II 

Calendar No. 229 

115TH CONGRESS 

1ST SESSION S. 607 

[Report No. 115–163] 

To establish a business incubators program within the Department of the 

Interior to promote economic development in Indian reservation communities. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2017 

Mr. UDALL (for himself, Mr. TESTER, and Ms. CANTWELL) introduced the 

following bill; which was read twice and referred to the Committee on Indian Affairs 

SEPTEMBER 26, 2017 

Reported by Mr. HOEVEN, without amendment 

A BILL 

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

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’’. 

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1 SEC. 2. FINDINGS. 

2 Congress finds that— 

3 (1) entrepreneurs face specific challenges when 

4 transforming ideas into profitable business enter5 prises; 

6 (2) entrepreneurs that want to provide products 

7 and services in reservation communities face an ad8 ditional set of challenges that requires special knowl9 edge; 

10 (3) a business incubator is an organization that 

11 assists entrepreneurs in navigating obstacles that 

12 prevent innovative ideas from becoming viable busi13 nesses by providing services that include— 

14 (A) workspace and facilities resources; 

15 (B) access to capital, business education, 

16 and counseling; 

17 (C) networking opportunities; 

18 (D) mentorship opportunities; and 

19 (E) an environment intended to help estab20 lish and expand business operations; 

21 (4) the business incubator model is suited to ac22 celerating entrepreneurship in reservation commu23 nities because the business incubator model pro24 motes collaboration to address shared challenges and 

25 provides individually tailored services for the purpose 

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1 of overcoming obstacles unique to each participating 

2 business; and 

3 (5) business incubators will stimulate economic 

4 development by providing Native entrepreneurs with 

5 the tools necessary to grow businesses that offer 

6 products and services to reservation communities. 

7 SEC. 3. DEFINITIONS. 

8 In this Act: 

9 (1) BUSINESS INCUBATOR.—The term ‘‘busi10 ness incubator’’ means an organization that— 

11 (A) provides physical workspace and facili12 ties resources to startups and established busi13 nesses; and 

14 (B) is designed to accelerate the growth 

15 and success of businesses through a variety of 

16 business support resources and services, includ17 ing— 

18 (i) access to capital, business edu19 cation, and counseling; 

20 (ii) networking opportunities; 

21 (iii) mentorship opportunities; and 

22 (iv) other services intended to aid in 

23 developing a business. 

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

2 applicant’’ means an applicant eligible to apply for 

3 a grant under section 4(b). 

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

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

6 Indian Self-Determination and Education Assistance 

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

8 (4) INSTITUTION OF HIGHER EDUCATION.—The 

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

10 meaning given the term in section 101 of the Higher 

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

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

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

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

15 Self-Determination and Education Assistance Act 

16 (25 U.S.C. 5304). 

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

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

19 51-percent owned and controlled by 1 or more Na20 tive Americans. 

21 (7) NATIVE ENTREPRENEUR.—The term ‘‘Na22 tive entrepreneur’’ means an entrepreneur who is a 

23 Native American. 

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

25 the program established under section 4(a). 

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

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

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

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

5 means the Secretary of the Interior. 

6 (11) TRIBAL COLLEGE OR UNIVERSITY.—The 

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

8 given the term ‘‘Tribal College or University’’ in sec9 tion 316(b) of the Higher Education Act of 1965 

10 (20 U.S.C. 1059c(b)). 

11 SEC. 4. ESTABLISHMENT OF PROGRAM. 

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

13 program in the Office of Indian Energy and Economic De14 velopment under which the Secretary shall provide finan15 cial assistance in the form of competitive grants to eligible 

16 applicants for the establishment and operation of business 

17 incubators that serve reservation communities by pro18 viding business incubation and other business services to 

19 Native businesses and Native entrepreneurs. 

20 (b) ELIGIBLE APPLICANTS.— 

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

22 grant under the program, an applicant shall— 

23 (A) be— 

24 (i) an Indian tribe; 

25 (ii) a tribal college or university; 

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1 (iii) an institution of higher education; 

2 or 

3 (iv) a private nonprofit organization 

4 or tribal nonprofit organization that— 

5 (I) provides business and finan6 cial technical assistance; and 

7 (II) will commit to serving 1 or 

8 more reservation communities; 

9 (B) be able to provide the physical work10 space, equipment, and connectivity necessary 

11 for Native businesses and Native entrepreneurs 

12 to collaborate and conduct business on a local, 

13 regional, national, and international level; and 

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

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

16 have been operational for not less than 1 year 

17 before receiving a grant under the program. 

18 (2) JOINT PROJECT.— 

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

20 may submit a joint application for a project 

21 that combines the resources and expertise of 

22 those entities at a physical location dedicated to 

23 assisting Native businesses and Native entre24 preneurs under the program. 

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1 (B) CONTENTS.—A joint application sub2 mitted under subparagraph (A) shall— 

3 (i) contain a certification that each 

4 participant of the joint project is one of 

5 the eligible entities described in paragraph 

6 (1)(A); and 

7 (ii) demonstrate that together the par8 ticipants meet the requirements of sub9 paragraphs (B) and (C) of paragraph (1). 

10 (c) APPLICATION AND SELECTION PROCESS.— 

11 (1) APPLICATION REQUIREMENTS.—Each eligi12 ble applicant desiring a grant under the program 

13 shall submit to the Secretary an application at such 

14 time, in such manner, and containing such informa15 tion as the Secretary may require, including— 

16 (A) a certification that the applicant— 

17 (i) is an eligible applicant; 

18 (ii) will designate an executive direc19 tor or program manager, if such director 

20 or manager has not been designated, to 

21 manage the business incubator; and 

22 (iii) agrees— 

23 (I) to a site evaluation by the 

24 Secretary as part of the final selection 

25 process; 

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1 (II) to an annual programmatic 

2 and financial examination for the du3 ration of the grant; and 

4 (III) to the maximum extent 

5 practicable, to remedy any problems 

6 identified pursuant to the site evalua7 tion under subclause (I) or an exam8 ination under subclause (II); 

9 (B) a description of the 1 or more reserva10 tion communities to be served by the business 

11 incubator; 

12 (C) a 3-year plan that describes— 

13 (i) the number of Native businesses 

14 and Native entrepreneurs to be partici15 pating in the business incubator; 

16 (ii) whether the business incubator 

17 will focus on a particular type of business 

18 or industry; 

19 (iii) a detailed breakdown of the serv20 ices to be offered to Native businesses and 

21 Native entrepreneurs participating in the 

22 business incubator; and 

23 (iv) a detailed breakdown of the serv24 ices, if any, to be offered to Native busiVerDate Sep 11 2014 23:27 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S607.RS S607
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1 nesses and Native entrepreneurs not par2 ticipating in the business incubator; 

3 (D) information demonstrating the effec4 tiveness and experience of the eligible applicant 

5 in— 

6 (i) conducting financial, management, 

7 and marketing assistance programs de8 signed to educate or improve the business 

9 skills of current or prospective businesses; 

10 (ii) working in and providing services 

11 to Native American communities; 

12 (iii) providing assistance to entities 

13 conducting business in reservation commu14 nities; 

15 (iv) providing technical assistance 

16 under Federal business and entrepre17 neurial development programs for which 

18 Native businesses and Native entre19 preneurs are eligible; and 

20 (v) managing finances and staff effec21 tively; and 

22 (E) a site description of the location at 

23 which the eligible applicant will provide physical 

24 workspace, including a description of the tech25 nologies, equipment, and other resources that 

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1 will be available to Native businesses and Na2 tive entrepreneurs participating in the business 

3 incubator. 

4 (2) EVALUATION CONSIDERATIONS.— 

5 (A) IN GENERAL.—In evaluating each ap6 plication, the Secretary shall consider— 

7 (i) the ability of the eligible appli8 cant— 

9 (I) to operate a business incu10 bator that effectively imparts entre11 preneurship and business skills to Na12 tive businesses and Native entre13 preneurs, as demonstrated by the ex14 perience and qualifications of the eli15 gible applicant; 

16 (II) to commence providing serv17 ices within a minimum period of time, 

18 to be determined by the Secretary; 

19 and 

20 (III) to provide quality incuba21 tion services to a significant number 

22 of Native businesses and Native entre23 preneurs; 

24 (ii) the experience of the eligible appli25 cant in providing services in Native AmerVerDate Sep 11 2014 23:27 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S607.RS S607
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1 ican communities, including in the 1 or 

2 more reservation communities described in 

3 the application; and 

4 (iii) the proposed location of the busi5 ness incubator. 

6 (B) PRIORITY.— 

7 (i) IN GENERAL.—In evaluating the 

8 proposed location of the business incubator 

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

10 shall— 

11 (I) consider the program goal of 

12 achieving broad geographic distribu13 tion of business incubators; and 

14 (II) except as provided in clause 

15 (ii), give priority to eligible applicants 

16 that will provide business incubation 

17 services on or near the reservation of 

18 the 1 or more communities that were 

19 described in the application. 

20 (ii) EXCEPTION.—The Secretary may 

21 give priority to an eligible applicant that is 

22 not located on or near the reservation of 

23 the 1 or more communities that were de24 scribed in the application if the Secretary 

25 determines that— 

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1 (I) the location of the business 

2 incubator will not prevent the eligible 

3 applicant from providing quality busi4 ness incubation services to Native 

5 businesses and Native entrepreneurs 

6 from the 1 or more reservation com7 munities to be served; and 

8 (II) siting the business incubator 

9 in the identified location will serve the 

10 interests of the 1 or more reservation 

11 communities to be served. 

12 (3) SITE EVALUATION.— 

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

14 to an eligible applicant, the Secretary shall con15 duct a site visit, evaluate a video submission, or 

16 evaluate a written site proposal (if the applicant 

17 is not yet in possession of the site) of the pro18 posed site to ensure the proposed site will per19 mit the eligible applicant to meet the require20 ments of the program. 

21 (B) WRITTEN SITE PROPOSAL.—A written 

22 site proposal shall meet the requirements de23 scribed in paragraph (1)(E) and contain— 

24 (i) sufficient detail for the Secretary 

25 to ensure in the absence of a site visit or 

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1 video submission that the proposed site will 

2 permit the eligible applicant to meet the 

3 requirements of the program; and 

4 (ii) a timeline describing when the eli5 gible applicant will be— 

6 (I) in possession of the proposed 

7 site; and 

8 (II) operating the business incu9 bator at the proposed site. 

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

11 after awarding a grant to an eligible applicant 

12 that submits an application with a written site 

13 proposal, the Secretary shall conduct a site visit 

14 or evaluate a video submission of the site to en15 sure the site is consistent with the written site 

16 proposal. 

17 (d) ADMINISTRATION.— 

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

19 program shall be for a term of 3 years. 

20 (2) PAYMENT.— 

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

22 subparagraph (B), the Secretary shall disburse 

23 grant funds awarded to an eligible applicant in 

24 annual installments. 

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1 (B) MORE FREQUENT DISBURSEMENTS.— 

2 On request by the applicant, the Secretary may 

3 make disbursements of grant funds more fre4 quently than annually, on the condition that 

5 disbursements shall be made not more fre6 quently than quarterly. 

7 (3) NON-FEDERAL CONTRIBUTIONS FOR INI8 TIAL ASSISTANCE.— 

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

10 subparagraph (B), an eligible applicant that re11 ceives a grant under the program shall provide 

12 non-Federal contributions in an amount equal 

13 to not less than 25 percent of the grant amount 

14 disbursed each year. 

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

16 in whole or in part, the requirements of sub17 paragraph (A) with respect to an eligible appli18 cant if, after considering the ability of the eligi19 ble applicant to provide non-Federal contribu20 tions, the Secretary determines that— 

21 (i) the proposed business incubator 

22 will provide quality business incubation 

23 services; and 

24 (ii) the 1 or more reservation commu25 nities to be served are unlikely to receive 

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1 similar services because of remoteness or 

2 other reasons that inhibit the provision of 

3 business and entrepreneurial development 

4 services. 

5 (4) RENEWALS.— 

6 (A) IN GENERAL.—The Secretary may 

7 renew a grant award under the program for a 

8 term not to exceed 3 years. 

9 (B) CONSIDERATIONS.—In determining 

10 whether to renew a grant award, the Secretary 

11 shall consider with respect to the eligible appli12 cant— 

13 (i) the results of the annual evalua14 tions of the eligible applicant under sub15 section (f)(1); 

16 (ii) the performance of the business 

17 incubator of the eligible applicant, as com18 pared to the performance of other business 

19 incubators receiving assistance under the 

20 program; 

21 (iii) whether the eligible applicant con22 tinues to be eligible for the program; and 

23 (iv) the evaluation considerations for 

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

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1 (C) NON-FEDERAL CONTRIBUTIONS FOR

2 RENEWALS.— 

3 (i) IN GENERAL.—Except as provided 

4 in clause (ii), an eligible applicant that re5 ceives a grant renewal under subparagraph 

6 (A) shall provide non-Federal contributions 

7 in an amount equal to not less than 33 

8 percent of the total amount of the grant. 

9 (ii) WAIVER.—The Secretary may 

10 waive, in whole or in part, the require11 ments of clause (i) with respect to an eligi12 ble applicant if, after considering the abil13 ity of the eligible applicant to provide non14 Federal contributions, the Secretary deter15 mines that— 

16 (I) the business incubator has 

17 provided and will continue to provide 

18 quality business incubation services to 

19 the 1 or more reservation commu20 nities served by the business incu21 bator; 

22 (II) the 1 or more reservation 

23 communities served by the business 

24 incubator have benefited and will conVerDate Sep 11 2014 23:27 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S607.RS S607
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1 tinue to benefit from the services of 

2 the business incubator; and 

3 (III) the 1 or more reservation 

4 communities to be served are unlikely 

5 to receive similar services because of 

6 remoteness or other reasons that in7 hibit the provision of business and en8 trepreneurial development services. 

9 (e) PROGRAM REQUIREMENTS.— 

10 (1) USE OF FUNDS.—An eligible applicant re11 ceiving a grant under the program may use grant 

12 amounts— 

13 (A) to provide physical workspace and fa14 cilities for Native businesses and Native entre15 preneurs participating in the business incu16 bator; 

17 (B) to establish partnerships with other in18 stitutions and entities to provide comprehensive 

19 business incubation services to Native busi20 nesses and Native entrepreneurs participating 

21 in the business incubator; and 

22 (C) for any other uses typically associated 

23 with business incubators that the Secretary de24 termines to be appropriate and consistent with 

25 the purposes of the program. 

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1 (2) MINIMUM REQUIREMENTS.—Each eligible 

2 applicant receiving a grant under the program 

3 shall— 

4 (A) offer culturally tailored incubation 

5 services to Native businesses and Native entre6 preneurs; 

7 (B) use a competitive process for selecting 

8 Native businesses and Native entrepreneurs to 

9 participate in the business incubator; 

10 (C) provide physical workspace that per11 mits Native businesses and Native entre12 preneurs to conduct business and collaborate 

13 with other Native businesses and Native entre14 preneurs; 

15 (D) provide entrepreneurship and business 

16 skills training and education to Native busi17 nesses and Native entrepreneurs including— 

18 (i) financial education, including 

19 training and counseling in— 

20 (I) applying for and securing 

21 business credit and investment cap22 ital; 

23 (II) preparing and presenting fi24 nancial statements; and 

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1 (III) managing cash flow and 

2 other financial operations of a busi3 ness; 

4 (ii) management education, including 

5 training and counseling in planning, orga6 nization, staffing, directing, and controlling 

7 each major activity or function of a busi8 ness or startup; and 

9 (iii) marketing education, including 

10 training and counseling in— 

11 (I) identifying and segmenting 

12 domestic and international market op13 portunities; 

14 (II) preparing and executing 

15 marketing plans; 

16 (III) locating contract opportuni17 ties; 

18 (IV) negotiating contracts; and 

19 (V) using varying public relations 

20 and advertising techniques; 

21 (E) provide direct mentorship or assistance 

22 finding mentors in the industry in which the 

23 Native business or Native entrepreneur operates 

24 or intends to operate; and 

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1 (F) provide access to networks of potential 

2 investors, professionals in the same or similar 

3 fields, and other business owners with similar 

4 businesses. 

5 (3) TECHNOLOGY.—Each eligible applicant 

6 shall leverage technology to the maximum extent 

7 practicable to provide Native businesses and Native 

8 entrepreneurs with access to the connectivity tools 

9 needed to compete and thrive in 21st-century mar10 kets. 

11 (f) OVERSIGHT.— 

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

13 year after the date on which the Secretary awards 

14 a grant to an eligible applicant under the program, 

15 and annually thereafter for the duration of the 

16 grant, the Secretary shall conduct an evaluation of, 

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

18 shall— 

19 (A) describe the performance of the eligible 

20 applicant; and 

21 (B) be used in determining the ongoing eli22 gibility of the eligible applicant. 

23 (2) ANNUAL REPORT.— 

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

25 after the date on which the Secretary awards a 

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1 grant to an eligible applicant under the pro2 gram, and annually thereafter for the duration 

3 of the grant, each eligible applicant receiving an 

4 award under the program shall submit to the 

5 Secretary a report describing the services the 

6 eligible applicant provided under the program 

7 during the preceding year. 

8 (B) REPORT CONTENT.—The report de9 scribed in subparagraph (A) shall include— 

10 (i) a detailed breakdown of the Native 

11 businesses and Native entrepreneurs re12 ceiving services from the business incu13 bator, including, for the year covered by 

14 the report— 

15 (I) the number of Native busi16 nesses and Native entrepreneurs par17 ticipating in or receiving services from 

18 the business incubator and the types 

19 of services provided to those Native 

20 businesses and Native entrepreneurs; 

21 (II) the number of Native busi22 nesses and Native entrepreneurs es23 tablished and jobs created or main24 tained; and 

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1 (III) the performance of Native 

2 businesses and Native entrepreneurs 

3 while participating in the business in4 cubator and after graduation or de5 parture from the business incubator; 

6 and 

7 (ii) any other information the Sec8 retary may require to evaluate the per9 formance of a business incubator to ensure 

10 appropriate implementation of the pro11 gram. 

12 (C) LIMITATIONS.—To the maximum ex13 tent practicable, the Secretary shall not require 

14 an eligible applicant to report under subpara15 graph (A) information provided to the Secretary 

16 by the eligible applicant under other programs. 

17 (D) COORDINATION.—The Secretary shall 

18 coordinate with the heads of other Federal 

19 agencies to ensure that, to the maximum extent 

20 practicable, the report content and form under 

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

22 other reporting requirements for Federal pro23 grams that provide business and entrepre24 neurial assistance. 

25 (3) REPORT TO CONGRESS.— 

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

2 after the date on which the Secretary first 

3 awards funding under the program, and bienni4 ally thereafter, the Secretary shall submit to 

5 the Committee on Indian Affairs of the Senate 

6 and the Committee on Natural Resources of the 

7 House of Representatives a report on the per8 formance and effectiveness of the program. 

9 (B) CONTENTS.—Each report submitted 

10 under subparagraph (A) shall— 

11 (i) account for each program year; 

12 and 

13 (ii) include with respect to each busi14 ness incubator receiving grant funds under 

15 the program— 

16 (I) the number of Native busi17 nesses and Native entrepreneurs that 

18 received business incubation or other 

19 services; 

20 (II) the number of businesses es21 tablished with the assistance of the 

22 business incubator; 

23 (III) the number of jobs estab24 lished or maintained by Native busi25 nesses and Native entrepreneurs reVerDate Sep 11 2014 23:27 Sep 26, 2017 Jkt 069200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S607.RS S607
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1 ceiving business incubation services, 

2 including a description of where the 

3 jobs are located with respect to res4 ervation communities; 

5 (IV) to the maximum extent 

6 practicable, the amount of capital in7 vestment and loan financing accessed 

8 by Native businesses and Native en9 trepreneurs receiving business incuba10 tion services; and 

11 (V) an evaluation of the overall 

12 performance of the business incu13 bator. 

14 SEC. 5. REGULATIONS. 

15 Not later than 180 days after the date of enactment 

16 of this Act, the Secretary shall promulgate regulations to 

17 implement the program. 

18 SEC. 6. SCHOOLS TO BUSINESS INCUBATOR PIPELINE. 

19 The Secretary shall facilitate the establishment of re20 lationships between eligible applicants receiving funds 

21 through the program and educational institutions serving 

22 Native American communities, including tribal colleges 

23 and universities. 

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1 SEC. 7. AGENCY PARTNERSHIPS. 

2 The Secretary shall coordinate with the Secretary of 

3 Agriculture, the Secretary of Commerce, the Secretary of 

4 the Treasury, and the Administrator of the Small Busi5 ness Administration to ensure, to the maximum extent 

6 practicable, that business incubators receiving grant funds 

7 under the program have the information and materials 

8 needed to provide Native businesses and Native entre9 preneurs with the information and assistance necessary to 

10 apply for business and entrepreneurial development pro11 grams administered by the Department of Agriculture, the 

12 Department of Commerce, the Department of the Treas13 ury, and the Small Business Administration. 

14 SEC. 8. AUTHORIZATIONS OF APPROPRIATIONS. 

15 There are authorized to be appropriated to carry out 

16 the program— 

17 (1) for each of fiscal years 2018 through 2023, 

18 $5,000,000; and 

19 (2) for fiscal year 2024 and each fiscal year 

20 thereafter, such sums as may be necessary. 

Calendar No. 229 

115TH CONGRESS 

1ST SESSION S. 607 

[Report No. 115–163] 

A BILL 

To establish a business incubators program within 

nities. nomic development in Indian reservation commuthe Department of the Interior to promote ecoSEPTEMBER 26, 2017 

Reported without amendment