(a) Short title.—This Act may be cited as the “Small Business Administration Reauthorization and Modernization Act of 2022”.

(b) Table of contents.—The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

In this Act:

(1) ADMINISTRATION; ADMINISTRATOR.—The terms “Administration” and “Administrator” mean the Small Business Administration and the Administrator thereof, respectively.

(2) APPROPRIATE COMMITTEES OF CONGRESS.—The term “appropriate committees of Congress” means—

(A) the Committee on Small Business and Entrepreneurship of the Senate; and

(B) the Committee on Small Business of the House of Representatives.

(3) SMALL BUSINESS CONCERN.—The term “small business concern” has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).

This title may be cited as the “Women's Business Centers Improvement Act of 2022”.

Section 29 of the Small Business Act (15 U.S.C. 656) is amended to read as follows:

(a) Terms and conditions.—A nonprofit organization receiving a grant under section 29(m) of the Small Business Act (15 U.S.C. 656(m)), as in effect on the day before the date of enactment of this Act, shall continue to receive the grant under the terms and conditions in effect for the grant on the day before the date of enactment of this Act, except that the nonprofit organization may not apply for a continuation of the grant under section 29(m)(5) of the Small Business Act (15 U.S.C. 656(m)(5)), as in effect on the day before the date of enactment of this Act.

(b) Length of continuation grant.—The Administrator may award a grant under section 29 of the Small Business Act (15 U.S.C. 656), as amended by this title, to a nonprofit organization receiving a grant under section (m) of such section 29, as in effect on the day before the date of enactment of this Act, for the period—

(1) beginning on the day after the last day of the grant agreement under such section 29(m); and

(2) ending at the end of the third fiscal year beginning after the date of enactment of this Act.

Not later than 270 days after the date of enactment of this Act, the Administrator shall issue rules as are necessary to carry out section 29 of the Small Business Act (15 U.S.C. 656), as amended by this title, and ensure that a period of public comment for those rules is not less than 60 days.

This title may be cited as the “Small Business Development Centers Improvement Act of 2022”.

Section 10 of the Small Business Act (15 U.S.C. 639) is amended by adding at the end the following:

“(i) Annual report on entrepreneurial development programs.—

“(1) DEFINITIONS.—In this subsection:

“(A) COVERED PROGRAM.—The term ‘covered program’ means a program authorized under section 7(j), 7(m), 8(a), 8(b)(1), 21, 22, 29, 32, or 34.

“(B) ENTREPRENEURIAL DEVELOPMENT ACTIVITY.—The term ‘entrepreneurial development activity’ means an activity related to the delivery of entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of business training services carried out through a covered program.

“(2) REPORT REQUIRED.—The Administrator shall include in the comprehensive annual report required under subsection (a) the following data:

“(A) A list of all entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through a covered program, including—

“(i) a description and operating details for each such covered program and the activities performed under each such covered program;

“(ii) operating circulars, manuals, and standard operating procedures for each such covered program;

“(iii) a description of the process used to make awards relating to the provision of entrepreneurial development activities under each such covered program;

“(iv) a list of all recipients of awards under each such covered program and the amount of each such award; and

“(v) a list of contractors, including the name and location of such contractor, of an award recipient.

“(B) The total amount of funding obligated for a covered program and the entrepreneurial development activities conducted under each such covered program for the fiscal year preceding the date of the report.

“(C) The names and titles of the individuals responsible for carrying out a covered program.

“(D) For entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through the small business development center program established under section 21 (in this section referred to as the ‘Program’)—

“(i) the total number and number of individuals counseled or trained through the Program;

“(ii) the total number of hours of counseling and training services provided through the Program;

“(iii) to the extent practicable, the demographics of participants in the Program, which shall include the gender, race, ethnicity, and age of each such participant;

“(iv) the number of participants in the Program who are veterans;

“(v) the number of new businesses started by participants in the Program;

“(vi) to the extent practicable, the number of jobs supported, created, and retained with assistance from the Program;

“(vii) to the extent practicable, the total amount of capital secured by participants in the Program, including through loans and equity investment from the Administration;

“(viii) the number of participants in the Program receiving financial assistance, including the type and dollar amount, under a loan program of the Administration;

“(ix) an estimate of gross receipts, including, to the extent practicable, a description of any change in revenue, of small business concerns assisted through the Program;

“(x) the number of referrals of individuals to other resources and programs of the Administration;

“(xi) the results of satisfaction surveys of participants in the Program, including a summary of any comments received from those participants; and

“(xii) any recommendations by the Administrator to improve the delivery of services by the Program.”.

Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following:

“(o) No prohibition of marketing of services.—An applicant receiving a grant under this section may use up to 10 percent of their budget to market and advertise the services of the applicant to individuals and small business concerns.”.

(a) Establishment of working group To improve data collection.—The Administrator shall establish a group to be known as the “Data Collection Working Group” consisting of entrepreneurial development grant recipients, the associations and organizations representing such recipients, and officials from the Administration, to carry out a study to determine the best methods for conducting data collection activities and create or revise existing systems dedicated to data collection.

(b) Report.—Not later than 180 days after the date of enactment of this Act, the Data Collection Working Group shall issue a report to the appropriate committees of Congress containing the findings and determinations made in carrying out the study required under subsection (a), including—

(1) recommendations for revising existing data collection practices for the small business development center program established under section 21 of the Small Business Act (15 U.S.C. 648); and

(2) a proposed plan for the Administrator to implement the recommendations described in paragraph (1).

Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is amended—

(1) in the matter preceding subparagraph (A), by inserting “, including financial oversight,” after “oversight”;

(2) by moving subparagraphs (A) and (B) 2 ems to the right;

(3) in subparagraph (C)—

(A) by striking “Whereas”;

(B) by inserting “Program” after “Center”; and

(C) by striking “National” and inserting “national”; and

(4) by adding at the end the following:

“(D) (i) A small business development center that participates in a private partnership or cosponsorship, in which the Administrator or designee of the Administrator also participates, may collect fees or other income in order to hold events related to the private partnership or cosponsorship.

“(ii) Nothing in clause (i) shall be construed as the Administration endorsing a private partnership or cosponsorship described in clause (i).

“(E) An association formed under subparagraph (A) shall, at the request of a small business development center applicant or applicants, participate in the negotiation of the cooperative agreement described in this paragraph between the small business development center applicant or applicants and the Administration.”.

Section 21(a)(4)(C)(v) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(v)) is amended to read as follows:

“(v) USE OF AMOUNTS.—Of the amounts made available in any fiscal year to carry out this section, not more than $600,000 may be used by the Administration to pay expenses enumerated in subparagraphs (B) through (D) of section 20(a)(1).”.

Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 648(a)(7)(A)) is amended, in the matter preceding clause (i)—

(1) by striking “or telephone number” and inserting “, telephone number, or email address”; and

(2) by inserting “, or the nature or content of such assistance, to any State, local, or Federal agency, or to any third party” after “receiving assistance under this section”.

(a) In general.—Section 21 of the Small Business Act (15 U.S.C. 648), as amended by section 203 of this title, is amended—

(1) in subsection (a)(1)—

(A) by striking “any women’s business center operating pursuant to section 29,”;

(B) by striking “or a women’s business center operating pursuant to section 29 as a Small Business Development Center”; and

(C) by striking “and women’s business centers operating pursuant to section 29”; and

(2) by adding at the end the following:

“(p) Limitation on award of grants.—Except for nonprofit institutions of higher education, and notwithstanding any other provision of law, the Administrator may not award a grant or contract to, or enter into a cooperative agreement with, an entity under this section unless that entity—

“(1) received a grant or contract from, or entered into a cooperative agreement with, the Administrator under this section before the date of enactment of this subsection; and

“(2) seeks to renew such a grant, contract, or cooperative agreement after such date.”.

(b) Rule of construction.—The amendments made by this section may not be construed as prohibiting a women’s business center described in section 29 of the Small Business Act (15 U.S.C. 656) from receiving a subgrant from an entity receiving a grant under section 21 of the Small Business Act (15 U.S.C. 648).

Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended—

(1) in clause (vii), by striking “subparagraph” and all that follows through the period at the end and inserting “subparagraph $175,000,000 for each of fiscal years 2023 through 2026.”; and

(2) in clause (viii)—

(A) by striking “shall reserve not less than $1,000,000” and inserting “shall reserve not more than $2,000,000”; and

(B) by striking “$100,000” and inserting “$200,000”.

Section 21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)) is amended by adding at the end the following: “Such matching funds shall be evidenced by good faith assertions from the applicant, and the expenditure of matching funds shall not be made a prerequisite of the reimbursement of Federal funds, notwithstanding the final reconciliation payment for the close-out of each award.”.

Section 21(h)(2) of the Small Business Act (15 U.S.C. 648(h)(2)) is amended by adding at the end the following:

“(C) MARKETING.—The Associate Administrator for Small Business Development Centers shall market and advertise the Small Business Development Center Program and participants in that Program as a resource available to any Federal program providing assistance to small business concerns, including the FAST program established under section 34.”.

The budgetary effects of this title, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled “Budgetary Effects of PAYGO Legislation” for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.

This title may be cited as the “SCORE for Small Business Act of 2022”.

Section 8 of the Small Business Act (15 U.S.C. 637) is amended—

(1) in subsection (b)(1)(B)—

(A) by striking “a Service Corps of Retired Executives (SCORE)” and inserting “the SCORE program”; and

(B) by striking “SCORE may” and inserting “the SCORE Association may”; and

(2) by striking subsection (c) and inserting the following:

“(c) SCORE program.—

“(1) COOPERATIVE AGREEMENT.—The Administrator shall enter into a cooperative agreement with the SCORE Association to carry out the SCORE program, which shall include the following requirements:

“(A) ADMINISTRATOR DUTIES.—The Administrator shall—

“(i) every 2 years, conduct a financial examination of the SCORE Association to ensure that any costs paid for with Federal funds are allowable, allocable, and reasonable;

“(ii) review and approve contracts entered into by the SCORE Association to provide goods or services for the SCORE program of a value greater than an amount determined by the Administrator;

“(iii) maintain a system through which the SCORE Association provides documentation relating to those contracts; and

“(iv) not later than 30 days after the receipt of a quarterly report on the achievements of the SCORE program submitted by the SCORE Association, reconcile differences between that report and the performance results of the SCORE program reported in a management information system of the Office of Entrepreneurial Development.

“(B) SCORE ASSOCIATION DUTIES.—The SCORE Association shall—

“(i) manage nationwide chapters of the SCORE program;

“(ii) provide annual training to employees of the SCORE Association on generating and using program income from the SCORE program;

“(iii) submit documentation to the Administrator verifying the annual training is completed;

“(iv) maintain separation of funds donated to the SCORE Association from program income and funds received pursuant to a cooperative agreement; and

“(v) maintain and enforce requirements for volunteers participating in the SCORE program, including requirements that each volunteer shall—

“(I) based on the business experience and knowledge of the volunteer—

“(aa) provide personal counseling, mentoring, and coaching on the process of starting, expanding, managing, buying, and selling a business at no cost to individuals who own, or aspire to own, small business concerns; and

“(bb) facilitate free or low-cost education workshops for individuals who own, or aspire to own, small business concerns; and

“(II) as appropriate, use tools, resources, and expertise of other organizations to carry out the SCORE program.

“(C) JOINT DUTIES.—The Administrator, in consultation with the SCORE Association, shall ensure that the SCORE program and each chapter of the SCORE program—

“(i) develop and implement plans and goals to effectively and efficiently provide services to individuals in rural areas, economically disadvantaged communities, or other traditionally underserved communities, including plans for virtual, remote, and web-based initiatives, chapter expansion, partnerships, and the development of new skills by volunteers participating in the SCORE program; and

“(ii) reinforce an inclusive culture by recruiting diverse volunteers for the chapters of the SCORE program.

“(2) ONLINE COMPONENT.—In addition to providing in-person services, the SCORE Association shall maintain and expand online counseling services including webinars, electronic mentoring platforms, and online toolkits to further support entrepreneurs.

“(3) ACCOUNTING.—The SCORE Association shall—

“(A) maintain a centralized accounting and financing system for each chapter of the SCORE program;

“(B) maintain a uniform policy and procedures to manage Federal funds received pursuant to a cooperative agreement described in paragraph (1); and

“(C) maintain an employee of the SCORE Association to serve as a compliance officer to ensure expenditures of the SCORE program are fully compliant with any law, regulation, or cooperative agreement relating to the SCORE program.

“(4) COMPENSATION.—The SCORE Association shall—

“(A) maintain a documented compensation policy that—

“(i) specifies the maximum rate of pay allowable for any individual in the SCORE Association;

“(ii) specifies the maximum percent of the aggregate salaries of employees of the SCORE Association that may be spent on individual performance awards to employees of the SCORE Association; and

“(iii) shall be reviewed annually by the SCORE Association and the Administrator;

“(B) prohibit payment of salaries or performance awards that exceed the limits set by the SCORE Association compensation policy; and

“(C) prohibit members of the Board of Directors of the SCORE Association or any employees of the SCORE Association from simultaneously serving on the Board of Directors of, or receiving compensation from, the SCORE Foundation without written approval from the Administrator.

“(5) WHISTLEBLOWER PROTECTION REQUIREMENTS.—The SCORE Association shall—

“(A) annually update all manuals or other documents applicable to employees and volunteers of the SCORE Association or the SCORE program to include requirements relating to reporting procedures and protections for whistleblowers; and

“(B) conduct an annual training for employees and volunteers of the SCORE Association or the SCORE program on the requirements described in subparagraph (A) and encourage the use of the hotline established by the Office of the Inspector General of the Administration to submit whistleblower reports.

“(6) PUBLISHED MATERIALS.—The SCORE Association shall ensure all published materials include written acknowledgment of Administration support of the SCORE program if those materials are paid for in whole or in part by Federal funds.

“(7) PRIVACY REQUIREMENTS.—

“(A) IN GENERAL.—Neither the Administrator nor the SCORE Association may disclose the name, email address, address, or telephone number of any individual or small business concern receiving assistance from the SCORE Association without the consent of the individual or small business concern, unless—

“(i) the Administrator is ordered to make a disclosure by a court in any civil or criminal enforcement action initiated by a Federal or State agency; or

“(ii) the Administrator determines that a disclosure is necessary for the purpose of conducting a financial audit of the SCORE program, in which case disclosure shall be limited to the information necessary for the audit.

“(B) ADMINISTRATOR USE OF INFORMATION.—This paragraph shall not—

“(i) restrict the access of the Administrator to SCORE program activity data; or

“(ii) prevent the Administrator from using SCORE program client information to conduct client surveys.

“(C) STANDARDS.—

“(i) IN GENERAL.—The Administrator shall, after opportunity for notice and comment, establish standards for—

“(I) disclosures with respect to financial audits described in subparagraph (A)(ii); and

“(II) conducting client surveys, including standards for oversight of the surveys and for dissemination and use of client information.

“(ii) MAXIMUM PRIVACY PROTECTION.—The standards issued under this subparagraph shall, to the extent practicable, provide for the maximum amount of privacy protection.

“(8) ANNUAL REPORT.—Not later than 180 days after the date of enactment of the SCORE for Small Business Act of 2022 and annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the performance and effectiveness of the SCORE program, which may be included as part of another report submitted to those committees by the Administrator, and which shall include—

“(A) the total number and the number of unique clients counseled or trained under the SCORE program;

“(B) the total number of hours of counseling or training provided under the SCORE program;

“(C) the total number of local workshops provided under the SCORE program;

“(D) the total number of clients attending online and local workshops provided under the SCORE program;

“(E) to the extent practicable, the demographics of SCORE program clients and volunteers, which shall include the gender, race, ethnicity, and age of each client or volunteer;

“(F) the number of SCORE program clients and volunteers who are veterans;

“(G) with respect to businesses assisted under the SCORE program, the cost to create a job, the cost to create a business, and the return on investment;

“(H) the number of referrals of SCORE program clients to other resources and programs of the Administration;

“(I) the results of SCORE program client satisfactory surveys, including a summary of any comments received from those clients;

“(J) the number of new businesses started by SCORE program clients;

“(K) the percentage of businesses assisted by the SCORE program realizing revenue growth;

“(L) to the extent practicable, the number of jobs created with assistance from the SCORE program;

“(M) the total cost of the SCORE program;

“(N) any recommendations of the Administrator to improve the SCORE program;

“(O) an explanation of how the SCORE program has been integrated with—

“(i) small business development centers;

“(ii) women’s business centers described in section 29;

“(iii) Veteran Business Outreach Centers described in section 32;

“(iv) other offices of the Administration; and

“(v) other public and private entities engaging in entrepreneurial and small business development;

“(P) the SCORE compensation policy for the relevant fiscal year, including—

“(i) a list of any changes to the compensation policy since the previous fiscal year; and

“(ii) justification if the maximum rate of pay allowable for any individual in the SCORE Association exceeds the maximum rate of pay allowable for an individual in the career Senior Executive Service employed at the Administration;

“(Q) the names, positions, and salaries of any employees of the SCORE Association whose salaries exceed the maximum rate of pay allowable per the SCORE compensation policy;

“(R) the percent of the aggregate salaries of employees of the SCORE Association spent on individual performance awards to employees of the SCORE Association, with a justification if this amount exceeds 10 percent;

“(S) the total amount of performance awards that have been disbursed or will be disbursed after the last day of the fiscal year in which the awards were earned and a justification for any awards that have been disbursed or will be disbursed outside the fiscal year in which the awards were earned; and

“(T) the names, positions, and salaries of any members of the Board of Directors of the SCORE Association or any employees of the SCORE Association that simultaneously serve on the Board of Directors of, or receive compensation from, the SCORE Foundation without written approval of the Administrator.”.

Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by adding at the end the following:

“(i) SCORE program.—There are authorized to be appropriated to the Administrator to carry out the SCORE program such sums as are necessary for the Administrator to make grants or enter into cooperative agreements in a total amount that does not exceed $18,000,000 in each of fiscal years 2023 and 2024.”.

(a) Definitions.—In this section, the terms “SCORE Association” and “SCORE program” have the meanings given those terms in subsection (gg) of section 3 of the Small Business Act (15 U.S.C. 632), as added by section 305 of this title.

(b) Study and report on the future role of the SCORE program.—

(1) STUDY.—The SCORE Association shall carry out a study on the future role of the SCORE program and develop a strategic plan for how the SCORE program will meet the needs of small business concerns during the 5-year period beginning on the date of enactment of this Act, with specific objectives for the first, third, and fifth years of the 5-year period.

(2) REPORT.—Not later than 180 days after the date of enactment of this Act, the SCORE Association shall submit to the appropriate committees of Congress a report containing—

(A) all findings and determinations made in carrying out the study required under paragraph (1);

(B) the strategic plan developed under paragraph (1); and

(C) an explanation of how the SCORE Association plans to achieve the strategic plan, assuming both stagnant and increased funding levels.

(c) Administrator report on leased space.—Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to the appropriate committees of Congress a report containing an assessment of the cost of leased space that is donated to the SCORE Association.

(d) Online component report.—Not later than 3 months after the last day of the first full fiscal year following the date of enactment of this Act, the SCORE Association shall submit to the appropriate committees of Congress a report on the effectiveness of the online counseling services required under paragraph (2) of section 8(c) of the Small Business Act (15 U.S.C. 637(c)), as added by section 302 of this title, including a description of—

(1) how the SCORE Association determines electronic mentoring and webinar needs, develops training for electronic mentoring, establishes webinar criteria curricula, and evaluates webinar and electronic mentoring results;

(2) the internal controls that are used and a summary of the topics covered by the webinars; and

(3) performance metrics, including the number of small business concerns counseled by, the number of small business concerns created by, the number of jobs created and retained by, and the funding amounts directed towards those online counseling services.

(a) Small Business Act.—The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1) in section 3 (15 U.S.C. 632), by adding at the end the following:

“(gg) SCORE program definitions.—In this Act:

“(1) SCORE PROGRAM.—The term ‘SCORE program’ means the Service Corps of Retired Executives program described in section 8(c).

“(2) SCORE ASSOCIATION.—The term ‘SCORE Association’ means the Service Corps of Retired Executives Association or any successor or other organization that enters into a cooperative agreement described in section 8(c)(1) with the Administrator to operate the SCORE program.

“(3) SCORE FOUNDATION.—The term ‘SCORE Foundation’ means an organization with a mission to support the SCORE Association and volunteers of the SCORE program.”;

(2) in section 7 (15 U.S.C. 636)—

(A) in subsection (b)(12)—

(i) in the paragraph heading, by striking “score” and inserting “SCORE program”; and

(ii) in subparagraph (A), by striking “Service Corps of Retired Executives” and inserting “SCORE program”; and

(B) in subsection (m)(3)(A)(i)(VIII), by striking “Service Corps of Retired Executives” and inserting “SCORE program”;

(3) in section 20(d)(1)(E) (15 U.S.C. 631 note), by striking “Service Corps of Retired Executives program” and inserting “SCORE program”; and

(4) in section 22 (15 U.S.C. 649)—

(A) in subsection (b)—

(i) in paragraph (1), by striking “Service Corps of Retired Executives authorized by section (8)(b)(1)” and inserting “SCORE program”; and

(ii) in paragraph (3), by striking “Service Corps of Retired Executives” and inserting “SCORE program”; and

(B) in subsection (c)(12), by striking “Service Corps of Retired Executives authorized by section 8(b)(1)” and inserting “SCORE program”.

(b) Other laws.—

(1) SMALL BUSINESS REAUTHORIZATION ACT OF 1997.—Section 707 of the Small Business Reauthorization Act of 1997 (15 U.S.C. 631 note) is amended by striking “Service Corps of Retired Executives (SCORE) program” and inserting “SCORE program described in section 8(c) of the Small Business Act (15 U.S.C. 637(c))”.

(2) VETERANS ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT ACT OF 1999.—Section 301 of the Veterans Entrepreneurship and Small Business Development Act of 1999 (15 U.S.C. 657b note) is amended—

(A) in subsection (a)—

(i) in the matter preceding paragraph (1), by striking “Service Core of Retired Executives (described in section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)) and in this section referred to as ‘SCORE’)” and inserting “SCORE program described in section 8(c) of the Small Business Act (15 U.S.C. 637(c)) (in this section referred to as the ‘SCORE program’)”;

(ii) in paragraphs (1), (2), and (3), by striking “SCORE” each place the term appears and inserting “the SCORE program”; and

(iii) in paragraph (2), by striking “the” before “establishing”; and

(B) in subsection (b), by striking “SCORE” each place the term appears and inserting “the SCORE program”.

(3) MILITARY RESERVIST AND VETERAN SMALL BUSINESS REAUTHORIZATION AND OPPORTUNITY ACT OF 2008.—The Military Reservist and Veteran Small Business Reauthorization and Opportunity Act of 2008 (15 U.S.C. 636 note) is amended—

(A) in section 3, by striking paragraph (5) and inserting the following:

“(5) the term ‘SCORE program’ means the SCORE program described in section 8(c) of the Small Business Act (15 U.S.C. 637(c));”; and

(B) in section 201(c)(2)(B)(i), by striking “Service Corps of Retired Executives” and inserting “SCORE program”.

(4) CHILDREN’S HEALTH INSURANCE PROGRAM REAUTHORIZATION ACT OF 2009.—Section 621 of the Children’s Health Insurance Program Reauthorization Act of 2009 (15 U.S.C. 657p) is amended—

(A) in subsection (a), by striking paragraph (4) and inserting the following:

“(4) the term ‘SCORE program’ means the SCORE program described in section 8(c) of the Small Business Act (15 U.S.C. 637(c));”; and

(B) in subsection (b)(4)(A)(iv), by striking “Service Corps of Retired Executives” and inserting “SCORE program”.

(5) ENERGY POLICY AND CONSERVATION ACT.—Section 337(d)(2)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6307(d)(2)(A)) is amended by striking “Service Corps of Retired Executives (SCORE)” and inserting “SCORE program”.

This title may be cited as the “Federal Contracting Fairness Act of 2022”.

Congress finds the following:

(1) There remain disparities in education, employment, and business history, which includes unequal contracting opportunities, unequal access to credit or capital, and acquisition of credit or capital under commercially unfavorable circumstances, between individuals defined as socially and economically disadvantaged under the Small Business Act (15 U.S.C. 631 et seq.) and other individuals.

(2) The following statistics reiterate the disparities described in paragraph (1):

(A) Of the 16,300,000 students enrolled in 4-year undergraduate university in the fall of 2016, 9,100,000 were White, 3,200,000 were Hispanic, 2,200,000 were Black, and 1,100,000 million were Asian. In 2018, 41 percent of all 18- to 24-year-olds were enrolled in college. However, 37 percent of Black 18- to 24-year-olds and 26 percent of Hispanic 18- to 24-year-olds were enrolled in college. Additionally, in 2019, 29 percent of Black adults had a bachelor's degree or higher, 21 percent of Latino or Hispanic adults had a bachelor's degree or higher, and 22 percent of Pacific Islander adults had a bachelor's degree or higher, as compared to 45 percent of White adults.

(B) In 2020, 24 percent of Black employees and 24 percent of Hispanic employees report having been discriminated against at work, compared to 15 percent of White employees reporting discrimination at work. In the first quarter of 2022, the unemployment rate in the United States among White workers was 3.6 percent compared to 6.8 percent among Black workers and 4.9 percent among Hispanic workers.

(C) With regards to contracting, in 2021, 2.78 percent of Federal contracts were awarded to Asian-owned small businesses, 1.67 percent went to Black-owned small businesses, 1.78 percent went to Hispanic-owned small businesses, and 2.69 percent went to Native American-owned small businesses compared to 15.64 percent of Federal contracts awarded to White-owned small businesses. In total, 9.4 percent of contracting dollars went to minority-owned businesses when 19 percent of United States employer businesses are minority-owned.

(D) In terms of access to capital, in 2021, 15 percent of Asian-owned small businesses received all the financing they sought, 16 percent of Black-owned small businesses received all the non-emergency financing they sought, and 19 percent of Hispanic-owned small businesses received all the non-emergency financing they sought, as compared to 35 percent of White-owned small businesses.

(3) Given these disparities, the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) remains a vital part in increasing access to Federal contracting opportunities for business owners considered socially and economically disadvantaged, as defined in such Act, and is a critical business development program for ensuring these individuals can start and grow their businesses to compete for Federal contracts.

In this title, the terms “qualified HUBZone small business concern”, “small business concern owned and controlled by service-disabled veterans”, and “small business concern owned and controlled by women” have the meanings given those terms in section 3 of the Small Business Act (15 U.S.C. 632).

(a) Extension of program participation period.—Section 7(j)(15) of the Small Business Act (15 U.S.C. 636(j)(15)) is amended—

(1) in the matter preceding subparagraph (A), by striking “nine years” and inserting “10 years”;

(2) in subparagraph (A), by striking “four years” and inserting “5 years”; and

(3) in subparagraph (B), by striking “five years” and inserting “5 years”.

(b) Ramp-up period.—

(1) DEFINITION.—In this subsection, the term “covered small business concern” means a small business concern that, as of the date of enactment of this Act—

(A) is in the first 3 years as a participant in the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a));

(B) is an individually owned entity; and

(C) has not been awarded a contract under such section 8(a), excluding contracts that meet the simplified acquisition threshold described in section 134 of title 41, United States Code.

(2) ELECTION.—

(A) IN GENERAL.—Subject to subparagraph (B), a covered small business concern may elect at the time of certification to begin the 10-year program participation period under section 7(j)(15) of the Small Business Act (15 U.S.C. 636(j)(15)), as amended by subsection (a), on the earlier of—

(i) the date on which the covered small business concern is awarded a contract under section 8(a) of the Small Business Act (15 U.S.C. 637(a)); or

(ii) 3 years after the date on which the covered small business concern was certified to participate in the program established under such section 8(a).

(B) LIMITATION.—Notwithstanding subparagraph (A), the program participation period for a covered small business concern under section 7(j)(15) of the Small Business Act (15 U.S.C. 636(j)(15)) shall not exceed 13 years.

(3) TRAINING.—

(A) IN GENERAL.—Except as provided in subparagraph (B), if a covered small business concern makes an election under paragraph (2), the covered small business concern shall—

(i) participate in 12 hours per year of marketing, business development training, and engagement to show intent in building capacity to participate in the Federal contracting market, which shall be satisfied through training provided by the Administration, the Minority Business Development Agency, resource partners of the Administration, Procurement Technical Assistance Centers, or national organizations with expertise in Federal contracting or that provide contracting certifications; and

(ii) log the progress of the covered small business concern on the training carried out under clause (i) in the annual review submitted by the covered small business concern.

(B) EXCEPTION.—

(i) IN GENERAL.—The requirements under subparagraph (A)(i) shall be waived for a covered small business concern if, before reaching 36 hours of training under subparagraph (A)(i), the covered small business concern is awarded a contract under section 8(a) of the Small Business Act (15 U.S.C. 637(a)).

(ii) REQUIREMENT TO LOG.—Notwithstanding clause (i), a covered small business concern that receives a waiver under clause (i) is required to log the training in which the small business concern participates under subparagraph (A) in accordance with clause (ii) of such subparagraph.

(c) Transition period.—

(1) DEFINITIONS.—In this subsection—

(A) the term “covered small business concern” means a small business concern that is in the final 3 years of participation in the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)); and

(B) the term “economically disadvantaged individual” means an individual described in section 8(a)(6)(A) of the Small Business Act (15 U.S.C. 637(a)(6)(A)).

(2) INCREASED AMOUNTS.—The Administrator may permit the owner of a covered small business concern to have an adjusted gross income and personal net worth that is not more than 3 times higher than the amount allowed for the covered small business program under the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)), and continue to be considered economically disadvantaged for the purposes of that program, if the owner demonstrates—

(A) an investment in the covered small business concern to continue to compete in the Federal contracting market, such as investment in company infrastructure;

(B) a plan for how the covered small business concern is being prepared to compete for Federal contracts after exiting the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)); and

(C) any other metrics as determined by the Administrator.

Not later than 90 days after the date of enactment of this Act, the Administrator shall issue or revise regulations to—

(1) make the review process for small business concerns already certified under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) less burdensome by modifying the annual review of each such small business concern, including by—

(A) providing that, with respect to such an annual review, each such small business concern—

(i) shall submit to the Administrator a new business plan, including a contract forecast, a transitional management plan, and an annual performance of contracts, and a business capture strategy approach only if the plan or approach, as applicable, has changed, as compared with the previous year; and

(ii) may indicate to the Administrator that there has been no change to the business plan or business capture strategy approach described in clause (i) during the previous year; and

(B) making such other reductions in the number of forms and documents submitted by each such small business concern that the Administrator determines necessary, while still ensuring that each such small business concern maintains good standing with respect to the program carried out under such section 8(a);

(2) determine a new process for how the Administrator processes the annual review of each such small business concern that, at a minimum, requires the Administrator to conduct a review, which shall be expedited, of the small business concern when the small business concern is awarded a contract under such section 8(a); and

(3) coordinate with the General Services Administration to streamline the Past Performance Questionnaire form for small business concerns and Federal agencies participating in the programs established under sections 8(a), 8(m), 31, and 36 of the Small Business Act (15 U.S.C. 637(a), 637(m), 657a, 657f).

Section 1302(b) of title 41, United States Code, is amended—

(1) in paragraph (1)—

(A) in subparagraph (C), by striking “and” at the end;

(B) in subparagraph (D), by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following:

“(E) the Administrator of the Small Business Administration.”; and

(2) in paragraph (2)(A), by striking “subparagraphs (B) to (D)” and inserting “subparagraphs (B) through (E)”.

Section 15(k)(3) of the Small Business Act (15 U.S.C. 644(k)(3)) is amended by inserting “be at a level that is not less senior than the Under Secretary of Defense for Policy or the Under Secretary of Defense for Acquisition and Sustainment,” after “appraisals),”.

The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1) in section 8 (15 U.S.C. 637)—

(A) in subsection (a)(1)(D)(i), by striking subclause (II) and inserting the following:

“(II) the anticipated award price of the contract (including options and options periods) will exceed—

“(aa) $12,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for research and development, except that such amount shall be $14,000,000 if the small business concern is a participating or graduated mentor in, or a joint venture established under, the mentor-protege program under section 45;

“(bb) $14,000,000 (or $16,000,000, if the small business concern is a participating or graduated mentor in, or a joint venture established under, the mentor-protege program under section 45) in the case of a contract opportunity described in item (aa), if the small business concern subcontracts with an institution of higher education described in section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a)), for which the limitations on subcontracting under section 46 shall not apply;

“(cc) $14,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing, except that such amount shall be $16,000,000 if the small business concern is a participating or graduated mentor in, or a joint venture established under, the mentor-protege program under section 45; or

“(dd) $10,000,000 in the case of any other contract opportunity, except that such amount shall be $12,000,000 if the small business concern is a participating or graduated mentor in, or a joint venture established under, the mentor-protege program under section 45.”; and

(B) in subsection (m)—

(i) in paragraph (7)(B), by striking clauses (i) and (ii) and inserting the following:

“(i) $12,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for research and development;

“(ii) $14,000,000 in the case of a contract opportunity described in item (aa), if the small business concern partners with an institution of higher education described in section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a));

“(iii) $14,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or

“(iv) $10,000,000 in the case of any other contract opportunity; and”; and

(ii) in paragraph (8)(B), by striking clauses (i) and (ii) and inserting the following:

“(i) $12,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for research and development;

“(ii) $14,000,000 in the case of a contract opportunity described in item (aa), if the small business concern partners with an institution of higher education described in section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a));

“(iii) $14,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or

“(iv) $10,000,000 in the case of any other contract opportunity; and”;

(2) in section 31(c)(2)(A)(ii) (15 U.S.C. 657a(c)(2)(A)(ii)), by striking subclauses (I) and (II) and inserting the following:

“(I) $12,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for research and development;

“(II) $14,000,000 in the case of a contract opportunity described in item (aa), if the qualified HUBZone small business concern partners with an institution of higher education described in section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a));

“(III) $14,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or

“(IV) $10,000,000 in the case of any other contract opportunity; and”; and

(3) in section 36(c)(2) (15 U.S.C. 657f(c)(2)), by striking subparagraphs (A) and (B) and inserting the following:

“(A) $12,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for research and development;

“(B) $14,000,000 in the case of a contract opportunity described in item (aa), if the small business concern partners with an institution of higher education described in section 371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a));

“(C) $14,000,000 in the case of a contract opportunity assigned a North American Industry Classification System code for manufacturing; or

“(D) $10,000,000 in the case of any other contract opportunity; and”.

(a) Removal of restriction on number of mentors.—

(1) IN GENERAL.—Section 45(b)(3)(A) of the Small Business Act (15 U.S.C. 657r(b)(3)(A)) is amended by striking “, including any restrictions” and all that follows through the end of the subparagraph and inserting a period.

(2) REGULATIONS.—The Administrator shall issue regulations to provide that there is no restriction on the number of mentors under section 45 of the Small Business Act (15 U.S.C. 657r) that a small business concern participating in the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) may have while participating in the program, if the mentor-protege relationships do not conflict or compete with each other.

(b) Database.—The Administrator shall create an online centralized database for mentors and proteges (as defined in section 45 of the Small Business Act (15 U.S.C. 657r)) to foster connection and support business development between the 2 groups.

(c) Streamlined process.—The Administrator shall issue regulations to streamline the process for applying to the mentor-protege program established under section 45 of the Small Business Act (15 U.S.C. 657r).

(a) Regulations.—Not later than 1 year after the date of enactment of this Act, the Administrator shall issue regulations to streamline the certification process for small business concerns seeking to become certified as—

(1) a participant in the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a));

(2) a small business concern owned and controlled by women;

(3) a qualified HUBZone small business concern; or

(4) a small business concern owned and controlled by service-disabled veterans.

(b) Report.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to the appropriate committees of Congress a report that outlines how the Administrator plans to streamline the certification process described in subsection (a).

Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is amended by repealing paragraph (11).

(a) Demographic data.—Not later than 180 days after the date of enactment of this Act, and annually thereafter, the Administrator shall—

(1) make publicly available on the website of the Administration—

(A) disaggregated data on the size and number of contracts in total by the Federal Government and by each Federal agency to small business concerns by demographics, including, at a minimum, the gender, race, and ethnicity categories published by the Administration in the disaggregated Federal contracting data in December 2021, and the size of the small business concern; and

(B) data on the number of small business concerns owned and controlled by disabled individuals that are participating in the program established under section 8(a); and

(2) with consultation with the Administrator of General Services, include on SAM.gov the ability for small business concerns to report the data described in paragraph (1)(B).

(b) Review of size standards.—Not later than 180 days after the date of enactment of this Act, the Administrator shall conduct a review of and submit to Congress a report on the size standards applicable to participants in the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)), and outline ways in which the Administration can modify size standards to allow program participants to grow and continue to exist after exiting the program.

(c) Ability To obtain set-Aside and sole source contracts.—Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to Congress a report on—

(1) the ability of small business concerns participating in the program established under 8(a) of the Small Business Act (15 U.S.C. 637(a)) that are not owned by Alaska Native Corporations or Native Hawaiian Organizations to compete for and successfully obtain set-aside contracts, including by reporting data comparing the distribution of awarded set-aside contracts among—

(A) small business concerns participating in that program that are not owned by Alaska Native Corporations or Native Hawaiian Organizations; and

(B) small business concerns participating in that program that are owned by Alaska Native Corporations or Native Hawaiian Organizations; and

(2) the best sole source thresholds to enable small business concerns participating in the program established under 8(a) of the Small Business Act (15 U.S.C. 637(a)) to secure available sole source contracts.

(d) Changes to 8(a) program.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to Congress a report on a plan to implement the changes to the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) required under this title and the amendments made by this title.

There is authorized to be appropriated to the Administration—

(1) for fiscal year 2023 and every fiscal year thereafter—

(A) $20,000,000 to increase the number of procurement center representatives under section 15(l) of the Small Business Act (15 U.S.C. 644(l)) and commercial marketing representatives, of which $2,000,000 of those amounts shall be used to provide those individuals with increased training on the process to be awarded a sole-source contract;

(B) $20,000,000 to increase the number of district office business specialists available under the program established under section 8(a) of the Small Business Act (15 U.S.C. 637(a));

(C) $5,000,000 for costs related to certifying small business concerns as small business concerns owned and controlled by women; and

(D) $400,000 for costs related to processing applications to participate in the mentor-protege program established under section 45 of the Small Business Act (15 U.S.C. 657r); and

(2) for fiscal year 2023, to remain available until expended, $2,500,000 to replace the dynamic small business search database of the Administration.

This title may be cited as the “Community Advantage Loan Program Permanency Act of 2022”.

Congress finds that—

(1) capital access remains one of the largest barriers to overcome for socially and economically disadvantaged business owners as well as for the smallest small businesses;

(2) according to the Double Jeopardy: COVID–19’s Concentrated Health and Wealth Effects in Black Communities study conducted by the Federal Reserve banks, in 2020—

(A) firms owned by people of color are more likely to have weak capitalizations, limited bank relationships, and little in cash reserves; and

(B) 51 percent of Black-owned businesses have less than 3 months of cash reserves in case of an emergency, which is nearly 7 percentage points higher than their peers;

(3) according to the Small Business Credit Survey conducted by the Federal Reserve banks, in 2021—

(A) 31 percent of firms that sought financing received the full financing sought by the firm;

(B) firms owned by people of color were least likely to receive the full amount of financing sought by the firm, with 15 percent of Asian-owned businesses, 16 percent of Black-owned businesses, and 19 percent of Hispanic-owned businesses receiving full financing, as opposed to 35 percent of non-Hispanic White-owned businesses receiving full financing; and

(C) firms with fewer employees were also least likely to receive the full financing sought by the firm, with 23 percent of businesses with 1 to 4 employees and 37 percent of businesses with 5 to 49 employees receiving full financing, as opposed to 55 percent of businesses with 50 to 499 employees receiving full financing;

(4) the Community Advantage Pilot Program of the Administration has helped increase lending backed by the Administration to firms owned by people of color, women, and veterans and firms classified as startups;

(5) from fiscal year 2018 to fiscal year 2022—

(A) 13 percent of loans under the Community Advantage Pilot Program went to Black business owners, while 4 percent of loans under the loan program under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) (in this section referred to as the “7(a) loan program”) went to Black business owners;

(B) 15 percent of loans under the Community Advantage Pilot Program went to Hispanic business owners, while 8 percent of loans under the 7(a) loan program went to Hispanic business owners;

(C) 20 percent of loans under the Community Advantage Pilot Program went to women business owners, while 17 percent of loans under the 7(a) loan program went to women business owners; and

(D) 9 percent of loans under the Community Advantage Pilot Program went to veteran business owners, while 5 percent of loans under the 7(a) loan program went to veteran business owners; and

(6) from fiscal year 2020 to fiscal year 2021, 14 percent of loans under the Community Advantage Pilot Program went to startup business owners, while 7 percent of loans under the 7(a) loan program went to startup business owners.

(a) In general.—Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:

“(38) COMMUNITY ADVANTAGE LOAN PROGRAM.—

“(A) PURPOSES.—The purposes of the Community Advantage Loan Program are—

“(i) to create a mission-oriented loan guarantee program that builds on the demonstrated success of the Community Advantage Pilot Program of the Administration, as established in 2011, to reach more underserved small business concerns;

“(ii) to increase lending to small business concerns in underserved and rural markets, including veterans and members of the military community, socially and economically disadvantaged individuals, as described in paragraphs (5) and (6)(A) of section 8(a), respectively, women, and new businesses;

“(iii) to ensure that the program under this subsection expands inclusion and more broadly meets congressional intent to reach borrowers who are unable to get credit elsewhere on reasonable terms and conditions;

“(iv) to help underserved small business concerns become bankable by utilizing the small dollar financing and business support experience of mission-oriented lenders;

“(v) to allow certain mission-oriented lenders, primarily financial intermediaries focused on economic development in underserved markets, access to guarantees for loans under this subsection (in this paragraph referred to as ‘7(a) loans’) of not more than $350,000 and provide management and technical assistance to small business concerns as needed;

“(vi) to provide certainty for the lending partners that make loans under this subsection and to attract new lenders;

“(vii) to encourage collaboration between mission-oriented and conventional lenders under this subsection in order to support underserved small business concerns; and

“(viii) to assist covered institutions with providing business support services and technical assistance to small business concerns, when needed.

“(B) DEFINITIONS.—In this paragraph—

“(i) the term ‘Community Advantage Network Partner’—

“(I) means a nonprofit, mission-oriented organization that acts as a Referral Agent to covered institutions in order to expand the reach of the program to small businesses in underserved markets; and

“(II) does not include a covered institution making loans under the program;

“(ii) the term ‘covered institution’ means an entity that—

“(I) is—

“(aa) a development company, as defined in section 103 of the Small Business Investment Act of 1958 (15 U.S.C. 662), participating in the 504 Loan Guaranty program established under title V of that Act (15 U.S.C. 695 et seq.);

“(bb) a nonprofit intermediary, as defined in subsection (m)(11), participating in the microloan program under subsection (m);

“(cc) a non-federally regulated entity or a lending institution certified as a community development financial institution by the Community Development Financial Institutions Fund established under section 104(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4703(a)); or

“(dd) an eligible intermediary, as defined in subsection (l)(1), participating in the Intermediary Lending Program established under subsection (l)(2); and

“(II) has approved and disbursed 10 similarly sized loans in the preceding 24-month period and is servicing not less than 10 similarly sized loans to small business concerns in the portfolio of the entity;

“(iii) the term ‘existing business’ means a small business concern that has been in existence for not less than 2 years on the date on which a loan is made to the small business concern under the program;

“(iv) the term ‘new business’ means a small business concern that has been in existence for not more than 2 years on the date on which a loan is made to the small business concern under the program;

“(v) the term ‘program’ means the Community Advantage Loan Program established under subparagraph (C);

“(vi) the term ‘Referral Agent’ has the meaning given the term in section 103.1(f) of title 13, Code of Federal Regulations, or any successor regulation;

“(vii) the term ‘rural area’ means any county that the Bureau of the Census has defined as mostly rural or completely rural in the most recent decennial census; and

“(viii) the term ‘small business concern in an underserved market’ means a small business concern—

“(I) that is located in—

“(aa) a low- to moderate-income community;

“(bb) a HUBZone, as that term is defined in section 31(b);

“(cc) a rural area; or

“(dd) any area for which a disaster declaration or determination described in subparagraph (A), (B), (C), or (E) of subsection (b)(2) has been made that has not terminated more than 2 years before the date (or later, as determined by the Administrator) on which a loan is made to the small business concern under the program, except that, in the case of a major disaster described in subsection (b)(2)(A), that period shall be 5 years;

“(II) for which more than 50 percent of the employees reside in a low- or moderate-income community;

“(III) that is a new business;

“(IV) owned and controlled by socially and economically disadvantaged individuals, as described in paragraphs (5) and (6)(A) of section 8(a), respectively, which the Administrator, in carrying out the program, shall presume includes Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and other minorities;

“(V) owned and controlled by women;

“(VI) owned and controlled by veterans or spouses of veterans;

“(VII) owned and controlled by a member of an Indian Tribe individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131);

“(VIII) owned and controlled by an individual who has completed a term of imprisonment in a Federal, State, or local jail or prison;

“(IX) owned and controlled by an individual with a disability, as that term is defined in section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12102); or

“(X) as otherwise determined by the Administrator.

“(C) ESTABLISHMENT.—There is established a Community Advantage Loan Program under which the Administration may guarantee loans made by covered institutions under this subsection, with an emphasis on loans made to small business concerns in underserved markets.

“(D) PROGRAM LEVELS.—In fiscal year 2023 and each fiscal year thereafter, not more than 10 percent of the number of loans guaranteed under this subsection may be guaranteed under the program.

“(E) GRANDFATHERING OF EXISTING LENDERS.—Any covered institution that actively participated in the Community Advantage Pilot Program of the Administration and is in good standing, as determined by the Administration, on the day before the date of enactment of this paragraph—

“(i) shall retain designation in the program;

“(ii) shall not be required to submit an application to participate in the program; and

“(iii) for the purpose of determining the loan loss reserve amount of the covered institution, shall have participation in the Community Advantage Pilot Program included in the calculation under subparagraph (J).

“(F) REQUIREMENT TO MAKE LOANS TO UNDERSERVED MARKETS.—Not less than 70 percent of loans made by a covered institution under the program shall consist of loans made to small business concerns in underserved markets.

“(G) MAXIMUM LOAN AMOUNT.—The maximum loan amount for a loan guaranteed under the program is $350,000.

“(H) INTEREST RATES.—The maximum allowable interest rate prescribed by the Administration on any financing made on a deferred basis pursuant to the program shall not exceed the maximum allowable interest rate under sections 120.213 and 120.214 of title 13, Code of Federal Regulations, or any successor regulations.

“(I) REFINANCING OF COMMUNITY ADVANTAGE PROGRAM LOANS.—A loan guaranteed under the program or guaranteed under the Community Advantage Pilot Program of the Administration may be refinanced into another 7(a) loan made by lender that does not participate in the program.

“(J) LOAN LOSS RESERVE REQUIREMENTS.—

“(i) LOAN LOSS RESERVE ACCOUNT FOR COVERED INSTITUTIONS.—A covered institution—

“(I) with not more than 5 years of participation in the program shall maintain a loan loss reserve account with an amount equal to 5 percent of the outstanding amount of the unguaranteed portion of the loan portfolio of the covered institution under the program; and

“(II) with more than 5 years of participation in the program shall maintain a loan loss reserve account with an amount equal to the average repurchase rate of the covered institution over the preceding 36-month period.

“(ii) ADDITIONAL LOAN LOSS RESERVE AMOUNT FOR SELLING LOANS ON THE SECONDARY MARKET.—In addition to the amount required in the loan loss reserve account under clause (i), a covered institution that sells a program loan on the secondary market shall be required to maintain the following additional amounts in the loan loss reserve account:

“(I) An amount equal to 2 percent of the guaranteed portion of each program loan sold on the secondary market for lenders with less than 5 years experience selling program loans on the secondary market.

“(II) An amount equal to the average repurchase rate for loans sold by the lender on the secondary market over the preceding 36 months for lenders with more than 5 years experience selling program loans on the secondary market.

“(iii) RECALCULATION.—The loan loss reserve required under clauses (i) and (ii) shall be recalculated on October 1 of each year.

“(K) TRAINING.—The Administration—

“(i) shall provide accessible upfront and ongoing training for covered institutions making loans under the program to support program compliance and improve the interface between the covered institutions and the Administration, which shall include—

“(I) guidance for following the regulations of the Administration; and

“(II) guidance specific to mission-oriented lending that is intended to help lenders effectively reach and support underserved small business concerns, including management and technical assistance delivery;

“(ii) shall ensure that the training described in clause (i) is provided for free or at a low cost;

“(iii) may enter into a contract to provide the training described in clause (i) with an organization with expertise in lending under this subsection and primarily specializing in mission-oriented lending, and lending to underserved markets; and

“(iv) shall provide training for the employees and contractors of the Administration that regularly engage with covered institutions or borrowers in the program.

“(L) COMMUNITY ADVANTAGE OUTREACH AND EDUCATION.—The Administrator—

“(i) shall develop and implement a program to promote to, conduct outreach to, and educate prospective covered institutions about the program, with a focus on women- and minority-owned covered institutions; and

“(ii) may enter into a contract with 1 or more nonprofit organizations experienced in working with and training mission-driven lenders to provide the outreach and education described in clause (i).

“(M) COMMUNITY ADVANTAGE NETWORK PARTNER PARTICIPATION.—

“(i) IN GENERAL.—A covered institution that uses a Community Advantage Network Partner shall abide by policies and procedures of the Administration concerning the use of Referral Agent fees permitted by the Administration and disclosure of those fees.

“(ii) PAYMENT OF FEES.—Notwithstanding any other provision of law, all fees described in clause (i) shall be paid by the covered institution to the Community Advantage Network Partner upon disbursement of the applicable program loan.

“(N) DELEGATED AUTHORITY.—A covered institution is not eligible to receive delegated authority from the Administration under the program until the covered institution has approved and fully disbursed not less than 10 loans under the program and the Administration had evaluated the ability of the covered institution to fulfill program requirements.

“(O) REPORTING.—

“(i) WEEKLY REPORTS.—

“(I) IN GENERAL.—The Administration shall report on the website of the Administration, as part of the weekly reports on lending approvals under this subsection—

“(aa) on and after the date of enactment of this paragraph, the number and dollar amount of loans guaranteed under the Community Advantage Pilot Program of the Administration; and

“(bb) on and after the date on which the Administration begins to approve loans under the program, the number and dollar amount of loans guaranteed under the program.

“(II) SEPARATE ACCOUNTING.—The number and dollar amount of loans reported in a weekly report under subclause (I) for loans guaranteed under the Community Advantage Pilot Program of the Administration and under the program shall include a breakdown by the categories of race, ethnicity, and gender of the owners of the small business concerns, by whether the small business concern is a new or existing small business concern, and by whether the small business concern is located in an urban or rural area, and broken down by—

“(aa) loans of not more than $50,000;

“(bb) loans of more than $50,000 and not more than $150,000;

“(cc) loans of more than $150,000 and not more than $250,000; and

“(dd) loans of more than $250,000 and not more than $350,000.

“(ii) ANNUAL REPORTS.—

“(I) IN GENERAL.—For each fiscal year in which the program is in effect, the Administration shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, and make publicly available on the internet, information about loans provided under the program and under the Community Advantage Pilot Program of the Administration.

“(II) CONTENTS.—Each report submitted and made publicly available under subclause (I) shall include—

“(aa) the number and dollar amounts of loans provided to small business concerns under the program, including a breakdown by—

“(AA) the gender of the owners of the small business concern;

“(BB) the race and ethnicity of the owners of the small business concern, disaggregated in a manner that captures all the racial groups specified in the American Community Survey conducted by the Bureau of the Census;

“(CC) whether the small business concern is located in an urban or rural area; and

“(DD) whether the small business concern is an existing business or a new business, as provided in the weekly reports on lending approvals under this subsection;

“(bb) the proportion of loans described in item (aa) compared to—

“(AA) other 7(a) loans of any amount;

“(BB) other 7(a) loans of similar amounts;

“(CC) express loans provided under paragraph (31) of similar amounts; and

“(DD) other 7(a) loans of similar amounts provided to small business concerns in underserved markets;

“(cc) a comparison of the number and dollar amounts of loans provided to small business concerns under the program and under each category of loans described in item (aa), broken down by—

“(AA) loans of not more than $50,000;

“(BB) loans of more than $50,000 and not more than $150,000;

“(CC) loans of more than $150,000 and not more than $250,000; and

“(DD) loans of more than $250,000 and not more than $350,000;

“(dd) the number and dollar amounts of loans provided to small business concerns under the program by State, and the jobs created or retained within each State;

“(ee) a list of covered institutions participating in the program and the Community Advantage Pilot Program of the Administration, including—

“(AA) the name, location, and contact information, such as the website and telephone number, of each covered institution; and

“(BB) a breakdown by the number and dollar amount of the loans approved for small business concerns; and

“(ff) the benchmarks established by the Community Advantage Working Group under subparagraph (O)(i).

“(III) TIMING.—An annual report required under this clause shall—

“(aa) be submitted and made publicly available not later than December 1 of each year; and

“(bb) cover the lending activity for the fiscal year that ended on September 30 of that same year.

“(P) GAO REPORT.—Not later than 5 years after the date of enactment of this paragraph, the Comptroller General of the United States shall submit to the Administrator, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives a report—

“(i) assessing—

“(I) the extent to which the program fulfills the requirements of this paragraph; and

“(II) the performance of covered institutions participating in the program; and

“(ii) providing recommendations on the administration of the program and the findings under subclauses (I) and (II) of clause (i).

“(Q) COMMUNITY ADVANTAGE WORKING GROUP.—

“(i) IN GENERAL.—Not later than 90 days after the date of enactment of this paragraph, the Administrator shall establish a Community Advantage Working Group, which shall—

“(I) include—

“(aa) a geographically diverse representation of members from among covered institutions participating in the program; and

“(bb) representatives from the Office of Capital Access of the Administration, including the Office of Credit Risk Management, the Office of Financial Assistance, and the Office of Economic Opportunity;

“(II) develop recommendations on how the Administration can effectively manage, support, and promote the program and the mission of the program;

“(III) establish metrics of success and benchmarks that reflect the mission and population served by covered institutions under the program, which the Administration shall use to evaluate the performance of those covered institutions;

“(IV) establish criteria assessing the business support services and technical assistance needs of borrowers and methods to assess lender expertise to provide necessary services and assistance; and

“(V) institute regular and sustainable systems of communication between the Administration and covered institutions participating in the program.

“(ii) REPORT.—Not later than 1 year after the date of enactment of this paragraph, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that includes—

“(I) the recommendations of the Community Advantage Working Group established under clause (i); and

“(II) a recommended plan and timeline for implementation of those recommendations.

“(R) REGULATIONS.—

“(i) IN GENERAL.—Not later than 180 days after the date of enactment of this paragraph, the Administrator shall promulgate regulations governing the program, including metrics for lender performance, metrics of success and benchmarks of the program, and criteria for appropriate management and technical assistance.

“(ii) UPDATES.—The Administrator shall consult the report issued under subparagraph (P) and, not later than 180 days after submission of the report, promulgate any necessary changes to existing regulations of the Administration based on the recommendations contained in the report.

“(S) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated such sums as may be necessary to conduct outreach and education described in subparagraph (L).”.

(b) Participation.—Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is amended—

(1) in subparagraph (A), in the matter preceding clause (i), by striking “and (F)” and inserting “(F), and (G)”; and

(2) by adding at the end the following:

“(G) PARTICIPATION IN THE COMMUNITY ADVANTAGE LOAN PROGRAM.—In an agreement to participate in a loan on a deferred basis under paragraph (38), the participation by the Administration shall be—

“(i) 80 percent of the balance of the financing outstanding at the time of the disbursement of the loan, if that balance is more than $150,000 and not more than $350,000; or

“(ii) 90 percent of the balance of the financing outstanding at the time of the disbursement of the loan, if that balance is not more than $150,000.”.

This title may be cited as the “STEP Improvement Act of 2022”.

(a) Application requirements.—Section 22(l)(3) of the Small Business Act (15 U.S.C. 649(l)(3)) is amended—

(1) in subparagraph (D)—

(A) in clause (i), by inserting “, including a budget plan for use of funds awarded under this subsection” before the period at the end; and

(B) by adding at the end the following:

“(iii) TIMING.—The Associate Administrator shall—

“(I) publish information on how to apply for a grant under this subsection, including specific calculations and other determinations used to award such a grant, not later than March 31 of each year;

“(II) establish a deadline for the submission of applications that is not earlier than 60 days after the date on which the information is published under subclause (I) and that is not later than May 31; and

“(III) announce grant recipients not later than August 31 of each year.”; and

(2) by adding at the end the following:

“(E) APPLICATION INFORMATION.—The Associate Administrator shall clearly communicate to applicants and grant recipients any information about State Trade Expansion Program, including—

“(i) for each unsuccessful applicant for a grant awarded under this subsection, recommendations to improve a subsequent application for such a grant; and

“(ii) for each successful applicant for such a grant, an explanation for the amount awarded, if different from the amount requested in the application.

“(F) BUDGET PLAN REVISIONS.—

“(i) IN GENERAL.—A State receiving a grant under this subsection may revise the budget plan of the State submitted under subparagraph (D) after the disbursal of grant funds if—

“(I) the revision complies with allowable uses of grant funds under this subsection; and

“(II) such State submits notification of the revision to the Associate Administrator.

“(ii) EXCEPTION.—If a revision under clause (i) reallocates 10 percent or more of the amounts described in the budget plan of the State submitted under subparagraph (D), the State may not implement the revised budget plan without the approval of the Associate Administrator, unless the Associate Administrator fails to approve or deny the revised plan within 20 days after receipt of such revised plan.”.

(b) Survey.—Section 22(l) of the Small Business Act (15 U.S.C. 649(l)) is amended—

(1) by redesignating paragraphs (7) through (9) as paragraphs (8) through (10), respectively; and

(2) by inserting after paragraph (6) the following:

“(7) SURVEY.—The Associate Administrator shall conduct an annual survey of each State that received a grant under this subsection during the preceding year to solicit feedback on the program and develop best practices for grantees.”.

(c) Annual report.—Paragraph (8)(B) of section 22(l) of the Small Business Act (15 U.S.C. 649(l)), as redesignated by subsection (b), is amended—

(1) in clause (i)—

(A) in subclause (III), by inserting “, including the total number of eligible small business concerns assisted by the program (disaggregated by socially and economically disadvantaged small business concerns, small business concerns owned and controlled by women, and rural small business concerns)” before the semicolon at the end;

(B) in subclause (IV), by striking “and” at the end;

(C) in subclause (V)—

(i) by striking “description of best practices” and inserting “detailed description of best practices”; and

(ii) by striking the period at the end and inserting a semicolon; and

(D) by adding at the end the following:

“(VI) an analysis of the performance metrics described in clause (iii), including a determination of whether or not any goals relating to such performance metrics were met, and an analysis of the survey described in paragraph (7); and

“(VII) a description of lessons learned by grant recipients under this subsection that may apply to other assistance provided by the Administration.”; and

(2) by adding at the end the following:

“(iii) PERFORMANCE METRICS.—Annually, the Associate Administrator shall collect data on eligible small business concerns assisted by the program for the following performance metrics:

“(I) Total number of such concerns, disaggregated by socially and economically disadvantaged small business concerns, small business concerns owned and controlled by women, and rural small business concerns.

“(II) Total dollar amount of export sales by eligible small business concerns assisted by the program.

“(III) Number of such concerns that have not previously participated in an activity described in paragraph (2).

“(IV) Number of such concerns that, because of participation in the program, have accessed a new market.

“(V) Number of such concerns that, because of participation in the program, have created new jobs.

“(VI) Number of such concerns participating in foreign trade missions or trade show exhibitions, disaggregated by socially and economically disadvantaged small business concerns, small business concerns owned and controlled by women, and rural small business concerns.”.

(d) Expansion of definition of eligible small business concern.—Section 22(l)(1)(A) of the Small Business Act (15 U.S.C. 649(l)(1)(A)) is amended—

(1) in clause (iii)(II), by adding “and” at the end;

(2) by striking clause (iv); and

(3) by redesignating clause (v) as clause (iv).

(e) Authorization of appropriations.—Paragraph (10) of section 22(l) of the Small Business Act (15 U.S.C. 649(l)), as redesignated by subsection (b), is amended by striking “fiscal years 2016 through 2020” and inserting “fiscal years 2023 through 2026”.

(f) Report to Congress.—Not later than 1 year after the date of enactment of this Act, the Associate Administrator for International Trade of the Administration shall submit to Congress a report on the State Trade Expansion Program established under section 22(l) of the Small Business Act (15 U.S.C. 649(l)) that includes a description of—

(1) the process developed for review of revised budget plans submitted under subparagraph (F) of section 22(l)(3) of the Small Business Act (15 U.S.C. 649(l)(3)), as added by this title;

(2) any changes made to streamline the application process to remove duplicative requirements and create a more transparent process;

(3) the process developed to share best practices by States described in paragraph (8)(B)(i)(V) of section 22(l) of the Small Business Act (15 U.S.C. 649(l)), as redesignated by this title, particularly for first-time grant recipients under the State Trade Expansion Program or grant recipients that are facing problems using grant funds; and

(4) the process developed to communicate, both verbally and in writing, relevant information about the State Trade Expansion Program to all grant recipients in a timely manner.

(a) In general.—Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by striking subsection (f) and inserting the following:

“(f) Veteran federal procurement entrepreneurship training program.—The Administrator, acting through the Associate Administrator, shall make grants to, or enter into a cooperative agreement with, not more than 1 nonprofit entity to operate a Federal procurement entrepreneurship training program to provide assistance to small business concerns owned and controlled by veterans regarding how to increase the likelihood of being awarded contracts with the Federal Government—

“(1) which shall be made to or entered into with a nonprofit entity that has a track record of successfully providing educational and job training services to targeted veteran populations from diverse locations;

“(2) under which the nonprofit entity may, at the discretion of the Administrator, be required to match any Federal funds received for the program with State, local, or private sector funds; and

“(3) under which the nonprofit entity shall use a diverse group of professional service experts, such as Federal, State, and local contracting experts and private sector industry experts with first-hand experience in Federal Government contracting, to provide instruction to small business concerns owned and controlled by veterans.”.

(b) Authorization of appropriations.—There are authorized to be appropriated to the Administration, $1,000,000 for each of fiscal years 2023 through 2027 to carry out section 32 of the Small Business Act (15 U.S.C. 657b), as amended by subsection (a).

Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by adding at the end the following:

“(h) Boots to Business Program.—

“(1) COVERED INDIVIDUAL DEFINED.—In this subsection, the term ‘covered individual’ means—

“(A) a member of the Armed Forces, including the National Guard or Reserves;

“(B) an individual who is participating in the Transition Assistance Program established under section 1144 of title 10, United States Code;

“(C) an individual who—

“(i) served on active duty in any branch of the Armed Forces, including the National Guard or Reserves; and

“(ii) was discharged or released from such service under conditions other than dishonorable; and

“(D) a spouse or dependent of an individual described in subparagraph (A), (B), or (C).

“(2) ESTABLISHMENT.—During the period beginning on the date of enactment of this subsection and ending on September 30, 2027, the Administrator shall carry out a program to be known as the ‘Boots to Business Program’ to provide entrepreneurship training to covered individuals.

“(3) GOALS.—The goals of the Boots to Business Program are to—

“(A) provide assistance and in-depth training to covered individuals interested in business ownership; and

“(B) provide covered individuals with the tools, skills, and knowledge necessary to identify a business opportunity, draft a business plan, identify sources of capital, connect with local resources for small business concerns, and start up a small business concern.

“(4) PROGRAM COMPONENTS.—

“(A) IN GENERAL.—The Boots to Business Program may include—

“(i) a presentation providing exposure to the considerations involved in self-employment and ownership of a small business concern;

“(ii) an online, self-study course focused on the basic skills of entrepreneurship, the language of business, and the considerations involved in self-employment and ownership of a small business concern;

“(iii) an in-person classroom instruction component providing an introduction to the foundations of self-employment and ownership of a small business concern; and

“(iv) in-depth training delivered through online instruction, including an online course that leads to the creation of a business plan.

“(B) COLLABORATION.—The Administrator may—

“(i) collaborate with public and private entities to develop course curricula for the Boots to Business Program; and

“(ii) modify program components in coordination with entities participating in a Warriors in Transition program, as defined in section 738(e) of the National Defense Authorization Act for Fiscal Year 2013 (10 U.S.C. 1071 note).

“(C) USE OF RESOURCE PARTNERS AND DISTRICT OFFICES.—

“(i) IN GENERAL.—The Administrator shall—

“(I) ensure that Veteran Business Outreach Centers regularly participate, on a nationwide basis, in the Boots to Business Program; and

“(II) to the maximum extent practicable, use district offices of the Administration and a variety of other resource partners and entities in administering the Boots to Business Program.

“(ii) GRANT AUTHORITY.—In carrying out clause (i), the Administrator may make grants to Veteran Business Outreach Centers, other resource partners, or other entities to carry out components of the Boots to Business Program.

“(D) AVAILABILITY TO DEPARTMENT OF DEFENSE AND THE DEPARTMENT OF LABOR.—The Administrator shall make available to the Secretary of Defense and the Secretary of Labor information regarding the Boots to Business Program, including all course materials and outreach materials related to the Boots to Business Program, for inclusion on the websites of the Department of Defense and the Department of Labor relating to the Transition Assistance Program, in the Transition Assistance Program manual, and in other relevant materials available for distribution from the Secretary of Defense and the Secretary of Labor.

“(E) AVAILABILITY TO DEPARTMENT OF VETERANS AFFAIRS.—In consultation with the Secretary of Veterans Affairs, the Administrator shall make available for distribution and display on the website of the Department of Veterans Affairs and at local facilities of the Department of Veterans Affairs outreach materials regarding the Boots to Business Program, which shall, at a minimum—

“(i) describe the Boots to Business Program and the services provided; and

“(ii) include eligibility requirements for participating in the Boots to Business Program.

“(F) AVAILABILITY TO OTHER PARTICIPATING AGENCIES.—The Administrator shall ensure information regarding the Boots to Business program, including all course materials and outreach materials related to the Boots to Business Program, is made available to other participating agencies in the Transition Assistance Program and upon request of other agencies.

“(5) COMPETITIVE BIDDING PROCEDURES.—The Administration shall use relevant competitive bidding procedures with respect to any contract or cooperative agreement executed by the Administration under the Boots to Business Program.

“(6) PUBLICATION OF NOTICE OF FUNDING OPPORTUNITY.—Not later than 30 days before the deadline for submitting applications for any funding opportunity under the Boots to Business Program, the Administration shall publish a notice of the funding opportunity.

“(7) REPORT.—Not later than 180 days after the date of enactment of this subsection, and not less frequently than annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the performance and effectiveness of the Boots to Business Program, which—

“(A) may be included as part of another report submitted to such committees by the Administrator related to the Office of Veterans Business Development; and

“(B) shall summarize available information relating to—

“(i) grants awarded under paragraph (4)(C);

“(ii) the total cost of the Boots to Business Program;

“(iii) the number of program participants using each component of the Boots to Business Program;

“(iv) the completion rates for each component of the Boots to Business Program;

“(v) to the extent possible—

“(I) the demographics of program participants, to include gender, age, race, ethnicity, and relationship to military;

“(II) the number of program participants that connect with a district office of the Administration, a Veteran Business Outreach Center, or another resource partner of the Administration;

“(III) the number of program participants that start a small business concern;

“(IV) the results of the Boots to Business and Boots to Business Reboot course quality surveys conducted by the Office of Veterans Business Development before and after attending each of those courses, including a summary of any comments received from program participants;

“(V) the results of the Boots to Business Program outcome surveys conducted by the Office of Veterans Business Development, including a summary of any comments received from program participants; and

“(VI) the results of other germane participant satisfaction surveys;

“(C) an evaluation of the overall effectiveness of the Boots to Business Program based on each geographic region covered by the Administration during the most recent fiscal year;

“(D) an assessment of additional performance outcome measures for the Boots to Business Program, as identified by the Administrator;

“(E) any recommendations of the Administrator for improvement of the Boots to Business Program, which may include expansion of the types of individuals who are covered individuals;

“(F) an explanation of how the Boots to Business Program has been integrated with other transition programs and related resources of the Administration and other Federal agencies; and

“(G) any additional information the Administrator determines necessary.”.

Part B of title IV of the Small Business Investment Act of 1958 (15 U.S.C. 694a et seq.) is amended—

(1) in section 411(a) (15 U.S.C. 694b(a))—

(A) in paragraph (1)—

(i) in subparagraph (A), by striking “$6,500,000” and inserting “$10,000,000”; and

(ii) by amending subparagraph (B) to read as follows:

“(B) The Administrator may guarantee a surety under subparagraph (A) for a total work order or contract entered into by a Federal agency in an amount that does not exceed $20,000,000.”; and

(2) in section 412 (15 U.S.C. 694c)—

(A) in subsection (a), in the third sentence, by striking “, excluding administrative expenses,”;

(B) by redesignating subsection (b) as subsection (c); and

(C) by inserting after subsection (a) the following:

“(b) Not more than 5 percent of the amount that is in the fund described in subsection (a) at the beginning of each fiscal year may be obligated during that fiscal year to cover costs incurred by the Administration in connection with the management and administration of this part, including information technology and systems, personnel costs, outreach activities, and contracts related thereto.”.

(a) Sense of congress.—It is the sense of Congress that the Office of Innovation and Investment should market to, engage with, and provide enhanced onboarding support to applicants for small business investment company licenses, with a priority to reach those companies that are managed by—

(1) women;

(2) socially disadvantaged individuals, as described in section 8(a)(5) of the Small Business Act (15 U.S.C. 637(a)(5));

(3) economically disadvantaged individuals, as described in section 8(a)(6)(A) of the Small Business Act (15 U.S.C. 637(a)(6)(A));

(4) veterans, as defined in section 101 of title 38, United States Code; or

(5) individuals in rural or low-income areas, as determined by the Administrator using the most recently available data from the Bureau of the Census.

(b) Amendment.—Part A of title III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at the end the following:

This title may be cited as the “Necessary Entrepreneurship Workshops via the SBA to Transform and Assist Re-entry Training Act of 2022” or the “NEW START Act of 2022”.

Congress finds that—

(1) according to the Department of Justice, every year, over 600,000 individuals are released from prison and return home to their communities, and almost 77 percent of those individuals will reoffend within 5 years;

(2) according to the Brookings Institute, an estimated 48.5 percent of formerly incarcerated individuals will remain unemployed or earn a negligible income for a period of 1 year post-incarceration, increasing the risk for recidivism;

(3) according to the Florida State University Institute for Justice Research and Development, formerly incarcerated individuals see a reduction in earnings of 25 percent since criminal records make it difficult to find stable employment;

(4) self-employment can provide economic stability for those who are otherwise locked out of the labor market; and

(5) according to a paper entitled “Entrepreneurship as a Response to Labor Market Discrimination for Formerly Incarcerated People”—

(A) the average individual without a criminal record has a 7.09 percent likelihood of becoming an entrepreneur, but justice-impacted individuals were found to be more than 50 percent likely to choose entrepreneurship with a 12.69 percent likelihood of becoming an entrepreneur;

(B) entrepreneurship reduces the likelihood of recidivism by 5.3 percent, which was a 32.5 percent decrease from average recidivism rates for regular employees who have been previously incarcerated; and

(C) formerly incarcerated individuals who choose entrepreneurship make $2,700 more annually than formerly incarcerated employees and that the income gap between formerly incarcerated entrepreneurs and entrepreneurs with no criminal record was 38 percent lower than the income gap between formerly incarcerated employees and employees with no criminal record.

(a) Definitions.—In this title:

(1) COVERED INDIVIDUAL.—The term “covered individual” means an individual who—

(A) completed a term of imprisonment in Federal, State, or local jail or prison; and

(B) meets the offense eligibility requirements set forth in any applicable policy notice or other guidance issued by the Administration for the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)).

(2) INTERMEDIARY; MICROLOAN.—The terms “intermediary” and “microloan” have the meanings given those terms in section 7(m)(11) of the Small Business Act (15 U.S.C. 636(m)(11)).

(3) MICROLOAN INTERMEDIARY.—The term “microloan intermediary” means an intermediary that is eligible to participate in the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)).

(4) PILOT PROGRAM.—The term “pilot program” means the pilot program established under subsection (b).

(b) Establishment.—Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a pilot program to award grants to organizations over a 5-year period to create or support existing entrepreneurship development programs to provide assistance to covered individuals.

(c) Grant requirements.—The Administrator shall—

(1) award grants under the pilot program to organizations, or partnerships of organizations, which shall each receive a grant in an amount greater than $100,000 and less than $500,000 annually over the 5-year period in which the pilot program is in existence; and

(2) allocate grants under the pilot program to ensure that the recipients are geographically varied throughout the United States.

(d) Partnerships.—An applicant for a grant under the pilot program may form partnerships with other organizations for the purposes of the application submitted under subsection (e) and for conducting entrepreneurial development programming.

(e) Application.—

(1) IN GENERAL.—An organization or partnership of organizations desiring a grant under the pilot program shall submit an application to the Administrator in such form, in such manner, and containing such information as the Administrator may reasonably require.

(2) CONTENTS.—An application submitted under paragraph (1) shall—

(A) demonstrate that the applicant is a microloan intemediary or an organization that administers the Community Advantage Pilot Program of the Administration, or has a partnership with such an intermediary or organization, that may provide microloans to qualified covered individuals, or, to the extent that the applicant is a national organization in multiple different markets, that a separate microloan intermediary may be used in each such market;

(B) demonstrate strong community ties, including those with the covered individual community, local businesses, and political leaders;

(C) demonstrate an ability to provide a full range of entrepreneurial development programming on an ongoing basis;

(D) include a plan for reaching covered individuals, including by identifying particular target populations within the community;

(E) clearly define entrepreneurial development capabilities, including coordination with existing local resource partners of the Administration for additional training as necessary;

(F) present an entrepreneurship development curriculum, which may be a nationally recognized model or based upon such a model;

(G) include a list of each partner organization; and

(H) include a comprehensive plan for the use of grant funds, including estimates for administrative and outreach costs of running and evaluating the entrepreneurship development program.

(f) Priority.—In determining whether to award a grant under the pilot program, the Administrator may give priority to applicants based on—

(1) whether the application includes a commitment from an existing or new non-Federal funding source to meet the matching requirement under subsection (g);

(2) whether the application takes into account local economies and markets as a part of the educational component of the entrepreneurship development program;

(3) the ability or plan of the applicant to provide entrepreneurial development services concurrent with employment or job training services; and

(4) whether the applicant has a history of effectively providing entrepreneurial training or access to capital to covered individuals.

(g) Matching requirement.—

(1) IN GENERAL.—As a condition of a grant provided under the pilot program, the Administrator shall require the recipient of the grant to contribute an amount equal to 25 percent of the amount of the grant, obtained solely from existing or new non-Federal sources.

(2) FORM.—In addition to cash or other direct funding, the contribution required under paragraph (1) may include indirect costs or in-kind contributions paid for under non-Federal programs.

(h) Responsibilities.—A recipient of a grant under the pilot program shall, to the maximum extent possible, connect covered individuals to a range of Federal resources, including—

(1) the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m));

(2) the Community Advantage Pilot Program of the Administration;

(3) small business development centers, as defined in section 3 of the Small Business Act (15 U.S.C. 632);

(4) women’s business centers described in section 29 of the Small Business Act (15 U.S.C. 656);

(5) chapters of the Service Corps of Retired Executives established under section 8(b)(1)(B) of the Small Business Act ((15 U.S.C. 637(b)(1)(B));

(6) Veteran Business Outreach Centers described in section 32 of the Small Business Act (15 U.S.C. 657b); and

(7) business centers established by the Minority Business Development Agency.

(i) Reports.—

(1) IN GENERAL.—Not later than 1 year after the date on which the Administrator establishes the pilot program, and every year thereafter until the pilot program terminates, the Administrator shall submit to Congress a report on the activities of the pilot program, including—

(A) a list of each grantee organization and each partner organization;

(B) the characteristics of covered individuals assisted under the entrepreneurship development programs, including race and ethnicity, gender, age, marital status, parental status, employment status, income, banking and credit history, and prior business experience;

(C) the participation and attendance rates for all components of the entrepreneurship development programs;

(D) the program retention rate;

(E) to the greatest extent practicable, the most common reasons why participants do not complete the program;

(F) the percentage of participants who remain non-justice involved during the calendar year of the program;

(G) the level of the covered individuals' understanding of business concepts and principles;

(H) the level of the covered individuals' greater confidence in leadership strengths, including the results of an industry-recognized behavioral assessment;

(I) the covered individuals' progress made toward establishing a business;

(J) the experiences and perceptions of the covered individuals;

(K) the number and dollar amount of loans made to covered individuals;

(L) the number and dollar amount of loans made or guaranteed by the Administration to covered individuals; and

(M) such additional information as the Administrator may require.

(2) GAO REPORT.—Not later than 1 year after the date on which the pilot program terminates, the Comptroller General of the United States shall submit to the appropriate committees of Congress a report that evaluates—

(A) the services that grant recipients provided to covered individuals assisted under entrepreneurship development programs;

(B) oversight of the pilot program by the Administrator, including policies and procedures for monitoring the compliance by grant recipients with pilot program requirements and an assessment of the effectiveness of the pilot program; and

(C) the overall performance of the pilot program and the impacts of the pilot program on grant recipients.

(j) Rule of construction.—Nothing in this title may be construed to affect the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)), including—

(1) the requirements of that program;

(2) the manner in which that program is carried out; or

(3) the use or availability of any amounts that have been made available to carry out that program.

(k) Authorization of appropriations.—There are authorized to be appropriated to the Administrator such sums as are necessary to carry out the pilot program.

(l) Termination.—The pilot program shall terminate on the date that is 5 years after the date on which the Administrator establishes the pilot program.

This title may be cited as the “Ushering Progress by Leveraging Innovation and Future Technology Act of 2022” or the “UPLIFT Act of 2022”.

Congress finds the following:

(1) Studies have found that incubators, accelerators, and other similar models are effective at increasing revenues, the number of employees, and the likelihood that the business venture will be successful for participants.

(2) According to the Kauffman Foundation—

(A) minority-owned and women-owned businesses are ¹⁄2 as likely to employ people than nonminority-owned and men-owned businesses; and

(B) if minorities started businesses at the same rate as nonminorities, approximately 9,500,000 jobs would be added to the economy of the United States.

(3) The Kauffman Foundation also found that the percentage of startups in rural communities has dropped from 20 percent in the 1980s to 12.2 percent.

(4) According to the Martin Prosperity Institute, less than 1 percent of all venture capital funding goes to businesses located in rural areas.

(5) According to PitchBook, around 2 percent of all venture capital funding goes to businesses with women founders.

(6) According to Crunchbase, less than 3 percent of all venture capital funding goes to businesses with Black and Hispanic founders.

(7) Historically Black colleges and universities, minority-serving institutions, and community colleges are anchor institutions that serve populations that tend to be underrepresented in entrepreneurship, particularly in high-growth sectors.

The purposes of the Innovation Centers Program established under section 49 of the Small Business Act, as added by this title, are to—

(1) spur economic growth in underserved communities by creating good paying jobs and pathways to prosperity;

(2) increase prospects for success for small business concerns in underserved communities, which often suffer from higher business failure rates than the national average;

(3) help create a pipeline for small business concerns in underserved and rural markets into high-growth sectors, where they are generally underrepresented;

(4) help address the multi-decade decline in the rate of new business creation;

(5) close the gaps that underserved small business concerns often have in terms of revenue and number of employees, which represent lost opportunity for the economy of the United States; and

(6) encourage collaboration between the Administration and institutions of higher learning that serve low-income and minority communities.

(a) In general.—The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1) by redesignating section 49 (15 U.S.C. 631 note) as section 50; and

(2) by inserting after section 48 (15 U.S.C. 657u) the following:

(b) Regulations.—The Administrator shall promulgate regulations to carry out section 49 of the Small Business Act, as added by subsection (a).