69–010 

Calendar No. 253 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–412 

SMALL BUSINESS BROADBAND AND EMERGING 

INFORMATION TECHNOLOGY ENHANCEMENT ACT 

DECEMBER 20, 2016.—Ordered to be printed 

Filed, under authority of the order of the Senate of December 10 (legislative day, 

December 9), 2016 

Mr. VITTER, from the Committee on Small Business and 

Entrepreneurship, submitted the following 

R E P O R T 

[To accompany S. 2116] 

The Committee on Small Business and Entrepreneurship, to 

which was referred the bill (S. 2116) to improve certain programs 

of the Small Business Administration to better assist small business customers in accessing broadband technology, and for other 

purposes, having considered the same, reports favorably thereon 

with an amendment and recommends that the bill, as amended, do 

pass. 

I. INTRODUCTION

The Small Business Broadband and Emerging Information Technology Enhancement Act (S. 2116) was introduced by Jeanne Shaheen, for herself, and Chairman David Vitter on October 1, 2015. 

The bill provides for training at the SBA to assist small businesses 

with the goal of providing resources and information for improved 

small business access to broadband. During the markup of the bill, 

the bill was approved unanimously by voice vote. 

II. HISTORY (PURPOSE & NEED FOR LEGISLATION)

In 2010, the Federal Communications Commission (FCC) released the National Broadband Plan to improve Internet access in 

the United States. The report included a strategy for maximizing 

the use of high-speed Internet (‘‘broadband’’) for entrepreneurial activity and job growth. This plan included sections for launching a 

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private-public partnership that helps small businesses use 

broadband technology. Parts of this report are included in the Findings section of the bill, including the clause that the SBA should 

hone its expertise in broadband and advanced IT technology to ensure that small businesses benefit from these services. The report 

suggested that these services be disseminated through the SBA’s 

counseling programs and resource partners. Since the release of the 

National Broadband Plan, certain areas of the United States continue to have patchwork access to high-speed Internet, despite how 

necessary it is in the modern economy. 

On March 23, 2015, President Obama signed the Presidential 

Memorandum, ‘‘Expanding Broadband Deployment and Adoption 

by Addressing Regulatory Barriers and Encouraging Investment 

and Training.’’ This memorandum created the Broadband Opportunity Council, which is tasked with producing ‘‘specific recommendations to increase broadband deployment, competition and 

adoption through executive actions within the scope of existing 

Agency programs, missions and budgets.’’ 

On August 20, 2015, the Broadband Opportunity Council produced a report with a series of recommendations for how federal 

agencies should meet those objections. One recommendation cited 

the need for additional training and recommended that the SBA 

‘‘develop and deploy new digital empowerment training for small 

businesses’’ by creating new modules that help businesses utility 

broadband-based applications more effectively. These modules are 

also meant to improve operations and ultimately strengthen market sales. 

III. HEARINGS & ROUNDTABLES

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

and Entrepreneurship held a hearing on September 26, 2007 entitled, ‘‘Improving Internet Access to Help Small Business Compete 

in the Global Economy.’’ This hearing focused on obstacles to the 

purchase of broadband internet services facing small businesses. 

The hearing drew attention to the detrimental effects a lack of 

broadband access can have on small businesses. Senators heard 

testimony from members of the Federal Communications Commission (FCC), non-profit scholars and software executives. The hearing also examined legislation that would promote competition in 

the rural broadband market. 

In the 111th Congress, the Senate Committee on Small Business 

and Entrepreneurship held a hearing on April 27, 2010 entitled, 

‘‘Connecting Main Street to the World: Federal Efforts to Expand 

Small Business Internet Access.’’ This hearing discussed the National Broadband Plan, the broadband funding contained within 

the American Recovery and Reinvestment Act (ARRA) and the 

need for broadband expansion into rural areas. The Senators heard 

from Federal Communications Commission (FCC) Chairman Julius 

Genachowski, Administrator Larry Strickling from the National 

Telecommunications and Information Administration (NTIA), representatives from the Small Business Administration and the Department of Agriculture and various organizations representing 

broadcasters and wireless providers. Over the course of this hearing, witness testimony suggested that the SBA appoint a coordinator to handle business broadband and information technology 

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issues. The hearing also focused on ways to increase minority access to broadband and examine the training on broadband services 

available to small business owners. 

On May 13, 2010, the Senate Committee on Small Business and 

Entrepreneurship held a roundtable entitled, ‘‘Connecting Main 

Street to the World: Small Business Perspectives on Internet Access.’’ The discussion included broadband policy experts, internet 

providers and a representative of the Association of Small Business 

Development Centers. The roundtable covered many of the same 

issues as the April 10th hearing, from the perspective of the small 

business consumer of broadband services. Dialogue focused on how 

entrepreneurs’ use of Internet access to run their businesses has 

increased over time, whether competitive options exist to make 

broadband rates affordable, what broadband speeds and bundles 

are needed, how business owners fund broadband access and the 

availability of educational resources on broadband are offered by 

providers. The roundtable also addressed challenges to broadband 

access for businesses owned by socially and economically disadvantaged groups. 

IV. DESCRIPTION OF BILL

The Small Business Broadband and Emerging Information Technology Enhancement Act addresses the need for access to 

broadband by U.S. small businesses, an issue that has been explored by the Senate Committee on Small Business and Entrepreneurship for many years. The Act also enables these businesses to 

utilize broadband resources more effectively. S. 2116 builds on data 

amassed in the 2010 National Broadband Plan and 2015 

Broadband Opportunity Council Report, two comprehensive studies 

on national broadband. References to these reports are included to 

provide explanation and perspective for the Act’s call for broadband 

expansion and the need for these resources to be provided through 

SBA’s training and counseling programs. The Small Business 

Broadband and Emerging Information Technology Enhancement 

Act also directs an existing SBA senior staff member to coordinate 

programs relating to broadband policies and directs the agency in 

providing training for the staff to assist small businesses adapting 

to technological changes. The Act directs the SBA’s Chief Counsel 

for Advocacy to evaluate current data and the impact of broadband 

speed and price on small businesses. The Small Business 

Broadband and Emerging Information Technology Act provides 

clear direction for the Small Business Administration to bring 

much needed broadband and information technology training within reach of America’s small business community. 

V. COMMITTEE VOTE

In compliance with rule XXVI(7)(b) of the Standing Rules of the 

Senate, the following vote was recorded on October 7, 2015. 

A motion to adopt the Small Business Broadband and Emerging 

Information Technology Enhancement Act, a bill to improve certain 

programs of the Small Business Administration to better assist 

small business customers in accessing broadband technology, and 

for other purposes, was approved unanimously by voice vote with 

the following Senators present: Vitter, Scott, Fischer, Gardner, 

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Ernst, Enzi, Shaheen, Cantwell, Cardin, Booker, Hirono and 

Peters. 

VI. COST ESTIMATE

In compliance with rule XXVI(11)(a)(1) of the Standing Rules of 

the Senate, the Committee estimates the cost of the legislation will 

be equal to the amounts discussed in the following letter from the 

Congressional Budget Office: 

OCTOBER 7, 2015. 

S. 2116 would direct the Small Business Administration (SBA) to 

broaden its assistance to small businesses by providing information 

and counseling on adopting and using broadband and other information technologies. Among other things, S. 2116 would direct the 

agency to expand the duties of a senior staff member to coordinate 

broadband programs and activities of SBA and other agencies that 

work on broadband policy, provide training to SBA staff on ways 

to assist small businesses to adopt and use those technologies, and 

broaden the role of small business development centers to provide 

small businesses with information about broadband technologies. 

Based on information from SBA, CBO estimates that implementing 

S. 2116 would cost less than $500,000 over the 2016–2020 period; 

any such spending would be subject to the availability of appropriated funds. Enacting S. 2116 would not affect direct spending or 

revenues; therefore, pay-as-you-go procedures do not apply. CBO 

estimates that enacting S. 2116 would not increase net direct 

spending or on-budget deficits in any of the next four consecutive 

10-year periods beginning in 2026. 

S. 2116 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Susan Willie. The estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

VII. EVALUATION OF REGULATORY IMPACT

In compliance with rule XXVI(11)(b) of the Standing Rules of the 

Senate, it is the opinion of the Committee that no significant additional regulatory impact will be incurred in carrying out the provisions of this legislation. There will be no additional impact on the 

personal privacy of companies or individuals who utilize the services provided. 

VIII. SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

This section provides the title of this Act (‘‘Small Business 

Broadband and Emerging Information Technology Enhancement 

Act of 2015’’). 

Section 2. Findings 

This section references reports attesting to the nationwide need 

for broadband expansion, including the 2010 National Broadband 

Plan, the 2015 Broadband Opportunity Council Report, and data on 

applied broadband usage. 

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Under the 2010 National Broadband Plan, the Small Business 

Association (SBA) should ensure that its programs maintain 

broadband expertise, tools and training courses needed to serve 

small businesses. Congress was advised to consider ways to leverage existing assistance provided through entrepreneurial development programs and focus training on advanced IT and broadband 

applications. Congress should also consider ways to support technology training among women entrepreneurs through women’s 

business centers. Training programs should include entry-level 

broadband 101 courses to provide small businesses with an introduction to how to capitalize on broadband connectivity as well as 

more advanced information technology applications. Small and medium enterprise information technology training should include resources for non-IT staff, such as how to use e-commerce tools for 

sales, streamline finance with online records and leverage knowledge management across an organization. 

The 2015 Broadband Opportunity Council Report focuses on the 

modernization of federal programs. Modernization allows for greater civic participation, provides tools for open government and 

streamlines the government process. This section encourages 

changes in how we access educational resources, collaborate in the 

educational process, conduct research and continue to learn anytime, anyplace and at any pace. It also facilitates new business 

models, improves business efficiencies, drives job creation and connects manufacturers and store-fronts to clients and partners worldwide. 

This section also highlights how broadband access has been applied to create new business models in the marketplace. Data has 

shown that more than three-quarters of the highest-grossing mobile software applications (‘‘apps’’) are produced by startups and 

small companies. Seventy-eight percent of the leading app companies are located in U.S. regions outside of Silicon Valley. The emergence of the app industry over the past eight years has grown to 

a $120 billion-dollar economy fueled by small businesses. 

Section 3. Broadband and Emerging Information Technology Coordinator 

Subsection 3(a)—This section defines ‘‘Associate Administrator’’ 

as Associate Administrator for the Office of Investment and Innovation and ‘‘Broadband and Emerging Information Technology Coordinator’’ as an SBA employee designated to carry out broadband 

and emerging information technology coordination responsibilities 

of the Small Business Administration. 

Subsection 3(b)—The Associate Administrator shall designate a 

senior employee from the Office of Investment and Innovation to 

serve as the Broadband and Emerging Information Technology Coordinator. The Coordinator reports to the Associate Administrator, 

and works in coordination with the Chief Information Officer, Chief 

Technology Officer, Head of Office of Technology and any other administrator determined appropriate by the Associate Administrator. The Coordinator’s qualifications require experience developing and implementing telecommunications policy. 

The position would be responsible for coordinating programs that 

assist small business concerns related to broadband and other 

emerging information technology. The position would also serve as 

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primary SBA liaison to other federal agencies related to these policy areas and would identify best practices relating to broadband 

and emerging IT that may benefit small business concerns. 

The Coordinator would also identify and catalog tools and training available through the resource partners that assist small businesses. 

The section also states that the Coordinator’s hours shall not 

consist of more than 20 percent travel outside of the United States 

to perform official duties. 

Subsection 3(c). Broadband and Emerging Information Technology Training and Authorization of Appropriations—The Associate Administrator shall provide training at SBA that familiarizes 

employees with broadband and other emerging information technology and includes instruction on counseling small business concerns and federal government programs related to these areas. 

Training also ensures that employees fully utilize tools and training cataloged and identified by SBA’s resource partners. 

No specific appropriation amount is made for this bill, and this 

section instead authorizes that which is necessary to carry out the 

section. 

Subsection 3(d). Reports—This section requires that, every other 

year, the Coordinator submit to the House Small Business Committee and Senate Small Business and Entrepreneurship Committee a report on SBA’s programs and activities relating to 

broadband and other emerging information technology. This requirement would commence not later than 2 years after the date 

on which the Associate Administrator makes the first designation 

of the position and for every two years thereafter. 

This section requires the Chief Counsel for Advocacy to conduct 

a study evaluating the impact of broadband speed and price on 

small business concerns. The SBA Office of Advocacy’s report will 

be released not later than 3 years after the date of the enactment 

of this Act. The Chief Counsel for Advocacy shall submit the results to the Senate’s Committee on Commerce, Science and Transportation and Committee on Small Business and Entrepreneurship 

and the House of Representatives’ Committee on Energy and Commerce and Committee on Small Business. The report shall include 

a survey of broadband speeds available to small businesses, associated costs, types of technology used and policy recommendations for 

improving small business access to broadband services. 

Section 4. Entrepreneurial development 

This section amends the problem-solving assistance provisions of 

the small business development center program to include improving competitiveness and productivity of small business concerns by 

assisting entrepreneurs in accessing broadband and emerging information technology. 

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