I 
117TH CONGRESS 
2D SESSION 
H. R. 7628 
To increase oversight of and improve programs of the Small Business 
Administration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 28, 2022 
Mr. LUETKEMEYER (for himself, Mr. WILLIAMS of Texas, Mr. STAUBER, Mr. 
MEUSER, Ms. TENNEY, Mr. GARBARINO, Mrs. KIM of California, Ms. 
VAN DUYNE, Mr. DONALDS, Ms. SALAZAR, and Mr. FITZGERALD) intro-
duced the following bill; which was referred to the Committee on Small 
Business 
A BILL 
To increase oversight of and improve programs of the Small 
Business Administration, and for other purposes. 
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 ‘‘Improve Management, 
Programs, Resources, and Oversight for Vital Entre-
preneurs the SBA Act’’ or the ‘‘IMPROVE the SBA Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6211
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
Sec. 3. Definitions. 
TITLE I—SMALL BUSINESS ADMINISTRATION OVERSIGHT 
Sec. 101. Small Business Administration mission statement. 
Sec. 102. Requirement for the Administrator of the Small Business Administra-
tion to appear before Congress and report on certain rec-
ommendations. 
TITLE II—SMALL BUSINESS ADMINISTRATION CAPITAL 
PROGRAMS 
Sec. 201. Prohibition on direct lending. 
Sec. 202. Improvements to disaster lending. 
Sec. 203. Disaster loan program oversight. 
Sec. 204. High risk loan review. 
Sec. 205. Capital Access Program oversight. 
TITLE III—SMALL BUSINESS ADMINISTRATION COUNSELING 
PROGRAMS 
Sec. 301. Appearances before Congress. 
Sec. 302. Assistance for covered concerns in certain programs of the Small 
Business Administration. 
Sec. 303. Inclusion of career and technical education in certain programs of the 
Small Business Administration. 
Sec. 304. Assistance for small businesses affected by supply chain disruptions, 
labor shortages, and cyberattacks. 
Sec. 305. Requirements on use of assistance by resource partners. 
TITLE IV—SMALL BUSINESS ADMINISTRATION CONTRACTING 
PROGRAMS 
Sec. 401. Annual testimony. 
Sec. 402. Improvements to accuracy in Federal small business spending. 
Sec. 403. Strengthening subcontracting. 
TITLE V—SMALL BUSINESS ADMINISTRATION DUPLICATION 
Sec. 501. Eliminate programs duplicating private sector. 
Sec. 502. Entrepreneurial development service limits. 
Sec. 503. Limitation on new pilot programs until Inspector General rec-
ommendations closed. 
TITLE VI—PROHIBITION OF INELIGIBLE USE OF FUNDS 
Sec. 601. Prohibition on certain small business concerns. 
Sec. 602. Use of proceeds. 
TITLE VII—ENSURE ALL SMALL BUSINESSES ARE SERVED 
Sec. 701. Small business concern equal treatment. 
TITLE VIII—INSPECTOR GENERAL OF THE SMALL BUSINESS 
ADMINISTRATION 
Sec. 801. Clarification of the responsibilities of the Administrator with respect 
to the Inspector General of the Small Business Administration. 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
TITLE IX—OFFICE OF ADVOCACY 
Sec. 901. Testimony of the Chief Counsel for Advocacy. 
Sec. 902. Quarterly reports by the Chief Counsel for Advocacy. 
Sec. 903. Amendment to primary functions and duties of the Office of Advo-
cacy of the Small Business Administration. 
TITLE X—SMALL BUSINESS ADMINISTRATION AS A 
REPRESENTATIVE OF SMALL BUSINESSES 
Sec. 1001. Economic headwinds report. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the Small Business Administration. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(3) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
TITLE I—SMALL BUSINESS 
ADMINISTRATION OVERSIGHT 
SEC. 101. SMALL BUSINESS ADMINISTRATION MISSION 
STATEMENT. 
(a) IN GENERAL.—Section 2 of the Small Business 
Act (15 U.S.C. 631) is amended— 
(1) by amending subsection (c) to read as fol-
lows: 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
‘‘(c) AID FOR AGRICULTURALLY RELATED INDUS-
TRIES; FINANCIAL ASSISTANCE.—It is the declared policy 
of the Congress that— 
‘‘(1) the Federal Government, through the 
Small Business Administration, should— 
‘‘(A) help Americans start, build, and grow 
businesses; 
‘‘(B) advocate for small business concerns 
within the Federal Government; 
‘‘(C) serve American small business con-
cerns in a prompt, effective, efficient, and pru-
dent manner; and 
‘‘(D) aid, counsel, assist, and protect the 
interests of small business concerns engaged in 
the production of food and fiber, ranching, and 
raising of livestock, aquaculture, and all other 
farming and agricultural related industries; and 
‘‘(2) the financial assistance programs author-
ized by this chapter are also to be used to assist 
such concerns.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(k) MISSION STATEMENT.—The Administrator shall 
establish a mission statement based on the requirements 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
the date of the enactment of this sub-
section. 
‘‘(B) SUBSEQUENT
PROGRAMS.—During 
an emergency, the Administrator shall apply the 
measurement, metrics, and targets described in 
paragraph (2) to any program implemented in 
response to the emergency, as determined by 
the Administrator not later than 30 days after 
the date on which such program is imple-
mented. 
‘‘(C) 
EMERGENCY
DEFINED.—In 
this 
paragraph, the term ‘emergency’ means— 
‘‘(i) a major disaster, as determined 
by the President under the Robert T. Staf-
ford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.); 
‘‘(ii) a natural disaster, as determined 
by the Secretary of Agriculture pursuant 
to section 321 of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 
1961), in which case, subparagraph (A) 
shall apply only with respect to programs 
of the Administration assisting farm-re-
lated and nonfarm-related small business 
concerns; 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
‘‘(iii) a disaster, as determined by the 
Administrator of the Small Business Ad-
ministration; and 
‘‘(iv) an emergency involving Federal 
primary responsibility determined to exist 
by the President under section 501(b) of 
the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 
5191(b)).’’. 
(c) 
ADDITIONAL
ANNUAL
REPORT
REQUIRE-
MENTS.—Section 10 of the Small Business Act (15 U.S.C. 
639) is amended by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) ADDITIONAL REPORT REQUIREMENTS.—The 
Administrator shall include in the report required under 
subsection (a) information on each of the principal activi-
ties of the Administration (including lending, procure-
ment, and entrepreneurial development programs) and the 
staff (including contractors) assigned to carry out each 
such activity.’’. 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
SEC. 102. REQUIREMENT FOR THE ADMINISTRATOR OF THE 
SMALL BUSINESS ADMINISTRATION TO AP-
PEAR BEFORE CONGRESS AND REPORT ON 
CERTAIN RECOMMENDATIONS. 
(a) IN GENERAL.—Section 10 of the Small Business 
Act (15 U.S.C. 639) is amended by adding at the end the 
following new subsection: 
‘‘(i) APPEARANCES BEFORE CONGRESS.—Not later 
than 30 days after the date on which the President sub-
mits the budget required under section 1105(a) of title 
31, United States Code, to Congress, the Administrator 
shall appear before the Committee on Small Business of 
the House of Representatives and the Committee on Small 
Business and Entrepreneurship of the Senate to provide 
information on the activities of the Administration as de-
scribed in the budget.’’. 
(b) REPORT ON RECOMMENDATIONS.—Section 10(e) 
of the Small Business Act (15 U.S.C. 639) is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The Administra-
tion’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) REPORT ON RECOMMENDATIONS.—Beginning 
not later than 90 days after the date of the enactment 
of this paragraph, and not later than 90 days after Octo-
ber 1 of each subsequent year, the Administrator shall 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
submit to the Committee on Small Business of the House 
of Representatives and the Committee on Small Business 
and Entrepreneurship of the Senate a report on any rec-
ommendations made by the Inspector General or the 
Comptroller General of the United States that the Admin-
istrator did not fully implement during the fiscal year cov-
ered by the report.’’. 
TITLE II—SMALL BUSINESS AD-
MINISTRATION CAPITAL PRO-
GRAMS 
SEC. 201. PROHIBITION ON DIRECT LENDING. 
(a) IN GENERAL.—Notwithstanding any provision of 
subsection (a) of section 7 of the Small Business Act (15 
U.S.C. 636(a)), the Administrator may not— 
(1) directly make a loan pursuant to such sub-
section; or 
(2) enter into an agreement to participate in a 
loan on an immediate basis under such subsection. 
(b) EXISTING LOANS.— 
(1) IN
GENERAL.—The Administrator shall 
service a covered existing loan made or guaranteed 
under section 7(a) of the Small Business Act (15 
U.S.C. 636(b)) if such loan was made before the 
date of the enactment of this Act. 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
(2) COVERED
EXISTING
LOAN
DEFINED.—In 
this subsection, the term ‘‘covered existing loan’’ 
means a direct loan or a loan with respect to which 
the Administrator entered into an agreement to par-
ticipate on an immediate basis. 
SEC. 202. IMPROVEMENTS TO DISASTER LENDING. 
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)), as amended by this Act, is 
further amended— 
(1) by striking paragraphs (6), (7), (10), (11), 
and (14); 
(2) by redesignating paragraphs (8), (9), (12), 
(13), and (15) as paragraphs (6), (7), (8), (9) and 
(10), respectively; 
(3) by redesignating paragraph (16), as added 
by section 203(b), as paragraph (11); 
(4) by redesignating paragraph (17), as added 
by section 205(b), as paragraph (12); 
(5) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘(either directly or’’; 
(ii) by striking ‘‘an immediate or’’ and 
inserting ‘‘a’’; 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
(iii) by striking ‘‘basis) as the Admin-
istration’’ and inserting ‘‘basis as the bank 
or other lending institution’’; 
(iv) by striking ‘‘That the Administra-
tion may’’ and inserting ‘‘That the bank or 
other lending institution, in consultation 
with the borrower, may’’; 
(v) by striking ‘‘if it determines’’ and 
inserting ‘‘if the bank or other lending in-
stitution determines’’; and 
(vi) in clause (iii), by adding ‘‘and’’ at 
the end; 
(B) in subparagraph (B)— 
(i) by striking ‘‘unless the Administra-
tion’’ and inserting ‘‘unless the bank or 
other lending institution’’; and 
(ii) by striking ‘‘and’’ at the end; and 
(C) by striking subparagraph (C); 
(6) in paragraph (2)— 
(A) by striking ‘‘(either directly or’’; 
(B) by striking ‘‘an immediate or’’ and in-
serting ‘‘a’’; 
(C) by striking ‘‘basis) as the Administra-
tion’’ and inserting ‘‘basis as the bank or other 
lending institution’’; 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
(D) by striking ‘‘if the Administration de-
termines’’ and inserting ‘‘if the bank or other 
lending institution determines’’; 
(E) by inserting ‘‘the Administration de-
termines’’ after ‘‘disaster and if’’; and 
(F) in the matter following subparagraph 
(E)— 
(i) by striking ‘‘unless the Administra-
tion finds’’ and inserting ‘‘unless the bank 
or other lending institution finds’’; and 
(ii) by striking ‘‘and the Adminis-
trator shall’’ and inserting ‘‘and the banks 
or other lending institutions shall’’; 
(7) in paragraph (3)— 
(A) in subparagraph (B)— 
(i) by striking ‘‘(either directly or’’; 
(ii) by striking ‘‘an immediate or’’ and 
inserting ‘‘a’’; 
(iii) by striking ‘‘basis)’’ and inserting 
‘‘basis’’; and 
(iv) by striking the period at the end 
and inserting ‘‘, as determined by the bank 
or other lending institution.’’; 
(B) in subparagraph (C)— 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
(i) by striking ‘‘The Administrator 
may’’ and inserting ‘‘A bank or other lend-
ing institution may’’; and 
(ii) by striking ‘‘by the Adminis-
trator’’ and inserting ‘‘by the bank or 
other lending institution’’; 
(C) in subparagraph (E)— 
(i) by striking ‘‘, either directly or’’ 
and all that follows through ‘‘deferred 
basis,’’; and 
(ii) by striking ‘‘by the Administra-
tion, in which case the Administration’’ 
and inserting ‘‘by the bank or other lend-
ing institution, in which case the bank or 
other lending institution’’; 
(D) in subparagraph (G)— 
(i) in clause (i), by striking ‘‘the Ad-
ministrator’’ and inserting ‘‘a bank or 
other lending institution’’; and 
(ii) in clause (ii), by striking ‘‘The 
Administrator’’ and inserting ‘‘The bank 
or other lending institution’’; and 
(E) in subparagraph (H), by striking ‘‘The 
Administrator’’ and inserting ‘‘A bank or other 
lending institution’’; 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
(8) in paragraph (4)— 
(A) by striking ‘‘paragraph (9)’’ each place 
it appears and inserting ‘‘paragraph (7)’’; and 
(B) in subparagraph (B)(ii), by striking 
‘‘the Administrator’’ and inserting ‘‘a bank or 
other lending institution’’; 
(9) in paragraph (5)— 
(A) by striking ‘‘paragraph (9)’’ and in-
serting ‘‘paragraph (7)’’; and 
(B) in subparagraph (G), by striking ‘‘the 
Administration’’ and inserting ‘‘banks or other 
lending institutions’’; 
(10) in subparagraph (B) of paragraph (6), as 
so redesignated, by striking ‘‘The Administrator 
may, at the discretion of the Administrator’’ and in-
serting ‘‘A bank or other lending institution may, at 
the discretion of the bank or other lending institu-
tion’’; 
(11) in subparagraph (C) of paragraph (7), as 
so redesignated— 
(A) in clause (i)— 
(i) by striking ‘‘(either directly or’’; 
(ii) by striking ‘‘an immediate or’’ and 
inserting ‘‘a’’; 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
(iii) by striking ‘‘basis)’’ and inserting 
‘‘basis’’; and 
(iv) by striking ‘‘as the Administrator 
determines’’ and inserting ‘‘as the bank or 
other lending institution determines’’; and 
(B) in clause (ii), by striking ‘‘the Admin-
istrator shall’’ each place it appears and insert-
ing ‘‘the banks or other lending institutions 
shall’’; 
(12) in subparagraph (A) of paragraph (8), as 
so redesignated— 
(A) by inserting ‘‘a chapter of’’ before ‘‘the 
Service Corps of Retired Executives’’; and 
(B) by striking ‘‘any proposed consortium 
of such individuals or entities’’ and inserting 
‘‘Veteran Business Outreach Centers’’; 
(13) in paragraph (9), as so redesignated, by 
striking ‘‘Administrator’’ each place it appears and 
inserting ‘‘bank or other lending institution’’; 
(14) by inserting after paragraph (12), as so 
redesignated, the following new paragraphs: 
‘‘(13) LENDERS.— 
‘‘(A) COMPLIANCE.—If the Administrator 
determines that a bank or other lending institu-
tion knowingly failed to comply with the under-
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS
writing standards for loans guaranteed under 
this subsection or violated the terms of the 
standard operating procedure agreement be-
tween that bank or other lending institution 
and the Administration, the Administrator shall 
take one or more of the following actions: 
‘‘(i) Make loans made by the bank or 
other lending institution ineligible to re-
ceive a guarantee from the Administration 
under this subsection. 
‘‘(ii) Exclude the bank or other lend-
ing institution from participating in the 
Preferred Lender Program for a period of 
not more than 5 years. 
‘‘(B) FEES.— 
‘‘(i) IN GENERAL.—The Administrator 
may not collect a guarantee fee under this 
subsection. 
‘‘(ii) ORIGINATION
FEE.—With re-
spect to a loan guaranteed under this sub-
section, the Administrator shall reimburse 
the bank or other lending institution mak-
ing such loan— 
VerDate Sep 11 2014 
22:19 May 02, 2022
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H7628.IH
H7628
kjohnson on DSK79L0C42PROD with BILLS