Federal Coordination to Expand Rural Entrepreneurship

Summary#

This bill, the GREATER Act, requires the Small Business Administration (SBA), the Appalachian Regional Commission (ARC), and the Delta Regional Authority (DRA) to make a formal agreement to coordinate programs that expand rural entrepreneurship in the Appalachian and Delta regions. The agreement must start within 120 days of the law and the agencies must report to Congress within two years on what they did and how many businesses were helped. The broad goal is more coordinated federal support for rural small businesses in those two regions.

Key changes:

• Must enter an agreement: SBA, ARC, and DRA must sign a memorandum of understanding or other agreement within 120 days of enactment.
• Coordinate activities: The agencies must coordinate activities to expand rural entrepreneurship and support small businesses in the Appalachian and Delta regions.
• Include covered small businesses: The agencies must ensure inclusion of small businesses located in those regions.
• Allow reimbursable agreements and collaboration: The agencies may use reimbursable agreements and work with other federal agencies.
• Report to Congress: Within two years the agencies must report on coordination, number of entrepreneurs helped, opportunities to expand assistance, future collaboration areas, and plans to continue coordination.
• Definitions: The bill defines covered small business concerns as SBA-defined small businesses located in the Appalachian or Delta regions.

What it means for you#

• Rural entrepreneurs and small businesses in the Appalachian and Delta regions:

  • You could see more coordinated federal programs, outreach, or services aimed at starting and growing businesses.
  • The bill does not specify particular grants, loans, or new programs. It directs agencies to coordinate existing or new activities.
  • A report to Congress in two years will list how many businesses were helped.

• Local and regional economic development organizations:

  • You may be invited to participate in coordinated efforts or reimbursable agreements with these federal agencies.
  • The bill allows the agencies to form cost-sharing (reimbursable) arrangements with partners.

• Small Business Administration, ARC, and DRA (the agencies):

  • They must complete an agreement within 120 days and carry out coordination activities.
  • They may need to set up reimbursable agreements and work with other federal agencies.

• Other federal agencies and Congress:

  • Other agencies may be asked to collaborate.
  • Congress will receive a joint report after two years describing actions and outcomes.

• People outside the Appalachian or Delta regions:

  • The bill does not apply to them. It targets only businesses physically located in the defined Appalachian and Delta regions.

What is unclear:

• The bill does not name specific programs, amounts of funding, or new services. It focuses on coordination.
• It does not authorize or appropriate specific money.

Expenses#

No publicly available information.

• The bill does not include a fiscal note or specify new funding.
• The agencies may incur administrative costs to draft and implement the agreement and to prepare the required report.
• Reimbursable agreements could shift costs to partner agencies or nonfederal entities rather than require new appropriations.
• It is unclear whether Congress would provide additional funding for new or expanded activities described in the agreement.

Proponents' View#

• The bill appears intended to increase and better coordinate federal support for rural entrepreneurs in the Appalachian and Delta regions.
• A possible argument for the bill is that joint planning among SBA, ARC, and DRA could reduce overlap and make assistance easier for small businesses to find and use.
• The required report could improve transparency by showing how many entrepreneurs were helped and identifying opportunities to expand assistance.
• Allowing reimbursable agreements may let the agencies pool resources or cooperate with state and local partners more quickly.

Opponents' View#

• One concern is that the bill does not provide specific funding. It requires coordination but does not authorize money for new programs, so results may be limited without additional appropriations.
• The bill is broad and does not list specific program actions, performance targets, or timelines beyond the agreement and the two-year report. That may make it hard to judge effectiveness.
• Another concern is potential duplication with existing federal, state, or nonprofit efforts; the bill does not explain how it will avoid repeating current programs.
• Administrative burdens could fall on the agencies and on local partners if they must set up reimbursable agreements or new cooperative processes without clear resource commitments.