Women’s Business Centers Improvement Act of 2026
- Sponsor
- Rep. Scholten, Hillary J. [D-MI-3]
- Committees
- Small Business Committee (primary)
- Last action
- Jul 21, 2026
Bottom line
This bill modernizes and strengthens the federal program supporting women's business centers by updating grant structures, enhancing oversight, and ensuring long-term stability and effectiveness for women entrepreneurs.
What it actually does
This bill comprehensively amends Section 29 of the Small Business Act, overhauling the Women's Business Center Program. It establishes new definitions, grant structures with 5-year terms and inflation adjustments, revised matching requirements with waiver authority, and formalizes the Office of Women's Business Ownership with a new accreditation program for centers. The bill also mandates enhanced annual reporting and authorizes significant appropriations for the program.
Proponents argue
Supporters argue that the bill provides much-needed updates to a vital program, ensuring women entrepreneurs, especially those who are socially and economically disadvantaged, receive consistent and high-quality entrepreneurial support. The increased funding, longer grant terms, and formal accreditation process will enhance program stability, accountability, and reach, ultimately fostering greater economic empowerment for women.
Opponents contend
Potential opponents might raise concerns about the increased federal spending authorized by the bill, the potential for administrative burden on Women's Business Centers with new accreditation and reporting requirements, or argue that the program could be more efficiently run through other existing small business support mechanisms.
The bill is moderately detailed but accessible, allowing an informed reader to understand its core provisions within a reasonable timeframe.
Section 2, amending Section 29 of the Small Business Act.
Overhaul of Women's Business Center Program
This section completely rewrites the existing legal framework for Women's Business Centers (WBCs), establishing new definitions for eligible entities, resource partners, and WBCs themselves. It outlines the authority for the Administrator to enter cooperative agreements for grants and details the required entrepreneurial counseling and training services WBCs must provide, with a specific focus on socially and economically disadvantaged women.
Supporters argue
Supporters argue this comprehensive rewrite modernizes the program, clarifies its mission, and ensures a consistent standard of service delivery across all centers, particularly emphasizing support for disadvantaged women entrepreneurs.
Critics contend
No specific opposition is typically raised against the general concept of supporting women's business centers, but some might argue for different program structures or funding priorities.
Tradeoffs
Balancing broad program flexibility with specific service requirements to ensure quality and address diverse needs.
Section 2, new Section 29(b)(3) of the Small Business Act.
5-Year Initial and Continuation Grants
The bill establishes a new grant structure, offering initial grants for a 5-year term, not exceeding $300,000 annually (inflation-adjusted). It also allows for unlimited 5-year continuation grants of the same amount, providing long-term stability for successful centers.
Section 2, new Section 29(e) of the Small Business Act.
Revised Matching Funds and Waiver Authority
This provision updates the non-Federal matching requirements: 1 non-Federal dollar for every 2 Federal dollars in the first two years of an initial grant, and 1-to-1 thereafter. It also allows up to half of matching funds to be in-kind contributions and grants the Administrator waiver authority for the non-Federal share under certain conditions, considering economic conditions and demonstrated ability to obtain funds.
Section 2, new Section 29(k) of the Small Business Act.
Formalization of Office of Women's Business Ownership and Accreditation Program
This section formally establishes the Office of Women's Business Ownership within the SBA, led by an Assistant Administrator (a Senior Executive Service position), with a clear mission to support women entrepreneurs. Crucially, it mandates the establishment of an accreditation program for eligible entities receiving grants, with accreditation becoming a requirement for continuation grants after two years.
Section 2, new Section 29(m) of the Small Business Act.
Enhanced Annual Reporting Requirements
This provision mandates a detailed annual report to Congress on the effectiveness of WBCs. The report must include extensive data on participants (demographics, veteran status), services provided (counseling hours), outcomes (new businesses, jobs created/retained, capital secured), and financial assistance received, along with revenue changes and satisfaction surveys.
Section 2, new Section 29(n) of the Small Business Act.
Increased Program Funding and Management Allocation
The bill authorizes $31,500,000 to be appropriated for the WBC program for each of fiscal years 2026 through 2029, to remain available until expended. It specifies that most of these funds are for grant awards, with a small percentage (2.65% in FY26, then 2.5%) allocated for SBA's management and administration costs. It also sets aside at least $500,000 for accreditation and the annual conference.
Requires the Administrator to recognize and consult with a majority Women's Business Center Association (if one exists) on the development of program documents, including the annual scope of activities, requests for proposals, and governing operations and administration.
Section 2, new Section 29(f)(5) of the Small Business Act.
Why it matters:This is standard legislative practice to include specific administrative guidance or stakeholder engagement requirements within broader program rules, ensuring that operational details are covered without being the main focus.
Case for: Proponents would argue this ensures direct input from experienced WBC operators, leading to more practical and effective program policies and reducing potential disconnects between federal administration and on-the-ground realities.
Case against: Critics might argue it could give undue influence to a specific association, potentially limiting the Administrator's flexibility or disadvantaging centers not affiliated with the recognized association.
Estimated impact: Enhances stakeholder engagement in program policy development, potentially improving program design and implementation.
After a 2-year period, accreditation becomes a requirement for continuation grants, but the Assistant Administrator for the Office of Women's Business Ownership may waive this requirement upon a showing of 'good faith effort to obtain accreditation.'
Section 2, new Section 29(g)(3) of the Small Business Act.
Why it matters:It is standard practice to include flexibility clauses for new requirements to ease transition and prevent unintended disruptions, especially for programs with diverse participants.
Case for: Proponents would argue this waiver provides necessary flexibility for centers that are genuinely working towards accreditation but face unforeseen delays or challenges, preventing arbitrary loss of funding and ensuring continuity of services.
Case against: Critics might argue that a broad waiver authority could undermine the integrity and effectiveness of the accreditation program, potentially allowing centers that are not truly meeting standards to continue receiving funds.
Estimated impact: Provides a safety net for Women's Business Centers during the transition to accreditation, potentially affecting the rigor of the accreditation requirement.