I 117th CONGRESS 2d Session H. R. 7628 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 ) introduced 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.

1. Short title This Act may be cited as the Improve Management, Programs, Resources, and Oversight for Vital Entrepreneurs the SBA Act or the IMPROVE the SBA Act . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. 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 Administration to appear before Congress and report on certain recommendations. 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 recommendations 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. 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 Advocacy of the Small Business Administration. Title X—Small Business Administration as a Representative of Small Businesses Sec. 1001. Economic headwinds report. 3. Definitions In this Act: (1) Administration The term Administration means the Small Business Administration. (2) Administrator The term Administrator means the Administrator of the Small Business 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 ). I Small Business Administration Oversight 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 follows: (c) Aid for agriculturally related industries; 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 concerns in a prompt, effective, efficient, and prudent 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 authorized by this chapter are also to be used to assist such concerns. ; and (2) by adding at the end the following new subsection: (k) Mission statement The Administrator shall establish a mission statement based on the requirements of this section and publish such mission statement prominently on the main webpage of the Administration. . (b) Establishment of performance and outreach metrics and targets Section 4 of the Small Business Act ( 15 U.S.C. 633 ) is amended by adding at the end the following new subsection: (i) Effectiveness of programs of the Administration (1) In general Except as provided in paragraph (4), not later than 120 days after the date of the enactment of this subsection, the Administrator shall— (A) establish a baseline measurement of the effectiveness of the programs of the Administration; and (B) develop metrics and targets to track, over time, the effectiveness of such programs. (2) Subsequent programs Not later than the date on which a program of the Administration is implemented, the Administrator shall— (A) establish a baseline measurement of the effectiveness of such program; and (B) develop metrics and targets to track, over time, the effectiveness of such program. (3) Applicability Except as provided in paragraph (4), not later than 60 days after the Administrator establishes the measurement and develops the metrics and targets described in paragraph (1) or (2), the Administrator shall apply the such measurement, metrics, and targets to the programs of the Administration. (4) Emergency measurements (A) Initial measurements In the event of an emergency during the 120-day period beginning on the date of the enactment of this subsection, the Administrator shall develop, and apply the measurement, metrics, and targets described in paragraph (1) to programs of the Administration implemented prior to the date of the enactment of this subsection— (i) not later than 30 days after the date of the enactment of this subsection, if such emergency began prior to the date of the enactment of this subsection; (ii) not later than the earlier of 120 days after the enactment of this subsection or 30 days after the beginning of such emergency, if such emergency began after the date of the enactment of this subsection. (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 implemented. (C) Emergency defined In this paragraph, the term emergency means— (i) a major disaster, as determined by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance 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-related and nonfarm-related small business concerns; (iii) a disaster, as determined by the Administrator of the Small Business Administration; 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 requirements Section 10 of the Small Business Act ( 15 U.S.C. 639 ) is amended by inserting after subsection (a) the following new subsection: (b) Additional report requirements The Administrator shall include in the report required under subsection (a) information on each of the principal activities of the Administration (including lending, procurement, and entrepreneurial development programs) and the staff (including contractors) assigned to carry out each such activity. . 102. Requirement for the Administrator of the Small Business Administration to appear 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 submits 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 described 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 Administration ; 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 October 1 of each subsequent year, the Administrator shall 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 recommendations made by the Inspector General or the Comptroller General of the United States that the Administrator did not fully implement during the fiscal year covered by the report. . II Small Business Administration Capital Programs 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 subsection; 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. (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 participate on an immediate basis. 202. Improvements to disaster lending (a) In general Section 7(b) of the Small Business 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 ; (iii) by striking basis) as the Administration and inserting basis as the bank or other lending institution ; (iv) by striking That the Administration 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 institution determines ; and (vi) in clause (iii), by adding and at the end; (B) in subparagraph (B)— (i) by striking unless the Administration 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 inserting a ; (C) by striking basis) as the Administration and inserting basis as the bank or other lending institution ; (D) by striking if the Administration determines and inserting if the bank or other lending institution determines ; (E) by inserting the Administration determines after disaster and if ; and (F) in the matter following subparagraph (E)— (i) by striking unless the Administration finds and inserting unless the bank or other lending institution finds ; and (ii) by striking and the Administrator 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)— (i) by striking The Administrator may and inserting A bank or other lending institution may ; and (ii) by striking by the Administrator 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 Administration, in which case the Administration and inserting by the bank or other lending institution, in which case the bank or other lending institution ; (D) in subparagraph (G)— (i) in clause (i), by striking the Administrator 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 ; (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 inserting 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 inserting A bank or other lending institution may, at the discretion of the bank or other lending institution ; (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 ; (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 Administrator shall each place it appears and inserting 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 institution knowingly failed to comply with the underwriting standards for loans guaranteed under this subsection or violated the terms of the standard operating procedure agreement between 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 receive a guarantee from the Administration under this subsection. (ii) Exclude the bank or other lending 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 respect to a loan guaranteed under this subsection, the Administrator shall reimburse the bank or other lending institution making such loan— (I) for a loan in amount that is less than or equal to $50,000, an amount equal to the lesser of— (aa) 50 percent of the balance of the financing outstanding at the time of disbursement of such loan; or (bb) $2,500; (II) for a loan in an amount that is greater than $50,000 and not greater than $350,000, an amount equal to five percent of the financing outstanding at the time of disbursement of such loan; or (III) for a loan in an amount that is greater than or equal to $350,000, an amount equal to three percent of the financing outstanding at the time of disbursement of such loan. (C) Documentation A bank or other lending institution may use its own loan documentation for a loan guaranteed by the Administrator under this subsection. (D) Purchase of loans The Administrator may enter into an agreement with a bank or other lending institution to purchase any loan guaranteed under this subsection. (E) Secondary markets (i) In general The Administrator shall issue rules for the facilitation, administration, and promotion of the sale of loans guaranteed under this subsection in the secondary market in the same manner as loans made or guaranteed under subsection (a). (ii) Treatment The rules issued under clause (i) shall provide that paragraphs (1)(A)(ii) and (4)(B)(ii) of subsection (a) shall apply with respect loans guaranteed under this subsection in the same manner as such paragraphs apply to loans made or guaranteed under subsection (a). (F) Level of participation in guaranteed loans In agreements to participate in loans on a deferred basis under this subsection, such participation by the Administration shall be equal to 95 percent of the balance of the financing outstanding at the time of disbursement of the loan. (G) Collateral requirements (i) In general Loans guaranteed under this subsection in an amount greater than $25,000 shall be secured to the extent possible, as determined by the bank or other lending institution. (ii) Lack of collateral A bank or lending institution may not decline a loan based on a lack of collateral, but such bank or lending institution may require real estate owned by the borrower as collateral. (iii) Lien on subject property A bank or lending institution may also take a lien on any residential property of the borrower with respect to which the loan to be secured by such lien is made. (14) Bank or other lending institution defined In this subsection, the terms bank or other lending institution means a lender authorized by the Administration to participate as a lender under subsection (a), other than a small business lending company or a non-Federally regulated lender (as such terms are defined in section 3(r)). ; and (15) in the flush left matter at the end— (A) by striking the Administrator may consent and inserting the bank or other lending institution may consent ; (B) by striking the Administrator determines and inserting the bank or other lending institution determines ; and (C) by striking In agreements to participate and all that follows through to a disaster loan under paragraph (1) (2) of this subsection. . (b) Private disaster loans Section 7(c) of the Small Business Act ( 15 U.S.C. 636(c) ) is repealed. (c) Other requirements Section 7 of the Small Business Act ( 15 U.S.C. 636 ) is amended— (1) in subsection (d)— (A) in paragraph (1)— (i) by inserting (except a loan under subsection (b) after to this section ; and (ii) by adding at the end The bank or other lending institution that made a loan under subsection (b) may further extend the maturity of or renew such loan for additional periods not to exceed ten years beyond the period stated therein, if such extension or renewal will aid in the orderly liquidation of such loan. ; (B) in paragraph (2), by striking person, firm, or corporation and inserting bank or other lending institution ; (C) in paragraph (6)— (i) by striking , either directly or ; (ii) by striking on an immediate or deferred (guaranteed) basis, and inserting a deferred (guaranteed) basis ; (iii) by striking in which case the Administration and inserting in which case the bank or other lending institution that made such loan ; (iv) by striking That the Administration shall not require and inserting That the banks or other lending institutions shall not require ; (v) by striking (or such higher amount as the Administrator determines appropriate in the event of a disaster) ; (vi) by striking That the Administrator, in obtaining and inserting That the bank or other lending institution, in obtaining ; and (vii) by striking if the Administrator determines and inserting if the bank or other lending institution determines ; and (D) by striking paragraph (8); (2) in subsection (f)(1), by striking the Administrator and inserting the bank or other lending institution making such a loan ; and (3) in subsection (g), by striking the Administrator shall and inserting neither the Administrator nor a bank or other lending institution may . (d) Conforming amendments The Small Business Act ( 15 U.S.C. 631 ) is amended— (1) in section 4(c)(2), by striking , (7(b)(7), 7(b)(8) ; and (2) in section 40(b), by striking 7(b)(9) and inserting 7(b)(7) . (e) Repeal of Immediate Disaster Assistance program Section 42 of the Small Business Act ( 15 U.S.C. 657n ) is repealed. (f) Rules Not later than 120 days after the date of the enactment of this Act, the Administrator shall issue rules for making loans under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ), as amended by this section. (g) Effective date (1) In general The amendments made by subsections (a), (b), (c), and (d) shall take effect on the date that is three years after the date of the enactment of this Act. (2) Interim loan authority During the period beginning on the date the Administrator issues the rules required under subsection (f) and ending three years after the date of the enactment of this Act, loans may be made under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) as if the amendments made by subsections (a), (b), (c), and (d) were in effect. 203. Disaster loan program oversight (a) Administration oversight (1) In general With respect to loans made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), other than loans made pursuant to section 202(g)(2) of this Act, the Administrator shall take such action as necessary to— (A) establish or strengthen controls to ensure that loan proceeds are deposited in a legitimate account of a borrower; (B) ensure that any modification of a loan application after lender approval of such loan is reviewed by an employee of the Administration; (C) establish or strengthen controls to— (i) ensure that multiple loans are provided only to eligible borrowers; and (ii) prevent the erroneous duplication of loans, including by establishing a system to verify the identity of a borrower using photo identification; (D) verify the applicant is a legitimate borrower with the appropriate State or local agency through tax returns, documentation relating to incorporation or status as a nonprofit organization, or another method; (E) ensure that two employees of the Administration approve each application for such loans and eliminate any processes of the Administration that allow for simultaneous approval of multiple loan applications; (F) require an individual employee of the Administration to contact applicants who submit multiple loan applications from the same Internet Protocol addresses, email addresses, or physical addresses, or with the same bank account numbers, to verify eligibility of such applicants; (G) ensure that such borrower is not included on the Do Not Pay List of the Department of the Treasury (as described under section 3354 of title 31, United States Code); (H) prevent duplicate loan applications with the same employer identification number or social security number; and (I) establish a system to prevent disbursement of such loans to applicants that submit more than one loan application with the same employer identification number, social security number, email addresses, physical addresses, or bank account number, or from the same Internet Protocol address. (2) Sunset This subsection shall terminate on the date that is three years after the date of the enactment of this Act. (b) Audit plan Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting after paragraph (15) the following new paragraph: (16) Audit plan (A) In general Not later than 90 days after the date of the enactment of this paragraph, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a plan for auditing covered loans, including— (i) the policies and procedures that the Administrator shall use to conduct audits of such covered loans; and (ii) the metrics that the Administrator shall use to determine which such covered loans to audit. (B) Reports Not later than 30 days after the date on which the Administrator submits the plan required by subparagraph (A), and each month thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the audit activities of the Administration with respect to covered loans under this subsection, including— (i) the number of active reviews and audits; (ii) the results of completed reviews and audits; and (iii) any substantial changes to the plan submitted under subparagraph (A). (C) Covered loan defined In this paragraph, the term covered loan means a loan made— (i) under this subsection; and (ii) (I) pursuant to section 202(g)(2) of the IMPROVE the SBA Act; or (II) not earlier than the date that is three years after the date of the enactment of this paragraph. . 204. High risk loan review Section 47(c)(2) of the Small Business Act ( 15 U.S.C. 657t(c)(2) ) is amended— (1) by striking shall be responsible and inserting the following: shall— (A) be responsible ; (2) by striking participants. and inserting participants; and ; (3) by adding at the end the following new subparagraph: (B) establish a separate process for the oversight of such lenders and participants with respect to a loan made in an amount greater than or equal to $500,000 for which the borrower of such loan defaulted within the first 18 months after the initial disbursement of such loan. . 205. Capital Access Program oversight (a) Guaranteed lending programs Section 47 of the Small Business Act ( 15 U.S.C. 657t ) is amended by adding at the end the following new subsection: (j) Congressional testimony Not later than the date that is 120 days after the date of the enactment of this subsection, and not less frequently than annually thereafter, the Associate Administrator of the Office of Capital Access of the Administration and the Director shall testify before the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the state of lending under sections 7(a) and 7(m) of this Act and under section 503 of the Small Business Investment Act of 1958, including programs under which loans are made pursuant to such sections. . (b) Disaster lending programs Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ), as amended by section 203(b), is further amended by inserting after paragraph (16) the following new paragraph: (17) Congressional testimony Not later than the date that is 120 days after the date of the enactment of this paragraph, and not less frequently than annually thereafter, the Associate Administrator of the Office of Disaster Assistance shall testify before the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the state of lending under this subsection, including programs under which loans are made pursuant to this subsection. . (c) Small business investment companies Section 308 of the Small Business Investment Act of 1958 ( 15 U.S.C. 687 ) is amended by adding at the end the following new subsection: (j) Congressional testimony Not later than the date that is 120 days after the date of the enactment of this subsection, and not less frequently than annually thereafter, the Associate Administrator of the Office of Investment and Innovation shall testify before the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the state of small business investment companies and the operations of the Administration under this Act. . III Small Business Administration Counseling Programs 301. Appearances before Congress (a) Resource partner defined Section 3 of the Small Business Act ( 15 U.S.C. 632 ) is amended by adding at the end the following new subsection: (gg) Resource partner The term resource partner means— (1) a small business development center; (2) a women’s business center (as described in section 29); (3) a Veteran Business Outreach Center (as described under section 32); or (4) a chapter of the Service Corps of Retired Executives (as defined in section 8(b)(1)(B)). . (b) Metrics Not later than 60 days after the date of the enactment of this Act, the Administrator shall establish metrics to measure the effectiveness of the outreach of each resource partner (as defined in subsection (gg) of section 3 of the Small Business Act ( 15 U.S.C. 632 ), as added by subsection (a)). (c) Appearances before Congress Section 10 of the Small Business Act ( 15 U.S.C. 639 ), as amended by section 102(a), is further amended by adding at the end the following new subsection: (j) Appearances before Congress The Administrator or the Associate Administrator for the Office of Entrepreneurial Development shall annually appear before the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives to provide information on the effectiveness of programs of resource partners, including a description of, with respect to the year preceding the date of such appearance— (1) the number of small business concerns that participate in each such program; (2) the number of small business concerns that benefit from each such program; (3) the number of new small business concerns created through the assistance of each such program; (4) the number of jobs created through the assistance of each such program; (5) the number of trainings each such resource partner hosted and the number of attendees at each such training; and (6) information on outreach to graduates from career and technical education programs or programs of study, small business concerns in rural areas (as such term is defined in subsection (m)(11)), small business concerns located in qualified opportunity zones (as defined in section 1400Z–1 of the Internal Revenue Code of 1986), and small business concerns with not more than 20 full-time employees. . 302. Assistance for covered concerns in certain programs of the Small Business Administration (a) Small business development centers Section 21(c)(3)(N) of the Small Business Act ( 15 U.S.C. 648(c)(3)(N) ) is amended— (1) in the matter preceding clause (i), by inserting , small business concerns located in qualified opportunity zones (as defined in section 1400Z–1 of the Internal Revenue Code of 1986), and small business concerns with not more than 20 full-time employees (in this subparagraph referred to as covered concerns ) after rural small businesses ; (2) in clause (i), by striking market— and inserting market; ; (3) in clause (ii), by striking rural small businesses and inserting covered concerns ; and (4) in clause (iii), by striking rural small business concerns and inserting covered concerns . (b) Women’s business centers Section 29(b) of the Small Business Act ( 15 U.S.C. 656(b) ) is amended— (1) in paragraph (2), by striking and at the end; (2) in paragraph (3), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following new paragraph: (4) assistance for rural small businesses, small business concerns located in qualified opportunity zones (as defined in section 1400Z–1 of the Internal Revenue Code of 1986), and small business concerns with not more than 20 full-time employees; . 303. Inclusion of career and technical education in certain programs of the Small Business Administration (a) Career and technical education defined Section 3 of the Small Business Act ( 15 U.S.C. 632 ), as amended by section 301, is further amended by adding at the end the following new subsection: (hh) Career and technical education The term career and technical education has the meaning given the term in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2302 ). . (b) Small business development centers Section 21(c)(3) of the Small Business Act ( 15 U.S.C. 648(c)(3) ) is amended— (1) in subparagraph (T), by striking and at the end; (2) in clause (v) of the first subparagraph (U) (relating to succession planning), by striking the period at the end and inserting a semicolon; (3) by redesignating the second subparagraph (U) (relating to training on domestic and international intellectual property protections) as subparagraph (V); (4) in clause (ii)(II) of subparagraph (V), as so redesignated, by striking the period at the end and inserting a semicolon; and (5) by adding at the end the following new subparagraphs: (W) assisting small businesses in hiring graduates from career and technical education programs or programs of study; (X) assisting graduates from career and technical education programs or programs of study in starting up a small business concern. . (c) Women’s business centers Section 29(b) of the Small Business Act ( 15 U.S.C. 656(b) ), as amended by section 302, is further amended by adding at the end the following new paragraphs: (5) assistance for small business concerns to hire graduates from career and technical education programs or programs of study; and (6) assistance for graduates of career and technical education programs or programs of study to start up a small business concern. . 304. Assistance for small businesses affected by supply chain disruptions, labor shortages, and cyberattacks Section 21(a) of the Small Business Act ( 15 U.S.C. 648(a) ) is amended by adding at the end the following new paragraph: (9) Assistance for small businesses affected by supply chain disruptions, labor shortages, and cyberattacks The Administrator shall use, as the Administrator determines appropriate, resource partners to provide business counseling and training to any small business concern adversely affected by supply chain disruptions, labor shortages, and cyberattacks. . 305. Requirements on use of assistance by resource partners (a) In general The following requirements shall apply with respect to any covered assistance provided to a resource partner by the Small Business Administration: (1) Notwithstanding any other provision of law, a resource partner may use not more than an amount equal to 10 percent of the annual budget of such resource partner for marketing (including website development and maintenance) for upcoming events or counseling opportunities for small business concerns. (2) A resource partner may not use any amounts provided through any such covered assistance for fundraising for a political entity or a nonprofit organization. (b) Termination The Administrator shall terminate covered assistance if amounts provided through such covered assistance are used in violation of subsection (a)(2). (c) Applicability This section and the requirements of this section shall apply— (1) with respect to covered assistance that is a grant or a prize, that is provided on or after the date of the enactment of this Act; and (2) with respect to covered assistance that is a cooperative agreement or a contract, that is entered into on or after the date of the enactment of this Act. (d) Definitions In this section: (1) Covered assistance The term covered assistance means financial assistance in the form of a grant, prize, cooperative agreement, or contract. (2) Resource partner The term resource partner has the meaning given such term in section 3 of the Small Business Act ( 15 U.S.C. 632 ), as amended by this Act. IV Small Business Administration Contracting Programs 401. Annual testimony Section 10 of the Small Business Act ( 15 U.S.C. 639 ), as amended by section 301(c), is further amended by adding at the end the following new subsection: (k) Appearances before Congress The head of the Office of Government Contracting and Business Development of the Small Business Administration shall annually 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 effectiveness of Federal procurement programs operated by the Administration, including— (1) the number of small business concerns that participate in each such program; (2) the number of contracts and total dollar amount awarded through a competition restricted to small business concerns under each such program; (3) the number of sole source contracts and total dollar amount awarded to small business concerns under each such program; (4) a description of assistance provided by the Administration or resource partners to small business concerns that participate in each such program; and (5) any other data relating to tracking the long-term success and growth of small business concerns that participate in such programs. . 402. Improvements to accuracy in Federal small business spending Section 15(g) of the Small Business Act ( 15 U.S.C. 644(g) ) is amended by adding at the end the following new paragraph: (4) Limitation on credit for meeting contracting goals (A) In general A Federal agency may allocate credit for a single prime contract not more than two times for purposes of demonstrating compliance with the Governmentwide goals established under paragraph (1)(A). (B) Allocation of credit The first allocation of credit described in subparagraph (A) shall be applied toward the goal described in paragraph (1)(A)(i). A second allocation of such credit shall be applied as follows: (i) If the prime contract was awarded pursuant to a requirement to set aside such prime contract for a small business concern described in clause (ii), (iii), (iv), or (v) of paragraph (1)(A), the credit shall be applied toward the goal described in the appropriate clause that corresponds with the award. (ii) If the prime contract was not awarded pursuant to a requirement to set aside such prime contract for a small business concern described in clause (ii), (iii), (iv), or (v) of paragraph (1)(A), the credit shall be applied toward any applicable goal described in such paragraph (1)(A). (C) Credit defined In this paragraph, the term credit means the value of a prime contract. . 403. Strengthening subcontracting (a) Information on first tier subcontractors Section 8(d) of the Small Business Act ( 15 U.S.C. 637(d) ) is amended by adding at the end the following new paragraph: (18) Information on first tier subcontractors (A) In general Not later than seven days after a prime contractor awards a subcontract to a first tier subcontractor that is small business concern under a contract with respect to which such prime contractor is required to develop a subcontracting plan under paragraph (4) or (5), the prime contractor shall provide to the contracting officer for such contract— (i) a list of all first tier subcontractors for such contract that are small business concerns; and (ii) the contact information described in subparagraph (B). (B) Contact information Not later than three days before the date on which a prime contractor is required to provide information for a contract to a contracting officer under subparagraph (A), each first tier subcontractor of such prime contractor for such contract shall provide to such prime contractor contact information that is— (i) for an individual in the employ of such subcontractor; and (ii) unrelated to any relationship of the subcontractor with the prime contractor as a subcontractor. . (b) Questionnaire on prime contractor engagement with certain subcontractors (1) Development The Administrator shall develop a questionnaire to collect feedback from first tier subcontractors that are small business concerns regarding the engagement of a prime contractor with such subcontractor during the performance of a subcontract the prime contractor awarded to such subcontractor. (2) Availability The Administrator shall make such questionnaire available to Federal agencies. (3) Use of questionnaires (A) In general Each head of a Federal agency shall require contracting officers for such Federal agency to— (i) distribute to first tier subcontractors that are small business concerns voluntary questionnaires regarding the engagement of a prime contractor with such subcontractor during the performance of a subcontract the prime contractor awarded to such subcontractor; and (ii) collect such questionnaires from such first tier subcontractors that elect to respond to such questionnaires. (B) Past performance record A contracting officer may use such questionnaires in any system used by the Federal Government to monitor or record past performance of the prime contractor. (4) Confidentiality A contracting officer shall not disclose the contents of a questionnaire described in paragraph (1) to the prime contractor for the contract to which such questionnaire relates unless the respondent to such questionnaire consents to such disclosure. (5) Definitions In this subsection, the terms Federal agency , first tier subcontractor , and prime contractor have the meanings given, respectively, in section 3 of the Small Business Act ( 15 U.S.C. 632 ). (c) Enhancing subcontracting reporting accountability Section 8(d) of the Small Business Act ( 15 U.S.C. 637(d) ) is amended— (1) in paragraph (7)(B), by adding at the end the following: The timeliness with which a contractor submits reports required pursuant to paragraph (6)(E) shall be considered in any past performance evaluation of such contractor undertaken by the agency. ; and (2) in paragraph (9)— (A) in subparagraph (A), by adding or at the end; (B) in subparagraph (B), by striking or at the end; (C) by striking subparagraph (C); (D) by striking may be considered and inserting shall be considered ; and (E) by adding after contract. the following: The failure of any contractor or subcontractor to comply with assurances provided under paragraph (6)(E) shall be considered a material breach of the relevant contract or subcontract and shall negatively affect any past performance evaluations of the contractor or subcontractor if the contractor or subcontractor did not correct such failure. . V Small Business Administration Duplication 501. Eliminate programs duplicating private sector (a) Community Navigator Pilot Program Section 5004(d) of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9013(d) ) is amended by striking December 31, 2025 and inserting the date of the enactment of the IMPROVE the SBA Act . (b) Growth Accelerators Fund Competition program The Administrator may not carry out the Growth Accelerators Fund Competition program or any similar program or initiative not specifically authorized by law. (c) Regional Innovation Clusters initiative The Administrator may not carry out the Regional Innovation Clusters initiative or any similar program or initiative not specifically authorized by law. 502. Entrepreneurial development service limits The Small Business Act ( 15 U.S.C. 631 et seq. ) is amended— (1) by redesignating section 49 as section 51; and (2) by inserting after section 48 the following new section: 49. Use of authorized entrepreneurial development programs Notwithstanding any other provision of law, the Administrator shall only deliver entrepreneurial development services and entrepreneurial education through a program authorized under section 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 29, or 32 of this Act. . 503. Limitation on new pilot programs until Inspector General recommendations closed Paragraph (3) of section 10(e) of the Small Business Act ( 15 U.S.C. 639(e) ), as added by section 801(b), is amended by adding at the end the following new subparagraph: (D) Limit on new pilot programs The Administrator may not begin any new pilot program not specifically authorized by Congress unless, with respect to each recommendation made to the Administration by the Inspector General of the Small Business Administration, the Administrator has— (i) made the determination described in subparagraph (A); (ii) submitted the report required under subparagraph (C); and (iii) if the Administrator determines to implement such recommendation— (I) implemented the recommendation; and (II) submitted to the Inspector General sufficient evidence of such corrective action, as determined by the Inspector General. . VI Prohibition of Ineligible Use of Funds 601. Prohibition on certain small business concerns (a) In general The Administrator may not provide assistance under any program of the Administration to the following: (1) An entity primarily engaged in lobbying activities, as defined in section 3 of the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1602 ). (2) An entity established for the purpose of conducting public policy research or for engaging in policy advocacy or political strategy, or that otherwise is known as a think tank . (3) An entity— (A) organized under the laws of the People’s Republic of China or the Special Administrative Region of Hong Kong; (B) for which the headquarters or the principal place of business is located in the People’s Republic of China, including the Special Administrative Region of Hong Kong; (C) for which an entity described in subparagraph (B) owns or holds, directly or indirectly, not less than 20 percent of the economic interest of the business concern or entity, including as equity shares or a capital or profit interest in a limited liability company or partnership; or (D) that retains, as a member of the board of directors of the entity, an individual who is a resident of the People’s Republic of China, including the Special Administrative Region of Hong Kong. (4) A person required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938, as amended ( 22 U.S.C. 612 ). (5) A labor organization that is described in section 501(c)(5) of the Internal Revenue Code of 1986 and that is exempt from taxation under section 501(a) of such Code. (6) The Planned Parenthood Federation of America, Inc., or any affiliate or clinic of Planned Parenthood Federation of America, Inc. (7) A person convicted of an offense relating to a misdemeanor or felony assault of a law enforcement officer, or convicted of a felony for actions during or in connection with a riot that resulted in the destruction of a small business concern (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )). 602. Use of proceeds The proceeds of a loan made or guaranteed by the Administrator may not be used for the following: (1) Prepayment of commercial debt. (2) Repayment of Federal debt obligations. VII Ensure All Small Businesses are Served 701. Small business concern equal treatment The Small Business Act ( 15 U.S.C. 631 ), as amended by section 502, is further amended by inserting after section 49 the following new section: 50. Small business concern equal treatment (a) In general Except as provided in subsection (b) and notwithstanding any other provision of law, the order in which any assistance, benefit, or award offered by a program administered by or under the authority of the Administration is provided to individuals and entities eligible for such assistance, benefit, or award shall be determined on a first-come, first-served basis. (b) Eligibility determination For the purposes of a program described in subsection (a), an individual or entity may not be determined ineligible to apply for or receive any assistance, benefit, or award provided under or through such a program solely on the basis of a program requirement that only certain other individuals or entities are eligible to apply for or receive such assistance, benefit, or award in a specified period if, after such period, such individual or entity would be so eligible. (c) Exclusions This section does not apply with respect to any program under section 8(a), 8(d), 29, or 31, or any other procurement program administered by or under the authority of the Administration. (d) Rules of construction (1) Other program requirements Except as provided in this section, nothing in this section may be construed as modifying or eliminating any requirement of any program described in subsection (a). (2) Applicability to subsequent law No provision of law enacted after the date of the enactment of this section may be construed as limiting, superceding, or otherwise affecting this section, except to the extent that it does so by specific reference to this section. . VIII Inspector General of the Small Business Administration 801. Clarification of the responsibilities of the Administrator with respect to the Inspector General of the Small Business Administration (a) Implementation of covered recommendations (1) In general Not later than 45 days after the date on which the Inspector General of the Small Business Administration issues a covered recommendation, the Administrator shall determine whether to implement such covered recommendation. (2) Covered recommendation defined In this subsection, the term covered recommendation means a recommendation made by the Inspector General of the Small Business Administration resulting from a situation for which the President declares— (A) an emergency under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5191 ); (B) a major disaster under section 401 of such Act ( 42 U.S.C. 5170 ); or (C) a national emergency under section 201(a) of the National Emergencies Act ( 50 U.S.C. 1621(a) ). (b) Determinations on recommendations Section 10(e) of the Small Business Act ( 15 U.S.C. 639 ), as amended by section 102(b), is further amended by adding at the end the following new paragraph: (3) Determinations on recommendations (A) In general Not later than 10 days after the date on which the Inspector General issues a recommendation, the Administrator shall make a determination whether or not to implement such recommendation. (B) Implementation Not later than 90 days after the date on which the Administrator makes a determination to implement a recommendation described under subparagraph (A), the Administrator shall fully implement such recommendation. (C) Report Not later than 90 days after the date on which the Administrator makes a determination under subparagraph (A), the Administrator shall submit to the Inspector General a report describing the reasoning for the determination. . (c) Report on fraud recoupment Section 10 of the Small Business Act ( 15 U.S.C. 639 ), as amended by this Act, is further amended by adding at the end the following new subsection: (l) Report on fraud recoupment Not later than the date that is 3 months after the end of the fiscal year in which this subsection is enacted, and not later than the date that is three months after the end of each fiscal year thereafter, the Inspector General of the Small Business Administration shall 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 dollar amount and incidence of fraud recoupment for the Administration for the fiscal year preceding the date of the report. . IX Office of Advocacy 901. Testimony of the Chief Counsel for Advocacy The Chief Counsel for Advocacy of the Small Business Administration shall annually appear before the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate after each report submitted under section 612(a) of title 5, United States Code, to testify on such report and any Federal agency rule that will have a significant economic impact on a substantial number of small entities (as defined under chapter 6 of such title), as determined by the Chief Counsel for Advocacy of the Small Business Administration. 902. Quarterly reports by the Chief Counsel for Advocacy Section 206 of Public Law 94–305 ( 15 U.S.C. 634f ) is amended— (1) by striking The Chief Counsel and inserting the following: (a) In general The Chief Counsel ; and (2) by adding at the end the following new subsection: (b) Quarterly reports The Chief Counsel shall publish a quarterly economic report and analysis on a website of the Office of Advocacy that includes metrics and analysis on inflation and labor and business market conditions for the quarter covered by such report. . 903. Amendment to primary functions and duties of the Office of Advocacy of the Small Business Administration (a) Primary functions Section 202 of Public Law 94–305 ( 15 U.S.C. 634b ) is amended— (1) in paragraph (1), by inserting and the international economy after economy ; (2) in paragraph (3)— (A) by inserting and compile in a public repository after measure ; and (B) by inserting and indirect after direct costs ; (3) in paragraphs (6) and (7), by inserting and rural enterprises after minority enterprises ; (4) in paragraph (8), by striking minority and inserting minority enterprises, rural enterprises, ; (5) in paragraph (9), by striking complete and inserting compete ; and (6) in paragraph (12), by striking serviced-disabled and inserting service-disabled . (b) Duties Section 203(a) of Public Law 94–305 ( 15 U.S.C. 634c ) is amended— (1) in paragraph (3), by inserting and the Small Business Investment Act of 1958 after Small Business Act ; (2) in paragraph (5), by striking and at the end; (3) in paragraph (6), by striking the period at the end and inserting ; and ; and (4) by adding at the end the following: (7) represent the views and interests of small businesses before foreign governments and international entities for the purpose of contributing to regulatory and trade initiatives which may affect small businesses. . X Small Business Administration as a Representative of Small Businesses 1001. Economic headwinds report Section 10 of the Small Business Act ( 15 U.S.C. 639 ), as amended by this Act, is further amended by adding at the end the following new subsection: (m) (1) Not later than the date that is 120 days after the date of the enactment of this subsection, and annually thereafter, the Administrator shall submit to Congress a report on the effects on small business concerns of— (A) the burden of regulatory compliance in the most recently completed fiscal year prior to the date on which such report is submitted; (B) an annual increase greater than two percent in the Consumer Price Index for all-urban consumers, United States city average, as published by the Bureau of Labor Statistics, or if such index shall cease to be published, any successor index or reasonable substitute thereof; and (C) any increases by the Government in any government spending or supplemental unemployment benefits provided for by law in effect on the date of the enactment of this subsection in the most recently completed year prior to the date on which such report is submitted. (2) During the three-year period beginning on the date of the enactment of this Act, in addition to the information described in subparagraphs (A) through (C) of paragraph (1), the Administrator shall include in the report required under such paragraph the following: (A) An analysis of the effects on small business concerns of the social restrictions imposed by Federal, State, or local governments in response to COVID–19, including curfews, quarantines, capacity limits, and social gathering restrictions. (B) An analysis of the effects on small business concerns of increasing the corporate tax rate, the individual tax rate, the capital gains rate, the deduction under section 199A of the Internal Revenue Code of 1986, and the estate tax, including by eliminating the step up in basis. (C) An analysis of the effects on small business concerns of an increase in the Federal minimum wage to $15 per hour. (D) An analysis of the effects on small business concerns of supply chain disruptions in the most recently completed year prior to the date on which such report is submitted. .