms reduce energy consumption, but also recognizes the pivotal role they play in the development of energy efficient technology. Entrepreneurs are leading 

the way, accounting for more than 70 percent of renewable fuel 

producers. H.R. 2389 ensures that this will continue by creating equity investment tools specifically targeting the development of the 

next generation of renewable fuels. 

Today, through the Small Energy Efficient Business Act, we have 

an opportunity to address the energy concerns of entrepreneurs 

and to provide them with some relief. I urge support of this legislaVerDate 0ct 09 2002 16:46 Jan 22, 2008 Jkt 033615 PO 00000 Frm 00012 Fmt 6633 Sfmt 6633 G:\CLERK SB\HEARINGS\TRANSCRIPTS\34836.TXT LEANN
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tion, and now I recognize or yield to the bill’s sponsor, Mr. Shuler, 

for this remarks. 

STATEMENT OF MR. SHULER ON H.R. 2389

Mr. SHULER. Madam Chair, thank you. And as I made reference 

to in my opening remarks, you know, our small businesses are—

is a business that is affected mostly, and with—as you say, the 

margins are so close in our small business, we have got to do all 

that we can to protect them and to ensure their longevity, and the 

small business continues to be the backbone of our community 

throughout our country. 

And helping them with this legislation will certainly be able to 

help them gain some of the funding that is necessary for them to 

cut down on their costs and be more energy efficient and lead the 

way. And I just urge my colleagues to support this bill. 

I yield back. 

Chairwoman VELA ́ ZQUEZ. I yield to Mr. Chabot for his remarks. 

Mr. CHABOT. Thank you, Madam Chair. Once again, I will be 

brief. I want to commend the gentleman from North Carolina for 

his leadership in offering this piece of legislation. There is no question that the small business community faces a number of challenges, probably the top challenge being the high cost of health 

care, but no question number two is probably the high cost of energy, and it has been going nowhere but up. 

So this legislation hopefully will move us in the right direction, 

and I want to commend the gentleman for offering it. 

I yield back the balance of my time. 

Chairwoman VELA ́ ZQUEZ. Are there any other members that wish 

to be recognized on H.R. 2389? 

[No response.] 

The Committee now moves to consideration of the bill H.R. 2389. 

The Clerk will report the title of the bill. 

The CLERK. H.R. 2389, to help small businesses to develop, invest in, and purchase energy efficient buildings, fixtures, equipment, and technology. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent that the bill 

in its entirety be open for amendments at this time. Does any 

member seek recognition for the purpose of offering an amendment? 

[No response.] 

Seeing no amendments, the question is on reporting H.R. 2389. 

All those in favor, say aye. 

[Ayes.] 

Those opposed, say no. 

[No response.] 

The ayes have it. The bill is adopted and reported.

The next piece of legislation that we will consider is the SBA’s 

Women’s Procurement Act of 2007, introduced by Representative 

Fallin.

Women-owned small businesses have increased at nearly double 

the rate of all firms. There is no doubt that women’s business centers, with their technical assistance and counseling initiatives, 

8

have played a key role in facilitating this phenomenal growth. Representative Fallin’s legislation will provide needed stability while 

redirecting the program back to its original mission of helping develop entrepreneurship around low-income and economic disadvantaged areas. 

We often talk about moving women from welfare to work. Women 

business centers have the potential to move women from welfare 

to entrepreneurship. With Ms. Fallin’s bill, we will build on the 

strong track record of this program. 

I now urge the support of this legislation and yield to Ms. Fallin 

for her remarks. 

STATEMENT OF MS. FALLIN ON H.R. 2397

Ms.FALLIN. Thank you, Madam Chair. I appreciate your support, 

and I also want to say how much I appreciate your commitment to 

startup businesses, growing businesses, creating jobs and creating 

an environment for entrepreneurship and working together as a 

team on this Committee. 

And I also want to commend Ranking Member Chabot’s comments about targeted assistance to groups, because that is what I 

am hoping to accomplish in this legislation. He also mentioned 

about maintaining quality of our federal programs and reaching 

our objectives in the areas that we target, and that is what I am 

hoping to do in this legislation. 

Women business centers are an important part of grant programs that are funded by the Small Business Administration. 

Today, women business centers all across the country are providing 

women entrepreneurs with much needed technical assistance in 

starting and operating their small businesses. 

In the mid-’90s, the Federal Government began awarding grants 

to women business centers that were operating as non-profit organizations in conjunction with institutions of higher learning. Originally, these grants were intended to be awarded to business centers in their first five years with the understanding that after this 

five-year period had ended the center would be financially self- sustaining. 

Although many women business centers did meet this goal, some 

have not, and for a variety of reasons. As a result, a greater percentage of the funding for this program has been consumed by operating costs at potentially unviable centers rather than the intended purpose of establishing new business centers. The result is 

a drag upon the system and viable business centers that are not 

truly serving an unmet need in their communities, and this jeopardizes the effectiveness and viability of the entire program. 

H.R. 2397, the SBA Women’s Business Programs Act of 2007, restores the original priorities held by the Federal Government when 

this program was created. By offering a three-tier system of funding and lower caps on assistance for older business centers, we can 

ensure a balanced percentage of funding, and that it is used to support both new and existing business centers. 

The first tier requires at least 40 percent of the total funds to 

be reserved for the purpose of establishing and supporting new 

women business centers during their first five years in existence. 

The second tier will be used—that is 20 percent of total funds—to 

9

sustain the centers that have successfully existed during the first 

five years. And, lastly, the third tier will use a maximum of 40 percent of the funds to continue supporting centers that have existed 

already for eight years or more, and have met necessary benchmarks set forth by the SBA to receive this funding. 

This three-tier system will offer a helping hand to the newly-established centers while slowly weaning the older centers off dependency of federal grant funds. It is important to realize that this 

legislation does not affect the overall funding level for this program. Rather, it just rearranges the distribution of funds to reflect 

the original intention of these grants and to offer temporary assistance, rather than one that has permanent dependency on the Federal Government. 

And this legislation will ultimately restore accountability, it will 

add benchmarks and efficiency to a program that, while it is well 

intentioned, has become weighed down by inefficiency. 

So, Madam Chairman, I urge all members to join me in support 

of the Women’s Business Act of 2007, and I yield back my time. 

Thank you. 

Chairwoman VELA ́ ZQUEZ. Thank you. 

I now yield to Ranking Member Chabot. 

Mr. CHABOT. Thank you, Madam Chair. Once again, I will be 

brief. I want to thank the gentlelady from Oklahoma for offering 

this excellent bill. The gentlelady, before she came here to Congress, was the Lieutenant Governor of Oklahoma and had considerable expertise in the area of small business, so she has brought I 

think that expertise and experience to this Committee, and this bill 

is an example of a piece of legislation that I think will help not 

only this Committee but the country as well. 

So thank you for offering it, and I would encourage my colleagues 

to support it. 

Chairwoman VELA ́ ZQUEZ. Are there any other members who wish 

to be recognized at this point? 

[No response.] 

The Committee now moves to consideration the bill H.R. 2397. 

The Clerk will report the title of the bill. 

The CLERK. H.R. 2397, to reauthorize the Women’s Entrepreneurial Development Programs of the Small Business Administration, and for other purposes. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent that the bill 

in its entirety be open for amendments at this time. Does any 

member seek recognition for the purpose of offering an amendment? 

[No response.] 

Seeing no amendments, the question is on reporting H.R. 2397. 

All those in favor, say aye. 

[Ayes.] 

Those opposed, say no. 

[No response.] 

The ayes have it. The bill is adopted and reported. 

The next order of business is to consider the Native American 

Small Business Development Act of 2007, introduced by Representative Udall.

10

There is no doubt small businesses spur economic growth and 

play a major role in the development and revitalization of neighborhoods across the country. A tremendous need exists in our Native 

American populations. These communities are among the most impoverished, with almost half of the residents on reservations unemployed and with very few opportunities to improve their situation. 

While many are clearly struggling, there is a strong desire to engage in entrepreneurship. The good news is that the Native American businesses are growing at a rate of 84 percent. Small business 

ownership is one of the strongest anti-poverty tools we have. If we 

want this trend to continue, budding entrepreneurs must receive 

the counseling and technical assistance necessary to create successful ventures. 

H.R. 2284 ensures Native American populations have access to 

the assistance they need to start or expand their businesses. This 

will be accomplished by a three-year pilot project that establishes 

Native Americans counseling centers through SBDCs. Enabling entrepreneurship to thrive and economic opportunity to grow in some 

of the most disadvantaged areas of this country is critical. This approach will ensure that the unique needs of these tribes are taken 

into account. 

The Native American Small Business Development Act of 2007 

encourages a comparative relationship between the state SBDC 

and the Native American population by requiring consultation with 

local tribe councils on how best to assist entrepreneurial development. 

This bill has enjoyed bipartisan support in the past and has 

passed the House in previous Congresses. It is my hope that with 

this Congress it can finally become law and expand the right to 

business ownership. 

I now yield—I encourage all the members to support this legislation, and I yield to Mr. Chabot for his remarks. 

Mr. CHABOT. Thank you, Madam Chair. I, once again, will be 

brief. I want to commend Mr. Udall for his hard work on behalf of 

Native Americans and other groups in this country and this legislation and urge its adoption. 

I yield back. 

Chairwoman VELA ́ ZQUEZ. Are there any other members who wish 

to be recognized? Mr. Grijalva. 

STATEMENT OF MR. GRIJALVA ON H.R. 2284

Mr. GRIJALVA. Thank you, Madam Chair, and I, as a co-sponsor 

of this legislation, thank Mr. Udall and associate myself with the 

comments that you made in describing this legislation. It is vital 

that on tribal lands that there be a diversification of the economies 

of that land and of the people on that land, and I think this legislation goes a long ways toward bringing technical assistance, bringing a survival—higher survival rate for businesses on tribal land. 

And the important point I think that you mentioned, Madam 

Chair, is the consultation. The state must consult with tribal leadership and tribal councils to assure that the strategies and the 

training is going to be appropriate. I think this is a huge step toward diversifying the economies on reservations and tribal lands, 

11

and I want to applaud the sponsor of the legislation and you, 

Madam Chair, for bringing this bill to us so rapidly. 

Thank you very much. 

Chairwoman VELA ́ ZQUEZ. Are there any other members that wish 

to be recognized on H.R. 2284? 

[No response.] 

The Committee now moves to consideration of the bill H.R. 2284. 

The clerk will report the title of the bill. 

The CLERK. 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. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent that the bill 

in its entirety be open for amendments at this time. Does any 

member seek recognition for the purpose of offering an amendment? 

[No response.] 

Seeing no amendments, the question is on reporting H.R. 2284. 

All those in favor, say aye. 

[Ayes.] 

Those opposed, say no. 

[No response.] 

In the opinion of the chair, the ayes have it. The bill is adopted 

and reported.

Today’s last order of business is the consideration of the SBA’s 

Entrepreneurial Development Programs Act of 2007, sponsored by 

Vice Chairman Sestak.

Technical assistance is one of the most often overlooked but most 

important services that can be provided to a small business owner. 

It has been well documented that businesses that receive this type 

of assistance are twice as likely to succeed. Mr. Sestak’s bill not 

only enhances SBA entrepreneurial development programs, but 

also modernizes them to address many of the new challenges small 

businesses face today. 

While focusing on these types of concerns, the legislation provides much needed tools for entrepreneurs. It allows them to remain competitive in today’s market and adapt to changing economic conditions. I strongly urge support of this legislation, and I 

yield to the sponsor of the bill, Mr. Sestak, for this remarks. 

STATEMENT OF MR. SESTAK ON H.R. 2359

Mr. SESTAK. Thank you, Madam Chair, and thank you and to 

your staff for the great support in this bill. And to the Ranking 

Member, thank you for your continued support of this and the 

other efforts I have tried to do through this Committee. 

I appreciate the opportunity to speak about this Entrepreneurial 

Development Program Reauthorization Act, which impacts two specific programs—the SBDC, small business development centers, 

and the Service Corps for Retired Executives, SCORE. First, the 

core SBDC program has been extremely effective, but there are certain operational improvements that can make it better in terms of 

flexibility. 

12

To this end, the changes that are proposed here will, first, ensure 

the quality of grant recipients to host SBDCs. Second, it will help 

SBDCs maintain their autonomy from undue SBA interference. 

Third, it will strengthen confidentiality protections for clients who 

come to the SBDC. 

Fourth, it will ensure that taxpayer dollars used to fund SBDC 

programs are kept solely for business development instead of other 

administrative functions. And, last, it will allow exemptions to the 

current cap on non-matching portability grants in the event of natural or human-caused disasters. 

It also has several new grant programs that are focused upon the 

particular needs of business constituencies, and I will just mention 

a few in view of time. First is the Capital Access Initiative, to establish grants to assist entrepreneurs in processing loan applications. Second is the Innovation and Competitiveness Initiatives 

that allow SBDCs to become technology centers to help market 

technologies and advance projects. 

Third is the older entrepreneurial assistance programs targeting 

older Americans interested in transitioning to business owners. 

There are others, but the last that I would like to mention is the 

Affordability Health Care Initiative—such a burden, right up there 

with the energy cost, that help—in order to help small businesses 

provide in the future affordable health care insurance options to 

their employees. 

And then, there is the SCORE Program included in this, which 

I am pleased at, in the sense that I believe it can even be stronger, 

with the provision in this bill that will actively recruit volunteer 

mentors who will reflect the changes socially and economically in 

the diversity throughout America, in particular with women and 

underrepresented minorities. 

So, again, thank you to both of you, and, Madam Chair, for allowing me to speak for a few moments on what I am very pleased 

will help throughout this nation, and I know will help my district.

Chairwoman VELA ́ ZQUEZ. Thank you. 

I now yield to Mr. Chabot. 

Mr. CHABOT. Thank you, Madam Chair, and, again, I will be 

brief. 

I want to thank the gentleman from Pennsylvania for offering 

this Entrepreneurial Development Programs Act. I think there are 

some changes and some modifications in here that are helpful and 

that will benefit small businesses, not only in Pennsylvania but 

around the country, and I commend the gentleman for offering it. 

Yield back. 

Chairwoman VELA ́ ZQUEZ. Are there any other members that wish 

to be recognized on H.R. 2359? 

[No response.] 

The Committee now moves to consideration of the bill H.R. 2359. 

The clerk will report the title of the bill. 

The CLERK. H.R. 2359, to reauthorize programs to assist small 

business concerns, and for other purposes. 

Chairwoman VELA ́ ZQUEZ. I ask unanimous consent that the bill 

in its entirety be open for amendments at this time. Does any 

13

member seek recognition for the purpose of offering an amendment? 

[No response.] 

Seeing no amendments, the question is on reporting H.R. 2359. 

All those in favor, say aye. 

[Ayes.] 

Those opposed, say no. 

[No response.] 

The ayes have it. The bill is adopted and reported. 

I ask unanimous consent that the Committee is authorized to 

correct section numbers, punctuation, and cross references, and to 

make other necessary technical and conforming corrections on the 

bills considered today. 

Without objection, so ordered. 

This markup is adjourned. Thank you. 

[Whereupon, at 10:45 a.m., the Committee was adjourned.]

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