Small Business Development Centers Improvement Act of 2022
Bill: S.5175 | Sponsor: Sen. Cardin, Benjamin L. (D-MD)
Policy area: Commerce

Summary:
Small Business Development Centers Improvement Act of 2022
This bill reauthorizes the Small Business Development Center Program through FY2026 and otherwise revises the program. Specifically, the bill (1) generally prohibits entities other than institutions of higher education from receiving new grants under the program; (2) allows centers to collect fees related to private partnerships or cosponsorships; (3) authorizes centers to market their services directly to small businesses; and (4) modifies or establishes provisions related to program funding, operations, data collection, and reporting.

To amend the Small Business Act to require an annual report on 
     entrepreneurial development programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Development Centers 
Improvement Act of 2022''.

SEC. 2. ANNUAL REPORT ON ENTREPRENEURIAL DEVELOPMENT PROGRAMS.

    Section 10 of the Small Business Act (15 U.S.C. 639) is amended by 
adding at the end the following:
    ``(i) Annual Report on Entrepreneurial Development Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered program.--The term `covered program' 
                means a program authorized under section 7(j), 7(m), 
                8(a), 8(b)(1), 21, 22, 29, 32, or 34.
                    ``(B) Entrepreneurial development activity.--The 
                term `entrepreneurial development activity' means an 
                activity related to the delivery of entrepreneurial 
                development services, entrepreneurial education, or 
                support for the development and maintenance of business 
                training services carried out through a covered 
                program.
            ``(2) Report required.--The Administrator shall include in 
        the comprehensive annual report required under subsection (a) 
        the following data:
                    ``(A) A list of all entrepreneurial development 
                activities undertaken during the fiscal year preceding 
                the date of the report through a covered program, 
                including--
                            ``(i) a description and operating details 
                        for each such covered program and the 
                        activities performed under each such covered 
                        program;
                            ``(ii) operating circulars, manuals, and 
                        standard operating procedures for each such 
                        covered program;
                            ``(iii) a description of the process used 
                        to make awards relating to the provision of 
                        entrepreneurial development activities under 
                        each such covered program;
                            ``(iv) a list of all recipients of awards 
                        under each such covered program and the amount 
                        of each such award; and
                            ``(v) a list of contractors, including the 
                        name and location of such contractor, of an 
                        award recipient.
                    ``(B) The total amount of funding obligated for a 
                covered program and the entrepreneurial development 
                activities conducted under each such covered program 
                for the fiscal year preceding the date of the report.
                    ``(C) The names and titles of the individuals 
                responsible for carrying out a covered program.
                    ``(D) For entrepreneurial development activities 
                undertaken during the fiscal year preceding the date of 
                the report through the Small Business Development 
                Center Program established under section 21 (in this 
                section referred to as the `Program')--
                            ``(i) the total number and number of 
                        individuals counseled or trained through the 
                        Program;
                            ``(ii) the total number of hours of 
                        counseling and training services provided 
                        through the Program;
                            ``(iii) to the extent practicable, the 
                        demographics of participants in the Program, 
                        which shall include the gender, race, 
                        ethnicity, and age of each such participant;
                            ``(iv) the number of participants in the 
                        Program who are veterans;
                            ``(v) the number of new businesses started 
                        by participants in the Program;
                            ``(vi) to the extent practicable, the 
                        number of jobs supported, created, and retained 
                        with assistance from the Program;
                            ``(vii) to the extent practicable, the 
                        total amount of capital secured by participants 
                        in the Program, including through loans and 
                        equity investment from the Administration;
                            ``(viii) the number of participants in the 
                        Program receiving financial assistance, 
                        including the type and dollar amount, under a 
                        loan program of the Administration;
                            ``(ix) an estimate of gross receipts, 
                        including, to the extent practicable, a 
                        description of any change in revenue, of small 
                        business concerns assisted through the Program;
                            ``(x) the number of referrals of 
                        individuals to other resources and programs of 
                        the Administration;
                            ``(xi) the results of satisfaction surveys 
                        of participants in the Program, including a 
                        summary of any comments received from those 
                        participants; and
                            ``(xii) any recommendations by the 
                        Administrator to improve the delivery of 
                        services by the Program.''.

SEC. 3. MARKETING OF SERVICES.

    Section 21 of the Small Business Act (15 U.S.C. 648) is amended by 
adding at the end the following:
    ``(o) No Prohibition of Marketing of Services.--An applicant 
receiving a grant under this section may use up to 10 percent of their 
budget to market and advertise the services of the applicant to 
individuals and small business concerns.''.

SEC. 4. DATA COLLECTION WORKING GROUP.

    (a) Establishment of Working Group To Improve Data Collection.--The 
Administrator of the Small Business Administration shall establish a 
group to be known as the ``Data Collection Working Group'' consisting 
of entrepreneurial development grant recipients, the associations and 
organizations representing such recipients, and officials from the 
Small Business Administration, to carry out a study to determine the 
best methods for conducting data collection activities and create or 
revise existing systems dedicated to data collection.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Data Collection Working Group shall issue a report to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives containing 
the findings and determinations made in carrying out the study required 
under subsection (a), including--
            (1) recommendations for revising existing data collection 
        practices for the Small Business Development Center Program; 
        and
            (2) a proposed plan for the Administrator of the Small 
        Business Administration to implement the recommendations 
        described in paragraph (1).

SEC. 5. OVERSIGHT; FEES FROM PRIVATE PARTNERSHIPS AND COSPONSORSHIPS; 
              NEGOTIATION.

    Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is 
amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``, including financial oversight,'' after ``oversight'';
            (2) by moving subparagraphs (A) and (B) 2 ems to the right;
            (3) in subparagraph (C)--
                    (A) by striking ``Whereas'';
                    (B) by inserting ``Program'' after ``Center''; and
                    (C) by striking ``National'' and inserting 
                ``national''; and
            (4) by adding at the end the following:
                    ``(D)(i) A small business development center that 
                participates in a private partnership or cosponsorship, 
                in which the Administrator or designee of the 
                Administrator also participates, may collect fees or 
                other income in order to hold events related to the 
                private partnership or cosponsorship.
                    ``(ii) Nothing in clause (i) shall be construed as 
                the Administration endorsing a private partnership or 
                cosponsorship described in clause (i).
                    ``(E) An association formed under subparagraph (A) 
                shall, at the request of a small business development 
                center applicant or applicants, participate in the 
                negotiation of the cooperative agreement described in 
                this paragraph between the small business development 
                center applicant or applicants and the 
                Administration.''.

SEC. 6. EQUITY FOR SMALL BUSINESS DEVELOPMENT CENTERS.

    Section 21(a)(4)(C)(v) of the Small Business Act (15 U.S.C. 
648(a)(4)(C)(v)) is amended to read as follows:
            (1) by striking subclause (I) and inserting the following:
                            ``(v) Of the amounts made available in any 
                        fiscal year to carry out this section, not more 
                        than $600,000 may be used by the Administration 
                        to pay expenses enumerated in subparagraphs (B) 
                        through (D) of section 20(a)(1).''.

SEC. 7. CONFIDENTIALITY REQUIREMENTS.

    Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 
648(a)(7)(A)) is amended in the matter preceding clause (i)--
            (1) by striking ``or telephone number'' and inserting ``, 
        telephone number, or email address''; and
            (2) by inserting ``, or the nature or content of such 
        assistance, to any State, local, or Federal agency, or to any 
        third party'' after ``receiving assistance under this 
        section''.

SEC. 8. LIMITATION ON AWARD OF GRANTS TO SMALL BUSINESS DEVELOPMENT 
              CENTERS.

    (a) In General.--Section 21 of the Small Business Act (15 U.S.C. 
648), as amended by section 3 of this Act, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``any women's business center 
                operating pursuant to section 29,'';
                    (B) by striking ``or a women's business center 
                operating pursuant to section 29 as a Small Business 
                Development Center''; and
                    (C) by striking ``and women's business centers 
                operating pursuant to section 29''; and
            (2) by adding at the end the following:
    ``(p) Limitation on Award of Grants.--Except for nonprofit 
institutions of higher education, and notwithstanding any other 
provision of law, the Administrator may not award a grant or contract 
to, or enter into a cooperative agreement with, an entity under this 
section unless that entity--
            ``(1) received a grant or contract from, or entered into a 
        cooperative agreement with, the Administrator under this 
        section before the date of enactment of this subsection; and
            ``(2) seeks to renew such a grant, contract, or cooperative 
        agreement after such date.''.
    (b) Rule of Construction.--The amendments made by this section may 
not be construed as prohibiting a women's business center described in 
section 29 of the Small Business Act (15 U.S.C. 646) from receiving a 
subgrant from an entity receiving a grant under section 21 of the Small 
Business Act (15 U.S.C. 648).

SEC. 9. AUTHORIZATION OF APPROPRIATIONS FOR FORMULA GRANTS RECEIVED BY 
              STATES.

    Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 
648(a)(4)(C)) is amended--
            (1) in clause (vii), by striking ``subparagraph'' and all 
        that follows through the period at the end and inserting 
        ``subparagraph $175,000,000 for each of fiscal years 2023 
        through 2026.''; and
            (2) in clause (viii)--
                    (A) by striking ``shall reserve not less than 
                $1,000,000'' and inserting ``shall reserve not more 
                than $2,000,000''; and
                    (B) by striking ``$100,000'' and inserting 
                ``$200,000.''

SEC. 10. REQUIREMENTS RELATING TO MATCHING FUNDS.

    Section 21(a)(4)(A) of the Small Business Act (15 U.S.C. 
648(a)(4)(A)) is amended by adding at the end the following: ``Such 
matching funds shall be evidenced by good faith assertions from the 
applicant, and the expenditure of matching funds shall not be made a 
prerequisite of the reimbursement of Federal funds, notwithstanding the 
final reconciliation payment for the close-out of each award.''.

SEC. 11. DUTIES OF THE ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS 
              DEVELOPMENT CENTERS.

    Section 21(h)(2) of the Small Business Act (15 U.S.C. 648(h)(2)) is 
amended by adding at the end the following:
                    ``(C) Marketing.--The Associate Administrator for 
                Small Business Development Centers shall market and 
                advertise the Small Business Development Center Program 
                and participants in that Program as a resource 
                available to any Federal program providing assistance 
                to small business concerns, including the FAST program 
                established under section 34.''.

SEC. 12. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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