Section 1 Short title
This Act may be cited as the “Small Business Development Centers Improvement Act of 2023”.
Small Business Development Centers Improvement Act of 2023
A BILL
To amend the Small Business Act to make improvements to the Small Business Development Center Program, and for other purposes.
Sec. 2 Use of authorized entrepreneurial development programs
by redesignating section 49 as section 50; and
by inserting after section 48 the following new section:
“49. Use of authorized entrepreneurial development programs
“(a) Expanded support for entrepreneurs
“(1) In general—Notwithstanding 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) Notification—The Administrator shall notify Congress before providing any services, education, or support described in paragraph (1)(A).
“(3) Exception—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)).
“(b) Annual report—The 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 defined—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).”
Applicability— 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.
Sec. 3 Data collection by the small business development center association, women’s business centers, and SCORE
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”.
Working group To improve data collection—
Establishment— 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.
Responsibilities— 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.
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 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.
Sec. 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:
“(q) No prohibition of marketing of services—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.”
Sec. 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:
“(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—
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”.
Sec. 8 Limitation on award of grants to small business development centers
In general— 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:
“(r) Limitation on award of grants—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—
“(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.”
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 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.
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—
in clause (vii), by striking “this subparagraph—” and all that follows through the period at the end and inserting “this subparagraph $175,000,000 for each of fiscal years 2024 through 2027.”; and
in clause (viii)—
by striking “shall reserve not less than $1,000,000” and inserting “shall reserve not more than $2,000,000”; and
by striking “shall not exceed $100,000” and inserting “shall not exceed $200,000”.
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 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.”.
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.”
Sec. 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:
“(p) Small business development centers annual report—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—
“(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.”