§ 648. Small business development center pro-
gram authorization
(a) Grants, contracts and cooperative agree-
ments for establishment of small business de-
velopment centers and for small business ac-
tivities and purposes; role of Administration;
non-Federal additional amount; amount of
grant; eligibility
(1) The Administration is authorized to make
grants (including contracts and cooperative
agreements) to any State government or any
agency thereof, any regional entity, any State-
chartered development, credit or finance cor-
poration, any women’s business center operating
pursuant to section 656 of this title, any public
or private institution of higher education, in-
cluding but not limited to any land-grant col-
lege or university, any college or school of busi-
ness, engineering, commerce, or agriculture,
community college or junior college, or to any
entity formed by two or more of the above enti-
ties (herein referred to as ‘‘applicants’’) to assist
in establishing small business development cen-
ters and to any such body for: small business
oriented employment or natural resources devel-
opment programs; studies, research, and coun-
seling concerning the managing, financing, and
operation of small business enterprises; manage-
ment and technical assistance regarding small
business participation in international markets,
export promotion and technology transfer; de-
livery or distribution of such services and infor-
mation; providing access to business analysts
who can refer small business concerns to avail-
able experts; and, to the extent practicable, pro-
viding assistance in furtherance of the Small
Business Development Center Cyber Strategy
developed under section 1841(a) of the National
Defense Authorization Act for Fiscal Year 2017:
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Authority boundary: historical or unconfirmed source not current law verified.
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Page 1006
TITLE 15—COMMERCE AND TRADE
§ 648
1 So in original. Probably should not be capitalized.
§ 648. Small business development center pro-
gram authorization
(a) Grants, contracts and cooperative agree-
ments for establishment of small business de-
velopment centers and for small business ac-
tivities and purposes; role of Administration;
non-Federal additional amount; amount of
grant; eligibility
(1) The Administration is authorized to make
grants (including contracts and cooperative
agreements) to any State government or any
agency thereof, any regional entity, any State-
chartered development, credit or finance cor-
poration, any women’s business center operating
pursuant to section 656 of this title, any public
or private institution of higher education, in-
cluding but not limited to any land-grant col-
lege or university, any college or school of busi-
ness, engineering, commerce, or agriculture,
community college or junior college, or to any
entity formed by two or more of the above enti-
ties (herein referred to as ‘‘applicants’’) to assist
in establishing small business development cen-
ters and to any such body for: small business
oriented employment or natural resources devel-
opment programs; studies, research, and coun-
seling concerning the managing, financing, and
operation of small business enterprises; manage-
ment and technical assistance regarding small
business participation in international markets,
export promotion and technology transfer; de-
livery or distribution of such services and infor-
mation; providing access to business analysts
who can refer small business concerns to avail-
able experts; and, to the extent practicable, pro-
viding assistance in furtherance of the Small
Business Development Center Cyber Strategy
developed under section 1841(a) of the National
Defense Authorization Act for Fiscal Year 2017:
Provided, That after December 31, 1990, the Ad-
ministration shall not make a grant to any ap-
plicant other than an institution of higher edu-
cation or a women’s business center operating
pursuant to section 656 of this title as a Small
Business Development Center unless the appli-
cant was receiving a grant (including a contract
or cooperative agreement) on such date. The
previous sentence shall not apply to an appli-
cant that has its principal office located in the
Commonwealth of the Northern Mariana Is-
lands. The Administration shall require any ap-
plicant for a small business development center
grant with performance commencing on or after
January 1, 1992 to have its own budget and to
primarily utilize institutions of higher edu-
cation and women’s business centers operating
pursuant to section 656 of this title to provide
services to the small business community. The
term of such grants shall be made on a calendar
year basis or to coincide with the Federal fiscal
year.
(2) COOPERATION
TO
PROVIDE
INTERNATIONAL
TRADE SERVICES.—
(A) INFORMATION AND SERVICES.—The small
business development centers shall work in
close cooperation with the Administration’s
regional and local offices, the Department of
Commerce, appropriate Federal, State and
local agencies (including State trade agen-
cies), and the small business community to
serve as an active information dissemination
and service delivery mechanism for existing
trade promotion, trade finance, trade adjust-
ment, trade remedy and trade data collection
programs of particular utility for small busi-
nesses.
(B) COOPERATION WITH STATE TRADE AGENCIES
AND
EXPORT
ASSISTANCE
CENTERS.—A small
business development center that counsels a
small business concern on issues relating to
international trade shall—
(i) consult with State trade agencies and
Export Assistance Centers to provide appro-
priate services to the small business con-
cern; and
(ii) as necessary, refer the small business
concern to a State trade agency or an Ex-
port Assistance Center for further coun-
seling or assistance.
(C) DEFINITION.—In this paragraph, the term
‘‘Export Assistance Center’’ has the same
meaning as in section 649 of this title.
(3) The Small Business Development Center
Program shall be under the general management
and oversight of the Administration for the de-
livery of programs and services to the small
business community. Such programs and serv-
ices shall be jointly developed, negotiated, and
agreed upon, with full participation of both par-
ties, pursuant to an executed cooperative agree-
ment between the Small Business Development
Center applicant and the Administration.
(A) Small business development centers are
authorized to form an association to pursue
matters of common concern. If more than a ma-
jority of the small business development centers
which are operating pursuant to agreements
with the Administration are members of such an
association, the Administration is authorized
and directed to recognize the existence and ac-
tivities of such an association and to consult
with it and develop documents (i) announcing
the annual scope of activities pursuant to this
section, (ii) requesting proposals to deliver as-
sistance as provided in this section and (iii) gov-
erning the general operations and administra-
tion of the Small Business Development Center
Program, specifically including the development
of regulations and a uniform negotiated cooper-
ative agreement for use on an annual basis when
entering into individual negotiated agreements
with small business development centers.
(B) Provisions governing audits, cost prin-
ciples and administrative requirements for Fed-
eral grants, contracts and cooperative agree-
ments which are included in uniform require-
ments of Office of Management and Budget
(OMB) Circulars shall be incorporated by ref-
erence and shall not be set forth in summary or
other form in regulations.
(C) On an annual basis, the Small Business De-
velopment Center shall review and coordinate
public and private partnerships and cosponsor-
ships with the Administration for the purpose of
more efficiently leveraging available resources
on a National 1 and a State basis.
(4) SMALL BUSINESS DEVELOPMENT CENTER PRO-
GRAM LEVEL.—
Page 1007
TITLE 15—COMMERCE AND TRADE
§ 648
2 See References in Text note below.
(A) IN GENERAL.—The Administration shall
require as a condition of any grant (or amend-
ment or modification thereof) made to an ap-
plicant under this section, that a matching
amount (excluding any fees collected from re-
cipients of such assistance) equal to the
amount of such grant be provided from sources
other than the Federal Government, to be
comprised of not less than 50 percent cash and
not more than 50 percent of indirect costs and
in-kind contributions.
(B) RESTRICTION.—The matching amount de-
scribed in subparagraph (A) shall not include
any indirect costs or in-kind contributions de-
rived from any Federal program.
(C) FUNDING FORMULA.—
(i) IN GENERAL.—Subject to clause (iii), the
amount of a formula grant received by a
State under this subparagraph shall be equal
to an amount determined in accordance with
the following formula:
(I) The annual amount made available
under section 20(a) 2 for the Small Business
Development Center Program, less any re-
ductions made for expenses authorized by
clause (v) of this subparagraph, shall be di-
vided on a pro rata basis, based on the per-
centage of the population of each State, as
compared to the population of the United
States.
(II) If the pro rata amount calculated
under subclause (I) for any State is less
than the minimum funding level under
clause (iii), the Administration shall de-
termine the aggregate amount necessary
to achieve that minimum funding level for
each such State.
(III) The aggregate amount calculated
under subclause (II) shall be deducted from
the amount calculated under subclause (I)
for States eligible to receive more than
the minimum funding level. The deduc-
tions shall be made on a pro rata basis,
based on the population of each such
State, as compared to the total population
of all such States.
(IV) The aggregate amount deducted
under subclause (III) shall be added to the
grants of those States that are not eligible
to receive more than the minimum fund-
ing level in order to achieve the minimum
funding level for each such State, except
that the eligible amount of a grant to any
State shall not be reduced to an amount
below the minimum funding level.
(ii) GRANT DETERMINATION.—The amount of
a grant that a State is eligible to apply for
under this subparagraph shall be the amount
determined under clause (i), subject to any
modifications required under clause (iii), and
shall be based on the amount available for
the fiscal year in which performance of the
grant
commences,
but
not
including
amounts distributed in accordance with
clause (iv). The amount of a grant received
by a State under any provision of this sub-
paragraph shall not exceed the amount of
matching funds from sources other than the
Federal Government, as required under sub-
paragraph (A).
(iii) MINIMUM FUNDING LEVEL.—The amount
of the minimum funding level for each State
shall be determined for each fiscal year
based on the amount made available for that
fiscal year to carry out this section, as fol-
lows:
(I) If the amount made available is not
less than $81,500,000 and not more than
$90,000,000, the minimum funding level
shall be $500,000.
(II) If the amount made available is less
than $81,500,000, the minimum funding
level shall be the remainder of $500,000
minus a percentage of $500,000 equal to the
percentage amount by which the amount
made available is less than $81,500,000.
(III) If the amount made available is
more than $90,000,000, the minimum fund-
ing level shall be the sum of $500,000 plus a
percentage of $500,000 equal to the percent-
age amount by which the amount made
available exceeds $90,000,000.
(iv) DISTRIBUTIONS.—Subject to clause (iii),
if any State does not apply for, or use, its
full funding eligibility for a fiscal year, the
Administration shall distribute the remain-
ing funds as follows:
(I) If the grant to any State is less than
the amount received by that State in fis-
cal year 2000, the Administration shall dis-
tribute such remaining funds, on a pro
rata basis, based on the percentage of
shortage of each such State, as compared
to the total amount of such remaining
funds available, to the extent necessary in
order to increase the amount of the grant
to the amount received by that State in
fiscal year 2000, or until such funds are ex-
hausted, whichever first occurs.
(II) If any funds remain after the appli-
cation of subclause (I), the remaining
amount may be distributed as supple-
mental grants to any State, as the Admin-
istration determines, in its discretion, to
be appropriate, after consultation with the
association
referred
to
in
subsection
(a)(3)(A).
(v) USE OF AMOUNTS.—
(I) IN
GENERAL.—Of the amounts made
available in any fiscal year to carry out
this section—
(aa) not more than $500,000 may be
used by the Administration to pay ex-
penses enumerated in subparagraphs (B)
through (D) of section 20(a)(1); 2 and
(bb) not more than $500,000 may be
used by the Administration to pay the
examination expenses enumerated in
section 20(a)(1)(E).2
(II) LIMITATION.—No funds described in
subclause (I) may be used for examination
expenses under section 20(a)(1)(E) 2 if the
usage would reduce the amount of grants
made available under clause (i)(I) of this
subparagraph to less than $85,000,000 (after
excluding any amounts provided in appro-
priations Acts, or accompanying report
language, for specific institutions or for
Page 1008
TITLE 15—COMMERCE AND TRADE
§ 648
purposes other than the general small
business development center program) or
would further reduce the amount of such
grants below such amount.
(vi) EXCLUSIONS.—Grants provided to a
State by the Administration or another Fed-
eral agency to carry out subsection (a)(6) or
(c)(3)(G), or for supplemental grants set
forth in clause (iv)(II) of this subparagraph,
shall not be included in the calculation of
maximum funding for a State under clause
(ii) of this subparagraph.
(vii) AUTHORIZATION OF APPROPRIATIONS.—
There are authorized to be appropriated to
carry out this subparagraph—
(I) $130,000,000 for fiscal year 2005; and
(II) $135,000,000 for fiscal year 2006.
(viii) LIMITATION.—From the funds appro-
priated pursuant to clause (vii), the Admin-
istration
shall
reserve
not
less
than
$1,000,000 in each fiscal year to develop port-
able assistance for startup and sustain-
ability non-matching grant programs to be
conducted by eligible small business devel-
opment centers in communities that are eco-
nomically challenged as a result of a busi-
ness or government facility down sizing or
closing, which has resulted in the loss of jobs
or small business instability. A non-match-
ing grant under this clause shall not exceed
$100,000, and shall be used for small business
development center personnel expenses and
related small business programs and serv-
ices.
(ix) STATE DEFINED.—In this subparagraph,
the term ‘‘State’’ means each of the several
States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Is-
lands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Is-
lands.
(5) FEDERAL CONTRACTS WITH SMALL BUSINESS
DEVELOPMENT CENTERS.—
(A) IN GENERAL.—Subject to the conditions
set forth in subparagraph (B), a small business
development center may enter into a contract
with a Federal department or agency to pro-
vide specific assistance to small business con-
cerns.
(B) CONTRACT
PREREQUISITES.—Before bid-
ding on a contract described in subparagraph
(A), a small business development center shall
receive approval from the Associate Adminis-
trator of the small business development cen-
ter program of the subject and general scope
of the contract. Each approval under subpara-
graph (A) shall be based upon a determination
that the contract will provide assistance to
small business concerns and that performance
of the contract will not hinder the small busi-
ness development center in carrying out the
terms of the grant received by the small busi-
ness development center from the Administra-
tion.
(C) EXEMPTION
FROM
MATCHING
REQUIRE-
MENT.—A contract under this paragraph shall
not be subject to the matching funds or eligi-
bility requirements of paragraph (4).
(D) ADDITIONAL PROVISION.—Notwithstanding
any other provision of law, a contract for as-
sistance under this paragraph shall not be ap-
plied to any Federal department or agency’s
small business, woman-owned business, or so-
cially and economically disadvantaged busi-
ness contracting goal under section 644(g) of
this title.
(6) Any applicant which is funded by the Ad-
ministration as a Small Business Development
Center may apply for an additional grant to be
used solely to assist—
(A) with the development and enhancement
of exports by small business concerns;
(B) in technology transfer; and
(C) with outreach, development, and en-
hancement of minority-owned small business
startups or expansions, HUBZone small busi-
ness concerns, veteran-owned small business
startups or expansions, and women-owned
small business startups or expansions, in com-
munities impacted by base closings or mili-
tary or corporate downsizing, or in rural or
underserved communities;
as provided under subparagraphs (B) through (G)
of subsection (c)(3). Applicants for such addi-
tional grants shall comply with all of the provi-
sions of this section, including providing match-
ing funds, except that funding under this para-
graph shall be effective for any fiscal year to the
extent provided in advance in appropriations
Acts and shall be in addition to the dollar pro-
gram limitations specified in paragraphs (4) and
(5). No recipient of funds under this paragraph
shall receive a grant which would exceed its pro
rata share of a $15,000,000 program based upon
the populations to be served by the Small Busi-
ness Development Center as compared to the
total population of the United States. The min-
imum amount of eligibility for any State shall
be $100,000.
(7) PRIVACY REQUIREMENTS.—
(A) IN GENERAL.—A small business develop-
ment center, consortium of small business de-
velopment centers, or contractor or agent of a
small business development center may not
disclose the name, address, or telephone num-
ber of any individual or small business con-
cern receiving assistance under this section
without the consent of such individual or
small business concern, unless—
(i) the Administrator is ordered to make
such a disclosure by a court in any civil or
criminal enforcement action initiated by a
Federal or State agency; or
(ii) the Administrator considers such a dis-
closure to be necessary for the purpose of
conducting a financial audit of a small busi-
ness development center, but a disclosure
under this clause shall be limited to the in-
formation necessary for such audit.
(B) ADMINISTRATOR
USE
OF
INFORMATION.—
This section shall not—
(i) restrict Administrator access to pro-
gram activity data; or
(ii) prevent the Administrator from using
client information to conduct client surveys.
(C) REGULATIONS.—
(i) IN GENERAL.—The Administrator shall
issue regulations to establish standards—
(I) for disclosures with respect to finan-
cial audits under subparagraph (A)(ii); and
Page 1009
TITLE 15—COMMERCE AND TRADE
§ 648
(II) for client surveys under subpara-
graph (B)(ii), including standards for over-
sight of such surveys and for dissemina-
tion and use of client information.
(ii) MAXIMUM PRIVACY PROTECTION.—Regu-
lations under this subparagraph, shall, to
the extent practicable, provide for the max-
imum amount of privacy protection.
(iii) INSPECTOR GENERAL.—Until the effec-
tive date of regulations under this subpara-
graph, any client survey and the use of such
information shall be approved by the Inspec-
tor General who shall include such approval
in his semi-annual report.
(8) CYBERSECURITY ASSISTANCE.—
(A) IN GENERAL.—The Department of Home-
land Security, and any other Federal depart-
ment or agency in coordination with the De-
partment of Homeland Security, may leverage
small business development centers to provide
assistance to small business concerns by dis-
seminating
information
relating
to
cybersecurity risks and other homeland secu-
rity matters to help small business concerns
in developing or enhancing cybersecurity in-
frastructure, awareness of cyber threat indica-
tors, and cyber training programs for employ-
ees.
(B) DEFINITIONS.—In this paragraph, the
terms ‘‘cybersecurity risk’’ and ‘‘cyber threat
indicator’’ have the meanings given such
terms, respectively, under section 650 of title
6.
(b) Area plan inconsistent with applicant’s plan:
assistance unavailable 1981 through 1983;
plan of applicant: submittal to Administra-
tion, action on plan, review by Administra-
tion, assistance to out-of-State businesses
(1) Financial assistance shall not be made
available to any applicant if approving such as-
sistance would be inconsistent with a plan for
the area involved which has been adopted by an
agency recognized by the State government as
authorized to do so and approved by the Admin-
istration in accordance with the standards and
requirements established pursuant to this sec-
tion.
(2) An applicant may apply to participate in
the program by submitting to the Administra-
tion for approval a plan naming those author-
ized in subsection (a) to participate in the pro-
gram, the geographic area to be served, the serv-
ices that it would provide, the method for deliv-
ering services, a budget, and any other informa-
tion and assurances the Administration may re-
quire to insure that the applicant will carry out
the activities eligible for assistance. The Ad-
ministration is authorized to approve, condi-
tionally approve or reject a plan or combination
of plans submitted. In all cases, the Administra-
tion shall review plans for conformity with the
plan submitted pursuant to paragraph (1) of this
subsection, and with a view toward providing
small business with the most comprehensive and
coordinated assistance in the State or part
thereof to be served.
(3) ASSISTANCE TO OUT-OF-STATE SMALL BUSI-
NESS CONCERNS.—
(A) IN
GENERAL.—At the discretion of the
Administration, the Administration is author-
ized to permit a small business development
center to provide advice, information and as-
sistance, as described in subsection (c), to
small businesses located outside the State, but
only to the extent such businesses are located
within close geographical proximity to the
small business development center, as deter-
mined by the Administration.
(B) DISASTER RECOVERY ASSISTANCE.—
(i) IN GENERAL.—At the discretion of the
Administrator, the Administrator may au-
thorize a small business development center
to provide advice, information, and assist-
ance, as described in subsection (c), to a
small business concern located outside of
the State, without regard to geographic
proximity to the small business development
center, if the small business concern is lo-
cated in an area for which the President has
declared a major disaster.
(ii) TERM.—
(I) IN GENERAL.—A small business devel-
opment center may provide advice, infor-
mation, and assistance to a small business
concern under clause (i) for a period of not
more than 2 years after the date on which
the President declared a major disaster for
the area in which the small business con-
cern is located.
(II)
EXTENSION.—The
Administrator
may, at the discretion of the Adminis-
trator, extend the period described in sub-
clause (I).
(iii) CONTINUITY
OF
SERVICES.—A small
business development center that provides
counselors to an area described in clause (i)
shall, to the maximum extent practicable,
ensure continuity of services in any State in
which the small business development cen-
ter otherwise provides services.
(iv) ACCESS TO DISASTER RECOVERY FACILI-
TIES.—For purposes of this subparagraph,
the Administrator shall, to the maximum
extent practicable, permit the personnel of a
small business development center to use
any site or facility designated by the Admin-
istrator for use to provide disaster recovery
assistance.
(c) Problem-solving assistance; development cen-
ter extension services; staff and access re-
quirements; assistance services; changing
services for evolving needs; qualified small
business vendors; non-profit entities; co-
operation with regional and local offices,
etc.; information sharing system
(1) Applicants receiving grants under this sec-
tion shall assist small businesses in solving
problems concerning operations, manufacturing,
engineering, technology exchange and develop-
ment,
personnel
administration,
marketing,
sales, merchandising, finance, accounting, busi-
ness strategy development, and other disciplines
required for small business growth and expan-
sion, innovation, increased productivity, and
management improvement, and for decreasing
industry economic concentrations. Applicants
receiving grants under this section may also as-
sist small businesses by providing, where appro-
priate, education on the requirements applicable
to small businesses under the regulations issued
Page 1010
TITLE 15—COMMERCE AND TRADE
§ 648
under section 2778 of title 22 and on compliance
with those requirements.
(2) A small business development center shall
provide services as close as possible to small
businesses by providing extension services and
utilizing satellite locations when necessary. The
facilities and staff of each Small Business Devel-
opment Center shall be located in such places as
to provide maximum accessibility and benefits
to the small businesses which the center is in-
tended to serve. To the extent possible, it also
shall make full use of other Federal and State
government programs that are concerned with
aiding small business. A small business develop-
ment center shall have—
(A) a full-time staff, including a full-time di-
rector who shall have the authority to make
expenditures under the center’s budget and
who shall manage the program activities;
(B) access to business analysts to counsel,
assist, and inform small business clients;
(C) access to technology transfer agents to
provide state of art technology to small busi-
nesses through coupling with national and re-
gional technology data sources;
(D) access to information specialists to as-
sist in providing information searches and re-
ferrals to small business;
(E) access to part-time professional special-
ists to conduct research or to provide coun-
seling assistance whenever the need arises;
(F) access to laboratory and adaptive engi-
neering facilities; and
(G) access to cybersecurity specialists to
counsel, assist, and inform small business con-
cern clients, in furtherance of the Small Busi-
ness Development Center Cyber Strategy de-
veloped under section 1841(a) of the National
Defense Authorization Act for Fiscal Year
2017.
(3) Services provided by a small business de-
velopment center shall include, but shall not be
limited to—
(A) furnishing one-to-one individual coun-
seling to small businesses, including—
(i) working with individuals to increase
awareness of basic credit practices and cred-
it requirements;
(ii) working with individuals to develop
business plans, financial packages, credit ap-
plications, and contract proposals;
(iii) working with the Administration to
develop and provide informational tools for
use in working with individuals on pre-busi-
ness startup planning, existing business ex-
pansion, and export planning; and
(iv) working with individuals referred by
the local offices of the Administration and
Administration participating lenders;
(B) assisting in technology transfer, re-
search and development, including applied re-
search, and coupling from existing sources to
small businesses, including—
(i) working to increase the access of small
businesses to the capabilities of automated
flexible manufacturing systems;
(ii) working through existing networks and
developing new networks for technology
transfer that encourage partnership between
the small business and academic commu-
nities to help commercialize university-
based research and development and intro-
duce university-based engineers and sci-
entists to their counterparts in small tech-
nology-based firms; and
(iii) exploring the viability of developing
shared production facilities, under appro-
priate circumstances;
(C) in cooperation with the Department of
Commerce and other relevant Federal agen-
cies, actively assisting small businesses in ex-
porting by identifying and developing poten-
tial export markets, facilitating export trans-
actions, developing linkages between United
States small business firms and prescreened
foreign buyers, assisting small businesses to
participate in international trade shows, as-
sisting small businesses in obtaining export fi-
nancing, and facilitating the development or
reorientation of marketing and production
strategies; where appropriate, the Small Busi-
ness Development Center and the Administra-
tion may work in cooperation with the State
to establish a State international trade center
for these purposes;
(D) developing a program in conjunction
with the Export-Import Bank and local and re-
gional Administration offices that will enable
Small Business Development Centers to serve
as an information network and to assist small
business applicants for Export-Import Bank fi-
nancing programs, and otherwise identify and
help to make available export financing pro-
grams to small businesses;
(E) working closely with the small business
community, small business consultants, State
agencies, universities and other appropriate
groups to make translation services more
readily available to small business firms doing
business, or attempting to develop business, in
foreign markets;
(F) in providing assistance under this sub-
section, applicants shall cooperate with the
Department of Commerce and other relevant
Federal agencies to increase access to avail-
able export market information systems, in-
cluding the CIMS system;
(G) assisting small businesses to develop and
implement strategic business plans to timely
and effectively respond to the planned closure
(or reduction) of a Department of Defense fa-
cility within the community, or actual or pro-
jected reductions in such firms’ business base
due to the actual or projected termination (or
reduction) of a Department of Defense pro-
gram or a contract in support of such pro-
gram—
(i) by developing broad economic assess-
ments of the adverse impacts of—
(I) the closure (or reduction) of the De-
partment of Defense facility on the small
business concerns providing goods or serv-
ices to such facility or to the military and
civilian personnel currently stationed or
working at such facility; and
(II) the termination (or reduction) of a
Department of Defense program (or con-
tracts under such program) on the small
business concerns participating in such
program as a prime contractor, subcon-
tractor or supplier at any tier;
Page 1011
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3 So in original. The period probably should be a semicolon.
4 So in original. Probably should be ‘‘counseling’’.
5 So in original. Two subpars. (U) have been enacted.
(ii) by developing, in conjunction with ap-
propriate Federal, State, and local govern-
mental entities and other private sector or-
ganizations, the parameters of a transition
adjustment program adaptable to the needs
of individual small business concerns;
(iii) by conducting appropriate programs
to inform the affected small business com-
munity regarding the anticipated adverse
impacts identified under clause (i) and the
economic adjustment assistance available to
such firms; and
(iv) by assisting small business concerns to
develop and implement an individualized
transition business plan.3
(H) maintaining current information con-
cerning Federal, State, and local regulations
that affect small businesses and counsel 4
small businesses on methods of compliance.
Counseling and technology development shall
be provided when necessary to help small busi-
nesses find solutions for complying with envi-
ronmental, energy, health, safety, and other
Federal, State, and local regulations;
(I) coordinating and conducting research
into technical and general small business
problems for which there are no ready solu-
tions;
(J) providing and maintaining a comprehen-
sive library that contains current information
and statistical data needed by small busi-
nesses;
(K) maintaining a working relationship and
open communications with the financial and
investment communities, legal associations,
local and regional private consultants, and
local and regional small business groups and
associates in order to help address the various
needs of the small business community;
(L) conducting in-depth surveys for local
small business groups in order to develop gen-
eral information regarding the local economy
and general small business strengths and
weaknesses in the locality;
(M) in cooperation with the Department of
Commerce, the Administration and other rel-
evant Federal agencies, actively assisting
rural small businesses in exporting by identi-
fying and developing potential export markets
for rural small businesses, facilitating export
transactions for rural small businesses, devel-
oping linkages between United States’ rural
small businesses and prescreened foreign buy-
ers, assisting rural small businesses to partici-
pate in international trade shows, assisting
rural small businesses in obtaining export fi-
nancing and developing marketing and produc-
tion strategies;
(N) assisting rural small businesses—
(i) in developing marketing and production
strategies that will enable them to better
compete in the domestic market—
(ii) by providing technical assistance need-
ed by rural small businesses;
(iii) by making available managerial as-
sistance to rural small business concerns;
and
(iv) by providing information and assist-
ance in obtaining financing for business
startups and expansion;
(O) in conjunction with the United States
Travel and Tourism Administration, assist
rural small business in developing the tourism
potential of rural communities by—
(i) identifying the cultural, historic, rec-
reational, and scenic resources of such com-
munities;
(ii) providing assistance to small busi-
nesses in developing tourism marketing and
promotion plans relating to tourism in rural
areas; and
(iii) assisting small business concerns to
obtain capital for starting or expanding
businesses primarily serving tourists;
(P) maintaining lists of local and regional
private consultants to whom small businesses
can be referred;
(Q) providing information to small business
concerns regarding compliance with regu-
latory requirements;
(R) developing informational publications,
establishing resource centers of reference ma-
terials, and distributing compliance guides
published under section 312(a) 2 of the Small
Business Regulatory Enforcement Fairness
Act of 1996;
(S) providing small business owners with ac-
cess to a wide variety of export-related infor-
mation by establishing on-line computer link-
ages between small business development cen-
ters and an international trade data informa-
tion network with ties to the Export Assist-
ance Center program;
(T) providing information and assistance to
small business concerns with respect to estab-
lishing drug-free workplace programs on or be-
fore October 1, 2006; and
(U) 5 encouraging and assisting the provision
of succession planning to small business con-
cerns with a focus on transitioning to coopera-
tives, as defined in section 636(a)(35) of this
title, and qualified employee trusts (collec-
tively referred to in this subparagraph as ‘‘em-
ployee-owned business concerns’’), including
by—
(i) providing training to individuals to pro-
mote the successful management, govern-
ance, or operation of a business purchased by
those individuals in the formation of an em-
ployee-owned business concern;
(ii)
assisting
employee-owned
business
concerns that meet applicable size standards
established under section 632(a) of this title
with education and technical assistance
with respect to financing and contracting
programs administered by the Administra-
tion;
(iii) coordinating with lenders on con-
ducting outreach on financing through pro-
grams administered by the Administration
that may be used to support the transition
of ownership to employees;
(iv) supporting small business concerns in
exploring or assessing the possibility of
transitioning to an employee-owned business
concern; and
Page 1012
TITLE 15—COMMERCE AND TRADE
§ 648
6 So in original. Probably should be ‘‘enter into’’.
(v) coordinating with the cooperative de-
velopment centers of the Department of Ag-
riculture, the land grant extension network,
the Manufacturing Extension Partnership,
community development financial institu-
tions, employee ownership associations and
service providers, and local, regional and na-
tional cooperative associations.
(U) 5 in conjunction with the United States
Patent and Trademark Office, providing train-
ing—
(i) to small business concerns relating to—
(I) domestic and international intellec-
tual property protections; and
(II) how the protections described in sub-
clause (I) should be considered in the busi-
ness plans and growth strategies of the
small business concerns; and
(ii) that may be delivered—
(I) in person; or
(II) through a website.
(4) A small business development center shall
continue to upgrade and modify its services, as
needed, in order to meet the changing and evolv-
ing needs of the small business community.
(5) In addition to the methods prescribed in
paragraph (2), a small business development cen-
ter shall utilize and compensate as one of its re-
sources qualified small business vendors, includ-
ing but not limited to, private management con-
sultants, private consulting engineers and pri-
vate testing laboratories, to provide services as
described in this subsection to small businesses
on behalf of such small business development
center.
(6) In any State (A) in which the Administra-
tion has not made a grant pursuant to para-
graph (1) of subsection (a), or (B) in which no ap-
plication for a grant has been made by a Small
Business Development Center pursuant to para-
graph (6) of such subsection within 60 days after
the effective date of any grant under subsection
(a)(1) to such center or the date the Administra-
tion notifies the grantee funded under sub-
section (a)(1) that funds are available for grant
applications
pursuant
to
subsection
(a)(6),
whichever date occurs last, the Administration
may make grants to a non-profit entity in that
State to carry out the activities specified in
paragraph (6) of subsection (a). Any such appli-
cants shall comply with the matching funds re-
quirement of paragraph (4) of subsection (a).
Such grants shall be effective for any fiscal year
only to the extent provided in advance in appro-
priations Acts, and each State shall be limited
to the pro rata share provisions of paragraph (6)
of subsection (a).
(7) In performing the services identified in
paragraph (3), the Small Business Development
Centers shall work in close cooperation with the
Administration’s regional and local offices, the
local small business community, and appro-
priate State and local agencies.
(8) The Associate Administrator for Small
Business Development Centers, in consultation
with the Small Business Development Centers,
shall develop and implement an information
sharing system. Subject to amounts approved in
advance in appropriations Acts, the Administra-
tion may make grants or enter 6 cooperative
agreements with one or more centers to carry
out the provisions of this paragraph. Said grants
or cooperative agreements shall be awarded for
periods of no more than five years duration. The
matching funds provisions of subsection (a) shall
not be applicable to grants or cooperative agree-
ments under this paragraph. The system shall—
(A) allow Small Business Development Cen-
ters participating in the program to exchange
information about their programs; and
(B) provide information central to tech-
nology transfer.
(d) Enhancing export potential of businesses
within State; State Office of International
Trade
Where appropriate, the Small Business Devel-
opment Centers shall work in conjunction with
the relevant State agency and the Department
of Commerce to develop a comprehensive plan
for enhancing the export potential of small busi-
nesses located within the State. This plan may
involve the cofunding and staffing of a State Of-
fice of International Trade within the State
Small Business Development Center, using joint
State and Federal funding, and any other appro-
priate measures directed at improving the ex-
port performance of small businesses within the
State.
(e) Laboratory assistance; reimbursement for
services
Laboratories operated and funded by the Fed-
eral Government are authorized and directed to
cooperate with the Administration in developing
and establishing programs to support small
business development centers by making facili-
ties and equipment available; providing experi-
ment station capabilities in adaptive engineer-
ing; providing library and technical information
processing capabilities; and providing profes-
sional staff for consulting. The Administration
is authorized to reimburse the laboratories for
such services.
(f) National Science Foundation; cooperation
with Administration and Small Business De-
velopment Centers; center support
The National Science Foundation is author-
ized and directed to cooperate with the Adminis-
tration and with the Small Business Develop-
ment Centers in developing and establishing
programs to support the centers.
(g) National Aeronautics and Space Administra-
tion and regional technology transfer centers
The National Aeronautics and Space Adminis-
tration and regional technology transfer centers
supported by the National Aeronautics and
Space Administration are authorized and di-
rected to cooperate with small business develop-
ment centers participating in the program.
(h) Associate Administrator for Small Business
Development Centers
(1) Appointment and compensation
The Administrator shall appoint an Asso-
ciate Administrator for Small Business Devel-
opment Centers who shall report to an official
Page 1013
TITLE 15—COMMERCE AND TRADE
§ 648
7 So in original. Probably should be ‘‘therefor,’’.
who is not more than one level below the Of-
fice of the Administrator and who shall serve
without regard to the provisions of title 5 gov-
erning appointments in the competitive serv-
ice, and without regard to chapter 51, and sub-
chapter III of chapter 53 of such title relating
to classification and General Schedule pay
rates, but at a rate not less than the rate of
GS–17 of the General Schedule.
(2) Duties
(A) In general
The sole responsibility of the Associate
Administrator for Small Business Develop-
ment Centers shall be to administer the
small business development center program.
Duties of the position shall include recom-
mending the annual program budget, review-
ing the annual budgets submitted by each
applicant, establishing appropriate funding
levels therefore,7 selecting applicants to par-
ticipate in this program, implementing the
provisions of this section, maintaining a
clearinghouse to provide for the dissemina-
tion and exchange of information between
small business development centers and con-
ducting audits of recipients of grants under
this section.
(B) Consultation requirements
In carrying out the duties described in this
subsection,
the
Associate
Administrator
shall confer with and seek the advice of the
Board established by subsection (i) and Ad-
ministration officials in areas served by the
small business development centers; how-
ever, the Associate Administrator shall be
responsible for the management and admin-
istration of the program and shall not be
subject to the approval or concurrence of
such Administration officials.
(i) National Small Business Development Center
Advisory Board; establishment; membership;
term; Chairman; advisory and counseling
functions; meetings; compensation
(1) There is established a National Small Busi-
ness Development Center Advisory Board (here-
in referred to as ‘‘Board’’) which shall consist of
nine members appointed from civilian life by
the Administrator and who shall be persons of
outstanding qualifications known to be familiar
and sympathetic with small business needs and
problems. No more than three members shall be
from universities or their affiliates and six shall
be from small businesses or associations rep-
resenting small businesses. At the time of the
appointment of the Board, the Administrator
shall designate one-third of the members and at
least one from each category whose term shall
end in two years from the date of appointment,
a second third whose term shall end in three
years from the date of appointment, and the
final third whose term shall end in four years
from the date of appointment. Succeeding
Boards shall have three-year terms, with one-
third of the Board changing each year.
(2) The Board shall elect a Chairman and ad-
vise, counsel, and confer with the Associate Ad-
ministrator for Small Business Development
Centers in carrying out the duties described in
this section. The Board shall meet at least semi-
annually and at the call of the Chairman of the
Board. Each member of the Board shall be enti-
tled to be compensated at the rate not in excess
of the per diem, equivalent of the highest rate of
pay for individuals occupying the position under
GS–18 of the General Schedule for each day en-
gaged in activities of the Board and shall be en-
titled to be reimbursed for expenses as a mem-
ber of the Board.
(j) Small business development center advisory
board; establishment; chairman; conferences
with director on policy
(1) Each small business development center
shall establish an advisory board.
(2) Each small business development center
advisory board shall elect a chairman and ad-
vise, counsel, and confer with the director of the
small business development center on all policy
matters pertaining to the operation of the small
business development center, including who may
be eligible to receive assistance from, and how
local and regional private consultants may par-
ticipate with the small business development
center.
(k) Program examination and accreditation
(1) Examination
Not later than 180 days after October 22, 1994,
the Administration shall develop and imple-
ment a biennial programmatic and financial
examination of each small business develop-
ment center established pursuant to this sec-
tion.
(2) Accreditation
The Administration may provide financial
support, by contract or otherwise, to the asso-
ciation authorized by subsection (a)(3)(A) for
the purpose of developing a small business de-
velopment center accreditation program.
(3) Extension or renewal of cooperative agree-
ments
(A) In general
In extending or renewing a cooperative
agreement of a small business development
center, the Administration shall consider
the results of the examination and accredi-
tation program conducted pursuant to para-
graphs (1) and (2).
(B) Accreditation requirement
After September 30, 2000, the Administra-
tion may not renew or extend any coopera-
tive agreement with a small business devel-
opment center unless the center has been ap-
proved under the accreditation program con-
ducted pursuant to this subsection, except
that the Associate Administrator for Small
Business Development Centers may waive
such accreditation requirement, in the dis-
cretion of the Associate Administrator, upon
a showing that the center is making a good
faith effort to obtain accreditation.
(l) Contract authority
The authority to enter into contracts shall be
in effect for each fiscal year only to the extent
and in the amounts as are provided in advance
Page 1014
TITLE 15—COMMERCE AND TRADE
§ 648
in appropriations Acts. After the administration
has entered a contract, either as a grant or a co-
operative agreement, with any applicant under
this section, it shall not suspend, terminate, or
fail to renew or extend any such contract unless
the Administration provides the applicant with
written notification setting forth the reasons
therefore 7 and affording the applicant an oppor-
tunity for a hearing, appeal, or other adminis-
trative proceeding under the provisions of chap-
ter 5 of title 5. If any contract or cooperative
agreement under this section with an entity
that is covered by this section is not renewed or
extended, any award of a successor contract or
cooperative agreement under this section to an-
other entity shall be made on a competitive
basis.
(m) Prohibition on certain fees
A small business development center shall not
impose or otherwise collect a fee or other com-
pensation in connection with the provision of
counseling services under this section.
(n) Veterans assistance and services program
(1) In general
A small business development center may
apply for a grant under this subsection to
carry out a veterans assistance and services
program.
(2) Elements of program
Under a program carried out with a grant
under this subsection, a small business devel-
opment center shall—
(A) create a marketing campaign to pro-
mote awareness and education of the serv-
ices of the center that are available to vet-
erans, and to target the campaign toward
veterans, service-disabled veterans, military
units, Federal agencies, and veterans organi-
zations;
(B) use technology-assisted online coun-
seling and distance learning technology to
overcome the impediments to entrepreneur-
ship faced by veterans and members of the
Armed Forces; and
(C) increase coordination among organiza-
tions that assist veterans, including by es-
tablishing virtual integration of service pro-
viders and offerings for a one-stop point of
contact for veterans who are entrepreneurs
or owners of small business concerns.
(3) Amount of grants
A grant under this subsection shall be for
not less than $75,000 and not more than
$250,000.
(4) Funding
Subject to amounts approved in advance in
appropriations Acts, the Administration may
make grants or enter into cooperative agree-
ments to carry out the provisions of this sub-
section.
(o) Cyber strategy training for small business de-
velopment centers
(1) Definitions
In this subsection—
(A) the term ‘‘cyber strategy’’ means re-
sources and tactics to assist in planning for
cybersecurity and defending against cyber
risks and attacks; and
(B) the term ‘‘lead small business develop-
ment center’’ means a small business devel-
opment center that receives reimbursement
from the Administrator under paragraph (5).
(2) Certification program
The Administrator shall establish a cyber
counseling certification program, or designate
1 or more substantially similar governmental
or private cybersecurity certification pro-
grams, to certify the employees of lead small
business development centers in providing
cyber planning assistance to small business
concerns.
(3) Number of certified employees
The Administrator shall ensure that the
number of employees of each lead small busi-
ness development center who are certified in
providing cyber planning assistance is not less
than the lesser of—
(A) 5; or
(B) 10 percent of the total number of em-
ployees of the lead small business develop-
ment center.
(4) Cyber strategy
In carrying out paragraph (2), the Adminis-
trator, to the extent practicable, shall con-
sider any cyber strategy methods included in
the Small Business Development Center Cyber
Strategy developed under section 1841(a)(3)(B)
of the National Defense Authorization Act for
Fiscal Year 2017 (Public Law 114–328; 130 Stat.
2662).
(5) Reimbursement for certification
(A) In general
Subject to the availability of appropria-
tions, the Administrator may reimburse
each lead small business development center
for costs relating to the certification of 1 or
more employees of the lead small business
center in providing cyber planning assist-
ance under a program established or des-
ignated under paragraph (2).
(B) Limitation
The total amount reimbursed by the Ad-
ministrator under subparagraph (A) may not
exceed $350,000 in any fiscal year.
(Pub. L. 85–536, § 2[21], as added Pub. L. 96–302,
title II, § 202, July 2, 1980, 94 Stat. 843; amended
Pub. L. 98–395, § 2, Aug. 21, 1984, 98 Stat. 1366;
Pub. L. 100–418, title VIII, § 8006(b), Aug. 23, 1988,
102 Stat. 1557; Pub. L. 100–590, title I, §§ 134,
135(3), Nov. 3, 1988, 102 Stat. 3006, 3007; Pub. L.
101–515, title V, §§ 5(a), 6, Nov. 5, 1990, 104 Stat.
2142; Pub. L. 101–574, title II, § 201(a)(1), title III,
§ 303, Nov. 15, 1990, 104 Stat. 2818, 2828; Pub. L.
102–366, title II, §§ 212, 223(a), Sept. 4, 1992, 106
Stat. 998, 1000; Pub. L. 103–81, § 9(a), Aug. 13, 1993,
107 Stat. 783; Pub. L. 103–403, title IV, §§ 402–404,
Oct. 22, 1994, 108 Stat. 4190, 4191; Pub. L. 104–66,
title II, § 2121, Dec. 21, 1995, 109 Stat. 730; Pub. L.
104–121, title II, § 214(a), Mar. 29, 1996, 110 Stat.
859; Pub. L. 104–208, div. D, title I, § 106, Sept. 30,
1996, 110 Stat. 3009–731; Pub. L. 105–135, title V,
§§ 502, 506(a), Dec. 2, 1997, 111 Stat. 2622, 2624; Pub.
L. 105–277, div. C, title IX, § 905, Oct. 21, 1998, 112
Page 1015
TITLE 15—COMMERCE AND TRADE
§ 648
Stat. 2681–710; Pub. L. 106–554, § 1(a)(9) [title V,
§ 503(e), title VIII, § 804(b)], Dec. 21, 2000, 114 Stat.
2763, 2763A–695, 2763A–703; Pub. L. 107–20, title II,
§ 2203(b), July 24, 2001, 115 Stat. 170; Pub. L.
108–447, div. K, title I, §§ 122, 142, Dec. 8, 2004, 118
Stat. 3449, 3454; Pub. L. 110–186, title I, § 107, Feb.
14, 2008, 122 Stat. 627; Pub. L. 111–240, title I,
§ 1209, Sept. 27, 2010, 124 Stat. 2536; Pub. L.
113–291, div. A, title VIII, § 823(a), Dec. 19, 2014,
128 Stat. 3436; Pub. L. 114–88, div. B, title I,
§ 2103(a), Nov. 25, 2015, 129 Stat. 690; Pub. L.
114–328, div. A, title XVIII, §§ 1842, 1843, Dec. 23,
2016, 130 Stat. 2663, 2664; Pub. L. 115–232, div. A,
title VIII, § 862(e)(2)(B), Aug. 13, 2018, 132 Stat.
1899; Pub. L. 115–259, § 5, Oct. 9, 2018, 132 Stat.
3665; Pub. L. 115–278, § 2(h)(2), Nov. 16, 2018, 132
Stat. 4183; Pub. L. 116–283, div. A, title VIII,
§ 867(1), Jan. 1, 2021, 134 Stat. 3786; Pub. L.
117–263, div. G, title LXXI, § 7143(d)(9), Dec. 23,
2022, 136 Stat. 3664; Pub. L. 117–319, § 2(a), Dec. 27,
2022, 136 Stat. 4424.)
Editorial Notes
REFERENCES IN TEXT
Section 1841(a) of the National Defense Authorization
Act for Fiscal Year 2017, referred to in subsecs. (a)(1),
(c)(2)(G), and (o)(4), is section 1841(a) of Pub. L. 114–328,
div. A, title XVIII, Dec. 23, 2016, 130 Stat. 2662, which is
not classified to the Code.
Section 20(a), referred to in subsec. (a)(4)(C)(i)(I), (v),
means section 2[20(a)] of Pub. L. 85–536, which is set out
as a note under section 631 of this title.
Section 312(a) of the Small Business Regulatory En-
forcement Fairness Act of 1996, referred to in subsec.
(c)(3)(R), probably means section 212(a) of Pub. L.
104–121, which is set out in a note under section 601 of
Title 5, Government Organization and Employees, be-
cause Pub. L. 104–121 does not contain a section 312.
The General Schedule, referred to in subsecs. (h)(1)
and (i)(2), is set out under section 5332 of Title 5.
CODIFICATION
October 22, 1994, referred to in subsec. (k)(1), was in
the original ‘‘the date of enactment of this subsection’’,
which was translated as meaning the date of enactment
of Pub. L. 103–403, which amended subsec. (k) generally,
to reflect the probable intent of Congress.
PRIOR PROVISIONS
A prior section 648 of this title, act July 30, 1953, ch.
282, title II, § 219, 67 Stat. 239, which related to require-
ments for loans, was omitted as superseded by section
642 of this title. See Codification note set out under
section 631 of this title.
A prior section 2[21] of Pub. L. 85–536 was renumbered
section 2[49] and is set out as a note under section 631
of this title.
AMENDMENTS
2022—Subsec. (a)(8)(B). Pub. L. 117–263 substituted
‘‘section 650 of title 6’’ for ‘‘section 659(a) of title 6’’.
Subsec. (o). Pub. L. 117–319 added subsec. (o).
2021—Subsec. (a)(1). Pub. L. 116–283, § 867(1)(A), in-
serted ‘‘The previous sentence shall not apply to an ap-
plicant that has its principal office located in the Com-
monwealth of the Northern Mariana Islands.’’ before
‘‘The Administration shall require’’.
Subsec. (a)(4)(C)(ix). Pub. L. 116–283, § 867(1)(B), sub-
stituted ‘‘American Samoa, and the Commonwealth of
the Northern Mariana Islands’’ for ‘‘and American
Samoa’’.
2018—Subsec. (a)(8)(B). Pub. L. 115–278 substituted
‘‘section 659(a) of title 6’’ for ‘‘section 148(a) of title 6’’.
Subsec. (c)(3)(U). Pub. L. 115–259 added subpar. (U) re-
lating to training in conjunction with the Patent and
Trademark Office.
Pub. L. 115–232 added subpar. (U) relating to succes-
sion planning to small business concerns with a focus
on transitioning to cooperatives.
2016—Subsec. (a)(1). Pub. L. 114–328, § 1842(1), sub-
stituted ‘‘providing access to business analysts who can
refer small business concerns to available experts; and,
to the extent practicable, providing assistance in fur-
therance of the Small Business Development Center
Cyber Strategy developed under section 1841(a) of the
National Defense Authorization Act for Fiscal Year
2017:’’ for ‘‘and providing access to business analysts
who can refer small business concerns to available ex-
perts:’’.
Subsec. (a)(8). Pub. L. 114–328, § 1843, added par. (8).
Subsec. (c)(2)(G). Pub. L. 114–328, § 1842(2), added sub-
par. (G).
2015—Subsec. (b)(3). Pub. L. 114–88 inserted par. head-
ing, designated existing provisions as subpar. (A) and
inserted subpar. heading, and added subpar. (B).
2014—Subsec. (c)(1). Pub. L. 113–291 inserted at end
‘‘Applicants receiving grants under this section may
also assist small businesses by providing, where appro-
priate, education on the requirements applicable to
small businesses under the regulations issued under
section 2778 of title 22 and on compliance with those re-
quirements.’’
2010—Subsec. (a)(2). Pub. L. 111–240 designated exist-
ing provisions as subpar. (A), inserted par. (2) and sub-
par. (A) headings, substituted ‘‘The small business de-
velopment centers’’ for ‘‘The Small Business Develop-
ment Centers’’, inserted ‘‘(including State trade agen-
cies),’’ after ‘‘local agencies’’, and added subpars. (B)
and (C).
2008—Subsec. (n). Pub. L. 110–186 added subsec. (n).
2004—Subsec. (a)(4)(C)(vii) to (ix). Pub. L. 108–447,
§ 122(b), added cls. (vii) and (viii), redesignated former
cl. (viii) as (ix), and struck out heading and text of
former cl. (vii). Text read as follows: ‘‘There is author-
ized to be appropriated to carry out this subparagraph
$125,000,000 for each of fiscal years 2001, 2002, and 2003.’’
Subsec. (a)(7). Pub. L. 108–447, § 142(a), added par. (7).
Subsec. (c)(3)(T). Pub. L. 108–447, § 122(a), substituted
‘‘October 1, 2006’’ for ‘‘October 1, 2003’’.
Subsec. (k). Pub. L. 108–447, § 142(b), substituted ‘‘Ac-
creditation’’ for ‘‘Certification’’ and ‘‘accreditation’’
for ‘‘certification’’ wherever appearing in headings and
text.
2001—Subsec. (a)(4)(C)(v)(II). Pub. L. 107–20 inserted
‘‘, or accompanying report language,’’ after ‘‘in appro-
priations Acts’’.
2000—Subsec. (a)(4)(C). Pub. L. 106–554, § 1(a)(9) [title
VIII, § 804(b)], amended heading and text of subpar. (C)
generally, substituting present provisions for provi-
sions providing that the amount of a grant received by
a State under this section would be equal to the greater
of $500,000, or the sum of the State’s pro rata share of
the national program, plus $300,000 in fiscal year 1998,
$400,000 in fiscal year 1999, and $500,000 in each fiscal
year thereafter, provisions relating to pro rata reduc-
tions, matching requirement, and exception for grants
provided to a small business development center to
carry out the provisions of subsection (c)(3)(G), and
provisions setting forth appropriations of $85,000,000 for
fiscal year 1998, $90,000,000 for fiscal year 1999, and
$95,000,000 for fiscal year 2000 and each fiscal year there-
after.
Subsec. (c)(3)(T). Pub. L. 106–554, § 1(a)(9) [title V,
§ 503(e)], substituted ‘‘2003’’ for ‘‘2000’’.
1998—Subsec. (c)(3)(T). Pub. L. 105–277 added subpar.
(T).
1997—Subsec. (a)(1). Pub. L. 105–135, § 502(a)(1), in-
serted ‘‘any women’s business center operating pursu-
ant to section 656 of this title,’’ after ‘‘credit or finance
corporation,’’, ‘‘or a women’s business center operating
pursuant to section 656 of this title’’ after ‘‘other than
an institution of higher education’’, and ‘‘and women’s
business centers operating pursuant to section 656 of
this title’’ after ‘‘utilize institutions of higher edu-
cation’’.
Subsec. (a)(3). Pub. L. 105–135, § 502(a)(2)(A), sub-
stituted ‘‘for the delivery of programs and services to
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TITLE 15—COMMERCE AND TRADE
§ 648
the small business community. Such programs and
services shall be jointly developed, negotiated, and
agreed upon, with full participation of both parties,
pursuant to an executed cooperative agreement be-
tween the Small Business Development Center appli-
cant and the Administration’’ for ‘‘, but with recogni-
tion that a partnership exists under this section be-
tween the Administration and the applicant for the de-
livery of assistance to the small business community.
Services shall be provided pursuant to a negotiated co-
operative agreement with full participation of both
parties’’.
Subsec. (a)(3)(C). Pub. L. 105–135, § 502(a)(2)(B), added
subpar. (C).
Subsec. (a)(4)(C)(i). Pub. L. 105–135, § 502(a)(3)(A),
added cl. (i) and struck out heading and text of former
cl. (i). Text read as follows: ‘‘Except as provided in
clause (ii), no State receiving funds under this section
shall receive a grant that exceeds—
‘‘(I) for fiscal year 1995, the sum of such State’s pro
rata share of a national program based upon the pop-
ulation of the State as compared to the total popu-
lation in the United States, and $125,000; or
‘‘(II) in each succeeding fiscal year, the sum of such
State’s pro rata share of a national program based
upon the population of the State as compared to the
total population in the United States, and $200,000.’’
Subsec. (a)(4)(C)(iii). Pub. L. 105–135, § 502(a)(3)(B),
added cl. (iii) and struck out former cl. (iii) which read
as follows:
‘‘(iii) AMOUNT.—The amount of the national program
shall be—
‘‘(I) $70,000,000 through September 30, 1996;
‘‘(II) $77,500,000 from October 1, 1996 through Sep-
tember 30, 1997; and
‘‘(III) $85,000,000 beginning October 1, 1997.’’
Subsec. (a)(6)(C). Pub. L. 105–135, § 502(a)(4), added sub-
par. (C).
Subsec. (c)(3). Pub. L. 105–135, § 502(b)(4), redesignated
closing provisions as par. (4). Former par. (4) redesig-
nated (5).
Subsec. (c)(3)(A). Pub. L. 105–135, § 502(b)(1)(A), sub-
stituted ‘‘businesses, including—’’ for ‘‘businesses;’’ in
introductory provisions and added cls. (i) to (iv).
Subsec. (c)(3)(B). Pub. L. 105–135, § 502(b)(1)(B), re-
aligned margins.
Subsec. (c)(3)(C). Pub. L. 105–135, § 502(b)(1)(B), (C), re-
aligned margins and inserted ‘‘and the Administration’’
after ‘‘Small Business Development Center’’.
Subsec. (c)(3)(D) to (G), (M) to (O), (Q), (R). Pub. L.
105–135, § 502(b)(1)(B), realigned margins.
Subsec. (c)(3)(S). Pub. L. 105–135, § 506(a), added sub-
par. (S).
Subsec. (c)(4). Pub. L. 105–135, § 502(b)(4), redesignated
closing provisions of par. (3) as (4). Former par. (4) re-
designated (5).
Subsec. (c)(5). Pub. L. 105–135, § 502(b)(3), redesignated
par. (4) as (5). Former par. (5) redesignated (6).
Pub. L. 105–135, § 502(b)(2), realigned margins, sub-
stituted ‘‘subsection (a)(1)’’ for ‘‘paragraph (a)(1)’’ and
‘‘whichever date occurs last,’’ for ‘‘which ever date oc-
curs last,,’’.
Subsec. (c)(6) to (8). Pub. L. 105–135, § 502(b)(3), redes-
ignated pars. (5) to (7) as (6) to (8), respectively.
Subsec. (l). Pub. L. 105–135, § 502(c), inserted at end ‘‘If
any contract or cooperative agreement under this sec-
tion with an entity that is covered by this section is
not renewed or extended, any award of a successor con-
tract or cooperative agreement under this section to
another entity shall be made on a competitive basis.’’
Subsec. (m). Pub. L. 105–135, § 502(d), added subsec.
(m).
1996—Subsec. (c)(3)(Q), (R). Pub. L. 104–121 added sub-
pars. (Q) and (R).
Subsec. (c)(7). Pub. L. 104–208, § 106(a)(2)(A), sub-
stituted ‘‘Associate Administrator for Small Business
Development Centers’’ for ‘‘Deputy Associate Adminis-
trator of the Small Business Development Center pro-
gram’’.
Subsec. (h). Pub. L. 104–208, § 106(a)(1), amended sub-
sec. (h) generally. Prior to amendment, subsec. (h) read
as follows:
‘‘(h)(1) The Administrator shall appoint a Associate
Administrator for Small Business Development Centers
who shall report to an official who is not more than one
level below the Office of the Administrator and who
shall serve without regard to the provisions of title 5
governing appointments in the competitive service, and
without regard to chapter 51, and subchapter III of
chapter 53 of such title relating to classification and
General Schedule pay rates, but at a rate not less than
the rate of GS–17 of the General Schedule.
‘‘(2) The sole responsibility of the Associate Adminis-
trator for Small Business Development Centers shall be
to administer the small business development center
program. Duties of the position shall include, but are
not limited to, recommending the annual program
budget, reviewing the annual budgets submitted by
each applicant, establishing appropriate funding levels
therefore, selecting applicants to participate in this
program, implementing the provisions of this section,
maintaining a clearinghouse to provide for the dissemi-
nation and exchange of information between small
business development centers and conducting audits of
recipients of grants under this section. The Associate
Administrator for Small Business Development Centers
shall confer with and seek the advise and counsel of the
Board in carrying out the responsibilities described in
this subsection.’’
Subsec. (i)(2). Pub. L. 104–208, § 106(a)(2)(B), sub-
stituted ‘‘Associate Administrator for Small Business
Development Centers’’ for ‘‘Deputy Associate Adminis-
trator for Management Assistance’’.
Subsec. (k)(3). Pub. L. 104–208, § 106(b), amended head-
ing and text of par. (3) generally. Prior to amendment,
text read as follows: ‘‘In extending or renewing a coop-
erative agreement of a small business development cen-
ter, the Administration shall consider the results of the
examination and certification program conducted pur-
suant to paragraphs (1) and (2).’’
Subsec. (l). Pub. L. 104–208, § 106(c), amended heading
and text of subsec. (l) generally. Prior to amendment,
text read as follows: ‘‘The authority to enter into con-
tracts shall be in effect for each fiscal year only to the
extent or in the amounts as are provided in advance in
appropriations Acts. After the administration has en-
tered a contract, either as a grant or a cooperative
agreement, with any applicant under this section, it
shall not suspend, terminate or fail to renew or extend
any such contract unless the Administration provides
the applicant with written notification setting forth
the reasons therefor and affording the applicant an op-
portunity for a hearing, appeal or other administrative
proceeding under the provisions of the Administrative
Procedures Act.’’
1995—Subsec. (g). Pub. L. 104–66 amended subsec. (g)
generally. Prior to amendment, subsec. (g) read as fol-
lows: ‘‘The National Aeronautics and Space Adminis-
tration and industrial application centers supported by
the National Aeronautics and Space Administration
are authorized and directed to cooperate with small
business development centers participating in this pro-
gram. The National Aeronautics and Space Administra-
tion shall report annually on the performance of such
industrial application centers with recommendations
to the Administration and the Congress on how such in-
dustrial application centers can be strengthened and
expanded. The National Aeronautics and Space Admin-
istration shall include in its report to Congress infor-
mation on the ability of industrial application centers
to interact with the Nation’s small business commu-
nity and recommendations to the Administration on
continued funding.’’
1994—Subsec. (a)(4). Pub. L. 103–403, § 402, amended
par. (4) generally. Prior to amendment, par. (4) read as
follows: ‘‘Except as provided in paragraph (4), the Ad-
ministration shall require, as a condition to any grant
(or amendment or modification thereof) made to an ap-
plicant under this section that an additional amount
(excluding any fees collected from recipients of such as-
sistance) equal to the amount of such grant be provided
from sources other than the Federal Government: Pro-
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TITLE 15—COMMERCE AND TRADE
§ 648
vided, That the additional amount shall not include any
amount of indirect costs or in-kind contributions paid
for under any Federal program, nor shall such indirect
costs or in-kind contributions exceed 50 per centum of
the non-Federal additional amount: Provided further,
That no recipient of funds under this section shall re-
ceive a grant which would exceed its pro rata share of
a $70,000,000 program based upon the population to be
served by the Small Business Development Center as
compared to the total population of the United States,
plus $100,000 for each State, but no State shall receive
less than $200,000.’’
Subsec. (a)(5). Pub. L. 103–403, § 403, amended par. (5)
generally, substituting present provisions for former
provisions which required matching amount from non-
Federal sources equal to amount of Federal grant.
Subsec. (k). Pub. L. 103–403, § 404, amended subsec. (k)
generally. Prior to amendment, subsec. (k) read as fol-
lows: ‘‘Within six months of August 21, 1984, the Admin-
istration shall develop and implement a program pro-
posal for onsite evaluation of each Small Business De-
velopment Center. Such evaluation shall be conducted
at least once every two years and shall provide for the
participation of a representative of at least one other
Small Business Development Center on a cost-reim-
bursement basis.’’
1993—Subsec. (c)(7). Pub. L. 103–81 substituted ‘‘sys-
tem. Subject to amounts approved in advance in appro-
priations Acts, the Administration may make grants or
enter cooperative agreements with one or more centers
to carry out the provisions of this paragraph. Said
grants or cooperative agreements shall be awarded for
periods of no more than five years duration. The
matching funds provisions of subsection (a) shall not be
applicable to grants or cooperative agreements under
this paragraph. The system shall’’ for ‘‘system which
will’’ in introductory provisions.
1992—Subsec. (a)(3)(A), (B). Pub. L. 102–366, § 223(a),
added subpars. (A) and (B).
Subsec. (c)(3)(D) to (G). Pub. L. 102–366, § 212, redesig-
nated former subpars. (E) to (G) as (D) to (F), respec-
tively, added subpar. (G), and struck out former subpar.
(D) which read as follows: ‘‘assisting small businesses
in developing and implementing marketing and produc-
tion strategies that will enable them to better compete
within the domestic market;’’.
1990—Subsec. (a)(1). Pub. L. 101–515, § 6, struck out pe-
riod at end of first sentence and inserted ‘‘: Provided,
That after December 31, 1990, the Administration shall
not make a grant to any applicant other than an insti-
tution of higher education as a Small Business Devel-
opment Center unless the applicant was receiving a
grant (including a contract or cooperative agreement)
on such date. The Administration shall require any ap-
plicant for a small business development center grant
with performance commencing on or after January 1,
1992 to have its own budget and to primarily utilize in-
stitutions of higher education to provide services to the
small business community.’’
Subsec. (a)(4). Pub. L. 101–515, § 5(a), and Pub. L.
101–574, § 201(a)(1), amended par. (4) identically, sub-
stituting ‘‘Provided further, That no recipient of funds
under this section shall receive a grant which would ex-
ceed its pro rata share of a $70,000,000 program based
upon the population to be served by the Small Business
Development Center as compared to the total popu-
lation of the United States, plus $100,000 for each State,
but no State shall receive less than $200,000.’’ for ‘‘Pro-
vided further, That no recipient of funds under this sec-
tion shall receive a grant which would exceed its pro
rata share of a $65,000,000 program based upon the popu-
lation to be served by the Small Business Development
Center as compared to the total population in the
United States, or $200,000, whichever is greater.’’
Subsec. (c)(3)(M) to (P). Pub. L. 101–574, § 303, added
subpars. (M) to (O) and redesignated former subpar. (M)
as (P).
1988—Subsec. (a)(1). Pub. L. 100–418, § 8006(b)(1), in-
serted provision relating to management and technical
assistance regarding small business participation in
international markets, export promotion and tech-
nology transfer.
Subsec. (a)(2) to (6). Pub. L. 100–418, § 8006(b)(2), (3),
added par. (2), redesignated former pars. (2) to (4) as (3)
to (5), respectively, and added par. (6).
Subsec. (c)(3)(B) to (M). Pub. L. 100–418, § 8006(b)(4),
(5), added subpars. (B) to (G), redesignated former sub-
pars. (C) to (H) as (H) to (M), respectively, and struck
out former subpar. (B) which read as follows: ‘‘assisting
in technology transfer, research, and coupling from ex-
isting sources to small businesses;’’.
Subsec. (c)(5). Pub. L. 100–590, § 135(3), inserted ‘‘or the
date the Administration notifies the grantee funded
under subsection (a)(1) that funds are available for
grant applications pursuant to subsection (a)(6), which
ever date occurs last,’’ after ‘‘such center’’.
Pub. L. 100–418, § 8006(b)(6), added par. (5).
Subsec. (c)(6), (7). Pub. L. 100–418, § 8006(b)(6), added
pars. (6) and (7).
Subsecs. (d) to (g). Pub. L. 100–418, § 8006(b)(7), added
subsec. (d) and redesignated former subsecs. (d) to (f) as
(e) to (g), respectively. Former subsec. (g) redesignated
(h).
Subsec. (h). Pub. L. 100–590, § 134(1), (2), which directed
that subsec. (g) be amended by substituting ‘‘Associate
Administrator for Small Business Development Cen-
ters’’ for ‘‘Deputy Associate Administrator for Manage-
ment Assistance’’ in three places, and in par. (1) by sub-
stituting ‘‘an official who is not more than one level
below the Office of the Administrator’’ for ‘‘the Asso-
ciate Administrator for Management Assistance’’, was
executed to subsec. (h) to reflect the probable intent of
Congress and the intervening redesignation of subsec.
(g) as (h) by section 8006(b)(7) of Pub. L. 100–418.
Pub. L. 100–418, § 8006(b)(7), redesignated former sub-
sec. (g) as (h). Former subsec. (h) redesignated (i).
Subsecs. (i) to (k). Pub. L. 100–418, § 8006(b)(7), redesig-
nated former subsecs. (h) to (j) as (i) to (k), respec-
tively. Former subsec. (k) redesignated (l).
Subsec. (l) Pub. L. 100–590, § 134(3), which directed that
subsec. (k) be amended by inserting provisions which
prohibited Administration from suspending, termi-
nating or failing to renew or extend any contract with-
out written notification and opportunity for hearing,
appeal or other administrative proceeding, was exe-
cuted to subsec. (l) to reflect the probable intent of
Congress and the intervening redesignation of subsec.
(k) as (l) by section 8006(b)(7) of Pub. L. 100–418.
Pub. L. 100–418, § 8006(b)(7), redesignated former sub-
sec. (k) as (l).
1984—Subsec. (a)(1). Pub. L. 98–395, § 2(1), inserted
‘‘The term of such grants shall be made on a calendar
year basis or to coincide with the Federal fiscal year.’’
Subsec. (a)(2) to (4). Pub. L. 98–395, § 2(2), added pars.
(2) to (4). Former par. (2), which contained provisions
similar to par. (3), was struck out.
Subsec. (b)(1). Pub. L. 98–395, § 2(3), substituted ‘‘Fi-
nancial’’ for ‘‘During fiscal years 1981, 1982, and 1983, fi-
nancial’’.
Subsec. (c)(2). Pub. L. 98–395, § 2(4), inserted in provi-
sions preceding subpar. (A) ‘‘The facilities and staff of
each Small Business Development Center shall be lo-
cated in such places as to provide maximum accessi-
bility and benefits to the small businesses which the
center is intended to serve.’’
Subsec. (c)(2)(A). Pub. L. 98–395, § 2(5), substituted
‘‘including a full-time director who shall have the au-
thority to make expenditures under the center’s budget
and who shall manage the program activities;’’ for ‘‘in-
cluding a staff director to manage the program activi-
ties.’’
Subsec. (e). Pub. L. 98–395, § 2(6), substituted provi-
sions authorizing the National Science Foundation to
cooperate with the Administration and with Small
Business Development Centers in developing and estab-
lishing programs to support the centers, for former pro-
visions which related to the National Science Founda-
tion and innovation centers, and reports to be made to
the Administration and Congress.
Subsec. (h)(2). Pub. L. 98–395, § 2(7), substituted ‘‘at
least semiannually’’ for ‘‘at least quarterly’’.
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TITLE 15—COMMERCE AND TRADE
§ 648
Subsec. (i)(1). Pub. L. 98–395, § 2(8), substituted
‘‘shall’’ for ‘‘may’’.
Subsec. (j). Pub. L. 98–395, § 2(9), substituted provi-
sions mandating that the Administration develop and
implement program proposals for onsite evaluation of
each Small Business Development Center for provisions
which related to the establishment of program evalua-
tion plans and their submission to Congressional com-
mittees.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105–135 effective Oct. 1, 1997,
see section 3 of Pub. L. 105–135, set out as a note under
section 631 of this title.
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by Pub. L. 104–208 effective Oct. 1, 1996,
see section 3 of Pub. L. 104–208, set out as a note under
section 633 of this title.
Amendment by Pub. L. 104–121 effective on expiration
of 90 days after Mar. 29, 1996, see section 216 of Pub. L.
104–121, set out in a Small Business Regulatory Fair-
ness note under section 601 of Title 5, Government Or-
ganization and Employees.
EFFECTIVE DATE OF 1990 AMENDMENTS
Pub. L. 101–574, title II, § 201(a)(2), Nov. 15, 1990, 104
Stat. 2818, provided that: ‘‘The amendment made by
paragraph (1) [amending this section] shall apply to
contracts, grants, or cooperative agreements for per-
formance commencing on or after October 1, 1991. Con-
tracts, grants, or cooperative agreements the perform-
ance of which commences before October 1, 1991, shall
receive funding for the entire term of performance
without regard to the amendment made by paragraph
(1) and according to the State’s pro rata share of a
$65,000,000 program as computed on the effective date of
this section [Nov. 15, 1990] under population estimates
used for calendar year 1990 agreements, plus $50,000 for
each State, but no State shall receive less than
$200,000.’’
Pub. L. 101–515, title V, § 5(c), Nov. 5, 1990, 104 Stat.
2142, provided that: ‘‘The amendments to the second
proviso in subsection (a)(4) [15 U.S.C. 648(a)(4)] made by
subsection (a) of this section shall apply to contracts,
grants or cooperative agreements for performance com-
mencing on or after October 1, 1991; contracts, grants or
cooperative agreements for performance commencing
prior thereto shall receive funding for the entire term
of performance without regard to this amendment and
according to the State’s pro rata share of a $65,000,000
program as computed on the effective date of this sec-
tion [Nov. 5, 1990] under population estimates used for
calendar year 1990 agreements, plus $50,000 for each
State, but no State shall receive less than $200,000.’’
EFFECTIVE AND TERMINATION DATES
Pub. L. 96–302, title II, § 204, July 2, 1980, 94 Stat. 848,
as amended by Pub. L. 98–177, Nov. 29, 1983, 97 Stat. 1125;
Pub. L. 98–395, § 4, Aug. 21, 1984, 98 Stat. 1368; Pub. L.
101–162, title V, (6), Nov. 21, 1989, 103 Stat. 1028, which
provided for the repeal, effective Oct. 1, 1991, of sections
201 and 202 of Pub. L. 96–302, which enacted this section
and provisions set out as a note under section 631 of
this title and redesignated section 2[21] as 2[30] of Pub.
L. 85–536, set out as a note under section 631 of this
title, was repealed by Pub. L. 101–515, § 5(b), Nov. 5, 1990,
104 Stat. 2142, and Pub. L. 101–574, title II, § 201(b), Nov.
15, 1990, 104 Stat. 2818.
Section effective Oct. 1, 1980, see section 507 of Pub.
L. 96–302, set out as an Effective Date of 1980 Amend-
ment note under section 631 of this title.
SHORT TITLE
For short title of title II of Pub. L. 96–302 as the
Small Business Development Center Act of 1980, see
Short Title of 1980 Amendment note set out under sec-
tion 631 of this title.
REGULATIONS
Pub. L. 102–366, title II, § 223(b), Sept. 4, 1992, 106 Stat.
1000, as amended by Pub. L. 103–81, § 9(c), Aug. 13, 1993,
107 Stat. 783, provided that not later than 180 days after
Sept. 4, 1992, the Administrator of the Small Business
Administration was to submit to the Committees on
Small Business and the Committees on Appropriations
of the Senate and the House of Representatives pro-
posed regulations for the Small Business Development
Center Program authorized by this section.
IMPLEMENTATION
Pub. L. 117–319, § 2(b), Dec. 27, 2022, 136 Stat. 4425, pro-
vided that: ‘‘Not later than 180 days after the date of
enactment of this Act [Dec. 27, 2022], the Administrator
of the Small Business Administration shall implement
paragraphs (2), (3), and (4) of section 21(o) of the Small
Business Act [15 U.S.C. 648(o)(2)–(4)], as added by sub-
section (a).’’
OPPORTUNITIES
FOR
EMPLOYEE-OWNED
BUSINESS
CON-
CERNS
THROUGH
SMALL
BUSINESS
ADMINISTRATION
LOAN PROGRAMS
Pub. L. 115–232, div. A, title VIII, § 862(a), (c)–(e)(2)(A),
Aug. 13, 2018, 132 Stat. 1897–1899, provided that:
‘‘(a) DEFINITIONS.—In this Act [probably should be
‘‘section’’]—
‘‘(1) the terms ‘Administration’ and ‘Administrator’
means the Small Business Administration and the
Administrator thereof, respectively;
‘‘(2) the term ‘cooperative’ means an entity that is
determined to be a cooperative by the Administrator,
in accordance with applicable Federal and State laws
and regulations;
‘‘(3) the term ‘employee-owned business concern’
means—
‘‘(A) a cooperative; and
‘‘(B) a qualified employee trust;
‘‘(4) the terms ‘qualified employee trust’ and ‘small
business concern’ have the meanings given those
terms in section 3 of the Small Business Act (15
U.S.C. 632); and
‘‘(5) the term ‘small business development center’
means a small business development center described
in section 21 of the Small Business Act (15 U.S.C. 648).
‘‘(c) SMALL BUSINESS INVESTMENT COMPANY PROGRAM
OUTREACH.—The Administrator shall provide outreach
and educational materials to companies licensed under
section 301(c) of the Small Business Investment Act of
1958 (15 U.S.C. 681(c)) to increase the use of funds to
make investments in company transitions to employee-
owned business concerns.
‘‘(d) SMALL
BUSINESS
MICROLOAN
PROGRAM
OUT-
REACH.—The Administrator shall provide outreach and
educational materials to intermediaries under section
7(m) of the Small Business Act (15 U.S.C. 636(m)) to in-
crease the use of funds to make loans to employee-
owned business concerns, including transitions to em-
ployee-owned business concerns.
‘‘(e) SMALL BUSINESS DEVELOPMENT CENTER OUTREACH
AND ASSISTANCE.—
‘‘(1) Establishment.—The Administrator shall es-
tablish a Small Business Employee Ownership and
Cooperatives Promotion Program to offer technical
assistance and training on the transition to employee
ownership through cooperatives and qualified em-
ployee trusts.
‘‘(2) SMALL BUSINESS DEVELOPMENT CENTERS.—
‘‘(A) IN GENERAL.—In carrying out the program
established under subsection (a) [probably should be
‘‘paragraph (1)’’], the Administrator shall enter
into agreements with small business development
centers under which the centers shall—
‘‘(i) provide access to information and resources
on employee ownership through cooperatives or
qualified employee trusts as a business succession
strategy;
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TITLE 15—COMMERCE AND TRADE
§ 648c
‘‘(ii) conduct training and educational activi-
ties; and
‘‘(iii) carry out the activities described in sub-
paragraph (U) of section 21(c)(3) of the Small
Business Act (15 U.S.C. 648(c)(3)).’’
SMALL BUSINESS TECHNOLOGY TRANSFER
DEMONSTRATION PROGRAM
Pub. L. 101–574, title II, § 231, Nov. 15, 1990, 104 Stat.
2823, as amended by Pub. L. 102–564, title III, § 302, Oct.
28, 1992, 106 Stat. 4262, established within the Small
Business Administration a Small Business Technology
Transfer Demonstration Program to demonstrate the
feasibility of providing small businesses with edu-
cation, training, and technical assistance with respect
to technology transfer and application and provided
that the Program would terminate on Sept. 30, 1995.
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES
References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organi-
zation and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.
§ 648a. Repealed. Pub. L. 102–140, title VI,
§ 609(e), Oct. 28, 1991, 105 Stat. 826
Section, Pub. L. 85–536, § 2[21A], as added Pub. L.
101–515, title V, § 9(a), Nov. 5, 1990, 104 Stat. 2144, related
to Small Business Development Center Technical As-
sistance Program.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL; TERMINATION OF FUNDING
Pub. L. 102–140, title VI, § 609(e), Oct. 28, 1991, 105 Stat.
826, provided that: ‘‘Notwithstanding any other law, no
funds shall be appropriated to carry out section 21A of
the Small Business Act [15 U.S.C. 648a] after September
30, 1991, and such section is repealed October 1, 1992.’’
§ 648b. Grants for SBDCs
(a) In general
The Administrator may make grants to small
business development centers under section 648
of this title to provide targeted technical assist-
ance to small business concerns seeking access
to capital or credit, Federal procurement oppor-
tunities, energy efficiency audits to reduce en-
ergy bills, opportunities to export products or
provide services to foreign customers, adopting,
making innovations in, and using broadband
technologies, or other assistance.
(b) Allocation
(1) In general
Subject to paragraph (2), and notwith-
standing
the
requirements
of
section
648(a)(4)(C)(iii) of this title, the amount appro-
priated to carry out this section shall be allo-
cated
under
the
formula
under
section
648(a)(4)(C)(i) of this title.
(2) Minimum funding
The amount made available under this sec-
tion to each State shall be not less than
$325,000.
(3) Types of uses
Of the total amount of the grants awarded
by the Administrator under this section—
(A) not less than 80 percent shall be used
for counseling of small business concerns;
and
(B) not more than 20 percent may be used
for classes or seminars.
(c) No non-Federal share required
Notwithstanding section 648(a)(4)(A) of this
title, the recipient of a grant made under this
section shall not be required to provide non-Fed-
eral matching funds.
(d) Distribution
Not later than 30 days after the date on which
amounts are appropriated to carry out this sec-
tion, the Administrator shall disburse the total
amount appropriated.
(e) Authorization of appropriations
There is authorized to be appropriated to the
Administrator $50,000,000 to carry out this sec-
tion.
(Pub. L. 111–240, title I, § 1402, Sept. 27, 2010, 124
Stat. 2550.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Small Business
Jobs Act of 2010, and not as part of the Small Business
Act which comprises this chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definition of ‘‘Administrator’’ and ‘‘small busi-
ness concern’’ as used in this section, see section 1001
of Pub. L. 111–240, set out as a note under section 632 of
this title.
§ 648c. SBA and USPTO partnerships
(a) In general
Beginning not later than 180 days after Octo-
ber 9, 2018, the Administrator, in consultation
with the Director, shall develop partnership
agreements that—
(1) provide for the—
(A) development of high-quality training,
including in-person or modular training ses-
sions, for small business concerns relating to
domestic and international protection of in-
tellectual property;
(B) leveraging of training materials al-
ready developed for the education of inven-
tors and small business concerns; and
(C) participation of a nongovernmental or-
ganization; and
(2) provide training—
(A) through electronic resources, including
Internet-based webinars; and
(B) at physical locations, including—
(i) a small business development center;
and
(ii) the headquarters or a regional office
of the USPTO.
(Pub. L. 115–259, § 4, Oct. 9, 2018, 132 Stat. 3664.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Small Business In-
novation Protection Act of 2017, and not as part of the
Small Business Act which comprises this chapter.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Small business concerns**
(1) **In general** — For the purposes of this chapter, a small-business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation.
(2) **Establishment of size standards**
(A) *In general* — In addition to the criteria specified in paragraph (1) and subject to the requirements specified under subparagraph (C), the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this chapter or any other Act.
(B) *Additional criteria* — The standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors.
(C) *Requirements* — Unless specifically authorized by statute, no Federal department (including the Administration when acting pursuant to subparagraph (A)) or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard—
(i) is proposed after an opportunity for public notice and comment;
(ii) provides for determining—
(I) the size of a manufacturing concern as measured by the manufacturing concern’s average employment based upon employment during each of the manufacturing concern’s pay periods for the preceding 24 months;
(II) the size of a business concern providing services on the basis of the annual average gross receipts of the business concern over
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 632. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 632. Definitions
(a) Small business concerns
(1) In general
For the purposes of this chapter, a small-
business concern, including but not limited to
enterprises that are engaged in the business of
production of food and fiber, ranching and
raising of livestock, aquaculture, and all other
farming and agricultural related industries,
shall be deemed to be one which is independ-
ently owned and operated and which is not
dominant in its field of operation.
(2) Establishment of size standards
(A) In general
In addition to the criteria specified in
paragraph (1) and subject to the require-
ments specified under subparagraph (C), the
Administrator may specify detailed defini-
tions or standards by which a business con-
cern may be determined to be a small busi-
ness concern for the purposes of this chapter
or any other Act.
(B) Additional criteria
The standards described in paragraph (1)
may utilize number of employees, dollar vol-
ume of business, net worth, net income, a
combination thereof, or other appropriate
factors.
(C) Requirements
Unless specifically authorized by statute,
no Federal department (including the Ad-
ministration when acting pursuant to sub-
paragraph (A)) or agency may prescribe a
size standard for categorizing a business
concern as a small business concern, unless
such proposed size standard—
(i) is proposed after an opportunity for
public notice and comment;
(ii) provides for determining—
(I) the size of a manufacturing concern
as measured by the manufacturing con-
cern’s average employment based upon
employment during each of the manufac-
turing concern’s pay periods for the pre-
ceding 24 months;
(II) the size of a business concern pro-
viding services on the basis of the annual
average gross receipts of the busine
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 632. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Loans to small business concerns; allowable purposes; qualified business; restrictions and limitations** The Administration is empowered to the extent and in such amounts as provided in advance in appropriation Acts to make loans for plant acquisition, construction, conversion, or expansion, including the acquisition of land, material, supplies, equipment, and working capital, and to make loans to any qualified small business concern, including those owned by qualified Indian tribes, for purposes of this chapter. Such financings may be made either directly or in cooperation with banks or other financial institutions through agreements to participate on an immediate or deferred (guaranteed) basis. These powers shall be subject, however, to the following restrictions, limitations, and provisions:
(1) **In general.—**
(A) *Credit elsewhere.—*
(i) *In general.—* — The Administrator has the authority to direct, and conduct oversight for, the methods by which lenders determine whether a borrower is able to obtain credit elsewhere. No financial assistance shall be extended pursuant to this subsection if the applicant can obtain credit elsewhere. No immediate participation may be purchased unless it is shown that a deferred participation is not available; and no direct financing may be made unless it is shown that a participation is not available.
(ii) *Liquidity.—* — On and after October 1, 2015, the Administrator may not guarantee a loan under this subsection if the lender determines that the borrower is unable to obtain credit elsewhere solely because the liquidity of the lender depends upon the guaranteed portion of the loan being sold on the secondary market.
(B) *Background checks.—* — Prior to the approval of any loan made pursuant to this subsecti
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 636. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 636. Additional powers
(a) Loans to small business concerns; allowable
purposes; qualified business; restrictions and
limitations
The Administration is empowered to the ex-
tent and in such amounts as provided in advance
in appropriation Acts to make loans for plant
acquisition, construction, conversion, or expan-
sion, including the acquisition of land, material,
supplies, equipment, and working capital, and to
make loans to any qualified small business con-
cern, including those owned by qualified Indian
tribes, for purposes of this chapter. Such
financings may be made either directly or in co-
operation with banks or other financial institu-
tions through agreements to participate on an
immediate or deferred (guaranteed) basis. These
powers shall be subject, however, to the fol-
lowing restrictions, limitations, and provisions:
(1) IN GENERAL.—
(A) CREDIT ELSEWHERE.—
(i) IN GENERAL.—The Administrator has
the authority to direct, and conduct over-
sight for, the methods by which lenders de-
termine whether a borrower is able to ob-
tain credit elsewhere. No financial assist-
ance shall be extended pursuant to this
subsection if the applicant can obtain
credit elsewhere. No immediate participa-
tion may be purchased unless it is shown
that a deferred participation is not avail-
able; and no direct financing may be made
unless it is shown that a participation is
not available.
(ii) LIQUIDITY.—On and after October 1,
2015, the Administrator may not guarantee
a loan under this subsection if the lender
determines that the borrower is unable to
obtain credit elsewhere solely because the
liquidity of the lender depends upon the
guaranteed portion of the loan being sold
on the secondary market.
(B) BACKGROUND CHECKS.—Prior to the ap-
proval of an
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 636. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Grants, contracts and cooperative agreements for establishment of small business development centers and for small business activities and purposes; role of Administration; non-Federal additional amount; amount of grant; eligibility**
(1) The Administration is authorized to make grants (including contracts and cooperative agreements) to any State government or any agency thereof, any regional entity, any State-chartered development, credit or finance corporation, any women’s business center operating pursuant to [section 656 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section656&num=0&edition=prelim), any public or private institution of higher education, including but not limited to any land-grant college or university, any college or school of business, engineering, commerce, or agriculture, community college or junior college, or to any entity formed by two or more of the above entities (herein referred to as “applicants”) to assist in establishing small business development centers and to any such body for: small business oriented employment or natural resources development programs; studies, research, and counseling concerning the managing, financing, and operation of small business enterprises; management and technical assistance regarding small business participation in international markets, export promotion and technology transfer; delivery or distribution of such services and information; providing access to business analysts who can refer small business concerns to available experts; and, to the extent practicable, providing assistance in furtherance of the Small Business Development Center Cyber Strategy developed under section 1841(a) of the National Defense Authorization Act for Fiscal Year 2017: Provided, Tha
### Statutory Notes
Section, Pub. L. 85–536, § 2[21A], as added Pub. L. 101–515, title V, § 9(a), Nov. 5, 1990, 104 Stat. 2144, related to Small Business Development Center Technical Assistance Program.
#### Effective Date of Repeal; Termination of Funding
Pub. L. 102–140, title VI, § 609(e), Oct. 28, 1991, 105 Stat. 826, provided that: “Notwithstanding any other law, no funds shall be appropriated to carry out section 21A of the Small Business Act [[15 U.S.C. 648a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section648a&num=0&edition=prelim)] after September 30, 1991, and such section is repealed October 1, 1992.”
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 648a. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 648a. Repealed. Pub. L. 102–140, title VI,
§ 609(e), Oct. 28, 1991, 105 Stat. 826
Section, Pub. L. 85–536, § 2[21A], as added Pub. L.
101–515, title V, § 9(a), Nov. 5, 1990, 104 Stat. 2144, related
to Small Business Development Center Technical As-
sistance Program.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL; TERMINATION OF FUNDING
Pub. L. 102–140, title VI, § 609(e), Oct. 28, 1991, 105 Stat.
826, provided that: ‘‘Notwithstanding any other law, no
funds shall be appropriated to carry out section 21A of
the Small Business Act [15 U.S.C. 648a] after September
30, 1991, and such section is repealed October 1, 1992.’’
§ 648b. Grants for SBDCs
(a) In general
The Administrator may make grants to small
business development centers under section 648
of this title to provide targeted technical assist-
ance to small business concerns seeking access
to capital or credit, Federal procurement oppor-
tunities, energy efficiency audits to reduce en-
ergy bills, opportunities to export products or
provide services to foreign customers, adopting,
making innovations in, and using broadband
technologies, or other assistance.
(b) Allocation
(1) In general
Subject to paragraph (2), and notwith-
standing
the
requirements
of
section
648(a)(4)(C)(iii) of this title, the amount appro-
priated to carry out this section shall be allo-
cated
under
the
formula
under
section
648(a)(4)(C)(i) of this title.
(2) Minimum funding
The amount made available under this sec-
tion to each State shall be not less than
$325,000.
(3) Types of uses
Of the total amount of the grants awarded
by the Administrator under this section—
(A) not less than 80 percent shall be used
for counseling of small business concerns;
and
(B) not more than 20 percent m
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 648a. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Incorporation and charter under State law, period of succession; area of operations** A small business investment company shall be an incorporated body, a limited liability company, or a limited partnership organized and chartered or otherwise existing under State law solely for the purpose of performing the functions and conducting the activities contemplated under this subchapter, which, if incorporated, has succession for a period of not less than thirty years unless sooner dissolved by its shareholders, and if a limited partnership, has succession for a period of not less than ten years, and possesses the powers reasonably necessary to perform such functions and conduct such activities. The area in which the company is to conduct its operations, and the establishment of branch offices or agencies (if authorized by the articles), shall be subject to the approval of the Administration.
**(b) Articles of incorporation; approval** The articles of any small business investment company shall specify in general terms the objects for which the company is formed, the name assumed by such company, the area or areas in which its operations are to be carried on, the place where its principal office is to be located, and the amount and classes of its shares of capital stock. Such articles may contain any other provisions not inconsistent with this chapter that the company may see fit to adopt for the regulation of its business and the conduct of its affairs. Such articles and any amendments thereto adopted from time to time shall be subject to the approval of the Administration.
**(c) Issuance of license**
(1) **Submission of application** — Each applicant for a license to operate as a small business investment company under this chapter shall submit to the Administrato
Stored review status: release_metadata_unconfirmed. The source passage cites 15 U.S.C. § 681. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 681. Organization
(a) Incorporation and charter under State law,
period of succession; area of operations
A small business investment company shall be
an incorporated body, a limited liability com-
pany, or a limited partnership organized and
chartered or otherwise existing under State law
solely for the purpose of performing the func-
tions
and
conducting
the
activities
con-
templated under this subchapter, which, if in-
corporated, has succession for a period of not
less than thirty years unless sooner dissolved by
its shareholders, and if a limited partnership,
has succession for a period of not less than ten
years, and possesses the powers reasonably nec-
essary to perform such functions and conduct
such activities. The area in which the company
is to conduct its operations, and the establish-
ment of branch offices or agencies (if authorized
by the articles), shall be subject to the approval
of the Administration.
(b) Articles of incorporation; approval
The articles of any small business investment
company shall specify in general terms the ob-
jects for which the company is formed, the name
assumed by such company, the area or areas in
which its operations are to be carried on, the
place where its principal office is to be located,
and the amount and classes of its shares of cap-
ital stock. Such articles may contain any other
provisions not inconsistent with this chapter
that the company may see fit to adopt for the
regulation of its business and the conduct of its
affairs. Such articles and any amendments
thereto adopted from time to time shall be sub-
ject to the approval of the Administration.
(c) Issuance of license
(1) Submission of application
Each applicant for a license to operate as a
small business investment compan
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 681. This identifies an authority to review, not proof of applicability.