[Congressional Record Volume 156, Number 96 (Thursday, June 24, 2010)]
[Senate]
[Pages S5442-S5444]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU (for herself and Mr. Dorgan):
  S. 3534. A bill to establish a Native American entrepreneurial 
development program in the Small Business Administration; to the 
Committee on Small Business and Entrepreneurship.
  Ms. LANDRIEU. Mr. President, as Chair of the Committee on Small 
Business and Entrepreneurship, I am pleased to introduce the Native 
American Small Business Assistance and Entrepreneurial Growth Act of 
2010. This vital and timely legislation codifies and builds upon the 
Small Business Administration's, SBA, existing efforts through the 
Office of Native American Affairs, which is responsible for overseeing 
and implementing programs that are specifically tailored to meet the 
needs of the Native American community. By strengthening and improving 
these programs, the SBA will be able to reach even more Native 
Americans, helping them to achieve their dream of starting or growing 
their own small businesses and spurring vital and necessary growth 
within tribal communities.
  According to the most recent report released by the U.S. Census 
bureau, the ``three year average poverty rate for American Indians and 
Alaska Natives was 25.9 percent higher than for any other race 
groups.'' Additionally, research shows that entrepreneurial development 
is playing a significant role in promoting healthy tribal economies, 
and fostering much needed economic growth in various industries. Data 
from the 2000 U.S. Census shows that since 1997, the number of Native 
American-owned businesses has risen by 84 percent to 197,300, and that 
their gross incomes have increased by 179 percent to $34.5 billion.
  However, in the face of historically high unemployment and tight 
credit, particularly for Native Americans, starting a business has 
never been more difficult. During the 111th Congress, the Committee has 
heard from industry experts, organizational leaders and entrepreneurs 
working in or on behalf of Native American communities. From them, we 
know that, despite the growth we are seeing in Native American-owned 
businesses, more resources are needed to provide additional technical 
assistance and business development opportunities so as to ensure the 
economic sustainability and growth within tribal communities. According 
to the Aspen Institute, ``training and technical assistance are 
arguably the most important components of microenterprise development 
services in the United States, particularly when those services are 
aimed at low-income clients.'' Additionally, according to the 
Corporation for Enterprise Development, this is particularly true for 
Native American entrepreneurs operating in environments that have not 
traditionally been geared towards private enterprise. For these 
reasons, it is critical that we do more to provide necessary resources 
for Native American entrepreneurial development programs that are 
working to address critical sustainability issues in tribal 
communities.
  That is why today I am introducing the Native American Small Business 
Assistance and Entrepreneurial Growth Act of 2010. Since its 
establishment, SBA's Office of Native American Affairs worked to 
promote and support Native American entrepreneurs and to encourage 
important entrepreneurial activity in Native American communities. This 
legislation will further enhance and improve the existing programs 
within the Office of Native American Affairs, as well as create a new 
program that provides financial assistance to eligible entities to 
create Native American business centers which will conduct projects to 
provide culturally tailored business development training and related 
services to Native Americans and Native American small business 
concerns.
  In introducing this important piece of legislation today, I would 
note that many of the provisions in this bill were included in S. 1229, 
the Entrepreneurial Development Act of 2009, which I introduced earlier 
this Congress and which passed out of Committee with unanimous and bi-
partisan support in June of 2009. It is also the basis for many of the 
SBA related provisions included in the Native American Employment Act 
of 2010 that Senator Dorgan, Chairman of the U.S. Senate Committee on 
Indian Affairs introduced earlier this month. Given the importance of 
this legislation to hundreds of thousands of Native American-owned 
businesses, and the potential we have before us to strengthen one of 
America's greatest emerging markets, I have decided to re-introduce 
these provisions as a stand-alone bill. I look forward to working with 
my colleagues in the Senate to bring this legislation to the 
President's desk in the coming months.
  In closing, I would like to thank Chairman Dorgan for his continued 
leadership on behalf of existing and future Native American small 
business owners, and especially for his cosponsorship of this important 
legislation. Chairman Dorgan has been a tireless advocate for Native 
American communities across the country and in his home state of North 
Dakota, and I am pleased to have his support on this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3534

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Native American Small 
     Business Assistance and Entrepreneurial Growth Act of 2010''.

     SEC. 2. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Associate administrator.--The term `Associate 
     Administrator' means the Associate Administrator of the 
     Office of Native American Affairs established under 
     subsection (b).
       ``(2) Center; native american business center.--The terms 
     `center' and `Native American business center' mean a center 
     established under subsection (c).
       ``(3) Eligible applicant.--The term `eligible applicant' 
     means--
       ``(A) a tribal college;
       ``(B) a private, nonprofit organization--
       ``(i) that provides business and financial or procurement 
     technical assistance to 1 or more Native American 
     communities; and
       ``(ii) that is dedicated to assisting one or more Native 
     American communities; or
       ``(C) a small business development center, women's business 
     center, or other private organization participating in a 
     joint project.
       ``(4) Joint project.--The term `joint project' means a 
     project that--
       ``(A) combines the resources and expertise of 2 or more 
     distinct entities at a physical location dedicated to 
     assisting the Native American community; and
       ``(B) submits to the Administration a joint application 
     that contains--
       ``(i) a certification that each participant of the 
     project--

       ``(I) is an eligible applicant;
       ``(II) employs an executive director or program manager to 
     manage the center; and

       ``(ii) information demonstrating a record of commitment to 
     providing assistance to Native Americans and;
       ``(iii) information demonstrating that the participants in 
     the joint project have the ability and resources to meet the 
     needs, including the cultural needs, of the Native Americans 
     to be served by the project.
       ``(5) Native american small business concern.--The term 
     `Native American small business concern' means a small 
     business concern that is at least 51 percent owned and 
     controlled by --
       ``(A) an Indian tribe or a Native Hawaiian Organization, as 
     the terms are described in paragraphs (13) and (15) of 
     section 8(a), respectively; or
       ``(B) 1 or more individuals members of an Indian tribe or 
     Native Hawaiian Organization.
       ``(6) Native american small business development program.--
     The term `Native American small business development program' 
     means the program established under subsection (c).

[[Page S5443]]

       ``(7) Small business concern.--The term `small business 
     concern' has the same meaning as in section 3.
       ``(8) Small business development center.--The term `small 
     business development center' means a small business 
     development center described in section 21.
       ``(9) Tribal college.--The term `tribal college' has the 
     meaning given the term `tribally controlled college or 
     university' in section 2(a) of the Tribally Controlled 
     Community College Assistance Act of 1978 (25 U.S.C. 1801(a)).
       ``(10) Tribal land.--The term `tribal land' has the meaning 
     given the term `reservation' in section 3 of the Indian 
     Financing Act ( 25 U.S.C. 1452).
       ``(b) Office of Native American Affairs.--
       ``(1) Establishment.--There is established within the 
     Administration the Office of Native American Affairs, which, 
     under the direction of the Associate Administrator, shall 
     implement the programs of the Administration for the 
     development of business enterprises by Native Americans.
       ``(2) Purpose.--The purpose of the Office of Native 
     American Affairs is to help Native American small business 
     concerns--
       ``(A) to start, operate, and increase the business of small 
     business concerns;
       ``(B) to develop management and technical skills;
       ``(C) to seek Federal procurement opportunities;
       ``(D) to increase employment opportunities for Native 
     Americans through the establishment and expansion of small 
     business concerns; and
       ``(E) to increase the access of Native Americans to capital 
     markets.
       ``(3) Associate administrator.--
       ``(A) Appointment.--The Administrator shall appoint a 
     qualified individual to serve as Associate Administrator of 
     the Office of Native American Affairs in accordance with this 
     paragraph.
       ``(B) Qualifications.--The Associate Administrator 
     appointed under subparagraph (A) shall have--
       ``(i) knowledge of Native American culture; and
       ``(ii) experience providing culturally tailored small 
     business development assistance to Native Americans.
       ``(C) Employment status.--The Administrator shall establish 
     the position of Associate Administrator, who shall--
       ``(i) be an appointee in the Senior Executive Service (as 
     defined in section 3132(a) of title 5, United States Code); 
     and
       ``(ii) shall report to and be responsible directly to the 
     Administrator.
       ``(D) Responsibilities and duties.--The Associate 
     Administrator shall--
       ``(i) administer and manage the Native American small 
     business development program;
       ``(ii) formulate, execute, and promote the policies and 
     programs of the Administration that provide assistance to 
     small business concerns owned and controlled by Native 
     Americans;
       ``(iii) act as an ombudsman for full consideration of 
     Native Americans in all programs of the Administration;
       ``(iv) recommend the annual administrative and program 
     budgets for the Office of Native American Affairs;
       ``(v) consult with Native American business centers in 
     carrying out the Native American small business development 
     program;
       ``(vi) recommend appropriate funding levels;
       ``(vii) review the annual budgets submitted by each 
     applicant for the Native American small business development 
     program;
       ``(viii) select applicants to participate in the Native 
     American small business development program;
       ``(ix) implement this section; and
       ``(x) maintain a clearinghouse for the dissemination and 
     exchange of information between all Administration-sponsored 
     business centers.
       ``(E) Consultation requirements.--In carrying out the 
     responsibilities and duties described in this paragraph, the 
     Associate Administrator shall confer with and seek the advice 
     of--
       ``(i) officials of the Administration working in areas 
     served by Native American business centers; and
       ``(ii) eligible applicants.
       ``(c) Native American Small Business Development Program.--
       ``(1) Financial assistance.--
       ``(A) In general.--The Administration, acting through the 
     Associate Administrator, shall provide financial assistance 
     to eligible applicants to establish Native American business 
     centers in accordance with this section.
       ``(B) Use of funds.--The financial and resource assistance 
     provided under this subsection shall be used to establish a 
     Native American business center to overcome obstacles 
     impeding the establishment, development, and expansion of 
     small business concerns, in accordance with this section.
       ``(2) 5-year projects.--
       ``(A) In general.--Each Native American business center 
     that receives assistance under paragraph (1)(A) shall conduct 
     a 5-year project that offers culturally tailored business 
     development assistance in the form of--
       ``(i) financial education, including training and 
     counseling in--

       ``(I) applying for and securing business credit and 
     investment capital;
       ``(II) preparing and presenting financial statements; and
       ``(III) managing cash flow and other financial operations 
     of a business concern;

       ``(ii) management education, including training and 
     counseling in planning, organizing, staffing, directing, and 
     controlling each major activity and function of a small 
     business concern; and
       ``(iii) marketing education, including training and 
     counseling in--

       ``(I) identifying and segmenting domestic and international 
     market opportunities;
       ``(II) preparing and executing marketing plans;
       ``(III) developing pricing strategies;
       ``(IV) locating contract opportunities;
       ``(V) negotiating contracts; and
       ``(VI) using varying public relations and advertising 
     techniques.

       ``(B) Business development assistance recipients.--The 
     business development assistance under subparagraph (A) shall 
     be offered to prospective and current owners of Native 
     American small business concerns.
       ``(3) Form of federal financial assistance.--
       ``(A) Documentation.--The financial assistance to Native 
     American business centers authorized under this subsection 
     may be made by grant, contract, or cooperative agreement.
       ``(B) Payments.--
       ``(i) Timing.--Payments made under this subsection may be 
     disbursed in periodic installments, at the request of the 
     recipient.
       ``(ii) Advance.--The Administrator may disburse not more 
     than 25 percent of the annual amount of Federal financial 
     assistance awarded to a Native American business center after 
     notice of the award has been issued.
       ``(C) Non-federal contributions.--
       ``(i) In general.--

       ``(I) Initial financial assistance.--Except as provided in 
     subclause (II), an eligible applicant that receives financial 
     assistance under this subsection shall provide non-Federal 
     contributions for the operation of the Native American 
     business center established by the eligible applicant in an 
     amount equal to--

       ``(aa) in each of the first and second years of the 
     project, not less than 33 percent of the amount of the 
     financial assistance received under this subsection; and
       ``(bb) in the third through fifth years of the project, not 
     less than 50 percent of the amount of the financial 
     assistance received under this subsection.

       ``(II) Renewals.--An eligible applicant that receives a 
     renewal of financial assistance under this subsection shall 
     provide non-Federal contributions for the operation of a 
     Native American business center established by the eligible 
     applicant in an amount equal to not less than 50 percent of 
     the amount of the financial assistance received under this 
     subsection.
       ``(III) Exceptions.--The requirements of this section may 
     be waived at the discretion of the Administrator, based on an 
     evaluation of the ability of the eligible applicant to 
     provide non-Federal contributions.

       ``(4) Contract and cooperative agreement authority.--A 
     Native American business center may enter into a contract or 
     cooperative agreement with a Federal department or agency to 
     provide specific assistance to Native American and other 
     underserved small business concerns located on or near tribal 
     land, to the extent that the contract or cooperative 
     agreement is consistent with and does not duplicate the terms 
     of any assistance received by the Native American business 
     center from the Administration.
       ``(5) Application process.--
       ``(A) Submission of a 5-year plan.--Each applicant for 
     assistance under paragraph (1) shall submit a 5-year plan to 
     the Administration on proposed assistance and training 
     activities.
       ``(B) Criteria.--
       ``(i) In general.--The Administrator shall evaluate 
     applicants for financial assistance under this subsection in 
     accordance with selection criteria that are--

       ``(I) established before the date on which eligible 
     applicants are required to submit the applications;
       ``(II) stated in terms of relative importance; and
       ``(III) publicly available and stated in each solicitation 
     for applications for financial assistance under this 
     subsection made by the Administrator.

       ``(ii) Considerations.--The criteria required by this 
     subparagraph shall include--

       ``(I) the experience of the applicant in conducting 
     programs or ongoing efforts designed to impart or upgrade the 
     business skills of current or potential owners of Native 
     American small business concerns;
       ``(II) the ability of the applicant to commence a project 
     within a minimum amount of time;
       ``(III) the ability of the applicant to provide quality 
     training and services to a significant number of Native 
     Americans;
       ``(IV) previous assistance from the Administration to 
     provide services in Native American communities;
       ``(V) the proposed location for the Native American 
     business center, with priority given based on the proximity 
     of the center to the population being served and to achieve a 
     broad geographic dispersion of the centers; and
       ``(VI) demonstrated experience in providing technical 
     assistance, including financial, marketing, and management 
     assistance.

       ``(6) Conditions for participation.--Each eligible 
     applicant desiring a grant under this

[[Page S5444]]

     subsection shall submit an application to the Administrator 
     that contains--
       ``(A) a certification that the applicant--
       ``(i) is an eligible applicant;
       ``(ii) employs a full-time executive director, project 
     director, or program manager to manage the Native American 
     business center; and
       ``(iii) agrees--

       ``(I) to a site visit by the Administrator as part of the 
     final selection process;
       ``(II) to an annual programmatic and financial examination; 
     and
       ``(III) to the maximum extent practicable, to remedy any 
     problems identified pursuant to that site visit or 
     examination;

       ``(B) information demonstrating that the applicant has the 
     ability and resources to meet the needs, including cultural 
     needs, of the Native Americans to be served by the grant;
       ``(C) information relating to proposed assistance that the 
     grant will provide, including--
       ``(i) the number of individuals to be assisted; and
       ``(ii) the number of hours of counseling, training, and 
     workshops to be provided;
       ``(D) information demonstrating the effectiveness and 
     experience of the applicant in--
       ``(i) conducting financial, management, and marketing 
     assistance programs designed to educate or improve the 
     business skills of current or prospective Native American 
     business owners;
       ``(ii) providing training and services to a representative 
     number of Native Americans;
       ``(iii) using resource partners of the Administration and 
     other entities, including institutions of higher education, 
     Indian tribes, or tribal colleges; and
       ``(iv) the prudent management of finances and staffing;
       ``(E) the location at which the applicant will provide 
     training and services to Native Americans;
       ``(F) a 5-year plan that describes--
       ``(i) the number of Native Americans and Native American 
     small business concerns to be served by the grant;
       ``(ii) if the Native American business center is located in 
     the continental United States, the number of Native Americans 
     to be served by the grant; and
       ``(iii) the training and services to be provided to a 
     representative number of Native Americans; and
       ``(G) if the applicant is a joint project--
       ``(i) a certification that each participant in the joint 
     project is an eligible applicant;
       ``(ii) information demonstrating a record of commitment to 
     providing assistance to Native Americans; and
       ``(iii) information demonstrating that the participants in 
     the joint project have the ability and resources to meet the 
     needs, including the cultural needs, of the Native Americans 
     to be served by the grant.
       ``(7) Review of applications.--The Administrator shall 
     approve or disapprove each completed application submitted 
     under this subsection not later than 90 days after the date 
     on which the eligible applicant submits the application.
       ``(8) Program examination.--
       ``(A) In general.--Each Native American business center 
     established under this subsection shall annually provide to 
     the Administrator an itemized cost breakdown of actual 
     expenditures made during the preceding year.
       ``(B) Administration action.--Based on information received 
     under subparagraph (A), the Administration shall--
       ``(i) develop and implement an annual programmatic and 
     financial examination of each Native American business center 
     assisted pursuant to this subsection; and
       ``(ii) analyze the results of each examination conducted 
     under clause (i) to determine the programmatic and financial 
     viability of each Native American business center.
       ``(C) Conditions for continued funding.--In determining 
     whether to renew a grant, contract, or cooperative agreement 
     with a Native American business center, the Administration--
       ``(i) shall consider the results of the most recent 
     examination of the center under subparagraph (B), and, to a 
     lesser extent, previous examinations; and
       ``(ii) may withhold the renewal, if the Administrator 
     determines that--

       ``(I) the center has failed to provide the information 
     required to be provided under subparagraph (A), or the 
     information provided by the center is inadequate;
       ``(II) the center has failed to provide adequate 
     information required to be provided by the center for 
     purposes of the report of the Administrator under 
     subparagraph (E);
       ``(III) the center has failed to comply with a requirement 
     for participation in the Native American small business 
     development program, as determined by the Administrator, 
     including--

       ``(aa) failure to acquire or properly document a non-
     Federal contribution;
       ``(bb) failure to establish an appropriate partnership or 
     program for marketing and outreach to reach new Native 
     American small business concerns;
       ``(cc) failure to achieve results described in a financial 
     assistance agreement; and
       ``(dd) failure to provide to the Administrator a 
     description of the amount and sources of any non-Federal 
     funding received by the center;

       ``(IV) the center has failed to carry out the 5-year plan 
     under in paragraph (6)(F); or
       ``(V) the center cannot make the certification described in 
     paragraph (6)(A).

       ``(D) Continuing contract and cooperative agreement 
     authority.--
       ``(i) In general.--The authority of the Administrator to 
     enter into contracts or cooperative agreements in accordance 
     with this subsection shall be in effect for each fiscal year 
     only to the extent and in the amounts as are provided in 
     advance in appropriations Acts.
       ``(ii) Renewal.--After the Administrator has entered into a 
     contract or cooperative agreement with any Native American 
     business center under this subsection, the Administrator may 
     not suspend, terminate, or fail to renew or extend any such 
     contract or cooperative agreement unless the Administrator--

       ``(I) provides the center with written notification that 
     describes the reasons for the action of the Administrator; 
     and
       ``(II) affords the center an opportunity for a hearing, 
     appeal, or other administrative proceeding under chapter 5 of 
     title 5, United States Code.

       ``(E) Annual management report.--
       ``(i) In general.--The Administrator shall prepare and 
     submit to the Committee on Small Business and 
     Entrepreneurship and the Committee on Indian Affairs of the 
     Senate and the Committee on Small Business and the Committee 
     on Natural Resources of the House of Representatives an 
     annual report on the effectiveness of all projects conducted 
     by Native American business centers under this subsection and 
     any pilot programs administered by the Office of Native 
     American Affairs.
       ``(ii) Contents.--Each report submitted under clause (i) 
     shall include, with respect to each Native American business 
     center receiving financial assistance under this subsection--

       ``(I) the number of individuals receiving assistance from 
     the Native American business center;
       ``(II) the number of startup business concerns established 
     with the assistance of the Native American business center;
       ``(III) the number of existing businesses in the area 
     served by the Native American business center seeking to 
     expand employment;
       ``(IV) the number of jobs established or maintained, on an 
     annual basis, by Native American small business concerns 
     assisted by the center since receiving funding under this 
     section;
       ``(V) to the maximum extent practicable, the amount of the 
     capital investment and loan financing used by emerging and 
     expanding businesses that were assisted by a Native American 
     business center;
       ``(VI) any additional information on the counseling and 
     training program that the Administrator determines to be 
     necessary; and
       ``(VII) the most recent examination, as required under 
     subparagraph (B), and the determination made by the 
     Administration under that subparagraph.

       ``(9) Annual reports.--Each Native American business center 
     receiving financial assistance under this subsection shall 
     submit to the Administrator an annual report on the services 
     provided with the financial assistance, including--
       ``(A) the number of individuals assisted, by tribal 
     affiliation;
       ``(B) the number of hours spent providing counseling and 
     training for those individuals;
       ``(C) the number of startup small business concerns 
     established or maintained with the assistance of the Native 
     American business center;
       ``(D) the gross receipts of small business concerns 
     assisted by the Native American business center;
       ``(E) the number of jobs established or maintained by small 
     business concerns assisted by the Native American business 
     center; and
       ``(F) the number of jobs for Native Americans established 
     or maintained at small business concerns assisted by the 
     Native American business center.
       ``(10) Record retention.--
       ``(A) Applications.--The Administrator shall maintain a 
     copy of each application submitted under this subsection for 
     not less than 7 years.
       ``(B) Annual reports.--The Administrator shall maintain 
     copies of the certification submitted under paragraph (6)(A) 
     indefinitely.
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out the Native American small business development 
     program $10,000,000 for each of fiscal years 2011 through 
     2013.
       ``(2) Administration.--Not more than 10 percent of funds 
     appropriated for a fiscal year may be used for the costs of 
     administering the programs under this section.''.
                                 ______