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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9880 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9880

To amend the Small Business Act to establish the Entrepreneurship Corps 
           National Service Program, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2024

 Mr. Phillips introduced the following bill; which was referred to the 
   Committee on Small Business, and in addition to the Committees on 
  Education and the Workforce, and Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Small Business Act to establish the Entrepreneurship Corps 
           National Service Program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Entrepreneurship Corps for National 
Service Act''.

SEC. 2. ENTREPRENEURSHIP CORPS NATIONAL SERVICE PROGRAM.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 49 as section 50; and
            (2) by inserting after section 48 the following new 
        section:

``SEC. 49. ENTREPRENEURSHIP CORPS NATIONAL SERVICE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Associate administrator.--The term `Associate 
        Administrator' means the Head of the Office of Investment and 
        Innovation of the Administration.
            ``(2) Census tract.--The term `census tract' means a census 
        tract delineated by the United States Bureau of the Census in 
        the most recent decennial census.
            ``(3) Distressed area.--The term `distressed area' means a 
        census tract experiencing economic distress, as determined by 
        the Associate Administrator based on the following economic 
        factors for such census tract:
                    ``(A) Poverty rate.
                    ``(B) Unemployment rate.
                    ``(C) Median income.
                    ``(D) The number of businesses, including the rate 
                of new business formation.
                    ``(E) The number of individuals belonging to an 
                Indian tribe (as defined in section 8(a)(13)), 
                including the percentage of the total population 
                comprised of such individuals.
                    ``(F) Such other economic factors as determined 
                appropriate by the Associate Administrator.
            ``(4) Fellow.--The term `fellow' means an individual 
        participating in the program.
            ``(5) Participating business.--The term `participating 
        business' means a small business concern to which a fellow is 
        assigned under the program.
            ``(6) Program.--The term `program' means the program 
        established under subsection (b).
    ``(b) Establishment.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this Act, the Administrator shall establish 
        in the Office of Investment and Innovation of the 
        Administration a program, to be known as the `Entrepreneurship 
        Corps National Service Program', to support economic activity 
        and job creation in distressed areas of the United States by 
        providing to small business concerns located in distressed 
        areas individuals with the skills and training needed by such 
        small business concerns.
            ``(2) Program administration.--The Associate Administrator 
        shall administer the program.
    ``(c) Program Fellows.--
            ``(1) In general.--To be a fellow, an individual must--
                    ``(A) be at least 21 years of age;
                    ``(B) have obtained an associates, baccalaureate, 
                or higher degree; and
                    ``(C) enter into a written agreement with the 
                Associate Administrator under paragraph (2).
            ``(2) Service obligation agreement.--An individual may 
        become a fellow only if the individual enters into a written 
        agreement with the Associate Administrator that requires the 
        individual to serve as a fellow for a period of two years and 
        containing such other terms as determined appropriate by the 
        Associate Administrator.
            ``(3) Application.--An individual seeking to be a fellow 
        shall submit to the Associate Administrator an application at 
        such time, in such manner, and containing such information as 
        the Associate Administrator determines appropriate.
            ``(4) Fellow selection.--
                    ``(A) In general.--The Associate Administrator 
                shall select the fellows in accordance with this 
                paragraph.
                    ``(B) Selection criteria.--When selecting fellows 
                the Associate Administrator shall consider the 
                following:
                            ``(i) The academic and professional 
                        background and accomplishments of the 
                        individual, including demonstrated expertise in 
                        accounting, finance, economics, statistics, 
                        marketing, computer science, mathematics, or 
                        other subject areas related to business.
                            ``(ii) Recommendations from teachers, 
                        coaches, mentors, and others in a position to 
                        evaluate the skills, expertise, background, 
                        character, and fitness for service in the 
                        program of the individual.
                            ``(iii) The reasons provided by the 
                        individual for participating in the program.
                            ``(iv) Such other criteria as the Associate 
                        Administrator determines appropriate based on 
                        the nature, purpose, and objectives of the 
                        program.
                    ``(C) Fellow class size.--The Associate 
                Administrator shall determine the number of fellows 
                selected each year.
    ``(d) Participating Businesses.--
            ``(1) In general.--To be eligible to be assigned a fellow 
        under the program, a small business concern must--
                    ``(A) have an employer identification number 
                (assigned pursuant to section 6109 of the Internal 
                Revenue Code of 1986);
                    ``(B) have been established not more than five 
                years prior the date on which such small business 
                concern submits the application required under 
                paragraph (2);
                    ``(C) have its headquarters or main office, and the 
                locations at which a majority of employees are 
                employed, located in distressed areas; and
                    ``(D) in the 12-month period immediately preceding 
                the date on which such small business concern submits 
                the application required by paragraph (2), have gross 
                sales of not less than $200,000.
            ``(2) Application.--A small business seeking to be assigned 
        a fellow under the program shall submit to the Associate 
        Administrator an application at such time, in such manner, and 
        containing such information as the Associate Administrator 
        determines appropriate.
            ``(3) Selection of participating businesses.--
                    ``(A) In general.--The Associate Administrator 
                shall select small business concerns to which a fellow 
                will be assigned under the program in accordance with 
                subparagraph (B).
                    ``(B) Participating business selection.--When 
                selecting which small business concerns shall be 
                assigned a fellow under the program, the Associate 
                Administrator shall consider the following:
                            ``(i) The growth or potential for success 
                        of the small business concern, as demonstrated 
                        by the financial statements of the small 
                        business concern.
                            ``(ii) The demonstrated ability of the 
                        small business concern to access capital or 
                        attract equity investment in such concern.
                            ``(iii) The business plan of the small 
                        business concern that includes a strategy for 
                        long-term success, if any.
                            ``(iv) The ability of the small business 
                        concern to contribute to improving economic 
                        conditions in the distressed area.
                            ``(v) The demonstrated need of the small 
                        business concern for a fellow under the 
                        program.
                            ``(vi) Any other criteria that the 
                        Associate Administrator determines appropriate.
    ``(e) Assignment of Fellows.--
            ``(1) In general.--The Associate Administrator shall assign 
        fellows to small business concerns under the program in 
        accordance with this subsection.
            ``(2) Considerations.--When assigning fellows to small 
        business concerns business under the program, the Associate 
        Administrator shall consider--
                    ``(A) the needs of the small business concern;
                    ``(B) the expertise, experience, skills, 
                background, and interests of the fellow; and
                    ``(C) the preferences of the fellow regarding the 
                location of the small business concern to which such 
                fellow is assigned under the program.
            ``(3) Duration.--The assignment of a fellow to a small 
        business concern under the program shall be for a period of two 
        years.
            ``(4) Assignment limit.--The Associate Administrator may 
        not assign a fellow under the program to any small business 
        concern to which, as of the date on which such assignment will 
        commence, any other fellow is assigned.
            ``(5) Resources.--
                    ``(A) In general.--A participating business shall 
                provide to the fellow assigned to the participating 
                business under the program the resources required for 
                the fellow to carry out the duties such participating 
                business assigns to such fellow.
                    ``(B) Reimbursement.--The Associate Administrator 
                shall reimburse a participating business for the 
                reasonable costs incurred by such participating 
                business for the resources provided by the business 
                under subparagraph (A).
            ``(6) Reassignment.--If a fellow assigned to a 
        participating business under the program is unable to continue 
        such assignment, or for such other reasons as determined 
        appropriate by the Associate Administrator, the Associate 
        Administrator may reassign such fellow to another small 
        business concern under the program for the remainder of the 
        period of the assignment to the participating business.
    ``(f) Benefits.--
            ``(1) Compensation.--
                    ``(A) In general.--The Associate Administrator 
                shall pay to fellows a rate of pay determined 
                appropriate by the Associate Administrator.
                    ``(B) Criteria.--When determining the rate of pay 
                for fellows under subparagraph (A), the Associate 
                Administrator shall ensure that the rate of pay--
                            ``(i) is comparable with the rate of pay of 
                        employees of the Federal Government with 
                        similar educational attainment, experience, and 
                        training; and
                            ``(ii) is not less than the greater of the 
                        applicable State minimum wage or the Federal 
                        minimum hourly rate under the Fair Labor 
                        Standards Act of 1938 (29 U.S.C. 201 et seq.).
            ``(2) Education grants.--
                    ``(A) In general.--An individual who completes a 
                period of service as a fellow under program in 
                accordance with the agreement such individual entered 
                into under subsection (c)(2) and submits the 
                application required under subparagraph (B) shall be 
                eligible to receive a grant in accordance with this 
                paragraph.
                    ``(B) Application.--An individual seeking a grant 
                under this paragraph shall submit to the Associate 
                Administrator an application at such time, in such 
                manner, and containing such information as the 
                Associate Administrator determines appropriate.
                    ``(C) Grant amount.--The aggregate amount of a 
                grant made under this paragraph to an individual 
                described in subparagraph (B) may not exceed the 
                maximum amount of a grant under section 401 of the 
                Higher Education Act of 1965 (20 U.S.C. 1070a) for the 
                award year in which such individual becomes eligible 
                for a grant under this paragraph.
                    ``(D) Disbursement.--
                            ``(i) Initial disbursement.--Upon an 
                        individual described in subparagraph (A) 
                        becoming eligible to receive a grant under this 
                        paragraph, the Associate Administrator shall 
                        disburse amounts under such grant in an amount 
                        equal to the lesser of--
                                    ``(I) the maximum amount allowed 
                                under subparagraph (D); or
                                    ``(II) the amount equal to the sum 
                                of the aggregate amount of the 
                                outstanding loans of such individual 
                                described in subclauses (I) through 
                                (III) of subparagraph (E)(i) and the 
                                amount of the expenses described in 
                                subclause (IV) of such subparagraph 
                                owed by such individual as of the date 
                                on which such individual becomes 
                                eligible for such grant.
                            ``(ii) Rolling disbursement.--During the 
                        seven-year period beginning on the date on 
                        which the recipient of such grant becomes 
                        eligible to receive such grant, the Associate 
                        Administrator shall disburse to such recipient 
                        additional amounts under such grant equal to 
                        the amount of loans and expenses described in 
                        subparagraph (E) that such recipient incurs on 
                        or after such date, as such recipient incurs 
                        such loans and expenses, to the extent that the 
                        aggregate of such additional amounts and the 
                        amount disbursed under clause (i) for such 
                        grant does not exceed the maximum amount 
                        allowed for such grant under subparagraph (C).
                    ``(E) Uses.--
                            ``(i) In general.--The recipient of a grant 
                        awarded under this paragraph may use amounts 
                        received under such grant only to pay the 
                        following:
                                    ``(I) Qualified Federal student 
                                loans made to such recipient.
                                    ``(II) Loans made to such 
                                recipient--
                                            ``(aa) under subpart II of 
                                        part A of title VII of the 
                                        Public Health Service Act; or
                                            ``(bb) under part E of 
                                        title VIII of that Act.
                                    ``(III) Loans made to such 
                                recipient--
                                            ``(aa) by a State to pay 
                                        postsecondary educational 
                                        expenses of the recipient; or
                                            ``(bb) by a public 
                                        institution of higher education 
                                        (as defined in section 101 of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1001)) to pay a 
                                        borrower's costs of attendance 
                                        at such institution.
                                    ``(IV) Expenses incurred by such 
                                recipient for a program of education 
                                leading to an advanced degree to the 
                                extent that such expenses are--
                                            ``(aa) expenses for which 
                                        amounts payable to an 
                                        individual under section 
                                        3313(c)(1)(B)(iv) of title 38, 
                                        United States Code, may be 
                                        used; and
                                            ``(bb) owed or incurred on 
                                        or after the date on which such 
                                        recipient becomes eligible for 
                                        such grant.
                            ``(ii) Qualified federal student loan 
                        defined.--In this subparagraph, the term 
                        `qualified Federal student loan' means a loan 
                        made under Part D of title IV of the Higher 
                        Education Act of 1965 (1087a et seq.) except 
                        such term does not include--
                                    ``(I) a Federal Direct PLUS Loan 
                                made to the parents of a dependent 
                                student; or
                                    ``(II) a Federal Direct 
                                Consolidation Loan made under section 
                                455(g) of such Act to the extent that 
                                such loan was used to repay a Federal 
                                Direct PLUS Loan made to the parents of 
                                a dependent student.
                    ``(F) Single award.--An individual may receive only 
                a single grant under this paragraph.
                    ``(G) Outreach.--The Associate Administrator 
                shall--
                            ``(i) conduct outreach to institutions of 
                        higher education (as defined under section 
                        101(a) of the Higher Education Act of 1965 (20 
                        U.S.C. 1001(a))) to provide information to 
                        students at such institutions about the 
                        benefits of participating as a fellow in the 
                        program; and
                            ``(ii) seek to coordinate with institutions 
                        of higher education and businesses to develop 
                        academic and professional opportunities for 
                        former fellows, including opportunities for 
                        employment and to obtain advanced degrees.
            ``(3) Noncompetitive appointment eligibility.--During the 
        one-year period beginning on the date on which an individual 
        completes a period service as a fellow under the program in 
        accordance with the agreement such individual entered into 
        under subsection (c)(2), the head of a Federal agency may, 
        without regard to the provisions of subchapter I of chapter 33 
        of title 5, United States Code, other than section 3303 and 
        3328 of such title, appoint such individual to a vacant 
        position in the competitive service in such agency for which 
        such individual is qualified.
    ``(g) Status.--
            ``(1) In general.--Except as provided by this subsection--
                    ``(A) a fellow is not an employee of--
                            ``(i) any participating business to which 
                        such fellow is assigned under the program for 
                        the purpose of any law, including the Internal 
                        Review Code of 1986; or
                            ``(ii) the Federal Government; and
                    ``(B) selection for participation in the program 
                does not constitute an appointment as an officer or 
                employee of the Federal Government for the purpose of 
                any law.
            ``(2) Exceptions.--A fellow is deemed to be an employee 
        of--
                    ``(A) the Federal Government for purposes of--
                            ``(i) chapter 81 of title 5, United States 
                        Code; and
                            ``(ii) chapter 171 of title 28, United 
                        States Code, and any other Federal tort 
                        liability statute; and
                    ``(B) the Administration for the purposes of 
                chapters 83 and 84 of title 5, United States Code.
            ``(3) Health care.--A fellow is deemed to be a full-time 
        employee of the Administration for the purposes of chapter 89 
        of title 5, United States Code, except that a fellow or former 
        fellow may not make the election under section 8905a(a) of such 
        title with respect to coverage under such chapter obtained 
        pursuant this paragraph.
            ``(4) Employment taxes.--For purposes of subtitle C of the 
        Internal Revenue Code of 1986, the Small Business 
        Administration shall be treated as the employer of each fellow 
        with respect to the program.
    ``(h) Report to Congress.--Not later than one year after the 
establishment of the program, and annually 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 program, including--
            ``(1) the effects of fellows on the participating 
        businesses to which such fellows have been assigned under the 
        program;
            ``(2) the economic effects of the program on distressed 
        communities in which participating businesses are located;
            ``(3) the overall performance of fellows under the program;
            ``(4) the overall performance of participating businesses; 
        and
            ``(5) recommendations to modify the program to more 
        effectively support economic activity and job creation in 
        distressed areas of the United States.''.
    (b) Student Loan Forgiveness Credit.--Section 455(m)(3)(B) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)) is amended--
            (1) in clause (i), by striking ``; or'' and inserting a 
        semicolon;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) serving as a fellow in the 
                        Entrepreneurship Corps National Service Program 
                        established under section 49 of the Small 
                        Business Act.''.
    (c) Exclusion From Adjusted Gross Income.--
            (1) In general.--Part III of subchapter B of the Internal 
        Revenue Code of 1986 is amended by inserting after section 139I 
        the following new section:

``SEC. 139J. SMALL BUSINESS FELLOW.

    ``In the case of a small business concern to which a fellow is 
assigned under the Entrepreneurship Corps National Service Program 
established under section 49 of the Small Business Act, gross income 
does not include the value of any labor performed by such fellow.''.
            (2) Clerical amendment.--The table of sections for part III 
        of subchapter B of such Code is amended by inserting after the 
        item relating to section 139I the following new item:

``Sec. 139J. Small business fellow.''.
            (3) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this subsection.
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