Native American Business Incubators Program Act
This bill establishes a grant program to provide business incubation and other business services to Native American entrepreneurs and businesses.
(Sec. 4) Specifically, the bill requires the Department of the Interior to establish a grant program in the Office of Indian Energy and Economic Development for establishing and operating business incubators that serve Native American communities. A business incubator is an organization that (1) provides physical workspace and facilities resources to start-ups and established businesses, and (2) is designed to accelerate the growth and success of businesses through a variety of business support resources and services. Grant applicants may be institutions of higher education, private nonprofits, Native American tribes, or tribal nonprofits.
Interior must issue a grant for a three-year term and may renew a grant for up to three more years.
Grant recipients must generally provide a nonfederal contribution of at least 25% of the annual grant disbursement each year; however, Interior may waive this requirement under certain circumstances. Further, grant recipients must provide a nonfederal contribution of at least 33% of a grant renewal.
(Sec. 6) Interior must facilitate the establishment of relationships between grant recipients and educational institutions serving Native American communities.
(Sec. 7) Additionally, Interior must coordinate with the Department of Agriculture, the Department of Commerce, the Department of the Treasury, and the Small Business Administration to ensure that grant recipients have the information and materials needed to provide Native American businesses and entrepreneurs with assistance in applying for federal business and entrepreneurial development programs.
[116th Congress Public Law 174]
[From the U.S. Government Publishing Office]
[[Page 134 STAT. 839]]
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. <<NOTE: Oct. 20, 2020 - [S. 294]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Native
American Business Incubators Program Act.>>
SECTION 1. <<NOTE: 25 USC 5801 note.>> SHORT TITLE.
This Act may be cited as the ``Native American Business Incubators
Program Act''.
SEC. 2. <<NOTE: 25 USC 5801.>> 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. <<NOTE: 25 USC 5802.>> 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 134 STAT. 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. <<NOTE: Grants. 25 USC 5803.>> 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 134 STAT. 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) <<NOTE: Time period.>> 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) <<NOTE: Certification.>> 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) <<NOTE: Certification.>> 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) <<NOTE: Evaluation.>> 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) <<NOTE: Time period. Plan.>> 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 134 STAT. 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 134 STAT. 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) <<NOTE: Determination.>> 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) <<NOTE: Timeline.>> 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) <<NOTE: Deadline.>> 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 134 STAT. 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) <<NOTE: Determination.>> 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) <<NOTE: Time period.>> In general.--The
Secretary may renew a grant award under the program for
a term not to exceed 3 years.
(B) <<NOTE: Determination.>> 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 134 STAT. 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) <<NOTE: Deadline. Reports.>> 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 134 STAT. 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 134 STAT. 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. <<NOTE: Deadline. 25 USC 5804.>> 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. <<NOTE: 25 USC 5805.>> 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. <<NOTE: Coordination. 25 USC 5806.>> 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. <<NOTE: 25 USC 5807.>> 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.
<all>
Passed Senate without amendment by Voice Vote. (consideration: CR S4652-4664; text: CR S4660-4662)
Message on Senate action sent to the House.
Received in the House.
Referred to the House Committee on Natural Resources.
Referred to the Subcommittee for Indigenous Peoples of the United States.
Subcommittee for Indigenous Peoples of the United States Discharged.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by Unanimous Consent.
Ms. Haaland moved to suspend the rules and pass the bill.
Considered under suspension of the rules. (consideration: CR H4562-4565)
DEBATE - The House proceeded with forty minutes of debate on S. 294.
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote.
Enacted as Public Law 116-174
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On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H4562-4564)
Motion to reconsider laid on the table Agreed to without objection.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 116-174.
Became Public Law No: 116-174.