HR5367-118

1. Short title This Act may be cited as the Small Business Development Centers Improvement Act of 2023.

2. Use of authorized entrepreneurial development programs The Small Business Act (15 U.S.C. 631 et seq.) is amended— by redesignating section 49 as section 50; and by inserting after section 48 the following new section: Notwithstanding any other provision of law and except as provided in paragraph (3), the Administrator— shall only deliver entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services) through a program of the Administration that was established before the date of the enactment of this section; and may not establish a program after the date of the enactment of this Act to provide such services, education, or support without explicit authority provided by an Act of Congress. The Administrator shall notify Congress before providing any services, education, or support described in paragraph (1)(A). This section does 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)). The Administrator shall include in the annual report required under section 10(a) the following information: A list of all covered activities undertaken through a program of the Administration during the fiscal year preceding the date of the report, including— a description and operating details for each such program and the covered activities conducted under each such program; operating circulars, manuals, notices of awards, notices of funding opportunities, and standard operating procedures for each such program and the covered activities conducted under each such program; a description of the process used to provide awards for covered activities conducted under each such program; a list of all recipients of awards under each such program, 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; the total amount of funding obligated for each such program and the covered activities conducted under each such program for the fiscal year preceding the date of the report; and the names and titles of the individuals responsible for carrying out each such program. In this subsection, the term covered activity means entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services). Subsection (b) of section 49 of the Small Business Act (15 U.S.C. 639), as added by this section, shall apply with respect to the first annual report required under section 10(a) of such Act (15 U.S.C. 639(a)) after October 1, 2023. 49.Use of authorized entrepreneurial development programs(a)Expanded support for entrepreneurs(1)In generalNotwithstanding any other provision of law and except as provided in paragraph (3), the Administrator—(A)shall only deliver entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services) through a program of the Administration that was established before the date of the enactment of this section; and(B)may not establish a program after the date of the enactment of this Act to provide such services, education, or support without explicit authority provided by an Act of Congress.(2)NotificationThe Administrator shall notify Congress before providing any services, education, or support described in paragraph (1)(A).(3)ExceptionThis section does 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 reportThe Administrator shall include in the annual report required under section 10(a) the following information:(1)A list of all covered activities undertaken through a program of the Administration during the fiscal year preceding the date of the report, including—(A)a description and operating details for each such program and the covered activities conducted under each such program;(B)operating circulars, manuals, notices of awards, notices of funding opportunities, and standard operating procedures for each such program and the covered activities conducted under each such program;(C)a description of the process used to provide awards for covered activities conducted under each such program;(D)a list of all recipients of awards under each such program, 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 each such program and the covered activities conducted under each such program for the fiscal year preceding the date of the report; and(F)the names and titles of the individuals responsible for carrying out each such program.(2)Covered activity definedIn this subsection, the term covered activity means entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services)..

49. Use of authorized entrepreneurial development programs Notwithstanding any other provision of law and except as provided in paragraph (3), the Administrator— shall only deliver entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services) through a program of the Administration that was established before the date of the enactment of this section; and may not establish a program after the date of the enactment of this Act to provide such services, education, or support without explicit authority provided by an Act of Congress. The Administrator shall notify Congress before providing any services, education, or support described in paragraph (1)(A). This section does 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)). The Administrator shall include in the annual report required under section 10(a) the following information: A list of all covered activities undertaken through a program of the Administration during the fiscal year preceding the date of the report, including— a description and operating details for each such program and the covered activities conducted under each such program; operating circulars, manuals, notices of awards, notices of funding opportunities, and standard operating procedures for each such program and the covered activities conducted under each such program; a description of the process used to provide awards for covered activities conducted under each such program; a list of all recipients of awards under each such program, 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; the total amount of funding obligated for each such program and the covered activities conducted under each such program for the fiscal year preceding the date of the report; and the names and titles of the individuals responsible for carrying out each such program. In this subsection, the term covered activity means entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services).

3. Data collection by the small business development center association, women’s business centers, and SCORE Section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A)) is amended— by striking as provided in this section and and inserting as provided in this section,; and by inserting before the period at the end the following: , and (iv) governing data collection activities related to applicants receiving grants under this section. 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; associations and organizations representing such recipients; contractors that handle data systems for women’s business centers (as described under section 29 of the Small Business Act (15 U.S.C. 656)), small business development centers (as defined in section 3 of such Act (15 U.S.C. 632)), and chapters of the Service Corps of Retired Executives (established under section 8(b)(1)(B) of such Act (15 U.S.C. 637(b)(1)(B))); and officials from the Small Business Administration. The Data Collection Working Group shall— determine the best methods for conducting data collection activities for the Small Business Development Center Program, women’s business centers, and chapters of the Service Corps of Retired Executives; and develop recommendations to create or revise existing systems dedicated to data collection for the Small Business Development Center Program, women’s business centers, and chapters of the Service Corps of Retired Executives. 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 of the Data Collection Working Group pursuant to paragraph (2), including— the recommendations developed under paragraph (2)(B); and a proposed plan for the Administrator of the Small Business Administration to implement such recommendations.

4. Marketing of services Section 21 of the Small Business Act (15 U.S.C. 648), as amended by section 14, is further amended by adding at the end the following: An applicant receiving a grant under this section may use up to 10 percent of program funds to market and advertise the services of such applicant to individuals and small business concerns. (q)No prohibition of marketing of servicesAn applicant receiving a grant under this section may use up to 10 percent of program funds to market and advertise the services of such applicant to individuals and small business concerns..

5. Fees from private partnerships 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: 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. (D)Fees from private partnerships and cosponsorshipsA 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..

7. Confidentiality requirements Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 648(a)(7)(A)) is amended— by striking or telephone number and inserting , telephone number, or email address; and 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.

8. Limitation on award of grants to small business development centers Section 21 of the Small Business Act (15 U.S.C. 648), as amended by this Act, is further amended— in subsection (a)(1)— by striking any women’s business center operating pursuant to section 29,; by striking or a women’s business center operating pursuant to section 29; and by striking and women’s business centers operating pursuant to section 29; and by adding at the end the following: Except for institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001), 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— 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 seeks to renew such a grant, contract, or cooperative agreement after such date. 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. (r)Limitation on award of grantsExcept for institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001), 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..

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 5, is further amended— 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; in subparagraph (A), by striking and develop and inserting and negotiate the development of; and in subparagraph (C)— by striking Whereas; by inserting Program after Center; by striking National and inserting national; and by moving such subparagraph 2 ems to the left.

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..

12. Contract prerequisites Section 21(a)(5)(B) of the Small Business Act (15 U.S.C. 648(a)(5)(B)) is amended by adding at the end the following: If the Associate Administrator fails to issue a determination of an approval for a contract within 10 days after receipt of a request for such determination, such contract shall be deemed to be approved..

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: 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. (C)MarketingThe 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..

14. Annual report on entrepreneurial development activities Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following new subsection: Beginning on the first December 1 after the date of the enactment of this subsection, 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 entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through the Small Business Development Center Program (in this subsection referred to as the Program), including— the total number of hours of counseling and training services provided through the Program; to the extent practicable, the demographics of participants in the Program, which shall include the gender, race, and age of each such participant; the number of participants in the Program who are veterans; the number of new businesses started by participants in the Program; to the extent practicable, the number of jobs created or retained with assistance from the Program; to the extent practicable, the amount of capital secured by participants in the Program, including through loans and equity investment; the number of participants in the Program receiving financial assistance, including the type and dollar amount, under a loan program of the Administration; 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; the number of referrals of individuals counseled or trained through the Program to other resources and programs of the Administration; the results of satisfaction surveys of participants in the Program, including a summary of any comments received from such participants; and any recommendations by the Administrator or the National Small Business Development Center Advisory Board (established under subsection (i)) to improve the delivery of services by the Program. (p)Small business development centers annual reportBeginning on the first December 1 after the date of the enactment of this subsection, 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 entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through the Small Business Development Center Program (in this subsection referred to as the Program), including—(1)the total number of hours of counseling and training services provided through the Program;(2)to the extent practicable, the demographics of participants in the Program, which shall include the gender, race, and age of each such participant;(3)the number of participants in the Program who are veterans;(4)the number of new businesses started by participants in the Program;(5)to the extent practicable, the number of jobs created or retained with assistance from the Program;(6)to the extent practicable, the amount of capital secured by participants in the Program, including through loans and equity investment;(7)the number of participants in the Program receiving financial assistance, including the type and dollar amount, under a loan program of the Administration;(8)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;(9)the number of referrals of individuals counseled or trained through the Program to other resources and programs of the Administration;(10)the results of satisfaction surveys of participants in the Program, including a summary of any comments received from such participants; and(11)any recommendations by the Administrator or the National Small Business Development Center Advisory Board (established under subsection (i)) to improve the delivery of services by the Program..