‘‘(8) The term ‘maximum tax liability’ means 
the amount of income allocated to each partner, 
shareholder, or member (including an allocation to 
the Administration as if it were a taxpayer) for Fed-
eral income tax purposes in the income tax return 
filed or to be filed by the company with respect to 
the fiscal year of the company immediately pre-
ceding such distribution, multiplied by the highest 
combined marginal Federal and State income tax 
rates for corporations or individuals, whichever is 
higher, on each type of income included in such re-
turn. 
‘‘(9) The term ‘State income tax’ means the in-
come tax of the State where the company’s principal 
place of business is located.’’. 
TITLE III—ENTREPRENEURSHIP 
Subtitle A—National Small 
Business Regulatory Assistance 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘National Small 
Business Regulatory Assistance Act’’. 
SEC. 302. PURPOSE. 
The purpose of this subtitle is to establish a program 
to— 
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(1) provide confidential assistance to small 
business concerns; 
(2) provide small business concerns with the in-
formation necessary to improve their rate of compli-
ance with Federal and State regulations; 
(3) create a partnership among Federal agen-
cies to increase outreach efforts to small business 
concerns with respect to regulatory compliance; 
(4) provide a mechanism for unbiased feedback 
to Federal agencies on the regulatory environment 
for small business concerns; and 
(5) utilize the service delivery network of Small 
Business Development Centers to improve access of 
small business concerns to programs to assist them 
with regulatory compliance. 
SEC. 303. DEFINITIONS. 
In this subtitle, the definitions set forth in section 
37(a) of the Small Business Act (as added by section 304 
of this subtitle) shall apply. 
SEC. 304. SMALL BUSINESS REGULATORY ASSISTANCE PRO-
GRAM. 
The Small Business Act (15 U.S.C. 637 et seq.) is 
amended— 
(1) by redesignating section 37 as section 99; 
and 
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(2) by inserting after section 36 the following 
new section: 
‘‘SEC. 37. SMALL BUSINESS REGULATORY ASSISTANCE PRO-
GRAM. 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) ASSOCIATION.—The term ‘Association’ 
means the association recognized by the Adminis-
trator of the Small Business Administration under 
section 21(a)(3)(A). 
‘‘(2) PARTICIPATING SMALL BUSINESS DEVEL-
OPMENT
CENTER.—The term ‘participating Small 
Business Development Center’ means a Small Busi-
ness Development Center participating in the pro-
gram. 
‘‘(3) PROGRAM.—The term ‘program’ means 
the regulatory assistance program established under 
this section. 
‘‘(4) REGULATORY COMPLIANCE ASSISTANCE.— 
The term ‘regulatory compliance assistance’ means 
assistance provided by a Small Business Develop-
ment Center to a small business concern to enable 
the concern to comply with Federal regulatory re-
quirements. 
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‘‘(5) SMALL
BUSINESS
DEVELOPMENT
CEN-
TER.—The term ‘Small Business Development Cen-
ter’ means a Small Business Development Center 
described in section 21. 
‘‘(6) STATE.—The term ‘State’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, and American Samoa. 
‘‘(b) AUTHORITY.—In accordance with this section, 
the Administrator shall establish a program to provide 
regulatory compliance assistance to small business con-
cerns through selected Small Business Development Cen-
ters, the Association of Small Business Development Cen-
ters, and Federal compliance partnership programs. 
‘‘(c) SMALL BUSINESS DEVELOPMENT CENTERS.— 
‘‘(1) IN GENERAL.—In carrying out the pro-
gram, the Administrator shall enter into arrange-
ments with selected Small Business Development 
Centers under which such Centers shall provide— 
‘‘(A) access to information and resources, 
including current Federal and State nonpuni-
tive compliance and technical assistance pro-
grams similar to those established under section 
507 of the Clean Air Act (42 U.S.C. 7661f); 
‘‘(B) training and educational activities; 
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‘‘(C) confidential, free-of-charge, one-on- 
one, in-depth counseling to the owners and op-
erators of small business concerns regarding 
compliance with Federal and State regulations, 
as long as such counseling is not considered to 
be the practice of law in a State in which a 
Small Business Development Center is located 
or in which such counseling is conducted; 
‘‘(D) technical assistance; 
‘‘(E) referrals to experts and other pro-
viders of compliance assistance who meet such 
standards for educational, technical, and profes-
sional competency as are established by the Ad-
ministrator; and 
‘‘(F) access to the Internet and training on 
Internet use, including the use of the Internet 
website established by the Administrator under 
subsection (d)(1)(C). 
‘‘(2) REPORTS.— 
‘‘(A) IN GENERAL.—Each selected Small 
Business Development Center shall transmit to 
the Administrator a quarterly report that in-
cludes— 
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‘‘(i) a summary of the regulatory com-
pliance assistance provided by the center 
under the program; and 
‘‘(ii) any data and information ob-
tained by the center from a Federal agency 
regarding regulatory compliance that the 
agency intends to be disseminated to small 
business concerns. 
‘‘(B) ELECTRONIC FORM.—Each report re-
quired under subparagraph (A) shall be trans-
mitted in electronic form. 
‘‘(C) INTERIM REPORTS.—A participating 
Small Business Development Center may trans-
mit to the Administrator such interim reports 
as the Center considers appropriate. 
‘‘(d) DATA REPOSITORY AND CLEARINGHOUSE.— 
‘‘(1) IN GENERAL.—In carrying out the pro-
gram, the Administrator shall— 
‘‘(A) act as the repository of and clearing-
house for data and information submitted by 
Small Business Development Centers; 
‘‘(B) submit to the President, the Com-
mittee on Small Business and Entrepreneurship 
of the Senate, and the Committee on Small 
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Business of the House of Representatives an 
annual report that includes— 
‘‘(i) a description of the types of as-
sistance provided by participating Small 
Business Development Centers under the 
program; 
‘‘(ii) data regarding the number of 
small business concerns that contacted 
participating Small Business Development 
Centers regarding assistance under the 
program; 
‘‘(iii) data regarding the number of 
small business concerns assisted by partici-
pating Small Business Development Cen-
ters under the program; 
‘‘(iv) data and information regarding 
outreach activities conducted by partici-
pating Small Business Development Cen-
ters under the program, including any ac-
tivities conducted in partnership with Fed-
eral agencies; 
‘‘(v) data and information regarding 
each case known to the Administrator in 
which one or more Small Business Devel-
opment Centers offered conflicting advice 
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or information regarding compliance with a 
Federal or State regulation to one or more 
small business concerns; and 
‘‘(vi) any recommendations for im-
provements in the regulation of small busi-
ness concerns; 
‘‘(C) establish an Internet website that— 
‘‘(i) provides access to Federal, State, 
academic, and industry association Inter-
net websites containing industry-specific 
regulatory compliance information that the 
Administrator deems potentially useful to 
small businesses attempting to comply with 
Federal regulations; and 
‘‘(ii) arranges such Internet websites 
in industry-specific categories. 
‘‘(e) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—A Small Business Develop-
ment Center shall be eligible to receive assistance 
under the program only if the center is certified 
under section 21(k)(2). 
‘‘(2) WAIVER.—With respect to a Small Busi-
ness Development Center seeking assistance under 
the program, the administrator may waive the cer-
tification requirement set forth in paragraph (1) if 
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the Administrator determines that the center is 
making a good faith effort to obtain such certifi-
cation. 
‘‘(3) EFFECTIVE
DATE.—The restriction de-
scribed in paragraph (1) shall not apply to any 
Small Business Development Center before October 
1, 2005. 
‘‘(f) SELECTION
OF PARTICIPATING STATE PRO-
GRAMS.— 
‘‘(1) ESTABLISHMENT OF PROGRAM.—In con-
sultation with the Association and giving substantial 
weight to the Association’s recommendations, the 
Administrator shall select the Small Business Devel-
opment Center programs of 2 States from each of 
the following groups of States to participate in the 
program: 
‘‘(A) Group 1: Maine, Massachusetts, New 
Hampshire, Connecticut, Vermont, and Rhode 
Island. 
‘‘(B) Group 2: New York, New Jersey, 
Puerto Rico, and the Virgin Islands. 
‘‘(C) Group 3: Pennsylvania, Maryland, 
West Virginia, Virginia, the District of Colum-
bia, and Delaware. 
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‘‘(D) Group 4: Georgia, Alabama, North 
Carolina, South Carolina, Mississippi, Florida, 
Kentucky, and Tennessee. 
‘‘(E) Group 5: Illinois, Ohio, Michigan, In-
diana, Wisconsin, and Minnesota. 
‘‘(F) Group 6: Texas, New Mexico, Arkan-
sas, Oklahoma, and Louisiana. 
‘‘(G) Group 7: Missouri, Iowa, Nebraska, 
and Kansas. 
‘‘(H) Group 8: Colorado, Wyoming, North 
Dakota, South Dakota, Montana, and Utah. 
‘‘(I) Group 9: California, Guam, Hawaii, 
Nevada, and Arizona. 
‘‘(J) Group 10: Washington, Alaska, 
Idaho, and Oregon. 
‘‘(2) DEADLINE
FOR
INITIAL
SELECTIONS.— 
The Administrator shall make selections under para-
graph (1) not later than 60 days after promulgation 
of regulations under section 305 of the National 
Small Business Regulatory Assistance Act. 
‘‘(3) ADDITIONAL
SELECTIONS.—Not earlier 
than the date 3 years after the date of the enact-
ment of this paragraph, the Administrator may se-
lect Small Business Development Center programs 
of States in addition to those selected under para-
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graph (1). The Administrator shall consider the ef-
fect on the programs selected under paragraph (1) 
before selecting additional programs under this 
paragraph. 
‘‘(4) COORDINATION
TO
AVOID
DUPLICATION 
WITH
OTHER
PROGRAMS.—In selecting programs 
under this subsection, the Administrator shall give a 
preference to Small Business Development Center 
programs that have a plan for consulting with Fed-
eral and State agencies to ensure that any assist-
ance provided under this section is not duplicated by 
an existing Federal or State program. 
‘‘(g) MATCHING NOT REQUIRED.—Subparagraphs 
(A) and (B) of section 21(a)(4) shall not apply to assist-
ance made available under the program. 
‘‘(h) DISTRIBUTION OF GRANTS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), each State program selected to receive a 
grant under subsection (f) in a fiscal year shall be 
eligible to receive a grant in an amount not to ex-
ceed the product obtained by multiplying— 
‘‘(A) the amount made available for grants 
under this section for the fiscal year; and 
‘‘(B) the ratio that the population of the 
State bears to the population of all the States 
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with programs selected to receive grants under 
subsection (f) for the fiscal year. 
‘‘(2) 
MINIMUM
AMOUNT.—The 
minimum 
amount that a State program selected to receive a 
grant under subsection (f) shall be eligible to receive 
under this section for any fiscal year shall be 
$200,000. The Administrator shall reduce the 
amount described in paragraph (1) as appropriate to 
carry out the purposes of this paragraph and sub-
section (i)(2). 
‘‘(i) EVALUATION AND REPORT.—Not later than 3 
years after the establishment of the program, the Comp-
troller General of the United States shall conduct an eval-
uation of the program and shall transmit to the Adminis-
trator, the Committee on Small Business and Entrepre-
neurship of the Senate, and the Committee on Small Busi-
ness of the House of Representatives a report containing 
the results of the evaluation along with any recommenda-
tions as to whether the program, with or without modifica-
tion, should be extended to include the participation of all 
Small Business Development Centers. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
there is authorized to be appropriated to carry out 
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this section $5,000,000 for fiscal year 2008 and 
each subsequent fiscal year. 
‘‘(2) AMOUNTS AUTHORIZED ONLY IF SECTION 
21 FULLY FUNDED.—No funds are authorized to be 
appropriated to carry out this section for a fiscal 
year unless the program level authorized to be ap-
propriated to carry out section 21 is fully funded for 
that fiscal year. 
‘‘(3) LIMITATION ON USE OF OTHER FUNDS.— 
The Administrator shall carry out the program only 
with amounts appropriated in advance specifically to 
carry out this section.’’. 
SEC. 305. PROMULGATION OF REGULATIONS. 
After providing notice and an opportunity for com-
ment and after consulting with the Association (but not 
later than 180 days after the date of the enactment of 
this Act), the Administrator shall promulgate final regula-
tions to carry out this subtitle, including regulations that 
establish— 
(1) priorities for the types of assistance to be 
provided under the program; 
(2) standards relating to educational, technical, 
and support services to be provided by participating 
Small Business Development Centers; 
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(3) standards relating to any national service 
delivery and support function to be provided by the 
Association under the program; 
(4) standards relating to any work plan that 
the Administrator may require a participating Small 
Business Development Center to develop; and 
(5) standards relating to the educational, tech-
nical, and professional competency of any expert or 
other assistance provider to whom a small business 
concern may be referred for compliance assistance 
under the program. 
Subtitle B—Vocational and Tech-
nical Entrepreneurship Devel-
opment 
SEC. 311. SHORT TITLE. 
This subtitle may be cited as the ‘‘Vocational and 
Technical Entrepreneurship Development Act’’. 
SEC. 312. VOCATIONAL AND TECHNICAL ENTREPRENEUR-
SHIP DEVELOPMENT PROGRAM. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended by inserting after section 
37 (as added by section 304) the following new section: 
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‘‘SEC. 38. VOCATIONAL AND TECHNICAL ENTREPRENEUR-
SHIP DEVELOPMENT PROGRAM. 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) ASSOCIATION.—The term ‘Association’ 
means the association of small business development 
centers recognized under section 21(a)(3)(A). 
‘‘(2) PROGRAM.—The term ‘program’ means 
the program established under subsection (b). 
‘‘(3) SMALL
BUSINESS
DEVELOPMENT
CEN-
TER.—The term ‘small business development center’ 
means a small business development center described 
in section 21. 
‘‘(4) STATE
SMALL
BUSINESS
DEVELOPMENT 
CENTER.—The term ‘State small business develop-
ment center’ means a small business development 
center from each State selected by the Adminis-
trator, in consultation with the Association and giv-
ing substantial weight to the Association’s rec-
ommendations, to carry out the program on a state-
wide basis in such State. 
‘‘(b) ESTABLISHMENT.—In accordance with this sec-
tion, the Administrator shall establish a program under 
which the Administrator shall make grants to State small 
business development centers to enable such centers to 
provide, on a statewide basis, technical assistance to sec-
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ondary schools, postsecondary vocational schools, or tech-
nical schools, for the development and implementation of 
curricula designed to promote vocational and technical en-
trepreneurship. 
‘‘(c) GRANT AMOUNT.— 
‘‘(1) MINIMUM
GRANT.—Each grant awarded 
by the Administrator under the program shall be in 
an amount not less than $200,000. 
‘‘(2) NO MATCHING REQUIREMENT.—The Ad-
ministrator shall not require, as a condition of re-
ceiving a grant under this section, that the applicant 
provide a matching amount, either in cash or as in- 
kind contributions. 
‘‘(d) APPLICATION.—Each State small business de-
velopment center seeking a grant under the program shall 
submit to the Administrator an application in such form 
as the Administrator may require. The application shall 
include information regarding the applicant’s goals and 
objectives for the educational programs to be assisted. 
‘‘(e) REPORT TO ADMINISTRATOR.—As a condition of 
each grant awarded under the program, the Administrator 
shall require the recipient to transmit to the Adminis-
trator, not later than 18 months after the date of receipt 
of the grant, a report describing how the grant funds were 
used. 
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‘‘(f) 
COOPERATIVE
AGREEMENTS
AND
CON-
TRACTS.—The Administrator may enter into a cooperative 
agreement or contract with any State small business devel-
opment center receiving a grant under this section to pro-
vide additional assistance that furthers the purposes of 
this section. 
‘‘(g) EVALUATION
OF PROGRAM.—Not later than 
March 31, 2010, the Administrator shall transmit to Con-
gress a report containing an evaluation of the program. 
‘‘(h) CLEARINGHOUSE.—The Association shall act as 
a clearinghouse of information and expertise regarding vo-
cational and technical entrepreneurship education pro-
grams. In each fiscal year in which grants are made under 
the program, the Administrator shall provide additional 
assistance to the Association to carry out the functions 
described in this subsection. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$7,000,000 for each of fiscal years 2008 through 2010. 
Such sums shall remain available until expended. 
‘‘(j) FUNDING LIMITATIONS.— 
‘‘(1) NONAPPLICABILITY OF CERTAIN LIMITA-
TIONS.—Subject to paragraph (2), amounts made 
available under this section are in addition to any 
amounts available under section 21(a)(4). 
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‘‘(2) AMOUNTS AUTHORIZED ONLY IF SECTION 
21 FULLY FUNDED.—No funds are authorized to be 
appropriated to carry out this section for a fiscal 
year unless the program level authorized to be ap-
propriated to carry out section 21 is fully funded for 
that fiscal year. 
‘‘(3) LIMITATION ON USE OF FUNDS.—The Ad-
ministrator shall carry out this section using only 
amounts appropriated in advance specifically for the 
purpose of carrying out this section.’’. 
Subtitle C—Native American Small 
Business Development 
SEC. 321. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following: 
(1) Approximately 60 percent of Indian tribe 
members and Alaska Natives live on or adjacent to 
Indian lands, which suffer from an average unem-
ployment rate of 45 percent. 
(2) Indian tribe members and Alaska Natives 
own more than 197,000 businesses and generate 
more than $34,000,000,000 in revenues. The service 
industry accounted for 17 percent of these busi-
nesses (of which 40 percent were engaged in busi-
ness and personal services) and 15.1 percent of their 
total receipts. The next largest was the construction 
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industry (13.9 percent and 15.7 percent, respec-
tively). The third largest was the retail trade indus-
try (7.5 percent and 13.4 percent, respectively). 
(3) The number of businesses owned by Indian 
tribe members and Alaska Natives grew by 84 per-
cent from 1992 to 1997, and their gross receipts 
grew by 179 percent in that period. This is com-
pared to all businesses which grew by 7 percent, and 
their total gross receipts grew by 40 percent, in that 
period. 
(4) The Small Business Development Center 
program is cost effective. Clients receiving long-term 
counseling under the program in 1998 generated ad-
ditional tax revenues of $468,000,000, roughly 6 
times the cost of the program to the Federal Gov-
ernment. 
(5) Using the existing infrastructure of the 
Small Business Development Center program, small 
businesses owned by Indian tribe members, Alaska 
Natives, and Native Hawaiians receiving services 
under the program will have a higher survival rate 
than the average small business not receiving such 
services. 
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(6) Business counseling and technical assist-
ance is critical on Indian lands where similar serv-
ices are scarce and expensive. 
(7) Increased assistance through counseling 
under the Small Business Development Center pro-
gram has been shown to reduce the default rate as-
sociated with lending programs of the Small Busi-
ness Administration. 
(b) PURPOSES.—The purposes of this subtitle are as 
follows: 
(1) To stimulate economies on Indian lands. 
(2) To foster economic development on Indian 
lands. 
(3) To assist in the creation of new small busi-
nesses owned by Indian tribe members, Alaska Na-
tives, and Native Hawaiians and expand existing 
ones. 
(4) To provide management, technical, and re-
search assistance to small businesses owned by In-
dian tribe members, Alaska Natives, and Native Ha-
waiians. 
(5) To seek the advice of local Tribal Councils 
on where small business development assistance is 
most needed. 
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(6) To ensure that Indian tribe members, Alas-
ka Natives, and Native Hawaiians have full access 
to existing business counseling and technical assist-
ance available through the Small Business Develop-
ment Center program. 
SEC. 322. SMALL BUSINESS DEVELOPMENT CENTER AS-
SISTANCE TO INDIAN TRIBE MEMBERS, ALAS-
KA NATIVES, AND NATIVE HAWAIIANS. 
(a) IN GENERAL.—Section 21(a) of the Small Busi-
ness Act (15 U.S.C. 648(a)) is amended by adding at the 
end the following: 
‘‘(8) ADDITIONAL
GRANT
TO
ASSIST
INDIAN 
TRIBE MEMBERS, ALASKA NATIVES, AND NATIVE HA-
WAIIANS.— 
‘‘(A) IN GENERAL.—Any applicant in an 
eligible State that is funded by the Administra-
tion as a Small Business Development Center 
may apply for an additional grant to be used 
solely to provide services described in subsection 
(c)(3) to assist with outreach, development, and 
enhancement on Indian lands of small business 
startups and expansions owned by Indian tribe 
members, Alaska Natives, and Native Hawai-
ians. 
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‘‘(B) ELIGIBLE STATES.—For purposes of 
subparagraph (A), an eligible State is a State 
that has a combined population of Indian tribe 
members, Alaska Natives, and Native Hawai-
ians that comprises at least 1 percent of the 
State’s total population, as shown by the latest 
available census. 
‘‘(C) GRANT APPLICATIONS.—An applicant 
for a grant under subparagraph (A) shall sub-
mit to the Administration an application that is 
in such form as the Administration may re-
quire. The application shall include information 
regarding the applicant’s goals and objectives 
for the services to be provided using the grant, 
including— 
‘‘(i) the capability of the applicant to 
provide training and services to a rep-
resentative number of Indian tribe mem-
bers, Alaska Natives, and Native Hawai-
ians; 
‘‘(ii) the location of the Small Busi-
ness Development Center site proposed by 
the applicant; 
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‘‘(iii) the required amount of grant 
funding needed by the applicant to imple-
ment the program; and 
‘‘(iv) the extent to which the applicant 
has consulted with local Tribal Councils. 
‘‘(D) APPLICABILITY OF GRANT REQUIRE-
MENTS.—An applicant for a grant under sub-
paragraph (A) shall comply with all of the re-
quirements of this section, except that the 
matching funds requirements under paragraph 
(4)(A) shall not apply. 
‘‘(E) MAXIMUM AMOUNT OF GRANTS.—No 
applicant may receive more than $300,000 in 
grants under this paragraph for one fiscal year. 
‘‘(F) REGULATIONS.—After providing no-
tice and an opportunity for comment and after 
consulting with the Association recognized by 
the Administration pursuant to paragraph 
(3)(A) (but not later than 180 days after the 
date of enactment of this paragraph), the Ad-
ministration shall issue final regulations to 
carry out this paragraph, including regulations 
that establish— 
‘‘(i) standards relating to educational, 
technical, and support services to be pro-
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vided by Small Business Development Cen-
ters receiving assistance under this para-
graph; and 
‘‘(ii) standards relating to any work 
plan that the Administration may require a 
Small Business Development Center receiv-
ing assistance under this paragraph to de-
velop. 
‘‘(G) DEFINITIONS.—In this section, the 
following definitions apply: 
‘‘(i) INDIAN
LANDS.—The term ‘In-
dian lands’ has the meaning given the term 
‘Indian country’ in section 1151 of title 18, 
United States Code, the meaning given the 
term ‘Indian reservation’ in section 151.2 
of title 25, Code of Federal Regulations 
(as in effect on the date of enactment of 
this paragraph), and the meaning given 
the term ‘reservation’ in section 4 of the 
Indian Child Welfare Act of 1978 (25 
U.S.C. 1903). 
‘‘(ii) INDIAN TRIBE.—The term ‘In-
dian tribe’ means any band, nation, or or-
ganized group or community of Indians lo-
cated in the contiguous United States, and 
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the Metlakatla Indian Community, whose 
members are recognized as eligible for the 
services provided to Indians by the Sec-
retary of the Interior because of their sta-
tus as Indians. 
‘‘(iii) INDIAN
TRIBE
MEMBER.—The 
term ‘Indian tribe member’ means a mem-
ber of an Indian tribe (other than a Alaska 
Native). 
‘‘(iv) ALASKA
NATIVE.—The term 
‘Alaska Native’ has the meaning given the 
term ‘Native’ in section 3(b) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 
1602(b)). 
‘‘(v) NATIVE
HAWAIIAN.—The term 
‘Native Hawaiian’ means any individual 
who is— 
‘‘(I) a citizen of the United 
States; and 
‘‘(II) a descendant of the aborigi-
nal people, who prior to 1778, occu-
pied and exercised sovereignty in the 
area that now constitutes the State of 
Hawaii. 
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‘‘(vi) TRIBAL
ORGANIZATION.—The 
term ‘tribal organization’ has the meaning 
given that term in section 4(l) of the In-
dian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b(l)). 
‘‘(H) AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to carry out this paragraph $7,000,000 for each 
of fiscal years 2008 through 2010. 
‘‘(I) FUNDING LIMITATIONS.— 
‘‘(i) NONAPPLICABILITY OF CERTAIN 
LIMITATIONS.—Subject to clause (ii), fund-
ing under this paragraph shall be in addi-
tion to the dollar program limitations spec-
ified in paragraph (4). 
‘‘(ii) AMOUNTS AUTHORIZED ONLY IF 
REST OF SECTION 21 FULLY FUNDED.—No 
funds are authorized to be appropriated to 
carry out this paragraph for a fiscal year 
unless the program level authorized to be 
appropriated to carry out the other activi-
ties under this section is fully funded for 
that fiscal year. 
‘‘(iii) 
LIMITATION
ON
USE
OF 
FUNDS.—The Administration may carry 
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out this paragraph only with amounts ap-
propriated in advance specifically to carry 
out this paragraph.’’. 
SEC. 323. STATE CONSULTATION WITH TRIBAL ORGANIZA-
TIONS. 
Section 21(c) of the Small Business Act (15 U.S.C. 
648(c)) is amended by adding at the end the following: 
‘‘(9) ADVICE
OF
LOCAL
TRIBAL
ORGANIZA-
TIONS.—A Small Business Development Center re-
ceiving a grant under this section shall request the 
advice of tribal organization on how best to provide 
assistance to Indian tribe members, Alaska Natives, 
and Native Hawaiians and where to locate satellite 
centers to provide such assistance.’’. 
Subtitle D—Second-Stage Small 
Business Development 
SEC. 331. SHORT TITLE. 
This subtitle may be cited as the ‘‘Second-Stage 
Small Business Development Act’’. 
SEC. 332. PURPOSE. 
The purpose of this subtitle is to establish a four- 
year pilot program to— 
(1) identify second-stage small business con-
cerns that have the capacity for significant business 
growth and job creation; 
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(2) facilitate business growth and job creation 
by second-stage small business concerns through the 
development of peer learning opportunities; and 
(3) utilize the network of small business devel-
opment centers to expand access to peer learning op-
portunities for second-stage small business concerns. 
SEC. 333. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator shall es-
tablish and carry out a pilot program (referred to in this 
subtitle as the ‘‘pilot program’’) to make grants to eligible 
entities for the development of peer learning opportunities 
for second-stage small business concerns in accordance 
with this subtitle. 
(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 subtitle, 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 applica-
tion that includes— 
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(i) a plan to— 
(I) offer peer learning opportuni-
ties to second-stage small business 
concerns; 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 eli-
gible entities under paragraph (2) and select eligible 
entities to receive grants on the basis of the merit 
of such plans. 
(4) REGIONS
DESCRIBED.—The regions re-
ferred 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. 
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(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, Ar-
kansas, 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 con-
sult with such association and give substantial 
weight to the recommendations of such association 
in selecting the grant recipients. 
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(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 334. 
(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 con-
cerns in the service delivery areas of the eligible enti-
ty; and 
(2) establish and conduct peer learning oppor-
tunities for such second-stage small business con-
cerns. 
(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. 
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(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 
institution, or other minority institution, is equal to 
50 percent of the amount of the grant; 
(2) is not less than 50 percent cash; 
(3) is not more than 50 percent comprised of 
indirect 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; 
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(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 op-
portunities established using grant funds; 
and 
(ii) the number of peer learning op-
portunities established by the eligible enti-
ty that have transitioned from operating 
using Government funds to operating with-
out 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 submit to the President and to Congress, a report 
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100 
evaluating the success of the pilot program during the pre-
ceding 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 2009 and each subsequent 
fiscal 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.—The privacy require-
ments that apply under subparagraphs (A) and (B) of sec-
tion 21(a)(7) of the Small Business Act to financial assist-
ance under section 21 of that Act also apply to financial 
assistance under this section. 
(j) EVALUATION AND REPORT.—Not later than 3 
years after the establishment of the pilot program, the 
Comptroller General of the United States shall— 
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101 
(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 termi-
nate on September 30, 2011. 
SEC. 334. REGULATIONS. 
After providing notice and an opportunity for com-
ment and after consulting with the association described 
in section 333(b)(5) (if any such association has been 
formed), the Administrator shall promulgate final regula-
tions to carry out this subtitle, 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 
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