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U.S. Code as of:
01/19/04
Section 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 State-chartered
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) 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 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 programs of particular utility for
small businesses.
(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 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 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) of this
section.
(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.
(vi) Exclusions. - Grants provided to a State by the
Administration or another Federal agency to carry out
subsection (a)(6) or (c)(3)(G) of this section, 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 is authorized
to be appropriated to carry out this subparagraph $125,000,000
for each of fiscal years 2001, 2002, and 2003.
(viii) 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.
(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) of this section. 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.
(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) of this section 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) 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) of this section, 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.
(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
increased productivity, and management improvement, and for
decreasing industry economic concentrations.
(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;
(D) access to information specialist to assist in providing
information searches and referrals to small business;
(E) access to part-time professional specialist to conduct
research or to provide counseling assistance whenever the need
arises; and
(F) access to laboratory and adaptive engineering facilities.
(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 university-based 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
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.
(H) maintaining current information concerning Federal, State,
and local regulations that affect small businesses and counsel
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;
(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) of the Small
Business Regulatory Enforcement Fairness Act of 1996;
(S) providing small business owners with access to a wide
variety of export-related information 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, 2003.
(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) of this section,
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) of this section to such center or the date
the Administration notifies the grantee funded under subsection
(a)(1) of this section that funds are available for grant
applications pursuant to subsection (a)(6) of this section,
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) of this section. Any
such applicants shall comply with the matching funds requirement of
paragraph (4) of subsection (a) of this section. 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) of
this section.
(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 (!3) 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) of this section 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
(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 Development 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, 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) of this section 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 one-third 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.
(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 certification
(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) Certification
The Administration may provide financial support, by contract
or otherwise, to the association authorized by subsection
(a)(3)(A) of this section for the purpose of developing a small
business development center certification 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 certification program
conducted pursuant to paragraphs (1) and (2).
(B) Certification 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 certification program conducted pursuant to this
subsection, except that the Associate Administrator for Small
Business Development Centers may waive such certification
requirement, in the discretion of the Associate Administrator,
upon a showing that the center is making a good faith effort to
obtain certification.
(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 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
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.
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