[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3534 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3534

 To establish a Native American entrepreneurial development program in 
                   the Small Business Administration.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 2010

  Ms. Landrieu (for herself and Mr. Dorgan) introduced the following 
   bill; which was read twice and referred to the Committee on Small 
                     Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
 To establish a Native American entrepreneurial development program in 
                   the Small Business Administration.

    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 Small Business 
Assistance and Entrepreneurial Growth Act of 2010''.

SEC. 2. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 4(b)(1) (15 U.S.C. 633(b)(1))--
                    (A) in the fifth sentence, by striking ``five 
                Associate Administrators'' and inserting ``6 Associate 
                Administrators''; and
                    (B) by inserting after the fifth sentence the 
                following: ``1 Associate Administrator shall be the 
                Associate Administrator of the Office of Native 
                American Affairs established by section 44.'';
            (2) by redesignating section 44 as section 45; and
            (3) by inserting after section 43 (15 U.S.C. 657o) the 
        following:

``SEC. 44. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Associate administrator.--The term `Associate 
        Administrator' means the Associate Administrator of the Office 
        of Native American Affairs established under subsection (b).
            ``(2) Center; native american business center.--The terms 
        `center' and `Native American business center' mean a center 
        established under subsection (c).
            ``(3) Eligible applicant.--The term `eligible applicant' 
        means--
                    ``(A) a tribal college;
                    ``(B) a private, nonprofit organization--
                            ``(i) that provides business and financial 
                        or procurement technical assistance to 1 or 
                        more Native American communities; and
                            ``(ii) that is dedicated to assisting one 
                        or more Native American communities; or
                    ``(C) a small business development center, women's 
                business center, or other private organization 
                participating in a joint project.
            ``(4) Joint project.--The term `joint project' means a 
        project that--
                    ``(A) combines the resources and expertise of 2 or 
                more distinct entities at a physical location dedicated 
                to assisting the Native American community; and
                    ``(B) submits to the Administration a joint 
                application that contains--
                            ``(i) a certification that each participant 
                        of the project--
                                    ``(I) is an eligible applicant;
                                    ``(II) employs an executive 
                                director or program manager to manage 
                                the center; and
                            ``(ii) information demonstrating a record 
                        of commitment to providing assistance to Native 
                        Americans and;
                            ``(iii) information demonstrating that the 
                        participants in the joint project have the 
                        ability and resources to meet the needs, 
                        including the cultural needs, of the Native 
                        Americans to be served by the project.
            ``(5) Native american small business concern.--The term 
        `Native American small business concern' means a small business 
        concern that is at least 51 percent owned and controlled by--
                    ``(A) an Indian tribe or a Native Hawaiian 
                Organization, as the terms are described in paragraphs 
                (13) and (15) of section 8(a), respectively; or
                    ``(B) 1 or more individual members of an Indian 
                tribe or Native Hawaiian Organization.
            ``(6) Native american small business development program.--
        The term `Native American small business development program' 
        means the program established under subsection (c).
            ``(7) Small business concern.--The term `small business 
        concern' has the same meaning as in section 3.
            ``(8) Small business development center.--The term `small 
        business development center' means a small business development 
        center described in section 21.
            ``(9) Tribal college.--The term `tribal college' has the 
        meaning given the term `tribally controlled college or 
        university' in section 2(a) of the Tribally Controlled 
        Community College Assistance Act of 1978 (25 U.S.C. 1801(a)).
            ``(10) Tribal land.--The term `tribal land' has the meaning 
        given the term `reservation' in section 3 of the Indian 
        Financing Act (25 U.S.C. 1452).
    ``(b) Office of Native American Affairs.--
            ``(1) Establishment.--There is established within the 
        Administration the Office of Native American Affairs, which, 
        under the direction of the Associate Administrator, shall 
        implement the programs of the Administration for the 
        development of business enterprises by Native Americans.
            ``(2) Purpose.--The purpose of the Office of Native 
        American Affairs is to help Native American small business 
        concerns--
                    ``(A) to start, operate, and increase the business 
                of small business concerns;
                    ``(B) to develop management and technical skills;
                    ``(C) to seek Federal procurement opportunities;
                    ``(D) to increase employment opportunities for 
                Native Americans through the establishment and 
                expansion of small business concerns; and
                    ``(E) to increase the access of Native Americans to 
                capital markets.
            ``(3) Associate administrator.--
                    ``(A) Appointment.--The Administrator shall appoint 
                a qualified individual to serve as Associate 
                Administrator of the Office of Native American Affairs 
                in accordance with this paragraph.
                    ``(B) Qualifications.--The Associate Administrator 
                appointed under subparagraph (A) shall have--
                            ``(i) knowledge of Native American culture; 
                        and
                            ``(ii) experience providing culturally 
                        tailored small business development assistance 
                        to Native Americans.
                    ``(C) Employment status.--The Administrator shall 
                establish the position of Associate Administrator, who 
                shall--
                            ``(i) be an appointee in the Senior 
                        Executive Service (as defined in section 
                        3132(a) of title 5, United States Code); and
                            ``(ii) shall report to and be responsible 
                        directly to the Administrator.
                    ``(D) Responsibilities and duties.--The Associate 
                Administrator shall--
                            ``(i) administer and manage the Native 
                        American small business development program;
                            ``(ii) formulate, execute, and promote the 
                        policies and programs of the Administration 
                        that provide assistance to small business 
                        concerns owned and controlled by Native 
                        Americans;
                            ``(iii) act as an ombudsman for full 
                        consideration of Native Americans in all 
                        programs of the Administration;
                            ``(iv) recommend the annual administrative 
                        and program budgets for the Office of Native 
                        American Affairs;
                            ``(v) consult with Native American business 
                        centers in carrying out the Native American 
                        small business development program;
                            ``(vi) recommend appropriate funding 
                        levels;
                            ``(vii) review the annual budgets submitted 
                        by each applicant for the Native American small 
                        business development program;
                            ``(viii) select applicants to participate 
                        in the Native American small business 
                        development program;
                            ``(ix) implement this section; and
                            ``(x) maintain a clearinghouse for the 
                        dissemination and exchange of information 
                        between all Administration-sponsored business 
                        centers.
                    ``(E) Consultation requirements.--In carrying out 
                the responsibilities and duties described in this 
                paragraph, the Associate Administrator shall confer 
                with and seek the advice of--
                            ``(i) officials of the Administration 
                        working in areas served by Native American 
                        business centers; and
                            ``(ii) eligible applicants.
    ``(c) Native American Small Business Development Program.--
            ``(1) Financial assistance.--
                    ``(A) In general.--The Administration, acting 
                through the Associate Administrator, shall provide 
                financial assistance to eligible applicants to 
                establish Native American business centers in 
                accordance with this section.
                    ``(B) Use of funds.--The financial and resource 
                assistance provided under this subsection shall be used 
                to establish a Native American business center to 
                overcome obstacles impeding the establishment, 
                development, and expansion of small business concerns, 
                in accordance with this section.
            ``(2) 5-year projects.--
                    ``(A) In general.--Each Native American business 
                center that receives assistance under paragraph (1)(A) 
                shall conduct a 5-year project that offers culturally 
                tailored business development assistance in the form 
                of--
                            ``(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 concern;
                            ``(ii) management education, including 
                        training and counseling in planning, 
                        organizing, staffing, directing, and 
                        controlling each major activity and function of 
                        a small business concern; 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) developing pricing 
                                strategies;
                                    ``(IV) locating contract 
                                opportunities;
                                    ``(V) negotiating contracts; and
                                    ``(VI) using varying public 
                                relations and advertising techniques.
                    ``(B) Business development assistance recipients.--
                The business development assistance under subparagraph 
                (A) shall be offered to prospective and current owners 
                of Native American small business concerns.
            ``(3) Form of federal financial assistance.--
                    ``(A) Documentation.--The financial assistance to 
                Native American business centers authorized under this 
                subsection may be made by grant, contract, or 
                cooperative agreement.
                    ``(B) Payments.--
                            ``(i) Timing.--Payments made under this 
                        subsection may be disbursed in periodic 
                        installments, at the request of the recipient.
                            ``(ii) Advance.--The Administrator may 
                        disburse not more than 25 percent of the annual 
                        amount of Federal financial assistance awarded 
                        to a Native American business center after 
                        notice of the award has been issued.
                    ``(C) Non-federal contributions.--
                            ``(i) In general.--
                                    ``(I) Initial financial 
                                assistance.--Except as provided in 
                                subclause (II), an eligible applicant 
                                that receives financial assistance 
                                under this subsection shall provide 
                                non-Federal contributions for the 
                                operation of the Native American 
                                business center established by the 
                                eligible applicant in an amount equal 
                                to--
                                            ``(aa) in each of the first 
                                        and second years of the 
                                        project, not less than 33 
                                        percent of the amount of the 
                                        financial assistance received 
                                        under this subsection; and
                                            ``(bb) in the third through 
                                        fifth years of the project, not 
                                        less than 50 percent of the 
                                        amount of the financial 
                                        assistance received under this 
                                        subsection.
                                    ``(II) Renewals.--An eligible 
                                applicant that receives a renewal of 
                                financial assistance under this 
                                subsection shall provide non-Federal 
                                contributions for the operation of a 
                                Native American business center 
                                established by the eligible applicant 
                                in an amount equal to not less than 50 
                                percent of the amount of the financial 
                                assistance received under this 
                                subsection.
                                    ``(III) Exceptions.--The 
                                requirements of this section may be 
                                waived at the discretion of the 
                                Administrator, based on an evaluation 
                                of the ability of the eligible 
                                applicant to provide non-Federal 
                                contributions.
            ``(4) Contract and cooperative agreement authority.--A 
        Native American business center may enter into a contract or 
        cooperative agreement with a Federal department or agency to 
        provide specific assistance to Native American and other 
        underserved small business concerns located on or near tribal 
        land, to the extent that the contract or cooperative agreement 
        is consistent with and does not duplicate the terms of any 
        assistance received by the Native American business center from 
        the Administration.
            ``(5) Application process.--
                    ``(A) Submission of a 5-year plan.--Each applicant 
                for assistance under paragraph (1) shall submit a 5-
                year plan to the Administration on proposed assistance 
                and training activities.
                    ``(B) Criteria.--
                            ``(i) In general.--The Administrator shall 
                        evaluate applicants for financial assistance 
                        under this subsection in accordance with 
                        selection criteria that are--
                                    ``(I) established before the date 
                                on which eligible applicants are 
                                required to submit the applications;
                                    ``(II) stated in terms of relative 
                                importance; and
                                    ``(III) publicly available and 
                                stated in each solicitation for 
                                applications for financial assistance 
                                under this subsection made by the 
                                Administrator.
                            ``(ii) Considerations.--The criteria 
                        required by this subparagraph shall include--
                                    ``(I) the experience of the 
                                applicant in conducting programs or 
                                ongoing efforts designed to impart or 
                                upgrade the business skills of current 
                                or potential owners of Native American 
                                small business concerns;
                                    ``(II) the ability of the applicant 
                                to commence a project within a minimum 
                                amount of time;
                                    ``(III) the ability of the 
                                applicant to provide quality training 
                                and services to a significant number of 
                                Native Americans;
                                    ``(IV) previous assistance from the 
                                Administration to provide services in 
                                Native American communities;
                                    ``(V) the proposed location for the 
                                Native American business center, with 
                                priority given based on the proximity 
                                of the center to the population being 
                                served and to achieve a broad 
                                geographic dispersion of the centers; 
                                and
                                    ``(VI) demonstrated experience in 
                                providing technical assistance, 
                                including financial, marketing, and 
                                management assistance.
            ``(6) Conditions for participation.--Each eligible 
        applicant desiring a grant under this subsection shall submit 
        an application to the Administrator that contains--
                    ``(A) a certification that the applicant--
                            ``(i) is an eligible applicant;
                            ``(ii) employs a full-time executive 
                        director, project director, or program manager 
                        to manage the Native American business center; 
                        and
                            ``(iii) agrees--
                                    ``(I) to a site visit by the 
                                Administrator as part of the final 
                                selection process;
                                    ``(II) to an annual programmatic 
                                and financial examination; and
                                    ``(III) to the maximum extent 
                                practicable, to remedy any problems 
                                identified pursuant to that site visit 
                                or examination;
                    ``(B) information demonstrating that the applicant 
                has the ability and resources to meet the needs, 
                including cultural needs, of the Native Americans to be 
                served by the grant;
                    ``(C) information relating to proposed assistance 
                that the grant will provide, including--
                            ``(i) the number of individuals to be 
                        assisted; and
                            ``(ii) the number of hours of counseling, 
                        training, and workshops to be provided;
                    ``(D) information demonstrating the effectiveness 
                and experience of the applicant in--
                            ``(i) conducting financial, management, and 
                        marketing assistance programs designed to 
                        educate or improve the business skills of 
                        current or prospective Native American business 
                        owners;
                            ``(ii) providing training and services to a 
                        representative number of Native Americans;
                            ``(iii) using resource partners of the 
                        Administration and other entities, including 
                        institutions of higher education, Indian 
                        tribes, or tribal colleges; and
                            ``(iv) the prudent management of finances 
                        and staffing;
                    ``(E) the location at which the applicant will 
                provide training and services to Native Americans;
                    ``(F) a 5-year plan that describes--
                            ``(i) the number of Native Americans and 
                        Native American small business concerns to be 
                        served by the grant;
                            ``(ii) if the Native American business 
                        center is located in the continental United 
                        States, the number of Native Americans to be 
                        served by the grant; and
                            ``(iii) the training and services to be 
                        provided to a representative number of Native 
                        Americans; and
                    ``(G) if the applicant is a joint project--
                            ``(i) a certification that each participant 
                        in the joint project is an eligible applicant;
                            ``(ii) information demonstrating a record 
                        of commitment to providing assistance to Native 
                        Americans; and
                            ``(iii) information demonstrating that the 
                        participants in the joint project have the 
                        ability and resources to meet the needs, 
                        including the cultural needs, of the Native 
                        Americans to be served by the grant.
            ``(7) Review of applications.--The Administrator shall 
        approve or disapprove each completed application submitted 
        under this subsection not later than 90 days after the date on 
        which the eligible applicant submits the application.
            ``(8) Program examination.--
                    ``(A) In general.--Each Native American business 
                center established under this subsection shall annually 
                provide to the Administrator an itemized cost breakdown 
                of actual expenditures made during the preceding year.
                    ``(B) Administration action.--Based on information 
                received under subparagraph (A), the Administration 
                shall--
                            ``(i) develop and implement an annual 
                        programmatic and financial examination of each 
                        Native American business center assisted 
                        pursuant to this subsection; and
                            ``(ii) analyze the results of each 
                        examination conducted under clause (i) to 
                        determine the programmatic and financial 
                        viability of each Native American business 
                        center.
                    ``(C) Conditions for continued funding.--In 
                determining whether to renew a grant, contract, or 
                cooperative agreement with a Native American business 
                center, the Administration--
                            ``(i) shall consider the results of the 
                        most recent examination of the center under 
                        subparagraph (B), and, to a lesser extent, 
                        previous examinations; and
                            ``(ii) may withhold the renewal, if the 
                        Administrator determines that--
                                    ``(I) the center has failed to 
                                provide the information required to be 
                                provided under subparagraph (A), or the 
                                information provided by the center is 
                                inadequate;
                                    ``(II) the center has failed to 
                                provide adequate information required 
                                to be provided by the center for 
                                purposes of the report of the 
                                Administrator under subparagraph (E);
                                    ``(III) the center has failed to 
                                comply with a requirement for 
                                participation in the Native American 
                                small business development program, as 
                                determined by the Administrator, 
                                including--
                                            ``(aa) failure to acquire 
                                        or properly document a non-
                                        Federal contribution;
                                            ``(bb) failure to establish 
                                        an appropriate partnership or 
                                        program for marketing and 
                                        outreach to reach new Native 
                                        American small business 
                                        concerns;
                                            ``(cc) failure to achieve 
                                        results described in a 
                                        financial assistance agreement; 
                                        and
                                            ``(dd) failure to provide 
                                        to the Administrator a 
                                        description of the amount and 
                                        sources of any non-Federal 
                                        funding received by the center;
                                    ``(IV) the center has failed to 
                                carry out the 5-year plan under in 
                                paragraph (6)(F); or
                                    ``(V) the center cannot make the 
                                certification described in paragraph 
                                (6)(A).
                    ``(D) Continuing contract and cooperative agreement 
                authority.--
                            ``(i) In general.--The authority of the 
                        Administrator to enter into contracts or 
                        cooperative agreements in accordance with this 
                        subsection shall be in effect for each fiscal 
                        year only to the extent and in the amounts as 
                        are provided in advance in appropriations Acts.
                            ``(ii) Renewal.--After the Administrator 
                        has entered into a contract or cooperative 
                        agreement with any Native American business 
                        center under this subsection, the Administrator 
                        may not suspend, terminate, or fail to renew or 
                        extend any such contract or cooperative 
                        agreement unless the Administrator--
                                    ``(I) provides the center with 
                                written notification that describes the 
                                reasons for the action of the 
                                Administrator; and
                                    ``(II) affords the center an 
                                opportunity for a hearing, appeal, or 
                                other administrative proceeding under 
                                chapter 5 of title 5, United States 
                                Code.
                    ``(E) Annual management report.--
                            ``(i) In general.--The Administrator shall 
                        prepare and submit to the Committee on Small 
                        Business and Entrepreneurship and the Committee 
                        on Indian Affairs of the Senate and the 
                        Committee on Small Business and the Committee 
                        on Natural Resources of the House of 
                        Representatives an annual report on the 
                        effectiveness of all projects conducted by 
                        Native American business centers under this 
                        subsection and any pilot programs administered 
                        by the Office of Native American Affairs.
                            ``(ii) Contents.--Each report submitted 
                        under clause (i) shall include, with respect to 
                        each Native American business center receiving 
                        financial assistance under this subsection--
                                    ``(I) the number of individuals 
                                receiving assistance from the Native 
                                American business center;
                                    ``(II) the number of startup 
                                business concerns established with the 
                                assistance of the Native American 
                                business center;
                                    ``(III) the number of existing 
                                businesses in the area served by the 
                                Native American business center seeking 
                                to expand employment;
                                    ``(IV) the number of jobs 
                                established or maintained, on an annual 
                                basis, by Native American small 
                                business concerns assisted by the 
                                center since receiving funding under 
                                this section;
                                    ``(V) to the maximum extent 
                                practicable, the amount of the capital 
                                investment and loan financing used by 
                                emerging and expanding businesses that 
                                were assisted by a Native American 
                                business center;
                                    ``(VI) any additional information 
                                on the counseling and training program 
                                that the Administrator determines to be 
                                necessary; and
                                    ``(VII) the most recent 
                                examination, as required under 
                                subparagraph (B), and the determination 
                                made by the Administration under that 
                                subparagraph.
            ``(9) Annual reports.--Each Native American business center 
        receiving financial assistance under this subsection shall 
        submit to the Administrator an annual report on the services 
        provided with the financial assistance, including--
                    ``(A) the number of individuals assisted, by tribal 
                affiliation;
                    ``(B) the number of hours spent providing 
                counseling and training for those individuals;
                    ``(C) the number of startup small business concerns 
                established or maintained with the assistance of the 
                Native American business center;
                    ``(D) the gross receipts of small business concerns 
                assisted by the Native American business center;
                    ``(E) the number of jobs established or maintained 
                by small business concerns assisted by the Native 
                American business center; and
                    ``(F) the number of jobs for Native Americans 
                established or maintained at small business concerns 
                assisted by the Native American business center.
            ``(10) Record retention.--
                    ``(A) Applications.--The Administrator shall 
                maintain a copy of each application submitted under 
                this subsection for not less than 7 years.
                    ``(B) Annual reports.--The Administrator shall 
                maintain copies of the certification submitted under 
                paragraph (6)(A) indefinitely.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out the Native American small business development 
        program $10,000,000 for each of fiscal years 2011 through 2013.
            ``(2) Administration.--Not more than 10 percent of funds 
        appropriated for a fiscal year may be used for the costs of 
        administering the programs under this section.''.
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