Title X: Committee on Small Business — Sections on SBA Funding

Summary

A section-by-section summary of Title X: Committee on Small Business of a House bill, organized in Subtitles A to G. It describes funding provisions including $35 million for a veteran federal procurement entrepreneurship training program, $1 billion over a 10-year period for uplift incubators, $60 million for the State Trade Expansion Program, and $200 million over 10 years for growth accelerator grants. Lending provisions include $275.9 million over 10 years for the Community Advantage program and an additional $950 million for temporary 7(a) and 504 fee reductions. The document closes with $125 million in SBA administrative funding and $12.5 million for SBA's Office of Inspector General, available until September 30, 2030.

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                          TITLE X: COMMITTEE ON SMALL BUSINESS

SUBTITLE A—INCREASING FEDERAL CONTRACTING OPPORTUNITIES FOR
SMALL BUSINESSES

SEC. 100101. VETERAN FEDERAL PROCUREMENT ENTREPRENEURSHIP TRAINING PROGRAM
   This section provides $35 million for the creation grants for non-profits to operate federal
procurement entrepreneurship training programs to assist veteran small business contractors
from fiscal year 2022 through 2030.

SEC. 100102. EXPANDING SURETY BOND PROGRAM
   This section provides funding to raise SBA’s guarantee on federal contracts from $10 million
to $20 million, raise the guarantee on non-federal contracts from $6.5 million to $10 million, and
directly appropriates $100 million, of which $15 million is for administrative expenses, to the
Surety Bond Guarantees Revolving Fund to remain available until September 30, 2031.


SUBTITLE B—EMPOWERING SMALL BUSINESS CREATION AND EXPANSION IN
UNDERREPRESENTED COMMUNITIES

SEC. 100201. FUNDING FOR UPLIFT INCUBATORS
   This section provides a total of $1 billion over a 10-year period to establish a national network
of uplift incubators. The section establishes a program to support uplift incubator spaces for
Main Street small businesses to spur economic development in underrepresented communities to
assist new businesses and small government contractors.

SEC. 100202. OFFICE OF NATIVE AMERICAN AFFAIRS
  This section invests $10 million to enhance the Small Business Administration’s Office of
Native American Affairs to establish a Native American Outreach Program to target SBA
programs and assistance to these communities.

SEC. 100203. OFFICE OF RURAL AFFAIRS
  This section provides $10 million to establish Rural Small Business Conferences within the
Small Business Administration’s Office of Rural Affairs to promote policies and programs to
support rural businesses and entrepreneurs.
SEC. 100204. OFFICE OF EMERGING MARKETS
  This section provides $10 million and establishes an Office of Emerging Markets within the
Office of Capital Access to coordinate all access to capital initiatives dealing with small
businesses in emerging markets.

SEC. 100205. STATE TRADE EXPANSION PROGRAM
  This section provides $60 million over a two-year period to the Small Business
Administration’s State Trade Expansion Program (STEP) which provides grants to states to
assist small businesses in export development.

SUBTITLE C—ENCOURAGING SMALL BUSINESSES TO FULLY ENGAGE IN THE
INNOVATION ECONOMY

SEC. 100301. GROWTH ACCELERATOR COMPETITION
   This section provides a total of $200 million over 10 years to provide cash grants of not less
than $100,000 to growth accelerators to expand their capabilities to assist small businesses
focused on technology, research, and development. The grant recipient must assist at new small
businesses and specifically prioritize small business owners that are underrepresented.


SUBTITLE D—INCREASING EQUITY OPPORTUNITIES

SEC. 100401. INCREASING EQUITY INVESTMENT IN THE SBIC PROGRAM

    The section provides $20 million to implement the Emerging Managers Program which is a
mentorship program to pair less-experienced fund managers interested in getting their first SBIC
license with highly-experienced SBIC managers to provide guidance and advice.

SEC. 100402. MICROCAP SMALL BUSINESS INVESTMENT COMPANY LICENSE
   This section provides $40 million to implement the MicroCap SBIC license subprogram to
increase SBIC diversity. This license allows for less initial private sector investment to receive
SBA leverage, requires a percentage of investments be made in underserved markets, and
increases the pool of eligible fund manager applicants.

SEC. 100403. FUNDING FOR SBIC OUTREACH AND EDUCATION
   This section invests $2.5 million to be used for outreach and education to expand awareness
and utilization of the program.


SUBTITLE E—INCREASING ACCESS TO LENDING AND INVESTMENT CAPITAL

SEC. 100501. FUNDING FOR COMMUNITY ADVANTAGE LOAN PROGRAM
   This section provides $275.9 million over 10 years to enhance, improve, and expand the
Community Advantage program. It also gives SBA authority to partner with mission-oriented,
nonprofit lenders to deliver capital through the 7(a) Loan Program. It invests $5 million into free
or low-cost program training.
SEC. 100502. FUNDING FOR CREDIT ENHANCEMENT AND SMALL DOLLAR LOAN FUNDING
   This section provides $1,964,6000,000 in total funding over a 10-year period to fund a direct
loan product under the current 7(a) lending program administered by the SBA.

SEC.100503. EXTENSION OF TEMPORARY FEE REDUCTIONS
  This section invests an additional $950 million to the temporary fee reduction levels enacted in
the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which apply to
the SBA 7(a) and 504 lending programs. Funding is available until September 30, 2026 to reduce
waiver fees for loans less than or equal to $2 million.

SEC. 100504. FUNDING FOR COOPERATIVES
   This section provides $100 million to fund a pilot program for eligible cooperatives and
employee-owned businesses to receive SBA loan products without the requirement of a personal
or entity guarantee.


SUBTITLE F-SUPPORTING ENTREPRENEURIAL SECOND CHANCES

SEC. 100601. REENTRY ENTREPRENEURSHIP COUNSELING AND TRAINING FOR INCARCERATED
AND FORMERLY INCARCERATED INDIVIDUALS
   This section provides $70 million over 8 years to invest in initiatives through Women
Business Centers, Small Business Development Centers, and other entities for formally
incarcerated individuals.
   The first subsection provides funding for assistance to incarcerated and formerly incarcerated
individuals through trainings covering how to start or expand a small business and the tools,
skills, and knowledge necessary to identify a business opportunity.
   The second subsection provides funding for mentoring formerly incarcerated individuals in
their small business ventures and connecting them to local resources and SBA programs.

SEC.100602. NEW START ENTREPRENEURIAL DEVELOPMENT PROGRAM FOR FORMERLY
INCARCERATED INDIVIDUALS
  This section provides $35 million over a 8-year period for the SBA to establish a pilot
program to award grants to organizations or partnerships of organizations to support existing
entrepreneurial development programs for formerly incarcerated individuals to gain assistance to
job training, business assistance, and access to capital.

SUBTITLE G—ADMINISTRATIVE AND OVERSIGHT FUNDING

SEC. 100701. ADMINISTRATIVE FUNDING
  This section provides $125 million to the Small Business Administration over 9 years to carry
out Title X, including issuing rules.

SEC. 100702. SBA OFFICE OF INSPECTOR GENERAL FUNDING
  This section provides $12.5 million for SBA’s Office of Inspector General for oversight, to
remain available until September 30, 2030.


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