I 111th CONGRESS 2d Session H. R. 5871 IN THE HOUSE OF REPRESENTATIVES July 27, 2010 Mr. Carnahan introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Public Works and Economic Development Act of 1965 to allow non-debt financing for for-profit companies in business incubators.

1.

Short title

This Act may be cited as the Supporting Entrepreneurial Economic Development Act or SEED Act .

2.

Non-debt financing in direct expenditure or redistribution

Section 217(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3154c) is amended to read as follows: (c)

Economic adjustment

(1)

Non-debt financing addition

Subject to subsection (d), a recipient of a grant under section 209 may directly expend the grant funds or may redistribute the funds to public and private organizations and entities in the form of a grant, loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance, including non-debt financing of for-profit companies in business incubators. (2)

Definitions

For purposes of this subsection— (A)the term business incubator means an organization or entity, including an academic institution, established to foster the start-up of businesses or accelerate the growth of fledgling companies by providing entrepreneurs with resources and services to produce viable businesses that can help create jobs and restore vitality to distressed areas. (B)the term non-debt financing means funding used to help business incubators develop an idea and create the first product to be brought to market for the first time. .