[Congressional Record Volume 164, Number 107 (Tuesday, June 26, 2018)]
[Senate]
[Pages S4436-S4438]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3154. Mrs. GILLIBRAND (for herself, Mr. Cassidy, and Mr. Tillis)
submitted an amendment intended to be proposed by her to the bill H.R.
2, to provide for the reform and continuation of agricultural and other
programs of the Department of Agriculture through fiscal year 2023, and
for other purposes; which was ordered to lie on the table; as follows:
After section 6105, insert the following:
SEC. 6106. BUSINESS AND INNOVATION SERVICES ESSENTIAL
COMMUNITY FACILITIES.
Section 306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) (as amended by section
6105) is amended by adding at the end the following:
``(28) Business and innovation services essential community
facilities.--The Secretary may make loans and loan guarantees
under this subsection and grants under paragraphs (19), (20),
and (21) for essential community facilities for business and
innovation services, such as incubators, co-working spaces,
makerspaces, and residential entrepreneur and innovation
centers.''.
After section 6123, insert the following:
SEC. 6124. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.
Subtitle D of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1981 et seq.) is amended by adding at the end
the following:
``SEC. 379I. RURAL INNOVATION STRONGER ECONOMY GRANT PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means a
rural jobs accelerator partnership established after the date
of enactment of this section that--
``(A) organizes key community and regional stakeholders
into a working group that--
``(i) focuses on the shared goals and needs of the industry
clusters that are objectively identified as existing,
emerging, or declining;
``(ii) represents a region defined by the partnership in
accordance with subparagraph (B);
``(iii) includes 1 or more representatives of--
``(I) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001));
``(II) a private entity; or
``(III) a government entity;
``(iv) may include 1 or more representatives of--
``(I) an economic development or other community or labor
organization;
``(II) a financial institution, including a community
development financial institution (as defined in section 103
of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702));
``(III) a philanthropic organization; or
``(IV) a rural cooperative, if the cooperative is organized
as a nonprofit organization; and
``(v) has, as a lead applicant--
``(I) a District Organization (as defined in section 300.3
of title 13, Code of Federal Regulations (or a successor
regulation));
``(II) an Indian tribe (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304)), or a consortium of Indian tribes;
``(III) a State or a political subdivision of a State,
including a special purpose unit of a State or local
government engaged in economic development activities, or a
consortium of political subdivisions;
``(IV) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)) or a consortium of institutions of higher education;
or
``(V) a public or private nonprofit organization; and
``(B) subject to approval by the Secretary, may--
``(i) serve a region that is--
``(I) a single jurisdiction; or
``(II) if the region is a rural area, multijurisdictional;
and
``(ii) define the region that the partnership represents,
if the region--
``(I) is large enough to contain critical elements of the
industry cluster prioritized by the partnership;
``(II) is small enough to enable close collaboration among
members of the partnership;
``(III) includes a majority of communities that are located
in--
``(aa) a nonmetropolitan area that qualifies as a low-
income community (as defined in section 45D(e) of the
Internal Revenue Code of 1986); and
``(bb) an area that has access to or has a plan to achieve
broadband service (within the meaning of title VI of the
Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.));
and
``(IV)(aa) has a population of 50,000 or fewer inhabitants;
or
``(bb) for a region with a population of more than 50,000
inhabitants, is the subject of a positive determination by
the Secretary with respect to a rural-in-character petition,
including such a petition submitted concurrently with the
application of the partnership for a grant under this
section.
``(2) Industry cluster.--The term `industry cluster' means
a broadly defined network of interconnected firms and
supporting institutions in related industries that accelerate
innovation, business formation, and job creation by taking
advantage of assets and strengths of a region in the business
environment.
``(3) High-wage job.--The term `high-wage job' means a job
that provides a wage that is greater than the median wage for
the applicable region, as determined by the Secretary.
``(4) Jobs accelerator.--The term `jobs accelerator' means
a jobs accelerator center or program located in or serving a
low-income rural community that may provide co-working space,
in-demand skills training, entrepreneurship support, and any
other services described in subsection (d)(1)(B).
``(5) Small and disadvantaged business.--The term `small
and disadvantaged business' has the meaning given the term
`small business concern owned and controlled by socially and
economically disadvantaged individuals' in section 8(d)(3)(C)
of the Small Business Act (15 U.S.C. 637(d)(3)(C)).
``(b) Establishment.--
``(1) In general.--The Secretary shall establish a grant
program under which the Secretary shall award grants, on a
competitive basis, to eligible entities to establish jobs
accelerators, including related programming, that--
``(A) improve the ability of distressed rural communities
to create high-wage jobs, accelerate the formation of new
businesses with high-growth potential, and strengthen
regional economies, including by helping to build capacity in
the applicable region to achieve those goals; and
``(B) help rural communities identify and maximize local
assets and connect to regional opportunities, networks, and
industry clusters that demonstrate high growth potential.
``(2) Cost-sharing.--
``(A) In general.--The Federal share of the cost of any
activity carried out using a grant made under paragraph (1)
shall be not greater than 80 percent.
``(B) In-kind contributions.--The non-Federal share of the
total cost of any activity carried out using a grant made
under paragraph (1) may be in the form of donations or in-
kind contributions of goods or services fairly valued.
``(3) Selection criteria.--In selecting eligible entities
to receive grants under paragraph (1), the Secretary shall
consider--
``(A) the commitment of participating core stakeholders in
the jobs accelerator partnership, including a demonstration
that--
``(i) investment organizations, including venture
development organizations, venture capital firms, revolving
loan funders, angel investment groups, community lenders,
community development financial institutions, rural business
investment companies, small business investment companies (as
defined in section 103 of the Small Business Investment Act
of 1958 (15 U.S.C. 662)), philanthropic organizations, and
other institutions focused on expanding access to capital,
are committed partners in the jobs accelerator partnership
and willing to potentially invest in projects emerging from
the jobs accelerator; and
``(ii) institutions of higher education, applied research
institutions, workforce development entities, and community-
based organizations are willing to partner with the jobs
accelerator to provide workers with skills relevant to the
industry cluster needs of the region, with an emphasis on the
use of on-the-job training, registered apprenticeships,
customized training, classroom occupational training, or
incumbent worker training;
``(B) the ability of the eligible entity to provide the
non-Federal share as required under paragraph (2);
``(C) the speed of available broadband service and how the
jobs accelerator plans to improve access to high-speed
broadband service, if necessary, and leverage that broadband
service for programs of the jobs accelerator;
``(D) the identification of a targeted industry cluster,
including a description of--
``(i) data showing the existence of emergence of an
industry cluster;
``(ii) the importance of the industry cluster to economic
growth in the region;
``(iii) the specific needs and opportunities for growth in
the industry cluster;
``(iv) the unique assets a region has to support the
industry cluster and to have a competitive advantage in that
industry cluster;
``(v) evidence of a concentration of firms or concentration
of employees in the industry cluster; and
``(vi) available industry-specific infrastructure that
supports the industry cluster;
``(E) the ability of the partnership to link rural
communities to markets, networks, industry clusters, and
other regional opportunities and assets--
``(i) to improve the competitiveness of the rural region;
``(ii) to repatriate United States jobs;
``(iii) to foster high-wage job creation;
[[Page S4437]]
``(iv) to support innovation and entrepreneurship; and
``(v) to promote private investment in the rural regional
economy;
``(F) other grants or loans of the Secretary and other
Federal agencies that the jobs accelerator would be able to
leverage; and
``(G) prospects for the proposed center and related
programming to have sustainability beyond the full maximum
length of assistance under this subsection, including the
maximum number of renewals.
``(4) Grant term and renewals.--
``(A) Term.--The initial term of a grant under paragraph
(1) shall be 4 years.
``(B) Renewal.--The Secretary may renew a grant under
paragraph (1) for an additional period of not longer than 2
years if the Secretary is satisfied, using the evaluation
under subsection (e)(2), that the grant recipient has
successfully established a jobs accelerator and related
programming.
``(5) Geographic distribution.--To the maximum extent
practicable, the Secretary shall provide grants under
paragraph (1) for jobs accelerators and related programming
in not fewer than 25 States at any time.
``(c) Grant Amount.--A grant awarded under subsection (b)
may be in an amount equal to--
``(1) not less than $500,000; and
``(2) not more than $2,000,000.
``(d) Use of Funds.--
``(1) In general.--Subject to paragraph (2), funds from a
grant awarded under subsection (b) may be used--
``(A) to construct, purchase, or equip a building to serve
as an innovation center, which may include--
``(i) housing for business owners or workers;
``(ii) co-working space, which may include space for remote
work;
``(iii) space for businesses to utilize with a focus on
entrepreneurs and small and disadvantaged businesses but that
may include collaboration with companies of all sizes;
``(iv) job training programs; and
``(v) efforts to utilize the innovation center as part of
the development of a community downtown; or
``(B) to support programs to be carried out at, or in
direct partnership with, the jobs accelerator that support
the objectives of the jobs accelerator, including--
``(i) linking rural communities to markets, networks,
industry clusters, and other regional opportunities to
support high-wage job creation, new business formation, and
economic growth;
``(ii) integrating small businesses into a supply chain;
``(iii) creating or expanding commercialization activities
for new business formation;
``(iv) identifying and building assets in rural communities
that are crucial to supporting regional economies;
``(v) facilitating the repatriation of high-wage jobs to
the United States;
``(vi) supporting the deployment of innovative processes,
technologies, and products;
``(vii) enhancing the capacity of small businesses in
regional industry clusters, including small and disadvantaged
businesses;
``(viii) increasing United States exports and business
interaction with international buyers and suppliers;
``(ix) developing the skills and expertise of local
workforces, entrepreneurs, and institutional partners to
support growing industry clusters, including the upskilling
of incumbent workers;
``(x) ensuring rural communities have the capacity and
ability to carry out projects relating to housing, community
facilities, infrastructure, or community and economic
development to support regional industry cluster growth;
``(xi) establishing training programs to meet the needs of
employers in a regional industry cluster and prepare workers
for high-wage jobs; or
``(xii) any other activities that the Secretary may
determine to be appropriate.
``(2) Requirement.--
``(A) In general.--Subject to subparagraph (B), not more
than 10 percent of a grant awarded under subsection (b) shall
be used for indirect costs associated with administering the
grant.
``(B) Increase.--The Secretary may increase the percentage
described in subparagraph (A) on a case-by-case basis.
``(e) Annual Activity Report and Evaluation.--Not later
than 1 year after receiving a grant under this section, and
annually thereafter for the duration of the grant, an
eligible entity shall--
``(1) report to the Secretary on the activities funded with
the grant; and
``(2)(A) evaluate the progress that the eligible entity has
made toward the strategic objectives identified in the
application for the grant; and
``(B) measure that progress using performance measures
during the project period, which may include--
``(i) high-wage jobs created;
``(ii) high-wage jobs retained;
``(iii) private investment leveraged;
``(iv) businesses improved;
``(v) new business formations;
``(vi) new products or services commercialized;
``(vii) improvement of the value of existing products or
services under development;
``(viii) regional collaboration, as measured by such
metrics as--
``(I) the number of organizations actively engaged in the
industry cluster;
``(II) the number of symposia held by the industry cluster,
including organizations that are not located in the immediate
region defined by the partnership; and
``(III) the number of further cooperative agreements;
``(ix) the number of education and training activities
relating to innovation;
``(x) the number of jobs relocated from outside of the
United States to the region;
``(xi) the amount and number of new equity investments in
industry cluster firms;
``(xii) the amount and number of new loans to industry
cluster firms;
``(xiii) the dollar increase in exports resulting from the
project activities;
``(xiv) the percentage of employees for which training was
provided;
``(xv) improvement in sales of participating businesses;
``(xvi) improvement in wages paid at participating
businesses;
``(xvii) improvement in income of participating workers; or
``(xviii) any other measure the Secretary determines to be
appropriate.
``(f) Interagency Task Force.--
``(1) In general.--The Secretary shall establish an
interagency Federal task force to support the network of jobs
accelerators by--
``(A) providing successful applicants with available
information and technical assistance on Federal resources
relevant to the project and region;
``(B) establishing a Federal support team comprised of
staff from participating agencies in the task force that
shall provide coordinated and dedicated support services to
jobs accelerators; and
``(C) providing opportunities for the network of jobs
accelerators to share best practices and further collaborate
to achieve the purposes of this section.
``(2) Membership.--The task force established under
paragraph (1) shall--
``(A) be co-chaired by--
``(i) the Secretary of Commerce (or a designee); and
``(ii) the Secretary (or a designee); and
``(B) include--
``(i) the Secretary of Education (or a designee);
``(ii) the Secretary of Energy (or a designee);
``(iii) the Secretary of Health and Human Services (or a
designee);
``(iv) the Secretary of Housing and Urban Development (or a
designee);
``(v) the Secretary of Labor (or a designee);
``(vi) the Secretary of Transportation (or a designee);
``(vii) the Secretary of the Treasury (or a designee);
``(viii) the Administrator of the Environmental Protection
Agency (or a designee);
``(ix) the Administrator of the Small Business
Administration (or a designee);
``(x) the Federal Co-Chair of the Appalachian Regional
Commission (or a designee);
``(xi) the Federal Co-Chairman of the Board of the Delta
Regional Authority (or a designee);
``(xii) the Federal Co-Chair of the Northern Border
Regional Commission (or a designee);
``(xiii) national and local organizations that have
relevant programs and interests that could serve the needs of
the jobs accelerators;
``(xiv) representatives of State and local governments or
State and local economic development agencies;
``(xv) representatives of institutions of higher education,
including land-grant universities; and
``(xvi) such other heads of Federal agencies and non-
Federal partners as determined appropriate by the co-chairs
of the task force.''.
Strike section 6125 and insert the following:
SEC. 6125. RURAL BUSINESS INVESTMENT PROGRAM.
(a) Definitions.--Section 384A of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009cc) is amended--
(1) in paragraph (2)--
(A) in the paragraph heading, by striking ``venture''; and
(B) by striking ``venture''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Equity capital.--The term `equity capital' means--
``(A) common or preferred stock or a similar instrument,
including subordinated debt with equity features; and
``(B) any other type of equity-like financing that might be
necessary to facilitate the purposes of this Act, excluding
financing such as senior debt or other types of financing
that competes with routine loanmaking of commercial
lenders.''.
(b) Purposes.--Section 384B of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2009cc-1) is amended--
(1) in paragraph (1), by striking ``venture''; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``venture''; and
(B) in subparagraph (B), by striking ``venture''.
(c) Selection of Rural Business Investment Companies.--
Section 384D(b)(1) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc-3(b)(1)) is amended by
striking ``developmental venture'' and inserting
``developmental''.
(d) Fees.--Section 384G of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc-6) is amended--
[[Page S4438]]
(1) in subsections (a) and (b), by striking ``a fee that
does not exceed $500'' each place it appears and inserting
``such fees as the Secretary considers appropriate, so long
as those fees are proportionally equal for each rural
business investment company,''; and
(2) in subsection (c)(2)--
(A) in subparagraph (B), by striking ``solely to cover the
costs of licensing examinations'' and inserting ``as the
Secretary considers appropriate''; and
(B) by striking subparagraph (C) and inserting the
following:
``(C) shall be in such amounts as the Secretary considers
appropriate.''.
(e) Limitation on Rural Business Investment Companies
Controlled by Farm Credit System Institutions.--Section
384J(c) of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009cc-9(c)) is amended by striking ``25'' and
inserting ``50''.
(f) Flexibility on Sources of Investment or Capital.--
Section 384J(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2009cc-9(a)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) by striking the subsection designation and heading and
all that follows through ``Except as'' in the matter
preceding subparagraph (A) (as so redesignated) and inserting
the following:
``(a) Investment.--
``(1) In general.--Except as''; and
(3) by adding at the end the following:
``(2) Limitation on requirements.--The Secretary may not
require that an entity described in paragraph (1) provide
investment or capital that is not required of other companies
eligible to apply to operate as a rural business investment
company under section 384D(a).''.
______