    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 116-174
    116th Congress

    An Act

    To establish a business incubators program within the Department of the
    Interior to promote economic development in Indian reservation
    communities. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. <>  SHORT TITLE.

    This Act may be cited as the ``Native American Business Incubators
    Program Act''.
    SEC. 2. <>  FINDINGS.

    Congress finds that--
    (1) entrepreneurs face specific challenges when transforming
    ideas into profitable business enterprises;
    (2) entrepreneurs that want to provide products and services
    in reservation communities face an additional set of challenges
    that requires special knowledge;
    (3) a business incubator is an organization that assists
    entrepreneurs in navigating obstacles that prevent innovative
    ideas from becoming viable businesses by providing services that
    include--
    (A) workspace and facilities resources;
    (B) access to capital, business education, and
    counseling;
    (C) networking opportunities;
    (D) mentorship opportunities; and
    (E) an environment intended to help establish and
    expand business operations;
    (4) the business incubator model is suited to accelerating
    entrepreneurship in reservation communities because the business
    incubator model promotes collaboration to address shared
    challenges and provides individually tailored services for the
    purpose of overcoming obstacles unique to each participating
    business; and
    (5) business incubators will stimulate economic development
    by providing Native entrepreneurs with the tools necessary to
    grow businesses that offer products and services to reservation
    communities.
    SEC. 3. <>  DEFINITIONS.

    In this Act:
    (1) Business incubator.--The term ``business incubator''
    means an organization that--
    (A) provides physical workspace and facilities
    resources to startups and established businesses; and

    [[Page 840]]

    (B) is designed to accelerate the growth and success
    of businesses through a variety of business support
    resources and services, including--
    (i) access to capital, business education, and
    counseling;
    (ii) networking opportunities;
    (iii) mentorship opportunities; and
    (iv) other services intended to aid in
    developing a business.
    (2) Eligible applicant.--The term ``eligible applicant''
    means an applicant eligible to apply for a grant under section
    4(b).
    (3) Indian tribe.--The term ``Indian tribe'' has the meaning
    given the term in section 4 of the Indian Self-Determination and
    Education Assistance Act (25 U.S.C. 5304).
    (4) Institution of higher education.--The term ``institution
    of higher education'' has the meaning given the term in section
    101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
    (5) Native american; native.--The terms ``Native American''
    and ``Native'' have the meaning given the term ``Indian'' in
    section 4 of the Indian Self-Determination and Education
    Assistance Act (25 U.S.C. 5304).
    (6) Native business.--The term ``Native business'' means a
    business concern that is at least 51-percent owned and
    controlled by 1 or more Native Americans.
    (7) Native entrepreneur.--The term ``Native entrepreneur''
    means an entrepreneur who is a Native American.
    (8) Program.--The term ``program'' means the program
    established under section 4(a).
    (9) Reservation.--The term ``reservation'' has the meaning
    given the term in section 3 of the Indian Financing Act of 1974
    (25 U.S.C. 1452).
    (10) Secretary.--The term ``Secretary'' means the Secretary
    of the Interior.
    (11) Tribal college or university.--The term ``tribal
    college or university'' has the meaning given the term ``Tribal
    College or University'' in section 316(b) of the Higher
    Education Act of 1965 (20 U.S.C. 1059c(b)).
    SEC. 4. <>  ESTABLISHMENT OF PROGRAM.

    (a) In General.--The Secretary shall establish a program in the
    Office of Indian Energy and Economic Development under which the
    Secretary shall provide financial assistance in the form of competitive
    grants to eligible applicants for the establishment and operation of
    business incubators that serve reservation communities by providing
    business incubation and other business services to Native businesses and
    Native entrepreneurs.
    (b) Eligible Applicants.--
    (1) In general.--To be eligible to receive a grant under the
    program, an applicant shall--
    (A) be--
    (i) an Indian tribe;
    (ii) a tribal college or university;
    (iii) an institution of higher education; or
    (iv) a private nonprofit organization or
    tribal nonprofit organization that--

    [[Page 841]]

    (I) provides business and financial
    technical assistance; and
    (II) will commit to serving 1 or
    more reservation communities;
    (B) be able to provide the physical workspace,
    equipment, and connectivity necessary for Native
    businesses and Native entrepreneurs to collaborate and
    conduct business on a local, regional, national, and
    international level; and
    (C) <>  in the case of an entity
    described in clauses (ii) through (iv) of subparagraph
    (A), have been operational for not less than 1 year
    before receiving a grant under the program.
    (2) Joint project.--
    (A) In general.--Two or more entities may submit a
    joint application for a project that combines the
    resources and expertise of those entities at a physical
    location dedicated to assisting Native businesses and
    Native entrepreneurs under the program.
    (B) Contents.--A joint application submitted under
    subparagraph (A) shall--
    (i) <>  contain a
    certification that each participant of the joint
    project is one of the eligible entities described
    in paragraph (1)(A); and
    (ii) demonstrate that together the
    participants meet the requirements of
    subparagraphs (B) and (C) of paragraph (1).

    (c) Application and Selection Process.--
    (1) Application requirements.--Each eligible applicant
    desiring a grant under the program shall submit to the Secretary
    an application at such time, in such manner, and containing such
    information as the Secretary may require, including--
    (A) <>  a certification that
    the applicant--
    (i) is an eligible applicant;
    (ii) will designate an executive director or
    program manager, if such director or manager has
    not been designated, to manage the business
    incubator; and
    (iii) agrees--
    (I) <>  to a site
    evaluation by the Secretary as part of
    the final selection process;
    (II) to an annual programmatic and
    financial examination for the duration
    of the grant; and
    (III) to the maximum extent
    practicable, to remedy any problems
    identified pursuant to the site
    evaluation under subclause (I) or an
    examination under subclause (II);
    (B) a description of the 1 or more reservation
    communities to be served by the business incubator;
    (C) <>  a 3-year plan that
    describes--
    (i) the number of Native businesses and Native
    entrepreneurs to be participating in the business
    incubator;
    (ii) whether the business incubator will focus
    on a particular type of business or industry;

    [[Page 842]]

    (iii) a detailed breakdown of the services to
    be offered to Native businesses and Native
    entrepreneurs participating in the business
    incubator; and
    (iv) a detailed breakdown of the services, if
    any, to be offered to Native businesses and Native
    entrepreneurs not participating in the business
    incubator;
    (D) information demonstrating the effectiveness and
    experience of the eligible applicant in--
    (i) conducting financial, management, and
    marketing assistance programs designed to educate
    or improve the business skills of current or
    prospective businesses;
    (ii) working in and providing services to
    Native American communities;
    (iii) providing assistance to entities
    conducting business in reservation communities;
    (iv) providing technical assistance under
    Federal business and entrepreneurial development
    programs for which Native businesses and Native
    entrepreneurs are eligible; and
    (v) managing finances and staff effectively;
    and
    (E) a site description of the location at which the
    eligible applicant will provide physical workspace,
    including a description of the technologies, equipment,
    and other resources that will be available to Native
    businesses and Native entrepreneurs participating in the
    business incubator.
    (2) Evaluation considerations.--
    (A) In general.--In evaluating each application, the
    Secretary shall consider--
    (i) the ability of the eligible applicant--
    (I) to operate a business incubator
    that effectively imparts
    entrepreneurship and business skills to
    Native businesses and Native
    entrepreneurs, as demonstrated by the
    experience and qualifications of the
    eligible applicant;
    (II) to commence providing services
    within a minimum period of time, to be
    determined by the Secretary; and
    (III) to provide quality incubation
    services to a significant number of
    Native businesses and Native
    entrepreneurs;
    (ii) the experience of the eligible applicant
    in providing services in Native American
    communities, including in the 1 or more
    reservation communities described in the
    application; and
    (iii) the proposed location of the business
    incubator.
    (B) Priority.--
    (i) In general.--In evaluating the proposed
    location of the business incubator under
    subparagraph (A)(iii), the Secretary shall--
    (I) consider the program goal of
    achieving broad geographic distribution
    of business incubators; and

    [[Page 843]]

    (II) except as provided in clause
    (ii), give priority to eligible
    applicants that will provide business
    incubation services on or near the
    reservation of the 1 or more communities
    that were described in the application.
    (ii) <>  Exception.--The
    Secretary may give priority to an eligible
    applicant that is not located on or near the
    reservation of the 1 or more communities that were
    described in the application if the Secretary
    determines that--
    (I) the location of the business
    incubator will not prevent the eligible
    applicant from providing quality
    business incubation services to Native
    businesses and Native entrepreneurs from
    the 1 or more reservation communities to
    be served; and
    (II) siting the business incubator
    in the identified location will serve
    the interests of the 1 or more
    reservation communities to be served.
    (3) Site evaluation.--
    (A) In general.--Before making a grant to an
    eligible applicant, the Secretary shall conduct a site
    visit, evaluate a video submission, or evaluate a
    written site proposal (if the applicant is not yet in
    possession of the site) of the proposed site to ensure
    the proposed site will permit the eligible applicant to
    meet the requirements of the program.
    (B) Written site proposal.--A written site proposal
    shall meet the requirements described in paragraph
    (1)(E) and contain--
    (i) sufficient detail for the Secretary to
    ensure in the absence of a site visit or video
    submission that the proposed site will permit the
    eligible applicant to meet the requirements of the
    program; and
    (ii) <>  a timeline
    describing when the eligible applicant will be--
    (I) in possession of the proposed
    site; and
    (II) operating the business
    incubator at the proposed site.
    (C) <>  Followup.--Not later than 1
    year after awarding a grant to an eligible applicant
    that submits an application with a written site
    proposal, the Secretary shall conduct a site visit or
    evaluate a video submission of the site to ensure the
    site is consistent with the written site proposal.

    (d) Administration.--
    (1) Duration.--Each grant awarded under the program shall be
    for a term of 3 years.
    (2) Payment.--
    (A) In general.--Except as provided in subparagraph
    (B), the Secretary shall disburse grant funds awarded to
    an eligible applicant in annual installments.
    (B) More frequent disbursements.--On request by the
    applicant, the Secretary may make disbursements of grant
    funds more frequently than annually, on the condition
    that disbursements shall be made not more frequently
    than quarterly.
    (3) Non-federal contributions for initial assistance.--

    [[Page 844]]

    (A) In general.--Except as provided in subparagraph
    (B), an eligible applicant that receives a grant under
    the program shall provide non-Federal contributions in
    an amount equal to not less than 25 percent of the grant
    amount disbursed each year.
    (B) <>  Waiver.--The Secretary
    may waive, in whole or in part, the requirements of
    subparagraph (A) with respect to an eligible applicant
    if, after considering the ability of the eligible
    applicant to provide non-Federal contributions, the
    Secretary determines that--
    (i) the proposed business incubator will
    provide quality business incubation services; and
    (ii) the 1 or more reservation communities to
    be served are unlikely to receive similar services
    because of remoteness or other reasons that
    inhibit the provision of business and
    entrepreneurial development services.
    (4) Renewals.--
    (A) <>  In general.--The
    Secretary may renew a grant award under the program for
    a term not to exceed 3 years.
    (B) <>  Considerations.--In
    determining whether to renew a grant award, the
    Secretary shall consider with respect to the eligible
    applicant--
    (i) the results of the annual evaluations of
    the eligible applicant under subsection (f)(1);
    (ii) the performance of the business incubator
    of the eligible applicant, as compared to the
    performance of other business incubators receiving
    assistance under the program;
    (iii) whether the eligible applicant continues
    to be eligible for the program; and
    (iv) the evaluation considerations for initial
    awards under subsection (c)(2).
    (C) Non-federal contributions for renewals.--An
    eligible applicant that receives a grant renewal under
    subparagraph (A) shall provide non-Federal contributions
    in an amount equal to not less than 33 percent of the
    total amount of the grant.
    (5) No duplicative grants.--An eligible applicant shall not
    be awarded a grant under the program that is duplicative of
    existing Federal funding from another source.

    (e) Program Requirements.--
    (1) Use of funds.--An eligible applicant receiving a grant
    under the program may use grant amounts--
    (A) to provide physical workspace and facilities for
    Native businesses and Native entrepreneurs participating
    in the business incubator;
    (B) to establish partnerships with other
    institutions and entities to provide comprehensive
    business incubation services to Native businesses and
    Native entrepreneurs participating in the business
    incubator; and
    (C) for any other uses typically associated with
    business incubators that the Secretary determines to be
    appropriate and consistent with the purposes of the
    program.
    (2) Minimum requirements.--Each eligible applicant receiving
    a grant under the program shall--

    [[Page 845]]

    (A) offer culturally tailored incubation services to
    Native businesses and Native entrepreneurs;
    (B) use a competitive process for selecting Native
    businesses and Native entrepreneurs to participate in
    the business incubator;
    (C) provide physical workspace that permits Native
    businesses and Native entrepreneurs to conduct business
    and collaborate with other Native businesses and Native
    entrepreneurs;
    (D) provide entrepreneurship and business skills
    training and education to Native businesses and Native
    entrepreneurs including--
    (i) financial education, including training
    and counseling in--
    (I) applying for and securing
    business credit and investment capital;
    (II) preparing and presenting
    financial statements; and
    (III) managing cash flow and other
    financial operations of a business;
    (ii) management education, including training
    and counseling in planning, organization,
    staffing, directing, and controlling each major
    activity or function of a business or startup; and
    (iii) marketing education, including training
    and counseling in--
    (I) identifying and segmenting
    domestic and international market
    opportunities;
    (II) preparing and executing
    marketing plans;
    (III) locating contract
    opportunities;
    (IV) negotiating contracts; and
    (V) using varying public relations
    and advertising techniques;
    (E) provide direct mentorship or assistance finding
    mentors in the industry in which the Native business or
    Native entrepreneur operates or intends to operate; and
    (F) provide access to networks of potential
    investors, professionals in the same or similar fields,
    and other business owners with similar businesses.
    (3) Technology.--Each eligible applicant shall leverage
    technology to the maximum extent practicable to provide Native
    businesses and Native entrepreneurs with access to the
    connectivity tools needed to compete and thrive in 21st-century
    markets.

    (f) Oversight.--
    (1) <>  Annual evaluations.--Not
    later than 1 year after the date on which the Secretary awards a
    grant to an eligible applicant under the program, and annually
    thereafter for the duration of the grant, the Secretary shall
    conduct an evaluation of, and prepare a report on, the eligible
    applicant, which shall--
    (A) describe the performance of the eligible
    applicant; and
    (B) be used in determining the ongoing eligibility
    of the eligible applicant.
    (2) Annual report.--
    (A) In general.--Not later than 1 year after the
    date on which the Secretary awards a grant to an
    eligible

    [[Page 846]]

    applicant under the program, and annually thereafter for
    the duration of the grant, each eligible applicant
    receiving an award under the program shall submit to the
    Secretary a report describing the services the eligible
    applicant provided under the program during the
    preceding year.
    (B) Report content.--The report described in
    subparagraph (A) shall include--
    (i) a detailed breakdown of the Native
    businesses and Native entrepreneurs receiving
    services from the business incubator, including,
    for the year covered by the report--
    (I) the number of Native businesses
    and Native entrepreneurs participating
    in or receiving services from the
    business incubator and the types of
    services provided to those Native
    businesses and Native entrepreneurs;
    (II) the number of Native businesses
    and Native entrepreneurs established and
    jobs created or maintained; and
    (III) the performance of Native
    businesses and Native entrepreneurs
    while participating in the business
    incubator and after graduation or
    departure from the business incubator;
    and
    (ii) any other information the Secretary may
    require to evaluate the performance of a business
    incubator to ensure appropriate implementation of
    the program.
    (C) Limitations.--To the maximum extent practicable,
    the Secretary shall not require an eligible applicant to
    report under subparagraph (A) information provided to
    the Secretary by the eligible applicant under other
    programs.
    (D) Coordination.--The Secretary shall coordinate
    with the heads of other Federal agencies to ensure that,
    to the maximum extent practicable, the report content
    and form under subparagraphs (A) and (B) are consistent
    with other reporting requirements for Federal programs
    that provide business and entrepreneurial assistance.
    (3) Report to congress.--
    (A) In general.--Not later than 2 years after the
    date on which the Secretary first awards funding under
    the program, and biennially thereafter, the Secretary
    shall submit to the Committee on Indian Affairs of the
    Senate and the Committee on Natural Resources of the
    House of Representatives a report on the performance and
    effectiveness of the program.
    (B) Contents.--Each report submitted under
    subparagraph (A) shall--
    (i) account for each program year; and
    (ii) include with respect to each business
    incubator receiving grant funds under the
    program--
    (I) the number of Native businesses
    and Native entrepreneurs that received
    business incubation or other services;
    (II) the number of businesses
    established with the assistance of the
    business incubator;

    [[Page 847]]

    (III) the number of jobs established
    or maintained by Native businesses and
    Native entrepreneurs receiving business
    incubation services, including a
    description of where the jobs are
    located with respect to reservation
    communities;
    (IV) to the maximum extent
    practicable, the amount of capital
    investment and loan financing accessed
    by Native businesses and Native
    entrepreneurs receiving business
    incubation services; and
    (V) an evaluation of the overall
    performance of the business incubator.
    SEC. 5. <>  REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, the
    Secretary shall promulgate regulations to implement the program.
    SEC. 6. <>  SCHOOLS TO BUSINESS INCUBATOR
    PIPELINE.

    The Secretary shall facilitate the establishment of relationships
    between eligible applicants receiving funds through the program and
    educational institutions serving Native American communities, including
    tribal colleges and universities.
    SEC. 7. <>  AGENCY PARTNERSHIPS.

    The Secretary shall coordinate with the Secretary of Agriculture,
    the Secretary of Commerce, the Secretary of the Treasury, and the
    Administrator of the Small Business Administration to ensure, to the
    maximum extent practicable, that business incubators receiving grant
    funds under the program have the information and materials needed to
    provide Native businesses and Native entrepreneurs with the information
    and assistance necessary to apply for business and entrepreneurial
    development programs administered by the Department of Agriculture, the
    Department of Commerce, the Department of the Treasury, and the Small
    Business Administration.
    SEC. 8. <>  AUTHORIZATIONS OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out the program
    $5,000,000 for each of fiscal years 2020 through 2024.

    Approved October 20, 2020.

    LEGISLATIVE HISTORY--S. 294:
    ---------------------------------------------------------------------------

    SENATE REPORTS: No. 116-29 (Comm. on Indian Affairs).
    CONGRESSIONAL RECORD:
    Vol. 165 (2019):
    June 27, considered and passed
    Senate.
    Vol. 166 (2020):
    Sept. 21, considered and passed
    House.