[Congressional Record Volume 164, Number 50 (Thursday, March 22, 2018)]
[Senate]
[Pages S1963-S1966]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2223. Mr. McCONNELL (for Mr. Hoeven) proposed an amendment to the
bill S. 607, to establish a business incubators program within the
Department of the Interior to promote economic development in Indian
reservation communities; as follows:
Strike all after the enacting clause and insert the
following:
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;
[[Page S1964]]
(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
[[Page S1965]]
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
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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 2019 through
2023.
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