[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 862 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 862

To promote the development of small business in economically distressed 
 central cities by providing for entrepreneurship training courses and 
 Federal guarantees of loans to potential entrepreneurs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 30 (legislative day, April 19), 1993

 Mr. Bradley (for himself, Mrs. Boxer, Mr. Bryan, Mrs. Feinstein, Mr. 
 Hollings, Mr. Hatch, Mr. Kerrey, Ms. Mikulski, Ms. Moseley-Braun, Mr. 
Reid, Mr. Robb, Mr. Rockefeller, Mr. Simon, Mr. Wellstone, Mrs. Murray, 
 Mr. Lieberman, and Mr. Wofford) introduced the following bill; which 
     was read twice and referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To promote the development of small business in economically distressed 
 central cities by providing for entrepreneurship training courses and 
 Federal guarantees of loans to potential entrepreneurs, and for other 
                               purposes.

    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 ``Entrepreneurship and Self-Employment 
Training Act of 1993''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) the growth of small business is crucial to economic 
        growth;
            (2) many people residing in economically distressed central 
        cities lack the opportunity to develop the skills necessary to 
        become entrepreneurs and small business owners;
            (3) community colleges and community development 
        corporations are uniquely positioned to provide 
        entrepreneurship and self-employment training;
            (4) community development corporations, community 
        development loan funds, community development credit unions, 
        and community development banks are uniquely positioned to 
        provide credit to individuals interested in starting small 
        businesses in economically distressed central cities; and
            (5) the Federal Government can promote the delivery of 
        credit to potential entrepreneurs in economically distressed 
        central cities by providing guarantees for small business 
        development loans made by community development corporations, 
        community development loan funds, community development credit 
        unions, and community development banks.
    (b) Purpose.--The purpose of this Act is to promote the development 
of small business in economically distressed central cities by 
providing for the development of entrepreneurship training courses and 
Federal guarantees of loans to potential entrepreneurs.

SEC. 3. SPECIALIZED TRAINING CURRICULUM GRANTS.

    (a) In General.--The Secretary of Labor (hereafter referred to in 
this section as the ``Secretary'') shall award competitive grants to 
community colleges or Historically Black Colleges and Universities that 
serve Economically Distressed Central Cities to enable such colleges to 
develop specialized training curricula for entrepreneurship and self-
employment for disadvantaged, inner-city individuals.
    (b) Application.--To be eligible to receive a grant under this 
section a community college or Historically Black College or University 
shall prepare and submit to the Secretary an application at such time, 
in such manner, and containing such information as the Secretary may 
require, including assurances that the applicant serves an Economically 
Distressed Central City.
    (c) Curriculum.--In developing a curriculum with amounts received 
under a grant awarded under subsection (a), a community college or 
Historically Black College or University shall ensure that the 
curriculum includes training components with respect to business plan 
development, cash accounting, credit, business communications, 
inventory management, and other basic business skills determined 
appropriate by the Secretary.
    (d) Term of Grants.--A grant awarded under this section shall be 
for a term of 1 year.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $5,000,000 for fiscal year 
1994.

SEC. 4. TRAINING GRANTS.

    (a) In General.--The Secretary of Labor (hereafter referred to in 
this section as the ``Secretary'') shall award competitive grants to 
community colleges or Historically Black Colleges and Universities, 
micro-enterprise programs and community development corporations to 
enable such colleges, programs and corporations to provide training 
under the curricula developed under section 3.
    (b) Application.--To be eligible to receive a grant under this 
section an entity of the type described in subsection (a) shall prepare 
and submit to the Secretary an application at such time, in such 
manner, and containing such information as the Secretary may require.
    (c) Training.--Amounts provided under a grant awarded under this 
section shall be used to enable the grantee to provide training, 
through 6 to 12 week training programs that resemble or are based on 
the curricula developed under section 3, to residents of Economically 
Distressed Central Cities that--
            (1) have been unemployed in excess of 20 consecutive weeks;
            (2) have recently been discharged from the armed forces;
            (3) receive assistance under title IV of the Social 
        Security Act; or
            (4) are otherwise determined appropriate by the Secretary.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $75,000,000 for fiscal years 
1995 through 1998.

SEC. 5. LOAN GUARANTEE PROGRAM.

    (a) In General.--The Administrator of the Small Business 
Administration (hereafter referred to in this section as the 
``Administrator'') shall establish a loan guarantee program under which 
the Administrator shall guarantee loans, not to exceed $25,000, made to 
eligible individuals by community development corporations, community 
development loan funds, community development credit unions, micro-
enterprise programs and community development banks
    (b) Eligibility for Guarantees.--With respect to a loan made by a 
community development corporation, micro-enterprise program, community 
development loan fund, community development credit union, or community 
development bank, to be eligible to receive a loan guarantee covering 
such loan under the program established under subsection (a), the 
community development corporation, micro-enterprise program, community 
development loan fund, community development credit union, or community 
development bank shall--
            (1) prepare and submit to the Administrator an application 
        at such time, in such manner, and containing such information 
        as the Administrator may require;
            (2) certify in such application that such loan will be made 
        to an eligible individual as described in subsection (c);
            (3) in the case of federally regulated depository 
        institutions, clarify that such institutions are in compliance 
        with the requirements of the appropriate Federal supervisory 
        agencies; and
            (4) meet such other requirements as the Administrator may 
        require.
    (c) Eligibility for Loans.--To be eligible to receive a loan for 
which a guarantee may be provided under subsection (a), an individual 
shall--
            (1) prepare and submit to the appropriate community 
        development corporation, micro-enterprise program, community 
        development loan fund, community development credit union, or 
        community development bank an application at such time, in such 
        manner, and containing such information as the community 
        development corporation, micro-enterprise program, community 
        development loan fund, community development credit union, or 
        community development bank may require;
            (2) have completed a training program of the type described 
        in section 4;
            (3) ensure that amounts received under the loan will be 
        used to start up a business that is located in an Economically 
        Distressed Central City and provide a detailed description of 
        the business that the individual intends to establish; and
            (4) meet such other requirements as the Administrator may 
        require.
    (d) Process for Implementation of Program.--Not later than 90 days 
after the date of enactment of this Act, the Administrator shall 
develop and publish procedures under which the Administrator shall 
provide loan guarantees under the program established under subsection 
(a). Such procedures shall include--
            (1) application procedures;
            (2) criteria which community development corporations, 
        micro-enterprise programs, community development loan funds, 
        community development credit unions, or community development 
        banks should apply when considering applications for loans to 
        which guarantees may be provided under this section;
            (3) criteria that the Administrator will utilize in 
        considering applications submitted for guarantees under this 
        section;
            (4) any other information determined appropriate by the 
        Administrator.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $150,000,000 for fiscal years 
1995 through 1998.

SEC. 6. LIMITATION.

    To be eligible to receive a grant or participate in the loan 
guarantee program under this Act, a community development corporation, 
micro-enterprise programs, community development loan fund, community 
development credit union, community development bank, or community 
college or Historically Black College or University shall provide 
assurances in the application submitted by such community college or 
Historically Black College or University, community development 
corporation, micro-enterprise program, community development loan fund, 
community development credit union, or community development bank under 
this Act that the area served by such community college or Historically 
Black College or University, community development corporation, micro-
enterprise program, community development loan fund, community 
development credit union, or community development bank has an 
unemployment rate, with respect to the 12-month period preceding the 
date on which the application is submitted, in excess of 9 percent.

SEC. 7. MISCELLANEOUS PROVISIONS.

    (a) In General.--As used in this Act:
            (1) Community college.--The term ``community college'' has 
        the same meaning given the term ``junior or community college'' 
        in section 312(e) of the Higher Education Act of 1965.
            (2) Community development bank.--The term ``community 
        development bank'' means an organization--
                    (A) that is affiliated with or has a subsidiary 
                that is a federally insured depository institution 
                (such as a savings bank, commercial bank, or credit 
                union) which is regulated by a Federal financial 
                supervisory agency;
                    (B) that has at least one or more subsidiaries or 
                affiliated organizations that supplement the depository 
                institution's lending with technical assistance, direct 
                community development activities, or higher risk 
                financing;
                    (C) whose primary or sole mission is to revitalize 
                a targeted geographic area;
                    (D) that maintains, through significant 
                representation on its governing board and otherwise, 
                accountability to community residents; and
                    (E) that has principals active in the 
                implementation of its programs who possess significant 
                experience in lending and the development of affordable 
                housing, small business development, or community 
                revitalization.
            (3) Community development corporation.--The term 
        ``community development corporation'' means a private, 
        nonprofit corporation whose board of directors is comprised of 
        business, civic and community leaders, and whose principal 
        purpose includes the provision of low-income housing or 
        community economic development projects that primarily benefit 
        low-income individuals and communities.
            (4) Community development credit union.--The term 
        ``community development credit union'' means a Federal or State 
        chartered credit union as defined in section 101 of the Federal 
        Credit Union Act that serves predominantly low-income members.
            (5) Community development loan fund.--The term ``community 
        development loan fund'' means a private nonprofit organization 
        which acts primarily as a financial intermediary that routinely 
        takes in funds from many sources in the form of grants, 
        deposits or loans, and routinely lends these funds out to 
        support the development of low- and moderate-income housing and 
        business development in economically depressed areas.
            (6) Historically Black Colleges and Universities.--The term 
        ``Historically Black Colleges and Universities'' means part B 
        institutions as such term is defined in section 322(2) of the 
        Higher Education Act of 1965.
            (7) Micro-enterprise program.--The term ``micro-enterprise 
        program'' means
                    (A) a private, nonprofit entity;
                    (B) a nonprofit community development corporation;
                    (C) a consortium of private, nonprofit 
                organizations; or
                    (D) a quasi-governmental economic development 
                entity (such as a planning and development district) 
                other than a State, county, or municipal government or 
                agency thereof;
        that provides business training and financial assistance (of 
        not to exceed $15,000) to women, low-income, or minority 
        entrepreneurs who wish to start-up or expand small business 
        concerns.
    (b) Economically Distressed Central City.--
            (1) In general.--The term ``economically distressed central 
        city'' means a city that meets the requirements of this 
        paragraph.
            (2) Requirements.--To be an Economically Distressed Central 
        City under paragraph (1), a city shall--
                    (A) be a metropolitan city (as defined in section 
                102(a)(4) of the Housing and Community Development Act 
                of 1974 (42 U.S.C. 5302(a)(4)));
                    (B) be eligible to receive an allocation of funds 
                under section 106(a)(3) of the Housing and Community 
                Development Act of 1974 for the most recent fiscal year 
                ending prior to the date of enactment of this Act;
                    (C) have a population of at least 30,000; and
                    (D) have a need adjusted per capita income less 
                than 1.25 (as determined under paragraph (3)) on the 
                basis of the most recent data available.
            (3) Need adjusted per capita income.--The Secretary of 
        Housing and Urban Development shall determine the Need Adjusted 
        Per Capita Income for each city that meets the requirements of 
        subparagraphs (A) and (B) of paragraph (2) under the following 
        formula:
                    (A) Determination of need index.--
                            (i) For purposes of this subsection, the 
                        term ``need index'' means the number equal to 
                        the quotient of--
                                    (I) the term ``N'', as determined 
                                under clause (ii); divided by
                                    (II) the term ``P'', as determined 
                                under clause (iii).
                            (ii) For purposes of clause (i)(I), the 
                        term `N' means the percentage constituted by 
                        the ratio of--
                                    (I) the amount of funds allotted to 
                                the city in the fiscal year in which 
                                the calendar year begins under section 
                                106(a)(3) of the Housing and Community 
                                Development Act of 1974; to
                                    (II) the sum of the amount of finds 
                                received by all eligible cities in such 
                                fiscal year under section 106(a)(3) of 
                                the Housing and Community Development 
                                Act of 1974.
                            (iii) For purposes of clause (i)(II), the 
                        term ``P'' means the percentage constituted by 
                        the ratio of--
                                    (I) the amount equal to the total 
                                population of the city, as determined 
                                by the Secretary using the most recent 
                                data that is available from the 
                                Secretary of Commerce pursuant to the 
                                decennial census and pursuant to 
                                reasonable estimates by such Secretary 
                                of changes occurring in the data in the 
                                ensuing period, to
                                    (II) the amount equal to the total 
                                population of all eligible cities in 
                                the current fiscal year.
                            (iv) For purposes of this subparagraph, the 
                        term ``eligible cities'' means those cities 
                        which meet the requirements of subparagraphs 
                        (A) and (B) of paragraph (2).
                    (B) Determination of need adjusted per capita 
                income factor.--
                            (i) For purposes of this section (and 
                        subject to clause (iv)), the term ``need 
                        adjusted per capita income factor'' means the 
                        amount equal to the percentage determined for 
                        the city in accordance with the following 
                        formula:

      

                                                                                                                
                                                            I                                                   
                                        1-.15   <3-ln (> ------- <3-ln )>                                       
                                                            Q                                                   
                                                                                                                

                            (ii) For purposes of clause (i), the term 
                        ``I'' means the per capita income of the city 
                        for the most recent year for which data is 
                        available, as determined by the Secretary of 
                        Commerce.
                            (iii) For purposes of clause (i), the term 
                        ``Q'' means the product of--
                                    (I) the need index of such city, as 
                                determined under subparagraph (A); and
                                    (II) the amount equal to the per 
                                capita income of the United States for 
                                the most recent year for which data is 
                                available, as determined by the 
                                Secretary of Commerce.
                            (iv) In the case of a city for which the 
                        quotient of the term ``I'' (as determined under 
                        clause (ii)) divided by the term ``Q'' (as 
                        determined under clause (iii)) is less than 
                        0.2, then such quotient shall be deemed to be 
                        equal to 0.2 for such city for purposes of the 
                        formula under clause (i).

                                 <all>