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[Senate Report 114-242]
[From the U.S. Government Publishing Office]

                                                     Calendar No. 110
                                                     
114th Congress }                                        { Report
                                 SENATE
 2d Session    }                                        { 114-242

======================================================================
 
                  SCORE FOR SMALL BUSINESS ACT OF 2015

                                _______
                                

                 April 21, 2016.--Ordered to be printed

                                _______
                                

Mr. Vitter, from the Committee on Small Business and Entrepreneurship, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1000]

    The Committee on Small Business and Entrepreneurship, to 
which was referred the bill (S. 1000) to strengthen resources 
for entrepreneurs by improving the SCORE program, and for other 
purposes, having considered the same, reports favorably 
thereon, with an amendment in the nature of a substitute, and 
recommends that the bill, as amended, do pass.

                            I. INTRODUCTION

    The SCORE for Small Business Act of 2015 (S. 1000) was 
introduced by Senator Risch, with original co-sponsorship from 
Senator Coons, on April 16, 2015. Senators Ayotte, Gardner, 
Peters, and Udall are also cosponsors of the legislation.
    The SCORE for Small Business Act of 2015 increases SCORE's 
authorization level to $10.5 million in fiscal years 2016 
through 2018 and strengthens the SCORE program through 
directives that impact the quality, scope and cost of services 
provided through the SCORE program.
    During the markup of the bill, the Vitter amendment was 
approved unanimously by voice vote. The Vitter amendment 
establishes an offset for the increased authorization for the 
SCORE program. The offset will be a limitation on the amount 
the Administration can spend on entrepreneurship education 
programs to $5 million, $2.5 million of which must be obligated 
to the Emerging Leaders initiative. The bill, as amended, was 
approved unanimously by voice vote.

              II. HISTORY (PURPOSE & NEED FOR LEGISLATION)

    The Service Corps of Retired Executives (SCORE) is a non-
profit association, authorized under the Small Business Act, 
and a resource partner of the SBA. The SBA's SCORE program 
embodies the power of public-private partnerships. SCORE, which 
is made up of a network of more than 13,000 volunteers with 348 
chapters across the country, is dedicated to educating and 
assisting entrepreneurs and small business owners in the 
formation, growth and expansion of their small businesses. 
According to the SCORE Association, in FY13, SCORE estimates 
that it served over 400,000 clients, and helped to create more 
than 40,500 new businesses and more than 67,098 new jobs. In 
FY14, SCORE started an additional 56,079 new businesses, served 
an additional 107,201 clients, and created 47,187 new jobs. The 
Committee heard time and again at hearings and roundtables from 
volunteers serving in SCORE, and business owners who received 
SCORE assistance, about SCORE and how it could provide more 
economic benefits if it had adequate support.
    The SCORE Program Improvement Act of 2012 (S. 3246) was 
introduced on May 24, 2012 by Senator Snowe. The bill would 
have reauthorized the program through FY15. Additionally, the 
bill included several structural components and requirements 
for the program.
    The SCORE for Small Business Act of 2012 (S. 3508) would 
have increased SCORE's authorization level to $13 million in 
Fiscal Year 2013, $15 million in Fiscal Year 2014, and $17 
million in Fiscal Year 2015. According to SCORE, the proposed 
increase in funding would have allowed SCORE to complete a 
large-scale transformation process that would have dramatically 
increased the number of businesses started during the next five 
years and implemented initiatives targeted at improving the 
efficiency and effectiveness of the program.
    The SCORE for Small Business Act of 2014 (S. 2008) was 
introduced on February 10, 2014 to reauthorize the program for 
FY2015-FY2017; modify program requirements with respect to the 
role of participating volunteers, program plans and goals, and 
reporting; and outline privacy requirements pertaining to the 
disclosure of information of businesses assisted under such 
program.

                      III. HEARINGS & ROUNDTABLES

    In the 112th Congress:
    On March 8, 2011, the Committee held a roundtable 
discussion titled ``Reauthorization of SCORE: Discussion and 
Recommendations for Volunteer-based Small Business 
Assistance,'' chaired by Senator Landrieu, to discuss SCORE 
reauthorization. Witnesses testified that the SCORE program was 
effective and inexpensive to develop with proper funding. It 
was noted that only three months into 2011, the SCORE program 
had already exceeded its 2010 performance numbers by 20% and 
was continuing to rapidly expand its aid to small businesses.

                        IV. DESCRIPTION OF BILL

    The bill increases SCORE's authorization level to $10.5 
million in each fiscal year 2016 through 2018. Additionally, 
the bill directs SCORE to provide no-cost or low-cost 
assistance, coaching, mentoring and other services to 
entrepreneurs and small business owners on aspects of creating 
or strengthening a business. The bill also requires SCORE to 
develop outreach mechanisms and expanded service delivery 
capacity, particularly in rural, economically disadvantaged, 
and other traditionally underserved areas, to ensure diversity 
amongst both the volunteers providing services and the small 
businesses being served. Further, the bill includes reporting 
requirements regarding the number of volunteers and the number 
of small businesses served, and to the extent possible the 
number of businesses created, jobs created, the value of 
volunteer-services provided, and other outcomes-based metrics.
    The amendment establishes an offset for the increased 
authorization. The offset will be a limitation on the amount 
the Administration can spend on entrepreneurship education 
programs to $5 million, $2.5 million of which must be obligated 
to the Emerging Leaders initiative. This amount is $2 million 
less than the FY2015 enacted level, and $6 million less than 
the FY2016 Administration request.

                           V. COMMITTEE VOTE

    In compliance with rule XXVI (7)(b) of the Standing Rules 
of the Senate, the following vote was recorded on April 23, 
2015.
    A motion to adopt the SCORE for Small Business Act of 2015, 
a bill to strengthen resources for entrepreneurs by improving 
the SCORE program, and for other purposes, as amended by the 
Vitter amendment, was approved unanimously by voice vote with 
the following Senators present: Senators Vitter, Risch, 
Fischer, Gardner, Ernst, Ayotte, Enzi, Shaheen, Cantwell, 
Cardin, Heitkamp, Booker, Coons, Hirono, and Peters.

                           VI. COST ESTIMATE

    In compliance with rule XXVI (11)(a)(1) of the Standing 
Rules of the Senate, the Committee estimates the cost of the 
legislation will be equal to the amounts discussed in the 
following letter from the Congressional Budget Office:

                                                      June 8, 2015.
Hon. David Vitter,
Chairman, Committee on Small Business and Entrepreneurship,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1000, the SCORE for 
Small Business Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

S. 1000--SCORE for Small Business Act of 2015

    Summary: S. 1000 would authorize the appropriation of $10.5 
million for each of fiscal years 2016, 2017, and 2018 to carry 
out the SCORE program, which supports volunteers who provide 
counseling and advice to individuals who own or wish to own a 
small business. Under current law, the program is known as the 
Service Corps of Retired Executives; S. 1000 would change the 
name to the SCORE program.
    CBO estimates that implementing S. 1000 would cost $32 
million over the 2016-2020 period, assuming appropriation of 
the specified amounts. Pay-as-you-go procedures do not apply to 
this legislation because it would not affect direct spending or 
revenues.
    S. 1000 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the federal government: The estimated 
budgetary effect of S. 1000 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2016   2017   2018   2019   2020  2016-2020
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Level...............................................     11     11     11      0      0       32
Estimated Outlays.................................................      6      9     11      5      1       32
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes the bill 
will be enacted near the end of fiscal year 2015 that the 
specified amounts will be appropriated each year, and that 
spending will follow historical patterns for the affected 
activities.
    S. 1000 would authorize the appropriation of $10.5 million 
for each of fiscal years 2016, 2017, and 2018 to carry out the 
SCORE program, which supports volunteers to provide advice and 
counseling to individuals who own or desire to start a small 
business. The bill would direct the Small Business 
Administration (SBA) to ensure that each SCORE chapter develops 
a plan to provide services to disadvantaged and underserved 
areas and to develop new skills for SCORE volunteers. Based on 
information from the SBA, CBO estimates that implementing S. 
1000 would cost $32 million over the 2016-2020 period, assuming 
appropriation of the specified amounts.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: S. 1000 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Logan Smith.
    Estimate approved by: Theresa Gullo, Assistant Director for 
Budget Analysis.

                  VII. EVALUATION OF REGULATORY IMPACT

    In compliance with rule XXVI(11)(b) of the Standing Rules 
of the Senate, it is the opinion of the Committee that no 
significant additional regulatory impact will be incurred in 
carrying out the provisions of this legislation. There will be 
no additional impact on the personal privacy of companies or 
individuals who utilize the services provided.

                   VIII. SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    This section provides for the title, ``SCORE for Small 
Business Act of 2015''.

Section 2. SCORE reauthorization

    This section authorizes the Service Corps of Retired 
Executives (SCORE) program at $10.5 million in each fiscal year 
2016 through 2018. The SCORE program has been a major 
contributor to the growth and sustainability of small 
businesses around America. As a Resource Partner of the SBA, 
authorized under the Small Business Act, SCORE has served over 
400,000 clients, helping to create more than 38,000 new 
businesses and more than 67,098 new jobs.

Section 3. SCORE program

    This section amends Section 8 of the Small Business Act to 
clarify and direct SCORE volunteers to provide no-cost or low-
cost assistance, coaching, mentoring and other services to 
entrepreneurs and small business owners on aspects of creating 
or strengthening a business. It also requires SCORE (with 
oversight from the Administrator) to develop outreach 
mechanisms and expanded service delivery capacity, particularly 
in rural, economically disadvantaged, and other traditionally 
underserved areas, to ensure diversity amongst both the 
volunteers providing services and the small businesses being 
served. The SCORE Association must submit an annual report to 
the Administrator providing details on the success of the 
program. This section also protects individuals and small 
businesses' right to privacy concerning personal information 
such as names, addresses, or telephone numbers. To offset the 
cost of the program, this section limits the amount the 
Administration can spend on entrepreneurship education programs 
to $5 million, $2.5 million of which must be obligated to the 
Emerging Leaders initiative. This amount is $2 million less 
than the FY2015 enacted level, and $6 million less than the 
FY2016 Administration request.

Section 4. Technical and conforming amendments

    This section makes the appropriate amendments to law in 
accordance with continuity and the changes made in the SCORE 
for Small Business Act of 2015.

                                  [all]
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