[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF: H.R. 4406, ``SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT
ACT OF 2019''; H.R. 4405, ``WOMEN'S BUSINESS CENTERS IMPROVEMENTS ACT
OF 2019''; H.R. 4407, ``SCORE FOR SMALL BUSINESS ACT OF 2019''; H.R.
4387, ``TO ESTABLISH GROWTH ACCELERATOR FUND COMPETITION WITHIN THE
SMALL BUSINESS ADMINISTRATION, AND FOR OTHER PURPOSES''
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
SEPTEMBER 25, 2019
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-046
Available via the GPO Website: www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
37-756 WASHINGTON : 2019
--------------------------------------------------------------------------------------
HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELAZQUEZ, New York, Chairwoman
ABBY FINKENAUER, Iowa
JARED GOLDEN, Maine
ANDY KIM, New Jersey
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
JUDY CHU, California
MARC VEASEY, Texas
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
ADRIANO ESPAILLAT, New York
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANGIE CRAIG, Minnesota
STEVE CHABOT, Ohio, Ranking Member
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
TRENT KELLY, Mississippi
TROY BALDERSON, Ohio
KEVIN HERN, Oklahoma
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
TIM BURCHETT, Tennessee
ROSS SPANO, Florida
JOHN JOYCE, Pennsylvania
Adam Minehardt, Majority Staff Director
Melissa Jung, Majority Deputy Staff Director and Chief Counsel
Kevin Fitzpatrick, Staff Director
C O N T E N T S
OPENING STATEMENTS
Hon. Nydia Velazquez............................................. 1
Hon. Steve Chabot................................................ 2
Additional Material for the Record:
America's SBDC............................................... 12
Association of Women's Business Centers...................... 14
Hon. Steve Chabot Statement.................................. 15
H.R. 4406, ``Small Business Development Centers Improvement
Act of 2019''.............................................. 17
H.R. 4405, ``Women's Business Centers Improvements Act of
2019''..................................................... 28
H.R. 4407, ``SCORE for Small Business Act of 2019''.......... 63
H.R. 4387, ``Growth Accelerator Fund Competition''........... 81
SCORE........................................................ 87
MARKUP OF: H.R. 4406, ``SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT
ACT OF 2019''; H.R. 4405, ``WOMEN'S BUSINESS CENTERS IMPROVEMENTS ACT
OF 2019''; H.R. 4407, ``SCORE FOR SMALL BUSINESS ACT OF 2019''; H.R.
4387, ``TO ESTABLISH GROWTH ACCELERATOR FUND COMPETITION WITHIN THE
SMALL BUSINESS ADMINISTRATION, AND FOR OTHER PURPOSES''
----------
WEDNESDAY, SEPTEMBER 25, 2019
House of Representatives,
Committee on Small Business,
Washington, DC.
The committee met, pursuant to call, at 11:35 a.m., in Room
2360, Rayburn House Office Building. Hon. Nydia M. Velazquez
[chairwoman of the Committee] presiding.
Present: Representatives Velazquez, Finkenauer, Golden,
Kim, Crow, Davids, Chu, Evans, Schneider, Espaillat, Delgado,
Houlahan, Craig, Chabot, Radewagen, Balderson, Hern, Stauber,
Burchett, and Joyce.
Chairwoman VELAZQUEZ. Good morning. The committee will
please come to order.
A quorum being present, this morning's meeting of the
Committee on Small Business will come to order.
Without objection, the Chair is authorized to declare a
recess at any time.
I am pleased to be here today with my good friend and
colleague, Ranking Member Chabot, working on behalf of
America's nearly 30 million small businesses.
Small businesses are the cornerstone of our communities.
When a Main Street business succeeds, we see real job creation
and hard earned dollars get reinvested back into our
neighborhoods, which makes the towns and communities better
places to live, work, and raise a family.
To help small businesses succeed, the SBA offers a robust
entrepreneurial ecosystem that offers free and local counseling
and training to small business owners across the country.
Whether it is helping to create a business plan, navigate the
procurement process, market a new product, or identify trade
opportunities, the SBA, through its resource partners, offers a
wide range of services. On average, this partnership helps more
than a million small business owners every year. These programs
have proven to be a great return on investment.
For every dollar invested in Women's Business Centers
(WBCs), $46 is returned to the economy. And for every Federal
dollar spent on Small Business Development Centers (SBDCs), $2
is returned to the U.S. Treasury, nearly $3 to the states, and
approximately $48 in new capital is generated.
Studies also show that entrepreneurs that receive 3 hours
of counseling and training have higher 1-year survival rates
than firms that receive less counseling. Simply put, the SBA
entrepreneurial development programs offer real value to small
business owners and taxpayers alike.
Throughout this Congress, as the only committee dedicated
to serve small businesses, we have been asking the small
business community what support they need. Are these
entrepreneurial development programs working effectively and
what can the committee do to make improvements?
We have learned that more can be done to expand their
reach, particularly to rural and traditionally underserved
areas. We also heard that we must support the rapid growth of
women-owned firms and do more to promote innovation and create
jobs.
We have taken these recommendations to heart and crafted
four bipartisan bills to strengthen the counseling and training
programs at SBA. The four bills the committee is considering
today are:
H.R. 4406, the ``Small Business Development Centers
Improvement Act of 2019,'' introduced by Mr. Golden and
cosponsored by Vice Ranking Member Radewagen;
H.R. 4405, the ``Women's Business Centers Improvements Act
of 2019,'' introduced by Ms. Davids and cosponsored by Mr.
Hagedorn;
H.R. 4407, the ``SCORE for Small Business Act of 2019,''
introduced by Mr. Hern and cosponsored by Ms. Craig;
H.R. 4387, legislation to establish the Growth Accelerator
Fund Competition within the Small Business Administration,
introduced by Mr. Espaillat and cosponsored by Mr. Balderson.
I am proud to be lending my support for four bipartisan
bills to improve SBA counseling programs and better serve
America's innovators.
As always, I want to thank the Ranking Member for
collaborating on this package. I would also like to thank all
our members, both republican and democrat, for all their
efforts to improve SBA's Entrepreneurial Development Programs.
Your work today proves just how special this committee is
because we put the needs of small businesses above all else.
Finally, I would like to thank our hardworking committee
staff who worked diligently on these bills--Ellen Harrington,
Delia Barr, and Joe Hart.
I would now like to recognize our Ranking Member, Mr.
Chabot, for his opening remarks.
Mr. CHABOT. Thank you, Madam Chairwoman, and thank you for
holding today's markup.
In the interest of time, I am going to give a quick summary
of my opening statement and then submit the full statement for
the record to save time.
The first three bills, H.R. 4406, 4405, and 4407,
reauthorize flagship SBA programs, establish new program-
specific performance metrics and modify reporting requirements
to approve efficiency, transparency, and accountability. These
bills will also set authorization funding at responsible levels
and timeframes to ensure future Congresses can improve and
amend these programs as necessary.
H.R. 4406, the ``Small Business Development Centers
Improvement Act of 2019'' modernizes the SBDC program. It also
includes measures to prevent duplication and overlap of
entrepreneurial development assistance provided by the SBA.
I want to thank Mr. Golden and Ms. Radewagen for their hard
work on this legislation and working in a bipartisan manner.
H.R. 4405, the ``Women's Business Centers Improvement Act
of 2019'' raises the initial 5-year grant amount and indexes it
for inflation. With the award increase comes a new governing
body, the Women's Business Centers Association, which will
facilitate accreditation and standardization of WBCs.
I would like to thank Ms. Davids and Mr. Hagedorn for their
leadership on this bill.
H.R. 4407, the ``SCORE for Small Business Act of 2019''
establishes new compliance and oversight requirements to
protect taxpayer dollars and sets new outcome-based performance
goals to ensure the program meets the SBA standards and
congressional intent.
I want to thank Mr. Hern and Ms. Craig for their hard work
on this bill.
The fourth and final bill we are considering is H.R. 4387,
which codifies the SBA's Growth Accelerator Fund Competition. I
am proud to say that three Cincinnati organizations have won a
$50,000 prize from this fund--the Brandery, First Batch, and
Mortar. As an authorized program rather than an SBA
administrator initiative, the competition will now be subject
to greater congressional oversight, and that is a good thing.
Thank you to Mr. Espaillat and Mr. Balderson for their
leadership on this bill.
Each bill has been informed by oversight findings, program
feedback, and agency transparency. Thank you to our members on
both sides of the aisle, again, for working in a bipartisan
manner here. They have all taken leadership roles in sponsoring
and cosponsoring these bills. We are very appreciative of that.
I look forward to working with each of them as I know
Chairwoman Velazquez does as well, and we are going to continue
to pass in this Committee good legislation.
I thank the Chairwoman for that and yield back.
Chairwoman VELAZQUEZ. The gentleman yields back. Thank you,
Mr. Chabot.
Before we get into the individual bills, are there any
members present who seek recognition for the purpose of making
an opening statement?
H.R. 4406
Seeing none, we will move to consideration of H.R. 4406,
the ``Small Business Development Centers Improvement Act,''
introduced by Mr. Golden and cosponsored by Ms. Radewagen,
which modernizes and strengthens the SBDC network.
I would now like to recognize the bills sponsor, the
gentleman from Maine, Mr. Golden, for an opening statement.
Mr. GOLDEN. Thank you, Madam Chair.
Given that Small Business Development Centers (SBDCs) are
the largest resource partner to the SBA, it is particularly
important for this committee to keep the program up to date and
performing at a high level for small businesses throughout the
country. In Maine, the state's lead SBDC runs 11 outreach
locations in my district in partnership with regional economic
development entities enabling small businesses in Maine's rural
communities to access valuable assistance.
While the centers have had many successes, we have learned
lessons about ways to improve the program in the years since it
was reauthorized in 2004. That is why I am excited to lead this
bill alongside Vice Ranking Member Radewagen to reauthorize the
program.
The ``Small Business Development Centers Improvement Act of
2019'' will make a number of positive changes to improve
oversight, better enable SBDCs to partner with other
organizations, bolster the center accreditation process, and
improve the voice of SBDCs in setting the program's direction.
I am particularly glad that the bill will help broaden rural
small business access to SBDC assistance by clarifying that
centers are allowed to market and advertise their services.
Rural access to SBA resources is a key issue for my district.
This change is going to help address this need. Finally, the
bill will authorize appropriations at the level of $175 million
for fiscal years 2020 through 2023.
I would like to thank the Chairwoman, the Ranking Member
and their staff for forging a bipartisan path forward on the
reauthorization of this important program. I would also like
thank Vice Ranking Member Radewagen for co-leading this bill
with me, as well as Mr. Hagedorn and Mr. Evans for joining as
cosponsors.
To conclude, I would ask unanimous consent that a letter of
support for H.R. 4406 from America's SBDCs be entered into the
record.
I yield back.
Chairwoman VELAZQUEZ. Without objection, so ordered.
The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 4406?
Mrs. RADEWAGEN. Thank you, Madam Chairwoman.
Chairwoman VELAZQUEZ. The gentlelady from American Samoa is
now recognized for 5 minutes.
Mrs. RADEWAGEN. Thank you, Madam Chairwoman and Ranking
Member Chabot.
I want to add my support for H.R. 4406, the ``Small
Business Development Centers Improvement Act.'' Small Business
Development Centers are the organizations that make sure our
small businesses get help at the local level. SBDCs help
entrepreneurs to grow, create jobs, and ultimately succeed.
There are more than 1,000 SBDCs with locations in every
state and territory, including in my home of American Samoa.
H.R. 4406 will help more small businesses to get to that goal
of economic success, which in turn benefits local communities
and our nation's economy.
Thank you to Mr. Golden for working with me on this
legislation. I ask that we support this bill, and I yield back.
Chairwoman VELAZQUEZ. The gentlelady yields back.
And now I recognize the Ranking Member, Mr. Chabot.
Mr. CHABOT. Thank you, Madam Chairwoman. I will be brief.
I want to thank Chairwoman Velazquez, Mr. Golden, and Mrs.
Radewagen for offering this bill. This legislation will
streamline SBA and SBDC processes and reduce programmatic
duplication to maximize the program's impact on America's small
businesses.
I urge my colleagues to support it and yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
And now I would like to offer my strong support to this
bill. I want to thank both members, Mr. Golden and Mrs.
Radewagen for working on a bipartisan bill to produce a bill
that really addresses the needs and changes that are happening
to the SBDCs.
SBDCs are the largest resource partner of the SBA with
nearly 1,000 centers throughout the country. Over the years,
Congress has asked them to take on additional responsibilities
ranging from cybersecurity to export promotion. Increasing the
authorization level to $175 million would allow the program to
grow and reach more American entrepreneurs.
I urge my colleagues to support this legislation.
If there is no further discussion, the committee will move
to consideration of H.R. 4406.
The clerk will report the title of the bill.
The CLERK. H.R. 4406, the ``Small Business Development
Centers''----
Chairwoman VELAZQUEZ. Without objection, H.R. 4406 is
considered as read and open for amendment at any point.
Are there any members who wish to offer an amendment?
Seeing none, the question is now on H.R. 4406.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
4406 is agreed to.
The question now occurs on reporting H.R. 4406 to the
House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
And H.R. 4406 is reported to the House.
Without objection, the Committee staff is authorized to
correct punctuation, make other necessary technical
corrections, and conforming changes.
Without objection, members shall also be entitled to 2 days
to file additional supplemental, dissenting, and minority
views.
H.R. 4405
Our second bill today is H.R. 4405, the ``Women's Business
Centers Improvements Act of 2019,'' introduced by Ms. Davids
and cosponsored by Mr. Hagedorn. The bill will modernize and
strengthen the Women's Business Centers.
I would now like to recognize the gentlelady from Kansas,
Ms. Davids, the sponsor of the bill, for an opening statement
on H.R. 4405.
Ms. DAVIDS. Thank you, Chairwoman.
I am glad the committee is considering this bill today, the
``Women's Business Centers Improvements Act of 2019.'' Women's
Business Centers provide a full range of counseling and
training services for small businesses primarily owned by
women. This bipartisan bill, which I introduced with
Representative Hagedorn, will reauthorize Women's Business
Centers for 4 years, increase the authorization level to $31.5
million, and increase the cap on individual center grants for
the first time since the program began in 1988.
Increasing the cap on center grants will allow centers
across the country to expand their services and outreach. A
great example of the possibilities for WBCs once the caps on
individual center grants are increased is the Kansas City
Women's Business Center located in Fairway, Kansas, in the
district that I now represent.
The Kansas City Women's Business Center services women
business owners in Kansas City on both sides of the state line
and the entire state of Kansas. The Kansas City Women's
Business Center already serves over 600 clients annually
through business trainings, workshops, consoling, and access to
capital programs. With increased funding, the Kansas City
Women's Business Center can even better expand their counseling
and outreach across a larger geographic region.
In order to ensure continued excellence in the centers
across the country, this legislation also establishes an
accreditation program run by the Association of Women's
Business Centers.
At this time, I would like to enter into the record a
letter of support for this legislation from Corinne Hodges, the
CEO of the Association of Women's Business Centers.
I look forward to providing our Women's Business Centers
across the country with increased funding for the incredible
work they do, and thank you for considering this legislation.
Chairwoman VELAZQUEZ. Without objection, so ordered.
Are there any other members who wish to be recognized for a
statement of H.R. 4405?
Mr. CHABOT. I will take it, Madam Chair.
Mr. Hagedorn is not able to be here so I will speak very
briefly.
I want to thank the Chairmwoman. I want to also thank Ms.
Davids and Mr. Hagedorn for their leadership on this bill. H.R.
4405 will bring long overdue modernizations to the WBC program.
I urge all my colleagues on both sides of the aisle to support
it, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Now I would like to recognize myself in support of this
legislation.
The legislation that we are considering today will increase
the authorization to $31.5 million and lift the cap on
individual center grants to $300,000, allowing more established
centers to expand their reach to more women entrepreneurs,
particularly the socially and economically disadvantaged. Women
are the fastest growing sector of entrepreneurs, and as more
women establish themselves as business owners, these centers
are critical in addressing the whole range of women's
entrepreneurial needs. H.R. 4405 makes key changes to the
program, enabling the WBCs to serve more of America's 12.3
million women-owned small businesses.
I want to thank Ms. Davids and Mr. Hagedorn for their
collaboration, and I urge my colleagues to support the bill.
If there is no further discussion, the committee will move
on to consideration of H.R. 4405.
The clerk will report the title of the bill.
The CLERK. H.R. 4405, ``Women's''----
Chairwoman VELAZQUEZ. Without objection, H.R. 4405 is
considered as read and open for amendment at any point.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 4405.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
4405 is agreed to.
The question now occurs on reporting H.R. 4405 to the
House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 4405 is reported to the House.
Without objection, committee staff is authorized to correct
punctuation, make other necessary technical corrections, and
conforming changes.
Without objection, members shall also be entitled to 2 days
to file additional supplemental, dissenting, and minority
views.
H.R. 4407
The next bill for consideration today is H.R. 4407, the
``SCORE for Small Business Act of 2019,'' introduced by Mr.
Hern and cosponsored by Ms. Craig.
This legislation will restore integrity to the SCORE
program and ensure that the valuable business mentoring and
training programs continue to serve America's small business
owners.
I would now like to recognize the gentleman from Oklahoma,
Mr. Hern, for an opening statement.
Mr. HERN. Thank you, Madam Chairwoman.
As you all may know, SCORE is a nonprofit organization
composed of active or retired business executives who act as
mentors for entrepreneurs. SCORE volunteers provide face-to-
face counseling on a whole host of business issues. Business
planning, budgeting, marketing, and financing, all at no charge
to entrepreneurs.
For over 50 years, SCORE has helped over 11 million
entrepreneurs, and today, SCORE has over 300 chapters and more
than 10,000 volunteers. This includes the Tulsa chapter, which
is located in my district and currently has over 40 volunteers.
My bill, H.R. 4407, would help to continue the success by
reauthorizing the program and by adding new program safeguards,
data standards, and reporting requirements. These provisions
will further increase the program's integrity and help SCORE to
assist even more small firms, which are all supported by SCORE.
To emphasize this support, I ask for unanimous consent, Madam
Chairwoman, to add their support letter to the record.
Chairwoman VELAZQUEZ. Without objection, so ordered.
Mr. HERN. Thank you.
I would also like to thank the gentlelady from Minnesota,
Ms. Craig. Thank you for being an original cosponsor on this
important legislation, and the gentleman from Minnesota, Mr.
Hagedorn, for cosponsoring this legislation as well.
Thank you, Madam Chairwoman, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 4407?
The gentlelady from Minnesota, Ms. Craig, is recognized for
5 minutes.
Ms. CRAIG. Thank you, Madam Chairwoman. And thank you, too,
Congressman Hern, for your work on this bill.
I am proud to cosponsor H.R. 4407, bipartisan legislation
that will ensure the SCORE program can continue to provide
important business and technical assistance to existing and
emerging small business owners nationwide while ensuring the
best use of taxpayer dollars.
Madam Chairwoman, as we all know, small businesses are the
economic engines of our community, from the delicious coffee at
Amore Coffee in West St. Paul to the outdoor apparel at Storm
Creek in Hastings. Each small business starts with an idea and
it is the resources like a robust mentorship program that can
help turn ideas into thriving businesses that sustain families,
provide jobs, and bring a sense of community to our
neighborhoods.
SCORE volunteers are an important part of that
entrepreneurial process and have helped launch tens of
thousands of new businesses over the past 2 years.
But as a recent audit of the Entrepreneurial Development
Program found, SCORE could be readministered more efficiently
and ultimately better serve rural areas, disadvantaged
communities, and traditionally undeserved communities.
Simply put, that is what this bill does. It incorporates
many of the Inspector General's findings to strengthen SCORE
and restores integrity, accounting, and performance to the
program. By including these safeguards, the legislation would
ensure SBA is a good agent of government funds and the
counseling and training program is operating effectively and
efficiently for the 30 million small business owners and
aspiring entrepreneurs throughout the country.
I know that small businesses in my district will benefit
from an SBA and a SCORE program that runs efficiently and
effectively, and so again, I thank the Chairwoman for advancing
this bill today, and I urge my colleagues to support. I yield
back.
Chairwoman VELAZQUEZ. Thank you. The gentlelady yields
back.
I now recognize the Ranking Member for 5 minutes.
Mr. CHABOT. Thank you, Madam Chair.
I would also like to thank Mr. Hern and Ms. Craig, both of
whom have experience in organizational management, for their
work on this legislation. I am confident that the provisions in
this bill will improve the SBA's oversight and congressional
oversight of the SCORE program and support reform efforts
within the SCORE association.
So I urge all my colleagues to support it and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Again, I would like to add I want to thank both of the
members for working in a bipartisan way to produce legislation
that is going to make a significant contribution to small
businesses, and particularly corresponding to the IG's findings
that were particularly troubling. This legislation takes strong
steps to restore accounting, integrity, and performance to the
program. I also would like to add that I am pleased that the
new leadership at SCORE has taken steps to centralize the
accounting system.
And with that, I urge my colleagues to support this
legislation.
If there is no further discussion, the Committee will move
on to consideration of H.R. 4407.
The clerk will report the title of the bill.
The CLERK. H.R. 4407, the ``SCORE for Small Business''----
Chairwoman VELAZQUEZ. Without objection, H.R. 4407 is
considered as read, and as is customary for Committee practice,
open for amendment at any point.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 4407.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
4407 is agreed to.
The question now occurs on reporting H.R. 4407 to the
House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 4407 is reported to the House.
Without objection, committee staff is authorized to correct
punctuation, make other necessary technical corrections, and
conforming changes.
Without objection, members shall also be entitled to 2 days
to file additional supplemental, dissenting, and minority
views.
H.R. 4387
The next bill for consideration today is H.R. 4387,
legislation to establish the Growth Accelerator Fund
Competition within the SBA. This bipartisan legislation was
authored by Mr. Espaillat and cosponsored by Mr. Balderson.
I would now like to recognize the gentleman from New York,
Mr. Espaillat, for an opening statement.
Mr. ESPAILLAT. Thank you, Madam Chair Velazquez and Ranking
Member Chabot for convening this markup session. I want to
particularly thank the Chairwoman for helping move this piece
of legislation.
All roads lead to Ms. Velazquez's district. And I am not
wrong.
I want to thank my colleague, Congressman Balderson of Ohio
for working with me on this bipartisan legislation.
One of the most widely utilized tools the Small Business
Administration employs to grow and support small businesses is
the Growth Accelerator Fund Competition. This program has had
the support of bipartisan administrations and has reached small
businesses in over 40 states. Importantly, this creates a
pipeline of talented entrepreneurs, especially women and
minorities to grow and succeed.
Last week, this committee had a hearing on SBA programs
focused on spurring innovation and discussed the Small Business
Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) programs. They are a proven ground for success.
The SBIR and STTR programs work with small businesses in the
high-demand fields of new and innovative technologies.
According to the SBA, since this Growth Accelerator Fund
Competition began in 2014, the first 50 awardees have led to
directly almost 1,500 companies across the country. This means
more investment in small businesses, a number of new
opportunities leading to more jobs, and higher salaries.
Again, let me thank Congresswoman Velazquez. Helping small
businesses and prioritizing women-owned, veteran-owned, and
socially and economically disadvantaged businesses has been a
priority of mine and of this committee. I thank you, Chairwoman
Velazquez and Ranking Member Chabot for your leadership in
support of this legislation, and I urge my colleagues to
support this bill. I yield back.
Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 4387?
Mr. Balderson, you are recognized for 5 minutes.
Mr. BALDERSON. Thank you very much, Madam Chair. And thank
you for allowing my colleague, Mr. Espaillat, for bringing this
up today. I am very grateful to work with his office and to
work with him on this bipartisan piece of legislation.
The SBA's Growth Accelerator Fund Competition was designed
to support small business job creation by giving early stage
entrepreneurs opportunities to immerse themselves in intense
learning. Accelerators can provide founders of early stage
companies with education, mentorship, financing, cohort base
training, and technical assistance. In the SBA's Growth
Accelerator Fund Competition Program, accelerators, incubators,
co-working startup companies, and other entrepreneurial models
compete for grants of $50,000 each. In 2019, the competition
focused on accelerators that work with high tech entrepreneurs
who are potential SBIR or STTR program applicants. Taken
together, these programs aim to increase the number of small
businesses in the high tech segment of our economy, as well as
raise their presence in Federal research and development
efforts. That is a win-win for both the private and public
sectors by creating jobs, growing companies, and providing
solutions to complex problems.
I again want to thank my colleague, Congressman Espaillat,
and Madam Chair, and also Ranking Member Chabot, and I would
urge all of you to support this legislation. I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back. Thank you,
sir.
And now I recognize the Ranking Member.
Mr. CHABOT. Thank you, Madam Chair.
I want to thank you. I want to thank Mr. Espaillat and Mr.
Balderson for offering this bill to codify the SBA's Growth
Accelerator Fund Competition. The competition has proven
successful over the past 5 years, and I expect that will
continue for the next 4 fiscal years. I urge my colleagues to
support this and, again, want to thank them for working
together in a bipartisan manner. I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back. Thank you,
Mr. Chabot.
And now I recognize myself briefly.
This is one of the most important and innovative programs
under SBA. The SBA funds the Growth Accelerator Fund
Competition for this nation's most innovative, diverse, and
promising small business accelerators and incubators. The
monetary prizes of $50,000 to each of the winners goes a long
way toward supporting the development of accelerators and
incubators in regions of the country where there are fewer
sources of capital. It has a proven track record of providing
investment in women and minority entrepreneurs. This bill will
continue that commitment of investment in the next generation
of American entrepreneurs, promote innovation, and increase
jobs.
I urge my colleagues to support the measure.
If there is no further discussion, the Committee moves to
consideration of H.R. 4387.
The clerk will report the title of the bill.
The CLERK. H.R. 4387, legislation to establish----
Chairwoman VELAZQUEZ. Without objection, H.R. 4387 is
considered as read and open for amendment at any point.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 4387.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
4387 is agreed to.
The question now occurs on reporting H.R. 4387 to the
House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 4387 is reported to the House.
Without objection, committee staff is authorized to correct
punctuation, make other necessary technical corrections, and
conforming changes.
Without objection, members shall also be entitled to 2 days
to file additional supplemental, dissenting, and minority
views.
I thank all of the members for their participation today
and congratulate all of the members for the legislation that
was sponsored.
If there is no further business to come before the
Committee, we are adjourned. Thank you.
[Whereupon, at 12:07 p.m., the committee was adjourned.]
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