Title: Small Business Development Centers Improvement Act of 2022
Policy area: Commerce

Summary:
Small Business Development Centers Improvement Act of 2022
This bill reauthorizes the Small Business Development Center Program through FY2025 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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6445 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 6445

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 20, 2022

  Mr. Golden (for himself and Mr. Hagedorn) introduced the following 
  bill; which was referred to the Committee on Small Business, and in 
      addition to the Committee on the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    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 new subsection:
    ``(i) Annual Report on Entrepreneurial Development Programs.--
            ``(1) 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 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) the demographics of participants in 
                        the Program, which shall include the gender, 
                        race, 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, or retained 
                        with assistance from the Program;
                            ``(vii) the amount of capital secured by 
                        participants in the Program, including through 
                        loans and equity investment;
                            ``(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 such 
                        participants; and
                            ``(xii) any recommendations by the 
                        Administrator to improve the delivery of 
                        services by the Program.
            ``(2) 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 of this Act.
                    ``(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.''.

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 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 2 ems to the left.

SEC. 10. 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 2022 
        through 2025.''; 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''.

SEC. 11. 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 new 
sentence: ``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. 12. CONTRACT PREREQUISITES.

    Section 21(a)(5)(B) of the Small Business Act (15 U.S.C. 
648(a)(5)(B)) is amended by striking the second sentence and inserting 
the following: ``Each contract shall be deemed approved under 
subparagraph (A) unless the Associate Administrator certifies in 
writing within 15 business days after award of the contract that the 
contract will not provide assistance to small business concerns and 
that performance of the contract will hinder the small business 
development center in carrying out the terms of the grant received by 
the small business development center under this section.''.

SEC. 13. 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 new subparagraph:
                    ``(C) Marketing.--The Associate Administrator for 
                Small Business Development Centers shall market and 
                advertise the Small Business Development Center Program 
                and participants in such Program as a resource 
                available to any Federal program providing assistance 
                to small business concerns, including the FAST program 
                established under section 34.''.

SEC. 14. 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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