STARTUP Vets Act of 2015

Summary: Strengthening Technical Assistance, Resources, and Training to Unleash the Potential of Veterans Act of 2015 or the STARTUP Vets Act of 2015 This bill amends the Small Business Act to require the Small Business Administration (SBA) to make two-year renewable grants to create and operate incubators and accelerators that provide technical assistance and training to covered individuals on how to become successful entrepreneurs and form small business concerns. Such program shall be considered an SBA management and technical assistance training program.  Program outreach materials shall be made available at local Department of Veterans Affairs facilities.  "Covered individual" means:   a member of the Armed Forces, without regard to whether he or she participates in the Transition Assistance Program of the Department of Defense;  an individual who is participating in the Transition Assistance Program;  an individual who served on active duty in any branch of the Armed Forces, including the National Guard and Reserves, and was discharged or released under conditions other than dishonorable; and  a spouse or dependent. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Technical Assistance, 
Resources, and Training to Unleash the Potential of Veterans Act of 
2015'' or the ``STARTUP Vets Act of 2015''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) startups face common challenges as they seek to 
        transform their ideas into successful, high-growth businesses;
            (2) incubators and accelerators are new models of growth 
        that drive innovation by connecting entrepreneurial individuals 
        and teams to create viable business ventures and social 
        initiatives;
            (3) incubators and accelerators support promising start-ups 
        through partnerships, mentoring, and resources connecting them 
        with seasoned entrepreneurs;
            (4) the goal of an incubator or an accelerator is to help 
        create and grow young businesses by providing them with 
        necessary financial, technical, and industry support and 
        financial and technical services; and
            (5) veterans and members of the Armed Forces can amplify 
        the skills they have acquired through their service in the 
        military through entrepreneurship.

SEC. 3. INCUBATOR AND ACCELERATOR GRANT PROGRAM.

    Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by 
striking subsection (f) and inserting the following:
    ``(f) Incubator and Accelerator Grant Program.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `accelerator' means an organization 
                that--
                            ``(i) frequently provides, but is not 
                        exclusively designed to provide, seed 
                        investment in exchange for a small amount of 
                        equity;
                            ``(ii) works with a startup for 
                        predetermined amount of time; or
                            ``(iii) offers startups capital and 
                        mentorship to scale businesses;
                    ``(B) the term `covered individual' means--
                            ``(i) a member of the Armed Forces, without 
                        regard to whether the member is participating 
                        in the Transition Assistance Program of the 
                        Department of Defense;
                            ``(ii) an individual who is participating 
                        in the Transition Assistance Program of the 
                        Department of Defense;
                            ``(iii) an individual who--
                                    ``(I) served on active duty in any 
                                branch of the Armed Forces, including 
                                the National Guard and Reserves; and
                                    ``(II) was discharged or released 
                                from such service under conditions 
                                other than dishonorable; and
                            ``(iv) a spouse or dependent of an 
                        individual described in clause (i), (ii), or 
                        (iii);
                    ``(C) the term `eligible grantee' means an 
                incubator or accelerator that--
                            ``(i) has a physical space, and not 
                        necessarily exclusive use of physical space, in 
                        which veterans may come together to work on 
                        business ideas; and
                            ``(ii) has been operational for not less 
                        than 1 year before receiving a grant under the 
                        program;
                    ``(D) the term `incubator' means an organization 
                that is designed to accelerate the growth and success 
                of businesses through a variety of business support 
                resources and services, including physical space, 
                capital, coaching, common services, and networking 
                connections; and
                    ``(E) the term `program' means the grant program 
                established under paragraph (2)(A).
            ``(2) Establishment.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the 
                Administrator shall establish a grant program under 
                which the Administrator shall make grants to eligible 
                grantees to create and operate incubators and 
                accelerators that provide technical assistance and 
                training to covered individuals on how to become 
                successful entrepreneurs and form small business 
                concerns.
                    ``(B) Goals.--The goals of the program are--
                            ``(i) to enable covered individuals to 
                        effectively transfer relevant skills to launch 
                        and accelerate small business concerns owned 
                        and controlled by covered individuals; and
                            ``(ii) to create an avenue for high-
                        performing covered individuals to meet and 
                        collaborate on business ideas.
                    ``(C) Designation as a technical assistance 
                program.--The program shall be considered a management 
                and technical assistance training program of the 
                Administration.
            ``(3) Application.--
                    ``(A) In general.--An eligible grantee desiring to 
                receive a grant under the program shall submit an 
                application to the Administrator at such time, in such 
                manner, and containing such information as the 
                Administrator may require.
                    ``(B) Evaluation.--Before making an award to an 
                eligible grantee under the program, the Administrator 
                or a designee of the Administrator shall conduct a site 
                visit or evaluate a video submission of the eligible 
                grantee.
                    ``(C) Preference.--In awarding grants under the 
                program, the Administrator shall give a preference to 
                an eligible grantee that operates a veterans-focused 
                incubator or accelerator within the eligible grantee as 
                of the date on which the eligible grantee submits an 
                application under subparagraph (A).
            ``(4) Use of funds.--Each eligible grantee that is awarded 
        a grant under the program shall operate and, if necessary, 
        create, within the eligible grantee--
                    ``(A) an incubator or accelerator focused on 
                assisting covered individuals; or
                    ``(B) an incubator or accelerator that assists all 
                types of entrepreneurs, which shall provide targeted 
                activities, curriculum, events, and mentorship tailored 
                to covered individuals.
            ``(5) Duties.--Each eligible grantee awarded a grant under 
        the program shall--
                    ``(A) establish and use a competitive process, if 
                such a process has not been established, for selecting 
                covered individuals to participate in the incubator or 
                accelerator, as applicable;
                    ``(B) create a forum for high-performing covered 
                individuals to meet and collaborate;
                    ``(C) designate a full-time executive director or 
                program manager, if such a director or manager has not 
                been designated, to manage the incubator or 
                accelerator, as applicable;
                    ``(D) provide training and education, including 
                curriculum on entrepreneurship, to meet the needs of 
                covered individuals to enable them to translate skills 
                from their military service to entrepreneurship;
                    ``(E) provide mentoring to covered individuals who 
                are entrepreneurs, which shall consist of experienced 
                and successful entrepreneurs providing advice and 
                guidance to covered individuals who have had similar 
                experiences; and
                    ``(F) connect covered individuals with investors 
                who are looking to support covered individuals as 
                entrepreneurs.
            ``(6) Availability to veterans affairs.--In consultation 
        with the Secretary of Veterans Affairs, the Associate 
        Administrator shall make available outreach materials regarding 
        the program for distribution and display at local facilities of 
        the Department of Veterans Affairs.
            ``(7) Duration of grant.--A grant awarded under the 
        program--
                    ``(A) shall be for a period of not more than 2 
                years; and
                    ``(B) may be renewed for additional 2-year periods 
                in accordance with paragraph (8).
            ``(8) Renewal of grant.--In renewing a grant under the 
        program, the Administrator--
                    ``(A) shall consider the results of the most recent 
                annual evaluation of the eligible grantee under 
                paragraph (9); and
                    ``(B) may withhold a grant if the Administrator 
                determines that the eligible grantee failed to provide 
                the Administrator with information necessary to 
                complete an annual evaluation of the eligible grantee 
                under paragraph (9).
            ``(9) Annual evaluations.--Not later than 1 year after the 
        Administrator awards a grant to an eligible grantee under the 
        program, and every year thereafter in which the eligible 
        grantee is awarded a grant under the program, the Administrator 
        shall conduct an evaluation of and issue a report on the 
        eligible grantee, which shall include--
                    ``(A) the total number of covered individuals 
                served by the eligible grantee; and
                    ``(B) the total number of startups assisted by the 
                eligible grantee.
            ``(10) Annual report.--
                    ``(A) In general.--Not later than 1 year after the 
                date on which the Administrator establishes the 
                program, and every year thereafter, the Associate 
                Administrator shall submit to the Committee on Small 
                Business and Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives a report on the performance and 
                effectiveness of the program, which shall include--
                            ``(i) the total number of covered 
                        individuals served by each eligible grantee 
                        awarded a grant under the program;
                            ``(ii) to the extent possible--
                                    ``(I) the demographics of covered 
                                individuals assisted under the program, 
                                to include gender, age, race, 
                                relationship to military, Military 
                                Occupational Code, and years of service 
                                of covered individuals;
                                    ``(II) the number of startups 
                                launched or expanded with assistance 
                                provided under the program; and
                                    ``(III) the number of jobs created 
                                with assistance provided under the 
                                program;
                            ``(iii) results of participant satisfaction 
                        surveys, including a summary of any comments 
                        from covered individuals assisted under the 
                        program; and
                            ``(iv) an evaluation of the effectiveness 
                        of the program in each region of the 
                        Administration during the most recent fiscal 
                        year.
            ``(11) Funding.--For each of fiscal years 2016 through 
        2020, the Administration shall use not more than $1,000,000 
        from amounts made available to the Office of Veterans Business 
        Development to carry out the program.''.