PolicyBrief
H.R. 1642
119th CongressJun 3rd 2025
Connecting Small Businesses with Career and Technical Education Graduates Act of 2025
HOUSE PASSED

This bill mandates that Small Business Development Centers and Women's Business Centers actively connect small businesses with graduates and resources from Career and Technical Education programs.

Roger Williams
R

Roger Williams

Representative

TX-25

PartyTotal VotesYesNoDid Not Vote
Republican
219201513
Democrat
212195017
LEGISLATION

Small Business Centers Must Now Connect Grads from Trade Schools to Jobs and Entrepreneurship

If you’re running a small business and struggling to find skilled labor—think electricians, welders, or specialized healthcare techs—or if you’re a recent graduate from a trade school trying to find that first job, this bill is aiming to bridge that gap. The Connecting Small Businesses with Career and Technical Education Graduates Act of 2025 is essentially updating the playbook for federal small business support centers, requiring them to become matchmakers for the skilled trades.

The New Job Description for SBDCs

This legislation adds specific, new duties to the Small Business Development Centers (SBDCs) and Women's Business Centers (WBCs). Think of these centers as the local hubs that offer free or low-cost counseling to entrepreneurs. Previously, their focus was mostly on business plans, financing, and marketing. Now, they’re being tasked with becoming workforce connectors. The bill starts by locking in a formal definition of “career and technical education” (CTE) by referencing the existing standard in the Carl D. Perkins Act, which is a good move for clarity.

Under the new rules in Section 2, SBDCs must actively educate small businesses about the benefits of hiring CTE graduates and inform them about relevant local CTE programs that can meet their staffing needs. For example, if a small manufacturing firm needs machinists, the local SBDC can no longer just talk about loans; they must now connect that firm directly to the local community college’s advanced manufacturing program. This is a crucial shift from just advising businesses to actively connecting them with skilled talent.

Two-Way Street: From Classroom to Coffee Shop

The connection isn't just about jobs, though. The bill also forces SBDCs and WBCs to share their resources with CTE programs. This means that students graduating with technical skills—say, a certificate in HVAC repair or culinary arts—will now be told that they can use SBDC services if they want to start their own company instead of working for someone else. This is a huge win for entrepreneurship, as it links the training pipeline directly to the startup support system.

Similarly, Women's Business Centers get the same mandate, focusing specifically on linking women-owned small businesses with CTE graduates and ensuring those graduates know about the WBC resources available for starting their own ventures. This could significantly boost the number of women-owned businesses in skilled trades where they are currently underrepresented.

The Fine Print: Where Discretion Creeps In

While the intent is excellent—matching supply (skilled workers) with demand (small businesses)—there is a slight catch in the language. The bill mandates that these centers connect businesses and CTE programs “When it makes sense” or “When appropriate.” This kind of wording grants a lot of discretion to the SBDCs and WBCs. It means that the level of effort in making these connections might vary widely from state to state or even office to office. If an SBDC is already stretched thin, they might interpret “appropriate” very narrowly, potentially slowing down the intended benefits of this coordination. Overall, however, this legislation is a practical step toward ensuring that the millions spent on technical training actually translate into jobs and stronger small businesses.