[House Report 116-238]
[From the U.S. Government Publishing Office]


116th Congress   }                                             {   Report
                          HOUSE OF REPRESENTATIVES
 1st Session     }                                             {  116-238

======================================================================



 
   TO ESTABLISH GROWTH ACCELERATOR FUND COMPETITION WITHIN THE SMALL 
            BUSINESS ADMINISTRATION, AND FOR OTHER PURPOSES

                                _______
                                

October 17, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Ms.Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4387]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 4387) to establish Growth Accelerator Fund 
Competition within the Small Business Administration, and for 
other purposes, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................2
  II. Background and Need for Legislation.............................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................3
   V. Committee Votes.................................................3
  VI. Section-by-Section Analysis for H.R. 4387.......................5
 VII. Congressional Budget Office Cost Estimate.......................5
VIII. Unfunded Mandates...............................................5
  IX. New Budget Authority, Entitlement Authority, and Tax Expenditure6
   X. Oversight Findings..............................................6
  XI. Statement of Constitutional Authority...........................6
 XII. Congressional Accountability Act................................6
XIII. Federal Advisory Committee Act Statement........................6
 XIV. Statement of No Earmarks........................................6
  XV. Statement of Duplication of Federal Programs....................6
 XVI. Disclosure of Directed Rule Makings.............................6
XVII. Performance Goals and Objectives................................7
XVIII.Changes in Existing Law, Made by the Bill, As Reported..........7


                      I. PURPOSE AND BILL SUMMARY

    The purpose of H.R. 4387, ``To establish Growth Accelerator 
Fund Competition within the Small Business Administration, and 
for other purposes'' is to continue the SBA's support for small 
business job creation by giving early-stage entrepreneurs 
opportunities for education, mentorship, financing, cohort-
based business training, and technical assistance.

                II. BACKGROUND AND NEED FOR LEGISLATION

    H.R. 4387 was introduced by Representative Adriano 
Espaillat (D-NY), and Representative Troy Balderson (R-OH) on 
September 18, 2019. The legislation would authorize $2 million 
in funds annually for four years to carry out the Growth 
Accelerator Fund Competition.
    The Growth Accelerator Fund Competition was created in 2014 
to support small business job creation by giving early-stage 
entrepreneurs opportunities to immerse themselves in intense 
learning. 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 and promising small business 
accelerators and incubators. Accelerators, incubators, co-
working start-up companies, or other entrepreneurial ecosystem 
models compete for monetary prizes of $50,000 each. In its 
fifth round of funding, the competition is currently focused on 
accelerators that work with high tech entrepreneurs who are 
potential Small Business Innovation Research (SBIR) or Small 
Business Tech Transfer (STTR) program applicants.
    Not only does the Growth Accelerator Fund Competition spur 
economic development and create jobs, but it also fills 
geographic gaps by supporting the development of accelerators 
and their startups in regions of the country where there are 
fewer sources of capital. Codifying the program for four years 
will continue the commitment of investment in the next 
generation of American entrepreneurs, promote innovation, and 
increase jobs.

                             III. HEARINGS

    In the 115th Congress, the Committee on Small Business held 
a hearing on May 3, 2017 titled ``Empowering Small Businesses: 
The Accelerator Model.''\1\ The hearing examined how business 
accelerators help entrepreneurs, startups, and small business 
grow and create jobs, while also offering Members the 
opportunity to hear from organizations that are directly 
involved in offering private sector resources to small 
businesses. The SBA's Growth Accelerator Competition Fund was a 
focus of the hearing wherein witnesses spoke highly of the 
program and its benefits to small firms and offered their 
strong support for the program in facilitating 
entrepreneurship.
---------------------------------------------------------------------------
    \1\Empowering Small Businesses: The Accelerator Model, Hearing 
Before the H. Comm. On Small Bus., 115th Cong. (2017).
---------------------------------------------------------------------------
    In the 116th Congress, the Committee on Small Business held 
another hearing on September 19, 2019 titled ``SBA Programs 
Spurring Innovation.''\2\ The hearing examined the specific 
benefits of the SBA's Growth Accelerator Competition Fund and 
how it helps innovative entrepreneurs, startups, and small 
businesses grow and create jobs. H.R. 4387 was a product of 
these hearings and codifies the program while also setting 
forth metrics by which to measure the success of the program.
---------------------------------------------------------------------------
    \2\SBA Programs Spurring Innovation, Hearing Before the H. Comm. On 
Small Bus., 116th Cong. (2019).
---------------------------------------------------------------------------

                      IV. COMMITTEE CONSIDERATION

    The Committee on Small Business met in open session, with a 
quorum being present, on September 25, 2019, and ordered H.R. 
4387 favorably reported to the House of Representatives. During 
the markup, no amendments were offered.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 4387 to the House at 12:06 P.M.


                  VI. SECTION-BY-SECTION OF H.R. 4387

Section 1. Growth Accelerator Fund Competition

    Subsection (a) establishes a Growth Accelerator Fund 
Competition, which allows the Small Business Administration to 
award monetary prizes on a competitive basis to covered 
entities that assist small businesses with accessing capital 
and finding mentors and networking opportunities, and advise 
small businesses on areas including: market analysis, company 
strategy, revenue growth, and securing funding.
    Subsection (b) requires the Administrator to carry out the 
program in accordance with the requirements of section 24 of 
the Stevenson-Wydler Technology Innovation Act of 1980.
    Subsection (c) requires covered entities to submit an 
application containing certain material and within a designated 
timeframe.
    Subsection (d) states that to be eligible for the grant, 
covered entities may not have an unresolved financial 
obligation to the Federal Government and may not have been 
suspended or debarred under subpart 9.4 of title 48, Code of 
Federal Regulations.
    Subsection (e) states that the Administrator shall select 
covered entities that provide small businesses with regular 
networking and mentoring opportunities, shared work environment 
focused on building a strong community with other similar small 
businesses, resources, opportunities to pitch ideas to 
investors, and assistance in securing funding under SBIR and 
STTR program.
    Subsection (f) requires the Administrator to prioritize 
applications that provide assistance and advice to women-owned, 
veteran-owned, and socially and economically disadvantaged 
small businesses.
    Subsection (g) requires that not less than 20 percent of 
the prizes will assist and advise small businesses owned and 
controlled by women, and not less than 20 percent of prizes 
will assist and advise socially and economically disadvantaged 
small businesses.
    Subsection (h) requires the recipients of the prize to use 
a selective process to identify small businesses to provide 
advice and assistance under the law.
    Subsection (i) requires the Administration to develop 
metrics that are science-based and statistically driven, 
reflect the mission of the Administration, and include factors 
related to the economic impact of the Growth Accelerator Fund 
Competition.
    Subsection (j) authorizes $2 million in funds annually for 
4 years to carry out the Growth Accelerator Fund Competition.

             VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    At the time H.R. 4387 was reported to the House, the 
Congressional Budget Office had not provided a cost-estimate.

                        VIII. UNFUNDED MANDATES

    H.R. 4387 contains no intergovernmental or private sector 
mandates as defined in the Unfunded Mandates Reform Act, Public 
Law No. 104-4, and would impose no costs on state, local, or 
tribal governments.

 IX. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House, the Committee provides the following opinion and 
estimate with respect to new budget authority, entitlement 
authority, and tax expenditures. While the Committee has not 
received an estimate of new budget authority contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to Sec. 402 of the Congressional Budget 
Act of 1974, the Committee does not believe that there will be 
any additional costs attributable to this legislation because 
all authorizations would be subject to future appropriation 
action.

                         X. OVERSIGHT FINDINGS

    In accordance with clause 2(b)(1) of rule X of the Rules of 
the House, the oversight findings and recommendations of the 
Committee on Small Business with respect to the subject matter 
contained in H.R. 4387 are incorporated into the descriptive 
portions of this report.

               XI. STATEMENT OF CONSTITUTIONAL AUTHORITY

    Pursuant to clause 7 of rule XII of the Rules of the House 
of Representatives, the Committee finds the authority for this 
legislation in Art. I, Sec. 8 of the Constitution of the United 
States.

                 XII. CONGRESSIONAL ACCOUNTABILITY ACT

    H.R. 4387 does not relate to the terms and conditions of 
employment or access to public services or accommodations 
within the meaning of Sec. 102(b)(3) of Public Law No. 104-1.

             XIII. FEDERAL ADVISORY COMMITTEE ACT STATEMENT

    H.R. 4387 does not establish or authorize the establishment 
of any new advisory committees as that term is defined in the 
Federal Advisory Committee Act, 5 U.S.C. App. 2.

                     XIV. STATEMENT OF NO EARMARKS

    Pursuant to clause 9 of rule XXI, H.R. 4387 does not 
contain any congressional earmarks, limited tax benefits, or 
limited tariff benefits as defined in subsections (d), (e), or 
(f) of clause 9 of rule XXI of the Rules of the House.

            XV. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3 of rule XIII of the Rules of the 
House, no provision of H.R. 4387 establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the United States Government Accountability Office 
pursuant to Sec. 21 of Pub. L. No. 111-139, or a program 
related to a program identified in the most recent catalog of 
federal domestic assistance.

                XVI. DISCLOSURE OF DIRECTED RULEMAKINGS

    Pursuant to clause 3 of rule XIII of the Rules of the 
House, H.R. 4387 does not direct any rulemaking.

                 XVII. PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XII of the Rules of the 
House, the Committee establishes the following performance-
related goals and objectives for this legislation:
    H.R. 4387 continues and builds upon the SBA's commitment of 
investing in the next generation of American entrepreneurs, 
spurring economic development and encouraging job creation in 
regions of the country where access to start-up capital is 
otherwise limited.

      XVIII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with clause (E) of rule XIII of the Rules of 
the House, changes in existing law made by the bill, as 
reported, as shown as follows: existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, and existing law in which no change is proposed is 
shown in roman.