Requires the SBA to provide financial assistance to tribal governments, tribal colleges, Native Hawaiian organizations, and Alaska Native corporations to create Native American business centers. Requires: (1) each business center to conduct five-year projects for business education aid to such entities; (2) each assistance applicant to submit a five-year plan on proposed assistance and training activities; (3) each business center to annually provide the Administrator with an itemized cost breakdown of project expenses; (4) the Administrator to report annually to the congressional small business committees on the effectiveness of such projects; and (5) each entity receiving assistance to report to the SBA on services provided with such assistance. Authorizes appropriations for FY 2003 through 2007.
Establishes a four-year pilot program under which the SBA is authorized to award Native American development grants to provide culturally-tailored business development training and related services to Native Americans and Native American small businesses. Requires the same number of such grants to be awarded to small business development centers and private, nonprofit organizations providing appropriate assistance to Indian tribes, Native Hawaiians, and Alaska Natives. Provides for: (1) initial disbursement of grant assistance; and (2) provisional approval of applications. Requires each grant recipient to report annually to the SBA on the impact of grant funding. Authorizes appropriations for FY 2003 through 2006.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2335 Introduced in Senate (IS)]
107th CONGRESS
2d Session
S. 2335
To establish the Office of Native American Affairs within the Small
Business Administration, to create the Native American Small Business
Development Program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 25, 2002
Mr. Johnson (for himself, Mr. Kerry, Ms. Cantwell, Mr. Wellstone, Mr.
Daschle, Mr. Baucus, Mr. Inouye, Mr. Bingaman, Ms. Stabenow, and Mrs.
Clinton) introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To establish the Office of Native American Affairs within the Small
Business Administration, to create the Native American Small Business
Development Program, and for other purposes.
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 Small Business
Development Act''.
SEC. 2. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 36 as section 37; and
(2) by inserting after section 35 the following:
``SEC. 36. NATIVE AMERICAN SMALL BUSINESS DEVELOPMENT PROGRAM.
``(a) Definitions.--In this section--
``(1) the term `Alaska Native' has the same meaning as the
term `Native' in section 3(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(b));
``(2) the term `Alaska Native corporation' has the same
meaning as the term `Native Corporation' in section 3(m) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602(m));
``(3) the term `Assistant Administrator' means the
Assistant Administrator of the Office of Native American
Affairs established under subsection (b);
``(4) the terms `center' and `Native American business
center' mean a center established under subsection (c);
``(5) the term `Native American business development
center' means an entity providing business development
assistance to federally recognized tribes and Native Americans
under a grant from the Minority Business Development Agency of
the Department of Commerce;
``(6) the term `Native American small business concern'
means a small business concern that is owned and controlled
by--
``(A) a member of an Indian tribe or tribal
government;
``(B) an Alaska Native or Alaska Native
corporation; or
``(C) a Native Hawaiian or Native Hawaiian
organization;
``(7) the term `Native Hawaiian' has the same meaning as in
section 625 of the Older Americans Act of 1965 (42 U.S.C.
3057k);
``(8) the term `Native Hawaiian organization' has the same
meaning as in section 8(a)(15) of this Act;
``(9) the term `tribal college' has the same meaning as the
term `tribally controlled college or university' has in section
2(a)(4) of the Tribally Controlled Community College Assistance
Act of 1978 (25 U.S.C. 1801(a)(4));
``(10) the term `tribal government' has the same meaning as
the term `Indian tribe' has in section 7501(a)(9) of title 31,
United States Code; and
``(11) the term `tribal lands' means--
``(A) all lands within the exterior boundaries of
any Indian reservation; and
``(B) all dependent Indian communities.
``(b) Office of Native American Affairs.--
``(1) Establishment.--There is established within the
Administration the Office of Native American Affairs, which,
under the direction of the Assistant Administrator, shall
implement the Administration's programs for the development of
business enterprises by Native Americans.
``(2) Purpose.--The purpose of the Office of Native
American Affairs is to assist Native American entrepreneurs
to--
``(A) start, operate, and grow small business
concerns;
``(B) develop management and technical skills;
``(C) seek Federal procurement opportunities;
``(D) increase employment opportunities for Native
Americans through the start and expansion of small
business concerns; and
``(E) increase the access of Native Americans to
capital markets.
``(3) Assistant administrator.--
``(A) Appointment.--The Administrator shall appoint
a qualified individual to serve as Assistant
Administrator of the Office of Native American Affairs
in accordance with this paragraph.
``(B) Qualifications.--The Assistant Administrator
appointed under subparagraph (A) shall have--
``(i) knowledge of the Native American
culture; and
``(ii) experience providing culturally
tailored small business development assistance
to Native Americans.
``(C) Employment status.--The Assistant
Administrator shall be a Senior Executive Service
position under section 3132(a)(2) of title 5, United
States Code, and shall serve as a noncareer appointee,
as defined in section 3132(a)(7) of title 5, United
States Code.
``(D) Responsibilities and duties.--The Assistant
Administrator shall--
``(i) administer and manage the Native
American Small Business Development program
established under this section;
``(ii) recommend the annual administrative
and program budgets for the Office of Native
American Affairs;
``(iii) establish appropriate funding
levels;
``(iv) review the annual budgets submitted
by each applicant for the Native American Small
Business Development program;
``(v) select applicants to participate in
the program under this section;
``(vi) implement this section; and
``(vii) maintain a clearinghouse to provide
for the dissemination and exchange of
information between Native American business
centers.
``(E) Consultation requirements.--In carrying out
the responsibilities and duties described in this
paragraph, the Assistant Administrator shall confer
with and seek the advice of--
``(i) Administration officials working in
areas served by Native American business
centers and Native American business
development centers;
``(ii) the Bureau of Indian Affairs of the
Department of the Interior;
``(iii) tribal governments;
``(iv) tribal colleges;
``(v) Alaska Native corporations; and
``(vi) Native Hawaiian organizations.
``(c) Native American Small Business Development Program.--
``(1) Authorization.--
``(A) In general.--The Administration, through the
Office of Native American Affairs, shall provide
financial assistance to tribal governments, tribal
colleges, Native Hawaiian organizations, and Alaska
Native corporations to create Native American business
centers in accordance with this section.
``(B) Resource assistance.--The Administration may
also provide in-kind resource assistance to Native
American business centers located on tribal lands. Such
assistance may include--
``(i) personal computers;
``(ii) graphic workstations;
``(iii) CD-ROM technology and interactive
videos;
``(iv) distance learning business-related
training courses;
``(v) computer software; and
``(vi) reference materials.
``(C) Use of funds.--The financial and resource
assistance provided under this subsection shall be used
to overcome obstacles impeding the creation,
development, and expansion of small business concerns,
in accordance with this section, by--
``(i) reservation-based American Indians;
``(ii) Alaska Natives; and
``(iii) Native Hawaiians.
``(2) 5-year projects.--
``(A) In general.--Each Native American business
center that receives assistance under paragraph (1)(A)
shall conduct 5-year projects that offer culturally
tailored business development assistance in the form
of--
``(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 concern;
``(ii) management education, including
training and counseling in planning,
organizing, staffing, directing, and
controlling each major activity and function of
a small business concern; 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) developing pricing
strategies;
``(IV) locating contract
opportunities;
``(V) negotiating contracts; and
``(VI) utilizing varying public
relations and advertising techniques.
``(B) Business development assistance recipients.--
The business development assistance under subparagraph
(A) shall be offered to prospective and current owners
of small business concerns that are owned by--
``(i) American Indians or tribal
governments, and located on or near tribal
lands;
``(ii) Alaska Natives or Alaska Native
corporations; or
``(iii) Native Hawaiians or Native Hawaiian
organizations.
``(3) Form of federal financial assistance.--
``(A) Documentation.--
``(i) In general.--The financial assistance
to Native American business centers authorized
under this subsection may be made by grant,
contract, or cooperative agreement.
``(ii) Exception.--Financial assistance
under this subsection to Alaska Native
corporations or Native Hawaiian organizations
may only be made by grant.
``(B) Payments.--
``(i) Timing.--Payments made under this
subsection may be disbursed--
``(I) in a single lump sum or in
periodic installments; and
``(II) in advance or after costs
are incurred.
``(ii) Advance.--The Administration may
disburse not more than 25 percent of the annual
amount of Federal financial assistance awarded
to a Native American small business center
after notice of the award has been issued.
``(iii) No matching requirement.--The
Administration shall not require a grant
recipient to match grant funding received under
this subsection with non-Federal resources as a
condition of receiving the grant.
``(4) Contract and cooperative agreement authority.--A
Native American business center may enter into a contract or
cooperative agreement with a Federal department or agency to
provide specific assistance to Native American and other under-
served small business concerns located on or near tribal lands,
to the extent that such contract or cooperative agreement is
consistent with the terms of any assistance received by the
Native American business center from the Administration.
``(5) Application process.--
``(A) Submission of a 5-year plan.--Each applicant
for assistance under paragraph (1) shall submit a 5-
year plan to the Administration on proposed assistance
and training activities.
``(B) Criteria.--
``(i) In general.--The Administration shall
evaluate and rank applicants in accordance with
predetermined selection criteria that shall be
stated in terms of relative importance.
``(ii) Public notice.--The criteria
required by this paragraph and their relative
importance shall be made publicly available,
within a reasonable time, and stated in each
solicitation for applications made by the
Administration.
``(iii) Considerations.--The criteria
required by this paragraph shall include--
``(I) the experience of the
applicant in conducting programs or
ongoing efforts designed to impart or
upgrade the business skills of current
or potential owners of Native American
small business concerns;
``(II) the ability of the applicant
to commence a project within a minimum
amount of time;
``(III) the ability of the
applicant to provide training and
services to a representative number of
Native Americans;
``(IV) previous assistance from the
Small Business Administration to
provide services in Native American
communities; and
``(V) the proposed location for the
Native American business center site,
with priority given based on the
proximity of the center to the
population being served and to achieve
a broad geographic dispersion of the
centers.
``(6) Program examination.--
``(A) In general.--Each Native American business
center established pursuant to this subsection shall
annually provide the Administration with an itemized
cost breakdown of actual expenditures incurred during
the preceding year.
``(B) Administration action.--Based on information
received under subparagraph (A), the Administration
shall--
``(i) develop and implement an annual
programmatic and financial examination of each
Native American business center assisted
pursuant to this subsection; and
``(ii) analyze the results of each
examination conducted under clause (i) to
determine the programmatic and financial
viability of each Native American business
center.
``(C) Conditions for continued funding.--In
determining whether to renew a grant, contract, or
cooperative agreement with a Native American business
center, the Administration--
``(i) shall consider the results of the
most recent examination of the center under
subparagraph (B), and, to a lesser extent,
previous examinations; and
``(ii) may withhold such renewal, if the
Administration determines that--
``(I) the center has failed to
provide any information required to be
provided under subparagraph (A), or the
information provided by the center is
inadequate;
``(II) the center has failed to
provide any information required to be
provided by the center for purposes of
the report of the Administration under
subparagraph (E); or
``(III) the information required to
be provided by the center is
incomplete.
``(D) Continuing contract and cooperative agreement
authority.--
``(i) In general.--The authority of the
Administrator to enter into contracts or
cooperative agreements in accordance with this
subsection shall be in effect for each fiscal
year only to the extent and in the amounts as
are provided in advance in appropriations Acts.
``(ii) Renewal.--After the Administrator
has entered into a contract or cooperative
agreement with any Native American business
center under this subsection, it shall not
suspend, terminate, or fail to renew or extend
any such contract or cooperative agreement
unless the Administrator provides the center
with written notification setting forth the
reasons therefore and affords the center an
opportunity for a hearing, appeal, or other
administrative proceeding under chapter 5 of
title 5, United States Code.
``(E) Management report.--
``(i) In general.--The Administration shall
prepare and submit to the Committee on Small
Business of the House of Representatives and
the Committee on Small Business and
Entrepreneurship of the Senate an annual report
on the effectiveness of all projects conducted
by Native American business centers under this
subsection and any pilot programs administered
by the Office of Native American Affairs.
``(ii) Contents.--Each report submitted
under clause (i) shall include, with respect to
each Native American business center receiving
financial assistance under this subsection--
``(I) the number of individuals
receiving assistance from the Native
American business center;
``(II) the number of startup
business concerns formed;
``(III) the gross receipts of
assisted concerns;
``(IV) the employment increases or
decreases of Native American small
business concerns assisted by the
center since receiving funding under
this Act;
``(V) to the maximum extent
practicable, increases or decreases in
profits of Native American small
business concerns assisted by the
center since receiving funding under
this Act; and
``(VI) the most recent examination,
as required under subparagraph (B), and
the subsequent determination made by
the Administration under that
subparagraph.
``(7) Annual report.--Each entity receiving financial
assistance under this subsection shall annually report to the
Administration on the services provided with such financial
assistance, including--
``(A) the number of individuals assisted,
categorized by ethnicity;
``(B) the number of hours spent providing
counseling and training for those individuals;
``(C) the number of startup small business concerns
formed, maintained, and lost;
``(D) the gross receipts of assisted small business
concerns;
``(E) the number of jobs created, maintained, or
lost at assisted small business concerns; and
``(F) the number of Native American jobs created,
maintained, or lost at assisted small business
concerns.
``(8) Record retention.--
``(A) Applications.--The Administration shall
maintain a copy of each application submitted under
this subsection for not less than 10 years.
``(B) Annual reports.--The Administration shall
maintain copies of the information collected under
paragraph (6)(A) indefinitely.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 for each of the fiscal years 2003 through 2007,
to carry out the Native American Small Business Development Program,
authorized under subsection (c).''.
SEC. 3. PILOT PROGRAMS.
(a) Definitions.--In this section:
(1) Incorporation by reference.--The terms defined in
section 36(a) of the Small Business Act (as added by this Act)
have the same meanings as in that section 36(a) when used in
this section.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(3) Joint project.--The term ``joint project'' means the
combined resources and expertise of 2 or more distinct entities
at a physical location dedicated to assisting the Native
American community;
(b) Native American Development Grant Pilot Program.--
(1) Authorization.--
(A) In general.--There is established a 4-year
pilot program under which the Administration is
authorized to award Native American development grants
to provide culturally-tailored business development
training and related services to Native Americans and
Native American small business concerns.
(B) Eligible organizations.--The grants authorized
under subparagraph (A) may be awarded to--
(i) any small business development center;
or
(ii) any private, nonprofit organization
that--
(I) has tribal government members,
or their designees, comprising a
majority of its board of directors;
(II) is a Native Hawaiian
organization; or
(III) is an Alaska Native
corporation.
(C) Amounts.--The Administration shall not award a
grant under this subsection in an amount which exceeds
$100,000 for each year of the project.
(D) Grant duration.--Each grant under this
subsection shall be awarded for not less than a 2-year
period and not more than a 4-year period.
(2) Conditions for participation.--Each entity desiring a
grant under this subsection shall submit an application to the
Administration that contains--
(A) a certification that the applicant--
(i) is a small business development center
or a private, nonprofit organization under
paragraph (1)(B)(i);
(ii) employs a full-time executive director
or program manager to manage the facility; and
(iii) agrees--
(I) to a site visit as part of the
final selection process;
(II) to an annual programmatic and
financial examination; and
(III) to the maximum extent
practicable, to remedy any problems
identified pursuant to that site visit
or examination;
(B) information demonstrating that the applicant
has the ability and resources to meet the needs,
including cultural needs, of the Native Americans to be
served by the grant;
(C) information relating to proposed assistance
that the grant will provide, including--
(i) the number of individuals to be
assisted; and
(ii) the number of hours of counseling,
training, and workshops to be provided;
(D) information demonstrating the effective
experience of the applicant in--
(i) conducting financial, management, and
marketing assistance programs designed to
impart or upgrade the business skills of
current or prospective Native American business
owners;
(ii) providing training and services to a
representative number of Native Americans;
(iii) using resource partners of the
Administration and other entities, including
universities, tribal governments, or tribal
colleges; and
(iv) the prudent management of finances and
staffing;
(E) the location where the applicant will provide
training and services to Native Americans; and
(F) a multiyear plan, corresponding to the length
of the grant, that describes--
(i) the number of Native Americans and
Native American small business concerns to be
served by the grant;
(ii) in the continental United States, the
number of Native Americans to be served by the
grant; and
(iii) the training and services to be
provided to a representative number of Native
Americans.
(3) Review of applications.--The Administration shall--
(A) evaluate and rank applicants under paragraph
(2) in accordance with predetermined selection criteria
that is stated in terms of relative importance;
(B) include such criteria in each solicitation
under this subsection and make such information
available to the public; and
(C) approve or disapprove each completed
application submitted under this subsection not more
than 60 days after submission.
(4) Annual report.--Each recipient of a Native American
development grant under this subsection shall annually report
to the Administration on the impact of the grant funding,
including--
(A) the number of individuals assisted, categorized
by ethnicity;
(B) the number of hours spent providing counseling
and training for those individuals;
(C) the number of startup small business concerns
formed, maintained, and lost;
(D) the gross receipts of assisted small business
concerns;
(E) the number of jobs created, maintained, or lost
at assisted small business concerns; and
(F) the number of Native American jobs created,
maintained, or lost at assisted small business
concerns.
(5) Record retention.--
(A) Applications.--The Administration shall
maintain a copy of each application submitted under
this subsection for not less than 10 years.
(B) Annual reports.--The Administration shall
maintain copies of the information collected under
paragraph (4) indefinitely.
(c) American Indian Tribal Assistance Center Grant Pilot Program.--
(1) Authorization.--
(A) In general.--There is established a 4-year
pilot program, under which the Administration shall
award not less than 3 American Indian Tribal Assistance
Center grants to establish joint projects to provide
culturally tailored business development assistance to
prospective and current owners of small business
concerns located on or near tribal lands.
(B) Eligible organizations.--
(i) Class 1.--Not fewer than 1 grant shall
be awarded to a joint project performed by a
Native American business center, a Native
American business development center, and a
small business development center.
(ii) Class 2.--Not fewer than 2 grants
shall be awarded to joint projects performed by
a Native American business center and a Native
American business development center.
(C) Amounts.--The Administration shall not award a
grant under this subsection in an amount which exceeds
$200,000 for each year of the project.
(D) Grant duration.--Each grant under this
subsection shall be awarded for a 3-year period.
(2) Conditions for participation.--Each entity desiring a
grant under this subsection shall submit to the Administration
a joint application that contains--
(A) a certification that each participant of the
joint application--
(i) is either a Native American Business
Center, a Native American Business Development
Center, or a Small Business Development Center;
(ii) employs a full-time executive director
or program manager to manage the center; and
(iii) as a condition of receiving the
American Indian Tribal Assistance Center grant,
agrees--
(I) to an annual programmatic and
financial examination; and
(II) to the maximum extent
practicable, to remedy any problems
identified pursuant to that
examination;
(B) information demonstrating a historic commitment
to providing assistance to Native Americans--
(i) residing on or near tribal lands; or
(ii) operating a small business concern on
or near tribal lands;
(C) information demonstrating that each participant
of the joint application has the ability and resources
to meet the needs, including the cultural needs of the
Native Americans to be served by the grant;
(D) information relating to proposed assistance
that the grant will provide, including--
(i) the number of individuals to be
assisted; and
(ii) the number of hours of counseling,
training, and workshops to be provided;
(E) information demonstrating the effective
experience of each participant of the joint application
in--
(i) conducting financial, management, and
marketing assistance programs, as described
above, designed to impart or upgrade the
business skills of current or prospective
Native American business owners; and
(ii) the prudent management of finances and
staffing; and
(F) a plan for the length of the grant, that
describes--
(i) the number of Native Americans and
Native American small business concerns to be
served by the grant; and
(ii) the training and services to be
provided.
(3) Review of applications.--The Administration shall--
(A) evaluate and rank applicants under paragraph
(2) in accordance with predetermined selection criteria
that is stated in terms of relative importance;
(B) include such criteria in each solicitation
under this subsection and make such information
available to the public; and
(C) approve or disapprove each application
submitted under this subsection not more than 60 days
after submission.
(4) Annual report.--Each recipient of an American Indian
tribal assistance center grant under this subsection shall
annually report to the Administration on the impact of the
grant funding received during the reporting year, and the
cumulative impact of the grant funding received since the
initiation of the grant, including--
(A) the number of individuals assisted, categorized
by ethnicity;
(B) the number of hours of counseling and training
provided and workshops conducted;
(C) the number of startup business concerns formed,
maintained, and lost;
(D) the gross receipts of assisted small business
concerns;
(E) the number of jobs created, maintained, or lost
at assisted small business concerns; and
(F) the number of Native American jobs created,
maintained, or lost at assisted small business
concerns.
(5) Record retention.--
(A) Applications.--The Administration shall
maintain a copy of each application submitted under
this subsection for not less than 10 years.
(B) Annual reports.--The Administration shall
maintain copies of the information collected under
paragraph (4) indefinitely.
(d) Authorization of Appropriations.--There are authorized to be
appropriated--
(1) $1,000,000 for each of the fiscal years 2003 through
2006, to carry out the Native American Development Grant Pilot
Program, authorized under subsection (b); and
(2) $1,000,000 for each of the fiscal years 2003 through
2006, to carry out the American Indian Tribal Assistance Center
Grant Pilot Program, authorized under subsection (c).
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S3443-3444)
Read twice and referred to the Committee on Small Business and Entrepreneurship. (text of measure as introduced: CR S3444-3447)
Committees on Small Business and Entrepreneurship. Joint hearings held with Indian Affairs.
Committee on Small Business and Entrepreneurship. Ordered to be reported with an amendment favorably.
Committee on Small Business and Entrepreneurship. Reported by Senator Kerry with amendments. With written report No. 107-236.
Committee on Small Business and Entrepreneurship. Reported by Senator Kerry with amendments. With written report No. 107-236.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 545.
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