[House Hearing, 111 Congress]
[From the U.S. Government Publishing Office]
SUBCOMMITTEE ON RURAL DEVELOPMENT,
ENTREPRENEURSHIP AND TRADE MARKUP ON
ENTREPRENEURIAL DEVELOPMENT
PROGRAMS LEGISLATION
=======================================================================
HEARING
before the
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
APRIL 30, 2009
__________
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Small Business Committee Document Number 111-118
Available via the GPO Website: http://www.access.gpo.gov/congress/house
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HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA M. VELAZQUEZ, New York, Chairwoman
DENNIS MOORE, Kansas
HEATH SHULER, North Carolina
KATHY DAHLKEMPER, Pennsylvania
KURT SCHRADER, Oregon
ANN KIRKPATRICK, Arizona
GLENN NYE, Virginia
MICHAEL MICHAUD, Maine
MELISSA BEAN, Illinois
DAN LIPINSKI, Illinois
JASON ALTMIRE, Pennsylvania
YVETTE CLARKE, New York
BRAD ELLSWORTH, Indiana
JOE SESTAK, Pennsylvania
BOBBY BRIGHT, Alabama
PARKER GRIFFITH, Alabama
DEBORAH HALVORSON, Illinois
SAM GRAVES, Missouri, Ranking Member
ROSCOE G. BARTLETT, Maryland
W. TODD AKIN, Missouri
STEVE KING, Iowa
LYNN A. WESTMORELAND, Georgia
LOUIE GOHMERT, Texas
MARY FALLIN, Oklahoma
VERN BUCHANAN, Florida
BLAINE LUETKEMEYER, Missouri
AARON SCHOCK, Illinois
GLENN THOMPSON, Pennsylvania
MIKE COFFMAN, Colorado
Michael Day, Majority Staff Director
Adam Minehardt, Deputy Staff Director
Tim Slattery, Chief Counsel
Karen Haas, Minority Staff Director
.........................................................
(ii)
?
Subcommittee on Rural Development, Entrepreneurship and Trade
HEATH SHULER, Pennsylvania, Chairman
MICHAEL MICHAUD, Maine BLAINE LUETKEMEYER, Missouri,
BOBBY BRIGHT, Alabama Ranking
KATHY DAHLKEMPER, Pennsylvania STEVE KING, Iowa
ANN KIRKPATRICK, Arizona AARON SCHOCK, Illinois
YVETTE CLARKE, New York GLENN THOMPSON, Pennsylvania
(iii)
C O N T E N T S
__________
OPENING STATEMENTS
Page
Shuler, Hon. Heath............................................... 1
Luetkemeyer, Hon. Blaine......................................... 2
Statements for the Record:
H.R. 1803, "Veterans Business Center Act of 2009"................ 9
H.R. 1807, "Educating Entrepreneurs through Today's Technology
Act"........................................................... 19
H.R. 1834, "The Native American Business Development Enhancement
Act of 2009"................................................... 23
H.R. 1838, "Women's Business Center Act"......................... 34
H.R. 1839, "SCORE Act"........................................... 43
H.R. 1842, "Expanding Entrepreneurship Act of 2009".............. 47
H.R. 1845, "The Small Business Development Center Modernization
Act of 2009"................................................... 52
(v)
SUBCOMMITTEE ON RURAL DEVELPMENT,
ENTREPRENEURSHIP AND TRADE MARKUP
ON ENTREPRENEURIAL DEVELOPMENT PROGRAMS LEGISLATION
----------
Thursday, April 30, 2009
U.S. House of Representatives,
Committee on Small Business,
Washington, DC.
The Subcommittee met, pursuant to call, at 10:00 a.m., in
Room 2360 Rayburn House Office Building, Hon. Heath Shuler
[chairman of the Subcommittee] presiding.
Present: Representatives Shuler, Bright, Dahlkemper,
Kirkpatrick, Luetkemeyer and Thompson.
Chairman Shuler. I am pleased this morning to call this
hearing to order.
We often talk about the role that small business plays in
the creation of jobs and with good reason. Small firms generate
between 60 and 80 percent of new positions. Following the
recession in the mid-1990s, they created 3.8 million jobs. With
unemployment expected to reach 9.8 percent in 2010, we could
use that growth today.
But unfortunately, many firms are struggling to make ends
meet. Let's allow them to hire new workers. In the face of
historic economic challenges, we should be investing in
America's job creators. SBA's Entrepreneurial Development
Programs, or ED, do just that. Of all the tools in the small
business toolbox, these are some of the most critical. They
help small firms do everything from draft business plans to
access capital.
Today we will reauthorize and enhance ED programs. The
seven bills before us will not only modernize the program, but
will make it work for our entrepreneurs.
At this time I will yield to the Ranking Member for his
opening statement.
Mr. Luetkemeyer. Good morning, and thank you, Mr. Chairman,
for the opportunity to mark up critical legislation aimed at
making the Entrepreneurial Development Programs more effective
and responsive to the needs of small businesses.
At a time when small businesses are struggling to stay
afloat, we must work to improve the usefulness of these
initiatives. Rather than relying heavily on the government to
spend our way out of this recession, we need to focus on
insuring our small business, truly engines of job creation, are
able to utilize all of the resources already available.
As a small businessman myself, I am pleased to introduce a
bill that will assist my many fellow small business owners and
employees throughout my district in Missouri and all throughout
the country.
Two out of every three jobs created in the U.S. are created
by small businesses, and like every recession before, small
businesses will lead the way this time in economic growth,
determination and innovation.
H.R. 1842, the Expanding Entrepreneurship Act of 2009,
makes several changes to the SBA's Entrepreneurial Development
Programs. My bill aims to expand entrepreneurial job growth by
pulling resources from duplicative government programs into a
streamlined program to help emphasize job creation and
retention. Specifically, this bill requires the SBA to develop
a job creation strategy for 2009-2010, including the agency's
intent for using existing programs to create and retain jobs
throughout the United States.
The SBA Administrator will also be required to collect
measures related to the program performance and job creation,
insuring that existing programs are being used effectively and
duplicative government programs are done away with, and to
insure easy access for entrepreneurs a database of providers of
entrepreneurial development services will be established.
As our country continues to address the economic problems
hurting our families and businesses, we should be growing our
small businesses instead of hindering them with unwanted tax
increases.
I know that the House Small Business Committee and this
Subcommittee recognize how critical small business is to the
economic health of this country. That is why I want to thank my
colleagues for their commitment to sponsoring various pieces of
legislation to improve programs that assist entrepreneurs with
practical and technical skills needed to start and sustain a
business.
As Louis Celli, CEO of the Northeast Veterans Business
Resource Center in Boston, put it at a recent Subcommittee
hearing on this same subject, this Committee has exactly the
right focus by wanting to interweave these programs together
and really force everybody to play in the same sandbox, and by
making entrepreneurial development programs more effective, we
can be not only more responsive to small businesses, but we can
also be better stewards of taxpayers' dollars.
I am please to see my bill and my colleagues' similar piece
of legislation working their way through the legislative
process, and I look forward to seeing this bill become law.
With that, I yield back, Mr. Chairman.
Chairman Shuler. Thank you, sir.
Are there any other members who wish to be recognized for
the purposes of opening remarks?
[No response.]
Chairman Shuler. The first order of business we will
consider, H.R. 1803.
[The Bill H.R. 1803 is included in the appendix.]
Chairman Shuler. That is the Veterans Business Center Act
of 2009, introduced by Representative Nye.
As of today, more than 130,000 troops have returned from
Iraq and Afghanistan. Many of these men and women are now
pursuing entrepreneurship. In fact, veterans already comprise
14 percent of all self-employed Americans. Mr. Nye's
legislation gives these men and women a chance to become
business owners. It does this by establishing a new Veterans
Business Center Program. This step will provide veterans with
dedicated counseling and business training.
Our soldiers have served our country well and deserve a
fair shot at the American dream. For that reason this bill has
the backing of both the American Legion and the VFW. I strongly
support this legislation.
Are there any members who wish to be recognized?
[No response.]
Chairman Shuler. The Committee will now move to consider
H.R. 1803. The Clerk will report the title of the bill.
The Clerk. To amend the Small Business Act to establish a
Veterans Business Center Program and for other purposes.
Chairman Shuler. I ask unanimous consent that the bill in
its entirety be open for amendments at this point. Does any
member seek recognition for the purpose of offering an
amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is on
reporting H.R. 1803 to the full Committee. All in favor say
aye.
[Chorus of ayes.]
Chairman Shuler. Those opposed, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
In terms of ED Programs, it is not enough to have the
proper tools in place. We should be certain that small firms
can access those tools. Representative Thompson's bill, H.R.
1807, will make that happen.
The Educating Entrepreneurs Through Today's Technology Act
provides business owners with critical distance learning tools.
These resources are particularly useful for businesses in rural
areas which may not have the same range of services that other
regions do.
Through H.R. 1807 entrepreneurs in every corner of the
country, from Appalachia to East L.A., can access the training
and resources they need. I urge strong support of this
legislation.
I will recognize Mr. Thompson for his remarks.
Mr. Thompson. Thank you, Mr. Chairman, Mr. Ranking Member.
Thank you for holding this mark-up today to focus on the
Entrepreneurial Development Programs that will strengthen SBA's
capacity to continue to spur economic growth in hard to reach
areas and underserved areas.
For many entrepreneurs in my district in order to access
resources provided by SPA and small business development
centers, they have to drive long distances often through some
pretty tough winters in Pennsylvania. In my rural district, we
have learned to use our limited resources wisely, and during
the hearing for the bills we have marked up today, I had the
privilege of having a witness from my district, Ms. Donna
Kilhoffer, the Program Manager for the Community Education
Council of Elk and Cameron Counties in Pennsylvania, which
provides affordable academic and professional development by
partnering with institutions of higher learning, along with
countless additional partnerships with regional businesses and
industry.
My bill, H.R. 1807, will assist distance learning programs
like those serviced by the Community Education Council in order
to enhance the potential of existing and soon to be
entrepreneurs. H.R. 1807 will allow third parties the
opportunity to provide high quality distance training for a
modest competitive grants process administered by the SBA.
I appreciate the work the Committee has done on this bill,
and I would like to thank the bill's co-sponsors, Mr.
Luetkemeyer, Mr. Connolly, and Mr. Pitts, and Mr. Chairman, I
encourage my colleagues in the Subcommittee to support this
smart government proposal.
And with that I yield back the balance of my time.
Chairman Shuler. Thank you, sir.
Do any other members wish to be recognized on H.R. 1807?
[No response.]
Chairman Shuler. The Committee will now move to consider
H.R. 1807.
[The Bill H.R. 1807 is included in the appendix.]
Chairman Shuler. The Clerk will report the title of the
bill.
The Clerk. To promote distance learning to potential and
existing entrepreneurs and for other purposes.
Chairman Shuler. I ask unanimous consent that the bill in
its entirety be open for amendments at this time.
Does any member seek to be recognized for the purpose of
offering an amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is on
reporting H.R. 1807 to the full Committee. All those in favor
say aye.
[Chorus of ayes.]
Chairman Shuler. Those opposed, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
Entrepreneurship is a proven means of fighting poverty. It
can also revitalize struggling communities across this country.
Nowhere is it more important than within the native American
populations.
With that in mind, Representative Kirkpatrick has
introduced H.R. 1834, the Native American Business Development
Enhancement Act of 2009. Native American businesses are growing
at an impressive rate of 84 percent. Clearly, we would like
this trend to continue. For that to happen entrepreneurs must
have access to critical counseling and technical assistant
resources.
H.R. 1834 contains provisions for both. I urge its support.
I will now yield to the bill's sponsor, Representative
Kirkpatrick, for her remarks.
Ms. Kirkpatrick. Thank you, Mr. Chairman, for this
opportunity to consider my bill, the Native American Business
Development Enhancement Act.
Our tribal communities make do with less even when times
are good, and in these tough economic times, we can do more to
help them build their communities and develop their local
economies. This bill will accomplish that by expanding the
assistance available to Indian, Alaska Native, and Native
Hawaiian small business entrepreneurs under the Small Business
Act by providing essential training and assistance and making
it easier to get the capital they need to start up or grow
their businesses.
The measure will be a boon to our native populations,
helping to grow their economies and creating new jobs.
And I yield back.
Chairman Shuler. Thank you, Ms. Kirkpatrick.
Are there any other members who wish to be recognized on
H.R. 1834?
[No response.]
Chairman Shuler. The Committee will now move to consider
H.R. 1834.
[The Bill H.R. 1834 is included in the appendix.]
Chairman Shuler. The Clerk will report the title of the
bill.
The Clerk. To amend the Small Business Act to expand and
improve the assistance provided to Indian tribe members, Alaska
Natives, and Native Hawaiians, and for other purposes.
Chairman Shuler. I ask unanimous consent that this bill in
its entirety be open for amendments at this time.
Does any member seek recognition for the purpose of
offering an amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is
reporting H.R. 1834 to the full Committee. All in favor say
aye.
[Chorus of ayes.]
Chairman Shuler. Those opposed, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
The next piece of legislation that we will consider is H.R.
1838, the Women's Business Center Act, introduced by
Representative Fallin. Women's business centers go a long way
to fostering entrepreneurship. H.R. 1834 will provide these
organizations with needed stability.
Through technical assistance and counseling, the bill will
also renew the program's original mission, balancing low income
communities. We often talk about moving women from welfare to
work. Women business centers can move them from welfare to
entrepreneurship.
This legislation will build a program with a strong track
record of encouraging entrepreneurship, and I urge its support.
Is there any member that wishes to be recognized on H.R.
1838?
[No response.]
Chairman Shuler. The Committee will now move to consider
H.R. 1838.
[The bill H.R. 1838 is included in the appendix.]
Chairman Shuler. The Clerk will report the title of the
bill.
The Clerk. To amend the Small Business Act to modify
certain provisions relating to women's business centers and for
other purposes.
Chairman Shuler. I ask unanimous consent that the bill in
its entirety be open for amendments at this time. Does any
member seek recognition for the purpose of offering an
amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is on
reporting H.R. 1838 to the full Committee. All those in favor
say aye.
[Chorus of ayes.]
Chairman Shuler. Those opposed, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
Mentoring programs are vital resources not just for new
entrepreneurs, but for experienced business owners looking to
grow. The next piece of legislation recognizes that fact. H.R.
1839, or the SCORE Act, modernizes networking and mentoring
within the SCORE Program.
The bill introduced by Representative Buchanan establishes
benchmarks for measuring program efficiency. It does this by
qualifying the success of entrepreneurs who participate in its
initiative.
It also establishes standards for mentoring. This bill will
insure the highest quality of service for our small businesses
and I strongly urge its support.
Are there any members who wish to be recognized on H.R.
1839?
[No response.]
Chairman Shuler. The Committee will now move to consider
H.R. 1839.
[The Bill H.R. 1839 is included in the appendix.]
Chairman Shuler. The Clerk will report the title of the
bill.
The Clerk. To amend the Small Business Act to improve SCORE
and for other purposes.
Chairman Shuler. I ask unanimous consent that the bill in
its entirety be open for amendments at this time. Does any
member seek recognition for the purpose of offering an
amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is on
reporting H.R. 1839 to the full Committee. All those in favor
say aye.
[Chorus of ayes.]
Chairman Shuler. Those opposed, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
The next bill we will consider is H.R. 1842, the Expanding
Entrepreneurship Act of 2009, introduced by the Ranking Member
Mr. Luetkemeyer. This legislation streamlines SBA's ED
profiling by increasing coordination and planning. Even more
importantly, it focuses on job creation.
The economy may be struggling, but these programs can help
new businesses get off the ground, allowing them to create jobs
and spur growth.
I urge strong support of this bill, and I commend the
Ranking Member for his efforts of drafting this legislation.
Are there any members who wish to be recognized on H.R.
1842?
[No response.]
Chairman Shuler. The Committee now moves to consider the
bill H.R. 1842.
[The Bill H.R. 1842 is included in the appendix.]
Chairman Shuler. The Clerk will report the title of the
bill.
The Clerk. To amend the Small Business Act to improve the
Small Business Administration's Entrepreneurial Development
Programs and for other purposes.
Chairman Shuler. I ask unanimous consent that this bill in
its entirety be open for amendments at this time. Does any
member seek recognition for the purpose of offering an
amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is on
reporting H.R. 1842 to the full Committee. All those in favor
say aye.
[Chorus of ayes.]
Chairman Shuler. Those oppose, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
As our last piece of business, we will consider H.R. 1845.
This bill, the Small Business Development Center Modernization
Act of 2009, has been introduced by Representative Schock.
Entrepreneurial assistance is critical for small business
tools. In fact, businesses that receive this kind of help are
twice as likely to succeed.
Though Mr. Schock's bill will reform the current SBDC
Program, in doing so it will not only provide existing
initiatives, but it will help firms address new challenges.
While focused on these types of concerns, the legislation
provides much needed tools for entrepreneurs. It helps them
remain competitive in today's market. It also helps them adapt
to the challenges of the economic climate today.
I urge the members' support of this legislation. Is there
any member who wishes to be recognized on H.R. 1845?
[No response.]
Chairman Shuler. The Committee will now move to consider
H.R. 1845.[The Bill H.R. 1845 is included in the appendix.]
Chairman Shuler. The Clerk will report the title of the
bill.
The Clerk. To amend the Small Business Act to modernize
Small Business Development Centers and for other purposes.
Chairman Shuler. I ask unanimous consent that the bill in
its entirety be open for amendments at this time. Does any
member wish to seek recognition for the purpose of offering an
amendment?
[No response.]
Chairman Shuler. Seeing no amendments, the question is on
reporting H.R. 1849 to the full Committee. All those in favor
say aye.
[Chorus of ayes.]
Chairman Shuler. Those opposed, no.
[No response.]
Chairman Shuler. The ayes have it. The bill is adopted and
reported to the full Committee.
This concludes the Subcommittee's business for today. I ask
unanimous consent that the Subcommittee is authorized to
correct section numbers, punctuation, cross-references, and
make necessary technical and conforming corrections on the
bills considered today.
Without objection, so ordered.
This mark-up is adjourned.
[Whereupon, 10:28 a.m., the Subcommittee meeting was
concluded.]
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