[Federal Register Volume 86, Number 69 (Tuesday, April 13, 2021)]
[Proposed Rules]
[Pages 19162-19169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07175]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 1187

[212A2100DD/AAKC001030/A0A501010.999900]
RIN 1076-AF63


Indian Business Incubators Program

AGENCY: Office of the Assistant Secretary, Indian Affairs, Interior.

ACTION: Proposed rule.

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SUMMARY: The Office of Indian Energy and Economic Development (IEED) 
proposes a new regulation to implement the recently enacted Native 
American Business Incubators Program Act. The Indian Business 
Incubators Program (IBIP), also known as the Native American Business 
Incubators Program, is a program in which IEED provides competitive 
grants to eligible applicants to establish and operate business 
incubators that serve Tribal reservation communities. These regulations 
establish who is eligible for the program, how to apply, how IEED will 
evaluate applications and make awards, and how IEED will administer the 
program.

DATES: Please submit your comments by June 14, 2021. Tribal 
consultation sessions to discuss this rule will be held on May 12 and 
13, 2021, at 1 p.m. ET.

[[Page 19163]]

Please register in advance using the links provided in the 
SUPPLEMENTARY INFORMATION section of this document.

ADDRESSES: You may submit comments, identified by the number 1076-AF63, 
by any of the following methods:
     Federal rulemaking portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the number 1076-AF63 
in the subject line of the message.
     Mail or courier: Elizabeth Appel, Office of Regulatory 
Affairs & Collaborative Action, Office of the Assistant Secretary--
Indian Affairs, U.S. Department of the Interior, 1849 C Street NW, Mail 
Stop 4660, Washington, DC 20240.
    We cannot ensure that comments received after the close of the 
comment period (see DATES) will be included in the docket for this 
rulemaking and considered. Comments sent to an address other than those 
listed above will not be included in the docket for this rulemaking. 
All comments received will be posted without change to http://www.regulations.gov, including any personal information provided.
    Comments on the Paperwork Reduction Act information collections 
contained in this rule are separate from comments on the substance of 
the rule. Send your comments and suggestions on the information 
collection requirements to the Desk Officer for the Department of the 
Interior at OMB-OIRA at (202) 395-5806 (fax) or 
[email protected] (email). Please provide a copy of your 
comments to [email protected].

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Office of Regulatory 
Affairs & Collaborative Action, telephone (202) 273-4680, 
[email protected].

SUPPLEMENTARY INFORMATION:
I. Statutory Authority
II. Need for This Proposed Rulemaking
III. Overview of Proposed Rule
IV. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement and Fairness Act
    D. Unfunded Mandates Reform Act of 1995
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Paperwork Reduction Act
    I. National Environmental Policy Act (NEPA)
    J. Consultation With Indian Tribes (E.O. 13175)
    K. Energy Effects (E.O. 13211)
    L. Clarity of This Regulation
    M. Public Availability of Comments

I. Statutory Authority

    IEED is proposing this rule under the authority of the Native 
American Business Incubators Program Act, Public Law 116-174.

II. Need for This Proposed Rulemaking

    On October 20, 2020, Congress enacted the Native American Business 
Incubators Program Act, Public Law 116-174, which will be codified at 
25 U.S.C. 5801 et seq. In the Act, Congress establishes the Native 
American Business Incubators Program. Congress found that, in addition 
to the challenges all entrepreneurs face when transforming ideas into 
profitable business enterprises, entrepreneurs face an additional set 
of challenges that requires special knowledge when they want to provide 
products and services in Tribal reservation communities. Congress 
further found that the business incubator model is suited to 
accelerating entrepreneurship in Tribal reservation communities, 
promoting collaboration to address challenges and providing 
individually tailored services to overcome the obstacles that are 
unique to each participating business, ultimately stimulating economic 
development in reservation communities. Business incubators accelerate 
the creation and development of businesses by offering a range of 
services to business owners such as: mentorships, networking, technical 
assistance, and access to investors. In accordance with the Act's 
requirement for promulgation of regulations within 180 days of the 
Act's enactment (i.e., by April 18, 2021), IEED is publishing today's 
proposed rule for notice and comment.

III. Overview of Proposed Rule

    This proposed rule would establish the IBIP, in accordance with the 
Native American Business Incubators Program Act. Through the IBIP, IEED 
will provide competitive grants to eligible applicants to establish and 
operate business incubators that serve entrepreneurs (start-up and 
early stage businesses) who will provide products or services to Tribal 
reservation communities. A business incubator is an organization that 
assists entrepreneurs in becoming viable businesses by providing advice 
and services to entrepreneurs to navigate obstacles in transforming 
their innovative ideas into operational businesses. Examples of 
services that a business incubator may provide are workspace and 
facilities, advice on how to access capital, business education, 
counseling, and networking and mentorship opportunities. Indian Affairs 
does not currently have any regulations in place that provide for a 
grant program for Indian business incubators. These regulations are 
intended to provide the framework for operation of the grant program so 
that there is certainty as to who is eligible for a grant, how eligible 
applicants can apply for a grant, how IEED will evaluate, award, and 
administer the grants, and what terms and conditions will apply to the 
grants. The ultimate goal of providing this regulatory framework is to 
enable IEED to provide grants under these regulations that will 
stimulate economic development in reservation communities. IEED 
welcomes input on any proposed regulatory provision that may undermine 
this goal.
    The proposed rule consists of six subparts, each of which is 
described below.
     Subpart A--General Provisions and Eligibility: Defines 
terms defined in the statute consistent with the statutory definitions, 
replacing citations with restatements of the provisions cited where 
appropriate, and adds a new term for ``IBIP'' in lieu of ``Native 
American Business Incubator Program (NABIP)'' to avoid confusion 
because the acronym ``NABIP'' is similar to other grant programs. This 
subpart also describes who is eligible to receive an IBIP grant, to 
include the following entities that meet certain additional 
requirements set out in Sec.  1187.3:
    [cir] Tribes;
    [cir] Tribal colleges and universities;
    [cir] Institutions of higher education; and
    [cir] Tribal or private nonprofit organizations that provide 
business and financial technical assistance.
     Subpart B--Applying for a Grant: Describes how an eligible 
applicant applies for a grant, adding the specificity that applications 
must be submitted through www.grants.gov. This subpart also includes 
the statutory requirements for what must be included in an application 
and written site proposal, and how to submit a joint application. The 
regulations add that joint applications must identify which of the 
entities submitting the joint application will be the lead contact for 
the purposes of grant management.
     Subpart C--Evaluation of Grant Applications: Describes the 
criteria IEED will use to evaluate each IBIP grant application, adding 
the specific time period of three months to the statutory requirement 
that the applicant must commence services within a minimum period of 
time to be determined by the Secretary. This subpart also adds a new 
criterion to the

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statutory criteria for evaluation: The extent to which a grant award 
will enable an entity that is already providing business incubation 
services to appreciably enhance those services. IEED added this 
criterion in order to ensure that the grant is funding new incubation 
services, such that there is a return for the investment made in the 
incubator, rather than merely paying existing incubators for services 
they would have otherwise provided.
     Subpart D--Grant Awards: Describes how IEED will disburse 
grant funds to awardees according to the statute. This subpart also 
includes the statutory prohibition on awarding an IBIP grant that 
duplicates other Federal funding, but adds a clarification that 
duplicative funding means any funding from other Federal grants that 
would overlap with the IBIP grant for the same activities described in 
the applicant's IBIP proposal.
     Subpart E--Grant Term and Conditions: Establishes an 
initial grant term of three years, with the opportunity to renew for 
one additional three-year term if certain conditions are met, in 
accordance with the statute. This subpart also lists the purposes for 
which awardees may use the grant funds, requires awardees to provide 
non-Federal contributions in an amount at least 25 percent of the grant 
unless the conditions for waiver of that requirement are met, lists the 
minimum requirements awardees must meet in providing incubation 
services, and requires the awardee to submit a report at the end of the 
grant year that provides, among other things, a detailed breakdown of 
the Native businesses and Native entrepreneurs the incubator helped 
establish or serve. These items are all statutory but are included in 
the regulation to assist readers in finding all relevant IBIP grant 
information in one location.
     Subpart F--IEED Grant Administration: Provides that IEED 
will conduct an annual evaluation of each IBIP awardee's success, 
facilitate relationships between awardees and educational institutions 
serving Native American communities, and collaborate with other Federal 
agencies that administer business and entrepreneurial programs. These 
items are also all statutory but are included in the regulation to 
assist readers in finding all relevant IBIP grant information in one 
location.
    IEED seeks comment, particularly from Tribes and potentially 
eligible IBIP applicants, on any changes to the regulation within the 
bounds of the statute that could be incorporated to help ensure the 
success of this newly established program.

IV. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866, 13563)

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs (OIRA) at the Office of Management 
and Budget (OMB) will review all significant rules. OIRA has determined 
that this rule is not significant.
    E.O. 13563 reaffirms the principles of E.O. 12866 while calling for 
improvements in the Nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The E.O. directs agencies to consider regulatory approaches that reduce 
burdens and maintain flexibility and freedom of choice for the public 
where these approaches are relevant, feasible, and consistent with 
regulatory objectives. E.O. 13563 emphasizes further that regulations 
must be based on the best available science and that the rulemaking 
process must allow for public participation and an open exchange of 
ideas. We have developed this rule in a manner consistent with these 
requirements.

B. The Regulatory Flexibility Act

    The Department of the Interior certifies that this proposed rule 
will not have a significant economic effect on a substantial number of 
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.). This rule establishes a program to provide grants for business 
incubators, some of which may be small entities, but the $5 million in 
total annual appropriations is not expected to reach the threshold of 
having a significant economic effect on a substantial number of small 
entities.

C. Small Business Regulatory Enforcement Fairness Act of 1996

    This proposed rule is not a major rule under 5 U.S.C. 804(2), the 
Small Business Regulatory Enforcement Fairness Act. Because this 
proposed rule establishes a program supported by $5 million in annual 
appropriations this rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

D. Unfunded Mandates Reform Act of 1995

    This proposed rule does not impose an unfunded mandate on State, 
local, or Tribal governments or the private sector of more than $100 
million per year. The proposed rule does not have a monetarily 
significant or unique effect on State, local, or Tribal governments or 
the private sector. This proposed rule would establish a program to 
provide grants to certain business incubators that will serve Tribal 
communities. A statement containing the information required by the 
Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This proposed rule does not affect a taking of private property or 
otherwise have taking implications under Executive Order 12630 because 
this proposed rule does not affect individual property rights protected 
by the Fifth Amendment or involve a compensable ``taking.'' A takings 
implication assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of Executive Order 13132, this 
proposed rule does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement. A 
federalism summary impact statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This proposed rule complies with the requirements of Executive 
Order 12988. Specifically, this rule: (a) Meets the criteria of section 
3(a) requiring that all regulations be reviewed to eliminate errors and 
ambiguity and be written to minimize litigation; and (b) Meets the 
criteria of section 3(b)(2) requiring that all regulations be written 
in clear language and contain clear legal standards.

H. Consultation With Indian Tribes (E.O. 13175)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian Tribes through a 
commitment to consultation with Indian Tribes and recognition of their 
right to self-governance and Tribal sovereignty. We have evaluated this 
rule under the Department's consultation policy and under the criteria 
in Executive Order 13175 and have determined that it has substantial 
direct effects on federally

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recognized Indian Tribes because the rule requires early tribal 
involvement in the design of a process that will have significant 
impact on one or more recognized tribes.
    Given the statutory deadline of April 2021 for promulgating a 
regulation, IEED did not have sufficient time to formally consult on 
the development of this proposed rule, but has scheduled the following 
Tribal consultation sessions by webinar to discuss this proposed rule:
     May 12, 2021, 1 p.m.-3 p.m. ET--please register for this 
session at: https://doilearn2.webex.com/doilearn2/onstage/g.php?MTID=e77ad54c5178e4fcff380d118dcc83c2f.
     May 13, 2021, 1 p.m.-3 p.m. ET--please register for this 
session at: https://doilearn2.webex.com/doilearn2/onstage/g.php?MTID=e1e488228146 c27c782cd83cb83b9478b.

I. Paperwork Reduction Act

    This proposed rule contains new information collections. All 
information collections require approval under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.). We may not conduct or sponsor and 
you are not required to respond to a collection of information unless 
it displays a currently valid Office of Management and Budget (OMB) 
control number. The Department is seeking approval of a new information 
collection, as follows.
    Brief Description of Collection: This information collection 
includes items that an applicant must include in an application for an 
Indian Business Incubator Program (IBIP) grant and that IBIP awardees 
must include in the annual report. Applicant contents include such 
items as a description of the reservation communities the incubator 
will serve, a three-year plan regarding the services to be offered to 
participating entrepreneurs, among other items, information regarding 
applicant's experience in conducting assistance programs, and a site 
description of the location at which the applicant will provide work 
space to participants, among other items. The annual report includes a 
detailed breakdown of the entrepreneurs the incubator has served for 
the year covered by the report.
    Title: Indian Business Incubator Program (IBIP).
    OMB Control Number: 1076-NEW.
    Form Number: None.
    Type of Review: New collection.
    Respondents/Affected Public: Individuals, Private Sector, 
Government.
    Total Estimated Number of Annual Respondents: 50.
    Total Estimated Number of Annual Responses: 100.
    Estimated Completion Time per Response: Ranges from 5 to 35 hours.
    Total Estimated Number of Annual Burden Hours: 2,000 hours.
    Respondents' Obligation: Required to obtain a benefit.
    Frequency of Response: Occasionally.
    Total Estimated Annual Non-Hour Burden Cost: $0.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, we invite the public and other Federal agencies to comment on 
any aspect of this information collection, including:
    (1) Whether or not the collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether or not the information will have practical utility;
    (2) The accuracy of our estimate of the burden for this collection 
of information, including the validity of the methodology and 
assumptions used;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of response.
    Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to www.reginfo.gov/public/do/PRAMain. Find this particular information 
collection by selecting ``Currently under 30-day Review--Open for 
Public Comments'' or by using the search function. Please provide a 
copy of your comments to [email protected]. Please reference OMB 
Control Number 1076-NEW in the subject line of your comments.

J. National Environmental Policy Act

    This proposed rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. A 
detailed statement under the National Environmental Policy Act of 1969 
(NEPA) is not required because this is an administrative and procedural 
regulation. (For further information see 43 CFR 46.210(i)). We have 
also determined that this proposed rule does not involve any of the 
extraordinary circumstances listed in 43 CFR 46.215 that would require 
further analysis under NEPA.

K. Effects on the Energy Supply (E.O. 13211)

    This proposed rule is not a significant energy action under the 
definition in Executive Order 13211. A Statement of Energy Effects is 
not required.

L. Clarity of This Regulation

    We are required by Executive Orders 12866 (section 1(b)(12)), and 
12988 (section 3(b)(1)(B)), and 13563 (section 1(a)), and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each proposed rule we publish must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and,
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that are unclearly written, which sections or sentences 
are too long, the sections where you believe lists or tables would be 
useful, etc.

M. Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

List of Subjects in 25 CFR Part 1187

    Indians--business and finance, Loan programs--business, Loan 
programs--Indians, Reporting and recordkeeping requirements.

    For the reasons given in the preamble, the Department of the 
Interior proposes to amend Chapter VI of Title 25 of the Code of 
Federal Regulations by adding part 1187 to read as follows:

PART 1187--INDIAN BUSINESS INCUBATORS PROGRAM

Subpart A--General Provisions and Eligibility
Sec.
1187.1 What is the Indian Business Incubators Program (IBIP)?

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1187.2 What terms do I need to know?
1187.3 Who is eligible to receive a grant under the IBIP?
Subpart B--Applying for a Grant
1187.10 How does an eligible applicant apply for a grant under the 
IBIP?
1187.11 What must an application include?
1187.12 What must an applicant include in a written site proposal?
1187.13 May applicants submit a joint application?
1187.14 What additional items must a joint application include?
Subpart C--Evaluation of Grant Applications
1187.20 How will IEED evaluate each application?
1187.21 How will IEED evaluate the proposed location of the business 
incubator?
1187.22 How will IEED conduct the site evaluation?
Subpart D--Grant Awards
1187.30 How will IEED disburse the grant funds to awardees?
1187.31 May IEED award a grant that is duplicative of Federal 
funding from another source?
Subpart E--Grant Term and Conditions
1187.40 How long is the grant term?
1187.41 May IEED renew a grant award?
1187.42 What may awardees use grant funds for?
1187.43 May IEED waive the requirement for the non-Federal 
contribution?
1187.44 What minimum requirements must awardees meet?
1187.45 What reports must the awardee submit?
Subpart F--IEED Grant Administration
1187.50 How will IEED evaluate awardees' performance?
1187.51 Will IEED facilitate relationships between awardees and 
educational institutions serving Native American communities?
1187.52 How will IEED coordinate with other Federal agencies?

    Authority:  25 U.S.C. 2, 9; Pub. L. 116-174.

Subpart A--General Provisions and Eligibility


Sec.  1187.1   What is the Indian Business Incubators Program (IBIP)?

    The Indian Business Incubators Program (IBIP) is a program under 
the Native American Business Incubators Program Act in which IEED 
provides competitive grants to eligible applicants to establish and 
operate business incubators that serve Tribal reservation communities. 
With these grants, business incubators will:
    (a) Provide individually tailored business incubation and other 
business services to Native businesses and Native entrepreneurs to 
overcome the unique obstacles they confront; and
    (b) Provide Native businesses and Native entrepreneurs with the 
tools necessary to start and grow businesses that offer products and 
services to reservation communities.


Sec.  1187.2   What terms do I need to know?

    Awardee means an eligible applicant receiving a grant under the 
IBIP.
    Business incubator means an organization that:
    (1) Provides physical workspace and facilities resources to 
startups and established businesses; and
    (2) Is designed to accelerate the growth and success of businesses 
through a variety of business support resources and services, 
including--
    (i) Business education, counseling, and advice regarding access to 
capital;
    (ii) Networking opportunities;
    (iii) Mentorship opportunities; and
    (iv) Other services intended to aid in developing a business.
    Eligible applicant means an applicant eligible to apply for a grant 
under Sec.  1187.3.
    IBIP means the Indian Business Incubator Program (IBIP) under the 
Native American Business Incubator Program Act.
    IEED means the Office of Indian Energy and Economic Development in 
the Office of the Assistant Secretary--Indian Affairs.
    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).
    Institution of higher education means an educational institution in 
any State that--
    (1) Admits as regular students only persons having a certificate of 
graduation from a school providing secondary education, or the 
recognized equivalent of such a certificate, or persons who meet the 
requirements of 20 U.S.C. 1091(d);
    (2) Is legally authorized within such State to provide a program of 
education beyond secondary education;
    (3) Provides an educational program for which the institution 
awards a bachelor's degree or provides not less than a two-year program 
that is acceptable for full credit toward such a degree, or awards a 
degree that is acceptable for admission to a graduate or professional 
degree program, subject to review and approval by the Secretary;
    (4) Is a public or other nonprofit institution; and
    (5) Is accredited by a nationally recognized accrediting agency or 
association, or if not so accredited, is an institution that has been 
granted pre-accreditation status by such an agency or association that 
has been recognized by the Secretary for the granting of pre-
accreditation status, and the Secretary has determined that there is 
satisfactory assurance that the institution will meet the accreditation 
standards of such an agency or association within a reasonable time.
    Native American: Native means a person who is a member of an Indian 
Tribe, as defined in section 4(d) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5304(d)).
    Native business means a business concern that is at least 51-
percent owned and controlled by 1 or more Native Americans.
    Native entrepreneur means an entrepreneur who is a Native American.
    Reservation means Indian reservations, public domain Indian 
allotments, former Indian reservations in Oklahoma, and land held by 
incorporated Native groups, regional corporations, and village 
corporations under the provisions of the Alaska Native Claims 
Settlement Act [43 U.S.C. 1601 et seq.].
    Secretary means the Secretary of the Interior.
    Tribal college or university means an institution that--
    (1) Qualifies for funding under the Tribally Controlled Colleges 
and Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) or the 
Navajo Community College Act (25 U.S.C. 640a note); or
    (2) Is cited in section 532 of the Equity in Educational Land-Grant 
Status Act of 1994 (7 U.S.C. 301 note).


Sec.  1187.3   Who is eligible to receive a grant under the IBIP?

    To be eligible to receive a grant under the IBIP, an applicant 
must:
    (a) 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
    (b) Be one of the following entities:
    (1) An Indian Tribe;
    (2) A Tribal college or university that will have been operational 
for not less than one year before receiving a grant under the IBIP;
    (3) An institution of higher education that will have been 
operational for not less than one year before receiving a grant under 
the IBIP; or
    (4) A Tribal or private nonprofit organization that provides 
business and financial technical assistance and:
    (i) Will have been operational for not less than one year before 
receiving a grant under the IBIP; and
    (ii) Commits to serving one or more reservation communities.

[[Page 19167]]

Subpart B--Applying for a Grant


Sec.  1187.10   How does an eligible applicant apply for a grant under 
the IBIP?

    Each eligible applicant desiring a grant under the IBIP must submit 
to the Secretary an application as described in the solicitation posted 
on www.grants.gov.


Sec.  1187.11   What must an application include?

    An application for a grant under the IBIP must include:
    (a) A certification that the applicant:
    (1) Is an eligible applicant;
    (2) Has or will designate an executive director or program manager 
to manage the business incubator; and
    (3) Agrees to:
    (i) A site evaluation by the Secretary as part of the final 
selection process;
    (ii) 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 and examination.
    (b) A description of the one or more reservation communities to be 
served by the business incubator;
    (c) A three-year plan that describes:
    (1) The number of Native businesses and Native entrepreneurs to be 
participating in the business incubator;
    (2) Whether the business incubator will focus on a particular type 
of business or industry;
    (3) A detailed breakdown of the services to be offered to Native 
businesses and Native entrepreneurs participating in the business 
incubator; and
    (4) 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:
    (1) Conducting financial, management, and marketing assistance 
programs designed to educate or improve the business skills of current 
or prospective businesses;
    (2) Working in and providing services to Native American 
communities;
    (3) Providing assistance to entities conducting business in 
reservation communities;
    (4) Providing technical assistance under Federal business and 
entrepreneurial development programs for which Native businesses and 
Native entrepreneurs are eligible; and
    (5) Managing finances and staff effectively;
    (e) A description of the applicant's non-Federal contributions, in 
an amount equal to not less than 25 percent of the grant amount 
requested; and
    (f) 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, if the applicant is in possession of the site, or a 
written site proposal containing the information in Sec.  1187.12, if 
the applicant is not yet in possession of the site.


Sec.  1187.12   What must an applicant include in a written site 
proposal?

    If the applicant is not yet in possession of the site, the 
applicant must submit a written site proposal with their application 
that contains:
    (a) 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 IBIP; and
    (b) A timeline describing when the eligible applicant will be:
    (1) In possession of the proposed site; and
    (2) Operating the business incubator at the proposed site.


Sec.  1187.13   May applicants submit a joint application?

    Two or more eligible 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 IBIP.


Sec.  1187.14   What additional items must a joint application include?

    A joint application must:
    (a) Contain a certification that each participant of the joint 
project is an eligible entity under Sec.  1187.3;
    (b) Demonstrate that together the participants meet the 
requirements of Sec.  1187.13; and
    (c) Identify which of the entities submitting the joint application 
will be the lead contact for the purposes of grant management.

Subpart C--Evaluation and Award of Grant Applications


Sec.  1187.20   How will IEED evaluate each application?

    In evaluating each application, IEED will consider:
    (a) The ability of the eligible applicant to:
    (1) 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;
    (2) Commence providing services within three months; and
    (3) Provide quality incubation services to a significant number of 
Native businesses and Native entrepreneurs or provide such services at 
geographically remote locations where quality business guidance and 
counseling is difficult to obtain;
    (b) The experience of the eligible applicant in providing services 
in Native American communities, including in the one or more 
reservation communities described in the application;
    (c) The proposed location of the business incubator; and
    (d) The extent to which a grant award will enable an entity that is 
already providing business incubation services to appreciably enhance 
those services.


Sec.  1187.21   How will IEED evaluate the proposed location of the 
business incubator?

    In evaluating the proposed location of the business incubator, IEED 
will:
    (a) Consider the program goal of achieving broad geographic 
distribution of business incubators; and
    (b) Give priority to eligible applicants that will provide business 
incubation services on or near the reservation of the one or more 
communities that were described in the application, except that IEED 
may give priority to an eligible applicant that is not located on or 
near the reservation of the one or more communities that were described 
in the application if IEED determines that:
    (1) 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 one or more 
reservation communities to be served; and
    (2) Siting the business incubator in the identified location will 
serve the interests of the one or more reservation communities to be 
served.


Sec.  1187.22   How will IEED conduct the site evaluation?

    (a) Before awarding a grant to an eligible applicant, IEED will 
conduct an evaluation of the proposed site to verify that the applicant 
has (or will have) the physical workspace, equipment, and connectivity 
necessary for Native businesses and Native entrepreneurs to collaborate 
and conduct business on a local, regional, national, and/or 
international level.
    (b) To determine whether the site meets the requirements of 
paragraph (a) of this section:

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    (1) If the applicant is in possession of the proposed site, IEED 
will conduct an on-site visit or review a video submission before 
awarding the grant.
    (2) If the applicant is not yet in possession of the proposed site 
and has submitted a written site proposal, IEED will review the written 
site proposal before awarding the grant and will conduct an on-site 
visit or review a video submission to ensure the site is consistent 
with the written site proposal no later than one year after awarding 
the grant. If IEED determines the site is not consistent with the 
written site proposal, IEED will use that information in determining 
the ongoing eligibility of the applicant under Sec.  1187.50.

Subpart D--Grant Awards


Sec.  1187.30   How will IEED disburse the grant funds to awardees?

    IEED will disburse grant funds awarded to eligible applicants in 
annual installments except that, IEED may make disbursements more 
frequently, on request by the applicant, as long as disbursements are 
not made more frequently than quarterly.


Sec.  1187.31   May IEED award a grant that is duplicative of Federal 
funding from another source?

    IEED may not award a grant under the IBIP that is duplicative of 
existing Federal funding from another source. Duplicative funding means 
any funding from other Federal grants that would overlap with the IBIP 
grant for the same activities described in the applicant's IBIP 
proposal.

Subpart E--Grant Term and Conditions


Sec.  1187.40   How long is the grant term?

    Each grant awarded under the IBIP is for a term of three years.


Sec.  1187.41   May IEED renew a grant award?

    (a) IEED may renew a grant award under the IBIP for one additional 
three-year term. In determining whether to renew a grant award, IEED 
will consider for the awardee:
    (1) The results of the annual evaluation of the awardee conducted 
under Sec.  1187.50;
    (2) The performance of the awardee's business incubator, as 
compared to the performance of other business incubators receiving 
grants under the IBIP;
    (3) Whether the awardee continues to be eligible for the IBIP; and
    (4) The evaluation consideration for initial awards under Sec.  
1187.20.
    (b) Awardees that receive a grant renewal must provide non-Federal 
contributions in an amount not less than 33 percent of the total amount 
of the grant. Failure to provide the non-Federal contribution will 
result in noncompliance and IEED withholding of funds, unless IEED 
waives the requirement under Sec.  1187.43.


Sec.  1187.42   What may awardees use grant funds for?

    An awardee may use grant amounts for any or all of the following 
purposes:
    (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 IEED determines to be appropriate and consistent with 
the purposes of the IBIP.


Sec.  1187.43   May IEED waive the requirement for the non-Federal 
contribution?

    IEED may waive the requirement for the non-Federal contribution, in 
whole or in part, for one or more years of the initial IBIP grant award 
if IEED determines that the waiver is appropriate based on:
    (a) The awardee's ability to provide non-Federal contributions;
    (b) The quality of business incubation services; and
    (c) The likelihood that one or more reservation communities served 
by the awardee will not receive similar services elsewhere because of 
the remoteness or other reasons that inhibit the provision of business 
and entrepreneurial development services.


Sec.  1187.44   What minimum requirements must awardees meet?

    (a) Each awardee must:
    (1) Offer culturally tailored incubation services to Native 
businesses and Native entrepreneurs;
    (2) Use a competitive process for selecting Native businesses and 
Native entrepreneurs to participate in the business incubator; however, 
awardees may still offer technical assistance and advice to Native 
businesses and Native entrepreneurs on a walk-in basis;
    (3) Provide physical workspace that permits Native businesses and 
Native entrepreneurs to conduct business and collaborate with other 
Native businesses and Native entrepreneurs;
    (4) Provide entrepreneurship and business skills training and 
education to Native businesses and Native entrepreneurs including:
    (i) Financial education, including training and counseling in:
    (A) Applying for and securing business credit and investment 
capital;
    (B) Preparing and presenting financial statements; and
    (C) 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:
    (A) Identifying and segmenting domestic and international market 
opportunities;
    (B) Preparing and executing marketing plans;
    (C) Locating contract opportunities;
    (D) Negotiating contracts; and
    (E) Using varying public relations and advertising techniques.
    (5) Provide direct mentorship or assistance finding mentors in the 
industry in which the Native business or Native entrepreneur operates 
or intends to operate; and
    (6) Provide access to networks of potential investors, 
professionals in the same or similar fields, and other business owners 
with similar businesses.
    (b) Each awardee must 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.


Sec.  1187.45   What reports must the awardee submit?

    (a) Not later than one year after the date IEED awards the grant, 
and then annually for the duration of the grant, the awardee must 
submit to IEED a report describing the services the awardee provided 
under the IBIP during the preceding year, including:
    (1) 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

[[Page 19169]]

    (2) Any other information the Secretary may require to evaluate the 
performance of a business incubator to ensure appropriate 
implementation of the IBIP.
    (b) To the maximum extent practicable, IEED will not require an 
awardee to report the information listed in paragraph (a) of this 
section that the awardee provides to IEED under another program.
    (c) IEED will coordinate with the heads of other Federal agencies 
to ensure that, to the maximum extent practicable, the report content 
and form under paragraph (a) of this section are consistent with other 
reporting requirements for Federal programs that provide business and 
entrepreneurial assistance.

Subpart F--IEED Grant Administration


Sec.  1187.50   How will IEED evaluate awardees' performance?

    Not later than one year after the date on which IEED awards a grant 
to an eligible applicant under the IBIP, and annually thereafter for 
the duration of the grant, IEED will conduct an evaluation of, and 
prepare a report on, the awardee, which will:
    (a) Describe the performance of the eligible applicant; and
    (b) Be used in determining the ongoing eligibility of the eligible 
applicant.


Sec.  1187.51   Will IEED facilitate relationships between awardees and 
educational institutions serving Native American communities?

    IEED will facilitate the relationships between awardees and 
educational institutions serving Native American communities, including 
Tribal colleges and universities.


Sec.  1187.52   How will IEED coordinate with other Federal agencies?

    IEED will coordinate with the Secretaries of Agriculture, Commerce, 
and Treasury, and the Administrator of the Small Business 
Administration to ensure, to the maximum extent practicable, that 
awardees have the information and materials they need to provide Native 
businesses and Native entrepreneurs with the information and assistance 
necessary to apply for business and entrepreneurial development 
programs administered by those agencies.

Bryan Newland,
Principal Deputy Assistant Secretary--Indian Affairs.
[FR Doc. 2021-07175 Filed 4-12-21; 8:45 am]
BILLING CODE 4337-15-P