[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 294 Enrolled Bill (ENR)]

        S.294

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 An Act


 
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. 5304).
        (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. 5304).
        (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 as 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 
        under the program 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.--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.
        (5) No duplicative grants.--An eligible applicant shall not be 
    awarded a grant under the program that is duplicative of existing 
    Federal funding from another source.
    (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 
        subparagraphs (A) and (B) 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 
$5,000,000 for each of fiscal years 2020 through 2024.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.