SBDC Program Reforms

Full Title:
Small Business Development Centers Improvement Act of 2026

Summary#

This bill makes several changes to the Small Business Development Center (SBDC) Program and related entrepreneurial development programs run by the Small Business Administration (SBA). Major goals are to tighten how the SBA runs or starts entrepreneurial programs, improve data collection and reporting, allow limited marketing and fee income for local centers, and set funding and administrative limits. The bill also narrows who can receive new grants under the SBDC formula program.

Key changes:

  • Requires the SBA to deliver certain entrepreneurial services only through programs that already existed when the bill is enacted, and bans the agency from creating new such programs without an act of Congress (with a tribal-business exception). The SBA must notify Congress before providing those services.
  • Creates a Data Collection Working Group to recommend better data systems for SBDCs, Women’s Business Centers, and SCORE chapters and requires a report within 180 days.
  • Allows grant recipients to use up to 10% of their SBA grant to market their services and permits SBDCs to collect fees from private partnerships in which the SBA also participates.
  • Limits new awards under the SBDC formula program so that only entities that had an SBA grant, contract, or cooperative agreement before enactment (or institutions of higher education) may receive new awards or renewals.
  • Requires annual, detailed reporting on SBDC activities and outcomes (hours of counseling, participant demographics, jobs created/retained if practicable, capital accessed, referrals, satisfaction survey results, and recommendations).
  • Sets funding details: authorizes $175,000,000 per year for formula grants for fiscal years 2026–2029 and caps certain administrative uses (including up to $600,000 for accreditation-related expenses).

What it means for you#

  • Small business owners and entrepreneurs

    • SBDCs will be required to report more information about services, participants, and outcomes. This could make program activity more visible but does not, on its face, change eligibility for services.
    • Centers may spend up to 10% of their grant to advertise their services locally, which could increase awareness of available help.

  • Small Business Development Centers, Women’s Business Centers, and SCORE chapters

    • Must work with a new Data Collection Working Group to recommend better data systems and submit recommendations to Congress within 180 days.
    • SBDCs may collect fees from private partnerships or cosponsored activities if the SBA participates.
    • Some entities that have not previously received an SBA grant, contract, or cooperative agreement may no longer be eligible to receive new grants under the SBDC formula program (institutions of higher education are excepted). Existing grantees can seek renewals.

  • State grant programs and organizations that administer formula grants

    • The bill specifies $175 million per year for formula grants for FY2026–FY2029 (an authorization level). It also changes certain reserve and per-state cap amounts used in grant distribution formulas.

  • SBA administrators and staff

    • Must include detailed lists of programs, operating documents, award recipients and amounts, and responsible officials in the SBA’s annual entrepreneurial development report.
    • Must notify Congress before providing the covered entrepreneurial activities described in the bill.
    • The Associate Administrator for SBDCs must market the SBDC Program to other federal programs.

  • Institutions of higher education

    • Explicitly remain eligible to receive new SBDC grants even if they did not previously hold one.

  • Tribal-owned small businesses

    • The restriction on how the SBA provides covered activities does not apply to assistance for small businesses owned by Indian tribes.

Expenses#

The bill specifies some funding levels but does not include a full government cost estimate in the text provided.

  • Estimated public funding authorized: $175,000,000 per year for formula grants for fiscal years 2026 through 2029 (this is an authorization, which allows but does not itself appropriate funds).
  • Administrative caps and changes:
    • Up to $600,000 of annual funds may be used by the SBA to pay certain accreditation-related expenses.
    • The bill changes reserve language to “not more than $2,000,000” and raises a per-item cap from $100,000 to $200,000 in one clause.
  • Other potential costs or savings:
    • Implementing the new annual SBDC report and the Data Collection Working Group’s recommended systems could create administrative and technology costs for the SBA and for centers, but the bill does not give an overall cost estimate.
    • Allowing grantees to spend up to 10% of grant funds on marketing changes how grants are spent but does not itself require additional federal spending.
    • Permitting SBDCs to collect fees from private partnerships could increase non-federal income to centers.
  • No comprehensive fiscal note or overall budget estimate is provided in the bill text.

If you need a full budgetary impact, no publicly available cost estimate is included in the bill material.

Proponents' View#

  • The bill appears intended to increase transparency and oversight of SBA entrepreneurial programs by requiring clear reporting on programs, awards, operating documents, and responsible officials.
  • It seeks to improve data quality for SBDCs, Women’s Business Centers, and SCORE by creating a working group to recommend and design better data systems and collection methods.
  • Allowing up to 10% of grant funds for marketing could increase public awareness of counseling and training services, potentially reaching more small businesses.
  • Letting SBDCs collect fees from private partnerships may help centers generate additional income, supporting operations or program expansion.
  • The limits on creating new programs without congressional authorization could be seen as preserving congressional control over adding new federal entrepreneurial programs and preventing program duplication.

Opponents' View#

  • One concern is that the limitation on awarding grants (restricting awards to entities that already had SBA grants or contracts before enactment, except colleges/universities) effectively freezes the pool of eligible new grantees and may block new or alternative providers from entering the program.
  • Requiring the SBA to deliver covered activities only through pre-existing programs and banning new programs without an Act of Congress could limit the agency’s flexibility to pilot or adapt new services to changing needs.
  • Expanding permitted disclosures about who received assistance (including email addresses and the nature of assistance) to other agencies or third parties could raise privacy concerns for clients unless safeguards are clarified.
  • Letting recipients use up to 10% of grant funds for marketing may divert federal dollars away from direct counseling or training services.
  • The bill does not include a full fiscal estimate for the reporting and data-system changes it requires; implementing improved data systems could impose significant costs and administrative burdens on centers and the SBA that are not quantified in the text.
  • Automatic approval of contracts if the Associate Administrator does not decide within 10 days may create procedural or oversight risks if decisions happen before sufficient review.