Bill Overview
Title: Small Business Development Centers Improvement Act of 2022
Description: This bill reauthorizes the Small Business Development Center Program through FY2026 and otherwise revises the program. Specifically, the bill (1) generally prohibits entities other than institutions of higher education from receiving new grants under the program; (2) allows centers to collect fees related to private partnerships or cosponsorships; (3) authorizes centers to market their services directly to small businesses; and (4) modifies or establishes provisions related to program funding, operations, data collection, and reporting.
Sponsors: Sen. Cardin, Benjamin L. [D-MD]
Target Audience
Population: Small business owners worldwide
Estimated Size: 33000000
- The bill reauthorizes the Small Business Development Center Program through FY2026, indicating a direct impact on small businesses which are the primary beneficiaries of this program.
- There are approximately 33 million small businesses in the US, according to the Small Business Administration (SBA).
- Entities such as institutions of higher education that facilitate the Small Business Development Centers (SBDCs) will be impacted as the bill specifies they are the primary eligible entities for new grants.
- The centers themselves will be impacted by the allowed changes in funding avenues like collecting fees through partnerships and direct marketing to small businesses.
Reasoning
- The majority of small businesses in the United States operate with limited resources and could significantly benefit from increased access to support and funding opportunities.
- The emphasis on funding through higher education institutions targets organized bodies already engaged in economic development, likely improving efficiency and resource allocation.
- The stipulations related to marketing and private partnerships could enhance outreach and service quality for small businesses, although actual uptake will depend on the centers' capacities and business needs.
- While the policy has a broad potential impact, its direct benefits will predominantly reach small business owners who choose to engage with SBDCs or are targeted by their new marketing strategies.
- The policy's limited budget suggests that while potential reach is wide, not all small businesses will experience noticeable changes, highlighting the importance of tracking the efficacy and distribution of resources.
Simulated Interviews
Small Business Owner (Austin, Texas)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- I think this policy could really help small businesses like mine, especially if the centers get more funding and can offer more resources.
- Marketing directly to businesses sounds great, but I hope it means more personalized support and not just ads.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
University Professor (Boston, Massachusetts)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- I'm optimistic about this policy because it strengthens ties between higher education and the business community, which is essential for innovation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Director of Local SBDC (Lincoln, Nebraska)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 1/20
Statement of Opinion:
- This could really enhance our operations and reach more small businesses in need of support.
- I'm concerned about managing the increased workload without proportionate increases in staffing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Retail Store Owner (Chicago, Illinois)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I haven't used SBDC services yet, but if they become more visible, I might check them out. I think any support is valuable when you're new.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Farmer (Rural Mississippi)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Any extension of support to small businesses is good, but I'm not sure how relevant it will be for someone in agriculture.
- The policy could provide more awareness of resources that I might consider using.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Freelance Graphic Designer (New York, New York)
Age: 41 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- This seems geared more towards larger 'small businesses' with a more traditional setup. I'm not sure if it applies to freelancers like myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Non-Profit Manager (Los Angeles, California)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- More funding and options mean more collaboration opportunities for us. Could really scale our impact in the community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Small Business Consultant (Orlando, Florida)
Age: 47 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Great for my clients if SBDCs expand their services and become more available.
- It could give small businesses a holistic range of resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Tech Entrepreneur (Seattle, Washington)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I haven't considered SBDC services before, but if they are promoted more, I might look into it for some of my smaller ventures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Owner of a Local Coffee Shop (Phoenix, Arizona)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- More marketing and resources can attract more business owners like me to use their services.
- This should help keep my business competitive with larger chains.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $55000000 (Low: $50000000, High: $60000000)
Year 2: $56000000 (Low: $51000000, High: $61000000)
Year 3: $57000000 (Low: $52000000, High: $62000000)
Year 5: $59000000 (Low: $54000000, High: $64000000)
Year 10: $65000000 (Low: $60000000, High: $70000000)
Year 100: $100000000 (Low: $90000000, High: $110000000)
Key Considerations
- The economic impact greatly depends on the effectiveness of SBDCs to utilize new marketing and funding avenues.
- Funding allocated from federal budgets may offset costs, but operational efficiencies are crucial.
- Private partnerships and new revenue streams could reduce dependency on current funding sources.