House passes Small Business Development Centers Enhancement Act 2022


If the Senate approves the Small Business Development Centers Enhancement Act of 2022 (HR6445), the program will be recharged with an increase of $40 million per year.

HR 6445 would reauthorize the SBDC Act of 2019 (HR 4406) which would expire in 2023. If approved by the Senate, HR 6445 would continue until 2025.

HR 6445 – Houses bill increases SBDC funding by $40 million

SBDCs are operated by the Small Business Administration, in partnership with state and local governments and the private sector. Currently, there are 900 across the country.

Small business owners can use the expertise of the people at SBDCs for help with developing business plans, securing financing, learning about e-commerce, marketing, and planning for growth.

The influx of additional funds would strengthen the existing network and enable the establishment of new SBDCs.

How does this help small business owners? The SBDC Improvement Act of 2022 has some interesting changes:

Fees for private partnerships or co-sponsors

An SBDC that has a private partnership or co-sponsorship may collect fees related to the operation of those private partnerships or co-sponsorships. In other words, a small business that establishes such an agreement with the SBDC can collect fees for its work.

Matching funds

Many grants require the applicant to provide matching funds. Typically, matching funds are due when federal money is received. This language is changed in HR 6445 to read “not due when federal funds are received but necessary for final reconciliation”. In other words, you would not have to match the funds up front, but you would be required to do so to finalize the award.

Reportable data collection activities

The SBA should create a data collection working group. Any recommendations should be referred to the Small Business and Entrepreneurship Committee.

Authorized marketing

The SBDC can use up to 10% of its funds for marketing to reach individuals and small businesses.

Related Legislation, Women’s Business Center HR 6441, Passes House

The House also passed HR 6441. The Women’s Business Center HR 6441 would authorize $31.5 million each year (2022-2025) to be received in the WBC program.

Sharice Davids, D-Kansas, sponsored both measures and serves as their chair.

Small businesses in all their forms continue to feel the devastating effects of strong economic headwinds, from the highest rate of inflation in 40 years to supply chain issues and labor shortages. who left the country with 10.9 million jobs open; small businesses face tough economic conditions,” Davids said, in his opening remarks to the House Committee on Small Business and Entrepreneurship as the committee prepared to work on the bill. “When small business owners are able to plan with certainty and take calculated risks, our nation moves forward.”

Both bills passed the House on April 26. For a bill to become law, it must be passed in the Senate and signed by the President.

HR 6441 Women’s Business Center has a 20% chance of moving to the Senate.

HR 6445 SBDC Improvement Act of 2022 has a 22% chance of passing the Senate.

Why do both measures seem unlikely to pass? Several bills are currently in circulation regarding the SBDC and WBC laws. Although each bill has a slim chance of being passed, the Senate may strive to combine related proposed legislation into a single measure.

Image: Depositphotos


Comments are closed.