Small businesses are the engine that will repower America’s economy. On May 20th, the House passed the Job Creation Through Entrepreneurship Act, H.R. 2352. The bill represents a major effort to give established small businesses and entrepreneurial start-ups the needed tools and resources to thrive, create jobs and drive economic growth.
This legislation marks the first major overhaul in a decade of the Small Business Administration’s entrepreneurial development programs – such as Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), and the Service Corps of Retired Executives (SCORE) – with the expansion and improvement of some of the most successful programs.
The bill also creates new entrepreneurial development programs. It establishes, for the first time, a nationwide network of Veterans Business Centers to provide specialized entrepreneurial training and counseling to our nation’s veterans. It also creates new support services for Native American-owned small businesses.
In addition, the bill creates a grant program for SBDCs specifically designed to assist small firms in securing capital such as the new small business lending generated under the Recovery Act. The Recovery Act contains numerous provisions to generate new small business lending, such as increasing from 85% to 90% the amount of an SBA-backed loan that the government guarantees – with estimates that the Act will generate $21 billion in new lending and investment for small businesses.
Entrepreneurial development programs are a wise investment in our economy. It has been estimated that for every $1 spent on these programs, there is a $2.87 return to the Treasury. Entrepreneurial development programs also helped create 73,000 jobs, in 2008 alone.
Highlights of the bill include:
Modernizing the Small Business Development Center (SBDC) Program. Makes several key changes to the operation of the Small Business Development Centers (SBDC) program. To ensure communities are provided the services their entrepreneurs demand, local SBDCs are given a stronger voice in determining their service offerings and human resources. Taxpayers are protected by a provision that concentrates resources on entrepreneurial development, not overhead. Finally, the SBDC program is given flexibility to be more responsive during natural disasters, permitting these centers to function and contribute to recovery.
Establishment of Veterans Business Center Program. Authorizes $10 million in FY 2010 and $12 million in FY 2011 for the SBA to expand entrepreneurial development assistance to veterans by increasing outreach facilities across the country, establishing specialized assistance programs, and updating the institutional structure designed to customize policies and programs targeted to veterans.
Broadening the Women’s Business Centers Program. Improves and expands business development resources for women entrepreneurs by increasing counseling and training facilities for this sector, particularly targeting underserved areas.
Enhancing Native American Entrepreneurship. Ensures entrepreneurial development services are customized to Native American entrepreneurs’ needs and communities by formalizing in statute the SBA’s Office of Native American Affairs and establishing grants for business development outreach facilities in regions with high concentrations of these enterprises.
SCORE Program Improvements. Increases the effectiveness of the SCORE (Service Corps of Retired Executives) program by establishing new performance and benchmark requirements for the agency’s business mentoring resources.
Helping Small Businesses Access Capital. Creates a grant program specifically designed to assist small firms in securing capital, such as the $21 billion in new small business lending generated under the Recovery Act.
Educating Entrepreneurs Through Today’s Technology. Increases access to entrepreneurial development services through the use of communication technologies to facilitate the creation of high-quality distance learning resources through public-private business development experts.
Boosting Entrepreneurs’ Role in the Green Economy. Establishes a green entrepreneurial development program, which will provide education, classes and one-on-one instruction in starting a business in the fields of energy efficiency, green technology, or clean technology.
Opening New Opportunities for Small Businesses in the Federal Marketplace. Creates a procurement training program to help local agencies identify contracts that are suitable for local small firms and provides technical assistance regarding the federal procurement process, including helping small firms comply with federal regulations and bonding requirements.
Expanding Entrepreneurship. Updates the structure of the SBA’s entrepreneurial development portfolio by requiring increased coordination and planning by program operators.
