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48–126 PDF 2009

SUBCOMMITTEE ON RURAL DEVELOPMENT, 

ENTREPRENEURSHIP AND TRADE MARKUP ON 

ENTREPRENEURIAL DEVELOPMENT 

PROGRAMS LEGISLATION 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED ELEVENTH CONGRESS 

FIRST SESSION 

HEARING HELD 

APRIL 30, 2009 

Small Business Committee Document Number 111-118 

Available via the GPO Website: http://www.access.gpo.gov/congress/house 


Congress.#13
HOUSE COMMITTEE ON SMALL BUSINESS 

NYDIA M. VELA ́ ZQUEZ, New York, Chairwoman 

DENNIS MOORE, Kansas 

HEATH SHULER, North Carolina 

KATHY DAHLKEMPER, Pennsylvania 

KURT SCHRADER, Oregon 

ANN KIRKPATRICK, Arizona 

GLENN NYE, Virginia 

MICHAEL MICHAUD, Maine 

MELISSA BEAN, Illinois 

DAN LIPINSKI, Illinois 

JASON ALTMIRE, Pennsylvania 

YVETTE CLARKE, New York 

BRAD ELLSWORTH, Indiana 

JOE SESTAK, Pennsylvania 

BOBBY BRIGHT, Alabama 

PARKER GRIFFITH, Alabama 

DEBORAH HALVORSON, Illinois 

SAM GRAVES, Missouri, Ranking Member 

ROSCOE G. BARTLETT, Maryland 

W. TODD AKIN, Missouri 

STEVE KING, Iowa 

LYNN A. WESTMORELAND, Georgia 

LOUIE GOHMERT, Texas 

MARY FALLIN, Oklahoma 

VERN BUCHANAN, Florida 

BLAINE LUETKEMEYER, Missouri 

AARON SCHOCK, Illinois 

GLENN THOMPSON, Pennsylvania 

MIKE COFFMAN, Colorado 

MICHAEL DAY, Majority Staff Director 

ADAM MINEHARDT, Deputy Staff Director 

TIM SLATTERY, Chief Counsel 

KAREN HAAS, Minority Staff Director 

(II) 

Subcommittee on Rural Development, Entrepreneurship and Trade 

HEATH SHULER, Pennsylvania, Chairman 

MICHAEL MICHAUD, Maine 

BOBBY BRIGHT, Alabama 

KATHY DAHLKEMPER, Pennsylvania 

ANN KIRKPATRICK, Arizona 

YVETTE CLARKE, New York 

BLAINE LUETKEMEYER, Missouri, Ranking 

STEVE KING, Iowa 

AARON SCHOCK, Illinois 

GLENN THOMPSON, Pennsylvania 

(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page 

Shuler, Hon. Heath .................................................................................................. 1 

Luetkemeyer, Hon. Blaine ...................................................................................... 2 

Statements for the Record: 

H.R. 1803, ’Veterans Business Center Act of 2009’ .............................................. 9 

H.R. 1807, ’Educating Entrepreneurs through Today’s Technology Act’ ............ 19 

H.R. 1834, ’The Native American Business Development Enhancement Act 

of 2009’ .................................................................................................................. 23 

H.R. 1838, ’Women’s Business Center Act’ ............................................................ 34 

H.R. 1839, ’SCORE Act’ .......................................................................................... 43 

H.R. 1842, ’Expanding Entrepreneurship Act of 2009’ ......................................... 47 

H.R. 1845, ’The Small Business Development Center Modernization Act of 

2009’ ...................................................................................................................... 52 

(V) 

(1) 

SUBCOMMITTEE ON RURAL DEVELPMENT, 

ENTREPRENEURSHIP AND TRADE MARKUP 

ON ENTREPRENEURIAL DEVELOPMENT 

PROGRAMS LEGISLATION 

Thursday, April 30, 2009 

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

Washington, DC. 

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

2360 Rayburn House Office Building, Hon. Heath Shuler [chairman 

of the Subcommittee] presiding. 

Present: Representatives Shuler, Bright, Dahlkemper, Kirkpatrick, Luetkemeyer and Thompson. 

Chairman SHULER. I am pleased this morning to call this hearing to order. 

We often talk about the role that small business plays in the creation of jobs and with good reason. Small firms generate between 

60 and 80 percent of new positions. Following the recession in the 

mid-1990s, they created 3.8 million jobs. With unemployment expected to reach 9.8 percent in 2010, we could use that growth 

today. 

But unfortunately, many firms are struggling to make ends meet. 

Let’s allow them to hire new workers. In the face of historic economic challenges, we should be investing in America’s job creators. 

SBA’s Entrepreneurial Development Programs, or ED, do just that. 

Of all the tools in the small business toolbox, these are some of the 

most critical. They help small firms do everything from draft business plans to access capital. 

Today we will reauthorize and enhance ED programs. The seven 

bills before us will not only modernize the program, but will make 

it work for our entrepreneurs. 

At this time I will yield to the Ranking Member for his opening 

statement. 

Mr. LUETKEMEYER. Good morning, and thank you, Mr. Chairman, for the opportunity to mark up critical legislation aimed at 

making the Entrepreneurial Development Programs more effective 

and responsive to the needs of small businesses. 

At a time when small businesses are struggling to stay afloat, we 

must work to improve the usefulness of these initiatives. Rather 

than relying heavily on the government to spend our way out of 

this recession, we need to focus on insuring our small business, 

truly engines of job creation, are able to utilize all of the resources 

already available. 

2 

As a small businessman myself, I am pleased to introduce a bill 

that will assist my many fellow small business owners and employees throughout my district in Missouri and all throughout the 

country. 

Two out of every three jobs created in the U.S. are created by 

small businesses, and like every recession before, small businesses 

will lead the way this time in economic growth, determination and 

innovation. 

H.R. 1842, the Expanding Entrepreneurship Act of 2009, makes 

several changes to the SBA’s Entrepreneurial Development Programs. My bill aims to expand entrepreneurial job growth by pulling resources from duplicative government programs into a streamlined program to help emphasize job creation and retention. Specifically, this bill requires the SBA to develop a job creation strategy for 2009-2010, including the agency’s intent for using existing 

programs to create and retain jobs throughout the United States. 

The SBA Administrator will also be required to collect measures 

related to the program performance and job creation, insuring that 

existing programs are being used effectively and duplicative government programs are done away with, and to insure easy access 

for entrepreneurs a database of providers of entrepreneurial development services will be established. 

As our country continues to address the economic problems hurting our families and businesses, we should be growing our small 

businesses instead of hindering them with unwanted tax increases. 

I know that the House Small Business Committee and this Subcommittee recognize how critical small business is to the economic 

health of this country. That is why I want to thank my colleagues 

for their commitment to sponsoring various pieces of legislation to 

improve programs that assist entrepreneurs with practical and 

technical skills needed to start and sustain a business. 

As Louis Celli, CEO of the Northeast Veterans Business Resource Center in Boston, put it at a recent Subcommittee hearing 

on this same subject, this Committee has exactly the right focus by 

wanting to interweave these programs together and really force everybody to play in the same sandbox, and by making entrepreneurial development programs more effective, we can be not only 

more responsive to small businesses, but we can also be better 

stewards of taxpayers’ dollars. 

I am please to see my bill and my colleagues’ similar piece of legislation working their way through the legislative process, and I 

look forward to seeing this bill become law. 

With that, I yield back, Mr. Chairman. 

Chairman SHULER. Thank you, sir. 

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

purposes of opening remarks? 

[No response.] 

Chairman SHULER. The first order of business we will consider, 

H.R. 1803. 

[The Bill H.R. 1803 is included in the appendix.] 

Chairman SHULER. That is the Veterans Business Center Act of 

2009, introduced by Representative Nye. 

3 

As of today, more than 130,000 troops have returned from Iraq 

and Afghanistan. Many of these men and women are now pursuing 

entrepreneurship. In fact, veterans already comprise 14 percent of 

all self-employed Americans. Mr. Nye’s legislation gives these men 

and women a chance to become business owners. It does this by establishing a new Veterans Business Center Program. This step will 

provide veterans with dedicated counseling and business training. 

Our soldiers have served our country well and deserve a fair shot 

at the American dream. For that reason this bill has the backing 

of both the American Legion and the VFW. I strongly support this 

legislation. 

Are there any members who wish to be recognized? 

[No response.] 

Chairman SHULER. The Committee will now move to consider 

H.R. 1803. The Clerk will report the title of the bill. 

The CLERK. To amend the Small Business Act to establish a Veterans Business Center Program and for other purposes. 

Chairman SHULER. I ask unanimous consent that the bill in its 

entirety be open for amendments at this point. Does any member 

seek recognition for the purpose of offering an amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is on reporting H.R. 1803 to the full Committee. All in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those opposed, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

In terms of ED Programs, it is not enough to have the proper 

tools in place. We should be certain that small firms can access 

those tools. Representative Thompson’s bill, H.R. 1807, will make 

that happen. 

The Educating Entrepreneurs Through Today’s Technology Act 

provides business owners with critical distance learning tools. 

These resources are particularly useful for businesses in rural 

areas which may not have the same range of services that other 

regions do. 

Through H.R. 1807 entrepreneurs in every corner of the country, 

from Appalachia to East L.A., can access the training and resources 

they need. I urge strong support of this legislation. 

I will recognize Mr. Thompson for his remarks. 

Mr. THOMPSON. Thank you, Mr. Chairman, Mr. Ranking Member. 

Thank you for holding this mark-up today to focus on the Entrepreneurial Development Programs that will strengthen SBA’s capacity to continue to spur economic growth in hard to reach areas 

and underserved areas. 

For many entrepreneurs in my district in order to access resources provided by SPA and small business development centers, 

they have to drive long distances often through some pretty tough 

winters in Pennsylvania. In my rural district, we have learned to 

use our limited resources wisely, and during the hearing for the 

bills we have marked up today, I had the privilege of having a witness from my district, Ms. Donna Kilhoffer, the Program Manager 

4 

for the Community Education Council of Elk and Cameron Counties in Pennsylvania, which provides affordable academic and professional development by partnering with institutions of higher 

learning, along with countless additional partnerships with regional businesses and industry. 

My bill, H.R. 1807, will assist distance learning programs like 

those serviced by the Community Education Council in order to enhance the potential of existing and soon to be entrepreneurs. H.R. 

1807 will allow third parties the opportunity to provide high quality distance training for a modest competitive grants process administered by the SBA. 

I appreciate the work the Committee has done on this bill, and 

I would like to thank the bill’s co-sponsors, Mr. Luetkemeyer, Mr. 

Connolly, and Mr. Pitts, and Mr. Chairman, I encourage my colleagues in the Subcommittee to support this smart government 

proposal. 

And with that I yield back the balance of my time. 

Chairman SHULER. Thank you, sir. 

Do any other members wish to be recognized on H.R. 1807? 

[No response.] 

Chairman SHULER. The Committee will now move to consider 

H.R. 1807. 

[The Bill H.R. 1807 is included in the appendix.] 

Chairman SHULER. The Clerk will report the title of the bill. 

The CLERK. To promote distance learning to potential and existing entrepreneurs and for other purposes. 

Chairman SHULER. I ask unanimous consent that the bill in its 

entirety be open for amendments at this time. 

Does any member seek to be recognized for the purpose of offering an amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is on reporting H.R. 1807 to the full Committee. All those in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those opposed, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

Entrepreneurship is a proven means of fighting poverty. It can 

also revitalize struggling communities across this country. Nowhere 

is it more important than within the native American populations. 

With that in mind, Representative Kirkpatrick has introduced 

H.R. 1834, the Native American Business Development Enhancement Act of 2009. Native American businesses are growing at an 

impressive rate of 84 percent. Clearly, we would like this trend to 

continue. For that to happen entrepreneurs must have access to 

critical counseling and technical assistant resources. 

H.R. 1834 contains provisions for both. I urge its support. 

I will now yield to the bill’s sponsor, Representative Kirkpatrick, 

for her remarks. 

Ms. KIRKPATRICK. Thank you, Mr. Chairman, for this opportunity 

to consider my bill, the Native American Business Development 

Enhancement Act. 

5 

Our tribal communities make do with less even when times are 

good, and in these tough economic times, we can do more to help 

them build their communities and develop their local economies. 

This bill will accomplish that by expanding the assistance available 

to Indian, Alaska Native, and Native Hawaiian small business entrepreneurs under the Small Business Act by providing essential 

training and assistance and making it easier to get the capital they 

need to start up or grow their businesses. 

The measure will be a boon to our native populations, helping to 

grow their economies and creating new jobs. 

And I yield back. 

Chairman SHULER. Thank you, Ms. Kirkpatrick. 

Are there any other members who wish to be recognized on H.R. 

1834? 

[No response.] 

Chairman SHULER. The Committee will now move to consider 

H.R. 1834. 

[The Bill H.R. 1834 is included in the appendix.] 

Chairman SHULER. The Clerk will report the title of the bill. 

The CLERK. To amend the Small Business Act to expand and improve the assistance provided to Indian tribe members, Alaska Natives, and Native Hawaiians, and for other purposes. 

Chairman SHULER. I ask unanimous consent that this bill in its 

entirety be open for amendments at this time. 

Does any member seek recognition for the purpose of offering an 

amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is reporting H.R. 1834 to the full Committee. All in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those opposed, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

The next piece of legislation that we will consider is H.R. 1838, 

the Women’s Business Center Act, introduced by Representative 

Fallin. Women’s business centers go a long way to fostering entrepreneurship. H.R. 1834 will provide these organizations with needed stability. 

Through technical assistance and counseling, the bill will also 

renew the program’s original mission, balancing low income communities. We often talk about moving women from welfare to work. 

Women business centers can move them from welfare to entrepreneurship. 

This legislation will build a program with a strong track record 

of encouraging entrepreneurship, and I urge its support. 

Is there any member that wishes to be recognized on H.R. 1838? 

[No response.] 

Chairman SHULER. The Committee will now move to consider 

H.R. 1838. 

[The bill H.R. 1838 is included in the appendix.] 

Chairman SHULER. The Clerk will report the title of the bill. 

6 

The CLERK. To amend the Small Business Act to modify certain 

provisions relating to women’s business centers and for other purposes. 

Chairman SHULER. I ask unanimous consent that the bill in its 

entirety be open for amendments at this time. Does any member 

seek recognition for the purpose of offering an amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is on reporting H.R. 1838 to the full Committee. All those in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those opposed, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

Mentoring programs are vital resources not just for new entrepreneurs, but for experienced business owners looking to grow. The 

next piece of legislation recognizes that fact. H.R. 1839, or the 

SCORE Act, modernizes networking and mentoring within the 

SCORE Program. 

The bill introduced by Representative Buchanan establishes 

benchmarks for measuring program efficiency. It does this by qualifying the success of entrepreneurs who participate in its initiative. 

It also establishes standards for mentoring. This bill will insure 

the highest quality of service for our small businesses and I strongly urge its support. 

Are there any members who wish to be recognized on H.R. 1839? 

[No response.] 

Chairman SHULER. The Committee will now move to consider 

H.R. 1839. 

[The Bill H.R. 1839 is included in the appendix.] 

Chairman SHULER. The Clerk will report the title of the bill. 

The CLERK. To amend the Small Business Act to improve 

SCORE and for other purposes. 

Chairman SHULER. I ask unanimous consent that the bill in its 

entirety be open for amendments at this time. Does any member 

seek recognition for the purpose of offering an amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is on reporting H.R. 1839 to the full Committee. All those in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those opposed, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

The next bill we will consider is H.R. 1842, the Expanding Entrepreneurship Act of 2009, introduced by the Ranking Member Mr. 

Luetkemeyer. This legislation streamlines SBA’s ED profiling by 

increasing coordination and planning. Even more importantly, it focuses on job creation. 

The economy may be struggling, but these programs can help 

new businesses get off the ground, allowing them to create jobs and 

spur growth. 

7 

I urge strong support of this bill, and I commend the Ranking 

Member for his efforts of drafting this legislation. 

Are there any members who wish to be recognized on H.R. 1842? 

[No response.] 

Chairman SHULER. The Committee now moves to consider the 

bill H.R. 1842. 

[The Bill H.R. 1842 is included in the appendix.] 

Chairman SHULER. The Clerk will report the title of the bill. 

The CLERK. To amend the Small Business Act to improve the 

Small Business Administration’s Entrepreneurial Development 

Programs and for other purposes. 

Chairman SHULER. I ask unanimous consent that this bill in its 

entirety be open for amendments at this time. Does any member 

seek recognition for the purpose of offering an amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is on reporting H.R. 1842 to the full Committee. All those in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those oppose, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

As our last piece of business, we will consider H.R. 1845. This 

bill, the Small Business Development Center Modernization Act of 

2009, has been introduced by Representative Schock. Entrepreneurial assistance is critical for small business tools. In fact, businesses that receive this kind of help are twice as likely to succeed. 

Though Mr. Schock’s bill will reform the current SBDC Program, 

in doing so it will not only provide existing initiatives, but it will 

help firms address new challenges. 

While focused on these types of concerns, the legislation provides 

much needed tools for entrepreneurs. It helps them remain competitive in today’s market. It also helps them adapt to the challenges of the economic climate today. 

I urge the members’ support of this legislation. Is there any 

member who wishes to be recognized on H.R. 1845? 

[No response.] 

Chairman SHULER. The Committee will now move to consider 

H.R. 1845.[The Bill H.R. 1845 is included in the appendix.] 

Chairman SHULER. The Clerk will report the title of the bill. 

The CLERK. To amend the Small Business Act to modernize 

Small Business Development Centers and for other purposes. 

Chairman SHULER. I ask unanimous consent that the bill in its 

entirety be open for amendments at this time. Does any member 

wish to seek recognition for the purpose of offering an amendment? 

[No response.] 

Chairman SHULER. Seeing no amendments, the question is on reporting H.R. 1849 to the full Committee. All those in favor say aye. 

[Chorus of ayes.] 

Chairman SHULER. Those opposed, no. 

[No response.] 

Chairman SHULER. The ayes have it. The bill is adopted and reported to the full Committee. 

8 

This concludes the Subcommittee’s business for today. I ask 

unanimous consent that the Subcommittee is authorized to correct 

section numbers, punctuation, cross-references, and make necessary technical and conforming corrections on the bills considered 

today. 

Without objection, so ordered. 

This mark-up is adjourned. 

[Whereupon, 10:28 a.m., the Subcommittee meeting was concluded.] 

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