[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3261 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 3261

To establish a business incubators program within the Department of the 
    Interior to promote economic development in Indian reservation 
                              communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2016

 Mr. Tester (for himself, Ms. Cantwell, and Mr. Udall) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Indian Affairs

_______________________________________________________________________

                                 A BILL


 
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. 450b).
            (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. 450b).
            (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 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 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.--
                            (i) In general.--Except as provided in 
                        clause (ii), 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.
                            (ii) Waiver.--The Secretary may waive, in 
                        whole or in part, the requirements of clause 
                        (i) 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 business incubator has 
                                provided and will continue to provide 
                                quality business incubation services to 
                                the 1 or more reservation communities 
                                served by the business incubator;
                                    (II) the 1 or more reservation 
                                communities served by the business 
                                incubator have benefited and will 
                                continue to benefit from the services 
                                of the business incubator; and
                                    (III) 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.
    (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 subparagraph (A) 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--
            (1) for each of fiscal years 2017 through 2022, $5,000,000; 
        and
            (2) for fiscal year 2023 and each fiscal year thereafter, 
        such sums as may be necessary.
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