BC Small Business Development Center (SBDC) Texas Gulf Coast Network

Congressional interest in small business access to capital has increased in recent years because of concerns that small businesses might be prevented from accessing sufficient capital to enable them to start, continue, or expand operations and create jobs. Chapter 1 focuses on the Small Business Lending Fund (SBLF). It opens with a discussion of the supply and demand for small business loans then examines other arguments presented both for and against the program. Chapter 2 discusses how SBA monitors lenders' compliance with the credit elsewhere requirement, the extent to which SBA evaluates trends in lender credit elsewhere practices, and lenders' views on the credit elsewhere criteria for 7(a) loans. Chapter 3 examines the State Small Business Credit Initiative (SSBCI) and its implementation, including Treasury's response to initial program audits conducted by the U.S. Government Accountability Office (GAO) and Treasury's Office of Inspector General (OIG). Chapter 4 discusses small business startups' experiences with the SBA's management and technical assistance training programs, focusing on Small Business Development Centers (SBDCs), Women Business Centers (WBCs), and SCORE (formerly the Service Corps of Retired Executives); the SBA's 7(a), 504/CDC, and Microloan lending programs; and the SBA's Small Business Investment Company (SBIC) venture capital program. Chapter 5 examines small business startups' experiences with the SBA's management and technical assistance training programs, focusing on Small Business Development Centers (SBDCs), Women Business Centers (WBCs), and SCORE (formerly the Service Corps of Retired Executives); the SBA's 7(a), 504/CDC, and Microloan lending programs; and the SBA's Small Business Investment Company (SBIC) venture capital program. Chapter 6 provides an overview of the federal government's various small business mentor-protégé programs.

Congress has broad authority to impose requirements upon the federal procurement process, that is, the process whereby agencies obtain goods and services from the private sector. One way in which Congress has exercised this authority is by adopting measures to promote contracting and subcontracting between "small businesses" and federal agencies. Chapter 1 describes the various federal programs, requirements, procurement officers, and procurement offices involved in promoting federal contracting and subcontracting with small businesses, small disadvantaged businesses (SDBs), SDBs participating the SBA's "8(a) Program," Historically Underutilized Business Zone (HUBZone) small businesses, women-owned small businesses (WOSBs), and service-disabled veteran-owned small businesses (SDVOSBs). Chapter 2 discusses the extent to which selected federal agencies demonstrated compliance with thirteen section 15(k) requirements for OSDBUs and SBPAC review process results. Chapter 3 examines what contracting officers consider when assigning NAICS codes to federal contracts and the status of efforts to clarify code assignment and industry views on NAICS code assignment and the number and outcomes of appeals. Chapter 4 reports on SBA's development of criteria and guidance on using a risk-based approach for certifying and recertifying HUBZone firms, and SBA's implementation of the revised policies and procedures for firms located in Puerto Rico. Chapter 5 examines the extent to which SBA and the participating agencies have implemented these benchmarks, including assessing businesses against them and establishing the consequence of not meeting them. The federal tax burden on small firms and its effects on their formation and growth have long been matters of legislative concern for Congress. This abiding interest has helped pave the way for the enactment of a series of tax laws in recent years that included targeted tax relief for a number of small businesses as discussed in chapter 6.