ID 

Union Calendar No. 808 

115TH CONGRESS 

2D SESSION S. 607 

[Report No. 115–1037] 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2018 

Referred to the Committee on Natural Resources 

NOVEMBER 20, 2018 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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AN ACT 

To establish a business incubators program within the Department of the Interior to promote economic development in Indian reservation communities. 


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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 ‘‘Native American Busi5 ness Incubators Program Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) entrepreneurs face specific challenges when 

9 transforming ideas into profitable business enter10 prises; 

11 (2) entrepreneurs that want to provide products 

12 and services in reservation communities face an ad13 ditional set of challenges that requires special knowl14 edge; 

15 (3) a business incubator is an organization that 

16 assists entrepreneurs in navigating obstacles that 

17 prevent innovative ideas from becoming viable busi18 nesses by providing services that include— 

19 (A) workspace and facilities resources; 

20 (B) access to capital, business education, 

21 and counseling; 

22 (C) networking opportunities; 

23 (D) mentorship opportunities; and 

24 (E) an environment intended to help estab25 lish and expand business operations; 


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1 (4) the business incubator model is suited to ac2 celerating entrepreneurship in reservation commu3 nities because the business incubator model pro4 motes collaboration to address shared challenges and 

5 provides individually tailored services for the purpose 

6 of overcoming obstacles unique to each participating 

7 business; and 

8 (5) business incubators will stimulate economic 

9 development by providing Native entrepreneurs with 

10 the tools necessary to grow businesses that offer 

11 products and services to reservation communities. 

12 SEC. 3. DEFINITIONS. 

13 In this Act: 

14 (1) BUSINESS INCUBATOR.—The term ‘‘busi15 ness incubator’’ means an organization that— 

16 (A) provides physical workspace and facili17 ties resources to startups and established busi18 nesses; and 

19 (B) is designed to accelerate the growth 

20 and success of businesses through a variety of 

21 business support resources and services, includ22 ing— 

23 (i) access to capital, business edu24 cation, and counseling; 

25 (ii) networking opportunities; 


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1 (iii) mentorship opportunities; and 

2 (iv) other services intended to aid in 

3 developing a business. 

4 (2) ELIGIBLE APPLICANT.—The term ‘‘eligible 

5 applicant’’ means an applicant eligible to apply for 

6 a grant under section 4(b). 

7 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

8 has the meaning given the term in section 4 of the 

9 Indian Self-Determination and Education Assistance 

10 Act (25 U.S.C. 5304). 

11 (4) INSTITUTION OF HIGHER EDUCATION.—The 

12 term ‘‘institution of higher education’’ has the 

13 meaning given the term in section 101 of the Higher 

14 Education Act of 1965 (20 U.S.C. 1001). 

15 (5) NATIVE AMERICAN; NATIVE.—The terms 

16 ‘‘Native American’’ and ‘‘Native’’ have the meaning 

17 given the term ‘‘Indian’’ in section 4 of the Indian 

18 Self-Determination and Education Assistance Act 

19 (25 U.S.C. 5304). 

20 (6) NATIVE BUSINESS.—The term ‘‘Native 

21 business’’ means a business concern that is at least 

22 51-percent owned and controlled by 1 or more Na23 tive Americans. 


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1 (7) NATIVE ENTREPRENEUR.—The term ‘‘Na2 tive entrepreneur’’ means an entrepreneur who is a 

3 Native American. 

4 (8) PROGRAM.—The term ‘‘program’’ means 

5 the program established under section 4(a). 

6 (9) RESERVATION.—The term ‘‘reservation’’ 

7 has the meaning given the term in section 3 of the 

8 Indian Financing Act of 1974 (25 U.S.C. 1452). 

9 (10) SECRETARY.—The term ‘‘Secretary’’ 

10 means the Secretary of the Interior. 

11 (11) TRIBAL COLLEGE OR UNIVERSITY.—The 

12 term ‘‘tribal college or university’’ has the meaning 

13 given the term ‘‘Tribal College or University’’ in sec14 tion 316(b) of the Higher Education Act of 1965 

15 (20 U.S.C. 1059c(b)). 

16 SEC. 4. ESTABLISHMENT OF PROGRAM. 

17 (a) IN GENERAL.—The Secretary shall establish a 

18 program in the Office of Indian Energy and Economic De19 velopment under which the Secretary shall provide finan20 cial assistance in the form of competitive grants to eligible 

21 applicants for the establishment and operation of business 

22 incubators that serve reservation communities by pro23 viding business incubation and other business services to 

24 Native businesses and Native entrepreneurs. 

25 (b) ELIGIBLE APPLICANTS.— 


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1 (1) IN GENERAL.—To be eligible to receive a 

2 grant under the program, an applicant shall— 

3 (A) be— 

4 (i) an Indian tribe; 

5 (ii) a tribal college or university; 

6 (iii) an institution of higher education; 

7 or 

8 (iv) a private nonprofit organization 

9 or tribal nonprofit organization that— 

10 (I) provides business and finan11 cial technical assistance; and 

12 (II) will commit to serving 1 or 

13 more reservation communities; 

14 (B) be able to provide the physical work15 space, equipment, and connectivity necessary 

16 for Native businesses and Native entrepreneurs 

17 to collaborate and conduct business on a local, 

18 regional, national, and international level; and 

19 (C) in the case of an entity described in 

20 clauses (ii) through (iv) of subparagraph (A), 

21 have been operational for not less than 1 year 

22 before receiving a grant under the program. 

23 (2) JOINT PROJECT.— 

24 (A) IN GENERAL.—Two or more entities 

25 may submit a joint application for a project 


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1 that combines the resources and expertise of 

2 those entities at a physical location dedicated to 

3 assisting Native businesses and Native entre4 preneurs under the program. 

5 (B) CONTENTS.—A joint application sub6 mitted under subparagraph (A) shall— 

7 (i) contain a certification that each 

8 participant of the joint project is one of 

9 the eligible entities described in paragraph 

10 (1)(A); and 

11 (ii) demonstrate that together the par12 ticipants meet the requirements of sub13 paragraphs (B) and (C) of paragraph (1). 

14 (c) APPLICATION AND SELECTION PROCESS.— 

15 (1) APPLICATION REQUIREMENTS.—Each eligi16 ble applicant desiring a grant under the program 

17 shall submit to the Secretary an application at such 

18 time, in such manner, and containing such informa19 tion as the Secretary may require, including— 

20 (A) a certification that the applicant— 

21 (i) is an eligible applicant; 

22 (ii) will designate an executive direc23 tor or program manager, if such director 

24 or manager has not been designated, to 

25 manage the business incubator; and 


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1 (iii) agrees— 

2 (I) to a site evaluation by the 

3 Secretary as part of the final selection 

4 process; 

5 (II) to an annual programmatic 

6 and financial examination for the du7 ration of the grant; and 

8 (III) to the maximum extent 

9 practicable, to remedy any problems 

10 identified pursuant to the site evalua11 tion under subclause (I) or an exam12 ination under subclause (II); 

13 (B) a description of the 1 or more reserva14 tion communities to be served by the business 

15 incubator; 

16 (C) a 3-year plan that describes— 

17 (i) the number of Native businesses 

18 and Native entrepreneurs to be partici19 pating in the business incubator; 

20 (ii) whether the business incubator 

21 will focus on a particular type of business 

22 or industry; 

23 (iii) a detailed breakdown of the serv24 ices to be offered to Native businesses and 


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1 Native entrepreneurs participating in the 

2 business incubator; and 

3 (iv) a detailed breakdown of the serv4 ices, if any, to be offered to Native busi5 nesses and Native entrepreneurs not par6 ticipating in the business incubator; 

7 (D) information demonstrating the effec8 tiveness and experience of the eligible applicant 

9 in— 

10 (i) conducting financial, management, 

11 and marketing assistance programs de12 signed to educate or improve the business 

13 skills of current or prospective businesses; 

14 (ii) working in and providing services 

15 to Native American communities; 

16 (iii) providing assistance to entities 

17 conducting business in reservation commu18 nities; 

19 (iv) providing technical assistance 

20 under Federal business and entrepre21 neurial development programs for which 

22 Native businesses and Native entre23 preneurs are eligible; and 

24 (v) managing finances and staff effec25 tively; and 


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1 (E) a site description of the location at 

2 which the eligible applicant will provide physical 

3 workspace, including a description of the tech4 nologies, equipment, and other resources that 

5 will be available to Native businesses and Na6 tive entrepreneurs participating in the business 

7 incubator. 

8 (2) EVALUATION CONSIDERATIONS.— 

9 (A) IN GENERAL.—In evaluating each ap10 plication, the Secretary shall consider— 

11 (i) the ability of the eligible appli12 cant— 

13 (I) to operate a business incu14 bator that effectively imparts entre15 preneurship and business skills to Na16 tive businesses and Native entre17 preneurs, as demonstrated by the ex18 perience and qualifications of the eli19 gible applicant; 

20 (II) to commence providing serv21 ices within a minimum period of time, 

22 to be determined by the Secretary; 

23 and 

24 (III) to provide quality incuba25 tion services to a significant number 


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1 of Native businesses and Native entre2 preneurs; 

3 (ii) the experience of the eligible appli4 cant in providing services in Native Amer5 ican communities, including in the 1 or 

6 more reservation communities described in 

7 the application; and 

8 (iii) the proposed location of the busi9 ness incubator. 

10 (B) PRIORITY.— 

11 (i) IN GENERAL.—In evaluating the 

12 proposed location of the business incubator 

13 under subparagraph (A)(iii), the Secretary 

14 shall— 

15 (I) consider the program goal of 

16 achieving broad geographic distribu17 tion of business incubators; and 

18 (II) except as provided in clause 

19 (ii), give priority to eligible applicants 

20 that will provide business incubation 

21 services on or near the reservation of 

22 the 1 or more communities that were 

23 described in the application. 

24 (ii) EXCEPTION.—The Secretary may 

25 give priority to an eligible applicant that is 


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1 not located on or near the reservation of 

2 the 1 or more communities that were de3 scribed in the application if the Secretary 

4 determines that— 

5 (I) the location of the business 

6 incubator will not prevent the eligible 

7 applicant from providing quality busi8 ness incubation services to Native 

9 businesses and Native entrepreneurs 

10 from the 1 or more reservation com11 munities to be served; and 

12 (II) siting the business incubator 

13 in the identified location will serve the 

14 interests of the 1 or more reservation 

15 communities to be served. 

16 (3) SITE EVALUATION.— 

17 (A) IN GENERAL.—Before making a grant 

18 to an eligible applicant, the Secretary shall con19 duct a site visit, evaluate a video submission, or 

20 evaluate a written site proposal (if the applicant 

21 is not yet in possession of the site) of the pro22 posed site to ensure the proposed site will per23 mit the eligible applicant to meet the require24 ments of the program. 


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1 (B) WRITTEN SITE PROPOSAL.—A written 

2 site proposal shall meet the requirements de3 scribed in paragraph (1)(E) and contain— 

4 (i) sufficient detail for the Secretary 

5 to ensure in the absence of a site visit or 

6 video submission that the proposed site will 

7 permit the eligible applicant to meet the 

8 requirements of the program; and 

9 (ii) a timeline describing when the eli10 gible applicant will be— 

11 (I) in possession of the proposed 

12 site; and 

13 (II) operating the business incu14 bator at the proposed site. 

15 (C) FOLLOWUP.—Not later than 1 year 

16 after awarding a grant to an eligible applicant 

17 that submits an application with a written site 

18 proposal, the Secretary shall conduct a site visit 

19 or evaluate a video submission of the site to en20 sure the site is consistent with the written site 

21 proposal. 

22 (d) ADMINISTRATION.— 

23 (1) DURATION.—Each grant awarded under the 

24 program shall be for a term of 3 years. 

25 (2) PAYMENT.— 


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1 (A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the Secretary shall disburse 

3 grant funds awarded to an eligible applicant in 

4 annual installments. 

5 (B) MORE FREQUENT DISBURSEMENTS.— 

6 On request by the applicant, the Secretary may 

7 make disbursements of grant funds more fre8 quently than annually, on the condition that 

9 disbursements shall be made not more fre10 quently than quarterly. 

11 (3) NON-FEDERAL CONTRIBUTIONS FOR INI12 TIAL ASSISTANCE.— 

13 (A) IN GENERAL.—Except as provided in 

14 subparagraph (B), an eligible applicant that re15 ceives a grant under the program shall provide 

16 non-Federal contributions in an amount equal 

17 to not less than 25 percent of the grant amount 

18 disbursed each year. 

19 (B) WAIVER.—The Secretary may waive, 

20 in whole or in part, the requirements of sub21 paragraph (A) with respect to an eligible appli22 cant if, after considering the ability of the eligi23 ble applicant to provide non-Federal contribu24 tions, the Secretary determines that— 


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1 (i) the proposed business incubator 

2 will provide quality business incubation 

3 services; and 

4 (ii) the 1 or more reservation commu5 nities to be served are unlikely to receive 

6 similar services because of remoteness or 

7 other reasons that inhibit the provision of 

8 business and entrepreneurial development 

9 services. 

10 (4) RENEWALS.— 

11 (A) IN GENERAL.—The Secretary may 

12 renew a grant award under the program for a 

13 term not to exceed 3 years. 

14 (B) CONSIDERATIONS.—In determining 

15 whether to renew a grant award, the Secretary 

16 shall consider with respect to the eligible appli17 cant— 

18 (i) the results of the annual evalua19 tions of the eligible applicant under sub20 section (f)(1); 

21 (ii) the performance of the business 

22 incubator of the eligible applicant, as com23 pared to the performance of other business 

24 incubators receiving assistance under the 

25 program; 


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1 (iii) whether the eligible applicant con2 tinues to be eligible for the program; and 

3 (iv) the evaluation considerations for 

4 initial awards under subsection (c)(2). 

5 (C) NON-FEDERAL CONTRIBUTIONS FOR

6 RENEWALS.—An eligible applicant that receives 

7 a grant renewal under subparagraph (A) shall 

8 provide non-Federal contributions in an amount 

9 equal to not less than 33 percent of the total 

10 amount of the grant. 

11 (5) NO DUPLICATIVE GRANTS.—An eligible ap12 plicant shall not be awarded a grant under the pro13 gram that is duplicative of existing Federal funding 

14 from another source. 

15 (e) PROGRAM REQUIREMENTS.— 

16 (1) USE OF FUNDS.—An eligible applicant re17 ceiving a grant under the program may use grant 

18 amounts— 

19 (A) to provide physical workspace and fa20 cilities for Native businesses and Native entre21 preneurs participating in the business incu22 bator; 

23 (B) to establish partnerships with other in24 stitutions and entities to provide comprehensive 

25 business incubation services to Native busiVerDate Sep 11 2014 21:07 Nov 20, 2018 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S607.RH S607

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1 nesses and Native entrepreneurs participating 

2 in the business incubator; and 

3 (C) for any other uses typically associated 

4 with business incubators that the Secretary de5 termines to be appropriate and consistent with 

6 the purposes of the program. 

7 (2) MINIMUM REQUIREMENTS.—Each eligible 

8 applicant receiving a grant under the program 

9 shall— 

10 (A) offer culturally tailored incubation 

11 services to Native businesses and Native entre12 preneurs; 

13 (B) use a competitive process for selecting 

14 Native businesses and Native entrepreneurs to 

15 participate in the business incubator; 

16 (C) provide physical workspace that per17 mits Native businesses and Native entre18 preneurs to conduct business and collaborate 

19 with other Native businesses and Native entre20 preneurs; 

21 (D) provide entrepreneurship and business 

22 skills training and education to Native busi23 nesses and Native entrepreneurs including— 

24 (i) financial education, including 

25 training and counseling in— 


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1 (I) applying for and securing 

2 business credit and investment cap3 ital; 

4 (II) preparing and presenting fi5 nancial statements; and 

6 (III) managing cash flow and 

7 other financial operations of a busi8 ness; 

9 (ii) management education, including 

10 training and counseling in planning, orga11 nization, staffing, directing, and controlling 

12 each major activity or function of a busi13 ness or startup; and 

14 (iii) marketing education, including 

15 training and counseling in— 

16 (I) identifying and segmenting 

17 domestic and international market op18 portunities; 

19 (II) preparing and executing 

20 marketing plans; 

21 (III) locating contract opportuni22 ties; 

23 (IV) negotiating contracts; and 

24 (V) using varying public relations 

25 and advertising techniques; 


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1 (E) provide direct mentorship or assistance 

2 finding mentors in the industry in which the 

3 Native business or Native entrepreneur operates 

4 or intends to operate; and 

5 (F) provide access to networks of potential 

6 investors, professionals in the same or similar 

7 fields, and other business owners with similar 

8 businesses. 

9 (3) TECHNOLOGY.—Each eligible applicant 

10 shall leverage technology to the maximum extent 

11 practicable to provide Native businesses and Native 

12 entrepreneurs with access to the connectivity tools 

13 needed to compete and thrive in 21st-century mar14 kets. 

15 (f) OVERSIGHT.— 

16 (1) ANNUAL EVALUATIONS.—Not later than 1 

17 year after the date on which the Secretary awards 

18 a grant to an eligible applicant under the program, 

19 and annually thereafter for the duration of the 

20 grant, the Secretary shall conduct an evaluation of, 

21 and prepare a report on, the eligible applicant, which 

22 shall— 

23 (A) describe the performance of the eligible 

24 applicant; and 


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1 (B) be used in determining the ongoing eli2 gibility of the eligible applicant. 

3 (2) ANNUAL REPORT.— 

4 (A) IN GENERAL.—Not later than 1 year 

5 after the date on which the Secretary awards a 

6 grant to an eligible applicant under the pro7 gram, and annually thereafter for the duration 

8 of the grant, each eligible applicant receiving an 

9 award under the program shall submit to the 

10 Secretary a report describing the services the 

11 eligible applicant provided under the program 

12 during the preceding year. 

13 (B) REPORT CONTENT.—The report de14 scribed in subparagraph (A) shall include— 

15 (i) a detailed breakdown of the Native 

16 businesses and Native entrepreneurs re17 ceiving services from the business incu18 bator, including, for the year covered by 

19 the report— 

20 (I) the number of Native busi21 nesses and Native entrepreneurs par22 ticipating in or receiving services from 

23 the business incubator and the types 

24 of services provided to those Native 

25 businesses and Native entrepreneurs; 


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1 (II) the number of Native busi2 nesses and Native entrepreneurs es3 tablished and jobs created or main4 tained; and 

5 (III) the performance of Native 

6 businesses and Native entrepreneurs 

7 while participating in the business in8 cubator and after graduation or de9 parture from the business incubator; 

10 and 

11 (ii) any other information the Sec12 retary may require to evaluate the per13 formance of a business incubator to ensure 

14 appropriate implementation of the pro15 gram. 

16 (C) LIMITATIONS.—To the maximum ex17 tent practicable, the Secretary shall not require 

18 an eligible applicant to report under subpara19 graph (A) information provided to the Secretary 

20 by the eligible applicant under other programs. 

21 (D) COORDINATION.—The Secretary shall 

22 coordinate with the heads of other Federal 

23 agencies to ensure that, to the maximum extent 

24 practicable, the report content and form under 

25 subparagraphs (A) and (B) are consistent with 


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1 other reporting requirements for Federal pro2 grams that provide business and entrepre3 neurial assistance. 

4 (3) REPORT TO CONGRESS.— 

5 (A) IN GENERAL.—Not later than 2 years 

6 after the date on which the Secretary first 

7 awards funding under the program, and bienni8 ally thereafter, the Secretary shall submit to 

9 the Committee on Indian Affairs of the Senate 

10 and the Committee on Natural Resources of the 

11 House of Representatives a report on the per12 formance and effectiveness of the program. 

13 (B) CONTENTS.—Each report submitted 

14 under subparagraph (A) shall— 

15 (i) account for each program year; 

16 and 

17 (ii) include with respect to each busi18 ness incubator receiving grant funds under 

19 the program— 

20 (I) the number of Native busi21 nesses and Native entrepreneurs that 

22 received business incubation or other 

23 services; 


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1 (II) the number of businesses es2 tablished with the assistance of the 

3 business incubator; 

4 (III) the number of jobs estab5 lished or maintained by Native busi6 nesses and Native entrepreneurs re7 ceiving business incubation services, 

8 including a description of where the 

9 jobs are located with respect to res10 ervation communities; 

11 (IV) to the maximum extent 

12 practicable, the amount of capital in13 vestment and loan financing accessed 

14 by Native businesses and Native en15 trepreneurs receiving business incuba16 tion services; and 

17 (V) an evaluation of the overall 

18 performance of the business incu19 bator. 

20 SEC. 5. REGULATIONS. 

21 Not later than 180 days after the date of enactment 

22 of this Act, the Secretary shall promulgate regulations to 

23 implement the program. 


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1 SEC. 6. SCHOOLS TO BUSINESS INCUBATOR PIPELINE. 

2 The Secretary shall facilitate the establishment of re3 lationships between eligible applicants receiving funds 

4 through the program and educational institutions serving 

5 Native American communities, including tribal colleges 

6 and universities. 

7 SEC. 7. AGENCY PARTNERSHIPS. 

8 The Secretary shall coordinate with the Secretary of 

9 Agriculture, the Secretary of Commerce, the Secretary of 

10 the Treasury, and the Administrator of the Small Busi11 ness Administration to ensure, to the maximum extent 

12 practicable, that business incubators receiving grant funds 

13 under the program have the information and materials 

14 needed to provide Native businesses and Native entre15 preneurs with the information and assistance necessary to 

16 apply for business and entrepreneurial development pro17 grams administered by the Department of Agriculture, the 

18 Department of Commerce, the Department of the Treas19 ury, and the Small Business Administration. 

20 SEC. 8. AUTHORIZATIONS OF APPROPRIATIONS. 

21 There are authorized to be appropriated to carry out 

22 the program $5,000,000 for each of fiscal years 2019 

23 through 2023. 


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Union Calendar No. 808 

115TH CONGRESS 

2D SESSION S. 607 

[Report No. 115–1037] 

AN ACT 

To establish a business incubators program within 

nities. nomic development in Indian reservation commuthe Department of the Interior to promote ecoNOVEMBER 20, 2018 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


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