Women’s Business Centers Improvements Act of 2019

IIB 116TH CONGRESS 1ST SESSION H. R. 4405 IN THE SENATE OF THE UNITED STATES OCTOBER 22, 2019 Received; read twice and referred to the Committee on Small Business and Entrepreneurship AN ACT To amend the Small Business Act to improve the women’s business center program, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 2 HR 4405 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Women’s Business 2 Centers Improvements Act of 2019’’. 3 SEC. 2. AMENDMENTS TO WOMEN’S BUSINESS CENTER 4 PROGRAM. 5 Section 29 of the Small Business Act (15 U.S.C. 656) 6 is amended to read as follows: 7 ‘‘SEC. 29. WOMEN’S BUSINESS CENTER PROGRAM. 8 ‘‘(a) DEFINITIONS.—In this section: 9 ‘‘(1) ASSISTANT ADMINISTRATOR.—The term 10 ‘Assistant Administrator’ means the Assistant Ad- 11 ministrator of the Office of Women’s Business Own- 12 ership established under subsection (k). 13 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en- 14 tity’ means— 15 ‘‘(A) an organization described in section 16 501(c) of the Internal Revenue Code of 1986 17 and exempt from taxation under section 501(a) 18 of such Code; 19 ‘‘(B) a State, regional, or local economic 20 development organization, so long as the orga- 21 nization certifies that grant funds received 22 under this section will not be commingled with 23 other funds; 24 ‘‘(C) an institution of higher education (as 25 defined in section 101 of the Higher Education 26 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 3 HR 4405 RFS Act of 1965 (20 U.S.C. 1001)), unless such in- 1 stitution is currently receiving a grant under 2 section 21; 3 ‘‘(D) a development, credit, or finance cor- 4 poration chartered by a State, so long as the 5 corporation certifies that grant funds received 6 under this section will not be commingled with 7 other funds; or 8 ‘‘(E) any combination of entities listed in 9 subparagraphs (A) through (D). 10 ‘‘(3) SMALL BUSINESS CONCERN OWNED AND 11 CONTROLLED BY WOMEN.—The term ‘small business 12 concern owned and controlled by women’ has the 13 meaning given under section 3(n). 14 ‘‘(4) WOMEN’S BUSINESS CENTER.—The term 15 ‘women’s business center’ means the location at 16 which counseling and training on the management, 17 operations (including manufacturing, services, and 18 retail), access to capital, international trade, Govern- 19 ment procurement opportunities, and any other mat- 20 ter that is needed to start, maintain, or expand a 21 small business concern owned and controlled by 22 women. 23 ‘‘(5) WOMEN’S BUSINESS CENTER ASSOCIA- 24 TION.—The term ‘Women’s Business Center Asso- 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 4 HR 4405 RFS ciation’ means a membership organization formed by 1 women’s business centers to pursue matters of com- 2 mon concern. 3 ‘‘(b) AUTHORITY.— 4 ‘‘(1) ESTABLISHMENT.—There is established a 5 Women’s Business Center Program under which the 6 Administrator may provide a grant to any eligible 7 entity to operate one or more women’s business cen- 8 ters for the benefit of small business concerns owned 9 and controlled by women. 10 ‘‘(2) USE OF FUNDS.—The women’s business 11 centers shall be designed to provide counseling and 12 training that meets the needs of the small business 13 concerns owned and controlled by women, especially 14 socially or economically disadvantaged women, and 15 shall provide— 16 ‘‘(A) financial assistance, including train- 17 ing and counseling in how to apply for and se- 18 cure business credit and investment capital, 19 preparing and presenting financial statements, 20 and managing cash flow and other financial op- 21 erations of a small business concern; 22 ‘‘(B) management assistance, including 23 training and counseling in how to plan, orga- 24 nize, staff, direct, and control each major activ- 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 5 HR 4405 RFS ity and function of a small business concern; 1 and 2 ‘‘(C) marketing assistance, including train- 3 ing and counseling in identifying and seg- 4 menting domestic and international market op- 5 portunities, preparing and executing marketing 6 plans, developing pricing strategies, locating 7 contract opportunities, negotiating contracts, 8 and utilizing varying public relations and adver- 9 tising techniques. 10 ‘‘(3) TYPES OF GRANTS.— 11 ‘‘(A) INITIAL GRANT.—The amount of an 12 initial grant, which shall be for a 5-year term, 13 provided under this subsection to an eligible en- 14 tity shall be not more than $300,000 annually 15 (as such amount is annually adjusted by the 16 Administrator to reflect the change in infla- 17 tion). 18 ‘‘(B) CONTINUATION GRANTS.—The Ad- 19 ministrator may award a continuation grant, 20 which shall be for a 5-year term, of not more 21 than $300,000 annually (as such amount is an- 22 nually adjusted by the Administrator to reflect 23 the change in inflation) to an eligible entity 24 that received an initial grant under subpara- 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 6 HR 4405 RFS graph (A). There shall be no limitation on the 1 number of continuation grants an eligible entity 2 may receive under this section. 3 ‘‘(c) APPLICATION.— 4 ‘‘(1) INITIAL GRANTS AND CONTINUATION 5 GRANTS.—To receive an initial grant or continuation 6 grant under this section, an eligible entity shall sub- 7 mit an application to the Administrator in such 8 form, in such manner, and containing such informa- 9 tion as the Administrator may require, including— 10 ‘‘(A) a certification that the eligible enti- 11 ty— 12 ‘‘(i) has designated an executive direc- 13 tor or program manager, who may be com- 14 pensated using grant funds awarded under 15 this section or other sources, to manage 16 the women’s business center for which a 17 grant under subsection (b) is sought; and 18 ‘‘(ii) meets accounting and reporting 19 requirements established by the Director of 20 the Office of Management and Budget; 21 ‘‘(B) information demonstrating the expe- 22 rience and effectiveness of the eligible entity 23 in— 24 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 7 HR 4405 RFS ‘‘(i) providing counseling and training 1 described under subsection (b)(2); 2 ‘‘(ii) providing training and services to 3 a representative number of women who are 4 socially or economically disadvantaged; and 5 ‘‘(iii) working with resource partners 6 of the Administration and other entities; 7 and 8 ‘‘(C) a 5-year plan that— 9 ‘‘(i) includes information relating to 10 the assistance to be provided by the wom- 11 en’s business center in the area in which 12 the women’s business center is located; 13 ‘‘(ii) describes the ability of the eligi- 14 ble entity to meet the needs of the market 15 to be served by the women’s business cen- 16 ter, including the ability to obtain the 17 matching funds required under subsection 18 (e); and 19 ‘‘(iii) describes the ability of the eligi- 20 ble entity to provide counseling and train- 21 ing described under subsection (b)(2), in- 22 cluding to a representative number of 23 women who are socially or economically 24 disadvantaged. 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 8 HR 4405 RFS ‘‘(2) RECORD RETENTION.— 1 ‘‘(A) IN GENERAL.—The Administrator 2 shall maintain a copy of each application sub- 3 mitted under this subsection for not less than 4 5 years. 5 ‘‘(B) PAPERWORK REDUCTION.—The Ad- 6 ministrator shall take steps to reduce, to the 7 maximum extent practicable, the paperwork 8 burden associated with carrying out subpara- 9 graph (A). 10 ‘‘(d) SELECTION OF ELIGIBLE ENTITIES.— 11 ‘‘(1) IN GENERAL.—In selecting recipients of 12 initial grants, the Administrator shall consider— 13 ‘‘(A) the experience of the applicant in pro- 14 viding entrepreneurial training; 15 ‘‘(B) the amount of time needed for the 16 applicant to commence operation of a women’s 17 business center; 18 ‘‘(C) in consultation with a Women’s Busi- 19 ness Center Association, the capacity of the ap- 20 plicant to meet the accreditation standards es- 21 tablished under subsection (k)(4) in a timely 22 manner; 23 ‘‘(D) the ability of the applicant to sustain 24 operations, including the applicant’s ability to 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 9 HR 4405 RFS obtain sufficient non-Federal funds, for a 5- 1 year period; 2 ‘‘(E) the proposed location of a women’s 3 business center to be operated by the applicant 4 and the location’s proximity to Veteran Busi- 5 ness Outreach Centers and to recipients of 6 grants under section 8(b)(1) or 21; 7 ‘‘(F) the population density of the area to 8 be served by the women’s business center oper- 9 ated by the applicant; and 10 ‘‘(G) the advice and counsel of a Women’s 11 Business Center Association to determine areas 12 with unmet needs and the likelihood that the 13 recipient will become accredited. 14 ‘‘(2) SELECTION CRITERIA.— 15 ‘‘(A) RULEMAKING.—The Administrator 16 shall issue regulations to specify the criteria for 17 review and selection of applicants under this 18 subsection. 19 ‘‘(B) MODIFICATIONS PROHIBITED AFTER 20 ANNOUNCEMENT.—With respect to a public an- 21 nouncement of any opportunity to be awarded 22 a grant under this section made by the Admin- 23 istrator pursuant to subsection (l)(1), the Ad- 24 ministrator may not modify regulations issued 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 10 HR 4405 RFS pursuant to subparagraph (A) with respect to 1 such opportunity unless required to do so by an 2 Act of Congress or an order of a Federal court. 3 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 4 in this paragraph may be construed as prohib- 5 iting the Administrator from modifying the reg- 6 ulations issued pursuant to subparagraph (A) 7 (after providing an opportunity for notice and 8 comment) as such regulations apply to an op- 9 portunity to be awarded a grant under this sec- 10 tion that the Administrator has not yet publicly 11 announced pursuant to subsection (l)(1). 12 ‘‘(e) MATCHING REQUIREMENTS.— 13 ‘‘(1) IN GENERAL.—Subject to paragraph (5), 14 upon approval of an application submitted under 15 subsection (c), the eligible entity shall agree to ob- 16 tain contributions from non-Federal sources— 17 ‘‘(A) in the first and second year of the 18 term of an initial grant, if applicable, 1 non- 19 Federal dollar for each 2 Federal dollars; and 20 ‘‘(B) in each subsequent year of the term 21 of an initial grant, if applicable, or for the term 22 of a continuation grant, 1 non-Federal dollar 23 for each Federal dollar. 24 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 11 HR 4405 RFS ‘‘(2) FORM OF MATCHING FUNDS.—Not more 1 than one-half of non-Federal matching funds de- 2 scribed under paragraph (1) may be in the form of 3 in-kind contributions that are budget line items only, 4 including office equipment and office space. 5 ‘‘(3) SOLICITATION.—Notwithstanding any 6 other provision of law, an eligible entity may— 7 ‘‘(A) solicit cash and in-kind contributions 8 from private individuals and entities to be used 9 to operate a women’s business center; and 10 ‘‘(B) use amounts made available by the 11 Administrator under this section for the cost of 12 such solicitation and management of the con- 13 tributions received. 14 ‘‘(4) DISBURSEMENT OF FUNDS.—The Admin- 15 istrator may disburse an amount not greater than 16 25 percent of the total amount of a grant awarded 17 to an eligible entity before such eligible entity ob- 18 tains the non-Federal matching funds described 19 under paragraph (1). 20 ‘‘(5) FAILURE TO OBTAIN MATCHING FUNDS.— 21 If an eligible entity fails to obtain the required 22 matching funds described under paragraph (1), the 23 eligible entity may not be eligible to receive advance 24 disbursements pursuant to paragraph (4) during the 25 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 12 HR 4405 RFS remainder of the term, if applicable, of an initial 1 grant awarded under this section. Before approving 2 such eligible entity for a continuation grant under 3 this section, the Administrator shall make a written 4 determination, including the reasons for such deter- 5 mination, of whether the Administrator believes that 6 the eligible entity will be able to obtain the requisite 7 funding under paragraph (1) for such continuation 8 grant. 9 ‘‘(6) WAIVER OF NON-FEDERAL SHARE.— 10 ‘‘(A) IN GENERAL.—Upon request by an 11 eligible entity, and in accordance with this para- 12 graph, the Administrator may waive, in whole 13 or in part, the requirement to obtain non-Fed- 14 eral matching funds for a grant awarded under 15 this section for the eligible entity for a 1-year 16 term of the grant. The Administrator may not 17 issue such a waiver for more than a total of 2 18 consecutive 1-year terms. 19 ‘‘(B) CONSIDERATIONS.—In determining 20 whether to issue a waiver under this paragraph, 21 the Administrator shall consider— 22 ‘‘(i) the economic conditions affecting 23 the eligible entity; 24 VerDate Sep 11 2014 23:57 Oct 22, 2019 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H4405.RFS H4405 kjohnson on DSK79L0C42 with BILLS 13 HR 4405 RFS ‘‘(ii) the demonstrated ability of the 1 eligible entity to raise non-Federal funds; 2 and 3 ‘‘(iii) the performance of the eligible 4 entity under the initial grant. 5 ‘‘(C) LIMITATION.—The Administrator 6 may not issue a waiver under this paragraph if 7 the Administrator determines that granting the 8 waiver would undermine the credibility of the 9 Women’s Business Center Program. 10 ‘‘(7) EXCESS NON-FEDERAL DOLLARS.—The 11 amount of non-Federal dollars obtained by an eligi- 12 ble entity that is a [Text truncated for display. 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