15 Usc 648

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TITLE 15—COMMERCE AND TRADE

(2) ‘‘credit elsewhere’’ means the availability
of sufficient credit from non-Federal sources
at reasonable rates and terms, taking into
consideration prevailing private rates and
terms in the community in or near where the
concern transacts business for similar purposes and periods of time.
(Pub. L. 85–536, § 2[18], July 18, 1958, 72 Stat. 396;
Pub. L. 93–386, § 5, Aug. 23, 1974, 88 Stat. 746; Pub.
L. 94–305, title I, § 112(e), June 4, 1976, 90 Stat.
667; Pub. L. 96–38, title I, § 101(c), July 25, 1979, 93
Stat. 119; Pub. L. 96–302, title I, § 119(c), July 2,
1980, 94 Stat. 841; Pub. L. 98–270, title III, § 303,
Apr. 18, 1984, 98 Stat. 160; Pub. L. 98–369, div. B,
title IV, § 2401, July 18, 1984, 98 Stat. 1116; Pub. L.
99–272, title XVIII, § 18006(a)(3), Apr. 7, 1986, 100
Stat. 366.)
PRIOR PROVISIONS
Prior similar provisions were contained in section
225, of act July 30, 1953, ch. 282, as added by act Aug. 9,
1955, ch. 628, § 14, 69 Stat. 551, which was previously classified to section 651 of this title. The provisions of section 218 of act July 30, 1953, formerly classified to this
section, were transferred to section 2[12] of Pub. L.
85–536, and are classified to section 641 of this title. See
Codification note set out under section 631 of this title.
AMENDMENTS
1986—Subsec. (a). Pub. L. 99–272 struck out agricultural enterprises exception and proviso that, prior to
Oct. 1, 1987, an agricultural enterprise not be eligible
for loan assistance under section 636(b)(1) of this title
to repair or replace property other than residences and/
or personal property unless it is declined for, or would
be declined for, emergency loan assistance at substantially similar interest rates from the Farmers Home
Administration under subchapter III of the Consolidated Farm and Rural Development Act.
1984—Subsec. (a). Pub. L. 98–369 substituted ‘‘October
1, 1987’’ for ‘‘October 1, 1986’’.
Pub. L. 98–270 substituted ‘‘October 1, 1986’’ for ‘‘October 1, 1983’’.
1980—Subsec. (a). Pub. L. 96–302, § 119(c)(1), inserted
proviso relating to eligibility for loan assistance prior
to October 1, 1983.
Subsec. (b). Pub. L. 96–302, § 119(c)(2), added par. (1)
and designated as par. (2) existing definition of ‘‘credit
elsewhere’’.
1979—Pub. L. 96–38 designated existing provisions as
subsec. (a) and added subsec. (b).
1976—Pub. L. 94–305 inserted reference to those enterprises engaged in the production of food and fiber,
ranching, and raising of livestock, aquaculture, and all
other farming and agricultural related industries.
1974—Pub. L. 93–386 inserted provision authorizing the
refusal of loan applications and the denial of loans, for
purposes of this section, to be deemed nonduplication
of activities.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–270 effective Oct. 1, 1983,
see section 313 of Pub. L. 98–270, set out as a note under
section 632 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–302 inapplicable to disasters commencing on or before Oct. 1, 1980, see section
119(d) of Pub. L. 96–302, set out as a note under section
636 of this title.
PROGRAMS ADMINISTERED BY THE DEPARTMENT OF
COMMERCE
Pub. L. 95–507, § 207, Oct. 24, 1978, 92 Stat. 1767, provided that: ‘‘Nothing in this chapter [meaning chapter
1 of title II of Pub. L. 95–507, consisting of sections

§ 648

201–206 of Pub. L. 95–507 which amended sections 631,
633, 636, and 637 of this title] is intended to duplicate or
limit any programs or projects administered by the Department of Commerce.’’

§ 648. Small business development center program authorization
(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 Statechartered development, credit or finance corporation, any women’s business center operating
pursuant to section 656 of this title, 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; and providing access to business analysts who can refer small business concerns to
available experts: Provided, That after December
31, 1990, the Administration shall not make a
grant to any applicant other than an institution
of higher education or a women’s business center operating pursuant to section 656 of this title
as a Small Business Development Center unless
the applicant was receiving a grant (including a
contract or cooperative agreement) on such
date. The Administration shall require any applicant 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 education 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 agencies), and the small business community to
serve as an active information dissemination
and service delivery mechanism for existing
trade promotion, trade finance, trade adjustment, trade remedy and trade data collection

§ 648

TITLE 15—COMMERCE AND TRADE

programs of particular utility for small businesses.
(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 appropriate services to the small business concern; and
(ii) as necessary, refer the small business
concern to a State trade agency or an Export Assistance Center for further counseling 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 delivery of programs and services to 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 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 majority 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 activities 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 assistance as provided in this section and (iii) governing the general operations and administration of the Small Business Development Center
Program, specifically including the development
of regulations and a uniform negotiated cooperative agreement for use on an annual basis when
entering into individual negotiated agreements
with small business development centers.
(B) Provisions governing audits, cost principles and administrative requirements for Federal grants, contracts and cooperative agreements which are included in uniform requirements of Office of Management and Budget
(OMB) Circulars shall be incorporated by reference and shall not be set forth in summary or
other form in regulations.
(C) On an annual basis, the Small Business Development Center shall review and coordinate
public and private partnerships and cosponsorships 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 PROGRAM LEVEL.—
(A) IN GENERAL.—The Administration shall
require as a condition of any grant (or amendment or modification thereof) made to an applicant under this section, that a matching
1 So

in original. Probably should not be capitalized.

Page 894

amount (excluding any fees collected from recipients 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 described in subparagraph (A) shall not include
any indirect costs or in-kind contributions derived 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 reductions made for expenses authorized by
clause (v) of this subparagraph, shall be divided on a pro rata basis, based on the percentage 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 determine 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 deductions 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 funding 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 subparagraph shall not exceed the amount of
matching funds from sources other than the
Federal Government, as required under subparagraph (A).
(iii) MINIMUM FUNDING LEVEL.—The amount
of the minimum funding level for each State
2 See

References in Text note below.

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TITLE 15—COMMERCE AND TRADE

shall be determined for each fiscal year
based on the amount made available for that
fiscal year to carry out this section, as follows:
(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 funding level shall be the sum of $500,000 plus a
percentage of $500,000 equal to the percentage 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 remaining funds as follows:
(I) If the grant to any State is less than
the amount received by that State in fiscal year 2000, the Administration shall distribute 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 exhausted, whichever first occurs.
(II) If any funds remain after the application of subclause (I), the remaining
amount may be distributed as supplemental grants to any State, as the Administration 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 expenses 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 appropriations Acts, or accompanying report
language, for specific institutions or for
purposes other than the general small
business development center program) or
would further reduce the amount of such
grants below such amount.

§ 648

(vi) EXCLUSIONS.—Grants provided to a
State by the Administration or another Federal 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 appropriated pursuant to clause (vii), the Administration shall reserve not less than
$1,000,000 in each fiscal year to develop portable assistance for startup and sustainability non-matching grant programs to be
conducted by eligible small business development centers in communities that are economically challenged as a result of a business or government facility down sizing or
closing, which has resulted in the loss of jobs
or small business instability. A non-matching 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 services.
(ix) STATE DEFINED.—In this subparagraph,
the term ‘‘State’’ means each of the several
States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.
(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 provide specific assistance to small business concerns.
(B) CONTRACT PREREQUISITES.—Before bidding on a contract described in subparagraph
(A), a small business development center shall
receive approval from the Associate Administrator of the small business development center program of the subject and general scope
of the contract. Each approval under subparagraph (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 business development center in carrying out the
terms of the grant received by the small business development center from the Administration.
(C) EXEMPTION FROM MATCHING REQUIREMENT.—A contract under this paragraph shall
not be subject to the matching funds or eligibility requirements of paragraph (4).
(D) ADDITIONAL PROVISION.—Notwithstanding
any other provision of law, a contract for assistance under this paragraph shall not be applied to any Federal department or agency’s
small business, woman-owned business, or socially and economically disadvantaged business contracting goal under section 644(g) of
this title.

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TITLE 15—COMMERCE AND TRADE

(6) Any applicant which is funded by the Administration 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 enhancement of minority-owned small business
startups or expansions, HUBZone small business concerns, veteran-owned small business
startups or expansions, and women-owned
small business startups or expansions, in communities impacted by base closings or military or corporate downsizing, or in rural or
underserved communities;
as provided under subparagraphs (B) through (G)
of subsection (c)(3). Applicants for such additional grants shall comply with all of the provisions of this section, including providing matching funds, except that funding under this paragraph shall be effective for any fiscal year to the
extent provided in advance in appropriations
Acts and shall be in addition to the dollar program 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 Business Development Center as compared to the
total population of the United States. The minimum amount of eligibility for any State shall be
$100,000.
(7) PRIVACY REQUIREMENTS.—
(A) IN GENERAL.—A small business development center, consortium of small business development centers, or contractor or agent of a
small business development center may not
disclose the name, address, or telephone number of any individual or small business concern 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 disclosure to be necessary for the purpose of
conducting a financial audit of a small business development center, but a disclosure
under this clause shall be limited to the information necessary for such audit.
(B) ADMINISTRATOR USE OF INFORMATION.—
This section shall not—
(i) restrict Administrator access to program 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 financial audits under subparagraph (A)(ii); and
(II) for client surveys under subparagraph (B)(ii), including standards for oversight of such surveys and for dissemination and use of client information.
(ii) MAXIMUM PRIVACY PROTECTION.—Regulations under this subparagraph, shall, to

Page 896

the extent practicable, provide for the maximum amount of privacy protection.
(iii) INSPECTOR GENERAL.—Until the effective date of regulations under this subparagraph, any client survey and the use of such
information shall be approved by the Inspector General who shall include such approval
in his semi-annual report.
(b) Area plan inconsistent with applicant’s plan:
assistance unavailable 1981 through 1983;
plan of applicant: submittal to Administration, action on plan, review by Administration, assistance to out-of-State businesses
(1) Financial assistance shall not be made
available to any applicant if approving such assistance 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 Administration in accordance with the standards and
requirements established pursuant to this section.
(2) An applicant may apply to participate in
the program by submitting to the Administration for approval a plan naming those authorized in subsection (a) to participate in the program, the geographic area to be served, the services that it would provide, the method for delivering services, a budget, and any other information and assurances the Administration may require to insure that the applicant will carry out
the activities eligible for assistance. The Administration is authorized to approve, conditionally approve or reject a plan or combination
of plans submitted. In all cases, the Administration 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 BUSINESS CONCERNS.—
(A) IN GENERAL.—At the discretion of the
Administration, the Administration is authorized to permit a small business development
center to provide advice, information and assistance, 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 determined by the Administration.
(B) DISASTER RECOVERY ASSISTANCE.—
(i) IN GENERAL.—At the discretion of the
Administrator, the Administrator may authorize a small business development center
to provide advice, information, and assistance, 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 located in an area for which the President has
declared a major disaster.
(ii) TERM.—
(I) IN GENERAL.—A small business development center may provide advice, information, and assistance to a small business
concern under clause (i) for a period of not

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TITLE 15—COMMERCE AND TRADE

§ 648

more than 2 years after the date on which
the President declared a major disaster for
the area in which the small business concern is located.
Administrator
(II)
EXTENSION.—The
may, at the discretion of the Administrator, extend the period described in subclause (I).

(D) access to information specialists to assist in providing information searches and referrals to small business;
(E) access to part-time professional specialists to conduct research or to provide counseling assistance whenever the need arises; and
(F) access to laboratory and adaptive engineering facilities.

(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 center otherwise provides services.
(iv) ACCESS TO DISASTER RECOVERY FACILITIES.—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 Administrator for use to provide disaster recovery
assistance.
(c) Problem-solving assistance; development center extension services; staff and access requirements; assistance services; changing
services for evolving needs; qualified small
business vendors; non-profit entities; cooperation with regional and local offices,
etc.; information sharing system
(1) Applicants receiving grants under this section shall assist small businesses in solving
problems concerning operations, manufacturing,
engineering, technology exchange and development, personnel administration, marketing,
sales, merchandising, finance, accounting, business strategy development, and other disciplines
required for small business growth and expansion, innovation, increased productivity, and
management improvement, and for decreasing
industry economic concentrations. Applicants
receiving grants under this section may also assist small businesses by providing, where appropriate, education on the requirements applicable
to small businesses under the regulations issued
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 Development Center shall be located in such places as
to provide maximum accessibility and benefits
to the small businesses which the center is intended 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 development center shall have—
(A) a full-time staff, including a full-time director 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 businesses through coupling with national and regional technology data sources;

(3) Services provided by a small business development center shall include, but shall not be
limited to—
(A) furnishing one-to-one individual counseling to small businesses, including—
(i) working with individuals to increase
awareness of basic credit practices and credit requirements;
(ii) working with individuals to develop
business plans, financial packages, credit applications, and contract proposals;
(iii) working with the Administration to
develop and provide informational tools for
use in working with individuals on pre-business startup planning, existing business expansion, 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, research and development, including applied research, 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 communities to help commercialize universitybased research and development and introduce university-based engineers and scientists to their counterparts in small technology-based firms; and
(iii) exploring the viability of developing
shared production facilities, under appropriate circumstances;
(C) in cooperation with the Department of
Commerce and other relevant Federal agencies, actively assisting small businesses in exporting by identifying and developing potential export markets, facilitating export transactions, developing linkages between United
States small business firms and prescreened
foreign buyers, assisting small businesses to
participate in international trade shows, assisting small businesses in obtaining export financing, and facilitating the development or
reorientation of marketing and production
strategies; where appropriate, the Small Business Development Center and the Administration 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 regional 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 financing programs, and otherwise identify and

§ 648

TITLE 15—COMMERCE AND TRADE

help to make available export financing programs 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 subsection, applicants shall cooperate with the
Department of Commerce and other relevant
Federal agencies to increase access to available export market information systems, including 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 facility within the community, or actual or projected reductions in such firms’ business base
due to the actual or projected termination (or
reduction) of a Department of Defense program or a contract in support of such program—
(i) by developing broad economic assessments of the adverse impacts of—
(I) the closure (or reduction) of the Department of Defense facility on the small
business concerns providing goods or services 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 contracts under such program) on the small
business concerns participating in such
program as a prime contractor, subcontractor or supplier at any tier;
(ii) by developing, in conjunction with appropriate Federal, State, and local governmental entities and other private sector organizations, 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 community 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 concerning 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 businesses find solutions for complying with environmental, 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 solutions;
3 So
4 So

in original. The period probably should be a semicolon.
in original. Probably should be ‘‘counseling’’.

Page 898

(J) providing and maintaining a comprehensive library that contains current information
and statistical data needed by small businesses;
(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 general 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 relevant Federal agencies, actively assisting
rural small businesses in exporting by identifying and developing potential export markets
for rural small businesses, facilitating export
transactions for rural small businesses, developing linkages between United States’ rural
small businesses and prescreened foreign buyers, assisting rural small businesses to participate in international trade shows, assisting
rural small businesses in obtaining export financing and developing marketing and production 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 needed by rural small businesses;
(iii) by making available managerial assistance to rural small business concerns;
and
(iv) by providing information and assistance 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, recreational, and scenic resources of such communities;
(ii) providing assistance to small businesses 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 regulatory requirements;
(R) developing informational publications,
establishing resource centers of reference materials, and distributing compliance guides
published under section 312(a) 5 of the Small
Business Regulatory Enforcement Fairness
Act of 1996;
(S) providing small business owners with access to a wide variety of export-related infor5 See

References in Text note below.

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TITLE 15—COMMERCE AND TRADE

mation by establishing on-line computer linkages between small business development centers and an international trade data information network with ties to the Export Assistance Center program; and
(T) providing information and assistance to
small business concerns with respect to establishing drug-free workplace programs on or before October 1, 2006.
(4) A small business development center shall
continue to upgrade and modify its services, as
needed, in order to meet the changing and evolving needs of the small business community.
(5) In addition to the methods prescribed in
paragraph (2), a small business development center shall utilize and compensate as one of its resources qualified small business vendors, including but not limited to, private management consultants, private consulting engineers and private 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 Administration has not made a grant pursuant to paragraph (1) of subsection (a), or (B) in which no application for a grant has been made by a Small
Business Development Center pursuant to paragraph (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 Administration notifies the grantee funded under subsection (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 applicants shall comply with the matching funds requirement of paragraph (4) of subsection (a).
Such grants shall be effective for any fiscal year
only to the extent provided in advance in appropriations 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 appropriate 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 Administration 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 agreements under this paragraph. The system shall—
(A) allow Small Business Development Centers participating in the program to exchange
information about their programs; and
6 So

in original. Probably should be ‘‘enter into’’.

§ 648

(B) provide information central to technology transfer.
(d) Enhancing export potential of businesses
within State; State Office of International
Trade
Where appropriate, the Small Business Development 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 businesses located within the State. This plan may
involve the cofunding and staffing of a State Office of International Trade within the State
Small Business Development Center, using joint
State and Federal funding, and any other appropriate measures directed at improving the export performance of small businesses within the
State.
(e) Laboratory assistance; reimbursement for
services
Laboratories operated and funded by the Federal Government are authorized and directed to
cooperate with the Administration in developing
and establishing programs to support small
business development centers by making facilities and equipment available; providing experiment station capabilities in adaptive engineering; providing library and technical information
processing capabilities; and providing professional staff for consulting. The Administration
is authorized to reimburse the laboratories for
such services.
(f) National Science Foundation; cooperation
with Administration and Small Business Development Centers; center support
The National Science Foundation is authorized and directed to cooperate with the Administration and with the Small Business Development Centers in developing and establishing
programs to support the centers.
(g) National Aeronautics and Space Administration and regional technology transfer centers
The National Aeronautics and Space Administration and regional technology transfer centers
supported by the National Aeronautics and
Space Administration are authorized and directed to cooperate with small business development centers participating in the program.
(h) Associate Administrator for Small Business
Development Centers
(1) Appointment and compensation
The Administrator shall appoint an 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) Duties
(A) In general
The sole responsibility of the Associate
Administrator for Small Business Develop-

§ 648

TITLE 15—COMMERCE AND TRADE

ment Centers shall be to administer the
small business development center program.
Duties of the position shall include recommending the annual program budget, reviewing the annual budgets submitted by
each applicant, establishing appropriate
funding levels therefore,7 selecting applicants to participate in this program, implementing the provisions of this section, maintaining a clearinghouse to provide for the
dissemination and exchange of information
between small business development centers
and conducting 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 Administration officials in areas served by the
small business development centers; however, the Associate Administrator shall be
responsible for the management and administration 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 Business Development Center Advisory Board (herein 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 representing 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 onethird of the Board changing each year.
(2) The Board shall elect a Chairman and advise, counsel, and confer with the Associate Administrator for Small Business Development
Centers in carrying out the duties described in
this section. The Board shall meet at least semiannually and at the call of the Chairman of the
Board. Each member of the Board shall be entitled 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 engaged in activities of the Board and shall be entitled to be reimbursed for expenses as a member of the Board.
7 So

in original. Probably should be ‘‘therefor,’’.

Page 900

(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 advise, 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 participate 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 implement a biennial programmatic and financial
examination of each small business development center established pursuant to this section.
(2) Accreditation
The Administration may provide financial
support, by contract or otherwise, to the association authorized by subsection (a)(3)(A) for
the purpose of developing a small business development center accreditation program.
(3) Extension or renewal of cooperative agreements
(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 accreditation program conducted pursuant to paragraphs (1) and (2).
(B) Accreditation requirement
After September 30, 2000, the Administration may not renew or extend any cooperative agreement with a small business development center unless the center has been approved under the accreditation program conducted pursuant to this subsection, except
that the Associate Administrator for Small
Business Development Centers may waive
such accreditation requirement, in the discretion 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
in appropriations Acts. After the administration
has entered 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
therefore 7 and affording the applicant an opportunity for a hearing, appeal, or other administrative proceeding under the provisions of chapter 5 of title 5. If any contract or cooperative
agreement under this section with an entity

Page 901

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TITLE 15—COMMERCE AND TRADE

that is covered by this section is not renewed or
extended, any award of a successor contract or
cooperative agreement under this section to another 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 compensation 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 development center shall—
(A) create a marketing campaign to promote awareness and education of the services of the center that are available to veterans, and to target the campaign toward veterans, service-disabled veterans, military
units, Federal agencies, and veterans organizations;
(B) use technology-assisted online counseling and distance learning technology to
overcome the impediments to entrepreneurship faced by veterans and members of the
Armed Forces; and
(C) increase coordination among organizations that assist veterans, including by establishing virtual integration of service providers 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 agreements to carry out the provisions of this subsection.
(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

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.)
REFERENCES IN TEXT
Section 20(a), referred to in subsec. (a)(4)(C)(i)(I), (v),
means section 2[20(a)] of Pub. L. 85–536, as amended,
which is set out as a note under section 631 of this title.
Section 312(a) of the Small Business Regulatory Enforcement 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, because 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 requirements 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[47] and is set out as a note under section 631
of this title.
AMENDMENTS
2015—Subsec. (b)(3). Pub. L. 114–88 inserted par. heading, 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 appropriate, education on the requirements applicable to
small businesses under the regulations issued under
section 2778 of title 22 and on compliance with those requirements.’’
2010—Subsec. (a)(2). Pub. L. 111–240 designated existing provisions as subpar. (A), inserted par. (2) and subpar. (A) headings, substituted ‘‘The small business development centers’’ for ‘‘The Small Business Development Centers’’, inserted ‘‘(including State trade agencies),’’ 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 authorized 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 ‘‘Accreditation’’ 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 appropriations Acts’’.

§ 648

TITLE 15—COMMERCE AND TRADE

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 provisions 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 reductions, 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 thereafter.
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), inserted ‘‘any women’s business center operating pursuant 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 education’’.
Subsec. (a)(3). Pub. L. 105–135, § 502(a)(2)(A), substituted ‘‘for the delivery of programs and services to
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 between the Small Business Development Center applicant and the Administration’’ for ‘‘, but with recognition that a partnership exists under this section between the Administration and the applicant for the delivery of assistance to the small business community.
Services shall be provided pursuant to a negotiated cooperative 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 population of the State as compared to the total population 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 September 30, 1997; and
‘‘(III) $85,000,000 beginning October 1, 1997.’’
Subsec. (a)(6)(C). Pub. L. 105–135, § 502(a)(4), added subpar. (C).
Subsec. (c)(3). Pub. L. 105–135, § 502(b)(4), redesignated
closing provisions as par. (4). Former par. (4) redesignated (5).
Subsec. (c)(3)(A). Pub. L. 105–135, § 502(b)(1)(A), substituted ‘‘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), realigned margins.
Subsec. (c)(3)(C). Pub. L. 105–135, § 502(b)(1)(B), (C), realigned margins and inserted ‘‘and the Administration’’
after ‘‘Small Business Development Center’’.

Page 902

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 subpar. (S).
Subsec. (c)(4). Pub. L. 105–135, § 502(b)(4), redesignated
closing provisions of par. (3) as (4). Former par. (4) redesignated (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, substituted ‘‘subsection (a)(1)’’ for ‘‘paragraph (a)(1)’’ and
‘‘whichever date occurs last,’’ for ‘‘which ever date occurs last,,’’.
Subsec. (c)(6) to (8). Pub. L. 105–135, § 502(b)(3), redesignated 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 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
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 subpars. (Q) and (R).
Subsec. (c)(7). Pub. L. 104–208, § 106(a)(2)(A), substituted ‘‘Associate Administrator for Small Business
Development Centers’’ for ‘‘Deputy Associate Administrator of the Small Business Development Center program’’.
Subsec. (h). Pub. L. 104–208, § 106(a)(1), amended subsec. (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 Administrator 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 dissemination 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), substituted ‘‘Associate Administrator for Small Business
Development Centers’’ for ‘‘Deputy Associate Administrator for Management Assistance’’.
Subsec. (k)(3). Pub. L. 104–208, § 106(b), amended heading and text of par. (3) generally. Prior to amendment,
text read as follows: ‘‘In extending or renewing a cooperative agreement of a small business development center, the Administration shall consider the results of the
examination and certification program conducted pursuant 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 contracts 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 entered 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

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TITLE 15—COMMERCE AND TRADE

any such contract unless the Administration provides
the applicant with written notification setting forth
the reasons therefor and affording the applicant an opportunity 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 follows: ‘‘The National Aeronautics and Space Administration 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 program. The National Aeronautics and Space Administration shall report annually on the performance of such
industrial application centers with recommendations
to the Administration and the Congress on how such industrial application centers can be strengthened and
expanded. The National Aeronautics and Space Administration shall include in its report to Congress information on the ability of industrial application centers
to interact with the Nation’s small business community 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 Administration shall require, as a condition to any grant
(or amendment or modification thereof) made to an applicant under this section that an additional amount
(excluding any fees collected from recipients of such assistance) equal to the amount of such grant be provided
from sources other than the Federal Government: Provided, 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 receive 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 nonFederal 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 follows: ‘‘Within six months of August 21, 1984, the Administration shall develop and implement a program proposal for onsite evaluation of each Small Business Development 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-reimbursement basis.’’
1993—Subsec. (c)(7). Pub. L. 103–81 substituted ‘‘system. Subject to amounts approved in advance in appropriations 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, redesignated former subpars. (E) to (G) as (D) to (F), respectively, added subpar. (G), and struck out former subpar.
(D) which read as follows: ‘‘assisting small businesses
in developing and implementing marketing and production strategies that will enable them to better compete
within the domestic market;’’.
1990—Subsec. (a)(1). Pub. L. 101–515, § 6, struck out period at end of first sentence and inserted ‘‘: Provided,

§ 648

That after December 31, 1990, the Administration shall
not make a grant to any applicant other than an institution of higher education as a Small Business Development Center unless the applicant was receiving a
grant (including a contract or cooperative agreement)
on such date. The Administration shall require any applicant 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 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, substituting ‘‘Provided further, That no recipient of funds
under this section shall receive 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.’’ for ‘‘Provided further, That no recipient of funds under this section shall receive a grant which would exceed its pro
rata share of a $65,000,000 program based upon the population 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), inserted provision relating to management and technical
assistance regarding small business participation in
international markets, export promotion and technology 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 subpars. (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 existing 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 Centers’’ for ‘‘Deputy Associate Administrator for Management Assistance’’ in three places, and in par. (1) by substituting ‘‘an official who is not more than one level
below the Office of the Administrator’’ for ‘‘the Associate 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 subsec. (g) as (h). Former subsec. (h) redesignated (i).
Subsecs. (i) to (k). Pub. L. 100–418, § 8006(b)(7), redesignated former subsecs. (h) to (j) as (i) to (k), respectively. 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, terminating or failing to renew or extend any contract without
written notification and opportunity for hearing, appeal or other administrative proceeding, was executed
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.

§ 648a

TITLE 15—COMMERCE AND TRADE

Pub. L. 100–418, § 8006(b)(7), redesignated former subsec. (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 ‘‘Financial’’ for ‘‘During fiscal years 1981, 1982, and 1983, financial’’.
Subsec. (c)(2). Pub. L. 98–395, § 2(4), inserted in provisions preceding subpar. (A) ‘‘The facilities and staff of
each Small Business Development Center shall be located in such places as to provide maximum accessibility 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 authority to make expenditures under the center’s budget
and who shall manage the program activities;’’ for ‘‘including a staff director to manage the program activities.’’
Subsec. (e). Pub. L. 98–395, § 2(6), substituted provisions authorizing the National Science Foundation to
cooperate with the Administration and with Small
Business Development Centers in developing and establishing programs to support the centers, for former provisions which related to the National Science Foundation 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’’.
Subsec. (i)(1). Pub. L. 98–395, § 2(8), substituted
‘‘shall’’ for ‘‘may’’.
Subsec. (j). Pub. L. 98–395, § 2(9), substituted provisions 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 evaluation plans and their submission to Congressional committees.
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 Fairness note under section 601 of Title 5, Government Organization 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 performance commencing on or after October 1, 1991. Contracts, grants, or cooperative agreements the performance 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-

Page 904

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 section [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 Amendment 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 section 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 proposed regulations for the Small Business Development
Center Program authorized by this section.
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 education, 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 Organization 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,
§ 609(e), Oct. 28, 1991, 105 Stat. 826

title

VI,

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