R47953 — Small Business Administration Reauthorization: Issues for Congress

In recent years the idea of reauthorizing the Small Business Administration (SBA) has gained increased attention, both from some Members of Congress as well as outside groups. Congress has not passed legislation reauthorizing SBA since 2004 despite recent attempts to do so, including in the 116th and 117th Congresses. For example, late in the 117th Congress, then-chair of the Senate Committee on Small Business and Entrepreneurship, Senator Benjamin Cardin, introduced the Small Business Administration Reauthorization and Modernization Act of 2022 (S. 5220). Congress also regularly passes individual laws changing aspects of certain SBA programs. Congress has permanently authorized SBA and the majority of the agency’s programs. As a result, SBA and most of its programs do not require reauthorization to continue operating. However, reauthorization can provide Congress the opportunity to address certain policy issues related to SBA and small businesses, alter aspects of SBA program operations, and update authorizations of appropriations, many of which are expired for various non-permanent SBA programs. If reauthorizing SBA, Congress may choose to address the following issues: Administration and oversight of SBA’s COVID-19 pandemic relief programs. Congress appropriated over $1 trillion in FY2020 and FY2021 for these programs, including the Paycheck Protection Program (PPP) and COVID Economic Injury Disaster Loans (EIDLs). SBA’s Office of Inspector General recently noted that “managing COVID-19 stimulus lending is the greatest overall challenge facing SBA, and it may likely continue to be for many years.” Effectiveness of SBA’s technical assistance programs. SBA has provided relatively few outcome-based metrics for its technical assistance programs, though it has expanded collection of this information. Congress has expressed interest in the potential duplication of services among SBA’s various technical assistance programs, as well as in increased levels of grant assistance for services providers. Data and reporting on federal contracts with small businesses. SBA’s annual Procurement Scorecard provides data on contract and subcontract dollars from certain federal agencies and departments awarded to small businesses. However, the data exclude some contracts and subcontracts and cannot be disaggregated and readily analyzed by such variables as location or contracting preference. SBA assistance to disadvantaged entrepreneurs. SBA has a long history of providing disadvantaged entrepreneurs with targeted assistance. Congress could consider whether SBA’s current programs meet the needs of disadvantaged entrepreneurs. Status of the Community Advantage (CA) Pilot Program. In 2011, SBA created the CA pilot—a subprogram within the 7(a) loan guarantee program aimed at small businesses in underserved markets—using its authority to create temporary pilot programs. Congress has not permanently authorized the program, but legislation providing such permanent authorization was introduced in the 116th, 117th, and 118th Congresses.

Curated by CRS — every bill listed in this report's relatedMaterials. Edge type cited_in_report, gold confidence.

• HR 5367 — Small Business Development Centers Improvement Act of 2023 · 118th Cong
• HR 4670 — Small Business Contracting Transparency Act of 2023 · 118th Cong
• S 2482 — Community Advantage Loan Program Act of 2023 · 118th Cong
• S 2185 — Small Business Development Centers Improvement Act of 2023 · 118th Cong
• S 2184 — Women’s Business Centers Improvement Act of 2023 · 118th Cong
• HR 399 — Small Business Advocacy Improvements Act of 2023 · 118th Cong
• HR 358 — Small Business Regulatory Flexibility Improvements Act · 118th Cong
• HR 2617 — Consolidated Appropriations Act, 2023 · 117th Cong