Small Business Territories Support Act
- Sponsor
- Rep. Velázquez, Nydia M. [D-NY-7]
- Committees
- Small Business Committee (primary)
- Last action
- Apr 27, 2026
Bottom line
The bill creates a dedicated SBA office to provide tailored support and improved access to federal programs for small businesses in U.S. territories.
What it actually does
This bill amends the Small Business Act to establish a new Office of Territorial Affairs within the Small Business Administration (SBA). This office would be dedicated to supporting small businesses in U.S. territories by tailoring SBA programs related to entrepreneurial development, contracting, disaster assistance, and capital access to their specific needs. It also mandates the appointment of an Assistant Administrator with expertise in territorial affairs and requires annual reporting to Congress on the office's activities.
Proponents argue
Supporters argue that a dedicated Office of Territorial Affairs is essential to address the unique economic, logistical, and regulatory challenges faced by small businesses in U.S. territories. They contend that a tailored approach, led by an expert Assistant Administrator, will ensure SBA programs are more effective and accessible, fostering economic growth and resilience in these often-underserved regions.
Opponents contend
Critics might argue that establishing a new federal office could add unnecessary bureaucracy and administrative costs to the SBA. They may suggest that existing SBA structures, perhaps with enhanced directives or resource reallocation, could achieve similar goals without creating a new administrative layer, potentially questioning the efficiency of a new office versus strengthening current district operations.
The bill is short and clearly written, making it highly accessible for any reader to understand its core provisions quickly.
Section 2, amending the Small Business Act
Establishment of Office of Territorial Affairs
This provision amends the Small Business Act by adding a new section 49, which establishes an Office of Territorial Affairs within the Small Business Administration (SBA). The Office is tasked with building relationships with small businesses in U.S. territories and specifically targeting SBA programs related to entrepreneurial development, contracting, disaster assistance, and capital access to meet their unique needs.
Supporters argue
Supporters argue that a dedicated office is crucial to address the distinct economic conditions, governmental affairs, and political relationships that differentiate small businesses in U.S. territories from those on the mainland. This ensures SBA programs are effectively tailored and accessible, fostering economic growth and resilience in these regions.
Critics contend
Critics might argue that establishing a new office adds unnecessary bureaucracy and cost to the SBA, suggesting that existing mechanisms or reallocating resources within current structures could achieve similar goals without creating a new administrative layer.
Tradeoffs
This provision balances the need for specialized support for territorial small businesses against potential concerns about administrative overhead and the efficiency of creating new federal offices. It aims to provide targeted assistance while potentially adding to the SBA's operational budget.
Section 2(b) of the new Section 49
Duties and Qualifications of the Assistant Administrator
This provision outlines the responsibilities and required qualifications for the Assistant Administrator who will lead the Office of Territorial Affairs. The Assistant Administrator must have specific knowledge of territorial governmental affairs, socioeconomic conditions, and political relationships, along with experience in providing tailored small business development assistance. Duties include policy formulation, serving as a liaison, reviewing SBA programs for territorial adequacy, and hosting outreach events.
Section 2(c) of the new Section 49
Annual Report to Congress
This provision mandates that the Assistant Administrator submit an annual report to the House and Senate Small Business Committees. The report must detail the Office's operational activities, summarize its work, provide the total number of small businesses assisted (disaggregated by type of assistance and territory), and, to the extent practicable, the total number of new businesses established as a result of the Office's assistance. It also requires recommendations for improving SBA services in the territories.
This subsection explicitly defines the term 'territories' to include Puerto Rico, Guam, American Samoa, United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.
Section 2(d)(3) of the new Section 49
Why it matters:Standard legislative practice to define terms at the end of a section to ensure clarity and avoid repetition within the main text.
Case for: Clearly delineates the specific geographic scope of the Office's mandate, preventing ambiguity and ensuring resources are directed to the intended regions without confusion.
Case against: No specific case against, as it serves a clarifying and necessary function for the bill's implementation.
Estimated impact: Ensures the Office's efforts are precisely targeted to these five U.S. territories, excluding any other potential insular areas not explicitly listed.