To establish the National Minority Business Enterprise Incubator Program.

Summary: National Minority Business Enterprise Incubator Program Act - Authorizes the National Director of the Department of Commerce's Minority Business Development Agency to make grants to certain organizations (e.g., public charities, business leagues, small business development centers, colleges or universities) to establish and operate minority business enterprise incubator programs.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Minority Business 
Enterprise Incubator Program Act''.

SEC. 2. PURPOSES OF NATIONAL MINORITY BUSINESS ENTERPRISE INCUBATOR 
              PROGRAM.

    The purposes of the National Minority Business Enterprise Incubator 
Program are--
            (1) to promote economic development and the creation of 
        wealth and job opportunity in low-income areas and within areas 
        of economic transition, inclusive of parts of the country with 
        declining manufacturing bases and among minority individuals 
        living in such areas through minority business enterprise 
        incubation centers;
            (2) to develop a minority business enterprise incubation 
        program with the mission of providing focused technical and 
        managerial assistance to aid in the development of minority 
        business enterprises;
            (3) to make grants to economic development organizations 
        and other entities for the purpose of providing business 
        incubation services to minority business enterprises; and
            (4) to revitalize and reuse industrial or commercial sites 
        for entrepreneurship and economic growth.

SEC. 3. NATIONAL MINORITY BUSINESS ENTERPRISE INCUBATOR GRANTS.

    (a) In General.--In accordance with the requirements of this 
section, the National Director of the Minority Business Development 
Agency may make 3-year to 5-year grants to eligible organizations to 
establish and operate minority business enterprise incubator programs.
    (b) Applications.--To be eligible to receive a grant under this 
section, an eligible organization shall submit an application to the 
National Director at such time and in such form and manner as the 
National Director may require. Each such application shall include the 
grantee's plan for establishing and operating a minority business 
enterprise incubator program.
    (c) Selection of Grantees.--In selecting the grantees under this 
section, the National Director shall evaluate and rank applicants in 
accordance with predetermined selection criteria that will be stated in 
terms of relevant importance of such criteria. The relative importance 
of the criteria shall be made publicly available and stated in each 
solicitation for applicants made by the National Director. The criteria 
shall include the following:
            (1) The experience of the applicant in conducting business 
        development.
            (2) The experience of the applicant in technology and 
        manufacturing.
            (3) The extent to which the incubator will assist in the 
        development of low-income, women, or minority business, or the 
        revitalization of rural areas, inner cities, central cities, or 
        depressed manufacturing areas.
            (4) The extent to which the proposed site is in an area of 
        high unemployment and will result in the reuse of a previously 
        used industrial or commercial site.
            (5) The extent to which the applicant has a management team 
        in place with experience in running a business incubator or 
        relevant business development experience.
            (6) The extent to which the applicant's plan will result in 
        the economic development of low-income communities or high-
        unemployment areas.
            (7) The ability of the applicant to successfully establish 
        and operate a minority business enterprise incubator program.
            (8) The ability of the applicant to enter into cooperative 
        agreements with financial institutions to provide a streamlined 
        process for business concerns utilizing the minority business 
        enterprise incubator program to obtain financial assistance.
            (9) The ability of the applicant to provide the services of 
        licensed professionals.
            (10) The extent to which the applicant's plan for 
        establishing and operating a minority business enterprise 
        incubator program will do the following:
                    (A) Enhance minority business enterprise 
                development.
                    (B) Meet the needs and goals of the community in 
                which the incubator is to be located.
                    (C) Serve as a catalyst for further entrepreneurial 
                development.
                    (D) Involve the rehabilitation of a warehouse, 
                factory, or building which has fallen into disrepair.
                    (E) Assist in redeveloping and reinvesting in an 
                economically challenged or disadvantaged area.
                    (F) Target minority and women entrepreneurs.
                    (G) Focus on the development of manufacturing and 
                technology.
                    (H) Retain or create jobs.
                    (I) Include assistance regarding marketing, 
                financial management, human resources development, and 
                access to capital (both debt and equity).
    (d) Grant Requirements.--Each grantee shall use the grant funds to 
establish a minority business enterprise incubator program, which shall 
make the following assistance available (on a shared or unshared basis, 
as the grantee may determine) to businesses participating in such 
program:
            (1) Office space.
            (2) Office equipment, including computers, facsimile 
        machines, photocopiers, access to telecommunications services 
        (including broadband services), and manufacturing equipment.
            (3) Administrative and technical staff.
            (4) Training and technical assistance in the areas of 
        marketing, financial management, human resources, and 
        contracting.
            (5) Assistance in obtaining loans.
            (6) Assistance in locating investors and networking with 
        local business organizations.
            (7) Individualized reviews of marketing, financial, and 
        business plans, which shall occur monthly for such period as 
        the National Director may determine and quarterly thereafter.
            (8) Legal, accounting, and marketing services.
            (9) Mentoring program with established, successful, large 
        businesses to last the duration of the business' stay in the 
        incubator.
    (e) Additional Assistance.--A grantee may use grant funds to 
provide family care services to participating business and any other 
assistance which is approved by the National Director.
    (f) Additional Program Requirements.--
            (1) Participating businesses.--Each grantee shall select 
        the businesses which will participate in the grantee's minority 
        business enterprise incubation program. The grantee shall 
        select businesses which have the potential to be self-
        sustaining. Each grantee shall require participating businesses 
        to participate in the technical and managerial training 
        described in subsection (d)(4), to submit marketing, financial, 
        and business plans and to participate in the review of such 
        plans described in subsection (d)(7).
            (2) Cooperative agreements with financial institutions.--
        Each grantee shall enter into a cooperative agreement with one 
        or more financial institutions to provide a streamlined process 
        by which participating businesses may obtain loans.
            (3) Fees.--Each grantee may charge participating businesses 
        a fee for the assistance provided to such business by the 
        grantee. The amount of such fee shall be determined under a 
        sliding scale based on the financial success of the 
        participating business. The grantee may only charge a nominal 
        fee for the first 2 years of such businesses participation in 
        the incubator.
    (g) Non-Federal Matching Funds.--The National Director shall not 
make available any grant funds under this section until the grantee has 
contributed non-Federal matching funds in an amount equal to 50 percent 
of the amount of such grant funds.
    (h) Eligible Organizations.--For purposes of this section, the term 
``eligible organization'' means any of the following:
            (1) An organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from tax under section 
        501(a) of such Code.
            (2) A business league, chamber of commerce, or board of 
        trade described in section 501(c)(6) of the Internal Revenue 
        Code of 1986 and exempt from tax under section 501(a) of such 
        Code.
            (3) A local development agency that is chartered, 
        established, or otherwise sanctioned by a State or local 
        government.
            (4) A small business development center (within the meaning 
        of section 21 of the Small Business Act) or equivalent minority 
        business enterprise center, as defined by the National 
        Director.
            (5) A college or university.
            (6) A unit of State or local government.
    (i) Federal Coordination.--The National Director, in consultation 
with the Economic Development Administration, the Rural Development 
Agency, the Department of Agriculture, the Department of Housing and 
Urban Development, the Delta Regional Authority, and the Small Business 
Administration, shall--
            (1) undertake efforts to coordinate and enhance Federal 
        programs that relate to minority business enterprise incubation 
        programs; and
            (2) invite State and local governments, lending 
        institutions, and other appropriate public and private 
        organizations to serve as intermediaries in outreach efforts 
        related to minority business enterprise incubation programs.
    (j) Reports.--
            (1) Initial report.--One year after the first grant is made 
        under this section, the National Director shall transmit to the 
        Congress a preliminary report regarding the National Minority 
        Business Enterprise Incubator Program conducted under this 
        section.
            (2) Final report.--Four years after the first grant is made 
        under this section, the National Director shall transmit to the 
        Congress a final report regarding the National Minority 
        Business Enterprise Incubator Program conducted under this 
        section. Such report shall include any recommendations of the 
        National Director regarding ways to improve such program and 
        the recommendation of the National Director as to whether such 
        program should be extended.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2008 and 2009, which amounts shall remain available until 
expended.

SEC. 4. DEFINITION.

    As used in this Act, the term ``National Director'' means the 
National Director of the Minority Business Development Agency.