SOAR Act

Summary: Startup Opportunity Accelerator Act of 2014 or the SOAR Act - Amends the Small Business Act to require the Administrator of the Small Business Administration (SBA) to develop a program to award cash prizes of up to $50,000 to organizations in the United States whose primary purpose is to support new small businesses that have been in operation for five years or less. Authorizes the use of a prize for construction costs, space acquisition, and programmatic purposes. Prohibits its use for capital or professional services to new small businesses. Requires a prize recipient to provide assistance to at least 10 new small businesses per year. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Startup Opportunity Accelerator Act 
of 2014'' or the ``SOAR Act''.

SEC. 2. FUNDING FOR ORGANIZATIONS THAT SUPPORT STARTUP BUSINESSES.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 47 (15 U.S.C. 631 note) as 
        section 48; and
            (2) by inserting after section 46 the following:

``SEC. 47. FUNDING FOR ORGANIZATIONS THAT SUPPORT STARTUP BUSINESSES.

    ``(a) Definitions.--In this section--
            ``(1) the term `eligible entity' means an organization--
                    ``(A) that is located in the United States; and
                    ``(B) the primary purpose of which is to support 
                new small business concerns;
            ``(2) the term `new small business concern' means a small 
        business concern that has been in operation for not more than 5 
        years; and
            ``(3) the term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and any territory or possession of the United States.
    ``(b) Funding.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator shall develop and 
        begin implementing a program to award cash prizes of not more 
        than $50,000 to eligible entities to support new small business 
        concerns.
            ``(2) Use of funds.--A prize under this section--
                    ``(A) may be used for construction costs, space 
                acquisition, and programmatic purposes; and
                    ``(B) may not be used to provide capital or 
                professional services to new small business concerns 
                directly or through the subaward of funds.
    ``(c) Requirement for Applicants.--An eligible entity desiring a 
prize under this section shall demonstrate that the eligible entity 
will use the prize to provide assistance to not less than 10 new small 
business concerns per year.
    ``(d) Criteria.--The Administrator shall establish criteria for 
prizes under this section that shall give priority to eligible entities 
that are providing or plan to provide to new small business concerns--
            ``(1) office, manufacturing, or warehouse space, including 
        appropriate operations infrastructure;
            ``(2) access to capital (either directly from the eligible 
        entity (using amounts other than the amounts provided under the 
        prize) or through guidance and contacts for acquiring capital 
        from outside investors);
            ``(3) access to professional services (either directly from 
        the eligible entity (using amounts other than the amounts 
        provided under the prize) or through guidance and contacts for 
        acquiring professional services), including accounting and 
        legal services; or
            ``(4) a formal structured mentorship or developmental 
        program that assists new small business concerns with building 
        business skills and competencies.
    ``(e) Considerations in Choosing Recipients.--In determining 
whether to award a prize under this section to an eligible entity, the 
Administrator shall take into account--
            ``(1) for eligible entities that have in operation a 
        program to support new small business concerns, the record of 
        the eligible entity in assisting new small business concerns, 
        including, for each of the 3 full years before the date on 
        which the eligible entity applies for a prize under this 
        section--
                    ``(A) the retention rate of new small business 
                concerns in the program of the eligible entity;
                    ``(B) the average period of participation by new 
                small business concerns in the program of the eligible 
                entity;
                    ``(C) the total, average, and median capital raised 
                by new small business concerns participating in the 
                program of the eligible entity; and
                    ``(D) the total, average, and median number of 
                employees of new small business concerns participating 
                in the program of the eligible entity;
            ``(2) for all eligible entities--
                    ``(A) the number of new small business concerns 
                assisted or anticipated to be assisted by the eligible 
                entity;
                    ``(B) the number of new small business concerns 
                applying or anticipated to apply for assistance from 
                the eligible entity;
                    ``(C) whether the program of the eligible entity 
                provides or would provide assistance to individuals in 
                gender, racial, or ethnic groups underrepresented by 
                existing programs to assist new small business 
                concerns; and
                    ``(D) other metrics determined appropriate by the 
                Administrator;
            ``(3) the need in the geographic area to be served by the 
        program to be carried out using the prize for additional 
        assistance for new small business concerns, if the area has 
        sufficient population density, as determined by the 
        Administrator;
            ``(4) the level of experience of the entrepreneurial 
        leadership of the eligible entity; and
            ``(5) the ability of the eligible entity to use and 
        leverage local strengths, including human resources, 
        infrastructure, and educational institutions.
    ``(f) Matching Nonpublic Funding Requirement.--
            ``(1) In general.--An eligible entity receiving a prize 
        under this section shall obtain funds from a private individual 
        or entity (including a for profit or nonprofit entity) that 
        are--
                    ``(A) for the same purposes as a prize may be made 
                under this section;
                    ``(B) used to carry out the program of the eligible 
                entity carried out using the prize under this section; 
                and
                    ``(C) in an amount that is not to be less than 50 
                percent of the amount of the prize under this section.
            ``(2) Form of non-federal share.--Not more than 25 percent 
        of the funds obtained under paragraph (1) may be in the form of 
        in-kind contributions.
    ``(g) Consequences of Failure To Abide by Terms and Conditions of 
Prize or Requirements of This Section.--The Administrator shall notify 
each eligible entity receiving a prize under this section that failure 
to abide by the terms and conditions of the prize or the requirements 
of this section may, in the discretion of the Administrator and in 
addition to any other civil or criminal consequences, result in the 
Administrator ordering the eligible entity to return the prize funds.
    ``(h) Annual Progress Reporting by Recipients of Prize.--Each 
eligible entity receiving a prize under this section shall submit to 
the Administrator an annual report on the progress of the program 
carried out using the amounts received under the prize, including--
            ``(1) the number of new small business concerns 
        participating in the program during each of the previous 3 
        years;
            ``(2) the number of new small business concerns applying to 
        participate in the program during each of the previous 3 years;
            ``(3) the retention rate of new small business concerns in 
        the program;
            ``(4) the average period of participation in the program by 
        new small business concerns;
            ``(5) the total, average, and median capital raised by new 
        small business concerns participating in the program;
            ``(6) the total, average, and median number of employees of 
        new small business concerns participating in the program; and
            ``(7) other metrics determined appropriate by the 
        Administrator.
    ``(i) Report to Congress.--The Administrator shall submit to 
Congress an annual report on the program under this section, which 
shall include an assessment of the effectiveness of the program, 
including an assessment based on the metrics listed in subsection (h).
    ``(j) Coordination With Other Small Business Administration 
Programs.--The Administrator shall take appropriate action to encourage 
eligible entities receiving a prize under this section to use and 
incorporate other programs of the Administration, such as small 
business development centers, small business investment companies, 
loans under section 7(a), and assistance under title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 et seq.).
    ``(k) Listing on Website.--The Administrator shall include a list 
of eligible entities receiving a prize under this section on the 
website of the Administration.
    ``(l) Authorization of Appropriation.--There are authorized to be 
appropriated to carry out this section $5,000,000 for each of the first 
5 fiscal years beginning after the date of the enactment of this 
section.''.