[Congressional Record Volume 149, Number 77 (Thursday, May 22, 2003)]
[Senate]
[Pages S7011-S7016]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JOHNSON (for himself, Mr. Kerry, and Mr. Smith):
  S. 1126. A bill to establish the Office of Native American Affairs 
within the Small Business Administration, to create the Native American 
Small Business Development Program, and for other purposes; to the 
Committee on Small Business and Entrepreneurship.
  Mr. JOHNSON. Mr. President, today, I proudly join with Senator Kerry 
and Senator Smith to reintroduce the Native American Small Business 
Development Act. This important legislation is designed to help 
American Indians, Alaska Natives, and Native Hawaiians to overcome 
barriers which inhibit business development and job creation. We 
greatly appreciate the support of the distinguished Senators who join 
us in sponsoring the legislation including Senators: Akaka, Baucus, 
Bingaman, Daschle, Cantwell, Murray, Stabenow.
  The communities served this initiative represent some of the most 
traditionally isolated, disadvantaged, and underserved populations in 
our country. Despite the unique and persistent challenges to business 
development in these areas, many of the supportive services the federal 
government provides to entrepreneurs are not available in these 
distressed regions. The

[[Page S7012]]

Native American Small Business Development Act endeavors to develop and 
disseminate culturally tailored business assistance to assure Native 
American businesses may secure and sustain long-term success.
  Native American communities continue to struggle with the social, 
economic, and cultural repercussions derived from persistent and 
pervasive poverty and unemployment. A recent report released by the 
U.S. Census Bureau, entitled Poverty in the United States: 2000, 
indicates that the ``three year average poverty rate for American 
Indians and Alaska Natives [from 1998-2000] was 25.9 percent. Higher 
than for any other race groups.''
  The Native American Small Business Development Act is a deliberate 
effort to enhance the availability of technical assistance to support 
entrepreneurship in Indian Country. The communities served by this 
initiative represent some of the most traditionally isolated, 
disadvantaged, and underserved populations in our country.
  Too many Native American communities are plagued by feelings of 
hopelessness and helplessness. We must work to transform this 
disappointment and discouragement into a sensible, workable, strategy 
for economic opportunity.
  According to U.S. Department of Commerce census data, unemployment 
rates on Indian Lands in the continental United States range up to 80 
percent compared to 5.6 percent for the U.S. as a whole. Census data 
also show that the poverty rate for Native Americans during the late 
1990s was 26 percent, compared to the national average of 12 percent. 
In fact, overall, Native American household income is only three-
quarters of the national average.
  This disparity is particularly evident in my home state of South 
Dakota where Native Americans represent over 8 percent of the State's 
population. While the overall State economy is relatively strong with a 
low 3.1 percent unemployment rate, the Native American population 
continues to suffer. South Dakota counties with Indian Reservations are 
ranked by the U.S. Census Bureau as among the most impoverished in the 
United States.
  Among the achievements included in the bill is the establishment of a 
statutory office within the U.S. Small Business Administration to focus 
on concerns specific to Native American populations. The Office of 
Native American Affairs will serve as an advocate in the SBA for the 
interests of Native Americans. In addition to administering the Native 
American Development Program, the Assistant Administrator will consult 
with Tribal Colleges, Tribal Governments, Alaska Native Corporations 
and Native Hawaiian Organizations to enhance the development and 
implementation of culturally specific approaches to support the growth 
and prosperity of Native American small businesses.
  Furthermore, the Act creates the Native American Development Program 
to provide necessary business development assistance. These services 
are vital to establish and support small businesses. The Federal 
Government currently invests to provide these services in communities 
throughout the country. It is past time for these services to be 
integrated into our efforts to promote self-sufficiency and economic 
development in Indian Country.

  In addition, we recognize that in order to remain competitive, 
businesses and entrepreneurs must be innovative and flexible to change. 
This legislation reflects the needs of businesses, tribes, and regional 
interests to pursue unique approaches that will complement local needs 
and improve the overall quality of services. Two pilot programs are 
integrated in this approach to promote new and creative solutions to 
assist American Indians to awaken economic opportunities in their 
communities.
  We must strive to eliminate the impediments that stifle Native 
American entrepreneurs. By providing business planning services and 
technical assistance to potential and existing small businesses, we can 
unlock the capacity for individuals and families to pursue their dreams 
of business ownership. Not only will these efforts combat poverty and 
unemployment, but they will bring new services and opportunities to 
communities that enhance the quality of life for local families.
  We must also work to improve access to investment capital to support 
economic and community development for Native Americans. As the 
Chairman of the Senate Banking Financial Institutions Subcommittee, I 
am conducting hearings last year to identify opportunities and 
techniques which may foster greater access to capital markets for 
Tribal and Native American entities.
  Together, these initiatives will help to turn an important corner as 
we endeavor to enhance the livelihood of the First Americans.
  I would like to thank Congressman Udall for his leadership in the 
U.S. House of Representatives in bringing these issues to the forefront 
and for his cooperation on this historic legislation. I would like to 
thank Senator John Kerry, the Ranking Member of the Senate Small 
Business and Entrepreneurship Committee, for his hard work on this 
legislation and his serious commitment to these critical issues. In 
addition, I would like to express my sincere appreciation to Senator 
Smith for his strong support of this effort. We are grateful to the 
many cosponsors who join us in introducing the bill today.
  I encourage the Senate to fully consider this historic legislation 
and to work expeditiously to enact it into law. The Native American 
Small Business Development Act will forge a more hopeful and prosperous 
future for Native American families and communities. By investing in 
adequate infrastructure and by making the appropriate tools available, 
we can empower individuals to pursue, achieve, and sustain economic 
opportunities that enrich their lives and their communities. The 
American dream will never be fully realized until it becomes a reality 
for all Americans. This legislation is critical to ensuring that 
economic growth and economic opportunity permeate the lives of Native 
American families.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1126

       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 Development Act''.

     SEC. 2. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 36 as section 37; and
       (2) by inserting after section 35 the following:

     ``SEC. 36. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT 
                   PROGRAM.

       ``(a) Definitions.--In this section--
       ``(1) the term `Alaska Native' has the same meaning as the 
     term `Native' in section 3(b) of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1602(b));
       ``(2) the term `Alaska Native corporation' has the same 
     meaning as the term `Native Corporation' in section 3(m) of 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
       ``(3) the term `Assistant Administrator' means the 
     Assistant Administrator of the Office of Native American 
     Affairs established under subsection (b);
       ``(4) the terms `center' and `Native American business 
     center' mean a center established under subsection (c);
       ``(5) the term `Native American business development 
     center' means an entity providing business development 
     assistance to federally recognized tribes and Native 
     Americans under a grant from the Minority Business 
     Development Agency of the Department of Commerce;
       ``(6) the term `Native American small business concern' 
     means a small business concern that is owned and controlled 
     by--
       ``(A) a member of an Indian tribe or tribal government;
       ``(B) an Alaska Native or Alaska Native corporation; or
       ``(C) a Native Hawaiian or Native Hawaiian organization;
       ``(7) the term `Native Hawaiian' has the same meaning as in 
     section 625 of the Older Americans Act of 1965 (42 U.S.C. 
     3057k);
       ``(8) the term `Native Hawaiian organization' has the same 
     meaning as in section 8(a)(15) of this Act;
       ``(9) the term `tribal college' has the same meaning as the 
     term `tribally controlled college or university' has in 
     section 2(a)(4) of the Tribally Controlled Community College 
     Assistance Act of 1978 (25 U.S.C. 1801(a)(4));
       ``(10) the term `tribal government' has the same meaning as 
     the term `Indian tribe' has in section 7501(a)(9) of title 
     31, United States Code; and
       ``(11) the term `tribal lands' means all lands within the 
     exterior boundaries of any Indian reservation.

[[Page S7013]]

       ``(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 Assistant Administrator, shall 
     implement the Administration's programs for the development 
     of business enterprises by Native Americans.
       ``(2) Purpose.--The purpose of the Office of Native 
     American Affairs is to assist Native American entrepreneurs 
     to--
       ``(A) start, operate, and grow small business concerns;
       ``(B) develop management and technical skills;
       ``(C) seek Federal procurement opportunities;
       ``(D) increase employment opportunities for Native 
     Americans through the start and expansion of small business 
     concerns; and
       ``(E) increase the access of Native Americans to capital 
     markets.
       ``(3) Assistant administrator.--
       ``(A) Appointment.--The Administrator shall appoint a 
     qualified individual to serve as Assistant Administrator of 
     the Office of Native American Affairs in accordance with this 
     paragraph.
       ``(B) Qualifications.--The Assistant Administrator 
     appointed under subparagraph (A) shall have--
       ``(i) knowledge of the Native American culture; and
       ``(ii) experience providing culturally tailored small 
     business development assistance to Native Americans.
       ``(C) Employment status.--The Assistant Administrator shall 
     be a Senior Executive Service position under section 
     3132(a)(2) of title 5, United States Code, and shall serve as 
     a noncareer appointee, as defined in section 3132(a)(7) of 
     title 5, United States Code.
       ``(D) Responsibilities and duties.--The Assistant 
     Administrator shall--
       ``(i) administer and manage the Native American Small 
     Business Development program established under this section;
       ``(ii) recommend the annual administrative and program 
     budgets for the Office of Native American Affairs;
       ``(iii) consult with Native American business centers in 
     carrying out the program established under this section;
       ``(iv) recommend appropriate funding levels;
       ``(v) review the annual budgets submitted by each applicant 
     for the Native American Small Business Development program;
       ``(vi) select applicants to participate in the program 
     under this section;
       ``(vii) implement this section; and
       ``(viii) maintain a clearinghouse to provide for the 
     dissemination and exchange of information between Native 
     American business centers.
       ``(E) Consultation requirements.--In carrying out the 
     responsibilities and duties described in this paragraph, the 
     Assistant Administrator shall confer with and seek the advice 
     of--
       ``(i) Administration officials working in areas served by 
     Native American business centers and Native American business 
     development centers;
       ``(ii) the Bureau of Indian Affairs of the Department of 
     the Interior;
       ``(iii) tribal governments;
       ``(iv) tribal colleges;
       ``(v) Alaska Native corporations; and
       ``(vi) Native Hawaiian organizations.
       ``(c) Native American Small Business Development Program.--
       ``(1) Authorization.--
       ``(A) In general.--The Administration, through the Office 
     of Native American Affairs, shall provide financial 
     assistance to tribal governments, tribal colleges, Native 
     Hawaiian organizations, and Alaska Native corporations to 
     create 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 overcome 
     obstacles impeding the creation, development, and expansion 
     of small business concerns, in accordance with this section, 
     by--
       ``(i) reservation-based American Indians;
       ``(ii) Alaska Natives; and
       ``(iii) Native Hawaiians.
       ``(2) 5-year projects.--
       ``(A) In general.--Each Native American business center 
     that receives assistance under paragraph (1)(A) shall conduct 
     5-year projects that offer 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) utilizing 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 small 
     business concerns that are owned by--
       ``(i) American Indians or tribal governments, and located 
     on or near tribal lands;
       ``(ii) Alaska Natives or Alaska Native corporations; or
       ``(iii) Native Hawaiians or Native Hawaiian organizations.
       ``(3) Form of federal financial assistance.--
       ``(A) Documentation.--
       ``(i) In general.--The financial assistance to Native 
     American business centers authorized under this subsection 
     may be made by grant, contract, or cooperative agreement.
       ``(ii) Exception.--Financial assistance under this 
     subsection to Alaska Native corporations or Native Hawaiian 
     organizations may only be made by grant.
       ``(B) Payments.--
       ``(i) Timing.--Payments made under this subsection may be 
     disbursed in an annual lump sum or in periodic installments, 
     at the request of the recipient.
       ``(ii) Advance.--The Administration may disburse not more 
     than 25 percent of the annual amount of Federal financial 
     assistance awarded to a Native American small business center 
     after notice of the award has been issued.
       ``(iii) No matching requirement.--The Administration shall 
     not require a grant recipient to match grant funding received 
     under this subsection with non-Federal resources as a 
     condition of receiving the grant.
       ``(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 
     under-served small business concerns located on or near 
     tribal lands, to the extent that such contract or cooperative 
     agreement is consistent with 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 Administration shall evaluate and 
     rank applicants in accordance with predetermined selection 
     criteria that shall be stated in terms of relative 
     importance.
       ``(ii) Public notice.--The criteria required by this 
     paragraph and their relative importance shall be made 
     publicly available, within a reasonable time, and stated in 
     each solicitation for applications made by the 
     Administration.
       ``(iii) Considerations.--The criteria required by this 
     paragraph 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 Small Business 
     Administration to provide services in Native American 
     communities; and
       ``(V) the proposed location for the Native American 
     business center site, 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.

       ``(6) Program examination.--
       ``(A) In general.--Each Native American business center 
     established pursuant to this subsection shall annually 
     provide the Administration with an itemized cost breakdown of 
     actual expenditures incurred 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 such renewal, if the Administration 
     determines that--

       ``(I) the center has failed to provide adequate information 
     required to be provided under subparagraph (A), or the 
     information provided by the center is inadequate; or
       ``(II) the center has failed to provide adequate 
     information required to be provided by the center for 
     purposes of the report of the Administration under 
     subparagraph (E).

       ``(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

[[Page S7014]]

     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, it shall not suspend, 
     terminate, or fail to renew or extend any such contract or 
     cooperative agreement unless the Administrator provides the 
     center with written notification setting forth the reasons 
     therefore and affords the center an opportunity for a 
     hearing, appeal, or other administrative proceeding under 
     chapter 5 of title 5, United States Code.
       ``(E) Management report.--
       ``(i) In general.--The Administration shall prepare and 
     submit to the Committee on Small Business of the House of 
     Representatives and the Committee on Small Business and 
     Entrepreneurship of the Senate 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 created;
       ``(III) the number of existing businesses seeking to expand 
     employment;
       ``(IV) jobs created or maintained, on an annual basis, by 
     Native American small business concerns assisted by the 
     center since receiving funding under this Act;
       ``(V) to the maximum extent practicable, the capital 
     investment and loan financing utilized by emerging and 
     expanding businesses that were assisted by a Native American 
     business center; and
       ``(VI) the most recent examination, as required under 
     subparagraph (B), and the subsequent determination made by 
     the Administration under that subparagraph.

       ``(7) Annual report.--Each entity receiving financial 
     assistance under this subsection shall annually report to the 
     Administration on the services provided with such financial 
     assistance, including--
       ``(A) the number of individuals assisted, categorized by 
     ethnicity;
       ``(B) the number of hours spent providing counseling and 
     training for those individuals;
       ``(C) the number of startup small business concerns created 
     or maintained;
       ``(D) the gross receipts of assisted small business 
     concerns;
       ``(E) the number of jobs created or maintained at assisted 
     small business concerns; and
       ``(F) the number of Native American jobs created or 
     maintained at assisted small business concerns.
       ``(8) Record retention.--
       ``(A) Applications.--The Administration shall maintain a 
     copy of each application submitted under this subsection for 
     not less than 7 years.
       ``(B) Annual reports.--The Administration shall maintain 
     copies of the information collected under paragraph (6)(A) 
     indefinitely.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated $5,000,000 for each of the 
     fiscal years 2004 through 2008, to carry out the Native 
     American Small Business Development Program, authorized under 
     subsection (c).''.

     SEC. 3. PILOT PROGRAMS.

       (a) Definitions.--In this section:
       (1) Incorporation by reference.--The terms defined in 
     section 36(a) of the Small Business Act (as added by this 
     Act) have the same meanings as in that section 36(a) when 
     used in this section.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Small Business Administration.
       (3) Joint project.--The term `joint project' means the 
     combined resources and expertise of 2 or more distinct 
     entities at a physical location dedicated to assisting the 
     Native American community;
       (b) Native American Development Grant Pilot Program.--
       (1) Authorization.--
       (A) In general.--There is established a 4-year pilot 
     program under which the Administration is authorized to award 
     Native American development grants to provide culturally-
     tailored business development training and related services 
     to Native Americans and Native American small business 
     concerns.
       (B) Eligible organizations.--The grants authorized under 
     subparagraph (A) may be awarded to--
       (i) any small business development center; or
       (ii) any private, nonprofit organization that--

       (I) has members of an Indian tribe comprising a majority of 
     its board of directors;
       (II) is a Native Hawaiian organization; or
       (III) is an Alaska Native corporation.

       (C) Amounts.--The Administration shall not award a grant 
     under this subsection in an amount which exceeds $100,000 for 
     each year of the project.
       (D) Grant duration.--Each grant under this subsection shall 
     be awarded for not less than a 2-year period and not more 
     than a 4-year period.
       (2) Conditions for participation.--Each entity desiring a 
     grant under this subsection shall submit an application to 
     the Administration that contains--
       (A) a certification that the applicant--
       (i) is a small business development center or a private, 
     nonprofit organization under paragraph (1)(B)(i);
       (ii) employs an executive director or program manager to 
     manage the facility; and
       (iii) agrees--

       (I) to a site visit 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 effective experience of 
     the applicant in--
       (i) conducting financial, management, and marketing 
     assistance programs designed to impart or upgrade 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 universities, tribal governments, 
     or tribal colleges; and
       (iv) the prudent management of finances and staffing;
       (E) the location where the applicant will provide training 
     and services to Native Americans; and
       (F) a multiyear plan, corresponding to the length of the 
     grant, that describes--
       (i) the number of Native Americans and Native American 
     small business concerns to be served by the grant;
       (ii) 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.
       (3) Review of applications.--The Administration shall--
       (A) evaluate and rank applicants under paragraph (2) in 
     accordance with predetermined selection criteria that is 
     stated in terms of relative importance;
       (B) include such criteria in each solicitation under this 
     subsection and make such information available to the public; 
     and
       (C) approve or disapprove each completed application 
     submitted under this subsection not more than 60 days after 
     submission.
       (4) Annual report.--Each recipient of a Native American 
     development grant under this subsection shall annually report 
     to the Administration on the impact of the grant funding, 
     including--
       (A) the number of individuals assisted, categorized by 
     ethnicity;
       (B) the number of hours spent providing counseling and 
     training for those individuals;
       (C) the number of startup small business concerns created 
     or maintained with assistance from a Native American business 
     center;
       (D) the gross receipts of assisted small business concerns;
       (E) the number of jobs created or maintained at assisted 
     small business concerns; and
       (F) the number of Native American jobs created or 
     maintained at assisted small business concerns.
       (5) Record retention.--
       (A) Applications.--The Administration shall maintain a copy 
     of each application submitted under this subsection for not 
     less than 7 years.
       (B) Annual reports.--The Administration shall maintain 
     copies of the information collected under paragraph (4) 
     indefinitely.
       (c) American Indian Tribal Assistance Center Grant Pilot 
     Program.--
       (1) Authorization.--
       (A) In general.--There is established a 4-year pilot 
     program, under which the Administration shall award not less 
     than 3 American Indian Tribal Assistance Center grants to 
     establish joint projects to provide culturally tailored 
     business development assistance to prospective and current 
     owners of small business concerns located on or near tribal 
     lands.
       (B) Eligible organizations.--
       (i) Class 1.--Not fewer than 1 grant shall be awarded to a 
     joint project performed by a Native American business center, 
     a Native American business development center, and a small 
     business development center.
       (ii) Class 2.--Not fewer than 2 grants shall be awarded to 
     joint projects performed by a Native American business center 
     and a Native American business development center.
       (C) Amounts.--The Administration shall not award a grant 
     under this subsection in an amount which exceeds $200,000 for 
     each year of the project.
       (D) Grant duration.--Each grant under this subsection shall 
     be awarded for a 3-year period.
       (2) Conditions for participation.--Each entity desiring a 
     grant under this subsection shall submit to the 
     Administration a joint application that contains--
       (A) a certification that each participant of the joint 
     application--

[[Page S7015]]

       (i) is either a Native American Business Center, a Native 
     American Business Development Center, or a Small Business 
     Development Center;
       (ii) employs an executive director or program manager to 
     manage the center; and
       (iii) as a condition of receiving the American Indian 
     Tribal Assistance Center grant, agrees--

       (I) to an annual programmatic and financial examination; 
     and
       (II) to the maximum extent practicable, to remedy any 
     problems identified pursuant to that examination;

       (B) information demonstrating an historic commitment to 
     providing assistance to Native Americans--
       (i) residing on or near tribal lands; or
       (ii) operating a small business concern on or near tribal 
     lands;
       (C) information demonstrating that each participant of the 
     joint application has the ability and resources to meet the 
     needs, including the cultural needs of the Native Americans 
     to be served by the grant;
       (D) 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;
       (E) information demonstrating the effective experience of 
     each participant of the joint application in--
       (i) conducting financial, management, and marketing 
     assistance programs, as described above, designed to impart 
     or upgrade the business skills of current or prospective 
     Native American business owners; and
       (ii) the prudent management of finances and staffing; and
       (F) a plan for the length of the grant, that describes--
       (i) the number of Native Americans and Native American 
     small business concerns to be served by the grant; and
       (ii) the training and services to be provided.
       (3) Review of applications.--The Administration shall--
       (A) evaluate and rank applicants under paragraph (2) in 
     accordance with predetermined selection criteria that is 
     stated in terms of relative importance;
       (B) include such criteria in each solicitation under this 
     subsection and make such information available to the public; 
     and
       (C) approve or disapprove each application submitted under 
     this subsection not more than 60 days after submission.
       (4) Annual report.--Each recipient of an American Indian 
     tribal assistance center grant under this subsection shall 
     annually report to the Administration on the impact of the 
     grant funding received during the reporting year, and the 
     cumulative impact of the grant funding received since the 
     initiation of the grant, including--
       (A) the number of individuals assisted, categorized by 
     ethnicity;
       (B) the number of hours of counseling and training provided 
     and workshops conducted;
       (C) the number of startup business concerns created or 
     maintained with assistance from a Native American business 
     center;
       (D) the gross receipts of assisted small business concerns;
       (E) the number of jobs created or maintained at assisted 
     small business concerns; and
       (F) the number of Native American jobs created or 
     maintained at assisted small business concerns.
       (5) Record retention.--
       (A) Applications.--The Administration shall maintain a copy 
     of each application submitted under this subsection for not 
     less than 7 years.
       (B) Annual reports.--The Administration shall maintain 
     copies of the information collected under paragraph (4) 
     indefinitely.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) $1,000,000 for each of the fiscal years 2004 through 
     2007, to carry out the Native American Development Grant 
     Pilot Program, authorized under subsection (b); and
       (2) $1,000,000 for each of the fiscal years 2004 through 
     2007, to carry out the American Indian Tribal Assistance 
     Center Grant Pilot Program, authorized under subsection (c).

  Mr. KERRY. Mr. President, I am pleased today to join with my 
colleagues, Senators Johnson and Smith, as well as the cosponsors of 
our legislation, Senators Akaka, Baucus, Bingaman, Cantwell, Daschle, 
Murray, and Stabenow in introducing the Native American Small Business 
Development Act.
  As many of my colleagues are aware, last Congress the Committee on 
Small Business and Entrepreneurship unanimously passed nearly identical 
legislation, S. 2335, yet the bill was not taken up by the full Senate. 
Today, Senator Johnson, Senator Smith and I are reintroducing this bill 
because we recognize that there is an even a greater need for this 
legislation on tribal lands across the Nation. The economy continues to 
slump, access to capital is even more limited, and state funding for 
small business initiatives is being pulled back.
  According to a report released by the U.S. Census Bureau, the ``three 
year average poverty rate for American Indians and Alaska Natives [from 
1998-2000] was 25.9 percent. Higher than for any other race groups.'' 
With an unemployment rate well above the national average and household 
income at just three-quarters of the national average, Native American 
communities need a commitment from the Federal government that we will 
help them, particularly during these difficult economic times. To 
reaffirm this commitment, the Johnson-Kerry-Smith bill provides Native 
Americans the resources they need to take advantage of the 
opportunities of entrepreneurship.
  Mr. President, this legislation bears the same name as legislation 
that recently passed the House, H.R. 1166, which was reintroduced by 
Congressman Tom Udall, a recognized leader in promoting the interests 
of American Indians. I would like to thank Congressman Udall for his 
work in stewarding the Native American Small Business Development Act 
through the House, this Congress and last, and for his assistance in 
working with Senators Johnson and Smith and me in drafting the Senate 
version of our legislation. And I would specifically like to thank 
Senator Smith for his continued support on this issue.
  I would again like to thank the National Indian Business Association, 
the National Center for American Indian Enterprise Development, the 
Association of Small Business Development Centers, the Oregon Native 
American Business Entrepreneurial Network (ONABEN), Native American 
Management Services, Inc., and all of the tribes that met with us or 
provided information to help in the drafting of this legislation.
  The Senate version of the Native American Small Business Development 
Act, while incorporating the heart of the Udall legislation, is more 
comprehensive and provides greater assistance to Native American 
communities. Senator Johnson, who serves on the Indian Affairs 
Committee, and I, as the lead Democrat on the Senate Committee on Small 
Business and Entrepreneurship, were able to combine the resources and 
experiences of our committees in developing this legislation.
  Mr. President, our need to fashion a more comprehensive business 
assistance package for Native American small businesses stems in part 
from a growing lack of commitment from the Small Business 
Administration (SBA) to our Native American communities under 
this Administration.

  While I applaud the Bush Administration for responding to 
congressional requests by including $1 million in the Administration's 
FY 2003 budget request for Native American outreach, I was disappointed 
that it did not seek the full level of $2.5 million requested in a 
letter I sent with my colleagues Senators Daschle, Wellstone, Johnson, 
Bingaman and Baucus. Our request specifically sought funding for the 
SBA's Tribal Business Information Center (TBIC) program, an initiative 
started and successfully operated under the Clinton Administration. The 
TBIC program was designed to address the unique conditions faced by 
American Indians when they seek to start or expand small businesses.
  Mr. President, I am disappointed that the Administration has 
eliminated all funding for Native American outreach in FY2004. With an 
average unemployment rate on reservations as high as 43 percent, it is 
inconceivable that two years of outreach is sufficient to have met our 
shared goal of building sustainable economic opportunities in those 
communities.
  Mr. President, I do not believe that anyone in this Congress would 
dispute that economic development in Indian Country has often been 
difficult to achieve and that one important way to help American 
Indians who live on reservations is to provide them with assistance to 
open and run their own small businesses. Helping Native Americans open 
and run small businesses not only instills a sense of pride in the 
owner and his or her community, it also provides much-needed job 
opportunities, as well as other economic benefits.
  Although underfunded, the TBIC program has provided assistance to a 
number of small businesses on Indian reservations. TBICs have the 
support of the American Indian communities they serve because they 
provide desperately

[[Page S7016]]

needed, culturally tailored business development assistance in those 
communities. The Administration should be seeking to strengthen its 
commitment to programs that assist Native American communities. 
Unfortunately, the SBA cut off TBIC funding on March 31, 2002, and now 
14 months later, has not met a request by a bipartisan group of 
Senators to begin the reprogramming process in order to keep the TBICs 
open.
  The Native American Small Business Development Act will ensure that 
the SBA's programs to assist Native American communities cannot be 
dissolved by making the SBA's Office of Native American Affairs (ONAA) 
and its Assistant Administrator permanent. Our legislation would also 
create a statutory grant program, known as the Native American 
Development grant program, to assist Native Americans. It would also 
establish two pilot programs to try new means of assisting Native 
American communities and require Native American communities to be 
consulted regarding the future of SBA programs designed to assist them. 
In short, this legislation will ensure that our Native American 
communities receive the adequate assistance they need to help start and 
grow small businesses.
  The ONAA will be responsible for helping Native Americans and Native 
American communities start, operate, and grow small businesses; develop 
management and technical skills; seek out Federal procurement 
opportunities; increase employment opportunities through the start and 
expansion of small business concerns; and increase their access to 
capital markets.
  To be selected to serve as the Assistant Administrator for ONAA, a 
candidate must have knowledge of Native American cultures and 
experience providing culturally tailored small business development 
assistance to Native Americans. Under our legislation, the Assistant 
Administrator would be statutorily required to consult with Tribal 
Colleges and Tribal Governments, Alaska Native Corporations (ANC) and 
Native Hawaiian Organizations (NHO) when carrying out responsibilities 
under this legislation, which would give Native American communities a 
true voice within the SBA. The Assistant Administrator for ONAA would 
be responsible for administering the Native American Development 
program and the pilot programs created by the Native American Small 
Business Development Act.

  The Native American Development program is designed to be the SBA's 
primary program for providing business development assistance to Native 
American communities. To offer this support, to the SBA will provide 
financial assistance in establish and keep Native American Business 
Centers (NABC) in operation. Financial assistance under the Native 
American Development program would be available to Tribal Governments 
and Tribal Colleges. Unlike the SBA's TBIC program, however, ANCs and 
NHOs would also be eligible for the grants.
  NABCs would address the unique conditions faced by reservation-based 
American Indians, as well as Native Hawaiians and Native Alaskans, in 
their efforts to create, develop and expand small business concerns. 
Grant funding would be used by the NABCs to provide culturally tailored 
financial education assistance, management education assistance, and 
marketing education assistance.
  The first pilot program under the legislation establishes a Native 
American development grant. This grant is modeled after the Udall 
legislation and is designed to bring the expertise of SBA's Small 
Business Development Centers (SBDC) to Native American Communities. 
Additionally, any private nonprofit organization, which has members of 
an Indian tribe comprising a majority of its board of governors or is 
an NHO or an ANC, may also apply for the grant. Nonprofits were 
included in the Senate version thanks to the thoughtful input of 
Senator Cantwell. Many American Indian communities in Washington state 
are served by an organization called ONABEN, which provides SBDC-like 
services to Native American communities in Washington, Oregon, Idaho, 
and California. Organizations like ONABEN, which also has the strong 
support of Senator Smith, should be encouraged to continue their good 
work assisting Native American communities, and including them in the 
grant program available to SBDCs was an important addition to the 
legislation.
  Finally, our legislation establishes a second pilot program to try a 
unique experiment in Indian Country. Grant funding would be made 
available to establish American Indian Tribal Assistance Centers. These 
centers will consist of joint entitles, such as a partnership between 
an NABC, a Native American development center (which receive grants 
from the Department of Commerce) and possibly an SBDC. The purpose of 
this grant is to coordinate experts from various entities to provide 
culturally tailored business development assistance to prospective and 
current owners of small business concerns on or near Tribal Lands.
  Mr. President, I would again like to thank Senators Johnson and Smith 
and all of the cosponsors of this important legislation to assist our 
Native American communities. I would also, again like to thank 
Congressman Udall for taking the lead in the House on providing 
critical assistance for small businesses in Native American 
communities. I would urge all of my colleagues to cosponsor this 
legislation to help us fulfill our commitment to Native American 
communities.
                                 ______