U.S. GOVERNMENT PUBLISHING OFFICE

36–210 WASHINGTON : 2019

MARK-UP OF LEGISLATION TO AMEND THE SMALL 

BUSINESS ACT AND THE SMALL BUSINESS 

INVESTMENT ACT 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED SIXTEENTH CONGRESS 

FIRST SESSION 

HEARING HELD 

MAY 1, 2019 

Small Business Committee Document Number 116–017 

Available via the GPO Website: www.govinfo.gov 

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Congress.#13
(II) 

HOUSE COMMITTEE ON SMALL BUSINESS 

NYDIA VELA ́ ZQUEZ, New York, Chairwoman 

ABBY FINKENAUER, Iowa 

JARED GOLDEN, Maine 

ANDY KIM, New Jersey 

JASON CROW, Colorado 

SHARICE DAVIDS, Kansas 

JUDY CHU, California 

MARC VEASEY, Texas 

DWIGHT EVANS, Pennsylvania 

BRAD SCHNEIDER, Illinois 

ADRIANO ESPAILLAT, New York 

ANTONIO DELGADO, New York 

CHRISSY HOULAHAN, Pennsylvania 

ANGIE CRAIG, Minnesota 

STEVE CHABOT, Ohio, Ranking Member 

AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member 

TRENT KELLY, Mississippi 

TROY BALDERSON, Ohio 

KEVIN HERN, Oklahoma 

JIM HAGEDORN, Minnesota 

PETE STAUBER, Minnesota 

TIM BURCHETT, Tennessee 

ROSS SPANO, Florida 

JOHN JOYCE, Pennsylvania 

ADAM MINEHARDT, Majority Staff Director 

MELISSA JUNG, Majority Deputy Staff Director and Chief Counsel 

KEVIN FITZPATRICK, Staff Director 

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C O N T E N T S 

OPENING STATEMENTS 

Page 

Hon. Nydia Vela ́zquez ............................................................................................. 1 

Hon. Steve Chabot ................................................................................................... 3 

APPENDIX 

Additional Material for the Record: 

H.R. 277, ‘‘Access to Sufficient Capital for Everyone in Natural Disaster 

Areas Act of 2019’’ ........................................................................................ 21 

H.R. 2142, ‘‘To Amend the Small Business Act to Require the Small 

Business and Agriculture Regulatory Enforcement Ombudsman to Create a Centralized Website for Compliance Guides, and for other purposes’’ ............................................................................................................. 23 

H.R. 1649, ‘‘Small Business Development Center Cyber Training Act 

of 2019’’ .......................................................................................................... 25 

H.R. 1648, ‘‘Small Business Advanced Cybersecurity Enhancements Act 

of 2019’’ .......................................................................................................... 28 

H.R. 2331, ‘‘SBA Cyber Awareness Act of 2019’’ ........................................... 40 

H.R. 2345, ‘‘Clarifying the Small Business Runway Extension Act of 

2019’’ .............................................................................................................. 45 

Amendment to H.R. 2345 ................................................................................. 49 

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MARKUP OF H.R. 277, ‘‘ACCESS TO SUFFICIENT CAPITAL FOR EVERYONE IN NATURAL DISASTER AREAS ACT OF 2019’’; H.R. 

2142, ‘‘TO AMEND THE SMALL BUSINESS 

ACT TO REQUIRE THE SMALL BUSINESS 

AND AGRICULTURE REGULATORY ENFORCEMENT OMBUDSMAN TO CREATE A 

CENTRALIZED WEBSITE FOR COMPLIANCE 

GUIDES, AND FOR OTHER PURPOSES’’; H.R. 

1649, ‘‘SMALL BUSINESS DEVELOPMENT 

CENTER CYBER TRAINING ACT OF 2019’’; 

H.R. 1648, ‘‘SMALL BUSINESS ADVANCED 

CYBERSECURITY ENHANCEMENTS ACT OF 

2019’’; H.R. 2331, ‘‘SBA CYBER AWARENESS 

ACT OF 2019’’; H.R. 2345, ‘‘CLARIFYING THE 

SMALL BUSINESS RUNWAY EXTENSION ACT 

OF 2019’’ 

WEDNESDAY, MAY 1, 2019 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, Washington, DC. 

The committee met, pursuant to call, at 11:33 a.m., in Room 

2360, Rayburn House Office Building. Hon. Nydia M. Vela ́zquez 

[chairwoman of the Committee] presiding. 

Present: Representatives Vela ́zquez, Finkenauer, Golden, Kim, 

Crow, Davids, Evans, Schneider, Espaillat, Delgado, Houlahan, 

Craig, Chabot, Radewagen, Kelly, Balderson, Hern, Hagedorn, 

Stauber, Burchett, Spano and Joyce. 

Chairwoman VELA ́ ZQUEZ. Good morning. The Committee will 

please come to order. A quorum being present, and I am pleased 

to call this morning’s meeting of the Committee on Small Business 

to order. 

In our first legislative markup of the 116th Congress we will be 

addressing reforms to assist America’s 30 million small businesses 

continue to be engines of economic growth. These small firms employ nearly 50 percent of all private sector employees in the U.S., 

making it imperative to the American economy that they succeed. 

That is why recent surveys showing small business optimism slipSBR002 with DISTILLER

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ping is incredibly concerning. The most recent one released on 

Monday found that economic outlooks have fallen by 7 percentage 

points since last fall. Such news merits our attention because small 

businesses are central to our mission. 

Being the only Committee dedicated solely to the needs of small 

firms, we remain committed on working to promote policies that 

will encourage economic prosperity on Main Street. 

I believe today’s markup does just that by addressing timely 

issues facing small businesses across the country—from strengthening our communities after natural disasters to guarding small 

businesses against cyber threats and ensuring that growing firms 

can continue to do business with the Federal Government. 

Access to capital is essential for small business success and this 

is particularly true after a natural disaster. No matter the scope 

or the cost of a disaster, the first few weeks are critical to a small 

firm’s recovery. 

The first bill today recognizes how critical it is to get money into 

a victim’s hands to ensure they have every opportunity to rebuild 

their lives. By permanently increasing the threshold for collateral 

and disaster loans exceeding $25,000, more victims can readily access funds without fear and SBA can disburse disaster loans quickly to maximize small business survival post-disaster. 

The second bill we will discuss today also touches on an important issue for all small employers—transparency of compliance assistance resources. Small businesses do not always have the resources to navigate multiple agencies’ websites to understand their 

responsibilities under new laws. Instead, they are worried about 

meeting payroll, hiring talented workers, and running the day-today operations of their small firms. This bill provides a centralized 

location to make it easier for business owners to find agency regulatory compliance guides and contract information. 

Another area where we can serve our Nation’s small firms is in 

cybersecurity. America’s entrepreneurs have always been vital to 

technological growth and advancement, but they have also been 

vulnerable to cyberattacks and data breaches. Three pieces of legislation we are marking up today address this very issue and will 

make valuable strides to establish a variety of tools to help businesses keep themselves safe from hackers and guarantee their data 

is secure when they interact with the SBA and their resource partners. 

A final issue of concern is the implementation of the Small Business Runway Extension Act, which passed into law in December. 

The purpose of that law was to make it easier for small Federal 

contractors to transition to an open marketplace. Unfortunately, 

the law’s implementation has been delayed, leaving much uncertainty for small firms. 

A bill before us today clearly and unequivocally states Congress’s 

intention regarding the Runway Extension Act. It also provides a 

temporary transition period to ease current ambiguity during implementation of the law. Each of these pieces of legislation are critical to making it easier for employers to do what they do best—operate their businesses, create jobs, and invest in local communities. 

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As a result of numerous meetings with our constituents and several hearings on these issues, the Committee today is considering 

six pieces of legislation. 

H.R. 277, the ‘‘Access to Sufficient Capital for Everyone in Natural Disasters Area Act of 2019,’’ introduced by myself and cosponsored by Ranking Member Chabot. 

H.R. 2142, a bill to ease regulatory compliance for small businesses, introduced by Mr. Delgado and cosponsored by Dr. Joyce. 

H.R. 1649, the ‘‘Small Business Development Center Cyber 

Training Act of 2019,’’ introduced by Ranking Member Chabot and 

cosponsored by Mr. Evans. 

H.R. 1648, the ‘‘Small Business Advanced Cybersecurity Enhancement Act of 2019,’’ introduced by Ranking Member Chabot 

and Cosponsored by myself. 

H.R. 2331, the ‘‘SBA Cyber Awareness Act of 2019,’’ introduced 

by Mr. Crow and cosponsored by Mr. Balderson. 

And H.R. 2345, the ‘‘Clarifying the Small Business Runway Extension Act 2019,’’ introduced by Mr. Stauber and cosponsored by 

Mr. Golden. 

As we have done many times in the past, the bills before us 

today are brought before us in a bipartisan fashion. Both the Ranking Member and I support each of the six bills to be marked up 

today. 

However, before we get into the substance of the bills, I want to 

thank the Ranking Member and his staff for working in a bipartisan way on this package. I would also like to thank all of our 

Members, both Republican and Democrat, for their hard working 

and continued bipartisan commitment to putting small businesses 

first. 

In the interest of time, I would now like to recognize our Ranking Member, Mr. Chabot, for his opening statement. 

Mr. CHABOT. Thank you very much, Madam Chairwoman. And 

good morning. And we thank the Chairwoman for holding this bipartisan markup. It is truly refreshing with everything else that is 

going on in Congress and the administration to come to this Committee and actually work together in producing legislation that will 

have a positive effect on America’s small businesses and the economy overall. And I just happened to have come from the Judiciary 

Committee, and we were discussing, of course, the Attorney General coming there to testify tomorrow on a less bipartisan topic, 

and I would just say it is a less collegial environment in there this 

morning. So it really is a breath of fresh air to come to this Committee. 

The American economy continues to be on a roll. Just last Friday, the Commerce Department announced that the GDP growth 

for the previous quarter was 3.2 percent, which exceeded expectations. The stock market has hit record high after record high, helping more Americans build wealth and secure their futures. Last 

Congress we passed the most comprehensive tax overhaul in a generation and unburdened the American economy with the repeal of 

unnecessary and onerous regulations. Those actions, among others, 

have created an economy that has seen unemployment levels at or 

near record lows, small business optimism among the highest that 

we have ever seen, and wages growing faster than they have in a 

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decade. And I would note that unemployment among African Americans, Hispanic Americans, Asian Americans is literally at record 

all-time lows. 

But we are not here to be complacent and simply watch from the 

sidelines. We are here today to consider legislation we believe in 

a bipartisan manner that will help propel our economy to everhigher heights. Our Committee has continued its work on important subjects like increasing access to capital for small firms, expanding government contracting opportunities for small businesses, 

and ensuring that small entities can be safe and secure in cyberspace in the new gig economy. 

That is what these bills today address, and I will talk a little 

more about each as they come up. But as has been our Committee’s 

custom over the last several years, each of these bills are bipartisan and they all have my support. And I want to thank the 

Chairwoman for proposing them along with Members of this Committee on both sides. 

Again, I thank the Chairwoman for holding this markup and 

yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you very much. The gentleman yields back. 

Before we get into the individual bills, are there any Members 

present who seek recognition for the purpose of making an opening 

statement? 

Seeing none, we will move on to our first bill, H.R. 277, the ‘‘Access to Sufficient Capital for Everyone in Natural Disaster Areas 

Act of 2019,’’ also called the ASCEND Act, introduced by myself 

and the Ranking Member, Mr. Chabot of Ohio. 

H.R. 277 

The SBA’s Disaster Assistance Program was implemented for the 

purpose of providing timely financial assistance in the form of lowinterest loans and working capital for businesses and homeowners 

devastated by a disaster. Continual improvement and modernization of the program has been a priority of this Committee for many 

years. And as we continue to experience increased disasters, both 

in frequency and strength, it is imperative Congress provides the 

necessary policies to get communities back on their feet. One of 

those policies originated in my bill, H.R. 208, the ‘‘Recovery Improvements for Small Entities after Disaster Act of 2015,’’ the RISE 

Act. That law raised the collateralization threshold on disaster 

loans to make it easier for victims to obtain capital to rebuild their 

home and businesses. Unfortunately, that provision was set to expire last year until a 1-year extension was enacted. My bill, H.R. 

277, will permanently raise the minimum disaster loan amount 

that the SBA may require collateral from $14,000 to $25,000. Raising the unsecured loan amount will provide support for Americans 

when they need it most. This means that a disaster victim can continue to receive a $25,000 loan—rather than just $14,000—within 

5 days of closing to speed up the reconstruction project. And for 

small businesses, time and again, we have seen that in the aftermath of a disaster, access to affordable and accessible credit can 

make the difference between remaining in business or closing their 

doors and putting Americans out of work. It is a common sense 

move and one supported by the Small Business Administration. 

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In a report assessing the SBA Disaster Loan Program, the SBA 

recommended that an increase in the unsecured loan limit for disaster loans should be made permanent. The agency, again, stated 

as much in a congressional testimony at a hearing held last September in this Committee, and in its fiscal year 2020 budget legislative proposals. Without this legislation, the unsecured loan limit 

for agency declarations will revert to the lower limits and create an 

unfair discrepancy for disaster survivors in areas of an SBA declaration and that of a major disaster declaration. Permanency 

guarantees that disaster funds will apply equally to disaster victims no matter the declaration type. 

I thank Ranking Member Chabot for cosponsoring this legislation 

which allows more borrowers to access loans without having to put 

up collateral. 

I would now like to recognize the Ranking Member for his statement. 

Mr. CHABOT. Thank you, Madam Chair, for working in a bipartisan fashion in introducing H.R. 277. 

When natural disasters strike the country, the SBA offers individuals and businesses low interest and fixed rate loans to recover 

and rebuild. The SBA is tasked to work in an organized and efficient manner to disburse loans to qualified disaster victims. In 

order to accomplish this, the SBA immediately extends an initial 

loan amount to disaster victims. For all declared disasters, including major declarations and SBA agency declarations, all disaster 

loans carry an immediate unsecured loan. The limit is $25,000. Unfortunately, the unsecured disaster loan limit for physical damage 

loans under an SBA agency declaration will decrease to $14,000 before the end of the year unless we act, and that is what we are 

doing. 

The SBA has studied these levels and has requested that Congress make the $25,000 limit permanent. To ensure continuity for 

disaster victims when they need it most, H.R. 277 codifies and 

makes permanent that amount, the $25,000 unsecured loan limit. 

I fully support this common sense legislation and urge my colleagues to vote for it. And I yield back. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

Are there any other Members who wish to be recognized for a 

statement on H.R. 277? 

Okay, seeing none, I recognize myself briefly. 

There is little doubt that natural disasters not only harm the victims, but reflect our Nation’s ability to provide assistance. This legislation is a much-needed response to the record-breaking disasters, and an effective preparation tool for the upcoming hurricane 

season. Again, I thank the Ranking Member for his support and I 

urge my colleagues to support the bill. 

If there is no further discussion, the Committee will move to consideration of H.R. 277. 

The clerk will report the title of the bill. 

The CLERK. H.R. 277, the Access to Sufficient—— 

Chairwoman VELA ́ ZQUEZ. Without objection, H.R. 277 is considered as read and open for amendment at any point. 

Does anyone wish to offer an amendment? 

Seeing none, the question is now on H.R. 277. 

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All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it. 

H.R. 277 is agreed to. 

The question now occurs on reporting H.R. 277 to the House. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it. 

And H.R. 277 is reported to the House. 

Without objection, the Committee staff is authorized to correct 

punctuation and make other necessary technical corrections and 

conforming changes. 

Without objection, Members shall also be entitled to 2 days to file 

additional supplemental, dissenting, and minority views. 

H.R. 2142 

The next bill is H.R. 2142, a bill to ease regulatory compliance 

for small businesses. It was introduced by Mr. Delgado of New 

York and cosponsored by Dr. Joyce of Pennsylvania. This bipartisan legislation will help provide transparency and clarity for 

small businesses. 

I would like to recognize the gentleman from New York, Mr. 

Delgado, the sponsor of the bill for an opening statement on H.R. 

2142. 

Mr. DELGADO. Thank you, Madam Chairwoman. I truly appreciate your leadership. 

I am very proud to see the Small Business Committee take up 

this bipartisan, common sense legislation that my friend and colleague, Dr. Joyce and I introduced to reduce the regulatory burden 

for small businesses. 

Under the Small Business Regulatory Enforcement Fairness Act, 

Federal agencies are required to publish small business compliance 

guides for certain regulations. However, these guides are housed on 

different agency websites, making it difficult for small businesses 

to find and utilize them and hard for Congress to oversee. Our bill 

would make these guides more accessible by creating a centralized 

one stop shop online for small business owners who often lack the 

resources to hire staff to focus on compliance issues. The bill would 

also list contact information for the appropriate agency staff who 

could provide regulatory assistance to small businesses. 

My main goal on this Committee is to ensure that small businesses across my district have the tools and resources they need to 

grow. I am excited to see this bill go through the Committee process and hope to see it passed. 

Thanks again, Dr. Joyce, for your leadership. 

Madam Chairwoman, I yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back, and I thank him for his leadership on this issue. 

Are there any other Members who wish to be recognized for a 

statement on H.R. 2142? 

The gentleman from Pennsylvania, Dr. Joyce is recognized for 5 

minutes. 

Mr. JOYCE. Thank you, Madam Chairwoman. 

I seek recognition to ask my colleagues’ support for H.R. 2142. 

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Before I speak on the bill, I want to thank the gentleman from 

New York, Mr. Delgado, for working with me on this important 

issue in a bipartisan way. I look forward to continue to working 

with you in this manner in future endeavors. 

When you are a small business owner, few things are as valuable 

as your time, and too much of it is often spent navigating the complex world of Federal compliance. As a small business owner myself, I can personally attest to the daunting feeling associated with 

new regulations. Navigating this bureaucracy at the Federal Government can be incredibly intimidating, and many small businesses 

fall out of compliance largely because they did not know where to 

turn for assistance. 

H.R. 2142, as Mr. Delgado pointed out, is a common sense, good 

government and transparency bill. It would require the small business and agricultural regulatory enforcement ombudsman to create 

a public website to provide the compliance guidelines required by 

section 212 of the Small Business Regulatory Enforcement Fairness 

ACT (SBREFA). 

Any time an agency is required to produce a final regulatory 

flexibility analysis on a role, the agency is also required by section 

212 of SBREFA to publish one or more guidelines to assist small 

entities in complying with this role. 

Madam Chair, these reports are often compiled by the ombudsman and are available to small firms who request them. However, 

making them publicly available on a centralized website is this 

common sense way to ease the regulatory burden on small firms 

as it makes it much easier for them to know where to go when they 

need this information. 

Finally, our bill makes another common sense change by requiring the ombudsman to publish on the website the contact information for a person who can offer assistance to small entities with respect to the roles and the guides refer to them. 

Since joining the Small Business Committee, I have been surprised to learn how many resources are available but underutilized 

because businesses are simply unaware that they exist or unsure 

how to access them. This legislation takes an important step towards breaking down the barriers between the administration and 

the small businesses by simply making available information and 

making it much more accessible. 

I again thank my colleague, Mr. Delgado, for bringing this issue 

to my attention, and the Chairwoman for allowing the Small Business Committee to shine a much needed light to the complex world 

of Federal compliance for small business. I am incredibly proud to 

be a member of this Committee and of its commitment to advancing bipartisan fashion solutions which can make a real difference 

on day-to-day operations of small businesses across the United 

States. 

I simply ask each of my colleagues to support this measure and 

yield back the balance of my time. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back. 

Are there any other members who wish to be recognized? 

Mr. Burchett? 

Mr. BURCHETT. Yes, ma’am. 

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Chairwoman VELA ́ ZQUEZ. You are recognized for 5 minutes. 

Mr. BURCHETT. Thank you, Chairlady. I do not think this will 

take 5 minutes. 

I am not sure of the parliamentary situation we are in. I just had 

a question about some wording and I have seen it in several other 

pieces of legislation and maybe one of the attorneys could further 

confuse me on the facts. 

But at the end, I noticed this in the last and the other bills, it 

says ‘‘The Small Business Regulatory Enforcement Fairness Act of 

1996 for the year covered by such annual report.’’ 

Does this mean that this is retroactive or does it go, does it mean 

the year that was stated in the report, which would be the current 

year going forward? Does that make sense? And I apologize for not 

getting with you all sooner. 

Chairwoman VELA ́ ZQUEZ. The counsel? Yes. 

COUNSEL. I understand that it would be moving forward, going 

forward. 

Mr. BURCHETT. I cannot hear her. 

Chairwoman VELA ́ ZQUEZ. It is not retroactive. It is going forward. 

Mr. BURCHETT. Thank you so much. And I apologize. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

I now recognize myself briefly. 

The legislation requires the SBA’s Office of the National Ombudsman to create a centralized website with hyperlinks to small 

entity compliance guides and contacts at Federal agencies who 

could provide small businesses with compliance assistance. We 

know that small business owners do not necessarily have the resources and time to navigate multiple websites to fully understand 

their responsibilities with Federal laws. This bill will make it easier, not harder, to comply with Federal regulations by providing 

them a one stop shop for compliance assistance. 

I commend Representative Delgado and Dr. Joyce for working together in a bipartisan manner to help cut the red tape for small 

businesses, and I urge my colleagues to support the measure. 

The gentleman, Mr. Chabot, the Ranking Member, will be recognized for 5 minutes. 

Mr. CHABOT. Thank you, Madam Chair. I will not take 5 minutes. I will be very brief. 

I just want to also commend Mr. Delgado and Mr. Joyce, Dr. 

Joyce, for working together to put forward some legislation which 

I really do believe will make it easier for small businesses to comply with Federal regulations. So I just want to commend both sides 

for working together in their first term. Well done. Thank you. 

I yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you. And the gentleman 

yields back. 

If there is no further discussion, the Committee now moves to 

consideration of H.R. 2142. 

The clerk will report the title of the bill. 

The CLERK. H.R. 2142, to amend the Small Business Act—— 

Chairwoman VELA ́ ZQUEZ. Without objection, H.R. 2142 is considered as read and open for amendment at any point. 

Does anyone wish to offer an amendment? 

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Seeing none, the question is now on H.R. 2142. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it and H.R. 2142 is 

agreed to. 

The question now occurs on reporting H.R. 2142 to the House. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it. 

And H.R. 2142 is reported to the House. 

Without objection, the Committee staff is authorized to correct 

punctuation and make other necessary technical corrections and 

conforming changes. 

Without objection, members shall also be entitled to 2 days to file 

additional supplemental, dissenting, and minority views. 

H.R. 1649 

The next bill is H.R. 1649, the ‘‘Small Business Development 

Center Cyber Training Act of 2019,’’ which was introduced by the 

Ranking Member, Mr. Chabot of Ohio, and cosponsored by Mr. 

Evans of Pennsylvania. This piece of legislation helps small business development centers (SBDCs) become better equipped to assist 

small businesses with their cybersecurity needs. 

I now recognize the Ranking Member for his statement on H.R. 

1649. 

Mr. CHABOT. Thank you, Madam Chair. 

Information technology is a necessity for small businesses because it equips them with the tools they need to be competitive in 

the global economy. Unfortunately, small businesses are becoming 

increasingly popular targets for cyber criminals. The average cost 

of an attack on a small business is over $30,000, which can destroy 

a small business, and we had hearings in the last Congress and we 

had evidence of that from small business folks that this has actually happened to. And the figure that we had seen was like 60 percent of small businesses that had undergone one of these attacks 

actually end up going out of business. So it can be devastating. And 

then those people who work for that small business lose their jobs. 

That is an example of why Chairwoman Vela ́zquez, Mr. Evans, 

and I introduced H.R. 1649, the ‘‘Small Business Development Center Cyber Training Act of 2019.’’ I would also like to thank Mr. 

Balderson for his early co-sponsorship of this legislation as well. 

This bipartisan legislation establishes a cyber counseling certification program in lead SBDCs to better assist small businesses 

with planning and implementing cybersecurity measures to defend 

against cyberattacks. The cyber assistance offered by trained staff 

at SBDCs would be provided at no or low cost to small businesses. 

Cyber planning assistance will encourage small businesses to take 

a more proactive approach to defending themselves from 

cyberattacks by leveraging the expertise from SBDCs and their 

partner agencies and institutions. This bill utilizes existing Federal 

resources to cover the reimbursement costs so we are not adding 

additional costs to a budget that is already stressed with over $20 

trillion that we all owe. 

We recognize cyber threats are ever-evolving and we will continue to work with industry to ensure that appropriate staffing 

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needs are met. I urge my colleagues to support the measure. I 

again want to thank Mr. Evans especially for his leadership on this 

over the years. Mr. Balderson as well. And the Ranking Member 

as well. And I yield back. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. Thank 

you. 

Are there any other members who wish to be recognized for a 

statement on H.R. 1649? 

The gentleman from Pennsylvania is now recognized for 5 minutes, Mr. Evans. 

Mr. EVANS. Chairwoman Vela ́zquez, and Ranking Member 

Chabot, and colleagues on the Small Business Committee, I speak 

now to offer my support for H.R. 1649, the Small Business Development Center Cyber Training Act. I am proud to co-lead this bipartisan piece of legislation with my colleague, Chairwoman 

Vela ́zquez, and the Ranking Member Chabot. 

Today, we have the opportunity to present real pieces of legislation that have the potential to help small businesses. As you know, 

I consider small businesses to be the foundation of our communities. They are the engines that drive innovation, investment, and 

economic development. They are the pillars that prop up our communities. 

In my home state, the Commonwealth of Pennsylvania, we have 

nearly 1 million small businesses employing 2.5 million workers accounting for 46.7 of the workforce for the entire state. Small firms 

account for 99.6 percent of my state employers. 

Across the U.S., there are nearly 30 million small businesses 

supporting almost 59 million jobs. Small firms account for approximately 99.9 percent of U.S. businesses. Needless to say, small businesses are the drivers in our community, often filling space in 

neighborhoods that large companies fail to reach. At the same time, 

our society has been and still is going through a technological revolution. Yet, as technology makes things easier, it is also open to 

vulnerabilities. The same tools that are making our lives better, 

like on-demand services, digital wallets, and social networks, are 

also making our information easier to access for both good and bad 

actors. 

In the past decade, we have seen time and time again those bad 

actors engage in cyberattacks, stealing information from businesses 

and government agencies. In 2014, it was discovered that the U.S. 

Government’s own Office of Personnel Management was hacked, 

resulting in the theft of over 20 million records. In 2013, criminals 

broke into the Target database stealing the financial information 

of millions of customers. As one of the largest U.S. retail chains, 

Target eventually reported that some 40 million credit and debit 

numbers were stolen. 

Breaches have also been reported at Home Depot, JPMorgan 

Chase, and SONY. These breaches can have a devastating impact 

on businesses. Sales may decline and shoppers turn elsewhere. According to the Congressional Research Service, Target reported 

that its U.S. sales for that quarter decreased 2.5 percent and it was 

immediately following the announcement of the data breach. Now, 

as major entities like Target, Home Depot, and the U.S. Government struggle with the challenges of cybersecurity, what chances 

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do our small businesses have? The Small Business Development 

Center Cyber Training was written to migrate small businesses’ 

cybersecurity risk by providing training and resources for small 

businesses to better equip themselves against cyberattacks. This 

bill instructs the Small Business Administration to provide cyber 

counseling for local small businesses by first certifying SBA employees at Small Business Development Centers who will then provide assistance to small businesses for planning cybersecurity practices and strategies to respond to cyberattacks. 

I appreciate having the opportunity to co-lead this important 

piece of legislation. It is critical that we help our small businesses, 

the backbone of our Nation’s economy, and ensure that they are 

given the training they need to secure their data. 

Thank you, Madam Chair. And I yield back the balance of my 

time. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

I now recognize myself briefly. 

America’s entrepreneurs have always been vital to technological 

growth and advancement, but they have also been vulnerable to 

cyberattacks and data breaches. Because of the complexity and 

costs associated with identifying, monitoring, and sharing information with appropriate agencies, only 31 percent of small firms have 

cybersecurity plans in place. Perhaps this is related to a mere 14 

percent of small businesses having a plan in place for keeping their 

companies cyber secure. Cybersecurity is top priority for the small 

business community and this Committee has taken that duty seriously by presenting three bills focusing on improving cybersecurity 

training, protection, and awareness for small businesses. 

The first of those bills today, H.R. 1649, directs the SBA to implement a cybersecurity certification program to ensure counselors 

in the SBA’s network of small business development centers are 

equipped to educate firms and help develop cyber strategies. Cybercrime is one of the greatest risks to every business in the world. 

This legislation ensures that our Nation’s most vulnerable businesses are prepared to combat this eminent threat. 

I would like to thank Ranking Member Chabot and Vice Chairman Evans for working together on this important legislation, and 

I urge my colleagues to support the bill. 

If there is no further discussion, the Committee will move on to 

consideration of H.R. 1649. 

The clerk will report the title of the bill. 

The CLERK. H.R. 1649, the Small Business Development Center—— 

Chairwoman VELA ́ ZQUEZ. Without objection, H.R. 1649 is considered as read and open for amendment at any point. 

Does anyone wish to offer an amendment? 

Seeing none, the question is now on H.R. 1649. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it and H.R. 1649 is 

agreed to. 

The question now occurs on reporting H.R. 1649 to the House. 

All those in favor say aye. 

All those opposed say no. 

SBR002 with DISTILLER

12 

In the opinion of the Chair, the ayes have it. 

And H.R. 1649 is reported to the House. 

Without objection, the Committee staff is authorized to correct 

punctuation and make other necessary technical corrections and 

conforming changes. 

Without objection, members shall also be entitled to 2 days to file 

additional supplemental, dissenting, and minority views. 

H.R. 1648 

The next bill is H.R. 1648, the ‘‘Small Business Advanced 

Cybersecurity Enhancements Act of 2019,’’ which was introduced 

by the Ranking Member, Mr. Chabot of Ohio, and cosponsored by 

myself. This bill aims to increase the defensive measures available 

for small businesses affected by or concerned by cyberattacks. 

I will now recognize the Ranking Member for his statement on 

H.R. 1648. 

Mr. CHABOT. I thank the gentlelady. 

H.R. 1648, the ‘‘Small Business Advanced Cybersecurity Enhancements Act of 2019’’ builds on the reforms of the bill just reported, H.R. 1648. This bipartisan legislation introduced by myself 

and Chairwoman Vela ́zquez and cosponsored by Mr. Balderson, 

aims to increase the defensive measures available for small businesses undergoing or concerned about a cyberattack. It would 

incentivize additional information sharing between the private sector and the Federal Government. We have heard from small business owners, cybersecurity experts, and government officials, and 

there is no question that improving cybersecurity for America’s 

small businesses should be an urgent priority for most small firms. 

Over the past few years, the Federal Government has stepped up 

its efforts to both prevent and mitigate cyberattacks by coordinating and distributing cybersecurity resources directly to small 

businesses. This is a good thing, but we must increase information 

sharing between the Federal Government and small businesses to 

ensure that they have every resource possible to combat cyber 

threats. That means we must give small businesses the confidence 

they need to engage with the Federal agencies tasked with protecting them. 

Our bipartisan legislation seeks to safeguard small businesses 

from cyberattacks in a few simple ways. First, the bill establishes 

SBDCs as the primary liaison for small businesses that share 

cybersecurity information with the Federal Government. This bill 

also ensures that small businesses that engage with SBDCs receive 

the same protections and exemptions provided by the Cybersecurity 

Information Sharing ACT (CISA). Further, this bill would ensure 

that any policies or rulemaking adopted by any Federal agency as 

a result of Federal information sharing does not unfairly burden 

small businesses. It would also expand liability protections for 

small businesses that engage with the Federal Government in good 

faith. Ultimately, this legislation removes the barriers many small 

business owners face when confronted with a cyber threat, encouraging them to work with the Federal Government and not fear it. 

I urge my colleagues to support the bill and yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back. And I thank him for his continued leadership on this very important issue. 

SBR002 with DISTILLER

13 

Are there any other members who wish to be recognized for a 

statement on H.R. 1648? 

Seeing none, I will recognize myself for a brief comment. 

H.R. 1648 recognizes that the Federal Government and U.S. 

businesses must work together to effectively fight cybercrime. 

Proactive collaboration and information sharing are essential to 

combatting the rapidly evolving cyber threats that plague our country. However, many small businesses lack the information needed 

to develop adequate cybersecurity strategies and are reluctant to 

report cyber threat indicators to the Federal Government. The 

Small Business Advanced Cybersecurity Enhancement Act of 2019 

will encourage good faith collaboration between small businesses 

and the Federal Government by providing additional resources and 

protections for small businesses. Specifically, the bill establishes 

small business cybersecurity assistance units to connect small businesses to the Federal Government’s cybersecurity resources and receive cyber threat indicators from small businesses. This bill protects small businesses by ensuring that the SBA Office of Advocacy 

has a seat at the table when policies are being implemented because of the information sharing. 

H.R. 1648 also provides liability protections for small businesses 

that engage in information sharing. Tackling sophisticated cyber 

threats requires a joint effort and legislation will implement a coordinated and proactive approach to protecting our country from 

cybercrime. 

I am a proud cosponsor of the Ranking Member’s bill, and I urge 

my colleagues on both sides of the aisle to support it. 

If there is no further discussion, the Committee will move on to 

consideration of H.R. 1648. 

The clerk will report the title of the bill. 

The CLERK. H.R. 1648, the ‘‘Small Business Advanced 

Cybersecurity Enhancements Act.’’ 

Chairwoman VELA ́ ZQUEZ. Without objection, H.R. 1648 is considered as read and open for amendment at any point. 

Does anyone wish to offer an amendment? 

Seeing none, the question is now on H.R. 1648. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it and H.R. 1648 is 

agreed to. 

The question now occurs on reporting H.R. 1648 to the House. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it. 

H.R. 1648 is reported to the House. 

Without objection, the Committee staff is authorized to correct 

punctuation and make other necessary technical corrections and 

conforming changes. 

Without objection, members shall also be entitled to 2 days to file 

additional supplemental, dissenting, and minority views. 

H.R. 2331 

The next and third cyber bill is H.R. 2331, the ‘‘SBA Cyber 

Awareness Act of 2019,’’ which was introduced by Mr. Crow from 

Colorado and cosponsored by Mr. Balderson from Ohio. 

SBR002 with DISTILLER

14 

This legislation takes important steps to strengthen the Small 

Business Administration’s cybersecurity infrastructure to handle 

and report cyber threats that affect small businesses. 

I would now like to recognize the gentleman from Colorado, the 

sponsor of the bill, for an opening statement on H.R. 2331. 

Mr. CROW. Madam Chairwoman, thank you for the opportunity 

to speak in support of our bill, the SBA Cyber Awareness Act. 

I believe there is something uniquely American about starting a 

small business. As anyone will tell you, starting a small business 

is never easy. It requires hard work, grit, and hustle, the same entrepreneurial spirit that drove the pioneers west to Colorado and 

that today makes the American economy the strongest in the 

world. 

Too often, small business owners are overworked, wearing multiple hats and balancing a variety of responsibilities, from payroll 

to maintenance, customer service to marketing, and as any small 

business owner or employee will attest, no task is too small. Running a small business is truly an all hands on deck effort. 

Like any new and challenging endeavor, our Nation’s small businesses are at their most vulnerable when they are presented with 

something unexpected. Whether it is unanticipated downward market trends, natural disasters, or cyberattacks. To the latter point, 

according to one recent study, 47 percent of small businesses have 

suffered a cyberattack in the past 12 months. 

There is more that we can do to protect our Nation’s entrepreneurs from cybercrime. And it is not just small businesses. In 

2015, the U.S. Office of Personnel Management was hacked, compromising the data security of nearly 22 million Americans. We 

need to ensure that every arm of the Federal Government is safeguarded, including the SBA. 

Our bill, which I had the pleasure of introducing 2 weeks ago 

along with my friend from Ohio, Mr. Balderson, requires the SBA 

to undertake a series of efforts to ensure that it and our Nation’s 

small businesses are protected from cyberattacks. Specifically, it requires the SBA to audit its IT and cybersecurity infrastructure, the 

administration’s strategy to improve cybersecurity protections, any 

equipment used by the SBA and manufactured by a company 

headquartered in China, and any incident of cyber risk at the SBA 

and agencies’ actions to confront it. 

Finally, recognizing that a cyberattack to the agency could put 

this sensitive information and intellectual property of small businesses at risk, the bill would require SBA to notify Congress of future breaches within information on those affected and how the 

breach occurred. 

I know all members of this Committee understand the incredible 

impacts small businesses have on our communities, and I imagine 

all of us here have experienced some form of cyberattack, whether 

it be in the form of a phishing email or identity theft. 

I urge my colleagues to support our bill and I thank the Chairwoman for the opportunity to speak on its behalf. 

I yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back. 

SBR002 with DISTILLER

15 

And now I recognize the cosponsor of the bill, Mr. Balderson, 

from Ohio, for 5 minutes. 

Mr. BALDERSON. Thank you for the time, Madam Chair. And 

thank you for being an original cosponsor of this important piece 

of legislation. I would also like to thank Ranking Member Chabot 

for his support of this bill. 

I want to quickly say that I am a cosponsor on the Ranking 

Member’s two cybersecurity bills, H.R. 1648 and 1649. I am confident that these two bills will help small business owners prepare 

for and overcome modern and digital obstacles. 

Along that same line, I am a proud original cosponsor of Subcommittee Chairman Crow’s SBA Cyber Awareness Act of 2019. 

Because this bill addresses potential weakness within the Small 

Business Administration’s cybersecurity infrastructure, by passing 

this bill we will proactively guard against harmful and widespread 

cyberattacks by bringing the Small Business Administration’s 

cybersecurity defenses into the 21st Century. This bill will protect 

the sensitive business and personal information of millions of small 

business owners across the country. 

In a rapid developing digital age, strong cybersecurity protections 

and reinforcements are of the utmost importance. This is especially 

true for fragile small businesses that rely on having a secure online 

presence for ecommerce transactions, data collection and storage, 

and hosting intellectual property, yet do not have the same infrastructure as larger corporations equipped to deal with cyberattacks. 

A threat to cybersecurity is a threat to small businesses’ validity. 

That is why this bill is so important. 

This is bipartisan, common sense legislation, and I want to especially thank my friend, Chairman Crow, also for his leadership on 

this effort. It is nice to see Congress proactively attempting to solve 

problems before they occur, rather than waiting until something 

goes wrong and reacting. 

Again, I stress that our digital world changes constantly and 

happens quickly. We, as Congress, must lift up the small businesses of America and ensure they have the support they need to 

address this ever-changing online environment. 

Once again, I thank the Chair and Ranking Member for their 

support. I thank my colleague from Colorado for his proactive leadership, and I urge the Committee’s support of H.R. 2331. 

With that, I yield back my remaining time, Madam Chair. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back. And now I recognize the Ranking Member, Mr. Chabot, for 

his statement. 

Mr. CHABOT. Thank you, Madam Chair. 

In the interest of time, rather than read my entire statement, I 

will just commend Mr. Crow and Mr. Balderson for working together in a bipartisan manner on this. It is great to see Ohio and 

Colorado working together. So thank you very much, and I yield 

back. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

Me, too, I want to thank both Representative Crow and Representative Balderson for working together to ensure that millions 

of small businesses can protect their data, and I urge my colleagues to support the legislation. 

SBR002 with DISTILLER

16 

If there is no further discussion, the Committee will move on to 

consideration of H.R. 2331. 

The clerk will report the title of the bill. 

The CLERK. H.R. 2331, the SBA Cyber Awareness—— 

Chairwoman VELA ́ ZQUEZ. Without objection, H.R. 2331 is considered as read and open for amendment at any point. 

Does anyone wish to offer an amendment? 

Seeing none, the question is now on H.R. 2331. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it and H.R. 2331 is 

agreed to. 

The question now occurs on reporting H.R. 2331 to the House. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it. 

And H.R. 2331 is reported to the House. 

Without objection, the Committee staff is authorized to correct 

punctuation, make other necessary technical corrections and conforming changes. 

Without objection, Members shall also be entitled to 2 days to file 

additional supplemental, dissenting, and minority views. 

H.R. 2345 

Our final bill today is H.R. 2345, the ‘‘Clarifying the Small Business Runway Act of 2019,’’ which was introduced by Mr. Stauber 

from Minnesota and cosponsored by Mr. Golden from Maine. 

This bipartisan bill clarifies the intent of Congress in the implementation of the Small Business Runway Extension Act which we 

successfully passed into law last year. 

I will now like to recognize the gentleman from Minnesota, the 

sponsor of the bill, for an opening statement on H.R. 2345. 

Mr. STAUBER. Thank you, Madam Chair, and Ranking Member 

Chabot. 

H.R. 2345 clarifies the Small Business Runway Extension Act. It 

is a bill that attempts to do exactly what it says, to make clear the 

intent of the Small Business Runway Extension Act of 2018. The 

Runway Act of 2018 was simple, straightforward, and unambiguous. It simply extended the Small Business Administration’s receipt-based size calculation from a 3-year average to a 5-year average. Recognizing the significance of this bill for small business, the 

Runway Bill easily passed through both House and Senate becoming law on December 17, 2018. Within 4 days of the law’s passage, 

the SBA installed its implementation issuing an information notice 

that effectively contradicted the Runway Act of 2018 by maintaining the 3-year calculation until the agency could go through the 

rulemaking process. 

In a Subcommittee on Contracting and Infrastructure hearing 

held on March 26, Chairman Jared Golden and I learned that this 

conflict in law enacted versus regulation adopted imposed significant real-world challenges for small businesses who may be teetering on the edge between ‘‘small’’ and ‘‘other than small business’’ 

status. The need for clarity was a constant and reoccurring theme 

and this bill attempts to do exactly that. 

SBR002 with DISTILLER

17 

First, H.R. 2345 makes clear that the Runway Act of 2018 does, 

in fact, apply to the Small Business Administration, and therefore, 

should have become effective on the day it was signed into law. 

Thus, businesses relying on the 5-year average to remain in their 

‘‘small business status’’ were correct in their assessment and may 

continue to do so. 

Secondly, the bill requires the Small Business Administration to 

develop a transition plan for small businesses and Federal agencies 

as they shift to the 5-year rule. The transition plan also includes 

a transition or a buffer period in which firms that benefit from the 

old 3-year calculation may continue to rely on that formula for a 

set amount of time as they prepare for the eventual shift to the 5- 

year average calculation. 

In short, H.R. 2345 restates the will of Congress as intended in 

the Runway Act of 2018 and adopts solutions that will create a 

smooth transition for all parties involved. 

I would like to thank Member Golden for helping me and I urge 

my colleagues for their support of H.R. 2345 which clarifies the 

Small Business Runway Extension Act. And I yield back, Madam 

Chair. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

And now I recognize the gentleman from Maine, Mr. Golden, for 

an opening statement. 

Mr. GOLDEN. Thank you, Madam Chairwoman. 

I would like to thank Representative Stauber for sponsoring this 

bill and for the work that we were able to do together having a 

hearing in the Subcommittee about it. Earlier this year we did 

have a hearing in the Contracting and Infrastructure Subcommittee and saw that the SBA’s failure to implement the Runway Extension Act created confusion among small businesses who 

did not know if they currently qualified for contracting opportunities. 

One thing I hear from small businesses when I speak with them 

in Maine is that they want clarity and certainty. By passing this 

bill, we are going to create certainty where now there is confusion. 

Certainty that a small business should consider the sales over 5 

years instead of 3, and certainty that the act applies to the SBA 

as well as other agencies. I am hopeful that this bill will, as the 

original Runway Extension Act was designed, help growing small 

businesses get themselves in a place where they can compete with 

titans of industry and multinational corporations. 

While I am frustrated that we have to lead the SBA to water and 

make it drink, I hope that passing this bill will clarify what was 

already abundantly clear from the previous bill, this is intended to 

apply to the SBA and be implemented rapidly. 

I yield back the remainder of my time. Thank you, Madam 

Chairwoman. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back. 

And now I recognize the Ranking Member, Mr. Chabot. 

Mr. CHABOT. Thank you, Madam Chair. And again, in the interest in time and getting people to lunch here, I think because we 

are getting close to wrapping up, rather than read my opening 

statement I would just like to commend Mr. Stauber and Mr. GoldSBR002 with DISTILLER

18 

en for working together in a bipartisan manner. And also, if Ohio 

and Colorado can get together, I guess Minnesota and Maine can 

as well. 

So we thank you, and I yield back. 

Chairwoman VELA ́ ZQUEZ. Thank you. The gentleman yields 

back. I thank him and I thank both Representatives Stauber and 

Golden for working together, and I urge my colleagues to support 

the bill. 

If there is no further discussion, the Committee will move on to 

consideration of H.R. 2345. 

The clerk will report the title of the bill. 

The CLERK. H.R. 2345, the Clarifying the Small Business Runway—— 

Chairwoman VELA ́ ZQUEZ. Without objection, H.R. 2345 is considered as read and open for amendment at any point. 

Does anyone wish to offer an amendment? 

Mr. HAGEDORN. Madam Chair, I have an amendment. 

Chairwoman VELA ́ ZQUEZ. For what purpose does the gentleman from Minnesota seek recognition? 

Mr. HAGEDORN. I offer an amendment for consideration. 

Chairwoman VELA ́ ZQUEZ. The clerk will report the amendment. 

The CLERK. Amendment to H.R. 2345 offered by Mr. Hagedorn 

of Minnesota. 

Chairwoman VELA ́ ZQUEZ. Without objection, the amendment is 

considered as read. 

And the gentleman is recognized for 5 minutes. 

Mr. HAGEDORN. Thank you, Madam Chair. I will not take but 

just a second. 

I want to associate myself with the remarks of both the Ranking 

Member Stauber, my fellow Minnesotan, and Subcommittee Chair, 

Mr. Golden, about this bill. I appreciate this bill. I think it is certainly unfortunate that we had to get to this point that the Executive Branch has been dragging its feet but the purposes of the 

original law and what is being done today are excellent. 

All I have is the sense of the Congress to restate exactly in very 

plain terms what we intend to accomplish, including especially that 

this bill and the Runway Extension Act includes a governmentwide acquisition to contracts. And as somebody who used to work 

in the Treasury Department and I have seen my share of how Executive Branch employees can sometimes want to do their own 

thing or ignore the will of the Congress, I just simply wanted to 

put this out there so it is restated in common sense terms and that 

there is no misunderstanding once this bill passed of what the intention of this Committee and the House and the Senate, hopefully, 

as we pass the bill is intending. 

So with that, I yield back. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

I now recognize Mr. Chabot for any remarks he may have. 

Mr. CHABOT. Thank you, Madam Chair. And I will also be brief 

on this. 

This amendment makes clear to the public the intended application and effective date of the Small Business Runway Extension 

Act of 2018 as envisioned by Congress. 

SBR002 with DISTILLER

19 

I would like to thank Mr. Hagedorn for his helpful amendment 

and urge my colleagues to support it. And yield back. 

Chairwoman VELA ́ ZQUEZ. The gentleman yields back. 

Are there any other Members who wish to be recognized for a 

statement on the amendment? 

Well, seeing none, I want to thank the gentleman from Minnesota for offering the amendment, and I appreciate his concern 

that the Runway Extension Act of 2018 be applied as soon as possible. I, too, share your frustration that implementation of the law 

has been delayed. And it was the intent of Congress for the law to 

go into effect upon enactment. This amendment makes clear, and 

we are sending a strong message to the executive and to the administration that that was the intent of Congress. 

So the question now is on the amendment. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it and the amendment 

is agreed to. 

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

purposes of offering an amendment? 

Seeing none, the question is now on H.R. 2345 as amended. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it and H.R. 2345 as 

amended is agreed to. 

The question now occurs on reporting H.R. 2345 to the House as 

amended. 

All those in favor say aye. 

All those opposed say no. 

In the opinion of the Chair, the ayes have it. 

And H.R. 2345 as amended is reported to the House. 

Without objection, the Committee staff is authorized to correct 

punctuation and make other necessary technical corrections and 

conforming changes. 

Without objection, Members shall also be entitled to 2 days to file 

additional supplemental, dissenting, and minority views. 

So let me take this opportunity to thank all the Members for 

being here today and for offering and supporting the bills. I am 

proud we had a bipartisan effort today. Taken together, I believe 

these bills will truly help our Nation’s small firms, and I look forward to seeing them passed by the Committee and through the entire House. 

So if there is no further business to come before the Committee—— 

Mr. CHABOT. Madam Chair? 

Chairwoman VELA ́ ZQUEZ. Yes, sir? 

Mr. CHABOT. Just one final thing if I could. 

Chairwoman VELA ́ ZQUEZ. Sure. 

Mr. CHABOT. I also want to thank the gentlelady for working 

in a bipartisan fashion as this Committee has done over the years 

in passing legislation that both sides agree on, and look forward to 

doing this in the future and would recommend that all Members 

do the same thing because you can actually get things passed in 

SBR002 with DISTILLER

20 

this Committee which is not necessarily true in some of the other 

Committees around this place. So thank you, and I yield back. 

Chairwoman VELA ́ ZQUEZ. Well, I am happy that we took you 

away from the Judiciary hearings and have been able to lower your 

blood pressure. 

So if there is no further business to come before the Committee, 

we are adjourned. Thank you. 

[Whereupon, at 12:33 p.m., the Committee was adjourned.] 

[Whereupon, at 12:33 p.m., the committee was adjourned.] 

SBR002 with DISTILLER

21 

A P P E N D I X 

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Insert offset folio 21 here 36210.001

11 iiTII CO~GRI<JSS 

1ST :-:lESS! OJ'\ H.R. 277 

To <rrljn~t r;ollateml req11ir·enrents nlHil'r tlw Rn~nll Business 1\d for disaster· 

loans, and for other pnrposr~s. 

IN THE HOUSE OF REPRESENTATIVES 

,J.\Xl'.\HY fl, :2010 

:\[s. \'EL.\;t,(WE% (fin· hr•rself nnd :\fr. CIL\BOT) introdnl'ed the following· hill; 

"·hidr was rl'fened to tlw CornrnittPe on Small B11sirwss 

A BILL 

To <H1just eollateral requirements under the Small Business 

Aet for disaster loans, and for other purposes. 

Be d enacted by the Senate and House r~f' Representa2 t'ives <!f'lhe United States r!f'America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Aet mny he eited ns the "Aeeess to Snffieient 

5 Capital for Everyone in Natural Disnster areas Aet of 

6 2019" or the "ASCEND Aet of 2019". 

7 SEC. 2. COLLATERAL REQUIREMENTS FOR DISASTER 

8 LOANS UNDER THE SMALL BUSINESS ACT. 

9 (a) A.IIE:\'mm:\T TO Tim HISE APTER DnusTI~R 

10 Acr OP 2015.-Seeti.on 2102 of the RISE .M'ter Disaster 
22 

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Ad of 2015 (Public Law 114-HH) is amended be striking 

2 subsections (h) nnd (c). 

3 (h) EFFECTI\"E D.\TE.-The amendment maclc by 

4 snhseetion (a) shall take effeet as thongh emwted as pmt 

5 of the RISE After Disaster Aet of 2015. 

0 

•HR 277 IH 
23 

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11GTIICOXGRE8S H R 2142 1ST ::-lESSIO:\' 

• • 

To <lllH'!ld the Rmall Busi11ess ,\d to reqnire the Small Business nml "\grieultnn' Heg11latm·y EllfOJ'l'l'llWllt Omlmdsnnm to <·n~nt<~ n eelltmli;o:ed 

website for <'omplian<'e gnides, mtd for other Jnn·poses. 

IN 'rHE HOGSE 01,-, REPRESENTATI'\TES 

"\Pl\!L 9, 201!) 

:\Ir. DEL<;.\DO (for himself aud :\fr . .JoYCE of Peul!s)·lnlllin) illtrodneed tit<' 

following· bill; \\'hidt WHS referred to tlte Committee 011 Smnll Bnsim•ss 

A BILL 

To amend the Small Business Ad to reqmre the Small 

Business and Agrienltnre Regulator~' Enforcement Ombudsmml to erente a eentralized website for eomplianee 

g11ides, <md for otht•r purposes. 

Be d cJwctcd by the Scnutc (Uld IIoHsc (~!' Rcpresenfa2 li1•cs (d' the r:witrd Slates (d'Amcriea i11 Congress assembled, 

3 SECTION 1. CENTRALIZED WEBSITE FOR COMPLIANCE 

4 GUIDES. 

5 Seetion ~30 of the Small Business Aet (lf) U.S.C. ()57) 

6 1s nrnended by adding at the PIHl the follo·wing new sub7 seetions: 
24 

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2 

"(e) CE:\TRALIZED \YimSITE.-Not. later than G 

2 months after the <late of the e1metment of this snbseetion, 

3 tlH' Ombu(lsman shall maintain a publiely ayailable 

4 1v-ebsite that ind1Hles5 "(1) hypPrlinks to .small entit~' eompliance 

6 g11ides deseribed 1mder section 212(a)(1) of the 

7 Small Business Reg'Hlator~· Enforcement Fairness 

8 Aet of 19%; aJHI 

9 "(2) with respect to eaeh sneh small entity com10 plianee g11ide, the eontaet infonnation for an iwli11 vidual who cau offer assistance to small entities with 

12 respect to the rules thnt are the sul(jeet of such 

13 g11ide. 

14 "(f) REPORT 0:\ AGE:\CY CrnrPLL\:\CE.-The Om15 bndsmau shall inelnde in the annual report required under 

16 snbsection (b)(2)(C) <m assessment of agerw~· complianee 

17 with the reqniremPnts of seetion 212 of the Small Bnsi18 Hess Reg11latory EnforePment Fairness Aet of Hl9fi for the 

19 yem· eovered b? sueh nmmnl report.". 

0 

•HR 2142 IH 
25 

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lHiTII co.:.~Giti.;ss 

1ST SESSIO:\ H. R. 1649 

To <111H'!ld the Small BHsintoss "\d to l'l'qnin• e,d>er eertifieation for small 

business den•lopment t•entel' t'OllllSPlors, nml f'o1· other pnrposl'S, 

IN TIIE HOUSE OF HEPRESENTATI\TES 

:JLIIl<'ll H, :2019 

:J[r. CJI.IBOT (for himsPlf, :Jlr. I~\'.1:\S, nnd :Jis. YEL.\%(JT:E;t,) introd\WPd tlw 

follmring· hill; \\'hit•h mls referred to tlw Committl'P on Snmll Business 

A BILL 

To amend the Small Bnsiness Aet. to require eyhcr eertifi-

(•ntion for small business dewlopment ecllter eonuselors, 

and for other purposes. 

Be it enacted by the Senate and House r~f' Rcprescnta2 lives qf' the United States qf'Arnerica in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Aet mny be eite<l Hs the "Small Business Devel5 opment Center C~·ber Training Aet of 20 19". 

6 SEC. 2. DUTIES OF SMALL BUSINESS DEVELOPMENT CEN7 TER COUNSELORS. 

8 Sedion 21 of tJw Small Business Aet (lf) U.S.C. G48) 

9 is nmPIHled b~· ndding at the end the following: 
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"(o) CYBER STH,\'t'r:c;y 'l'R"\I:\T\G I·'OH S:'IL\LL Bn;;r2 :\"EHH Dt<J\'ELOP:\IE:\"T CJ<J:\"TERi-1.-

3 "(1) DIWI:\"ITI0:'\8.-In this snhsection4 "(~,1,) the term 'e~'her strategy' means re5 sources and tneties to assist in planning for cy6 herseenrity and deft•nding ag·ainst eyber risks 

7 aml eylwr attaeks; and 

8 ''(B) the term 'lead small business dewlop9 ment center' means a smn ll lmsiness deYelop10 ment center that has receiw~cl a gnmt from the 

11 Administration. 

12 "(2) CEHTIFH\\TIO:\" PROGR.\:\I.-The .Adminis13 trator sh<1ll establish a C~'bPr eonnseliug certifieation 

14 progTnm, or approw n similar existing program, to 

15 certif~' the emplo~'eE's of lend small lmsiuess deYelop16 ment centers to provide c~'her planning assistance to 

17 smnll business eoncems. 

18 ''(:i) Nt::\IBER OF ('EH'l'IPIED E:.\ll'LOYEEH.-

19 The Administrator slwll ensure that the nmnber of 

20 emplo~'ees of eaeh lead small business dew•lopmeut 

21 eentrr who an~ ('Prtified in providing eyber planning 

22 assistanc·e under this snhseetion is not fewer than 

23 the lesser of24 "(A) 5; or 

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"(B) 10 pen·eut of the total number of em2 ployees of the lend small lmsiness development 

3 eeuter. 

4 "( 4) CO:\'RIDERNfiO:\ OP 8:\L\LL BCSI:\l~RS DES VI~LOP:\IE:\T CE:\TER CYBim RTRA'l'EUY.-In ear6 rying out this subseetion, the Administrator, to the 

7 extent rmwtieable, shall eonsider m1? eyher strategy 

8 methods inelnded in the Small Business DeYelop9 ment Center Cyber Strategy deyeloped under seetion 

10 1S41(a) of the National Defense Authorization Aet 

11 for Fiseal Year 2017 (Pnblie hnv 114-:32S; 1:30 

12 Stat. 2662). 

13 "(5) REDIJWHSE:\IE:\T FOH CERTIFICATIO:\ 

14 "(A) I:\ OE:\E!UI,.-Subjeet to the availIS abilit~' of appropriations mHl subparagraph (B), 

16 the Administrator shall reirnbnrse a lend small 

17 business deY<"loprnent center for costs relating 

18 to the eertifieation of an employee of the lead 

19 small Jmsiness dewlopment center under the 

20 program estnblishccl mHler parngTaph (2). 

21 "(B) LDITTA'l'IO:\'.-The total amount re22 imbmsed b~' the A<lministmtor nnder snbpara23 gTaph (A) may not t'xeeed $:150,000 in nny fis24 en! ~'ear.". 

0 

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1HiTu co~m~g;:;;s H R 1648 

1 NT SESS!O\' 

• • 

To HllWIHl the Smnll Bnsint>ss ,\l't to prmidc for the establishment of Hll 

t•nhmwl'd l'ylJprse(·urity assist<lll<'C and protection.s for small lmsinesSl'S, 

all<l for other pu1·poscs. 

IN THE HOUSE OF REPRESEN'I'A'riVES 

:\Lmnr H, 201 !) 

~lr. CII.IBOT (for himsPlf awl :\Is. \'EL.I:C!,lFE%) introdu<:P<l the folltming- bill; 

whidt mts t'<~ferr<'d to the Committee 011 Hmall Bnsiness 

A BILL 

To amend the Small Business Ad to prmi.de for the establishment of au enhn need eyherseeurit~' assistance and 

protections fol' smnll lmsim'sses, and for other pnrposcs. 

1 Be It enacted by I he Senate and House (~I' Representa2 tiees qf'the Un-ited States r~f'Americo in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Ad mny bt> cited as the "Small Business Ad5 Y<mePd C~·bcrseenrity Enhancements Aet of 2019". 

6 SEC. 2. FINDINGS. 

7 Congn•ss finds the follmving-: 

8 ( 1) Small businesses represent more than 97 

9 pen•eut of total businesses in the United States and 
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make np au Pssentinl part of the supply ehain to 

2 some of the largest companies, man~· of whieh are in 

3 critical infrastrnctnre sectors, from financial and 

4 transportntion organizations to power, water, and 

5 healtlware suppliers. 

6 (2) Manv small businesses do uot haYe rledi7 ented information technology ("IT") (lepartments 

8 and must ontsonree IT fuuetions or assign these dn9 ties to an emplo~·ee as a seeon(hlr? function. 

10 (:3) The Internet Crime Complaint Center with11 in the Unite(! States Department of Jnstiee reeonled 

12 2~l8,72H eyberseenrity-relnted complaints in its 2016 

13 report. 

14 ( 4) There has heen stead~· increases of e~·herse15 enrity-related eomplaints year OYPr ~-ear sinee the 

16 yem· 2000, totaling :3,762,:348. 

17 ( 5) Sewnty-one 1wrcent of eyber attacks oe18 emTe<l in Jmsinesses with fewer Uum 100 Pmplo;y·ees. 

19 (G) Onl.'- 14 pereent of small- and me<linm-sizecl 

20 bm:;inesses beliew they haw the ability to effeetiwly 

21 mitigate r~~ber risks awl 1·1llnerabilities. 

22 (7) Small businesses risk theft mHl numipuln23 tion of sensitiw data if they laek adequate• eyhPrse24 enrity measures. 

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(M) The Better Business Bureau found that 

2 half of small businesses eonlrl remain profitable for 

3 only mw month if tlH•y lost essential data. 

4 (9) c~'llt'r erime is growing rapid!~' and the an5 nnal eosts to the global economy are estimatPd to 

6 reaeh over $2,000,000,000,000 by 2019. 

7 ( 10) c~,Jwrseenrit~- is a global ehallenge where 

8 the seeurity threat, attneks, and tPdmiqnes eontiu9 nail~- eYoln• nnd no eomJH1ll?, individunl, or F'ederal 

10 agene;- is immune from these threats. 

ll ( 11) Strong eollahoration hPtween the pnhlie 

12 and private seetor is essPntinl in the fight agninst 

13 eyher erime. 

14 (12) TltC're 1s a reluet<HlC'P mnoug small lmsi15 nesses to Yoluntnril,v shnre information with govern16 ment entitiPs, a lH l the Federal Gm-emment should 

17 work pr·mwtivel~- to ineentivize and enc~ourage vol18 nntary information sharing· to improYe the Nation's 

19 eyherseeurity postnre. 

20 SEC. 3. ENHANCED CYBERSECURITY ASSISTANCE AND PR0-

21 TECTIONS FOR SMALL BUSINESSES. 

22 Seetion 21(a) of the Rmnll Business Aet (15 U.R.C. 

23 G4H(a)) is amended b~- <Hl<ling- nt the end the following 

24 new paragraph: 

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''(0) 8:\L\LL llUSL'\El:-ii:l CYBERSECFRITY ASSIST2 A::'\CE A:\D PROTECTIOXS.-

3 "(A) ES'l\\HLIRIDIE::'\T OF S:\L\UJ m:sr4 :\'ESS CYBERRECURI'l'Y "\SSIS'I'i\l\'CE UXITS.-

5 The Administrator of the Small Business Ad6 ministration, in coordination ·with the Secretary 

7 of Commerce, and in eowmltation with the Sec8 retary of Homelan<l Secnrity awl the Attomey 

9 Gem•ral, shall estnblish10 "(i) in the r'Hlministration, a eentral 

11 small lmsine:-;s eybersecurity assistance 

12 unit; awl 

13 ''(ii) within each :-;mall business devel14 opment center, n reg5onal small business 

15 e~'bersceurity assistanee nnit. 

16 "(13) DFI'TES <W TilE CEXT&\L S:\L\LJ, 

17 BCSIXI·~SS ( 'YBERSE<TIUTY ASSIS'L\XC'E CXIT.-

18 "(i) Tx nE:'\ErL\L.-The central small 

19 lmsincss <~~'berseenrity assistmwe unit es20 tablished under snbpnrngraph (A)(i) shall 

21 serve ns tlw primnr;' interface for small 

22 lmsiness coneen1s to reeei\'e and share 

23 e~'ber threat indicntors and defensive meas24 nres with the Federal Government. 

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•HR 1648 IH 

"(ii) URE OF CAP"\BILITY A::\D PIWCESSES.-The ePntral small business cyherseeurit? assistanee unit shall nse the eapabilit)' aiHl process certified pursuant to section 105(c)(2)(A) of the Cybcrsecurity Information Sharing Act of 2015 (G U.S.C. 

J:)04(e)(2)(A)) to reeeive <·yher threat indicators or defensiYe measures from small 

business conet>rns. 

"(iii) APPLIC.\TlO::\ OP CifU.-A small 

business eoncern that receives or shares 

e)•ber threat indicators nnd defensive measnres with the F<'<leral Gowrmnent through 

the <~entral small business <')•hersecnrit.)' assistanee nnit established nncler subparagraph (A){i), or with any appropriate eutity pnrsnant to seetiou lO:)(c) of the Cyberseenrity Informntion Shming Aet of 201S 

(G U.S.C. lf)();)(c)), shall receive the protections and exemptions pnwided in sneh 

Act and this paragraph. 

"(C) HEL.\TIO:\' TO ::\CCIC.-

"(i) CEX'l'lL\L Sl\li\I"I" IWSI::\ESS CYImRSE('CHITY ,\SSIS'l\\::\CE F::\IT.-The 

central small hm:irwss eyherseenrity assist-
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17 

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21 

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25 

(j 

nnee nnit e~tnhli~lled nuder suhpnragraph 

(1\)(i) ~hall be c·olloeated with the national 

e;·hcr~eeurity alHl eommnnieations integration center. 

"(ii) Al'c'EfiS TO L'\FOIUL\'1'10:\'.-The 

national eybcr~ccnrity awl eomnmnieations 

integration center ~hall haYe aece~~ to all 

eyber threat indicator~ or clefensive mea~­

ures shared with the r·entral ~mall eyherseeurity a~~i~tanee unit established under 

~ubparagraph C1\)(i) tln·m1gh the n~e of the 

eapnbility and process cle~crihed in subparagraph (B)(ii). 

''(D) CnmHsECFJUTY "\SRISTAXCE I•'OR 

S:\L\LT, BCBlXERSES.-'rhe eentral ~mall lmsiness eyberscenrity n~~istanee unit e~tnhli~hcd 

under subparagraph (A)(i) shnll-

•IIR 1648 III 

"(i) work with cn('h rPgional snwll 

business e.'·hcrseenrity assistanee unit e~­

tahli~hed under ~nbparagn1ph (A)(ii) to 

prm'ide eyher~eeurity assistanee to small 

lmsiness ecmeerns; 

"(ii) leverage resonrees from the Admilli~tration, the Department of Commeree, the Department of Homeland Seen-
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•HR 1648 IH 

7 

rity, the Department of ,Justiee, the Departnwnt of the Treasury, the Department 

of State, and an? other F'ederal department or ngene~- the Administrator deternuues appropriate, in order to help imJH'OYe the e~·lwrsPeurit~- posture of small 

business eoneerns; 

"(iii) eoonlinate 1vith the Department 

of Homeland Seeurity to identii~- and disseminnte information to small business 

eoueerns in a form that is aeeessible and 

aetionahle h~- small business coneerns; 

"(iY) eoordinnte with the National Institute of Stcmdards ami Tt>clmolof:.,'',\' to 

identif~- and disseminate information to 

small business eoneerns on the most eosteffeetiw: methods for implementing dements of the eybPrseenrity frmnPwm·k of 

the N" a tiona! Institute of Standards and 

Tt'elmolo~-o'T applicable to improving the eyberseeurity posture of small business em1-

"(y) seek input from the Office of AdYoem·~- of the Administration to ensure 

that any polieies or proee<lures mlopted by 
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any dqmrtmeut, ag-eney, or im:tnunentality 

of the Federal GoYernment do not unduly 

add reg11lator~' burdens to small business 

eoneerns in a mnnuer that will hamper the 

imprm·lmwnt of the e~rberseeurity posture 

of sneh small business coneerns; nnd 

"(vi) leYernge resourees and relationships with reJn·est>ntatiws and entities inYolved in the national eyberseenrity and 

eomnmnieations integTHtion c•enter to puhlieize the c•apa('ity of the Federal Gowrnment to assist snmll hnsiness eoneerns m 

imprO\ing eyberseenrity pnwtiees. 

"(E) E:'\IL\:'\CED CYBER8ECCRITY PHOTECTI0:'\8 POR R~L\J,J, m::sr:mRRER.-

•HR 1648 IH 

"(i) I;-.;r <m:'\ER"\L.-Notwithstanding 

any other provision of law, no eanse of netion shnll liP or be maintained in an~· c•ourt 

against any small lmsiness eoneern, and 

snell netion shall lw promptly dismissed, if 

snell aetiml related to or arises out of-

"(l) nn~' aetiYit~' authorized 

under this paragTaph or the Cybersecmit~' Information Sharing- Act of 

2015 (6 U.S.C. H501 et seq.); or 
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•HR 1648 IH 

9 

"(II) an~' netion or inaetion in response to an~' eyher threat indicator, 

defensiYe measure, or other information shared or I'C(~eiyed pursuant to 

this paragraph or the Cyberseeurity 

Information Sharing Aet of 2015 ( 6 

U.S.C. 1501 et seq.). 

"(ii) APPLWATIO:\.-The exception 

provided in seetion 105(d)(5)(D)(ii)(I) of 

the C~'herseeurity Informatiou Sharing Act 

of 2015 (6 U.S.C. 150-l:(d)(5)(D)(ii)(I)) 

shall not apply to any c:~·ber threat indicator or defellsive measure shared or reeeiYerl by small lm;;iness concerns pursmmt 

to this paragraph or the C~'berseenrity Information Sharing Aet of 2015 (6 U.S.C. 

] 501 et seq.). 

"(iii) Rt:U<: OF' CO:\STRCC'TIO:\.-

Nothing in this subparagraph shall be constnwd to nffel't the applienbilit~· or merits 

of any defense, motion, or nrg11mcnt in an~' 

cause of netion in a court brought against 

an entity that is not a small business co11-

cern. 

"(F) DEFI:\ITICL'\'8.-In this paragraph: 
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10 

"(i) ClSA DJ~FL'il'l'I0::\8.-'rhe tenns 

'e:dwr threat indicator' and 'defensiye 

measure' have the meanings given sueh 

terms in section 102 of the C)·berseenrity 

Information Sharing Aet of 2015 (fi 

U.S.C. 1501). 

"(ii) :;'\L\THl::\AL CYHERSECFRI'l'Y "\_.'\]) 

('( l:\Dfl'::\ICW!'l(l::\8 I::\TEOFL\TIO::\ 

TER.-'l'he term 'national C)'berseeurity 

10 and eommnnieations integration center' 

11 me;ms the national e~·berseeurity and eom12 nmnientions integration center established 

13 nudn section 227 of the Homeland 8ecu14 rity Act of 2002 (G U.S.C. 14H).". 

15 SEC. 4. PROHIBITION ON NEW APPROPRIATIONS. 

16 (a) I:\ GE::\ER"\L.-No n<lditional funds nre nnthor17 ized to he appropriated to carry out this Aet ;md the 

18 mnendnwnts mu<le by this Ad. 

19 (b) ExiSTI::\0 Fc:---JDI::\o.-'rhis Aet and the amend20 ments nwde b~· this Aet shall be <~arried out using amounts 

21 macle ;wailable nnder sedion 21(a)(4)(C)(viii) of the Small 

22 Business Aet (15 U.S.C. fi4H(n)(4)(viii)). 

23 ( l') 'l'E( 'Il::\TC,\L "\::\D CO::\I•'OE:III::\G A:\II~:'.W:IIE::\T 

24 Section 21(a)(4)(C)(viii) of the Small Business Act (15 

25 U.S.C.G4H(a)(4)(C)(,·iii)) is amended to rend as follows: 

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•HR 1648 IH 

11 

"(yiii) TjL\IJ'J',\TIOi\'.-

"(I) C'YBERRE(THlTY ,\SSIST-

,\i\'( 'E.-From the fnnds appropriated 

pnrsuant to elause (Yii), the Administration shall reserve not less thau 

$1,000,000 in eaeh fiscal year to den:lop eyberseenrity assistauee units at 

small business deYelopment eenters 

under parngn1.ph (9). 

"(II) PoHTABLE ,\SSIST,\i\'CE.-

"(aa) Ix GEi\'El:L\L.-An~­

fnnds appropriated pursuant to 

elnnse (vii) that are remaining 

after reserving amounts under 

subdause (I) may be nsed for 

portnble assistanee for startup 

nnd snstainability uon-matehing 

gTnnt progTams to he conducted 

by eligible small business deyeJopment eenters in eommunities that 

are eeonomieall~- (•hallenged as a 

result of a business or government fneility down sizing or closing, wllieh has resulted in the 
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•HR 1648 IH 

12 

loss of jobs or small business mstability. 

"(bb) GR.\:\'T A;\IOL'\T A~D 

nm.-A uon-makhing grant 

nrHler this subelnnse shall not exeeed $100,000, and shall be nsed 

for small bnsincss dewlopment 

eentet· personnel expenses and related small business programs 

and services.". 

0 
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1HiTII ('();.,;()!{ENS 

18'1' SESS!O:-\ H.R.2331 

To reqnire ;m i\llllllal report oil the eyi>erse<'nrity of the Small Bnsiuess 

,\dmiuislratioll, and for otht>J' purposes. 

IN THE HOUSE OF HEPRESENTA'fiVES 

,\PHIL lti, 2019 

:\Ir. CHOW (for l1imself, :\Ir. B,\UlEHI-'0~, :\k VEL\Z(~n;;;;, ami :\Ir. CIL\BOT) 

introdm:ed the following- hill; \\'hi<'h \\'HS referred to the Con1mittt>e Oll 

Small Bnsi1wss 

A BILL 

To require m1 mJJmal report on the eyherseeurit~' of the 

Small Bnsine:,;s Administration, and for other purposes. 

Be it e1wctcd by the Senate and House qj' Representa2 tives r!f' the Unded States qfAmerica in Congress ussernbled, 

3 SECTION 1. SHORT TITLE. 

4 This Aet may he eited HS the "SBA c~'ber Amu·eness 

5 Aet". 

6 SEC. 2. CYBERSECURITY AWARENESS REPORTING. 

7 Seetion 10 of the Small Business Aet (1:1 U.S.C. G:)9) 

8 is mnended hy inserting after subseetion (a) the following: 

9 "(b) CYBEHRE< 'lTRITY REPORTR.-
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"(1) A);:\TAL HEPOl{'l'.-Not later than 180 

2 days after the date of ewtetment of this subsection, 

3 and eYE'I)" ~·ear thereafter, the Administrator shall 

4 submit a report to the appropriate congressional 

5 eommittees that ineludes6 ''(A) an assessment of the information 

7 teelmolog~' (as defined in section 11101 of title 

8 40, United States Code) and eyberseenrity m9 frastnwture of the Administration; 

10 "(13) n strategy to inerf~asP the c~·berseenri11 ty infrastrneture of the Administration; 

12 "(C) a detniled account of any information 

13 technology Pquipment or interconneded systPm 

14 m· snbs~·stem of equipment of the Administra15 tion that was manufactured br ml entity that 

16 has its principal place of business loented in the 

17 People's Hep11blic of China; aiHl 

18 "(D) an <weonnt of any C?lwrseenrit~· risk 

19 or incident that occurred at the Administrntiou 

20 dming· the 2-~·enr period precetling the date on 

21 whieh the report is submitted, and any aetion 

22 taken by the Administrator to respond to or re23 mediate any sneh eyberseeurity risk or ineident. 

24 "(2) ADDITIO:\.\L REPORT8.-If the Adminis25 trator determines that there is n reasonable basis to 

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condm!e that n eylwrseeurity risk or im~ident oe2 enrred at the Administration, the Administrator 

3 shall4 "(A) not later than 7 days after the elate 

5 on whieh the Admiuistrator makes that deter6 mination, notif)· the appropriate eongrc>ssional 

7 committec>s of the cybersecnrity risk or incident; 

8 am! 

9 "(B) not later than :30 <lays nfter the date 

10 on which tlw Administmtor HH.ths n <leiermina11 tiou nnder subparagraph (A)-

12 "(i) provide notice to indiYidm1ls and 

13 small business C'Oneerns affeeted by the l'y14 bersecnrit)· risk or incident; and 

15 "(ii) submit to the appropriate con16 gTessional committees a report, based on 

17 information available to the Administrator 

18 as of the date whieh tlw Administrator 

19 submits the report, that inelmles20 "(I) a smnmar~· of information 

21 about the e~·herseenrit~' risk or inei22 dent, inelwling how the eyberseeurity 

23 l'isk m· ineident oeenrred; nnd 

24 "(II) an estin1ate of the nnmber 

25 of indi\iduals and small business eon-

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eerns affeeted b~, the e~rberse<•nrit,v 

risk or ineident, ineluding an nssessment of the risk of harm to affected 

iudiYidnals and small lmsiness eoneerns. 

2 

3 

4 

5 

6 "(8) Rn,E OF CO:\"STRCCTIO~.-Nothing 111 

7 this subsection shall be eonstrned to affect the reS porting rPqnirements of the Administrator under 

9 chapter :i5 of title 44, U nitPrl States Corle, in parI 0 tienlm· the requirement to noti:D' the Federal infor11 mntion seem·ity incident eenter under section 

12 :i554(b)(7)(C)(ii) of snell title, or any otlwr prmri13 sion of law. 

14 "(4) DEFI:\"ITT0:\"8.-In this subseetion: 

15 ''(A) ~Ll.l'l'HOI'HL\'l'E CO:-.JG HESSIOl\.\.L CO :II16 :IIITTEES.-'l'he term '<tpJll'Oprinte congressional 

17 eonnnittees' meansIS "(i) the Commith~e on Small Business 

19 and Entrepreneurship of the Senate; and 

20 "(ii) the Committee on Small Bnsi21 ness of the Honse of Hepresentatin•s. 

22 "(B) CYBERSECFRITY RISK; I:\"CIDE:\"T.-

23 'l'he terms 'cyberseeurity risk' and 'incident' 

24 have the meanings g·iyeu snell terms, respee-

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tiwly, under seetion 2209(a) of thP Homeland 

Reemity Aet of 2002.". 

0 

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A;Uf'1E"<iKAiUJ J. J '> 1,< 1\ fRN~~1[NT 

!:'\}ORI\1.-\I!ON ,' 

.;:;i'C\ 

/ 

116TII CO:.JGRESS H R 2345 1 S'l' !:-lESS!( l:'\ 

• • 

To anwnd tlw Small Busitwss ,\et to <·lari(v the intention of Congrm;,.; that 

the ,\dministnttm· of the Small Business .Administration is ;mhjeet to 

eerhtin rcquircnwnts \\'it!t n•sped to estnhlishing size stnndnrds for small 

business <'OlH:(~I'lls, and for ot!H:J' p111'j)Oii<'S. 

IN THJ1J HOUSE OF' HJ1JPR:BJSJ1JNTArl'IVES 

APmL 1 H, 201 n 

:\II'. flT.\l'lll<:H (for himsl'lf nnd Mr. GoLrmx) introdueed the follm1·ing hill; 

whi(•h \\'HS n~ferred to the Committee on Small Bm;iness 

A BILL 

To amend the Small Bnsiness Aet to elarif~r the intention 

of CongTess that the Administrator of the Small Business 

Administration is subject to certain requirements with 

respeet to establishing size standards for small business 

concerns, and for other purposes. 

Be it enacted by the Senate and House qf' Representa2 fives (d' the United States (~!'America ·in Congress asse1nbled, 

3 SECTION 1. SHORT TITLE. 

4 This AC't nw;r be cited as the "Clnrif)Ting the Small 

5 Business Hnuwa~T J1Jxtension Aet". 
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SEC. 2. CLARIFYING AMENDMENT TO THE SMALL BUSINESS 

2 RUNWAY EXTENSION ACT OF 2018. 

3 Seetion :)(n)(2)(C) of the Small Bnf->iness Act (1:5 

4 U.S.C. ();)2(a)(2)(C)) is <lllWIHletl b~· inserting "(inelnding 

5 tlHe Administration when <Wting pursuaut to snbpnragraph 

6 (A))" after "no F'eclern 1 department or agene~·". 

7 SEC. 3. FINALIZATION OF SMALL BUSINESS RUNWAY EX8 TENSION ACT OF 2018 RULES. 

9 The Administrator of the Small Business Administra1 0 tion shall issne n finn 1 rule implementing the Small Busill ness HmnYn~· Extensiml Aet. of 201 H (Puhlie I jaw 11:5-

12 :324) not later than Deeember 17, 2019. 

13 SEC. 4. AMENDMENT TO SIZE STANDARDS FOR CERTAIN 

14 SMALL BUSINESS CONCERNS. 

15 (a) Srz:E ST1\:\'IHRDN I<'OR S:\IALL BFSI:\'ESS Co:\'-

16 ('EHXS Pnomnxo Srmm'ES.-Seetion 3(a)(2)(C)(ii)(II) 

17 of the Small Bnsiness Act (1;) TJ.S.C. G:32(a)(2)(C)(ii)(II)) 

18 is amended b~· striking "not less than". 

19 (b) Srz:E SL\XD.\HDs Fon 0TrmR Bn;r;-.;Ess Cox20 CER:\'8.-Section :3(a)(2)(C)(ii)(III) of the Small Business 

21 Ad (15 U.S.C. G>32(a)(2)(C)(ii)(III)) is amendt>ll by strik· 

22 ing "not less th<m :i ~·ears" and inst>rting "5 years". 

23 SEC. 5. TRANSITION PLAN FOR THE SMALL BUSINESS RUN24 WAY EXTENSION ACT OF 2018. 

25 (a) PL,\X HEQl'IRED.-Not later than 90 days after 

26 tbe date of the enad!lll'llt of this Act, tlH~ Administrator 

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d 

of the Small Business Administration shall implement a 

2 transition plan to nssist business coneerns and Federal 

3 ag-eucies 'with eomplimtee with the requirements of the 

4 Small Business Rnnwny Extension Aet of 2018 (Pnblie 

7 ( 1) I:; GE:\EfL\L.-The trnnsition plan de8 scribed under snhseetion (a) shnll inelnde a require9 ment that, during- the period beginning· 011 December 

10 17, 2018, and ending on the date that is () months 

11 after the dnt<• on which the Administrator issues 

12 final rnles implementing the Small Business Rnnway 

13 Extension Aet of 2018 (Public Law 115-324), al14 lows the use of a :=:-year ealenlation for a size stand15 arrl to be applied to a business concern if the nse 

16 of snell :3-year ea lcnlation n llows such eoneern to be 

17 considered a small lmsiness concern nnder section 

18 :3(n)(1) of the Small Business Act (15 U.S.C. 

19 G:32(a)(l )). 

20 (2) :3-YK\R (\\UTLATIO:\ DEFI:\ED.-ln this 

21 snhseetion, the term ":)-?PHr ealenlntion" means22 (A) ·with respeet to a business eoncern pro23 viding seniees deseribed muler elause (ii)(II) of 

24 sueh section, a tletenuination of the size of such 

25 eoneern on the hc1sis of the annual ayerage 

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2 

-1 

gros;.; reet'ipts of sueh eoneern over a period of 

:1 .venrs; and 

3 (B) with respeet to a lmsiness eoncern de4 serihed nuder dnnse (ii)(TII) of snell seetion, a 

5 determination of the size of such eoneern on the 

6 basis of data oYer a period of ;3 ?Cars. 

7 SEC. 6. REQUIREMENT TO UPDATE SAM. 

8 Not later than 90 days after the rlate of the enact9 ment of this ~\et, the System for Awnrd l\Ianagement (or 

10 any sueeessm· s~-stem) shall be updated to compl~- \Yith the 

11 requirements of this Aet. 

() 

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