Bill Summary
The Native American Business Incubators Program Act establishes a program within the Department of the Interior that provides financial assistance to eligible applicants for the establishment and operation of business incubators in Indian reservation communities. Eligible applicants include Indian tribes, tribal colleges or universities, institutions of higher education, and nonprofit organizations that provide business and financial technical assistance. The program has requirements for eligibility, application and selection processes, and oversight through annual evaluations and reports. It also authorizes appropriations of $5 million annually from 2020 to 2024 for the program.
Possible Impacts
1. Native American entrepreneurs will have access to financial assistance through competitive grants to establish and operate business incubators in reservation communities, providing them with necessary resources and physical workspace to collaborate and conduct business.
2. Eligible applicants such as Indian tribes, tribal colleges or universities, and nonprofit organizations will have the opportunity to receive grant funds and establish business incubators, helping to promote economic development in reservation communities.
3. The program will also coordinate with other government agencies and provide information and materials to assist Native businesses and entrepreneurs in applying for additional business and entrepreneurial development programs, creating more opportunities for growth and success.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 294 Enrolled Bill (ENR)]
S.294
One Hundred Sixteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
An Act
To establish a business incubators program within the Department of the
Interior to promote economic development in Indian reservation
communities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Native American Business Incubators
Program Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) entrepreneurs face specific challenges when transforming
ideas into profitable business enterprises;
(2) entrepreneurs that want to provide products and services in
reservation communities face an additional set of challenges that
requires special knowledge;
(3) a business incubator is an organization that assists
entrepreneurs in navigating obstacles that prevent innovative ideas
from becoming viable businesses by providing services that
include--
(A) workspace and facilities resources;
(B) access to capital, business education, and counseling;
(C) networking opportunities;
(D) mentorship opportunities; and
(E) an environment intended to help establish and expand
business operations;
(4) the business incubator model is suited to accelerating
entrepreneurship in reservation communities because the business
incubator model promotes collaboration to address shared challenges
and provides individually tailored services for the purpose of
overcoming obstacles unique to each participating business; and
(5) business incubators will stimulate economic development by
providing Native entrepreneurs with the tools necessary to grow
businesses that offer products and services to reservation
communities.
SEC. 3. DEFINITIONS.
In this Act:
(1) Business incubator.--The term ``business incubator'' means
an organization that--
(A) provides physical workspace and facilities resources to
startups and established businesses; and
(B) is designed to accelerate the growth and success of
businesses through a variety of business support resources and
services, including--
(i) access to capital, business education, and
counseling;
(ii) networking opportunities;
(iii) mentorship opportunities; and
(iv) other services intended to aid in developing a
business.
(2) Eligible applicant.--The term ``eligible applicant'' means
an applicant eligible to apply for a grant under section 4(b).
(3) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304).
(4) Institution of higher education.--The term ``institution of
higher education'' has the meaning given the term in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001).
(5) Native american; native.--The terms ``Native American'' and
``Native'' have the meaning given the term ``Indian'' in section 4
of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304).
(6) Native business.--The term ``Native business'' means a
business concern that is at least 51-percent owned and controlled
by 1 or more Native Americans.
(7) Native entrepreneur.--The term ``Native entrepreneur''
means an entrepreneur who is a Native American.
(8) Program.--The term ``program'' means the program
established under section 4(a).
(9) Reservation.--The term ``reservation'' has the meaning
given the term in section 3 of the Indian Financing Act of 1974 (25
U.S.C. 1452).
(10) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(11) Tribal college or university.--The term ``tribal college
or university'' has the meaning given the term ``Tribal College or
University'' in section 316(b) of the Higher Education Act of 1965
(20 U.S.C. 1059c(b)).
SEC. 4. ESTABLISHMENT OF PROGRAM.
(a) In General.--The Secretary shall establish a program in the
Office of Indian Energy and Economic Development under which the
Secretary shall provide financial assistance in the form of competitive
grants to eligible applicants for the establishment and operation of
business incubators that serve reservation communities by providing
business incubation and other business services to Native businesses
and Native entrepreneurs.
(b) Eligible Applicants.--
(1) In general.--To be eligible to receive a grant under the
program, an applicant shall--
(A) be--
(i) an Indian tribe;
(ii) a tribal college or university;
(iii) an institution of higher education; or
(iv) a private nonprofit organization or tribal
nonprofit organization that--
(I) provides business and financial technical
assistance; and
(II) will commit to serving 1 or more reservation
communities;
(B) be able to provide the physical workspace, equipment,
and connectivity necessary for Native businesses and Native
entrepreneurs to collaborate and conduct business on a local,
regional, national, and international level; and
(C) in the case of an entity described in clauses (ii)
through (iv) of subparagraph (A), have been operational for not
less than 1 year before receiving a grant under the program.
(2) Joint project.--
(A) In general.--Two or more entities may submit a joint
application for a project that combines the resources and
expertise of those entities at a physical location dedicated to
assisting Native businesses and Native entrepreneurs under the
program.
(B) Contents.--A joint application submitted under
subparagraph (A) shall--
(i) contain a certification that each participant of
the joint project is one of the eligible entities described
in paragraph (1)(A); and
(ii) demonstrate that together the participants meet
the requirements of subparagraphs (B) and (C) of paragraph
(1).
(c) Application and Selection Process.--
(1) Application requirements.--Each eligible applicant desiring
a grant under the program shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require, including--
(A) a certification that the applicant--
(i) is an eligible applicant;
(ii) will designate an executive director or program
manager, if such director or manager has not been
designated, to manage the business incubator; and
(iii) agrees--
(I) to a site evaluation by the Secretary as part
of the final selection process;
(II) to an annual programmatic and financial
examination for the duration of the grant; and
(III) to the maximum extent practicable, to remedy
any problems identified pursuant to the site evaluation
under subclause (I) or an examination under subclause
(II);
(B) a description of the 1 or more reservation communities
to be served by the business incubator;
(C) a 3-year plan that describes--
(i) the number of Native businesses and Native
entrepreneurs to be participating in the business
incubator;
(ii) whether the business incubator will focus on a
particular type of business or industry;
(iii) a detailed breakdown of the services to be
offered to Native businesses and Native entrepreneurs
participating in the business incubator; and
(iv) a detailed breakdown of the services, if any, to
be offered to Native businesses and Native entrepreneurs
not participating in the business incubator;
(D) information demonstrating the effectiveness and
experience of the eligible applicant in--
(i) conducting financial, management, and marketing
assistance programs designed to educate or improve the
business skills of current or prospective businesses;
(ii) working in and providing services to Native
American communities;
(iii) providing assistance to entities conducting
business in reservation communities;
(iv) providing technical assistance under Federal
business and entrepreneurial development programs for which
Native businesses and Native entrepreneurs are eligible;
and
(v) managing finances and staff effectively; and
(E) a site description of the location at which the
eligible applicant will provide physical workspace, including a
description of the technologies, equipment, and other resources
that will be available to Native businesses and Native
entrepreneurs participating in the business incubator.
(2) Evaluation considerations.--
(A) In general.--In evaluating each application, the
Secretary shall consider--
(i) the ability of the eligible applicant--
(I) to operate a business incubator that
effectively imparts entrepreneurship and business
skills to Native businesses and Native entrepreneurs,
as demonstrated by the experience and qualifications of
the eligible applicant;
(II) to commence providing services within a
minimum period of time, to be determined by the
Secretary; and
(III) to provide quality incubation services to a
significant number of Native businesses and Native
entrepreneurs;
(ii) the experience of the eligible applicant in
providing services in Native American communities,
including in the 1 or more reservation communities
described in the application; and
(iii) the proposed location of the business incubator.
(B) Priority.--
(i) In general.--In evaluating the proposed location of
the business incubator under subparagraph (A)(iii), the
Secretary shall--
(I) consider the program goal of achieving broad
geographic distribution of business incubators; and
(II) except as provided in clause (ii), give
priority to eligible applicants that will provide
business incubation services on or near the reservation
of the 1 or more communities that were described in the
application.
(ii) Exception.--The Secretary may give priority to an
eligible applicant that is not located on or near the
reservation of the 1 or more communities that were
described in the application if the Secretary determines
that--
(I) the location of the business incubator will not
prevent the eligible applicant from providing quality
business incubation services to Native businesses and
Native entrepreneurs from the 1 or more reservation
communities to be served; and
(II) siting the business incubator in the
identified location will serve the interests of the 1
or more reservation communities to be served.
(3) Site evaluation.--
(A) In general.--Before making a grant to an eligible
applicant, the Secretary shall conduct a site visit, evaluate a
video submission, or evaluate a written site proposal (if the
applicant is not yet in possession of the site) of the proposed
site to ensure the proposed site will permit the eligible
applicant to meet the requirements of the program.
(B) Written site proposal.--A written site proposal shall
meet the requirements described in paragraph (1)(E) and
contain--
(i) sufficient detail for the Secretary to ensure in
the absence of a site visit or video submission that the
proposed site will permit the eligible applicant to meet
the requirements of the program; and
(ii) a timeline describing when the eligible applicant
will be--
(I) in possession of the proposed site; and
(II) operating the business incubator at the
proposed site.
(C) Followup.--Not later than 1 year after awarding a grant
to an eligible applicant that submits an application with a
written site proposal, the Secretary shall conduct a site visit
or evaluate a video submission of the site to ensure the site
is consistent with the written site proposal.
(d) Administration.--
(1) Duration.--Each grant awarded under the program shall be
for a term of 3 years.
(2) Payment.--
(A) In general.--Except as provided in subparagraph (B),
the Secretary shall disburse grant funds awarded to an eligible
applicant in annual installments.
(B) More frequent disbursements.--On request by the
applicant, the Secretary may make disbursements of grant funds
more frequently than annually, on the condition that
disbursements shall be made not more frequently than quarterly.
(3) Non-federal contributions for initial assistance.--
(A) In general.--Except as provided in subparagraph (B), an
eligible applicant that receives a grant under the program
shall provide non-Federal contributions in an amount equal to
not less than 25 percent of the grant amount disbursed each
year.
(B) Waiver.--The Secretary may waive, in whole or in part,
the requirements of subparagraph (A) with respect to an
eligible applicant if, after considering the ability of the
eligible applicant to provide non-Federal contributions, the
Secretary determines that--
(i) the proposed business incubator will provide
quality business incubation services; and
(ii) the 1 or more reservation communities to be served
are unlikely to receive similar services because of
remoteness or other reasons that inhibit the provision of
business and entrepreneurial development services.
(4) Renewals.--
(A) In general.--The Secretary may renew a grant award
under the program for a term not to exceed 3 years.
(B) Considerations.--In determining whether to renew a
grant award, the Secretary shall consider with respect to the
eligible applicant--
(i) the results of the annual evaluations of the
eligible applicant under subsection (f)(1);
(ii) the performance of the business incubator of the
eligible applicant, as compared to the performance of other
business incubators receiving assistance under the program;
(iii) whether the eligible applicant continues to be
eligible for the program; and
(iv) the evaluation considerations for initial awards
under subsection (c)(2).
(C) Non-federal contributions for renewals.--An eligible
applicant that receives a grant renewal under subparagraph (A)
shall provide non-Federal contributions in an amount equal to
not less than 33 percent of the total amount of the grant.
(5) No duplicative grants.--An eligible applicant shall not be
awarded a grant under the program that is duplicative of existing
Federal funding from another source.
(e) Program Requirements.--
(1) Use of funds.--An eligible applicant receiving a grant
under the program may use grant amounts--
(A) to provide physical workspace and facilities for Native
businesses and Native entrepreneurs participating in the
business incubator;
(B) to establish partnerships with other institutions and
entities to provide comprehensive business incubation services
to Native businesses and Native entrepreneurs participating in
the business incubator; and
(C) for any other uses typically associated with business
incubators that the Secretary determines to be appropriate and
consistent with the purposes of the program.
(2) Minimum requirements.--Each eligible applicant receiving a
grant under the program shall--
(A) offer culturally tailored incubation services to Native
businesses and Native entrepreneurs;
(B) use a competitive process for selecting Native
businesses and Native entrepreneurs to participate in the
business incubator;
(C) provide physical workspace that permits Native
businesses and Native entrepreneurs to conduct business and
collaborate with other Native businesses and Native
entrepreneurs;
(D) provide entrepreneurship and business skills training
and education to Native businesses and Native entrepreneurs
including--
(i) financial education, including training and
counseling in--
(I) applying for and securing business credit and
investment capital;
(II) preparing and presenting financial statements;
and
(III) managing cash flow and other financial
operations of a business;
(ii) management education, including training and
counseling in planning, organization, staffing, directing,
and controlling each major activity or function of a
business or startup; and
(iii) marketing education, including training and
counseling in--
(I) identifying and segmenting domestic and
international market opportunities;
(II) preparing and executing marketing plans;
(III) locating contract opportunities;
(IV) negotiating contracts; and
(V) using varying public relations and advertising
techniques;
(E) provide direct mentorship or assistance finding mentors
in the industry in which the Native business or Native
entrepreneur operates or intends to operate; and
(F) provide access to networks of potential investors,
professionals in the same or similar fields, and other business
owners with similar businesses.
(3) Technology.--Each eligible applicant shall leverage
technology to the maximum extent practicable to provide Native
businesses and Native entrepreneurs with access to the connectivity
tools needed to compete and thrive in 21st-century markets.
(f) Oversight.--
(1) Annual evaluations.--Not later than 1 year after the date
on which the Secretary awards a grant to an eligible applicant
under the program, and annually thereafter for the duration of the
grant, the Secretary shall conduct an evaluation of, and prepare a
report on, the eligible applicant, which shall--
(A) describe the performance of the eligible applicant; and
(B) be used in determining the ongoing eligibility of the
eligible applicant.
(2) Annual report.--
(A) In general.--Not later than 1 year after the date on
which the Secretary awards a grant to an eligible applicant
under the program, and annually thereafter for the duration of
the grant, each eligible applicant receiving an award under the
program shall submit to the Secretary a report describing the
services the eligible applicant provided under the program
during the preceding year.
(B) Report content.--The report described in subparagraph
(A) shall include--
(i) a detailed breakdown of the Native businesses and
Native entrepreneurs receiving services from the business
incubator, including, for the year covered by the report--
(I) the number of Native businesses and Native
entrepreneurs participating in or receiving services
from the business incubator and the types of services
provided to those Native businesses and Native
entrepreneurs;
(II) the number of Native businesses and Native
entrepreneurs established and jobs created or
maintained; and
(III) the performance of Native businesses and
Native entrepreneurs while participating in the
business incubator and after graduation or departure
from the business incubator; and
(ii) any other information the Secretary may require to
evaluate the performance of a business incubator to ensure
appropriate implementation of the program.
(C) Limitations.--To the maximum extent practicable, the
Secretary shall not require an eligible applicant to report
under subparagraph (A) information provided to the Secretary by
the eligible applicant under other programs.
(D) Coordination.--The Secretary shall coordinate with the
heads of other Federal agencies to ensure that, to the maximum
extent practicable, the report content and form under
subparagraphs (A) and (B) are consistent with other reporting
requirements for Federal programs that provide business and
entrepreneurial assistance.
(3) Report to congress.--
(A) In general.--Not later than 2 years after the date on
which the Secretary first awards funding under the program, and
biennially thereafter, the Secretary shall submit to the
Committee on Indian Affairs of the Senate and the Committee on
Natural Resources of the House of Representatives a report on
the performance and effectiveness of the program.
(B) Contents.--Each report submitted under subparagraph (A)
shall--
(i) account for each program year; and
(ii) include with respect to each business incubator
receiving grant funds under the program--
(I) the number of Native businesses and Native
entrepreneurs that received business incubation or
other services;
(II) the number of businesses established with the
assistance of the business incubator;
(III) the number of jobs established or maintained
by Native businesses and Native entrepreneurs receiving
business incubation services, including a description
of where the jobs are located with respect to
reservation communities;
(IV) to the maximum extent practicable, the amount
of capital investment and loan financing accessed by
Native businesses and Native entrepreneurs receiving
business incubation services; and
(V) an evaluation of the overall performance of the
business incubator.
SEC. 5. REGULATIONS.
Not later than 180 days after the date of enactment of this Act,
the Secretary shall promulgate regulations to implement the program.
SEC. 6. SCHOOLS TO BUSINESS INCUBATOR PIPELINE.
The Secretary shall facilitate the establishment of relationships
between eligible applicants receiving funds through the program and
educational institutions serving Native American communities, including
tribal colleges and universities.
SEC. 7. AGENCY PARTNERSHIPS.
The Secretary shall coordinate with the Secretary of Agriculture,
the Secretary of Commerce, the Secretary of the Treasury, and the
Administrator of the Small Business Administration to ensure, to the
maximum extent practicable, that business incubators receiving grant
funds under the program have the information and materials needed to
provide Native businesses and Native entrepreneurs with the information
and assistance necessary to apply for business and entrepreneurial
development programs administered by the Department of Agriculture, the
Department of Commerce, the Department of the Treasury, and the Small
Business Administration.
SEC. 8. AUTHORIZATIONS OF APPROPRIATIONS.
There are authorized to be appropriated to carry out the program
$5,000,000 for each of fiscal years 2020 through 2024.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.