July 21, 2026
Mrs. McIver (for herself and Ms. Velázquez) introduced the following bill; which was referred to the Committee on Small Business
To amend the Small Business Act to make improvements to the Small Business Development Center Program, and for other purposes.
Section 1. Short title
This Act may be cited as the Small Business Development Centers Improvement Act of 2026
.
Sec. 2. Use of authorized entrepreneurial development programs
(a) In general
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
(1)
by redesignating section 49 as section 50; and
(2)
by inserting after section 48 the following new section:
49. Use of authorized entrepreneurial development programs
(a) Expanded support for entrepreneurs
(1) In general
Notwithstanding any other provision of law and except as provided in subsection (c), the Administrator—
(A)
shall only deliver covered activities through a program of the Administration that was established before the date of the enactment of this section; and
(B)
may not establish a program after the date of the enactment of this section to provide covered activities without explicit authority provided by an Act of Congress.
(2) Notification
The Administrator shall notify Congress before providing any covered activities described in paragraph (1)(A).
(b) Annual report
The Administrator shall include in the annual report required under section 10(a) the following information:
(1)
A list of all covered activities undertaken through a program of the Administration during the fiscal year preceding the date of the report, including—
(A)
a description and operating details for each such program and the covered activities conducted under each such program;
(B)
operating circulars, manuals, notices of awards, notices of funding opportunities, and standard operating procedures for each such program and the covered activities conducted under each such program;
(C)
a description of the process used to provide awards for covered activities conducted under each such program;
(D)
the total amount of funding obligated for each such program and the covered activities conducted under each such program for the fiscal year preceding the date of the report; and
(E)
the names and titles of the individuals responsible for carrying out each such program.
(2)
A list of each recipient of an award under a program of the Administration during the fiscal year preceding the date of the report that includes the amount of such award.
(c) Exception
This section does not apply to covered activities to assist small business concerns owned by an Indian tribe (as such term is defined in section 8(a)(13)).
(d) Covered activity defined
In this section, the term covered activity means entrepreneurial development services, entrepreneurial education, or support for the development and maintenance of the Regional Innovation Clusters Program (or similar business training services).
(b) Applicability
Subsection (b) of section 49 of the Small Business Act, as added by this section, shall apply with respect to the first annual report required under section 10(a) of such Act (15 U.S.C. 639(a)) after October 1, 2026.
Sec. 3. Data collection by the small business development center association, women’s business centers, and SCORE
(a) In general
Section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A)) is amended—
(1)
by striking as provided in this section and
and inserting as provided in this section,
; and
(2)
by inserting before the period at the end the following: , and (iv) governing data collection activities related to applicants receiving grants under this section
.
(b) Working group To improve data collection
(1) Establishment
The Administrator of the Small Business Administration shall establish a group to be known as the Data Collection Working Group
consisting of—
(A)
recipients of grants that are women’s business centers (as described under section 29 of the Small Business Act (15 U.S.C. 656)), small business development centers (as defined in section 3 of such Act (15 U.S.C. 632)), and chapters of the Service Corps of Retired Executives (established under section 8(b)(1)(B) of such Act (15 U.S.C. 637(b)(1)(B)));
(B)
associations and organizations representing such recipients;
(C)
contractors that handle data systems for women’s business centers, small business development centers, and chapters of the Service Corps of Retired Executives; and
(D)
the Associate Administrators of the Small Business Administration for—
(i)
the Office of Entrepreneurial Development;
(ii)
the Office of Small Business Development Centers; and
(iii)
the Office of Women's Business Ownership.
(2) Responsibilities
The Data Collection Working Group shall—
(A)
determine the best methods for conducting data collection activities for the Small Business Development Center Program, women’s business centers, and chapters of the Service Corps of Retired Executives; and
(B)
develop recommendations to create or revise existing systems dedicated to data collection for the Small Business Development Center Program, women’s business centers, and chapters of the Service Corps of Retired Executives.
(3) Report
Not later than 180 days after the date of the enactment of this Act, the Data Collection Working Group shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report containing the findings and determinations of the Data Collection Working Group pursuant to paragraph (2), including—
(A)
the recommendations developed under paragraph (2)(B); and
(B)
a proposed plan for the Administrator of the Small Business Administration to implement such recommendations.
Sec. 4. Marketing of services
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by section 14, is further amended by adding at the end the following:
(q) No prohibition of marketing of services
An applicant receiving a grant under this section may use up to 10 percent of grant amounts to market and advertise the services of such applicant to individuals and small business concerns.
Sec. 5. Fees from private partnerships
Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)) is amended by adding at the end the following:
(D) Fees from private partnerships and cosponsorships
A small business development center that participates in a private partnership or cosponsorship, in which the Administrator or designee of the Administrator also participates, may collect fees or other income related to the operation of such private partnership or cosponsorship.
Sec. 6. Small business development center accreditation
Subclause (I) of section 21(a)(4)(C)(v) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(v)(I)) is amended to read as follows:
(I) In general
Of the amounts made available in any fiscal year to carry out this section, not more than $600,000 may be used by the Administration to pay expenses described in subparagraphs (B) through (D) of section 20(a)(1).
Sec. 7. Confidentiality requirements
Section 21(a)(7)(A) of the Small Business Act (15 U.S.C. 648(a)(7)(A)) is amended—
(1)
by striking or telephone number
and inserting , telephone number, or email address
; and
(2)
by inserting , or the nature or content of such assistance, to any State, local, or Federal agency, or to any third party
after receiving assistance under this section
.
Sec. 8. Limitation on award of grants to small business development centers
(a) In general
Section 21 of the Small Business Act (15 U.S.C. 648), as amended by this Act, is further amended—
(1)
in subsection (a)(1)—
(A)
by striking any women’s business center operating pursuant to section 29,
;
(B)
by striking or a women’s business center operating pursuant to section 29
; and
(C)
by striking and women’s business centers operating pursuant to section 29
; and
(2)
by adding at the end the following:
(r) Limitation on award of grants
Except for an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) and notwithstanding any other provision of law, the Administrator may not award a grant or contract to, or enter into a cooperative agreement with, an entity under this section unless that entity—
(1)
received a grant or contract from, or entered into a cooperative agreement with, the Administrator under this section before the date of the enactment of this subsection; and
(2)
seeks to renew such a grant, contract, or cooperative agreement after such date.
(b) Rule of construction
The amendments made by this section may not be construed as prohibiting a women’s business center (as described under section 29 of the Small Business Act) from receiving a subgrant from an entity receiving a grant under section 21 of the Small Business Act.
Sec. 9. Management of program activities
Section 21(a)(3) of the Small Business Act (15 U.S.C. 648(a)(3)), as amended by section 5, is further amended—
(1)
in the matter preceding subparagraph (A), by striking upon, with full participation of both parties,
and inserting upon with the full participation of all parties (including the association authorized in subparagraph (A)), and carried out
;
(2)
in subparagraph (A), by striking and develop
and inserting and negotiate the development of
; and
(3)
in subparagraph (C)—
(A)
by striking Whereas
;
(B)
by inserting Program
after Center
;
(C)
by striking National
and inserting national
; and
(D)
by moving such subparagraph 2 ems to the left.
Sec. 10. Authorization of appropriations for formula grants received by States
Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended—
(1)
in clause (vii), by striking this subparagraph
and all that follows through the period at the end and inserting this subparagraph $175,000,000 for each of fiscal years 2026 through 2029.
; and
(2)
in clause (viii)—
(A)
by striking shall reserve not less than $1,000,000
and inserting shall reserve not more than $2,000,000
; and
(B)
by striking shall not exceed $100,000
and inserting shall not exceed $200,000
.
Sec. 11. Requirements relating to matching funds
Section 21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)) is amended by adding at the end the following new sentence: The applicant shall provide to the Administrator good faith certifications and representations of the availability of matching funds before the close-out date of such grant, and the applicant may expend Federal funds before receipt of such matching funds.
.
Sec. 12. Contract prerequisites
Section 21(a)(5)(B) of the Small Business Act (15 U.S.C. 648(a)(5)(B)) is amended by adding at the end the following: If the Associate Administrator fails to issue a determination of an approval for a contract within 10 days after receipt of a request for such determination, such contract shall be deemed to be approved.
.
Sec. 13. Duties of the Associate Administrator for Small Business Development Centers
Section 21(h)(2) of the Small Business Act (15 U.S.C. 648(h)(2)) is amended by adding at the end the following new subparagraph:
(C) Marketing
The Associate Administrator for Small Business Development Centers shall market and advertise the Small Business Development Center Program and participants in such Program as a resource available to any Federal program providing assistance to small business concerns.
Sec. 14. Annual report on entrepreneurial development activities
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by adding at the end the following new subsection:
(p) Small business development centers annual report
Beginning on the first December 1 after the date of the enactment of this subsection, the Administrator shall annually submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the entrepreneurial development activities undertaken during the fiscal year preceding the date of the report through the Small Business Development Center Program (in this subsection referred to as the
Program), including—(1)
the total number of hours of counseling and training services provided through the Program;
(2)
to the extent practicable, the demographics of participants in the Program, which shall include the gender, race, and age of each such participant;
(3)
the number of participants in the Program who are veterans;
(4)
the number of new businesses started by participants in the Program;
(5)
to the extent practicable, the number of jobs created or retained with assistance from the Program;
(6)
to the extent practicable, the amount of capital secured by participants in the Program, including through loans and equity investment;
(7)
the number of participants in the Program receiving financial assistance, including the type and dollar amount, under a loan program of the Administration;
(8)
an estimate of gross receipts, including (to the extent practicable) a description of any change in revenue, of small business concerns assisted through the Program;
(9)
the number of referrals of individuals counseled or trained through the Program to other resources and programs of the Administration;
(10)
the results of satisfaction surveys of participants in the Program, including a summary of any comments received from such participants; and
(11)
any recommendations by the Administrator or the National Small Business Development Center Advisory Board (established under subsection (i)) to improve the delivery of services by the Program.