IB 
Union Calendar No. 118 
109TH CONGRESS 
1ST SESSION H. R. 3207 
[Report No. 109–205] 
To direct the Administrator of the Small Business Administration to establish 
a pilot program to make grants to eligible entities for the development 
of peer learning opportunities for second-stage small business concerns. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2005 
Mr. FITZPATRICK of Pennsylvania introduced the following bill; which was 
referred to the Committee on Small Business 
JULY 28, 2005 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 12, 2005] 
A BILL 
To direct the Administrator of the Small Business Adminis-
tration to establish a pilot program to make grants to 
eligible entities for the development of peer learning op-
portunities for second-stage small business concerns. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Second-Stage Small 
Business Development Act of 2005’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to establish a four-year pilot 
program to— 
(1) identify second-stage small business concerns 
that have the capacity for significant business growth 
and job creation; 
(2) facilitate business growth and job creation by 
second-stage small business concerns through the de-
velopment of peer learning opportunities; 
(3) utilize the network of small business develop-
ment centers to expand access to peer learning oppor-
tunities for second-stage small business concerns; and 
(4) assist businesses owned by minority individ-
uals, service-disabled veterans, and women. 
SEC. 3. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator shall estab-
lish and carry out a pilot program (referred to in this Act 
as the ‘‘pilot program’’) to make grants to eligible entities 
for the development of peer learning opportunities for sec-
ond-stage small business concerns in accordance with this 
Act. 
(b) SELECTION OF GRANT RECIPIENTS.—
(1) IN GENERAL.—From the eligible entities lo-
cated in the States in each of the 10 regions under 
paragraph (3), the Administrator shall select 2 eligi-
ble entities to receive grants. 
(2) ELIGIBLE ENTITIES.—In this Act, the term 
‘‘eligible entity’’ means an entity that— 
(A) is eligible to receive funding under sec-
tion 21 of the Small Business Act (15 U.S.C. 
648); and 
(B) submits to the Secretary an application 
that includes— 
(i) a plan to— 
(I) offer peer learning opportuni-
ties to second-stage small business con-
cerns; and 
(II) transition to providing such 
opportunities using non-governmental 
funding; and 
(ii) any other information and assur-
ances that the Secretary may require. 
(3) CRITERIA FOR SELECTION.— The Adminis-
trator shall evaluate the plans submitted by the eligi-
ble entities under paragraph (2) and select eligible en-
tities to receive grants on the basis of the merit of 
such plans.
(4) REGIONS DESCRIBED.—The regions referred 
to in paragraph (1) are as follows: 
(A) REGION 1.—Maine, Massachusetts, New 
Hampshire, Connecticut, Vermont, and Rhode 
Island. 
(B) REGION
2.—New York, New Jersey, 
Puerto Rico, and the Virgin Islands. 
(C) REGION 3.— Pennsylvania, Maryland, 
West Virginia, Virginia, the District of Colum-
bia, and Delaware. 
(D) REGION 4.—Georgia, Alabama, North 
Carolina, South Carolina, Mississippi, Florida, 
Kentucky, and Tennessee. 
(E) REGION
5.—Illinois, Ohio, Michigan, 
Indiana, Wisconsin, and Minnesota. 
(F) REGION 6.—Texas, New Mexico, Arkan-
sas, Oklahoma, and Louisiana. 
(G) REGION 7.—Missouri, Iowa, Nebraska, 
and Kansas. 
(H) REGION 8.—Colorado, Wyoming, North 
Dakota, South Dakota, Montana, and Utah. 
(I) REGION 9.—California, Guam, Hawaii, 
Nevada, Arizona, and American Samoa. 
(J) 
REGION
10.—Washington, 
Alaska, 
Idaho, and Oregon.
(5) CONSULTATION.—If small business develop-
ment centers have formed an association to pursue 
matters of common concern as authorized under sec-
tion 21(a)(3)(A) of the Small Business Act (15 U.S.C. 
648(a)(3)(A)), the Administrator shall consult with 
such association and give substantial weight to the 
recommendations of such association in selecting the 
grant recipients. 
(6) DEADLINE FOR INITIAL SELECTIONS.—The 
Administrator shall make selections under paragraph 
(1) not later than 60 days after the promulgation of 
regulations under section 4. 
(c) USE OF FUNDS.—An eligible entity that receives 
a grant under the pilot program shall use the grant to— 
(1) identify second-stage small business concerns 
in the service delivery areas of the eligible entity; and 
(2) establish and conduct peer learning opportu-
nities for such second-stage small business concerns. 
(d) AMOUNT OF GRANT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), a grant under the pilot program shall be 
in an amount that does not exceed the product ob-
tained by multiplying—
(A) the amount made available for grants 
under the pilot program for the fiscal year for 
which the grant is made; and 
(B) the ratio that the population of the 
State in which the eligible entity is located bears 
to the aggregate population the States in which 
eligible entities receiving grants for that fiscal 
year are located. 
(2) MINIMUM
AMOUNT
OF
GRANT.—A grant 
under the pilot program shall be in an amount not 
less than $50,000. 
(e) MATCHING REQUIREMENT.—As a condition of a 
grant under the pilot program, the Administrator shall re-
quire that a matching amount be provided from sources 
other than the Federal Government that— 
(1) is equal to the amount of the grant, or in the 
case of an eligible entity that is a community college, 
historically Black college, Hispanic-serving institu-
tion, or other minority institution, is equal to 50 per-
cent of the amount of the grant; 
(2) is not less than 50 percent cash; 
(3) is not more than 50 percent comprised of in-
direct costs and in-kind contributions; and 
(4) does not include any indirect cost or in-kind 
contribution derived from any Federal program.
(f) QUARTERLY REPORT TO ADMINISTRATOR.— 
(1) IN GENERAL.—Each eligible entity that re-
ceives a grant under the pilot program shall submit 
to the Administrator a quarterly report that in-
cludes— 
(A) a summary of the peer learning oppor-
tunities established by the eligible entity using 
grant funds; 
(B) the number of second-stage small busi-
ness concerns assisted using grant funds; and 
(C) in the case of an eligible entity that re-
ceives a grant for a second fiscal year or any 
subsequent fiscal year— 
(i) any measurable economic impact 
data resulting from the peer learning oppor-
tunities established using grant funds; and 
(ii) the number of peer learning oppor-
tunities established by the eligible entity 
that have transitioned from operating using 
Government funds to operating without 
using Government funds. 
(2) FORM
OF
REPORT.—The report required 
under paragraph (1) shall be transmitted in elec-
tronic form.
(g) DATA REPOSITORY
AND CLEARINGHOUSE.—In 
carrying out the pilot program, the Administrator shall act 
as the repository of and clearinghouse for data and infor-
mation submitted by the eligible entities. 
(h) ANNUAL REPORT ON PILOT PROGRAM.—Not later 
than November 1 of each year, the Administrator shall sub-
mit to the President and to Congress, a report evaluating 
the success of the pilot program during the preceding fiscal 
year, which shall include the following: 
(1) A description of the types of peer learning 
opportunities provided with grant funds. 
(2) The number of second-stage small business 
concerns assisted with grant funds. 
(3) For fiscal year 2007 and each subsequent fis-
cal year of the pilot program— 
(A) data regarding the economic impact of 
the peer learning opportunities provided with 
grant funds; and 
(B) the number of peer learning opportuni-
ties established by grant recipients that have 
transitioned from operating using Government 
funds to operating without using Government 
funds. 
(i) PRIVACY REQUIREMENT.—
(1) IN GENERAL.—A small business development 
center, consortium of small business development cen-
ters, or contractor or agent of a small business devel-
opment center shall not disclose the name, address, or 
telephone number of any individual or small business 
concern receiving assistance under this section with-
out the consent of such individual or small business 
concern, unless— 
(A) the Administrator is ordered to make 
such a disclosure by a court in any civil or 
criminal enforcement action initiated by a Fed-
eral or State agency; or 
(B) the Administrator considers such a dis-
closure to be necessary for the purpose of con-
ducting a financial audit of a small business de-
velopment center, but a disclosure under this 
subparagraph shall be limited to the information 
necessary for such audit. 
(2) ADMINISTRATOR USE OF INFORMATION.—The 
privacy requirement under this subsection shall not— 
(A) restrict Administrator access to pro-
gram activity data; or 
(B) prevent the Administrator from using 
client information to conduct client surveys.
(j) EVALUATION AND REPORT.—Not later than 3 years 
after the establishment of the pilot program, the Comptroller 
General of the United States shall— 
(1) conduct an evaluation of the pilot program; 
and 
(2) transmit to Congress and the Administrator 
a report containing the results of such evaluation 
along with any recommendations as to whether the 
pilot program, with or without modification, should 
be extended to include the participation of all small 
business development centers. 
(k) TERMINATION.—The pilot program shall terminate 
on September 30, 2009. 
SEC. 4. REGULATIONS. 
After providing notice and an opportunity for com-
ment and after consulting with the association described in 
section 3(b)(5) (if any such association has been formed), 
the Administrator shall promulgate final regulations to 
carry out this Act, including regulations that establish— 
(1) standards relating to the establishment and 
conduct of peer learning opportunities to be provided 
by grant recipients, including the number of individ-
uals that may participate in a peer group that is 
part of a peer learning opportunity;
(2) standards relating to the educational, tech-
nical, and professional competency of any facilitator 
who delivers peer learning opportunities under the 
pilot program; and 
(3) requirements for transitioning peer learning 
opportunities funded under the pilot program to non- 
governmental funding. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) The term ‘‘Administrator’’ means the Admin-
istrator of the Small Business Administration. 
(2) The term ‘‘peer learning opportunities’’ 
means formally organized peer groups of owners, 
presidents and chief executive officers in non-com-
peting second-stage business concerns, meeting regu-
larly with a professionally trained facilitator. 
(3) The term ‘‘second-stage small business con-
cern’’ means a small business concern that— 
(A) has experienced high growth dem-
onstrated by— 
(i) an average annual revenue or em-
ployee growth rate of at least 15 percent 
during the preceding 3 years; or 
(ii) any 3 of the following:
(I) Owning proprietary intellec-
tual property. 
(II) Addressing an underserved or 
growing market. 
(III) Having a sustainable com-
petitive advantage. 
(IV) Exporting goods or services 
outside of its community. 
(V) Having a product or service 
that is scalable to a large market. 
(VI) Ownership by minority indi-
viduals, service-disabled veterans, or 
women; and 
(B) does not exceed the size standard for the 
North American Industrial Classification System 
code of such concern, as established pursuant to 
section 3(a) of the Small Business Act (15 
U.S.C. 632(a)). 
(4) The term ‘‘small business concern’’ has the 
meaning given that term under section 3 of the Small 
Business Act (15 U.S.C. 632). 
(5) The term ‘‘State’’ means each of the several 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Virgin Islands, Guam, and Amer-
ican Samoa.
(6) The term ‘‘community college’’ has the mean-
ing given that term in section 3301(3) of the Higher 
Education Act of 1965 (20 U.S.C. 7011(3)). 
(7) The term ‘‘historically Black college’’ means 
a part B institution, as defined in section 322(2) of 
the Higher Education Act of 1965 (20 U.S.C. 
1061(2)). 
(8) The term ‘‘Hispanic-serving institution’’ has 
the meaning given that term in section 502(a)(5) of 
the Higher Education Act of 1965 (20 U.S.C. 
1101a(a)(5)). 
(9) The term ‘‘minority institution’’ has the 
meaning given that term in section 365(3) of the 
Higher Education Act of 1965 (20 U.S.C. 1067k(3)). 
SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this Act $1,500,000 for each of fiscal 
years 2006 through 2009. 
(b) LIMITATION ON USE OF OTHER FUNDS.—The Ad-
ministrator shall carry out this Act using only amounts 
appropriated in advance specifically for the purpose of car-
rying out this Act.
Union Calendar No. 118 
109TH CONGRESS 
1ST SESSION 
H. R. 3207 
[Report No. 109–205] 
A BILL 
To direct the Administrator of the Small Business 
Administration to establish a pilot program to 
make grants to eligible entities for the develop-
ment of peer learning opportunities for second- 
stage small business concerns. 
JULY 28, 2005 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed