Title: Small Business Development Centers Improvement Act of 2019
Policy area: Commerce

Summary:
Small Business Development Centers Improvement Act of 2019
This bill reauthorizes the Small Business Development Center Program through FY2023 and otherwise revises the program. Specifically, the bill (1) generally prohibits entities other than institutions of higher education from receiving grants under the program; (2) allows centers to collect fees related to partnerships or sponsorships; (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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4406 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4406

     To amend the Small Business Act to improve the small business 
          development centers program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 2019

 Mr. Golden (for himself and Mrs. Radewagen) introduced the following 
      bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
     To amend the Small Business Act to improve the small business 
          development centers program, 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 subtitle may be cited as the ``Small Business Development 
Centers Improvement Act of 2019''.

SEC. 2. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 49 as section 50; and
            (2) by inserting after section 48 the following new 
        section:

``SEC. 49. USE OF AUTHORIZED ENTREPRENEURIAL DEVELOPMENT PROGRAMS.

    ``(a) Expanded Support for Entrepreneurs.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Administrator shall only deliver entrepreneurial 
        development services, entrepreneurial education, and support 
        for the development and maintenance of the Regional Innovation 
        Clusters Program (or similar business training services) 
        through a program authorized under--
                    ``(A) section 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 
                29, or 32 of this Act; or
                    ``(B) sections 358 or 389 of the Small Business 
                Investment Act of 1958.
            ``(2) Exception.--This section shall not apply to services 
        provided to assist small business concerns owned by an Indian 
        tribe (as such term is defined in section 8(a)(13)).
    ``(b) Annual Report.--Beginning on the first December 1 after the 
date of the enactment of this section, the Administrator shall annually 
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 the following:
            ``(1) All entrepreneurial development activities undertaken 
        during the fiscal year preceding the date of the report through 
        a program described in subsection (a), including--
                    ``(A) a description and operating details for each 
                program and the activities performed under each 
                program;
                    ``(B) operating circulars, manuals, and standard 
                operating procedures for each program;
                    ``(C) a description of the process used to award 
                grants under such programs;
                    ``(D) a list of all recipients of awards under a 
                program described in subsection (a), contractors, and 
                vendors (including organization name and location) and 
                the amount of awards provided during the fiscal year 
                preceding the date of the report for such programs and 
                activities performed under such programs;
                    ``(E) the total amount of funding obligated for 
                such programs and activities for the fiscal year 
                preceding the date of the report; and
                    ``(F) the names and titles of the individuals 
                responsible for such programs.
            ``(2) For entrepreneurial development activities undertaken 
        during the fiscal year preceding the date of the report through 
        the Small Business Development Center Program (in this section 
        referred to as the `Program')--
                    ``(A) the number of individuals counseled or 
                trained through the Program;
                    ``(B) the total number of hours of counseling and 
                training services provided through the Program;
                    ``(C) the demographics of participants in the 
                Program, which shall include the gender, race, and age 
                of each such participant;
                    ``(D) the number of participants in the Program who 
                are veterans;
                    ``(E) the number of new businesses started by 
                participants in the Program;
                    ``(F) to the extent practicable, the number of jobs 
                supported, created, or retained with assistance from 
                small business development centers;
                    ``(G) the amount of capital secured by participants 
                in the Program, including through loans and equity 
                investment;
                    ``(H) the number of participants in the Program 
                receiving financial assistance, including the type and 
                dollar amount, under the loan programs of the 
                Administration;
                    ``(I) 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;
                    ``(J) the number of referrals to other resources 
                and programs of the Administration;
                    ``(K) the results of satisfaction surveys of 
                participants in the Program, including a summary of any 
                comments received from such participants; and
                    ``(L) 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 market and advertise the 
services of such applicant to individuals and small business 
concerns.''.

SEC. 4. DATA COLLECTION BY THE SMALL BUSINESS DEVELOPMENT CENTER 
              ASSOCIATION.

    (a) In General.--Section 21(a)(3)(A) of the Small Business Act (15 
U.S.C. 648(a)(3)(A)) is amended--
            (1) by striking ``as provided in this section and'' and 
        inserting ``as provided in this section,''; and
            (2) by inserting before the period at the end the 
        following: ``, and (iv) governing data collection activities 
        related to applicants receiving grants under this section''.
    (b) Annual Report on Data Collection.--Section 21 of the Small 
Business Act (15 U.S.C. 648), as amended by section 3 of this Act, is 
further amended by adding at the end the following:
    ``(p) Annual Report on Data Collection.--The Administrator shall 
annually 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 data collection 
activities related to the Small Business Development Center Program.''.
    (c) Working Group To Improve Data Collection.--
            (1) Establishment and study.--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.
            (2) Report.--Not later than the end of the 180-day period 
        beginning on the date of the enactment of this Act, the Data 
        Collection Working Group shall issue a report to the Committee 
        on Small Business of the House of Representatives and the 
        Committee on Small Business and Entrepreneurship of the Senate 
        containing the findings and determinations made in carrying out 
        the study required under paragraph (1), including--
                    (A) recommendations for revising existing data 
                collection practices for the Small Business Development 
                Center Program; and
                    (B) a proposed plan for the Administrator of the 
                Small Business Administration to implement such 
                recommendations.

SEC. 5. FEES FROM PRIVATE PARTNERSHIPS AND COSPONSORSHIPS.

    Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is 
amended by adding at the end the following:
    ``(D) Fees From Private Partnerships and Cosponsorships.--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 
related to the operation of such private partnership or 
cosponsorship.''.

SEC. 6. EQUITY FOR SMALL BUSINESS DEVELOPMENT CENTERS.

    Subclause (I) of section 21(a)(4)(C)(v) of the Small Business Act 
(15 U.S.C. 648(a)(4)(C)(v)(I)) is amended to read as follows:
                                    ``(I) In general.--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--
            (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 4, is further 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''; and
                    (C) by striking ``and women's business centers 
                operating pursuant to section 29''; and
            (2) by adding at the end the following:
    ``(q) Limitation on Award of Grants.--Except for not-for-profit 
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 the 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 (as described 
under section 29 of the Small Business Act) from receiving a subgrant 
from an entity receiving a grant under section 21 of the Small Business 
Act.

SEC. 9. MANAGEMENT OF PROGRAM ACTIVITIES.

    Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)), 
as amended by section 4, is further amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``upon, with full participation of both parties,'' and 
        inserting ``upon with the full participation of all parties 
        (including the association authorized in subparagraph (A)), and 
        carried out'';
            (2) in subparagraph (A), by striking ``and develop'' and 
        inserting ``and negotiate the development of''; and
            (3) in subparagraph (C)--
                    (A) by striking ``Whereas'';
                    (B) by inserting ``Program'' after ``Center'';
                    (C) by striking ``National'' and inserting 
                ``national''; and
                    (D) by moving such subparagraph two ems to the 
                left.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    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 fiscal years 2020 through 
        2023''; and
            (2) in clause (viii), by striking ``shall reserve not less 
        than $1,000,000'' and inserting ``shall reserve not more than 
        $2,000,000''.
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