II 

111TH CONGRESS 

1ST SESSION S. 1662 

To amend the Public Works and Economic Development Act of 1965 to 

modify the period used to calculate certain unemployment rates, to encourage the development of business incubators, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 10, 2009 

Mr. BROWN (for himself and Mrs. GILLIBRAND) introduced the following bill; 

which was read twice and referred to the Committee on Environment and 

Public Works 

A BILL 

To amend the Public Works and Economic Development 

Act of 1965 to modify the period used to calculate certain unemployment rates, to encourage the development 

of business incubators, 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 ‘‘Business Incubator 

5 Promotion Act’’. 


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1 SEC. 2. DEVELOPMENT OF BUSINESS INCUBATORS. 

2 Section 2(b) of the Public Works and Economic De3 velopment Act (42 U.S.C. 3121(b)) is amended by striking 

4 paragraph (3) and inserting the following: 

5 ‘‘(3) whether suffering from long-term distress 

6 or a sudden economic dislocation, distressed commu7 nities should be encouraged to support the formation 

8 of business incubators to promote innovation and en9 trepreneurship in economically distressed areas and 

10 to take other actions to support entrepreneurship, so 

11 as to help regions to create higher-skill, higher-wage 

12 jobs and foster the participation of those regions in 

13 the global marketplace; and’’. 

14 SEC. 3. DEFINITIONS. 

15 Section 3 of the Public Works and Economic Devel16 opment Act (42 U.S.C. 3122) is amended— 

17 (1) by redesignating paragraphs (1) through 

18 (12) as paragraphs (2) through (13), respectively; 

19 and 

20 (2) by inserting before paragraph (2) (as redes21 ignated by paragraph (1)) the following: 

22 ‘‘(1) BUSINESS INCUBATOR.— 

23 ‘‘(A) IN GENERAL.—The term ‘business in24 cubator’ means an organization or entity estab25 lished to foster the start-up of businesses or ac26 celerate the growth of fledgling companies by 


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1 providing entrepreneurs with resources and 

2 services to produce viable businesses that can 

3 help create jobs and restore vitality to dis4 tressed areas. 

5 ‘‘(B) EXCLUSION.—The term ‘business in6 cubator’ does not include an organization or en7 tity that is organized primarily as a for-profit 

8 venture.’’. 

9 SEC. 4. UNEMPLOYMENT RATE. 

10 Section 301(a)(2) of the Public Works and Economic 

11 Development Act of 1965 (42 U.S.C. 3161(a)(2)) is 

12 amended by striking ‘‘24-month period’’ and inserting 

13 ‘‘12-month period’’. 

14 SEC. 5. INCREASE IN FEDERAL SHARE; SPECIAL NEED 

15 AREAS. 

16 Section 204(c) of the Public Works and Economic 

17 Development Act of 1965 (42 U.S.C. 3144(c)) is amend18 ed— 

19 (1) by redesignating paragraphs (1) through 

20 (3) as paragraphs (2) through (4), respectively; 

21 (2) by inserting before paragraph (2) (as redes22 ignated by paragraph (1)) the following: 

23 ‘‘(1) RELATIVE NEEDS OF AN AREA.— 

24 ‘‘(A) 175-PERCENT HIGHER UNEMPLOY25 MENT RATE.—In the case of a grant made in 


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1 an area for which the 12-month unemployment 

2 rate is at least 175 percent of the national aver3 age or the per capita income is not more than 

4 60 percent of the national average, the Sec5 retary may increase the Federal share above the 

6 percentage specified in subsection (a) up to 80 

7 percent of the cost of the project. 

8 ‘‘(B) 150-PERCENT HIGHER UNEMPLOY9 MENT RATE.—In the case of a grant made in 

10 an area for which the 12-month unemployment 

11 rate is at least 150 percent of the national aver12 age or the per capita income is not more than 

13 65 percent of the national average, the Sec14 retary may increase the Federal share above the 

15 percentage specified in subsection (a) up to 70 

16 percent of the cost of the project. 

17 ‘‘(C) 125-PERCENT HIGHER UNEMPLOY18 MENT RATE.—In the case of a grant made in 

19 an area for which the 12-month unemployment 

20 rate is at least 125 percent of the national aver21 age or the per capita income is not more than 

22 70 percent of the national average, the Sec23 retary may increase the Federal share above the 

24 percentage specified in subsection (a) up to 60 

25 percent of the cost of the project. 


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1 ‘‘(D) UNEMPLOYMENT RATE GREATER

2 THAN NATIONAL AVERAGE.—In the case of a 

3 grant made in an area for which the 12-month 

4 unemployment rate is at least 1 percentage 

5 point greater than the national 12-month unem6 ployment rate or the per capita income is not 

7 more than 80 percent of the national average, 

8 the Secretary may increase the Federal share 

9 above the percentage specified in subsection (a) 

10 up to 50 percent of the cost of the project.’’; 

11 and 

12 (3) by adding at the end the following: 

13 ‘‘(5) SPECIAL NEED AREAS.—In any case of se14 vere economic distress during which grant rates 

15 based on relative need as required under subsection 

16 (a) result in a level for the non-Federal share that 

17 prevents eligible recipients in a particular area from 

18 participating in grant assistance under this Act, the 

19 Secretary may— 

20 ‘‘(A) deem the area to be experiencing a 

21 special need under section 301(a)(3); 

22 ‘‘(B) reduce the non-Federal share to 20 

23 percent of the cost of a project; and 

24 ‘‘(C) waive the local share below that 

25 amount, or entirely, if the unemployment rate 


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1 exceeds 12 percent or otherwise meets the re2 quirements of paragraph (3).’’. 

3 SEC. 6. BUSINESS INCUBATORS. 

4 Title II of the Public Works and Economic Develop5 ment Act of 1965 is amended by inserting after section 

6 207 (42 U.S.C. 3147) the following: 

7 ‘‘SEC. 208. BUSINESS INCUBATORS. 

8 ‘‘(a) DEVELOPMENT OF PLANS FOR CREATION OR

9 EXPANSION OF BUSINESS INCUBATORS.—On receipt of 

10 an application from an eligible recipient (as determined 

11 by the Secretary in accordance with subsection (c)), the 

12 Secretary may provide grants to the eligible recipient 

13 for— 

14 ‘‘(1) the development of feasibility studies and 

15 plans for the creation of new, or expansion of exist16 ing, business incubators; 

17 ‘‘(2) the implementation of those studies and 

18 plans by supporting the creation of new or expansion 

19 of existing business incubators and related pro20 grammatic and technical assistance; and 

21 ‘‘(3) the temporary support of operations of 

22 business incubators, to the extent that the Secretary 

23 determines that the support is essential to assist a 

24 business incubator in becoming self-sustainable. 


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1 ‘‘(b) LIMITATION ON AMOUNT OF GRANTS.—The 

2 amount of a grant provided to an eligible recipient under 

3 this section may not exceed— 

4 ‘‘(1) $750,000, if the grant is to be used for 

5 feasibility studies and plans; or 

6 ‘‘(2) $3,000,000, if the grant is to be used for 

7 implementation of those studies and plans. 

8 ‘‘(c) PROCEDURE FOR PROVIDING GRANTS.— 

9 ‘‘(1) COMPETITIVE PROCESS REQUIRED.—The 

10 Secretary shall provide each grant under this section 

11 to an eligible recipient selected pursuant to a com12 petitive process. 

13 ‘‘(2) SELECTION CRITERIA.—The Secretary 

14 shall publish the criteria to be used in any competi15 tion under this paragraph for the selection of eligible 

16 recipients of grants under this section, including re17 quirements relating to— 

18 ‘‘(A) the projected number of jobs required 

19 to be created at a new or expanded business in20 cubator for each of the first 6 years after the 

21 date of receipt of the grant; 

22 ‘‘(B) the funding to be required to create 

23 or expand a business incubator during the first 

24 5 years after the date of receipt of the grant; 


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1 ‘‘(C) the types of businesses and research 

2 entities expected in the business incubator and 

3 surrounding community; 

4 ‘‘(D) letters of intent by businesses and re5 search entities to establish a location in the 

6 business incubator; 

7 ‘‘(E) the capability to attract a well8 trained workforce to the business incubator; 

9 ‘‘(F) the management of the business incu10 bator; and 

11 ‘‘(G) such other factors as the Secretary 

12 determines to be appropriate. 

13 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— 

14 ‘‘(1) IN GENERAL.—There are authorized to be 

15 appropriated to carry out this section such sums as 

16 are necessary for fiscal year 2010 and each fiscal 

17 year thereafter. 

18 ‘‘(2) AVAILABILITY.—Amounts made available 

19 pursuant to paragraph (1) for a fiscal year shall re20 main available until the end of the second fiscal year 

21 following the fiscal year in which the amounts were 

22 first made available.’’. 

Æ 


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