[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3034 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3034

To amend the Consolidated Farm and Rural Development Act to reauthorize 
     the rural business investment program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2018

Mrs. Gillibrand introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To amend the Consolidated Farm and Rural Development Act to reauthorize 
     the rural business investment program, 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 ``Rural Jobs and Investment Act of 
2018''.

SEC. 2. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981 et seq.) is amended by adding at the end the following:

``SEC. 379I. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means a 
        rural jobs accelerator partnership established after the date 
        of enactment of this section that--
                    ``(A) organizes key community and regional 
                stakeholders into a working group that--
                            ``(i) focuses on the shared goals and needs 
                        of the industry clusters that are objectively 
                        identified as existing, emerging, or declining;
                            ``(ii) represents a region defined by the 
                        partnership in accordance with subparagraph 
                        (B);
                            ``(iii) includes 1 or more representatives 
                        of each of--
                                    ``(I) an institution of higher 
                                education (as defined in section 101 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1001));
                                    ``(II) a private entity; and
                                    ``(III) a government entity;
                            ``(iv) may include 1 or more 
                        representatives of--
                                    ``(I) an economic development or 
                                other community or labor organization;
                                    ``(II) a financial institution, 
                                including a community development 
                                financial institution (as defined in 
                                section 103 of the Community 
                                Development Banking and Financial 
                                Institutions Act of 1994 (12 U.S.C. 
                                4702));
                                    ``(III) a philanthropic 
                                organization; and
                                    ``(IV) a rural cooperative, if the 
                                cooperative is organized as a nonprofit 
                                organization; and
                            ``(v) has, as a lead applicant--
                                    ``(I) a District Organization (as 
                                defined in section 300.3 of title 13, 
                                Code of Federal Regulations (or a 
                                successor regulation));
                                    ``(II) an Indian tribe (as defined 
                                in section 4 of the Indian Self-
                                Determination and Education Assistance 
                                Act (25 U.S.C. 5304)), or a consortium 
                                of Indian tribes;
                                    ``(III) a State or a political 
                                subdivision of a State, including a 
                                special purpose unit of a State or 
                                local government engaged in economic 
                                development activities, or a consortium 
                                of political subdivisions;
                                    ``(IV) an institution of higher 
                                education (as defined in section 101 of 
                                the Higher Education Act of 1965 (20 
                                U.S.C. 1001)) or a consortium of 
                                institutions of higher education; or
                                    ``(V) a public or private nonprofit 
                                organization; and
                    ``(B) subject to approval by the Secretary, may--
                            ``(i) serve a region that is--
                                    ``(I) a single jurisdiction; or
                                    ``(II) if the region is a rural 
                                area, multijurisdictional; and
                            ``(ii) define the region that the 
                        partnership represents, if the region--
                                    ``(I) is large enough to contain 
                                critical elements of the industry 
                                cluster prioritized by the partnership;
                                    ``(II) is small enough to enable 
                                close collaboration among members of 
                                the partnership;
                                    ``(III) includes a majority of 
                                communities that are located in--
                                            ``(aa) a nonmetropolitan 
                                        area that qualifies as a low-
                                        income community (as defined in 
                                        section 45D(e) of the Internal 
                                        Revenue Code of 1986); and
                                            ``(bb) an area that has 
                                        access to or has a plan to 
                                        achieve broadband service 
                                        (within the meaning of title VI 
                                        of the Rural Electrification 
                                        Act of 1936 (7 U.S.C. 950bb et 
                                        seq.)); and
                                    ``(IV)(aa) has a population of 
                                50,000 or fewer inhabitants; or
                                    ``(bb) for a region with a 
                                population of more than 50,000 
                                inhabitants, is the subject of a 
                                positive determination by the Secretary 
                                with respect to a rural-in-character 
                                petition, including such a petition 
                                submitted concurrently with the 
                                application of the partnership for a 
                                grant under this section.
            ``(2) Industry cluster.--The term `industry cluster' means 
        a broadly defined network of interconnected firms and 
        supporting institutions in related industries that accelerate 
        innovation, business formation, and job creation by taking 
        advantage of assets and strengths of a region in the business 
        environment.
            ``(3) High-wage job.--The term `high-wage job' means a job 
        that provides a wage that is greater than the median wage for 
        the applicable region, as determined by the Secretary.
            ``(4) Jobs accelerator.--The term `jobs accelerator' means 
        a jobs accelerator center or program located in or serving a 
        low-income rural community that may provide co-working space, 
        in-demand skills training, entrepreneurship support, and any 
        other services described in subsection (d)(1)(B).
            ``(5) Small and disadvantaged business.--The term `small 
        and disadvantaged business' has the meaning given the term 
        `small business concern owned and controlled by socially and 
        economically disadvantaged individuals' in section 8(d)(3)(C) 
        of the Small Business Act (15 U.S.C. 637(d)(3)(C)).
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish a grant 
        program under which the Secretary shall award grants, on a 
        competitive basis, to eligible entities to establish jobs 
        accelerators, including related programming, that--
                    ``(A) improve the ability of distressed rural 
                communities to create high-wage jobs, accelerate the 
                formation of new businesses with high-growth potential, 
                and strengthen regional economies, including by helping 
                to build capacity in the applicable region to achieve 
                those goals; and
                    ``(B) help rural communities identify and maximize 
                local assets and connect to regional opportunities, 
                networks, and industry clusters that demonstrate high 
                growth potential.
            ``(2) Cost-sharing.--
                    ``(A) In general.--The Federal share of the cost of 
                any activity carried out using a grant made under 
                paragraph (1) shall be not greater than 80 percent.
                    ``(B) In-kind contributions.--The non-Federal share 
                of the total cost of any activity carried out using a 
                grant made under paragraph (1) may be in the form of 
                donations or in-kind contributions of goods or services 
                fairly valued.
            ``(3) Selection criteria.--In selecting eligible entities 
        to receive grants under paragraph (1), the Secretary shall 
        consider--
                    ``(A) the commitment of participating core 
                stakeholders in the jobs accelerator partnership, 
                including a demonstration that--
                            ``(i) investment organizations, including 
                        venture development organizations, venture 
                        capital firms, revolving loan funders, angel 
                        investment groups, community lenders, community 
                        development financial institutions, rural 
                        business investment companies, small business 
                        investment companies (as defined in section 103 
                        of the Small Business Investment Act of 1958 
                        (15 U.S.C. 662)), philanthropic organizations, 
                        and other institutions focused on expanding 
                        access to capital, are committed partners in 
                        the jobs accelerator partnership and willing to 
                        potentially invest in projects emerging from 
                        the jobs accelerator;
                            ``(ii) institutions of higher education, 
                        applied research institutions, workforce 
                        development entities, and community-based 
                        organizations are willing to partner with the 
                        jobs accelerator to provide workers with skills 
                        in computer science and other technology 
                        programs relevant to the industry cluster needs 
                        of the region, with an emphasis on the use of 
                        on-the-job training, registered 
                        apprenticeships, customized training, classroom 
                        occupational training, or incumbent worker 
                        training; and
                            ``(iii) employers are willing to hire 
                        workers to work remotely from the jobs 
                        accelerator in high-wage jobs;
                    ``(B) the ability of the eligible entity to provide 
                the non-Federal share as required under paragraph (2);
                    ``(C) the speed of available broadband service and 
                how the jobs accelerator plans to improve access to 
                high-speed broadband service, if necessary, and 
                leverage that broadband service for programs of the 
                jobs accelerator;
                    ``(D) the identification of a targeted industry 
                cluster, including a description of--
                            ``(i) data showing the existence of 
                        emergence of an industry cluster;
                            ``(ii) the importance of the industry 
                        cluster to economic growth in the region;
                            ``(iii) the specific needs and 
                        opportunities for growth in the industry 
                        cluster;
                            ``(iv) the unique assets a region has to 
                        support the industry cluster and to have a 
                        competitive advantage in that industry cluster;
                            ``(v) evidence of a concentration of firms 
                        or concentration of employees in the industry 
                        cluster; and
                            ``(vi) available industry-specific 
                        infrastructure that supports the industry 
                        cluster;
                    ``(E) the ability of the partnership to link rural 
                communities to markets, networks, industry clusters, 
                and other regional opportunities and assets--
                            ``(i) to improve the competitiveness of the 
                        rural region;
                            ``(ii) to repatriate United States jobs;
                            ``(iii) to foster high-wage job creation;
                            ``(iv) to support innovation and 
                        entrepreneurship; and
                            ``(v) to promote private investment in the 
                        rural regional economy;
                    ``(F) other grants or loans of the Secretary and 
                other Federal agencies that the jobs accelerator would 
                be able to leverage; and
                    ``(G) prospects for the proposed center and related 
                programming to have sustainability beyond the full 
                maximum length of assistance under this subsection, 
                including the maximum number of renewals.
            ``(4) Grant term and renewals.--
                    ``(A) Term.--The initial term of a grant under 
                paragraph (1) shall be 4 years.
                    ``(B) Renewal.--The Secretary may renew a grant 
                under paragraph (1) for an additional period of not 
                longer than 2 years if the Secretary is satisfied, 
                using the evaluation under subsection (e)(2), that the 
                grant recipient has successfully established a jobs 
                accelerator and related programming.
            ``(5) Geographic distribution.--To the maximum extent 
        practicable, the Secretary shall provide grants under paragraph 
        (1) for jobs accelerators and related programming in not fewer 
        than 25 States at any time.
    ``(c) Grant Amount.--A grant awarded under subsection (b) may be in 
an amount equal to--
            ``(1) not less than $500,000; and
            ``(2) not more than $2,000,000.
    ``(d) Use of Funds.--
            ``(1) In general.--Subject to paragraph (2), funds from a 
        grant awarded under subsection (b) may only be used--
                    ``(A) to construct, purchase, or equip a building 
                to serve as an innovation center, which may include--
                            ``(i) housing for business owners or 
                        workers;
                            ``(ii) co-working space, which may include 
                        space for remote work;
                            ``(iii) space for businesses to utilize 
                        with a focus on entrepreneurs and small and 
                        disadvantaged businesses but that may include 
                        collaboration with companies of all sizes;
                            ``(iv) job training programs; and
                            ``(v) efforts to utilize the innovation 
                        center as part of the development of a 
                        community downtown; and
                    ``(B) to support programs to be carried out at, or 
                in direct partnership with, the jobs accelerator that 
                support the objectives of the jobs accelerator, 
                including--
                            ``(i) linking rural communities to markets, 
                        networks, industry clusters, and other regional 
                        opportunities to support high-wage job 
                        creation, new business formation, and economic 
                        growth;
                            ``(ii) integrating small businesses into a 
                        supply chain;
                            ``(iii) creating or expanding 
                        commercialization activities for new business 
                        formation;
                            ``(iv) identifying and building assets in 
                        rural communities that are crucial to 
                        supporting regional economies;
                            ``(v) facilitating the repatriation of 
                        high-wage jobs to the United States;
                            ``(vi) supporting the deployment of 
                        innovative processes, technologies, and 
                        products;
                            ``(vii) enhancing the capacity of small 
                        businesses in regional industry clusters, 
                        including small and disadvantaged businesses;
                            ``(viii) increasing United States exports 
                        and business interaction with international 
                        buyers and suppliers;
                            ``(ix) developing the skills and expertise 
                        of local workforces, entrepreneurs, and 
                        institutional partners to support growing 
                        industry clusters, including the upskilling of 
                        incumbent workers;
                            ``(x) ensuring rural communities have the 
                        capacity and ability to carry out projects 
                        relating to housing, community facilities, 
                        infrastructure, or community and economic 
                        development to support regional industry 
                        cluster growth;
                            ``(xi) establishing training programs to 
                        meet the needs of employers in a regional 
                        industry cluster and prepare workers for high-
                        wage jobs; and
                            ``(xii) any other activities that the 
                        Secretary may determine to be appropriate.
            ``(2) Requirement.--
                    ``(A) In general.--Subject to subparagraph (B), not 
                more than 10 percent of a grant awarded under 
                subsection (b) shall be used for direct costs 
                associated with administering the grant.
                    ``(B) Increase.--The Secretary may increase the 
                percentage described in subparagraph (A) on a case-by-
                case basis.
    ``(e) Annual Activity Report and Evaluation.--Not later than 1 year 
after receiving a grant under this section, and annually thereafter for 
the duration of the grant, an eligible entity shall--
            ``(1) report to the Secretary on the activities funded with 
        the grant; and
            ``(2)(A) evaluate the progress that the eligible entity has 
        made toward the strategic objectives identified in the 
        application for the grant; and
            ``(B) measure that progress using performance measures 
        during the project period, including--
                    ``(i) high-wage jobs created;
                    ``(ii) high-wage jobs retained;
                    ``(iii) private investment leveraged;
                    ``(iv) businesses improved;
                    ``(v) new business formations;
                    ``(vi) new products or services commercialized;
                    ``(vii) improvement of the value of existing 
                products or services under development;
                    ``(viii) regional collaboration, as measured by 
                such metrics as--
                            ``(I) the number of organizations actively 
                        engaged in the industry cluster;
                            ``(II) the number of symposia held by the 
                        industry cluster, including organizations that 
                        are not located in the immediate region defined 
                        by the partnership; and
                            ``(III) the number of further cooperative 
                        agreements;
                    ``(ix) the number of education and training 
                activities relating to innovation;
                    ``(x) the number of jobs relocated from outside of 
                the United States to the region;
                    ``(xi) the amount and number of new equity 
                investments in industry cluster firms;
                    ``(xii) the amount and number of new loans to 
                industry cluster firms;
                    ``(xiii) the dollar increase in exports resulting 
                from the project activities;
                    ``(xiv) the percentage of employees for which 
                training was provided;
                    ``(xv) improvement in sales of participating 
                businesses;
                    ``(xvi) improvement in wages paid at participating 
                businesses; and
                    ``(xvii) improvement in income of participating 
                workers.
    ``(f) Interagency Task Force.--
            ``(1) In general.--The Secretary shall establish an 
        interagency Federal task force to support the network of jobs 
        accelerators by--
                    ``(A) providing successful applicants with 
                available information and technical assistance on 
                Federal resources relevant to the project and region;
                    ``(B) establishing a Federal support team comprised 
                of staff from participating agencies in the task force 
                that shall provide coordinated and dedicated support 
                services to jobs accelerators; and
                    ``(C) providing opportunities for the network of 
                jobs accelerators to share best practices and further 
                collaborate to achieve the purposes of this section.
            ``(2) Membership.--The task force established under 
        paragraph (1) shall--
                    ``(A) be co-chaired by--
                            ``(i) the Secretary of Commerce (or a 
                        designee); and
                            ``(ii) the Secretary (or a designee); and
                    ``(B) include--
                            ``(i) the Secretary of Education (or a 
                        designee);
                            ``(ii) the Secretary of Energy (or a 
                        designee);
                            ``(iii) the Secretary of Health and Human 
                        Services (or a designee);
                            ``(iv) the Secretary of Housing and Urban 
                        Development (or a designee);
                            ``(v) the Secretary of Labor (or a 
                        designee);
                            ``(vi) the Secretary of Transportation (or 
                        a designee);
                            ``(vii) the Secretary of the Treasury (or a 
                        designee);
                            ``(viii) the Administrator of the 
                        Environmental Protection Agency (or a 
                        designee);
                            ``(ix) the Administrator of the Small 
                        Business Administration (or a designee);
                            ``(x) the Federal Co-Chair of the 
                        Appalachian Regional Commission (or a 
                        designee);
                            ``(xi) the Federal Co-Chairman of the Board 
                        of the Delta Regional Authority (or a 
                        designee);
                            ``(xii) the Federal Co-Chair of the 
                        Northern Border Regional Commission (or a 
                        designee);
                            ``(xiii) national and local organizations 
                        that have relevant programs and interests that 
                        could serve the needs of the jobs accelerators;
                            ``(xiv) representatives of State and local 
                        governments or State and local economic 
                        development agencies; and
                            ``(xv) such other heads of Federal agencies 
                        and non-Federal partners as determined 
                        appropriate by the co-chairs of the task force.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 3. RURAL BUSINESS INVESTMENT PROGRAM.

    (a) Limitation on Rural Business Investment Companies Controlled by 
Farm Credit System Institutions.--Section 384J(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009cc-9(c)) is amended by 
striking ``25'' and inserting ``50''.
    (b) Reauthorization.--Section 384S of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009cc-18) is amended by striking 
``2018'' and inserting ``2023''.
    (c) Coordination With Small Business Investment Company Program.--
Subtitle H of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 384P (7 U.S.C. 2009cc-15) the 
following:

``SEC. 384Q. COORDINATION WITH SMALL BUSINESS INVESTMENT COMPANY 
              PROGRAM.

    ``(a) In General.--A rural business investment company shall be 
eligible to apply for a license under section 301(c) of the Small 
Business Investment Act of 1958 (15 U.S.C. 681(c)) to operate as a 
small business investment company under title III of that Act (15 
U.S.C. 681 et seq.).
    ``(b) Expedited Consideration.--To the maximum extent practicable, 
the Administrator of the Small Business Administration shall expedite 
the consideration of an application of a rural business investment 
company submitted in accordance with subsection (a).
    ``(c) Deferral of Interest Payments.--For the first debenture 
purchased or guaranteed by the Small Business Administration under 
section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 
683) that is issued with respect to a rural business investment company 
that is licensed in accordance with subsection (a)--
            ``(1) interest shall accrue in the same manner as other 
        debentures purchased or guaranteed under that section; and
            ``(2) during the first 5 years of the term of the 
        debenture, the rural business investment company shall not be 
        required to make payments with respect to the interest that 
        accrues on the debenture.
    ``(d) Memorandum of Understanding.--The Secretary may enter into a 
memorandum of understanding with the Administrator of the Small 
Business Administration--
            ``(1) to carry out this section; and
            ``(2) to carry out outreach activities to promote 
        application under subsection (a) to--
                    ``(A) rural business investment companies; and
                    ``(B) rural communities.''.

SEC. 4. BUSINESS AND INNOVATION SERVICES ESSENTIAL COMMUNITY 
              FACILITIES.

    Section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) is amended by adding at the end the following:
            ``(27) Business and innovation services essential community 
        facilities.--The Secretary may make loans and loan guarantees 
        under this subsection and grants under paragraphs (19), (20), 
        and (21) for essential community facilities for business and 
        innovation services, such as incubators, co-working spaces, 
        makerspaces, and residential entrepreneur and innovation 
        centers.''.
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