Coordinated Support for Rural Small Businesses Act

Bill Number: S. 1093
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Commerce
Status: Introduced
Latest Action: 2025-04-01: Placed on Senate Legislative Calendar under General Orders. Calendar No. 37.
Last Updated: 2025-07-01T11:06:18Z

AI-Generated Summary

Purpose of the Legislation

The "Coordinated Support for Rural Small Businesses Act" (S. 1093) aims to strengthen the Office of Rural Affairs within the Small Business Administration (SBA). It focuses on improving support for small businesses in rural areas by enhancing the office's leadership, duties, outreach efforts, and coordination with other federal agencies, particularly the Department of Agriculture (USDA). The goal is to better address the unique challenges faced by rural small businesses, such as access to capital, innovation, and federal programs.

Key Provisions

Leadership Structure: The Office will be led by an Assistant Administrator appointed by the SBA Administrator. This role is designated as a Senior Executive Service (SES) position, which is a high-level federal executive role requiring expertise and non-partisan service (a "noncareer appointee" means the position is filled based on qualifications rather than political affiliation).
Duties of the Office:
Advocate for rural small businesses (defined as small businesses located in rural areas) within the SBA and other federal agencies.
Provide policy recommendations to improve federal programs for rural businesses.
Coordinate with the National Travel and Tourism Office in the Department of Commerce to promote rural tourism and business opportunities.
Host outreach events to educate rural businesses about SBA and federal resources.
Outreach Requirements: The Assistant Administrator must organize events across U.S. regions, inviting SBA district offices, resource partners (like local business advisors), federal and state agencies, and other stakeholders to participate.
Interagency Cooperation with USDA:
Conduct joint outreach to raise awareness of SBA and USDA programs.
Form working groups to tackle issues like:
Capital access (e.g., loans and investments), including overlaps between SBA and USDA programs, coordination on disaster aid, and support for cooperatives (businesses owned and operated by members, like farmer groups).
Assistance for rural businesses, such as aligning rural market definitions, promoting innovation, supporting Native American initiatives, and aiding with exports and government contracts.
Reporting and Transparency:
The SBA must notify Congress within 7 days of any changes or new agreements (memorandums of understanding, or MOUs) with the USDA.
Submit an annual public report to Congress within 180 days of enactment and yearly thereafter, covering office operations, activities, outreach events, lending analysis, and interagency efforts.
Definitions: Clarifies terms like "appropriate congressional committees" (Senate and House committees on small business and agriculture) and "Department" (referring to USDA).

Significant Changes to Existing Law

This bill amends Section 26 of the Small Business Act (15 U.S.C. 653), which established the Office of Rural Affairs:

Elevates the Assistant Administrator role to a formal SES position, ensuring dedicated, expert leadership (previously less specified).
Updates language for clarity, such as replacing "small business concerns located in rural areas" with "rural small business concerns."
Expands duties to include mandatory outreach events and deeper coordination with USDA, including specific working groups on capital and business support—areas not previously detailed.
Adds new requirements for congressional notifications on USDA agreements and annual detailed reports, increasing accountability.
Modernizes references, like updating the tourism office name from the outdated "United States Tourism and Travel Administration."

Potential Impacts

On Government Agencies: Enhances collaboration between the SBA and USDA, potentially reducing program overlaps and improving efficiency in delivering services to rural areas. This could lead to more joint initiatives, like shared lending or disaster response, but may require additional staff or resources for outreach and reporting.
On Citizens and Businesses: Rural small business owners gain better access to federal loans, technical assistance, and information on programs, which could boost economic growth, innovation, and job creation in underserved areas. Native American communities and cooperatives may see targeted support for exports and procurement (government purchasing).
On International Relations: Minimal direct impact, though improved rural export assistance could indirectly strengthen U.S. trade competitiveness in agriculture and tourism.

Main Stakeholders Affected

Rural Small Businesses: Primary beneficiaries, including owners in non-urban areas seeking loans, advice, and federal program access.
Small Business Administration (SBA): Must implement new leadership, outreach, and reporting, affecting its district offices and resource partners (e.g., local advisors).
Department of Agriculture (USDA): Gains a formal partner for coordination on rural programs, potentially streamlining services for farmers and cooperatives.
Congressional Committees: Receive notifications and reports, enabling oversight of rural business support.
Other Groups: State agencies, rural lenders, Native American organizations, and tourism stakeholders involved in outreach events.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens administrative processes within the SBA without creating new entitlements or funding; relies on existing budgets. The SES designation ensures merit-based appointments, aligning with federal civil service laws (Title 5, U.S. Code).
Constitutional: No major issues; it supports Congress's authority under the Commerce Clause to regulate interstate business and promote economic welfare, particularly in rural economies.
Political: Promotes bipartisan rural development (introduced by Senators Shaheen and Kennedy), potentially appealing to agricultural states. Annual reports could increase transparency and accountability, influencing future funding debates, but adds minor bureaucratic requirements without overriding executive discretion.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Shaheen, Jeanne [D-NH]

Cosponsors (1)

Sen. Kennedy, John [R-LA]

Recent Actions

2025-04-01: Placed on Senate Legislative Calendar under General Orders. Calendar No. 37.
2025-04-01: Committee on Small Business and Entrepreneurship. Reported by Senator Ernst without amendment. Without written report.
2025-04-01: Committee on Small Business and Entrepreneurship. Reported by Senator Ernst without amendment. Without written report.
2025-03-27: Committee on Small Business and Entrepreneurship. Ordered to be reported without amendment favorably.
2025-03-24: Read twice and referred to the Committee on Small Business and Entrepreneurship.
2025-03-24: Introduced in Senate

Bill Versions

Coordinated Support for Rural Small Businesses Act — issued 2025-03-24 — PDF (9 pages)
Coordinated Support for Rural Small Businesses Act — issued 2025-04-01 — PDF (10 pages)