I 

111TH CONGRESS 

1ST SESSION H. R. 1845 

To amend the Small Business Act to modernize Small Business Development 

Centers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2009 

Mr. SCHOCK introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To amend the Small Business Act to modernize Small 

Business Development Centers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Devel5 opment Centers Modernization Act of 2009’’. 

6 SEC. 2. SMALL BUSINESS DEVELOPMENT CENTERS OPER7 ATIONAL CHANGES. 

8 (a) ACCREDITATION REQUIREMENT.—Section 

9 21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)) 

10 is amended as follows: 


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1 (1) In the proviso, by inserting before ‘‘institu2 tion’’ the following: ‘‘accredited’’. 

3 (2) In the sentence beginning ‘‘The Administra4 tion shall’’, by inserting before ‘‘institutions’’ the fol5 lowing: ‘‘accredited’’. 

6 (3) By adding at the end the following new sen7 tence: ‘‘In this paragraph, the term ‘accredited insti8 tution of higher education’ means an institution that 

9 is accredited as described in section 101(a)(5) of the 

10 Higher Education Act of 1965 (20 U.S.C. 

11 1001(a)(5)).’’. 

12 (b) PROGRAM NEGOTIATIONS.—Section 21(a)(3) of 

13 the Small Business Act (15 U.S.C. 648(a)(3)) is amended 

14 in the matter before subparagraph (A), by inserting before 

15 ‘‘agreed’’ the following: ‘‘mutually’’. 

16 (c) CONTRACT NEGOTIATIONS.—Section 21(a)(3)(A) 

17 of the Small Business Act (15 U.S.C. 648(a)(3)(A)) is 

18 amended by inserting after ‘‘uniform negotiated’’ the fol19 lowing: ‘‘mutually agreed to’’. 

20 (d) SBDC HIRING.—Section 21(c)(2)(A) of the 

21 Small Business Act (15 U.S.C. 648(c)(2)(A)) is amended 

22 by inserting after ‘‘full-time staff’’ the following: ‘‘, the 

23 hiring of which shall be at the sole discretion of the center 

24 without the need for input or approval from any officer 

25 or employee of the Administration’’. 


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1 (e) CONTENT OF CONSULTATIONS.—Section 

2 21(a)(7)(A) of the Small Business Act (15 U.S.C. 

3 648(a)(7)(A)) is amended in the matter before clause (i) 

4 by inserting after ‘‘under this section’’ the following: ‘‘, 

5 or the content of any consultation with such an individual 

6 or small business concern,’’. 

7 (f) AMOUNTS FOR ADMINISTRATIVE EXPENSES.— 

8 Section 21(a)(4)(C)(v)(I) of the Small Business Act (15 

9 U.S.C. 648(a)(4)(C)(v)(I)) is amended to read as follows: 

10 ‘‘(I) IN GENERAL.—Of the amounts 

11 made available in any fiscal year to carry 

12 out this section, not more than $500,000 

13 may be used by the Administration to pay 

14 expenses enumerated in subparagraphs (B) 

15 through (D) of section 20(a)(1).’’. 

16 (g) NON-MATCHING PORTABILITY GRANTS.—Section 

17 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 

18 648(a)(4)(C)(viii)) is amended by adding at the end the 

19 following: ‘‘In the event of a disaster, the dollar limitation 

20 in the preceding sentence shall not apply.’’. 

21 (h) DISTRIBUTION TO SBDCS.—Section 21(b) of the 

22 Small Business Act (15 U.S.C. 648(b)) is amended by 

23 adding at the end the following new paragraph: 

24 ‘‘(4) LIMITATION ON DISTRIBUTION TO SMALL BUSI25 NESS DEVELOPMENT CENTERS.— 


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1 ‘‘(A) IN GENERAL.—Except as otherwise pro2 vided in this paragraph, the Administration shall not 

3 distribute funds to a Small Business Development 

4 Center if the State in which the Small Business De5 velopment Center is located is served by more than 

6 one Small Business Development Center. 

7 ‘‘(B) UNAVAILABILITY EXCEPTION.—The Ad8 ministration may distribute funds to a maximum of 

9 2 Small Business Development Centers in any State 

10 if no applicant has applied to serve the entire State. 

11 ‘‘(C) GRANDFATHER CLAUSE.—The limitations 

12 in this paragraph shall not apply to any State in 

13 which more than one Small Business Development 

14 Center received funding prior to January 1, 2007. 

15 ‘‘(D) DEFINITION.—For the purposes of this 

16 paragraph, the term ‘Small Business Development 

17 Center’ means the entity selected by the Administra18 tion to receive funds pursuant to the funding for19 mula set forth in subsection (a)(4), without regard 

20 to the number of sites for service delivery such enti21 ty establishes or funds.’’. 

22 (i) WOMEN’S BUSINESS CENTERS.—Section 21(a)(1) 

23 of the Small Business Act (15 U.S.C. 648(a)(1)), as 

24 amended, is further amended by striking ‘‘or a women’s 

25 business center operating pursuant to section 29’’ and by 


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1 striking ‘‘and women’s business centers operating pursu2 ant to section 29’’. 

3 SEC. 3. ACCESS TO CREDIT AND CAPITAL. 

4 Section 21 of the Small Business Act (15 U.S.C. 648) 

5 is amended by adding at the end the following new sub6 section: 

7 ‘‘(o) ACCESS TO CREDIT AND CAPITAL PROGRAM.— 

8 ‘‘(1) IN GENERAL.—The Administration shall 

9 establish a grant program for small business devel10 opment centers in accordance with this subsection. 

11 To be eligible for the program, a small business de12 velopment center must be in good standing and com13 ply with the other requirements of this section. 

14 Funds made available through the program shall be 

15 used to— 

16 ‘‘(A) develop specialized programs to assist 

17 local small business concerns in securing capital 

18 and repairing damaged credit; 

19 ‘‘(B) provide informational seminars on se20 curing credit and loans; 

21 ‘‘(C) provide one-on-one counseling with 

22 potential borrowers to improve financial presen23 tations to lenders; and 


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1 ‘‘(D) facilitate borrowers’ access to non2 traditional financing sources, as well as tradi3 tional lending sources. 

4 ‘‘(2) AWARD SIZE LIMIT.—The Administration 

5 may not award an entity more than $300,000 in 

6 grant funds under this subsection. 

7 ‘‘(3) AUTHORITY.—Subject to amounts ap8 proved in advance in appropriations Acts and sepa9 rate from amounts approved to carry out the pro10 gram established in subsection (a)(1), the Adminis11 tration may make grants or enter into cooperative 

12 agreements to carry out this subsection. 

13 ‘‘(4) AUTHORIZATION.—There is authorized to 

14 be appropriated not more than $2,500,000 for the 

15 purposes of carrying out this subsection for each of 

16 the fiscal years 2010 and 2011.’’. 

17 SEC. 4. PROCUREMENT TRAINING AND ASSISTANCE. 

18 Section 21 of the Small Business Act (15 U.S.C. 

19 648), as amended, is further amended by adding at the 

20 end the following new subsection: 

21 ‘‘(p) PROCUREMENT TRAINING AND ASSISTANCE.— 

22 ‘‘(1) IN GENERAL.—The Administration shall 

23 establish a grant program for small business devel24 opment centers in accordance with this subsection. 

25 To be eligible for the program, a small business deVerDate Nov 24 2008 00:02 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1845.IH H1845

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1 velopment center must be in good standing and com2 ply with the other requirements of this section. 

3 Funds made available through the program shall be 

4 used to— 

5 ‘‘(A) work with local agencies to identify 

6 contracts that are suitable for local small busi7 ness concerns; 

8 ‘‘(B) prepare small businesses to be ready 

9 as subcontractors and prime contractors for 

10 contracts made available under the American 

11 Recovery and Reinvestment Act of 2009 (Public 

12 Law 111–5) through training and business ad13 visement, particularly in the construction 

14 trades; and 

15 ‘‘(C) provide technical assistance regarding 

16 the Federal procurement process, including as17 sisting small business concerns to comply with 

18 federal regulations and bonding requirements. 

19 ‘‘(2) AWARD SIZE LIMIT.—The Administration 

20 may not award an entity more than $300,000 in 

21 grant funds under this subsection. 

22 ‘‘(3) AUTHORITY.—Subject to amounts ap23 proved in advance in appropriations Acts and sepa24 rate from amounts approved to carry out the pro25 gram established in subsection (a)(1), the AdminisVerDate Nov 24 2008 00:02 Apr 03, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1845.IH H1845

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1 tration may make grants or enter into cooperative 

2 agreements to carry out this subsection. 

3 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

4 There is authorized to be appropriated not more 

5 than $2,500,000 for the purposes of carrying out 

6 this subsection for each of the fiscal years 2010 and 

7 2011.’’. 

8 SEC. 5. GREEN ENTREPRENEURS TRAINING PROGRAM. 

9 Section 21 of the Small Business Act (15 U.S.C. 

10 648), as amended, is further amended by adding at the 

11 end the following new subsection: 

12 ‘‘(q) GREEN ENTREPRENEURS TRAINING PRO13 GRAM.— 

14 ‘‘(1) IN GENERAL.—The Administration shall 

15 establish a grant program for small business devel16 opment centers in accordance with this subsection. 

17 To be eligible for the program, a small business de18 velopment center must be in good standing and com19 ply with the other requirements of this section. 

20 Funds made available through the program shall be 

21 used to— 

22 ‘‘(A) provide education classes and one-on23 one instruction in starting a business in the 

24 fields of energy efficiency, green technology, or 

25 clean technology; 


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1 ‘‘(B) coordinate such classes and instruc2 tion, to the extent practicable, with local com3 munity colleges and local professional trade as4 sociations; and 

5 ‘‘(C) assist and provide technical coun6 seling to individuals seeking to start a business 

7 in the fields of energy efficiency, green tech8 nology, or clean technology. 

9 ‘‘(2) AWARD SIZE LIMIT.—The Administration 

10 may not award an entity more than $300,000 in 

11 grant funds under this subsection. 

12 ‘‘(3) AUTHORITY.—Subject to amounts ap13 proved in advance in appropriations Acts and sepa14 rate from amounts approved to carry out the pro15 gram established in subsection (a)(1), the Adminis16 tration may make grants or enter into cooperative 

17 agreements to carry out this subsection. 

18 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

19 There is authorized to be appropriated not more 

20 than $2,500,000 for the purposes of carrying out 

21 this subsection for each of the fiscal years 2010 and 

22 2011.’’. 


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1 SEC. 6. MAIN STREET STABILIZATION. 

2 Section 21 of the Small Business Act (15 U.S.C. 

3 648), as amended, is further amended by adding the fol4 lowing new subsection at the end thereof: 

5 ‘‘(r) MAIN STREET STABILIZATION.— 

6 ‘‘(1) IN GENERAL.—The Administration shall 

7 establish a grant program for small business devel8 opment centers in accordance with this subsection. 

9 To be eligible for the program, a small business de10 velopment center must be in good standing and com11 ply with the other requirements of this section. 

12 Funds made available through the program shall be 

13 used to— 

14 ‘‘(A) establish a statewide small business 

15 helpline within every State and United States 

16 territory to provide immediate expert informa17 tion and assistance to small business concerns; 

18 ‘‘(B) develop a portfolio of online survival 

19 and growth tools and resources that struggling 

20 small business concerns can utilize through the 

21 Internet; 

22 ‘‘(C) develop business advisory capacity to 

23 provide expert consulting and education to as24 sist small businesses at-risk of failure and to, in 

25 areas of high demand, shorten the response 

26 time of small business development centers, 


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1 and, in rural areas, support added outreach in 

2 remote communities; 

3 ‘‘(D) deploy additional resources to help 

4 specific industry sectors with a high presence of 

5 small business concerns, which shall be targeted 

6 toward clusters of small businesses with similar 

7 needs and build upon best practices from earlier 

8 assistance; 

9 ‘‘(E) develop a formal listing of financing 

10 options for small business capital access; and 

11 ‘‘(F) deliver services that help dislocated 

12 workers start new businesses. 

13 ‘‘(2) AWARD SIZE LIMIT.—The Administration 

14 may not award an entity more than $250,000 in 

15 grant funds under this subsection. 

16 ‘‘(3) AUTHORITY.—Subject to amounts ap17 proved in advance in appropriations Acts and sepa18 rate from amounts approved to carry out the pro19 gram established in subsection (a)(1), the Adminis20 tration may make grants or enter into cooperative 

21 agreements to carry out this subsection. 

22 ‘‘(4) AUTHORIZATION.—There is authorized to 

23 be appropriated not more than $2,500,000 for the 

24 purposes of carrying out this subsection for each of 

25 the fiscal years 2010 and 2011.’’. 


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1 SEC. 7. PROHIBITION ON PROGRAM INCOME BEING USED 

2 AS MATCHING FUNDS. 

3 Section 21(a)(4)(B) (15 U.S.C. 648(a)(4)(B)) is 

4 amended by inserting after ‘‘Federal program’’ the fol5 lowing: ‘‘and shall not include any funds obtained through 

6 the assessment of fees to small business clients’’. 

7 SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 

8 Section 20 of the Small Business Act (15 U.S.C. 631 

9 note) is amended by inserting after subsection (e) the fol10 lowing new subsection: 

11 ‘‘(f) SMALL BUSINESS DEVELOPMENT CENTERS.— 

12 There is authorized to be appropriated to carry out the 

13 Small Business Development Center Program under sec14 tion 21 $150,000,000 for fiscal year 2010 and 

15 $160,000,000 for fiscal year 2011.’’. 

Æ 


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