Small Business Development Centers Improvement Act of 2023
The proposed changes include the requirement for the Small Business Administration (SBA) to notify Congress before expanding or altering service offerings. It also emphasizes the need for annual reporting on the activities of SBDCs, specifically detailing demographics and performance metrics such as the number of businesses started with their assistance. These reforms aim to make SBDCs more effective while providing a clearer picture of their impact on the small business landscape, particularly in terms of job creation and capital acquisition.
House Bill 5367, titled the Small Business Development Centers Improvement Act of 2023, focuses on amending the Small Business Act to enhance the effectiveness of Small Business Development Centers (SBDCs). This bill aims to improve the delivery of entrepreneurial development services and ensure that these centers can provide better support and education to small businesses. By tightening regulations around how services are provided, the bill seeks to streamline processes while ensuring accountability and transparency in the use of federal funds allocated for small business support.
Notably, the bill introduces limitations on the awarding of grants to SBDCs and other related entities unless they have demonstrated prior involvement with the SBA. This provision could be contentious, as it may restrict new organizations from entering the program, potentially stifling innovation and diversity within the support network for small businesses. Moreover, the call for more robust data collection may raise concerns regarding privacy and operational burdens on these centers, especially those serving underrepresented communities.