To amend the Small Business Act to expand and improve the assistance provided by Small Business Development Centers to Indian tribe members, Native Alaskans, and Native Hawaiians.

Summary: Amends the Small Business Act to authorize a Small Business Development Center in an eligible state to apply for an additional Small Business Administration grant to be used solely to provide services to assist with outreach, development, and enhancement on Indian lands of small business startups and expansions owned by Indian tribe members, Alaskan Natives, and Native Hawaiians. Defines an eligible state as one in which at least one percent of its population is comprised of such tribe members and Natives. Limits each grant to $300,000 in a fiscal year.

Requires a Small Business Development Center receiving such a grant to request the advice of tribal organizations on how best to provide assistance and where to locate satellite centers to provide it.

SECTION 1. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Approximately 60 percent of Indian tribe members and 
        Alaska Natives live on or adjacent to Indian lands, which 
        suffer from an average unemployment rate of 45 percent.
            (2) Indian tribe members and Alaska Natives own more than 
        197,000 businesses and generate more than $34,000,000,000 in 
        revenues. The service industry accounted for 17 percent of 
        these businesses (of which 40 percent were engaged in business 
        and personal services) and 15.1 percent of their total 
        receipts. The next largest was the construction industry (13.9 
        percent and 15.7 percent, respectively). The third largest was 
        the retail trade industry (7.5 percent and 13.4 percent, 
        respectively).
            (3) The number of businesses owned by Indian tribe members 
        and Alaska Natives grew by 84 percent from 1992 to 1997, and 
        their gross receipts grew by 179 percent in that period. This 
        is compared to all businesses which grew by 7 percent, and 
        their total gross receipts grew by 40 percent, in that period.
            (4) The Small Business Development Center program is cost 
        effective. Clients receiving long-term counseling under the 
        program in 1998 generated additional tax revenues of 
        $468,000,000, roughly 6 times the cost of the program to the 
        Federal Government.
            (5) Using the existing infrastructure of the Small Business 
        Development Center program, small businesses owned by Indian 
        tribe members, Alaska Natives, and Native Hawaiians receiving 
        services under the program will have a higher survival rate 
        than the average small business not receiving such services.
            (6) Business counseling and technical assistance is 
        critical on Indian lands where similar services are scarce and 
        expensive.
            (7) Increased assistance through counseling under the Small 
        Business Development Center program has been shown to reduce 
        the default rate associated with lending programs of the Small 
        Business Administration.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To stimulate economies on Indian lands.
            (2) To foster economic development on Indian lands.
            (3) To assist in the creation of new small businesses owned 
        by Indian tribe members, Alaska Natives, and Native Hawaiians 
        and expand existing ones.
            (4) To provide management, technical, and research 
        assistance to small businesses owned by Indian tribe members, 
        Alaska Natives, and Native Hawaiians.
            (5) To seek the advice of local Tribal Councils on where 
        small business development assistance is most needed.
            (6) To ensure that Indian tribe members, Alaska Natives, 
        and Native Hawaiians have full access to existing business 
        counseling and technical assistance available through the Small 
        Business Development Center program.

SEC. 2. SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE TO INDIAN TRIBE 
              MEMBERS, ALASKA NATIVES, AND NATIVE HAWAIIANS.

    (a) In General.--Section 21(a) of the Small Business Act (15 U.S.C. 
648(a)) is amended by adding at the end the following:
            ``(8) Additional grant to assist indian tribe members, 
        alaska natives, and native hawaiians.--
                    ``(A) In general.--Any applicant in an eligible 
                State that is funded by the Administration as a Small 
                Business Development Center may apply for an additional 
                grant to be used solely to provide services described 
                in subsection (c)(3) to assist with outreach, 
                development, and enhancement on Indian lands of small 
                business startups and expansions owned by Indian tribe 
                members, Alaska Natives, and Native Hawaiians.
                    ``(B) Eligible states.--For purposes of 
                subparagraph (A), an eligible State is a State that has 
                a combined population of Indian tribe members, Alaska 
                Natives, and Native Hawaiians that comprises at least 1 
                percent of the State's total population, as shown by 
                the latest available census.
                    ``(C) Grant applications.--An applicant for a grant 
                under subparagraph (A) shall submit to the 
                Administration an application that is in such form as 
                the Administration may require. The application shall 
                include information regarding the applicant's goals and 
                objectives for the services to be provided using the 
                grant, including--
                            ``(i) the capability of the applicant to 
                        provide training and services to a 
                        representative number of Indian tribe members, 
                        Alaska Natives, and Native Hawaiians;
                            ``(ii) the location of the Small Business 
                        Development Center site proposed by the 
                        applicant;
                            ``(iii) the required amount of grant 
                        funding needed by the applicant to implement 
                        the program; and
                            ``(iv) the extent to which the applicant 
                        has consulted with local Tribal Councils.
                    ``(D) Applicability of grant requirements.--An 
                applicant for a grant under subparagraph (A) shall 
                comply with all of the requirements of this section, 
                except that the matching funds requirements under 
                paragraph (4)(A) shall not apply.
                    ``(E) Maximum amount of grants.--No applicant may 
                receive more than $300,000 in grants under this 
                paragraph for one fiscal year.
                    ``(F) Regulations.--After providing notice and an 
                opportunity for comment and after consulting with the 
                Association recognized by the Administration pursuant 
                to paragraph (3)(A) (but not later than 180 days after 
                the date of enactment of this paragraph), the 
                Administration shall issue final regulations to carry 
                out this paragraph, including regulations that 
                establish--
                            ``(i) standards relating to educational, 
                        technical, and support services to be provided 
                        by Small Business Development Centers receiving 
                        assistance under this paragraph; and
                            ``(ii) standards relating to any work plan 
                        that the Administration may require a Small 
                        Business Development Center receiving 
                        assistance under this paragraph to develop.
                    ``(G) Definitions.--In this section, the following 
                definitions apply:
                            ``(i) Indian lands.--The term `Indian 
                        lands' has the meaning given the term `Indian 
                        country' in section 1151 of title 18, United 
                        States Code, the meaning given the term `Indian 
                        reservation' in section 151.2 of title 25, Code 
                        of Federal Regulations (as in effect on the 
                        date of enactment of this paragraph), and the 
                        meaning given the term `reservation' in section 
                        4 of the Indian Child Welfare Act of 1978 (25 
                        U.S.C. 1903).
                            ``(ii) Indian tribe.--The term `Indian 
                        tribe' means any band, nation, or organized 
                        group or community of Indians located in the 
                        contiguous United States, and the Metlakatla 
                        Indian Community, whose members are recognized 
                        as eligible for the services provided to 
                        Indians by the Secretary of the Interior 
                        because of their status as Indians.
                            ``(iii) Indian tribe member.--The term 
                        `Indian tribe member' means a member of an 
                        Indian tribe (other than a Alaska Native).
                            ``(iv) Alaska native.--The term `Alaska 
                        Native' has the meaning given the term `Native' 
                        in section 3(b) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1602(b)).
                            ``(v) Native hawaiian.--The term `Native 
                        Hawaiian' means any individual who is--
                                    ``(I) a citizen of the United 
                                States; and
                                    ``(II) a descendant of the 
                                aboriginal people, who prior to 1778, 
                                occupied and exercised sovereignty in 
                                the area that now constitutes the State 
                                of Hawaii.
                            ``(vi) Tribal organization.--The term 
                        `tribal organization' has the meaning given 
                        that term in section 4(l) of the Indian Self-
                        Determination and Education Assistance Act (25 
                        U.S.C. 450b(l)).
                    ``(H) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $7,000,000 for each of fiscal years 2006 
                through 2008.
                    ``(I) Funding limitations.--
                            ``(i) Nonapplicability of certain 
                        limitations.--Funding under this paragraph 
                        shall be in addition to the dollar program 
                        limitations specified in paragraph (4).
                            ``(ii) Limitation on use of funds.--The 
                        Administration may carry out this paragraph 
                        only with amounts appropriated in advance 
                        specifically to carry out this paragraph.''.

SEC. 3. STATE CONSULTATION WITH TRIBAL ORGANIZATIONS.

    Section 21(c) of the Small Business Act (15 U.S.C. 648(c)) is 
amended by adding at the end the following:
            ``(9) Advice of local tribal organizations.--A Small 
        Business Development Center receiving a grant under this 
        section shall request the advice of tribal organization on how 
        best to provide assistance to Indian tribe members, Alaska 
        Natives, and Native Hawaiians and where to locate satellite 
        centers to provide such assistance.''.