I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Entrepreneurship 

5 Corps for National Service Act’’. 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•HR 9880 IH

1 SEC. 2. ENTREPRENEURSHIP CORPS NATIONAL SERVICE 

2 PROGRAM. 

3 (a) IN GENERAL.—The Small Business Act (15 

4 U.S.C. 631 et seq.) is amended— 

5 (1) by redesignating section 49 as section 50; 

6 and 

7 (2) by inserting after section 48 the following 

8 new section: 

9 ‘‘SEC. 49. ENTREPRENEURSHIP CORPS NATIONAL SERVICE 

10 PROGRAM. 

11 ‘‘(a) DEFINITIONS.—In this section: 

12 ‘‘(1) ASSOCIATE ADMINISTRATOR.—The term 

13 ‘Associate Administrator’ means the Head of the Of14 fice of Investment and Innovation of the Administra15 tion. 

16 ‘‘(2) CENSUS TRACT.—The term ‘census tract’ 

17 means a census tract delineated by the United 

18 States Bureau of the Census in the most recent de19 cennial census. 

20 ‘‘(3) DISTRESSED AREA.—The term ‘distressed 

21 area’ means a census tract experiencing economic 

22 distress, as determined by the Associate Adminis23 trator based on the following economic factors for 

24 such census tract: 

25 ‘‘(A) Poverty rate. 

26 ‘‘(B) Unemployment rate. 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•HR 9880 IH

1 ‘‘(C) Median income. 

2 ‘‘(D) The number of businesses, including 

3 the rate of new business formation. 

4 ‘‘(E) The number of individuals belonging 

5 to an Indian tribe (as defined in section 

6 8(a)(13)), including the percentage of the total 

7 population comprised of such individuals. 

8 ‘‘(F) Such other economic factors as deter9 mined appropriate by the Associate Adminis10 trator. 

11 ‘‘(4) FELLOW.—The term ‘fellow’ means an in12 dividual participating in the program. 

13 ‘‘(5) PARTICIPATING BUSINESS.—The term 

14 ‘participating business’ means a small business con15 cern to which a fellow is assigned under the pro16 gram. 

17 ‘‘(6) PROGRAM.—The term ‘program’ means 

18 the program established under subsection (b). 

19 ‘‘(b) ESTABLISHMENT.— 

20 ‘‘(1) IN GENERAL.—Not later than 180 days 

21 after the date of the enactment of this Act, the Ad22 ministrator shall establish in the Office of Invest23 ment and Innovation of the Administration a pro24 gram, to be known as the ‘Entrepreneurship Corps 

25 National Service Program’, to support economic acVerDate Sep 11 2014 19:07 Oct 17, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H9880.IH H9880

ssavage on LAPJG3WLY3PROD with BILLS
4 

•HR 9880 IH

1 tivity and job creation in distressed areas of the 

2 United States by providing to small business con3 cerns located in distressed areas individuals with the 

4 skills and training needed by such small business 

5 concerns. 

6 ‘‘(2) PROGRAM ADMINISTRATION.—The Asso7 ciate Administrator shall administer the program. 

8 ‘‘(c) PROGRAM FELLOWS.— 

9 ‘‘(1) IN GENERAL.—To be a fellow, an indi10 vidual must— 

11 ‘‘(A) be at least 21 years of age; 

12 ‘‘(B) have obtained an associates, bacca13 laureate, or higher degree; and 

14 ‘‘(C) enter into a written agreement with 

15 the Associate Administrator under paragraph 

16 (2). 

17 ‘‘(2) SERVICE OBLIGATION AGREEMENT.—An 

18 individual may become a fellow only if the individual 

19 enters into a written agreement with the Associate 

20 Administrator that requires the individual to serve 

21 as a fellow for a period of two years and containing 

22 such other terms as determined appropriate by the 

23 Associate Administrator. 

24 ‘‘(3) APPLICATION.—An individual seeking to 

25 be a fellow shall submit to the Associate AdminisVerDate Sep 11 2014 19:07 Oct 17, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H9880.IH H9880

ssavage on LAPJG3WLY3PROD with BILLS
5 

•HR 9880 IH

1 trator an application at such time, in such manner, 

2 and containing such information as the Associate 

3 Administrator determines appropriate. 

4 ‘‘(4) FELLOW SELECTION.— 

5 ‘‘(A) IN GENERAL.—The Associate Admin6 istrator shall select the fellows in accordance 

7 with this paragraph. 

8 ‘‘(B) SELECTION CRITERIA.—When select9 ing fellows the Associate Administrator shall 

10 consider the following: 

11 ‘‘(i) The academic and professional 

12 background and accomplishments of the 

13 individual, including demonstrated exper14 tise in accounting, finance, economics, sta15 tistics, marketing, computer science, math16 ematics, or other subject areas related to 

17 business. 

18 ‘‘(ii) Recommendations from teachers, 

19 coaches, mentors, and others in a position 

20 to evaluate the skills, expertise, back21 ground, character, and fitness for service 

22 in the program of the individual. 

23 ‘‘(iii) The reasons provided by the in24 dividual for participating in the program. 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•HR 9880 IH

1 ‘‘(iv) Such other criteria as the Asso2 ciate Administrator determines appropriate 

3 based on the nature, purpose, and objec4 tives of the program. 

5 ‘‘(C) FELLOW CLASS SIZE.—The Associate 

6 Administrator shall determine the number of 

7 fellows selected each year. 

8 ‘‘(d) PARTICIPATING BUSINESSES.— 

9 ‘‘(1) IN GENERAL.—To be eligible to be as10 signed a fellow under the program, a small business 

11 concern must— 

12 ‘‘(A) have an employer identification num13 ber (assigned pursuant to section 6109 of the 

14 Internal Revenue Code of 1986); 

15 ‘‘(B) have been established not more than 

16 five years prior the date on which such small 

17 business concern submits the application re18 quired under paragraph (2); 

19 ‘‘(C) have its headquarters or main office, 

20 and the locations at which a majority of em21 ployees are employed, located in distressed 

22 areas; and 

23 ‘‘(D) in the 12-month period immediately 

24 preceding the date on which such small busi25 ness concern submits the application required 


ssavage on LAPJG3WLY3PROD with BILLS
7 

•HR 9880 IH

1 by paragraph (2), have gross sales of not less 

2 than $200,000. 

3 ‘‘(2) APPLICATION.—A small business seeking 

4 to be assigned a fellow under the program shall sub5 mit to the Associate Administrator an application at 

6 such time, in such manner, and containing such in7 formation as the Associate Administrator determines 

8 appropriate. 

9 ‘‘(3) SELECTION OF PARTICIPATING BUSI10 NESSES.— 

11 ‘‘(A) IN GENERAL.—The Associate Admin12 istrator shall select small business concerns to 

13 which a fellow will be assigned under the pro14 gram in accordance with subparagraph (B). 

15 ‘‘(B) PARTICIPATING BUSINESS SELEC16 TION.—When selecting which small business 

17 concerns shall be assigned a fellow under the 

18 program, the Associate Administrator shall con19 sider the following: 

20 ‘‘(i) The growth or potential for suc21 cess of the small business concern, as dem22 onstrated by the financial statements of 

23 the small business concern. 


ssavage on LAPJG3WLY3PROD with BILLS
8 

•HR 9880 IH

1 ‘‘(ii) The demonstrated ability of the 

2 small business concern to access capital or 

3 attract equity investment in such concern. 

4 ‘‘(iii) The business plan of the small 

5 business concern that includes a strategy 

6 for long-term success, if any. 

7 ‘‘(iv) The ability of the small business 

8 concern to contribute to improving eco9 nomic conditions in the distressed area. 

10 ‘‘(v) The demonstrated need of the 

11 small business concern for a fellow under 

12 the program. 

13 ‘‘(vi) Any other criteria that the Asso14 ciate Administrator determines appro15 priate. 

16 ‘‘(e) ASSIGNMENT OF FELLOWS.— 

17 ‘‘(1) IN GENERAL.—The Associate Adminis18 trator shall assign fellows to small business concerns 

19 under the program in accordance with this sub20 section. 

21 ‘‘(2) CONSIDERATIONS.—When assigning fel22 lows to small business concerns business under the 

23 program, the Associate Administrator shall con24 sider— 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•HR 9880 IH

1 ‘‘(A) the needs of the small business con2 cern; 

3 ‘‘(B) the expertise, experience, skills, back4 ground, and interests of the fellow; and 

5 ‘‘(C) the preferences of the fellow regard6 ing the location of the small business concern to 

7 which such fellow is assigned under the pro8 gram. 

9 ‘‘(3) DURATION.—The assignment of a fellow 

10 to a small business concern under the program shall 

11 be for a period of two years. 

12 ‘‘(4) ASSIGNMENT LIMIT.—The Associate Ad13 ministrator may not assign a fellow under the pro14 gram to any small business concern to which, as of 

15 the date on which such assignment will commence, 

16 any other fellow is assigned. 

17 ‘‘(5) RESOURCES.— 

18 ‘‘(A) IN GENERAL.—A participating busi19 ness shall provide to the fellow assigned to the 

20 participating business under the program the 

21 resources required for the fellow to carry out 

22 the duties such participating business assigns to 

23 such fellow. 

24 ‘‘(B) REIMBURSEMENT.—The Associate 

25 Administrator shall reimburse a participating 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•HR 9880 IH

1 business for the reasonable costs incurred by 

2 such participating business for the resources 

3 provided by the business under subparagraph 

4 (A). 

5 ‘‘(6) REASSIGNMENT.—If a fellow assigned to a 

6 participating business under the program is unable 

7 to continue such assignment, or for such other rea8 sons as determined appropriate by the Associate Ad9 ministrator, the Associate Administrator may reas10 sign such fellow to another small business concern 

11 under the program for the remainder of the period 

12 of the assignment to the participating business. 

13 ‘‘(f) BENEFITS.— 

14 ‘‘(1) COMPENSATION.— 

15 ‘‘(A) IN GENERAL.—The Associate Admin16 istrator shall pay to fellows a rate of pay deter17 mined appropriate by the Associate Adminis18 trator. 

19 ‘‘(B) CRITERIA.—When determining the 

20 rate of pay for fellows under subparagraph (A), 

21 the Associate Administrator shall ensure that 

22 the rate of pay— 

23 ‘‘(i) is comparable with the rate of 

24 pay of employees of the Federal GovernVerDate Sep 11 2014 19:07 Oct 17, 2024 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H9880.IH H9880

ssavage on LAPJG3WLY3PROD with BILLS
11 

•HR 9880 IH

1 ment with similar educational attainment, 

2 experience, and training; and 

3 ‘‘(ii) is not less than the greater of the 

4 applicable State minimum wage or the 

5 Federal minimum hourly rate under the 

6 Fair Labor Standards Act of 1938 (29 

7 U.S.C. 201 et seq.). 

8 ‘‘(2) EDUCATION GRANTS.— 

9 ‘‘(A) IN GENERAL.—An individual who 

10 completes a period of service as a fellow under 

11 program in accordance with the agreement such 

12 individual entered into under subsection (c)(2) 

13 and submits the application required under sub14 paragraph (B) shall be eligible to receive a 

15 grant in accordance with this paragraph. 

16 ‘‘(B) APPLICATION.—An individual seeking 

17 a grant under this paragraph shall submit to 

18 the Associate Administrator an application at 

19 such time, in such manner, and containing such 

20 information as the Associate Administrator de21 termines appropriate. 

22 ‘‘(C) GRANT AMOUNT.—The aggregate 

23 amount of a grant made under this paragraph 

24 to an individual described in subparagraph (B) 

25 may not exceed the maximum amount of a 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•HR 9880 IH

1 grant under section 401 of the Higher Edu2 cation Act of 1965 (20 U.S.C. 1070a) for the 

3 award year in which such individual becomes el4 igible for a grant under this paragraph. 

5 ‘‘(D) DISBURSEMENT.— 

6 ‘‘(i) INITIAL DISBURSEMENT.—Upon 

7 an individual described in subparagraph 

8 (A) becoming eligible to receive a grant 

9 under this paragraph, the Associate Ad10 ministrator shall disburse amounts under 

11 such grant in an amount equal to the less12 er of— 

13 ‘‘(I) the maximum amount al14 lowed under subparagraph (D); or 

15 ‘‘(II) the amount equal to the 

16 sum of the aggregate amount of the 

17 outstanding loans of such individual 

18 described in subclauses (I) through 

19 (III) of subparagraph (E)(i) and the 

20 amount of the expenses described in 

21 subclause (IV) of such subparagraph 

22 owed by such individual as of the date 

23 on which such individual becomes eli24 gible for such grant. 


ssavage on LAPJG3WLY3PROD with BILLS
13 

•HR 9880 IH

1 ‘‘(ii) ROLLING DISBURSEMENT.—Dur2 ing the seven-year period beginning on the 

3 date on which the recipient of such grant 

4 becomes eligible to receive such grant, the 

5 Associate Administrator shall disburse to 

6 such recipient additional amounts under 

7 such grant equal to the amount of loans 

8 and expenses described in subparagraph 

9 (E) that such recipient incurs on or after 

10 such date, as such recipient incurs such 

11 loans and expenses, to the extent that the 

12 aggregate of such additional amounts and 

13 the amount disbursed under clause (i) for 

14 such grant does not exceed the maximum 

15 amount allowed for such grant under sub16 paragraph (C). 

17 ‘‘(E) USES.— 

18 ‘‘(i) IN GENERAL.—The recipient of a 

19 grant awarded under this paragraph may 

20 use amounts received under such grant 

21 only to pay the following: 

22 ‘‘(I) Qualified Federal student 

23 loans made to such recipient. 

24 ‘‘(II) Loans made to such recipi25 ent— 


ssavage on LAPJG3WLY3PROD with BILLS
14 

•HR 9880 IH

1 ‘‘(aa) under subpart II of 

2 part A of title VII of the Public 

3 Health Service Act; or 

4 ‘‘(bb) under part E of title 

5 VIII of that Act. 

6 ‘‘(III) Loans made to such recipi7 ent— 

8 ‘‘(aa) by a State to pay 

9 postsecondary educational ex10 penses of the recipient; or 

11 ‘‘(bb) by a public institution 

12 of higher education (as defined in 

13 section 101 of the Higher Edu14 cation Act of 1965 (20 U.S.C. 

15 1001)) to pay a borrower’s costs 

16 of attendance at such institution. 

17 ‘‘(IV) Expenses incurred by such 

18 recipient for a program of education 

19 leading to an advanced degree to the 

20 extent that such expenses are— 

21 ‘‘(aa) expenses for which 

22 amounts payable to an individual 

23 under section 3313(c)(1)(B)(iv) 

24 of title 38, United States Code, 

25 may be used; and 


ssavage on LAPJG3WLY3PROD with BILLS
15 

•HR 9880 IH

1 ‘‘(bb) owed or incurred on or 

2 after the date on which such re3 cipient becomes eligible for such 

4 grant. 

5 ‘‘(ii) QUALIFIED FEDERAL STUDENT

6 LOAN DEFINED.—In this subparagraph, 

7 the term ‘qualified Federal student loan’ 

8 means a loan made under Part D of title 

9 IV of the Higher Education Act of 1965 

10 (1087a et seq.) except such term does not 

11 include— 

12 ‘‘(I) a Federal Direct PLUS 

13 Loan made to the parents of a de14 pendent student; or 

15 ‘‘(II) a Federal Direct Consolida16 tion Loan made under section 455(g) 

17 of such Act to the extent that such 

18 loan was used to repay a Federal Di19 rect PLUS Loan made to the parents 

20 of a dependent student. 

21 ‘‘(F) SINGLE AWARD.—An individual may 

22 receive only a single grant under this para23 graph. 

24 ‘‘(G) OUTREACH.—The Associate Adminis25 trator shall— 


ssavage on LAPJG3WLY3PROD with BILLS
16 

•HR 9880 IH

1 ‘‘(i) conduct outreach to institutions 

2 of higher education (as defined under sec3 tion 101(a) of the Higher Education Act of 

4 1965 (20 U.S.C. 1001(a))) to provide in5 formation to students at such institutions 

6 about the benefits of participating as a fel7 low in the program; and 

8 ‘‘(ii) seek to coordinate with institu9 tions of higher education and businesses to 

10 develop academic and professional opportu11 nities for former fellows, including oppor12 tunities for employment and to obtain ad13 vanced degrees. 

14 ‘‘(3) NONCOMPETITIVE APPOINTMENT ELIGI15 BILITY.—During the one-year period beginning on 

16 the date on which an individual completes a period 

17 service as a fellow under the program in accordance 

18 with the agreement such individual entered into 

19 under subsection (c)(2), the head of a Federal agen20 cy may, without regard to the provisions of sub21 chapter I of chapter 33 of title 5, United States 

22 Code, other than section 3303 and 3328 of such 

23 title, appoint such individual to a vacant position in 

24 the competitive service in such agency for which 

25 such individual is qualified. 


ssavage on LAPJG3WLY3PROD with BILLS
17 

•HR 9880 IH

1 ‘‘(g) STATUS.— 

2 ‘‘(1) IN GENERAL.—Except as provided by this 

3 subsection— 

4 ‘‘(A) a fellow is not an employee of— 

5 ‘‘(i) any participating business to 

6 which such fellow is assigned under the 

7 program for the purpose of any law, in8 cluding the Internal Review Code of 1986; 

9 or 

10 ‘‘(ii) the Federal Government; and 

11 ‘‘(B) selection for participation in the pro12 gram does not constitute an appointment as an 

13 officer or employee of the Federal Government 

14 for the purpose of any law. 

15 ‘‘(2) EXCEPTIONS.—A fellow is deemed to be 

16 an employee of— 

17 ‘‘(A) the Federal Government for purposes 

18 of— 

19 ‘‘(i) chapter 81 of title 5, United 

20 States Code; and 

21 ‘‘(ii) chapter 171 of title 28, United 

22 States Code, and any other Federal tort li23 ability statute; and 


ssavage on LAPJG3WLY3PROD with BILLS
18 

•HR 9880 IH

1 ‘‘(B) the Administration for the purposes 

2 of chapters 83 and 84 of title 5, United States 

3 Code. 

4 ‘‘(3) HEALTH CARE.—A fellow is deemed to be 

5 a full-time employee of the Administration for the 

6 purposes of chapter 89 of title 5, United States 

7 Code, except that a fellow or former fellow may not 

8 make the election under section 8905a(a) of such 

9 title with respect to coverage under such chapter ob10 tained pursuant this paragraph. 

11 ‘‘(4) EMPLOYMENT TAXES.—For purposes of 

12 subtitle C of the Internal Revenue Code of 1986, the 

13 Small Business Administration shall be treated as 

14 the employer of each fellow with respect to the pro15 gram. 

16 ‘‘(h) REPORT TO CONGRESS.—Not later than one 

17 year after the establishment of the program, and annually 

18 thereafter, the Associate Administrator shall submit to the 

19 Committee on Small Business and Entrepreneurship of 

20 the Senate and the Committee on Small Business of the 

21 House of Representatives a report on the program, includ22 ing— 

23 ‘‘(1) the effects of fellows on the participating 

24 businesses to which such fellows have been assigned 

25 under the program; 


ssavage on LAPJG3WLY3PROD with BILLS
19 

•HR 9880 IH

1 ‘‘(2) the economic effects of the program on 

2 distressed communities in which participating busi3 nesses are located; 

4 ‘‘(3) the overall performance of fellows under 

5 the program; 

6 ‘‘(4) the overall performance of participating 

7 businesses; and 

8 ‘‘(5) recommendations to modify the program 

9 to more effectively support economic activity and job 

10 creation in distressed areas of the United States.’’. 

11 (b) STUDENT LOAN FORGIVENESS CREDIT.—Section 

12 455(m)(3)(B) of the Higher Education Act of 1965 (20 

13 U.S.C. 1087e(m)(3)(B)) is amended— 

14 (1) in clause (i), by striking ‘‘; or’’ and insert15 ing a semicolon; 

16 (2) in clause (ii), by striking the period at the 

17 end and inserting ‘‘; or’’; and 

18 (3) by adding at the end the following new 

19 clause: 

20 ‘‘(iii) serving as a fellow in the Entre21 preneurship Corps National Service Pro22 gram established under section 49 of the 

23 Small Business Act.’’. 

24 (c) EXCLUSION FROM ADJUSTED GROSS INCOME.— 


ssavage on LAPJG3WLY3PROD with BILLS
20 

•HR 9880 IH

1 (1) IN GENERAL.—Part III of subchapter B of 

2 the Internal Revenue Code of 1986 is amended by 

3 inserting after section 139I the following new sec4 tion: 

5 ‘‘SEC. 139J. SMALL BUSINESS FELLOW. 

6 ‘‘In the case of a small business concern to which a 

7 fellow is assigned under the Entrepreneurship Corps Na8 tional Service Program established under section 49 of the 

9 Small Business Act, gross income does not include the 

10 value of any labor performed by such fellow.’’. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions for part III of subchapter B of such Code is 

13 amended by inserting after the item relating to sec14 tion 139I the following new item: 

‘‘Sec. 139J. Small business fellow.’’. 

15 (3) EFFECTIVE DATE.—The amendment made 

16 by this subsection shall apply to taxable years begin17 ning after the date of the enactment of this sub18 section. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS