§9002 — Title 15 Commerce and Trade | U.S. Code

Summary

The law lets the SBA give grants to two kinds of help centers so they can train and advise small businesses that were hurt by COVID-19. Covered small business concern = a small business that faced supply chain problems (like fewer or later shipments, quality shortages, or tech/payments issues), staffing problems, lost customers or sales, or a shutdown. Resource partner = a small business development center or a women’s business center. Small business development center and women’s business center are the usual programs that help small businesses. The grants must fund teaching and advising about getting SBA and other federal help, preventing and limiting spread of COVID-19, fixing supply-chain and sales problems, working from home and remote customer service, guarding against cyber risks, dealing with less travel or activity, and other business steps to ease COVID-19 harms. The SBA must give 80% of the money to small business development centers (using a formula agreed with their national association) and 20% to women’s business centers (using a process the SBA sets with input). No matching funds are required. Goals and performance measures must be jointly agreed by the SBA and the resource partners, the SBA must publish how those goals are set, and partners may tailor help for rural or distressed areas. The SBA can also fund an association to build one online hub with federal COVID-19 resources and to train counselors (including SCORE and veterans’ counselors) on using it. The SBA must report to the Senate and House small business committees within 6 months after March 27, 2020, and every year after that. The first report must say what programs, services, and the online hub and training were started. Later reports must say how services were developed, problems business owners had getting help, how many unique covered businesses were helped, and outcome data such as number of employees affected, effects on sales, supply-chain disruptions, and mitigation efforts; they must also report on the online resource work and how many counselors were trained.

Title 15, §9002

Commerce and Trade — Source: USLM XML via OLRC

(a)In this section—

(1)the term “covered small business concern” means a small business concern that has experienced, as a result of COVID–19—

(A)supply chain disruptions, including changes in—

(i)quantity and lead time, including the number of shipments of components and delays in shipments;

(ii)quality, including shortages in supply for quality control reasons; and

(iii)technology, including a compromised payment network;

(B)staffing challenges;

(C)a decrease in gross receipts or customers; or

(D)a closure;

(2)the term “resource partner” means—

(A)a small business development center; and

(B)a women’s business center;

(3)the term “small business development center” has the meaning given the term in section 632 of this title; and

(4)the term “women’s business center” means a women’s business center described in section 656 of this title.

(b)(1)The Administration may provide financial assistance in the form of grants to resource partners to provide education, training, and advising to covered small business concerns.

(2)Grants under this subsection shall be used for the education, training, and advising of covered small business concerns and their employees on—

(A)accessing and applying for resources provided by the Administration and other Federal resources relating to access to capital and business resiliency;

(B)the hazards and prevention of the transmission and communication of COVID–19 and other communicable diseases;

(C)the potential effects of COVID–19 on the supply chains, distribution, and sale of products of covered small business concerns and the mitigation of those effects;

(D)the management and practice of telework to reduce possible transmission of COVID–19;

(E)the management and practice of remote customer service by electronic or other means;

(F)the risks of and mitigation of cyber threats in remote customer service or telework practices;

(G)the mitigation of the effects of reduced travel or outside activities on covered small business concerns during COVID–19 or similar occurrences; and

(H)any other relevant business practices necessary to mitigate the economic effects of COVID–19 or similar occurrences.

(3)(A)(i)The Administration shall award 80 percent of funds authorized to carry out this subsection to small business development centers, which shall be awarded pursuant to a formula jointly developed, negotiated, and agreed upon, with full participation of both parties, between the association formed under section 648(a)(3)(A) of this title and the Administration.

(ii)Awards made under clause (i) shall be in addition to, and separate from, any amounts appropriated to make grants under section 648(a) of this title and such an award may be used to complement and support such a grant, except that priority with respect to the receipt of that assistance shall be given to small business development centers that have been affected by issues described in paragraph (2).

(B)The Administration shall award 20 percent of funds authorized to carry out this subsection to women’s business centers, which shall be awarded pursuant to a process established by the Administration in consultation with recipients of assistance.

(C)Matching funds shall not be required for any grant under this subsection.

(4)(A)Goals and metrics for the funds made available under this subsection shall be jointly developed, negotiated, and agreed upon, with full participation of both parties, between the resource partners and the Administrator, which shall—

(i)take into consideration the extent of the circumstances relating to the spread of COVID–19, or similar occurrences, that affect covered small business concerns located in the areas covered by the resource partner, particularly in rural areas or economically distressed areas;

(ii)generally follow the use of funds outlined in paragraph (2), but shall not restrict the activities of resource partners in responding to unique situations; and

(iii)encourage resource partners to develop and provide services to covered small business concerns.

(B)The Administrator shall make publicly available the methodology by which the Administrator and resource partners jointly develop the metrics and goals described in subparagraph (A).

(c)(1)The Administrator may provide grants to an association or associations representing resource partners under which the association or associations shall establish a single centralized hub for COVID–19 information, which shall include—

(A)1 online platform that consolidates resources and information available across multiple Federal agencies for small business concerns related to COVID–19; and

(B)a training program to educate resource partner counselors, members of the Service Corps of Retired Executives established under section 637(b)(1)(B) of this title, and counselors at veterans business outreach centers described in section 657b of this title on the resources and information described in subparagraph (A).

(2)Goals and metrics for the funds made available under this subsection shall be jointly developed, negotiated, and agreed upon, with full participation of both parties, between the association or associations receiving a grant under this subsection and the Administrator.

(d)Not later than 6 months after March 27, 2020, and annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that describes—

(1)with respect to the initial year covered by the report—

(A)the programs and services developed and provided by the Administration and resource partners under subsection (b);

(B)the initial efforts to provide those services under subsection (b); and

(C)the online platform and training developed and provided by the Administration and the association or associations under subsection (c); and

(2)with respect to the subsequent years covered by the report—

(A)with respect to the grant program under subsection (b)—

(i)the efforts of the Administrator and resource partners to develop services to assist covered small business concerns;

(ii)the challenges faced by owners of covered small business concerns in accessing services provided by the Administration and resource partners;

(iii)the number of unique covered small business concerns that were served by the Administration and resource partners; and

(iv)other relevant outcome performance data with respect to covered small business concerns, including the number of employees affected, the effect on sales, the disruptions of supply chains, and the efforts made by the Administration and resource partners to mitigate these effects; and

(B)with respect to the grant program under subsection (c)—

(i)the efforts of the Administrator and the association or associations to develop and evolve an online resource for small business concerns; and

(ii)the efforts of the Administrator and the association or associations to develop a training program for resource partner counselors, including the number of counselors trained.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2020—Subsec. (b)(3)(A). Pub. L. 116–260 designated existing provisions as cl. (i), inserted heading, and added cl. (ii).

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 Amendment Pub. L. 116–260, div. N, title III, § 346(b), Dec. 27, 2020, 134 Stat. 2052, provided that: “The

Amendments

made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281).”

§9002 Entrepreneurial development

Summary

Title 15, §9002

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

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