II 

117TH CONGRESS 

1ST SESSION S. 2631 

To amend the Small Business Act to create a program to provide funding 

for organizations that support startup businesses in formation and early 

growth stages by providing entrepreneurs with resources and services 

to produce viable businesses, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 5, 2021 

Mr. BOOKER (for himself and Ms. HIRONO) introduced the following bill; 

which was read twice and referred to the Committee on Small Business 

and Entrepreneurship 

A BILL 

To amend the Small Business Act to create a program to 

provide funding for organizations that support startup 

businesses in formation and early growth stages by providing entrepreneurs with resources and services to 

produce viable businesses, 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 ‘‘Startup Opportunity 

5 Accelerator Act of 2021’’ or the ‘‘SOAR Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•S 2631 IS

1 (1) startups have contributed greatly to the 

2 United States economy, with research showing that 

3 between 1982 and 2011, businesses 5 years or 

4 younger were responsible for nearly every net new 

5 job created; 

6 (2) startups face common challenges as they 

7 seek to transform their ideas into successful, high8 growth businesses; 

9 (3) 4 metropolitan areas in 3 States—the San 

10 Francisco Bay Area, New York City, Boston, and 

11 Los Angeles—receive nearly 75 percent of all ven12 ture capital investment, which is a critical source of 

13 funding for high-growth startups; 

14 (4) of startups that receive venture capital 

15 funding, 2 percent are African-American-owned, 6 

16 percent are Latino-owned, and only 13 percent are 

17 owned solely by women; 

18 (5) incubators and accelerators are new models 

19 of growth that drive innovation by connecting entre20 preneurial individuals and teams to create viable 

21 business ventures and social initiatives; 

22 (6) incubators and accelerators support prom23 ising startups through partnerships, mentoring, and 

24 resources connecting them with seasoned entre25 preneurs; 


pbinns on DSKJLVW7X2PROD with BILLS
3 

•S 2631 IS

1 (7) the goal of an incubator or an accelerator 

2 is to help create and grow young businesses by pro3 viding them with necessary financial, technical, and 

4 industry support and financial and technical serv5 ices; and 

6 (8) startups offer unique opportunities for 

7 growth and development for women, minority, and 

8 veterans to become successful entrepreneurs and 

9 leaders in new and developed fields. 

10 SEC. 3. GROWTH ACCELERATOR FUND COMPETITION. 

11 The Small Business Act (15 U.S.C. 631 et seq.) is 

12 amended— 

13 (1) by redesignating section 49 (15 U.S.C. 631 

14 note) as section 50; and 

15 (2) by inserting after section 48 the following: 

16 ‘‘SEC. 49. GROWTH ACCELERATOR FUND COMPETITION. 

17 ‘‘(a) DEFINITIONS.—In this section— 

18 ‘‘(1) the term ‘disability’ has the meaning given 

19 the term in section 3 of the Americans with Disabil20 ities Act of 1990 (42 U.S.C. 12102); 

21 ‘‘(2) the term ‘eligible entity’ means an organi22 zation— 

23 ‘‘(A) that is located in the United States; 

24 ‘‘(B) the primary purpose of which is to 

25 support new small business concerns; and 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•S 2631 IS

1 ‘‘(C) that is often classified as a growth 

2 accelerator; 

3 ‘‘(3) the term ‘growth accelerator’ means an or4 ganization that— 

5 ‘‘(A) supports new business concerns with 

6 a focus on technology, research, and develop7 ment; 

8 ‘‘(B) frequently provides, but is not exclu9 sively designed to provide, seed investment in 

10 exchange for a small amount of equity; 

11 ‘‘(C) works with a new business concern 

12 for a predetermined amount of time; 

13 ‘‘(D) provides mentorship and instruction 

14 to scale businesses; or 

15 ‘‘(E) offers startup capital or the oppor16 tunity to raise capital from outside investors; 

17 ‘‘(4) the term ‘minority serving institution’ 

18 means— 

19 ‘‘(A) an institution described in any of 

20 paragraphs (1) through (7) of section 371(a) of 

21 the Higher Education Act of 1965 (20 U.S.C. 

22 1067q(a)); or 

23 ‘‘(B) a junior or community college, as 

24 that term is defined in section 312(f) of the 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•S 2631 IS

1 Higher Education Act of 1965 (20 U.S.C. 

2 1058(f)); 

3 ‘‘(5) the term ‘new small business concern’ 

4 means a small business concern that has been in op5 eration for not more than 5 years; and 

6 ‘‘(6) the term ‘State’ means any State of the 

7 United States, the District of Columbia, the Com8 monwealth of Puerto Rico, and any territory or pos9 session of the United States. 

10 ‘‘(b) FUNDING.— 

11 ‘‘(1) IN GENERAL.—Not later than 1 year after 

12 the date of enactment of this section, the Adminis13 trator shall develop and begin implementing a pro14 gram to award cash grants of not less than 

15 $1,000,000 to eligible entities to support new small 

16 business concerns. 

17 ‘‘(2) USE OF FUNDS.—A grant under this sec18 tion— 

19 ‘‘(A) may be used for construction costs, 

20 space acquisition, and programmatic purposes; 

21 and 

22 ‘‘(B) may not be used to provide capital to 

23 new small business concerns directly or through 

24 the subaward of funds. 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•S 2631 IS

1 ‘‘(3) DISBURSAL OF FUNDS.—In disbursing 

2 funds under this section, the Administrator may use 

3 incremental or scheduled payments. 

4 ‘‘(c) APPLICATION.— 

5 ‘‘(1) IN GENERAL.—An eligible entity desiring a 

6 grant under this section shall demonstrate that the 

7 eligible entity will use the grant to provide assistance 

8 to not less than 10 new small business concerns per 

9 year. 

10 ‘‘(2) REQUIREMENTS.—In soliciting applica11 tions and awarding grants to eligible entities under 

12 this section, the Administrator shall employ a 

13 streamlined and inclusive approach that— 

14 ‘‘(A) widely publicizes funding opportuni15 ties to a broad audience, including through the 

16 use of digital resources such as the website of 

17 the Administration and social media; 

18 ‘‘(B) utilizes an easily accessible submis19 sion process or platform; 

20 ‘‘(C) shall make every effort to minimize— 

21 ‘‘(i) the use of forms, detailed budg22 ets, supporting documentation, or written 

23 submissions; and 

24 ‘‘(ii) any other burdensome require25 ment; 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•S 2631 IS

1 ‘‘(D) focuses on solution-based approaches 

2 and results-based outcomes; 

3 ‘‘(E) encourages innovation; and 

4 ‘‘(F) allows proposals or pitches to be pre5 sented using various formats or media. 

6 ‘‘(d) CRITERIA.—The Administrator shall establish 

7 criteria for a grant under this section that shall give pri8 ority to eligible entities that— 

9 ‘‘(1) are providing or plan to provide to new 

10 small business concerns— 

11 ‘‘(A) office, manufacturing, or warehouse 

12 space, including appropriate operations infra13 structure; 

14 ‘‘(B) access to capital either directly from 

15 the eligible entity (using amounts other than 

16 the amounts provided under the grant) or 

17 through guidance and contacts for acquiring 

18 capital from outside investors; 

19 ‘‘(C) access to professional services either 

20 directly from the eligible entity (using amounts 

21 other than the amounts provided under the 

22 grant) or through guidance and contacts for ac23 quiring professional services, including account24 ing and legal services; or 


pbinns on DSKJLVW7X2PROD with BILLS
8 

•S 2631 IS

1 ‘‘(D) a formal structured mentorship or 

2 developmental program that assists new small 

3 business concerns with building business skills 

4 and competencies; or 

5 ‘‘(2) if located within 20 miles of a minority 

6 serving institution, demonstrates a referral or pro7 grammatic relationship with that institution. 

8 ‘‘(e) CONSIDERATIONS IN CHOOSING RECIPIENTS.— 

9 In determining whether to award a grant under this sec10 tion to an eligible entity, the Administrator shall take into 

11 account— 

12 ‘‘(1) for eligible entities that have in operation 

13 a program to support new small business concerns, 

14 the record of the eligible entity in assisting new 

15 small business concerns, including, for each of the 3 

16 full years before the date on which the eligible entity 

17 applies for a grant under this section— 

18 ‘‘(A) the retention rate of new small busi19 ness concerns in the program of the eligible en20 tity; 

21 ‘‘(B) the average period of participation by 

22 new small business concerns in the program of 

23 the eligible entity; 


pbinns on DSKJLVW7X2PROD with BILLS
9 

•S 2631 IS

1 ‘‘(C) the total, average, and median capital 

2 raised by new small business concerns partici3 pating in the program of the eligible entity; and 

4 ‘‘(D) the total, average, and median num5 ber of employees of new small business concerns 

6 participating in the program of the eligible enti7 ty; 

8 ‘‘(2) for all eligible entities— 

9 ‘‘(A) the number of new small business 

10 concerns assisted or anticipated to be assisted 

11 by the eligible entity; 

12 ‘‘(B) the number of new small business 

13 concerns applying or anticipated to apply for 

14 assistance from the eligible entity; 

15 ‘‘(C) whether the program of the eligible 

16 entity provides or would provide assistance to 

17 individuals in gender, racial, or ethnic groups 

18 underrepresented by existing programs to assist 

19 new small business concerns; and 

20 ‘‘(D) other metrics determined appropriate 

21 by the Administrator; 

22 ‘‘(3) the need in the geographic area to be 

23 served by the program to be carried out using the 

24 grant for additional assistance for new small busiVerDate Sep 11 2014 05:16 Aug 09, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2631.IS S2631

pbinns on DSKJLVW7X2PROD with BILLS
10 

•S 2631 IS

1 ness concerns, if the area has sufficient population 

2 density, as determined by the Administrator; 

3 ‘‘(4) the level of experience of the entrepre4 neurial leadership of the eligible entity; and 

5 ‘‘(5) the ability of the eligible entity to use and 

6 leverage local strengths, including human resources, 

7 infrastructure, and educational institutions. 

8 ‘‘(f) REQUIREMENT TO AWARD GRANTS TO CERTAIN

9 ACCELERATORS.—In order to promote diversity in entre10 preneurship, the Administrator shall award not less than 

11 50 percent of amounts appropriated for grants in a given 

12 fiscal year to— 

13 ‘‘(1) accelerators located in an area described in 

14 subparagraph (A), (B), or (C) of section 31(b); and 

15 ‘‘(2) accelerators for which not less than 50 

16 percent of the small business concerns served by the 

17 accelerator are small business concerns— 

18 ‘‘(A) owned and controlled by socially dis19 advantaged individuals or economically dis20 advantaged individuals, as defined in para21 graphs (5) and (6)(A), respectively, of section 

22 8(a); 

23 ‘‘(B) owned and controlled by women; or 

24 ‘‘(C) that are not less than 51 percent 

25 owned by one or more— 


pbinns on DSKJLVW7X2PROD with BILLS
11 

•S 2631 IS

1 ‘‘(i) Native Americans; 

2 ‘‘(ii) individuals participating in the 

3 Transition Assistance Program of the De4 partment of Defense; 

5 ‘‘(iii) individuals who— 

6 ‘‘(I) served on active duty in any 

7 branch of the Armed Forces, includ8 ing the National Guard and Reserves; 

9 and 

10 ‘‘(II) were discharged or released 

11 from such service under conditions 

12 other than dishonorable; 

13 ‘‘(iv) formerly incarcerated individ14 uals; or 

15 ‘‘(v) individuals with a disability. 

16 ‘‘(g) MATCHING NONPUBLIC FUNDING.—An eligible 

17 entity receiving a grant under this section may obtain 

18 funds from a private individual or entity (including a for19 profit or nonprofit entity) that are— 

20 ‘‘(1) for the same purposes as a grant may be 

21 made under this section; and 

22 ‘‘(2) used to carry out the program of the eligi23 ble entity carried out using the grant under this sec24 tion. 


pbinns on DSKJLVW7X2PROD with BILLS
12 

•S 2631 IS

1 ‘‘(h) CONSEQUENCES OF FAILURE TO ABIDE BY

2 TERMS OR CONDITIONS OF GRANT OR REQUIREMENTS OF

3 THIS SECTION.—The Administrator shall notify each eli4 gible entity receiving a grant under this section that fail5 ure to abide by the terms and conditions of the grant or 

6 the requirements of this section may, in the discretion of 

7 the Administrator and in addition to any other civil or 

8 criminal consequences, result in the Administrator with9 holding payments or ordering the eligible entity to return 

10 the grant funds. 

11 ‘‘(i) ANNUAL PROGRESS REPORTING BY RECIPIENTS

12 OF GRANT.—Each eligible entity receiving a grant under 

13 this section shall submit to the Administrator an annual 

14 report on the progress of the program carried out using 

15 the amounts received under the grant, including— 

16 ‘‘(1) the number of new small business concerns 

17 participating in the program during each of the 3 

18 years preceding the report; 

19 ‘‘(2) the number of new small business concerns 

20 applying to participate in the program during each 

21 of the 3 years preceding the report; 

22 ‘‘(3) the retention rate of new small business 

23 concerns in the program; 

24 ‘‘(4) the average period of participation in the 

25 program by new small business concerns; 


pbinns on DSKJLVW7X2PROD with BILLS
13 

•S 2631 IS

1 ‘‘(5) the total, average, and median capital 

2 raised by new small business concerns participating 

3 in the program; 

4 ‘‘(6) the total, average, and median number of 

5 employees of new small business concerns partici6 pating in the program; 

7 ‘‘(7) the number of new small business con8 cerns— 

9 ‘‘(A) owned and controlled by socially dis10 advantaged individuals or economically dis11 advantaged individuals, as defined in para12 graphs (5) and (6)(A), respectively, of section 

13 8(a); 

14 ‘‘(B) owned and controlled by women; or 

15 ‘‘(C) that are not less than 51 percent 

16 owned by one or more— 

17 ‘‘(i) Native Americans; 

18 ‘‘(ii) individuals participating in the 

19 Transition Assistance Program of the De20 partment of Defense; 

21 ‘‘(iii) individuals who— 

22 ‘‘(I) served on active duty in any 

23 branch of the Armed Forces, includ24 ing the National Guard and Reserves; 

25 and 


pbinns on DSKJLVW7X2PROD with BILLS
14 

•S 2631 IS

1 ‘‘(II) were discharged or released 

2 from such service under conditions 

3 other than dishonorable; 

4 ‘‘(iv) formerly incarcerated individ5 uals; or 

6 ‘‘(v) individuals with a disability; and 

7 ‘‘(8) other metrics determined appropriate by 

8 the Administrator. 

9 ‘‘(j) REPORTS TO CONGRESS.—The Administrator 

10 shall submit to Congress an annual report on the program 

11 under this section, which shall include an assessment of 

12 the effectiveness of the program, including an assessment 

13 based on the metrics listed in subsection (i). 

14 ‘‘(k) COORDINATION WITH OTHER SMALL BUSINESS

15 ADMINISTRATION PROGRAMS.—The Administrator shall 

16 take appropriate action to encourage eligible entities re17 ceiving a grant under this section to use and incorporate 

18 other programs of the Administration, such as small busi19 ness development centers, small business investment com20 panies, loans under section 7(a), assistance under title V 

21 of the Small Business Investment Act of 1958 (15 U.S.C. 

22 695 et seq.), and resource partners of the Administration, 

23 including women’s business centers and veteran’s business 

24 outreach centers. 


pbinns on DSKJLVW7X2PROD with BILLS
15 

•S 2631 IS

1 ‘‘(l) COORDINATION WITH THE DEPARTMENT OF

2 VETERANS AFFAIRS.—In consultation with the Secretary 

3 of Veteran Affairs, the Administrator shall make available 

4 outreach materials regarding the opportunities for vet5 erans within the program under this section for distribu6 tion and display at local facilities of the Department of 

7 Veterans Affairs. 

8 ‘‘(m) LISTING ON WEBSITE.—The Administrator 

9 shall include a list of eligible entities receiving a grant 

10 under this section on the website of the Administration. 

11 ‘‘(n) AUTHORIZATION OF APPROPRIATIONS.—There 

12 is authorized to be appropriated to the Administration 

13 $800,000,000, to remain available until expended, to carry 

14 out this section.’’. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS