Federal business support would face limits on programs and recipients

The Small Business Administration would use existing programs for covered services unless Congress explicitly authorizes a later program. Covered services would include business development help, entrepreneurship education, and support for regional business training programs. The rules would exclude services helping businesses owned by Indian tribes. The agency would notify Congress before providing covered services. Programs established before enactment would count as existing programs.

The agency would limit direct development center awards to existing recipients seeking renewal, except for eligible colleges and universities. The restriction would cover grants, contracts, and cooperative agreements under the Small Business Development Center program. Other organizations would need an award from before enactment and would need to seek its renewal afterward. Women's business centers could still receive funds passed through a direct grant recipient.

Congress would authorize $175 million a year for state development center grants. The authorization would cover development center grants distributed to states under a funding formula. Congress would still need to provide the money through separate spending legislation. The authorization would cover fiscal years 2026 through 2029.

Development centers could spend grant money on advertising, collect certain partnership income, and spend federal money before matching money arrives. These permissions would apply within the Small Business Development Center program. Advertising could use up to 10 percent of grant money. Partnership income would require the agency head or a designated representative to participate in the partnership or jointly sponsored activity. Applicants would need to certify in good faith that matching money is available before the grant closes.

The agency would send Congress yearly reports, and a working group would recommend ways to improve data collection. Reports would cover development center services and results. The data review would cover development centers, women's business centers, and Service Corps of Retired Executives (SCORE) chapters. Reports would include job counts only where practical. Yearly development center reports would begin on the first December 1 after enactment and cover the previous fiscal year.