[Congressional Record Volume 165, Number 166 (Monday, October 21, 2019)]
[House]
[Pages H8277-H8278]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1615
ESTABLISHING A GROWTH ACCELERATOR FUND COMPETITION
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4387) to establish Growth Accelerator Fund Competition
within the Small Business Administration, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4387
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. GROWTH ACCELERATOR FUND COMPETITION.
(a) In General.--There is established a program within the
Small Business Administration to be known as the ``Growth
Accelerator Fund Competition'' under which the Administrator
of the Small Business Administration shall award prizes on a
competitive basis to covered entities that--
(1) assist small business concerns with accessing capital
and finding mentors and networking opportunities; and
(2) advise small business concerns, including advising on
market analysis, company strategy, revenue growth, and
securing funding.
(b) Requirements.--Except as otherwise provided in this
section, the Administrator shall carry out the program
established under this section in accordance with the
requirements of section 24 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3719).
(c) Application.--A prize only may be awarded to a covered
entity that submits to the Administrator an application at
such time, in such manner, and containing such information as
the Administrator may require.
(d) Eligibility.--To be eligible to apply for a prize under
this section, a covered entity--
(1) may not have an outstanding, unresolved financial
obligation to the Federal Government; and
(2) may not be currently suspended or debarred as specified
under subpart 9.4 of title 48, Code of Federal Regulations
(or any successor regulation).
(e) Selection of Covered Entities.--From applications
submitted under subsection (c), the Administrator shall
select covered entities that will provide to small business
concerns--
(1) regular networking opportunities, including
introductions to customers, partners, suppliers, advisory
boards, and other persons;
(2) mentorship opportunities, including advice on strategy,
technology, finances, and commercialization assistance;
(3) shared working environments focused on building a
strong community amongst other similar small business
concerns;
(4) resources and co-working arrangements;
(5) opportunities to pitch ideas to investors and other
capital formation opportunities;
(6) small amounts of angel money, seed capital, or
structured loans; and
(7) where appropriate, assistance in securing funding under
the SBIR program or the STTR program established under
section 9 of the Small Business Act (15 U.S.C. 638).
(f) Priority.--
(1) In general.--The Administrator, in approving
applications under this section, shall give priority to
applications that include methods to provide assistance and
advice to small business concerns located in underserved
communities, including--
(A) small business concerns owned and controlled by women;
(B) small business concerns owned and controlled by
veterans; and
(C) small business concerns owned and controlled by
socially and economically disadvantaged individuals (as
defined in section 8(d)(3)(C) of the Small Business Act (15
U.S.C. 637(d)(3)(C))).
(2) Allocation.--Of prizes awarded to covered entities
under this section in a fiscal year, the Administrator shall
ensure that--
(A) not less than 20 percent of such covered entities will
assist and advise small business concerns owned and
controlled by women; and
(B) not less than 20 percent of such covered entities will
assist and advise small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(g) Selection of Small Business Concerns.--A covered entity
that receives a prize under the Growth Accelerator Fund
Competition shall use a selective process to identify small
business concerns to provide assistance and advice described
under subsection (a).
(h) Development of Metrics.--The Administrator shall
develop metrics to evaluate the effectiveness and the benefit
to the people of the United States of the Growth Accelerator
Fund Competition that--
(1) are science-based and statistically driven;
(2) reflect the mission of the Small Business
Administration; and
(3) include factors relating to the economic impact of the
Growth Accelerator Fund Competition.
(i) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Covered entity.--The term ``covered entity'' means a
private entity that is incorporated in and maintains a
primary place of business in the United States.
(3) Small business act definitions.--The terms ``small
business concern'', ``small business concern owned and
controlled by women'', ``small business concern owned and
controlled by veterans'' have the meanings given such terms,
respectively, in section 3 of the Small Business Act (15
U.S.C. 632).
(j) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator $2,000,000 for each
of fiscal years 2020, 2021, 2022, and 2023 to carry out the
Growth Accelerator Fund Competition.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of the bill before us today, H.R.
4387, which establishes the Growth Accelerator Fund Competition within
SBA.
Accelerator programs provide founders of early-stage companies with
education, mentorship, financing, cohort-based training, and technical
assistance. There are many accelerator success stories. Among them are
well-known companies like Airbnb, Dropbox, and Stripe.
The SBA funds the Growth Accelerator Fund Competition for the
Nation's most innovative, diverse, and promising small business
accelerators and incubators. It was created in 2014 to support small
business job creation by giving early-stage entrepreneurs opportunities
to immerse themselves in an intense learning environment.
Monetary prizes of $50,000 to each of the winners go a long way
towards supporting the development of accelerators and incubators.
Not only does the Growth Accelerator Fund Competition spur economic
development and create jobs, but most importantly, it supports
innovation in economic areas that are outside of what we have come to
think of as traditional coastal tech hubs.
It supports places like the industrial heartland, where barriers to
capital access have hindered entrepreneurs. The program also has a
proven track record of investing in women and minority entrepreneurs.
The legislation will authorize $2 million in funds, annually, for 4
years, to
[[Page H8278]]
carry out the Growth Accelerator Fund Competition. H.R. 4387 continues
our commitment of investment in the next generation of American
entrepreneurs by promoting innovation and growing jobs.
Mr. Speaker, I urge Members to support this legislation, and I
reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 4387. This bipartisan
legislation codifies the SBA's Growth Accelerator Fund Competition.
Since 2014, the SBA's Office of Investment and Innovation has run a
yearly competition to identify the Nation's best small business
accelerators and incubators. The competition has proven successful over
the past 5 years, and I expect that will continue to be successful
during the authorization period.
The accelerators that win these awards represent a broad set of
industries and sectors, from manufacturing to tech startups, to farming
with a diversified range of demographic groups.
The winners are selected through a two-tier review panel process and
are evaluated by experts in entrepreneurship, investing, and business
plans, both inside and outside Federal Government. The expert judges
review applications and pitch videos submitted by the finalists.
I am proud to say that three Cincinnati organizations have won an
award prize since the initiative's inception: The Brandery, First
Batch, and Mortar. These award dollars have been reinvested in small
business clients in Cincinnati communities.
As an authorized program rather than an SBA Administrator initiative,
the competition will now be subject to greater congressional oversight.
I want to thank the gentleman from New York (Mr. Espaillat) and my
fellow Ohioan, Mr. Balderson, for their leadership on this bill. Their
hard work on this bill has been informed by oversight findings, program
feedback, and agency transparency.
Mr. Speaker, this legislation has my full support. I urge its
adoption, and I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I just want to take this opportunity also
to congratulate Congressman Adriano Espaillat from New York and Mr.
Balderson for their hard work and the contributions that they are
making with this bill.
Mr. Speaker, I yield such time as he may consume to the gentleman
from New York (Mr. Espaillat), who is the sponsor of the bill.
Mr. ESPAILLAT. Mr. Speaker, I thank Chairwoman Velazquez and also
Ranking Member Chabot for their leadership. I would also like to thank
my colleague, Congressman Balderson, for working with me on this
bipartisan legislation.
One of the most widely successful tools the Small Business
Administration utilizes to grow and support small businesses is the
Growth Accelerator Fund Competition. Since this program began in 2014,
the Growth Accelerator Fund Competition has small businesses and
entrepreneurs in almost 40 States.
This competitive program provides some of the most innovative and
promising small businesses in high-growth sectors with early-stage
education, financing, mentorship, cohort-based training, and technical
assistance. Importantly, these entrepreneurial development models
create a pipeline of talented entrepreneurs--especially women and
minorities--to grow and succeed.
According to the Small Business Administration, since this Growth
Accelerator Fund Competition began in 2014, the first 50 awardees have
led directly to almost 1,500 companies across the country.
Codifying this program and authorizing $2 million for 4 additional
years is a commitment to American innovation. The legislation reflects
our bipartisan support and priority investment in the growth,
development, and expansion of small businesses.
I am proud to support this program, and I am glad to work with
colleagues on both sides of the aisle on this meaningful and important
legislation.
Mr. Speaker, I urge my colleagues to support this bill.
Mr. CHABOT. Mr. Speaker, I yield myself the balance of my time to
close.
The Growth Accelerator Fund Competition at the SBA draws attention
and funding to parts of the country where there are gaps in the
entrepreneurial ecosystem. This bipartisan bill, while congressionally
authorizing an already successful program, will provide for increased
reporting and better metrics to gauge program outcomes and will provide
budding entrepreneurs with greater resources to build our communities.
This bill is a product of our bipartisan work at the Small Business
Committee, and I want to thank all of our members, both Democratic and
Republican, for their excellent work on this legislative package, as
well as our chairwoman, Ms. Velazquez, and her staff for working with
our staff in a very cooperative, bipartisan way.
It would be great if the rest of the House worked as well as this
committee does. I think it is the best committee in Congress. I am on
Judiciary and Foreign Affairs, too, so they may not like that, but this
is a really bipartisan committee, and it is a real joy to be on it.
Mr. Speaker, I urge this bill's adoption, and I yield back the
balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
Business accelerators help high-growth startup enterprises develop
their products, identify promising customer segments, and secure
resources, including vital capital and potential employees. It is clear
that they serve an important role in innovation, and H.R. 4387 enhances
the ability of the SBA's Growth Accelerator Fund Competition so it can
continue to assist entrepreneurs.
By opening the funding network for companies that may not otherwise
have gained such exposure, the growth accelerator fund helps boost
small business innovation and grow the economy.
The SBA growth accelerator program supports underserved business
owners and fills critical gaps in capital access. In 2019, 60 percent
of the winners were either women owned, socially or economically
disadvantaged, or located in areas with a lower number of SBIR and STTR
awards. This bill reinforces our committee's pledge to entrepreneurship
and job creation.
Finally, I want to thank Mr. Espaillat and Mr. Balderson for their
diligence on this bill, and I also want to take the opportunity to
thank the ranking member, Mr. Chabot, his staff, and my staff.
What we are showing today is that there is not a Republican or
Democratic approach when it comes to small businesses. This is the way
that we do right by the American people.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New York (Ms. Velazquez) that the House suspend the
rules and pass the bill, H.R. 4387.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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