Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Rules and Regulations 50251 

ACE IA E5 Sac City, IA [Amended] 

Sac City Municipal Airport, IA 

(Lat. 42°22′45′′ N, long. 94°58′47′′ W) 

That airspace extending upward from 700 

feet above the surface within a 6.4-mile 

radius of Sac City Municipal Airport. 

Issued in Fort Worth, Texas, on September 

1, 2021. 

Martin A. Skinner, 

Manager, Operations Support Group, ATO 

Central Service Center. 

[FR Doc. 2021–19277 Filed 9–7–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE INTERIOR 

25 CFR Part 1187 

[212A2100DD/AAKC001030/ 

A0A501010.999900] 

RIN 1076–AF63 

Indian Business Incubators Program 

AGENCY: Office of the Assistant 

Secretary, Indian Affairs, Interior. 

ACTION: Final rule. 

SUMMARY: The Office of Indian 

Economic Development (OIED) is 

finalizing a new regulation to 

implement the Native American 

Business Incubators Program Act. The 

Indian Business Incubators Program 

(IBIP), also known as the Native 

American Business Incubators Program, 

is a program in which OIED provides 

competitive grants to eligible applicants 

to establish and operate business 

incubators that serve Tribal reservation 

communities. These regulations 

establish who is eligible for the 

program, how to apply, how OIED will 

evaluate applications and make awards, 

and how OIED will administer the 

program. 

DATES: This rule is effective on 

September 8, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Appel, Office of Regulatory 

Affairs & Collaborative Action, Bureau 

of Indian Affairs, telephone (202) 273– 

4680, elizabeth.appel@bia.gov. 

SUPPLEMENTARY INFORMATION: 

I. Statutory Authority 

II. Need for This Rulemaking 

III. Overview of Rule 

IV. Responses to Comments 

A. Comments on Subpart A (General 

Provisions and Eligibility) 

1. Objective of IBIP 

2. Eligibility 

B. Comments on Subpart B (Applying for 

a Grant) 

C. Comments on Subpart C (Evaluation of 

Grant Applications) 

1. Evaluation Criteria 

2. Physical Location of Incubator 

D. Comments on Subpart D (Grant Awards) 

E. Comments on Subpart E (Grant Terms 

and Conditions) 

1. Renewals 

2. Use of Grant Funds 

3. Waiver of Requirement for Non-Federal 

Contribution 

4. Minimum Requirements Awardees Must 

Meet 

5. Reports 

F. Comments on Subpart F (Grant 

Administration) 

1. Evaluation of Grantee Performance 

2. Coordination With Other Federal 

Agencies 

3. Funding 

G. Miscellaneous Comments 

V. Procedural Requirements 

A. Regulatory Planning and Review (E.O. 

12866, 13563, and 13771) 

B. Regulatory Flexibility Act 

C. Small Business Regulatory Enforcement 

and Fairness Act 

D. Unfunded Mandates Reform Act of 1995 

E. Takings (E.O. 12630) 

F. Federalism (E.O. 13132) 

G. Civil Justice Reform (E.O. 12988) 

H. Paperwork Reduction Act 

I. National Environmental Policy Act 

(NEPA) 

J. Consultation With Indian Tribes (E.O. 

13175) 

K. Energy Effects (E.O. 13211) 

L. Determination To Issue Final Rule With 

Immediate Effective Date 

I. Statutory Authority 

OIED is issuing this rule under the 

authority of the Native American 

Business Incubators Program Act, Public 

Law 116–174. 

II. Need for This Rulemaking 

On October 20, 2020, Congress 

enacted the Native American Business 

Incubators Program Act, Public Law 

116–174, codified at 25 U.S.C. 5801 et 

seq. In the Act, Congress established the 

Native American Business Incubators 

Program and required the Secretary of 

the Interior to promulgate regulations to 

implement the program. See 25 U.S.C. 

5804. 

Congress found that the Native 

American Business Incubators Program 

is necessary because, in addition to the 

challenges all entrepreneurs face when 

transforming ideas into profitable 

business enterprises, entrepreneurs face 

an additional set of challenges that 

requires special knowledge when they 

want to provide products and services 

in Tribal reservation communities. 

Congress further found that the business 

incubator model is suited to accelerating 

entrepreneurship (and ultimately, 

economic development) in Tribal 

reservation communities. Business 

incubators help start-up and early-stage 

businesses by offering the business 

owners a range of services, such as: 

Mentorships, networking, technical 

assistance, and access to investors. 

Through these services, incubators 

promote collaboration to address 

challenges and provide individually 

tailored services to overcome the 

obstacles that are unique to each 

participating business. 

III. Overview of Rule 

This rule establishes the IBIP in 

accordance with the Native American 

Business Incubators Program Act. This 

regulation names the program IBIP, 

rather than the Native American 

Business Incubators Program, to avoid 

use of the acronym ‘‘NABIP,’’ which 

would likely cause confusion due to its 

similarity to at least one other grant 

program acronym related to Native 

American businesses. 

Through the IBIP, OIED will provide 

competitive grants to eligible applicants 

to establish and operate business 

incubators that serve entrepreneurs 

(start-up and early-stage businesses) 

who will provide products or services to 

Tribal reservation communities. A 

business incubator is an organization 

that assists entrepreneurs in becoming 

viable businesses by providing advice 

and services to entrepreneurs to 

navigate obstacles in transforming their 

innovative ideas into operational 

businesses. Examples of services that a 

business incubator may provide are 

workspace and facilities, advice on how 

to access capital, business education, 

counseling, and networking and 

mentorship opportunities. Indian 

Affairs does not currently have any 

regulations in place that provide for a 

grant program for Indian business 

incubators. The rule being finalized 

today will provide the framework for 

operation of the grant program so that 

there is certainty as to who is eligible for 

a grant, how eligible applicants can 

apply for a grant, how OIED will 

evaluate, award, and administer the 

grants, and what terms and conditions 

will apply to the grants. This rule will 

enable OIED to provide grants that will 

stimulate economic development in 

reservation communities. 

The rule consists of six subparts, each 

of which is described below. 

• Subpart A—General Provisions and 

Eligibility: Defines terms defined in the 

statute consistent with the statutory 

definitions, replacing citations with 

restatements of the provisions cited 

where appropriate, and adds a new term 

for ‘‘IBIP’’ in lieu of ‘‘Native American 

Business Incubator Program (NABIP)’’ to 

avoid confusion because the acronym 

‘‘NABIP’’ is similar to other grant 

programs. This subpart also describes 

who is eligible to receive an IBIP grant, 

to include the following entities that 


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50252 Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Rules and Regulations 

meet certain additional requirements set 

out in § 1187.3: 

Æ Tribes; 

Æ Tribal colleges and universities; 

Æ Institutions of higher education; 

and 

Æ Tribal or private nonprofit 

organizations that provide business and 

financial technical assistance. 

• Subpart B—Applying for a Grant: 

Describes how an eligible applicant 

applies for a grant, adding the 

specificity that applications must be 

submitted through www.grants.gov. This 

subpart also includes the statutory 

requirements for what must be included 

in an application and written site 

proposal, and how to submit a joint 

application. The regulations add that 

joint applications must identify which 

of the entities submitting the joint 

application will be the lead contact for 

the purposes of grant management. 

• Subpart C—Evaluation of Grant 

Applications: Describes the criteria 

OIED will use to evaluate each IBIP 

grant application, adding the specific 

time period of three months to the 

statutory requirement that the grantee 

must commence services within a 

minimum period of time to be 

determined by the Secretary. This 

subpart also adds a new criterion to the 

statutory criteria for evaluation: The 

extent to which a grant award will 

enable an entity that is already 

providing business incubation services 

to appreciably enhance those services. 

OIED added this criterion in order to 

ensure that the grant is funding new 

incubation services, such that there is a 

return for the investment made in the 

incubator, rather than merely paying 

existing incubators for services they 

would have otherwise provided. 

• Subpart D—Grant Awards: 

Describes how OIED will disburse grant 

funds to awardees according to the 

statute. This subpart also includes the 

statutory prohibition on awarding an 

IBIP grant that duplicates other Federal 

funding, but adds a clarification that 

duplicative funding means any funding 

from other Federal grants that would 

overlap with the IBIP grant for the same 

activities described in the applicant’s 

IBIP proposal. 

• Subpart E—Grant Term and 

Conditions: Establishes an initial grant 

term of three years, with the 

opportunity to renew for one additional 

three-year term if certain conditions are 

met, in accordance with the statute. 

This subpart also lists the purposes for 

which awardees may use the grant 

funds, requires awardees to provide 

non-Federal contributions in an amount 

at least 25 percent of the grant unless 

the conditions for waiver of that 

requirement are met, lists the minimum 

requirements awardees must meet in 

providing incubation services, and 

requires the awardee to submit a report 

at the end of the grant year that 

provides, among other things, a detailed 

breakdown of the Native businesses and 

Native entrepreneurs the incubator 

helped establish or serve. These items 

are all statutory but are included in the 

regulation to assist readers in finding all 

relevant IBIP grant information in one 

location. 

• Subpart F—OIED Grant 

Administration: Provides that OIED will 

conduct an annual evaluation of each 

IBIP awardee’s success, facilitate 

relationships between awardees and 

educational institutions serving Native 

American communities, and collaborate 

with other Federal agencies that 

administer business and entrepreneurial 

programs. These items are also all 

statutory but are included in the 

regulation to assist readers in finding all 

relevant IBIP grant information in one 

location. 

Note: The final rule replaces 

references to the Office of Indian Energy 

and Economic Development (IEED) with 

the Office of Indian Economic 

Development (OIED) to reflect the 

organizational change that moved the 

Division of Energy and Minerals 

Development from OIED to the Bureau 

of Indian Affairs Office of Trust 

Services. 

IV. Responses to Comments on the 

Proposed Rule 

On April 13, 2021, OIED published a 

proposed rule to implement the IBIP. 

See 86 FR 19162. During the public 

comment period, OIED hosted two 

Tribal consultation sessions by webinar 

on May 12, 2021, and May 13, 2021, to 

discuss the proposed rule. On May 12, 

2021, representatives of 33 Tribes 

participated and on May 13, 2021, 

representatives of 14 Tribes 

participated. Comments on the 

proposed rule were accepted until June 

14, 2021. OIED received a total of 11 

written comment submissions on the 

proposed rule, including three from 

Tribes, two from Tribal and Indian 

organizations, five from organizations 

including four financial organizations, 

and one from an individual. Several 

commenters expressed support for both 

the legislation and regulation. No 

changes to the proposed regulatory text 

were made as a result of the 

consultation or public comments, but 

OIED responds to the comments as 

follows. 

A. Comments on Subpart A (General 

Provisions and Eligibility) 

1. Objective of IBIP 

One Tribe and one economic 

development organization stated that 

the provision at § 1187.1(b), providing 

that the incubator will assist businesses 

to offer products and services to 

reservation communities, is too narrow 

because the objective of the IBIP should 

be to mentor and grow Native-owned 

businesses regardless of their potential 

market. 

Response: The Act establishes the 

IBIP for the establishment and operation 

of business incubators that ‘‘serve 

reservation communities’’ by providing 

business incubation and other business 

services to Native businesses and Native 

entrepreneurs. See 25 U.S.C. 5803(a). 

The Act also requires an applicant 

incubator to describe one or more 

reservation communities it will serve. 

See 25 U.S.C. 5803(c)(1)(B). For these 

reasons, the regulation reflects that the 

incubator will offer products and 

services to reservation communities. 

Incubators must serve businesses in 

reservation communities, but those 

businesses may have markets that 

extend beyond reservation communities 

and the benefits of the IBIP will be 

broader than reservation communities. 

2. Eligibility 

One organization commented on the 

requirement at § 1187.3(b)(4)(i) for a 

nonprofit to have been operational for 

not less than one year before receiving 

a grant. This commenter stated one year 

is insufficient and recommended at least 

three years. 

Response: The one-year requirement 

is statutory and cannot be changed by 

regulation. See 25 U.S.C. 5803(b)(1)(C). 

A privately held corporation 

commented that it should be eligible for 

the IBIP, but that the regulation limits 

eligibility of organizations to Tribal or 

private nonprofit organizations. 

Response: Eligibility for the IBIP is 

established by statute and cannot be 

changed by regulation. See 25 U.S.C. 

5803(b) (limiting eligible entities to the 

following four categories: (i) An Indian 

Tribe; (ii) a Tribal college or university; 

(iii) an institution of higher education; 

or (iv) a private nonprofit organization 

or Tribal nonprofit organization.) 

Two commenters requested the 

regulation specifically list as eligible 

entities Native Community 

Development Financial Institutions 

(CDFIs) and Tribally chartered nonprofit 

organizations authorized by Internal 

Revenue Code 7871. One commenter 

stated that Native CDFIs fit the category 

of Tribal or private nonprofit 


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organizations providing business and 

financial technical assistance. 

Response: The applicant will need to 

demonstrate in its application that it 

meets the eligibility criteria in one of 

the four categories defined in the statute 

and regulation. At that time, the 

applicant can articulate why a particular 

entity, such as Native CDFIs or Tribally 

chartered non-profits, meets those 

qualifications. 

One Tribe recommended that a 

preference or priority be granted to 

Tribes, Tribal colleges and universities, 

and Tribal non-profit organizations. 

Similarly, several other commenters 

stated that Native-led entities should be 

awarded IBIP grants over non-Native 

entities. 

Response: The statute defines the 

categories of eligible entities to include 

institutions of higher education and 

private nonprofit organizations, which 

may or may not be Native led. See 25 

U.S.C. 5803(b). 

One commenter recommended that, if 

the final rule includes non-Native 

entities as eligible, then additional 

criteria should be added to application 

evaluations to ensure the funding 

benefits Native communities. 

Response: Congress established the 

eligibility requirements and evaluation 

criteria, and adding the requested 

requirements goes beyond our statutory 

authority; however, the evaluation 

criteria directs the Department to review 

whether the awardee will benefit Native 

American businesses and entrepreneurs. 

B. Comments on Subpart B (Applying 

for a Grant) 

A Tribe asked for clarification on 

whether in-kind support such as 

existing personnel or free use of existing 

office space to run the incubator counts 

toward the non-Federal contribution 

requirement. Another commenter 

requested examples of whether certain 

types of in-kind contributions and inkind services would count toward the 

non-Federal contribution requirement, 

requesting at a minimum that the value 

of in-kind donation of incubator space 

and donated services to support the 

incubator or incubated businesses be 

included. 

Response: The regulation requires 

applicants to describe in their 

applications their non-Federal 

contributions in an amount equal to not 

less than 25 percent of the grant amount 

requested. See § 1187.11(e). Non-Federal 

contributions may include donated 

space as measured by the value of rent, 

so that the applicant can use IBIP 

funding they receive for other purposes. 

Payroll for personnel working on the 

incubator who are not funded by IBIP 

funding may be allowable non-Federal 

contributions. The Notice of Funding 

Opportunity (NOFO) will provide more 

examples of allowable non-Federal 

contributions. 

One commenter asked whether the 

non-Federal contribution has to be in 

hand as of the date of the application. 

Response: The applicant must provide 

a commitment for the non-Federal 

contribution in the application, but does 

not have to have the contribution in 

hand on the date of the application. The 

applicant could rely on projected 

earnings, for example. 

C. Comments on Subpart C (Evaluation 

of Grant Applications) 

1. Evaluation Criteria 

One Tribe commented that a Tribe’s 

experience should be considered but 

additional points should not be given to 

Tribes that currently operate a business 

incubator because Tribes, both large and 

small, should not be at a disadvantage 

when competing for funding against 

currently operational applicants. 

Response: The Department shares the 

goal of ensuring that both large and 

small Tribes benefit from the incubator 

program. Experience may help an 

applicant because applicants are 

required to commence providing 

services within three months under 

§ 1187.20, but the NOFO will further 

clarify how applications will be ranked. 

Two commenters stated that, when 

evaluating applications, OIED should 

consider metrics beyond financial 

impacts, such as services that enhance 

community well-being, to measure 

success. Another commenter stated that 

criteria should be based on success with 

clients, customer references, and 

completion of a viable product. 

Response: Applicants will be 

requested to provide the milestones and 

outcomes of their project demonstrating 

to the Secretary the successful outcomes 

of the grant. 

A Tribal organization commenter 

stated that IBIP funds should be 

awarded in a manner that equitably 

distributes funds to be regionally 

representative of Indian Country, and 

ensure that regionally focused programs 

are not precluded. 

Response: OIED will be considering 

regional representation across Indian 

Country as part of the selection process. 

Details will be provided in the NOFO. 

A Tribal organization commenter 

stated that OIED should consider 

socioeconomic factors, such as the size 

and location of eligible applicants, in 

awarding IBIP funds to ensure that 

Tribal nations with a small population 

or small land base have an opportunity 

to participate and benefit from the 

program. 

Response: Each applicant will have to 

demonstrate that they are serving a 

diverse population and include 

justifications around socioeconomic 

factors and considerations related to 

size and location. For example, the 

evaluation criteria include a criterion 

for the ability of the eligible applicant 

to provide services at geographically 

remote locations where quality business 

guidance and counseling is difficult to 

obtain). See § 1187.20(a)(3). 

One commenter asked what 

‘‘significant’’ means in the context of the 

criterion at § 1187.20(a)(3) for the ability 

of the eligible applicant to provide 

quality incubation services to a 

significant number of Native businesses 

or Native entrepreneurs (or provide 

such services at geographically remote 

locations where quality business 

guidance and counseling is difficult to 

obtain). 

Response: The significance of the 

number of Native businesses or Native 

entrepreneurs will be driven by the 

applicant’s proposal and justification of 

how many Native businesses and Native 

entrepreneurs they intend to serve with 

the amount of funding requested. 

2. Physical Location of Incubator 

A Tribal organization commenter 

stated that Tribal nations should be able 

to decide whether to incubate only 

those businesses within their 

jurisdictional boundaries or incubate 

Native entrepreneurs located away from 

their Tribal homelands. 

Response: Applicants have flexibility 

in demonstrating who they will serve as 

long as they serve one or more 

reservation communities (regardless of 

whether those communities are near 

their own Tribe’s homelands) and 

demonstrate that they have a 

competitive process for selecting Native 

businesses and Native entrepreneurs to 

participate in the business incubator. 

See §§ 1187.3(b)(4) and 1187.44(a)(2). 

A Tribe urged OIED to recognize that 

transportation issues in Indian Country 

are significant and that, unless 

incubation services are within 

reservation boundaries or walking 

distance of a reservation, many Native 

businesses will have difficulty accessing 

the services. This Tribe recommended 

adding the word ‘‘significant’’ to the 

requirement to give priority to eligible 

applicants that will provide business 

incubation services on or near 

reservation communities. 

Response: OIED is aware of the 

substantial transportation challenges in 

Indian Country and expects that 

proposals will provide options to 


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address those barriers. The final rule 

does not add the word ‘‘significant’’ 

because priority will necessarily be 

significant, given that this is the only 

criterion granted priority. 

A Tribal organization commenter 

stated that OIED should waive the 

requirement for program funds be used 

to provide physical workplace due to 

the COVID–19 pandemic and to support 

applicant use of IBIP funds to provide 

incubator services to Native businesses 

that cannot access the incubator’s 

physical location due to remoteness, 

pandemic restrictions, and other 

barriers identified by Tribes and Tribal 

applicants. 

Response: The requirement for the 

incubator to provide physical space is 

statutory, so it cannot be waived. See 25 

U.S.C. 5803(b)(1)(B), (c)(1)(E). 

A Tribe stated that, in conducting the 

site evaluation, OIED should refrain 

from imposing requirements for 

dedicated office space for each business 

and instead allow flexibility for coworking space or ‘‘hotel’’ style offices to 

allow the incubator to serve the largest 

number of participants. 

Response: The incubator must be able 

to offer physical space to its 

participating businesses, but there is 

flexibility in how the incubator delivers 

services to the businesses. 

One commenter stated that only 

applicants with existing workspace can 

apply but that OIED should allow 

funding to be used to construct and 

remodel space for small businesses. 

Response: The regulation provides 

that the applicant does not have to be 

in possession of the proposed site at the 

time of the application. See 

§§ 1187.11(f) and 1187.12. 

D. Comments on Subpart D (Grant 

Awards) 

One commenter noted that § 1187.30 

provides that grant funds will be in 

annual installments but may be more 

frequently (as long as not more than 

quarterly), and noted that in their 

experience an annual disbursement is 

preferable. 

Response: OIED intends to make 

annual disbursements unless otherwise 

requested by the applicant, as stated in 

the rule. 

E. Comments on Subpart E (Grant Term 

and Conditions) 

1. Renewals 

A commenter suggested that the 

regulation should measure an 

incubator’s performance as compared 

with other small businesses across the 

country and outside the IBIP to ensure 

the incubators are providing enough 

resources before renewing the grant. 

Response: The regulation (at 

§ 1187.41(a)(2)) provides that OIED will 

measure the performance of the 

awardee’s business incubator, as 

compared to the performance of other 

business incubators receiving grants 

under the IBIP, because this is a 

statutory requirement. See 25 U.S.C. 

5803(d)(4). 

A Tribe recommended OIED also 

assess, in determining whether to 

renew, whether the incubator model 

continues to be beneficial to the Tribe 

and to the businesses. 

Response: OIED will conduct annual 

evaluations to measure successful 

outcomes of the grant based on the 

milestones and outcomes for the project 

the incubator included in their 

application. See § 1187.50. OIED will 

consider the results of the annual 

evaluation in determining whether to 

renew a grant award. See 

§ 1187.41(a)(1). 

A commenter stated that the 

regulation should include benchmarks 

to measure incubators’ success and 

suggested imposing additional 

requirements such as requiring 

incubators to invest in community 

cohesion, leverage their development to 

secure funding from State and local 

governments, reallocate a portion of the 

grant money toward investments with 

return equity, and make increased 

visibility in public and private sectors 

and goal to attract potential investors. 

Response: Applicants will be 

requested to provide the milestones and 

outcomes of their project demonstrating 

to the Secretary the successful outcomes 

of the grant. 

2. Use of Grant Funds 

A Tribe recommended that an 

allowable use of grant funds be for 

staffing purposes. 

Response: Use of grant funds may 

include staffing. See 25 U.S.C. 

5803(e)(2)(D). Applicants will describe 

their costs within their proposed 

budget. 

A commenter welcomed the 

flexibility of allowing grant funds to be 

used for appropriate uses typically 

associated with business incubators and 

suggested acceptable uses of grant funds 

should include revolving loan funds, job 

creation, and technology 

commercialization, among other uses. 

Response: The applicant will define 

in the proposal how the grant funds will 

be used and what services and 

approaches it will take. 

3. Waiver of Requirement for NonFederal Contribution 

One Tribe suggested eliminating the 

requirement for non-Federal 

contributions and one stated that the 

waiver authority must be construed 

broadly because of the impact on Tribes 

of the COVID–19 pandemic causing 

significant economic losses. A Tribal 

organization also requested OIED 

consider a broader waiver of the nonFederal contribution requirement and 

another commenter supported providing 

a blanket waiver for the first round of 

awarded IBIP grants. 

Response: OIED will continue to 

require the non-Federal contribution as 

required in the statute; however, OIED 

recognizes the difficulties Tribes have 

encountered during the pandemic and 

waiver decisions will be considered in 

accordance with its waiver authority 

based on the criteria in § 1187.43. 

A commenter encouraged OIED to 

allow applicants to request waivers in 

advance of the grant application 

deadline for IBIP. 

Response: The statutory criteria for 

waiving the non-Federal contribution 

include that the incubator will provide 

quality business incubation services and 

that one or more reservation 

communities to be served are unlikely 

to receive similar services—these are 

both determinations that OIED cannot 

make until it reviews the full 

application. See 25 U.S.C. 5803(d)(3)(B). 

Two commenters recommended 

clarifying that applicants’ requests for 

waivers will not negatively impact 

evaluation of their grant applications. 

Response: OIED understands the 

difficulty in obtaining non-Federal 

contributions and will clarify in the 

NOFO whether non-Federal 

contributions will be included in the 

ranking criteria. 

4. Minimum Requirements Awardees 

Must Meet 

A Tribe stated that Tribes should have 

broad discretion in structuring the 

competitive process by which 

participants are selected to participate 

in the incubator. 

Response: The applicant defines what 

their competitive process will be under 

§ 1187.44(a)(2). 

A Tribe stated that, in the requirement 

for applicants to provide 

entrepreneurship and business skills 

training and education to Native 

businesses and Native entrepreneurs, 

the list of training and education topics 

in the curriculum should be introduced 

by ‘‘including but not limited to’’ and 

list an overview of legal issues 

including choice of entity and legal 

structures, and an overview of Federal 

small business lending and contracting 

programs. 

Response: The applicant defines in 

their application what their curriculum 


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will include, so no change to the 

regulation is necessary. 

A Tribe stated that the requirement 

for the incubator to provide access to 

investors should include a ‘‘best efforts’’ 

qualifier because the barriers in 

accessing capital in Indian Country are 

well documented. 

Response: The applicant defines in 

their application what their best efforts 

will include, so no change to the 

regulation is necessary. 

A Tribe stated that it is not unusual 

for for-profit business incubators to 

make a nominal investment in a 

business in exchange for equity in that 

business, accomplishing the dual goals 

of providing the new business with 

startup capital and help the program 

become self-sustaining. The Tribe 

requested clarification on whether such 

investments by business incubators 

participating in IBIP would be 

permissible. 

Response: The IBIP is not structured 

in a way that would allow the business 

incubator to obtain return equity from 

its participating businesses. Incubators 

may, however, request that successful 

business participants give back to the 

program by mentoring and sharing best 

practices with other businesses. 

5. Reports 

A Tribe recommended that the 

regulation also require awardees to 

submit reports detailing capital 

investments and revenue growth. 

Response: The grantee is free to share 

information detailing capital 

investments and revenue growth in its 

report, but the rule does not require this 

information in the reports. Instead, the 

required annual report focuses on the 

number of Native businesses and 

entrepreneurs the incubator assists and 

their performance while participating 

and after graduation or departure from 

the incubator. 

A commenter stated that the 

requirement for reporting business 

performance could be a deterrent for 

small business startups who are wary of 

making financial disclosures, so other 

metrics such as number of new 

employees or customers should be used 

instead. 

Response: Financial oversight will 

consist of Federal reporting toward the 

grant funding only. The applicant will 

be able to specify how they are going to 

oversee the incubator activities and 

justify use of the grant funding and can 

craft those metrics to avoid revealing 

any financial disclosures that it believes 

will deter Native businesses and 

entrepreneurs from participating in the 

incubator. 

F. Comments on Subpart F (Grant 

Administration) 

1. Evaluation of Awardee Performance 

A Tribe stated the requirement for 

awardees to become operational should 

become operational should be 

lengthened from 3 months to allow 

awardees at least 6 months. 

Response: When determining the 

allowable ‘‘start-up’’ timeframe for 

grantees, OIED also considers the total 

time available to implement the 

activities under the grant. Since these 

are only one-year grants, allowing a 

6-month ‘‘start-up’’ timeframe would 

leave only 6 months for 

implementation. For that reason, the 

final rule retains the 3-month timeframe 

for the grantee to commence providing 

services. 

Two commenters stated their 

appreciation that the regulation does not 

include a requirement that businesses 

graduate from incubator programs 

within a certain period of time. 

Response: The applicant decides 

when participant businesses graduate 

from their program. (The incubator 

awardee itself receives funding for 3 

years with one potential renewal.) 

2. Coordination With Other Federal 

Agencies 

A Tribe noted that one of the greatest 

problems facing economic development 

in Indian Country is the lack of practical 

broadband access and urged adding to 

the regulation that the named federal 

Departments and agencies be required to 

provide broadband support to the 

maximum extent practicable. 

Response: The requested additional 

language was not included in the final 

regulation because that language is not 

clearly authorized by the statute; 

however, OIED will actively engage 

with our Federal partners to continue to 

improve broadband in Indian Country. 

See 25 U.S.C. 5806. 

3. Funding 

Several commenters requested that 

additional funding be appropriated to 

this program. 

Response: OIED relies upon Congress 

for annual appropriations for the IBIP. 

G. Miscellaneous Comments 

A Tribe requested OIED consider the 

unique sovereign status of Tribes and 

unique issues Tribes and Tribal 

members face when attempting to obtain 

conventional financing in Indian 

Country. Another commenter also noted 

that Native American businesses and 

entrepreneurship will differ in practice 

and view across Tribal communities. 

Another commenter provided statistics 

on the percentage of minority small 

business owners and stated that Native 

American businesses account for the 

smallest number of minority-owned 

firms. 

Response: OIED recognizes the 

challenges of conventional financing in 

Indian Country. Congress also found in 

creating the IBIP that all entrepreneurs 

face challenges when transforming ideas 

into businesses, and entrepreneurs that 

want to provide services to reservation 

communities face additional barriers. 

The IBIP is intended to help address 

these challenges and includes, as a 

minimum requirement, that IBIP 

awardees offer culturally tailored 

incubation services to Native businesses 

and Native entrepreneurs. See 25 U.S.C. 

5803(e)(2)(A) and § 1187.44(a)(1). 

A commenter stated that OIED should 

commit to making information about 

IBIP applications, grant awards, and the 

impact of IBIP funding available 

publicly. This commenter stated that the 

information would be valuable for 

documenting demand for the program, 

understanding the program’s reach and 

impact across Native communities and 

contexts, and raising the visibility of 

grant recipients. 

Response: Disclosure of grant 

applications and reports are limited by 

Privacy Act and Freedom of Information 

Act (FOIA) exemptions, but OIED plans 

to share grant awards and success 

stories while complying with Privacy 

Act restrictions and FOIA exemptions. 

A non-Tribal commenter urged OIED 

to prioritize feedback from Tribes and 

Native-led organizations in the 

rulemaking process. 

Response: OIED hosted governmentto-government consultation with Tribes 

during preparation of this final rule and 

considered Tribes’ input accordingly. 

V. Procedural Requirements 

A. Regulatory Planning and Review 

(E.O. 12866, 13563) 

Executive Order (E.O.) 12866 provides 

that the Office of Information and 

Regulatory Affairs (OIRA) at the Office 

of Management and Budget (OMB) will 

review all significant rules. OIRA has 

determined that this rule is not 

significant. 

E.O. 13563 reaffirms the principles of 

E.O. 12866 while calling for 

improvements in the Nation’s regulatory 

system to promote predictability, to 

reduce uncertainty, and to use the best, 

most innovative, and least burdensome 

tools for achieving regulatory ends. The 

E.O. directs agencies to consider 

regulatory approaches that reduce 

burdens and maintain flexibility and 

freedom of choice for the public where 


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these approaches are relevant, feasible, 

and consistent with regulatory 

objectives. E.O. 13563 emphasizes 

further that regulations must be based 

on the best available science and that 

the rulemaking process must allow for 

public participation and an open 

exchange of ideas. We have developed 

this rule in a manner consistent with 

these requirements. 

B. The Regulatory Flexibility Act 

The Department of the Interior 

certifies that this rule will not have a 

significant economic effect on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.). This rule establishes 

a program to provide grants for business 

incubators, some of which may be small 

entities, but the $5 million in total 

annual appropriations is not expected to 

reach the threshold of having a 

significant economic effect on a 

substantial number of small entities. 

C. Small Business Regulatory 

Enforcement Fairness Act of 1996 

This rule is not a major rule under 5 

U.S.C. 804(2), the Small Business 

Regulatory Enforcement Fairness Act. 

Because this rule establishes a program 

supported by $5 million in annual 

appropriations this rule: 

(a) Does not have an annual effect on 

the economy of $100 million or more. 

(b) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions. 

(c) Does not have significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

the ability of U.S.-based enterprises to 

compete with foreign-based enterprises. 

D. Unfunded Mandates Reform Act of 

1995 

This rule does not impose an 

unfunded mandate on State, local, or 

Tribal governments or the private sector 

of more than $100 million per year. The 

rule does not have a monetarily 

significant or unique effect on State, 

local, or Tribal governments or the 

private sector. This rule would establish 

a program to provide grants to certain 

business incubators that will serve 

Tribal communities. A statement 

containing the information required by 

the Unfunded Mandates Reform Act (2 

U.S.C. 1531 et seq.) is not required. 

E. Takings (E.O. 12630) 

This rule does not affect a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630 because this rule does not 

affect individual property rights 

protected by the Fifth Amendment or 

involve a compensable ‘‘taking.’’ A 

takings implication assessment is not 

required. 

F. Federalism (E.O. 13132) 

Under the criteria in section 1 of 

Executive Order 13132, this rule does 

not have sufficient federalism 

implications to warrant the preparation 

of a federalism summary impact 

statement. A federalism summary 

impact statement is not required. 

G. Civil Justice Reform (E.O. 12988) 

This rule complies with the 

requirements of Executive Order 12988. 

Specifically, this rule: (a) Meets the 

criteria of section 3(a) requiring that all 

regulations be reviewed to eliminate 

errors and ambiguity and be written to 

minimize litigation; and (b) Meets the 

criteria of section 3(b)(2) requiring that 

all regulations be written in clear 

language and contain clear legal 

standards. 

H. Consultation With Indian Tribes 

(E.O. 13175) 

The Department of the Interior strives 

to strengthen its government-togovernment relationship with Indian 

Tribes through a commitment to 

consultation with Indian Tribes and 

recognition of their right to selfgovernance and Tribal sovereignty. We 

have evaluated this rule under the 

Department’s consultation policy and 

under the criteria in Executive Order 

13175 and have determined that it has 

substantial direct effects on federally 

recognized Indian Tribes because the 

rule requires early Tribal involvement 

in the design of a process that will have 

significant impact on one or more 

recognized Tribes. OIED conducted 

Tribal consultation sessions by webinar 

on May 12 and 13 for input on the 

proposed rule. Responses to comments 

received from Tribes are included in the 

Responses to Comments section, above. 

I. Paperwork Reduction Act 

This rule contains new information 

collections. All information collections 

require approval under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). We may not conduct or sponsor 

and you are not required to respond to 

a collection of information unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. The Department is seeking 

approval of a new information 

collection, as follows. 

Brief Description of Collection: This 

information collection includes items 

that an applicant must include in an 

application for an Indian Business 

Incubator Program (IBIP) grant and that 

IBIP awardees must include in the 

annual report. Applicant contents 

include such items as a description of 

the reservation communities the 

incubator will serve, a three-year plan 

regarding the services to be offered to 

participating entrepreneurs, among 

other items, information regarding 

applicant’s experience in conducting 

assistance programs, and a site 

description of the location at which the 

applicant will provide work space to 

participants, among other items. The 

annual report includes a detailed 

breakdown of the entrepreneurs the 

incubator has served for the year 

covered by the report. 

Title: Indian Business Incubator 

Program (IBIP). 

OMB Control Number: 1076–0199. 

Form Number: None. 

Type of Review: New collection. 

Respondents/Affected Public: 

Individuals, Private Sector, 

Government. 

Total Estimated Number of Annual 

Respondents: 50. 

Total Estimated Number of Annual 

Responses: 100. 

Estimated Completion Time per 

Response: Ranges from 5 to 35 hours. 

Total Estimated Number of Annual 

Burden Hours: 2,000 hours. 

Respondents’ Obligation: Required to 

obtain a benefit. 

Frequency of Response: Occasionally. 

Total Estimated Annual Non-Hour 

Burden Cost: $0. 

A proposed rule, soliciting comments 

on this collection of information for 30 

days, was published on April 13, 2021 

(86 FR 19162). No comments were 

received on the information collections. 

As part of our continuing effort to 

reduce paperwork and respondent 

burdens, we invite the public and other 

Federal agencies to comment on any 

aspect of this information collection, 

including: 

(1) Whether or not the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether or not the 

information will have practical utility; 

(2) The accuracy of our estimate of the 

burden for this collection of 

information, including the validity of 

the methodology and assumptions used; 

(3) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and 

(4) Ways to minimize the burden of 

the collection of information on those 

who are to respond, including through 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 


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other forms of information technology, 

e.g., permitting electronic submission of 

response. 

Written comments and 

recommendations for the information 

collection should be sent within 30 days 

of publication of this notification to 

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

30-day Review—Open for Public 

Comments’’ or by using the search 

function. Please provide a copy of your 

comments to consultation@bia.gov. 

Please reference OMB Control Number 

1076–0199 in the subject line of your 

comments. 

J. National Environmental Policy Act 

This rule does not constitute a major 

Federal action significantly affecting the 

quality of the human environment. A 

detailed statement under the National 

Environmental Policy Act of 1969 

(NEPA) is not required because this is 

an administrative and procedural 

regulation. (For further information see 

43 CFR 46.210(i)). We have also 

determined that this rule does not 

involve any of the extraordinary 

circumstances listed in 43 CFR 46.215 

that would require further analysis 

under NEPA. 

K. Effects on the Energy Supply (E.O. 

13211) 

This rule is not a significant energy 

action under the definition in Executive 

Order 13211. A Statement of Energy 

Effects is not required. 

L. Determination To Issue Final Rule 

With Immediate Effective Date 

This final rule is not subject to the 

effective date limitation of 5 U.S.C. 

553(d) because there is good cause to 

dispense with the 30-day delayed 

effective date requirement in this case. 

The regulation sets out how a grant 

program will be conducted, under 

provisions largely prescribed by statute. 

A delayed effective date would be 

unnecessary and contrary to the public 

interest because it would only serve to 

delay the Department’s ability to solicit 

applications for the grant funding. 

List of Subject in 25 CFR Part 1187 

Indians-business and finance, Loan 

programs—business, Loan programs— 

Indians, Reporting and recordkeeping 

requirements. 

■ For the reasons given in the preamble, 

the Department of the Interior amends 

chapter VI of title 25 of the Code of 

Federal Regulations by adding part 1187 

to read as follows: 

PART 1187—INDIAN BUSINESS 

INCUBATORS PROGRAM 

Subpart A—General Provisions and 

Eligibility 

Sec. 

1187.1 What is the Indian Business 

Incubators Program (IBIP)? 

1187.2 What terms do I need to know? 

1187.3 Who is eligible to receive a grant 

under the IBIP? 

Subpart B—Applying for a Grant 

1187.10 How does an eligible applicant 

apply for a grant under the IBIP? 

1187.11 What must an application include? 

1187.12 What must an applicant include in 

a written site proposal? 

1187.13 May applicants submit a joint 

application? 

1187.14 What additional items must a joint 

application include? 

Subpart C—Evaluation of Grant 

Applications 

1187.20 How will OIED evaluate each 

application? 

1187.21 How will OIED evaluate the 

proposed location of the business 

incubator? 

1187.22 How will OIED conduct the site 

evaluation? 

Subpart D—Grant Awards 

1187.30 How will OIED disburse the grant 

funds to awardees? 

1187.31 May OIED award a grant that is 

duplicative of Federal funding from 

another source? 

Subpart E—Grant Term and Conditions 

1187.40 How long is the grant term? 

1187.41 May OIED renew a grant award? 

1187.42 What may awardees use grant 

funds for? 

1187.43 May OIED waive the requirement 

for the non-Federal contribution? 

1187.44 What minimum requirements must 

awardees meet? 

1187.45 What reports must the awardee 

submit? 

Subpart F—OIED Grant Administration 

1187.50 How will OIED evaluate awardees’ 

performance? 

1187.51 Will OIED facilitate relationships 

between awardees and educational 

institutions serving Native American 

communities? 

1187.52 How will OIED coordinate with 

other Federal agencies? 

Authority: 25 U.S.C. 2, 9; 25 U.S.C. 5801 

et seq. 

Subpart A—General Provisions and 

Eligibility 

§ 1187.1 What is the Indian Business 

Incubators Program (IBIP)? 

The Indian Business Incubators 

Program (IBIP) is a program under the 

Native American Business Incubators 

Program Act in which the Office of 

Indian Economic Development (OIED) 

provides competitive grants to eligible 

applicants to establish and operate 

business incubators that serve Tribal 

reservation communities. With these 

grants, business incubators will: 

(a) Provide individually tailored 

business incubation and other business 

services to Native businesses and Native 

entrepreneurs to overcome the unique 

obstacles they confront; and 

(b) Provide Native businesses and 

Native entrepreneurs with the tools 

necessary to start and grow businesses 

that offer products and services to 

reservation communities. 

§ 1187.2 What terms do I need to know? 

As used in the part: 

Awardee means an eligible applicant 

receiving a grant under the IBIP. 

Business incubator means an 

organization that: 

(1) Provides physical workspace and 

facilities resources to startups and 

established businesses; and 

(2) Is designed to accelerate the 

growth and success of businesses 

through a variety of business support 

resources and services, including— 

(i) Business education, counseling, 

and advice regarding access to capital; 

(ii) Networking opportunities; 

(iii) Mentorship opportunities; and 

(iv) Other services intended to aid in 

developing a business. 

Eligible applicant means an applicant 

eligible to apply for a grant under 

§ 1187.3. 

IBIP means the Indian Business 

Incubator Program (IBIP) under the 

Native American Business Incubator 

Program Act. 

Indian Tribe has the meaning given 

the term in section 4 of the Indian SelfDetermination and Education 

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

Institution of higher education means 

an educational institution in any State 

that— 

(1) Admits as regular students only 

persons having a certificate of 

graduation from a school providing 

secondary education, or the recognized 

equivalent of such a certificate, or 

persons who meet the requirements of 

20 U.S.C. 1091(d); 

(2) Is legally authorized within such 

State to provide a program of education 

beyond secondary education; 

(3) Provides an educational program 

for which the institution awards a 

bachelor’s degree or provides not less 

than a two-year program that is 

acceptable for full credit toward such a 

degree, or awards a degree that is 

acceptable for admission to a graduate 

or professional degree program, subject 

to review and approval by the Secretary; 

(4) Is a public or other nonprofit 

institution; and 


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(5) Is accredited by a nationally 

recognized accrediting agency or 

association, or if not so accredited, is an 

institution that has been granted preaccreditation status by such an agency 

or association that has been recognized 

by the Secretary for the granting of preaccreditation status, and the Secretary 

has determined that there is satisfactory 

assurance that the institution will meet 

the accreditation standards of such an 

agency or association within a 

reasonable time. 

Native American or Native means a 

person who is a member of an Indian 

Tribe, as defined in section 4(d) of the 

Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 

5304(d)). 

Native business means a business 

concern that is at least 51-percent 

owned and controlled by 1 or more 

Native Americans. 

Native entrepreneur means an 

entrepreneur who is a Native American. 

OIED means the Office of Indian 

Economic Development in the Office of 

the Assistant Secretary—Indian Affairs. 

Reservation means Indian 

reservations, public domain Indian 

allotments, former Indian reservations 

in Oklahoma, and land held by 

incorporated Native groups, regional 

corporations, and village corporations 

under the provisions of the Alaska 

Native Claims Settlement Act (43 U.S.C. 

1601 et seq.). 

Secretary means the Secretary of the 

Interior. 

Tribal college or university means an 

institution that— 

(1) Qualifies for funding under the 

Tribally Controlled Colleges and 

Universities Assistance Act of 1978 (25 

U.S.C. 1801 et seq.) or the Navajo 

Community College Act (25 U.S.C. 640a 

note); or 

(2) Is cited in section 532 of the 

Equity in Educational Land-Grant Status 

Act of 1994 (7 U.S.C. 301 note). 

§ 1187.3 Who is eligible to receive a grant 

under the IBIP? 

To be eligible to receive a grant under 

the IBIP, an applicant must: 

(a) Be able to provide the physical 

workspace, equipment, and connectivity 

necessary for Native businesses and 

Native entrepreneurs to collaborate and 

conduct business on a local, regional, 

national, and international level; and 

(b) Be one of the following entities: 

(1) An Indian Tribe; 

(2) A Tribal college or university that 

will have been operational for not less 

than one year before receiving a grant 

under the IBIP; 

(3) An institution of higher education 

that will have been operational for not 

less than one year before receiving a 

grant under the IBIP; or 

(4) A Tribal or private nonprofit 

organization that provides business and 

financial technical assistance and: 

(i) Will have been operational for not 

less than one year before receiving a 

grant under the IBIP; and 

(ii) Commits to serving one or more 

reservation communities. 

Subpart B—Applying for a Grant 

§ 1187.10 How does an eligible applicant 

apply for a grant under the IBIP? 

Each eligible applicant desiring a 

grant under the IBIP must submit to the 

Secretary an application as described in 

the solicitation posted on 

www.grants.gov. 

§ 1187.11 What must an application 

include? 

An application for a grant under the 

IBIP must include: 

(a) A certification that the applicant: 

(1) Is an eligible applicant; 

(2) Has or will designate an executive 

director or program manager to manage 

the business incubator; and 

(3) Agrees to: 

(i) A site evaluation by the Secretary 

as part of the final selection process; 

(ii) An annual programmatic and 

financial examination for the duration 

of the grant; and 

(iii) To the maximum extent 

practicable, to remedy any problems 

identified pursuant to the site 

evaluation and examination; 

(b) A description of the one or more 

reservation communities to be served by 

the business incubator; 

(c) A three-year plan that describes: 

(1) The number of Native businesses 

and Native entrepreneurs to be 

participating in the business incubator; 

(2) Whether the business incubator 

will focus on a particular type of 

business or industry; 

(3) A detailed breakdown of the 

services to be offered to Native 

businesses and Native entrepreneurs 

participating in the business incubator; 

and 

(4) A detailed breakdown of the 

services, if any, to be offered to Native 

businesses and Native entrepreneurs not 

participating in the business incubator; 

(d) Information demonstrating the 

effectiveness and experience of the 

eligible applicant in: 

(1) Conducting financial, 

management, and marketing assistance 

programs designed to educate or 

improve the business skills of current or 

prospective businesses; 

(2) Working in and providing services 

to Native American communities; 

(3) Providing assistance to entities 

conducting business in reservation 

communities; 

(4) Providing technical assistance 

under Federal business and 

entrepreneurial development programs 

for which Native businesses and Native 

entrepreneurs are eligible; and 

(5) Managing finances and staff 

effectively; 

(e) A description of the applicant’s 

non-Federal contributions, in an amount 

equal to not less than 25 percent of the 

grant amount requested; and 

(f) A site description of the location at 

which the eligible applicant will 

provide physical workspace, including a 

description of the technologies, 

equipment, and other resources that will 

be available to Native businesses and 

Native entrepreneurs participating in 

the business incubator, if the applicant 

is in possession of the site, or a written 

site proposal containing the information 

in § 1187.12, if the applicant is not yet 

in possession of the site. 

§ 1187.12 What must an applicant include 

in a written site proposal? 

If the applicant is not yet in 

possession of the site, the applicant 

must submit a written site proposal with 

their application that contains: 

(a) Sufficient detail for the Secretary 

to ensure, in the absence of a site visit 

or video submission, that the proposed 

site will permit the eligible applicant to 

meet the requirements of the IBIP; and 

(b) A timeline describing when the 

eligible applicant will be: 

(1) In possession of the proposed site; 

and 

(2) Operating the business incubator 

at the proposed site. 

§ 1187.13 May applicants submit a joint 

application? 

Two or more eligible entities may 

submit a joint application for a project 

that combines the resources and 

expertise of those entities at a physical 

location dedicated to assisting Native 

businesses and Native entrepreneurs 

under the IBIP. 

§ 1187.14 What additional items must a 

joint application include? 

A joint application must: 

(a) Contain a certification that each 

participant of the joint project is an 

eligible entity under § 1187.3; 

(b) Demonstrate that together the 

participants meet the requirements of 

§ 1187.13; and 

(c) Identify which of the entities 

submitting the joint application will be 

the lead contact for the purposes of 

grant management. 


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Subpart C—Evaluation and Award of 

Grant Applications 

§ 1187.20 How will OIED evaluate each 

application? 

In evaluating each application, OIED 

will consider: 

(a) The ability of the eligible applicant 

to: 

(1) Operate a business incubator that 

effectively imparts entrepreneurship 

and business skills to Native businesses 

and Native entrepreneurs, as 

demonstrated by the experience and 

qualifications of the eligible applicant; 

(2) Commence providing services 

within three months; and 

(3) Provide quality incubation 

services to a significant number of 

Native businesses and Native 

entrepreneurs or provide such services 

at geographically remote locations 

where quality business guidance and 

counseling is difficult to obtain; 

(b) The experience of the eligible 

applicant in providing services in 

Native American communities, 

including in the one or more reservation 

communities described in the 

application; 

(c) The proposed location of the 

business incubator; and 

(d) The extent to which a grant award 

will enable an entity that is already 

providing business incubation services 

to appreciably enhance those services. 

§ 1187.21 How will OIED evaluate the 

proposed location of the business 

incubator? 

In evaluating the proposed location of 

the business incubator, OIED will: 

(a) Consider the program goal of 

achieving broad geographic distribution 

of business incubators; and 

(b) Give priority to eligible applicants 

that will provide business incubation 

services on or near the reservation of the 

one or more communities that were 

described in the application, except that 

OIED may give priority to an eligible 

applicant that is not located on or near 

the reservation of the one or more 

communities that were described in the 

application if OIED determines that: 

(1) The location of the business 

incubator will not prevent the eligible 

applicant from providing quality 

business incubation services to Native 

businesses and Native entrepreneurs 

from the one or more reservation 

communities to be served; and 

(2) Siting the business incubator in 

the identified location will serve the 

interests of the one or more reservation 

communities to be served. 

§ 1187.22 How will OIED conduct the site 

evaluation? 

(a) Before awarding a grant to an 

eligible applicant, OIED will conduct an 

evaluation of the proposed site to verify 

that the applicant has (or will have) the 

physical workspace, equipment, and 

connectivity necessary for Native 

businesses and Native entrepreneurs to 

collaborate and conduct business on a 

local, regional, national, and/or 

international level. 

(b) To determine whether the site 

meets the requirements of paragraph (a) 

of this section: 

(1) If the applicant is in possession of 

the proposed site, OIED will conduct an 

on-site visit or review a video 

submission before awarding the grant. 

(2) If the applicant is not yet in 

possession of the proposed site and has 

submitted a written site proposal, OIED 

will review the written site proposal 

before awarding the grant and will 

conduct an on-site visit or review a 

video submission to ensure the site is 

consistent with the written site proposal 

no later than one year after awarding the 

grant. If OIED determines the site is not 

consistent with the written site 

proposal, OIED will use that 

information in determining the ongoing 

eligibility of the applicant under 

§ 1187.50. 

Subpart D—Grant Awards 

§ 1187.30 How will OIED disburse the 

grant funds to awardees? 

OIED will disburse grant funds 

awarded to eligible applicants in annual 

installments except that, OIED may 

make disbursements more frequently, 

on request by the applicant, as long as 

disbursements are not made more 

frequently than quarterly. 

§ 1187.31 May OIED award a grant that is 

duplicative of Federal funding from another 

source? 

OIED may not award a grant under the 

IBIP that is duplicative of existing 

Federal funding from another source. 

Duplicative funding means any funding 

from other Federal grants that would 

overlap with the IBIP grant for the same 

activities described in the applicant’s 

IBIP proposal. 

Subpart E—Grant Term and Conditions 

§ 1187.40 How long is the grant term? 

Each grant awarded under the IBIP is 

for a term of three years. 

§ 1187.41 May OIED renew a grant award? 

(a) OIED may renew a grant award 

under the IBIP for one additional threeyear term. In determining whether to 

renew a grant award, OIED will consider 

for the awardee: 

(1) The results of the annual 

evaluation of the awardee conducted 

under § 1187.50; 

(2) The performance of the awardee’s 

business incubator, as compared to the 

performance of other business 

incubators receiving grants under the 

IBIP; 

(3) Whether the awardee continues to 

be eligible for the IBIP; and 

(4) The evaluation consideration for 

initial awards under § 1187.20. 

(b) Awardees that receive a grant 

renewal must provide non-Federal 

contributions in an amount not less than 

33 percent of the total amount of the 

grant. Failure to provide the nonFederal contribution will result in 

noncompliance and OIED withholding 

of funds, unless OIED waives the 

requirement under § 1187.43. 

§ 1187.42 What may awardees use grant 

funds for? 

An awardee may use grant amounts 

for any or all of the following purposes: 

(a) To provide physical workspace 

and facilities for Native businesses and 

Native entrepreneurs participating in 

the business incubator; 

(b) To establish partnerships with 

other institutions and entities to provide 

comprehensive business incubation 

services to Native businesses and Native 

entrepreneurs participating in the 

business incubator; and 

(c) For any other uses typically 

associated with business incubators that 

OIED determines to be appropriate and 

consistent with the purposes of the IBIP. 

§ 1187.43 May OIED waive the requirement 

for the non-Federal contribution? 

OIED may waive the requirement for 

the non-Federal contribution, in whole 

or in part, for one or more years of the 

initial IBIP grant award if OIED 

determines that the waiver is 

appropriate based on: 

(a) The awardee’s ability to provide 

non-Federal contributions; 

(b) The quality of business incubation 

services; and 

(c) The likelihood that one or more 

reservation communities served by the 

awardee will not receive similar 

services elsewhere because of the 

remoteness or other reasons that inhibit 

the provision of business and 

entrepreneurial development services. 

§ 1187.44 What minimum requirements 

must awardees meet? 

(a) Each awardee must: 

(1) Offer culturally tailored incubation 

services to Native businesses and Native 

entrepreneurs; 


jbell on DSKJLSW7X2PROD with RULES
50260 Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Rules and Regulations 

(2) Use a competitive process for 

selecting Native businesses and Native 

entrepreneurs to participate in the 

business incubator; however, awardees 

may still offer technical assistance and 

advice to Native businesses and Native 

entrepreneurs on a walk-in basis; 

(3) Provide physical workspace that 

permits Native businesses and Native 

entrepreneurs to conduct business and 

collaborate with other Native businesses 

and Native entrepreneurs; 

(4) Provide entrepreneurship and 

business skills training and education to 

Native businesses and Native 

entrepreneurs including: 

(i) Financial education, including 

training and counseling in: 

(A) Applying for and securing 

business credit and investment capital; 

(B) Preparing and presenting financial 

statements; and 

(C) Managing cash flow and other 

financial operations of a business; 

(ii) Management education, including 

training and counseling in planning, 

organization, staffing, directing, and 

controlling each major activity or 

function of a business or startup; and 

(iii) Marketing education, including 

training and counseling in: 

(A) Identifying and segmenting 

domestic and international market 

opportunities; 

(B) Preparing and executing marketing 

plans; 

(C) Locating contract opportunities; 

(D) Negotiating contracts; and 

(E) Using varying public relations and 

advertising techniques; 

(5) Provide direct mentorship or 

assistance finding mentors in the 

industry in which the Native business 

or Native entrepreneur operates or 

intends to operate; and 

(6) Provide access to networks of 

potential investors, professionals in the 

same or similar fields, and other 

business owners with similar 

businesses. 

(b) Each awardee must leverage 

technology to the maximum extent 

practicable to provide Native businesses 

and Native entrepreneurs with access to 

the connectivity tools needed to 

compete and thrive in 21st-century 

markets. 

§ 1187.45 What reports must the awardee 

submit? 

(a) Not later than one year after the 

date OIED awards the grant, and then 

annually for the duration of the grant, 

the awardee must submit to OIED a 

report describing the services the 

awardee provided under the IBIP during 

the preceding year, including: 

(1) A detailed breakdown of the 

Native businesses and Native 

entrepreneurs receiving services from 

the business incubator, including, for 

the year covered by the report: 

(i) The number of Native businesses 

and Native entrepreneurs participating 

in or receiving services from the 

business incubator and the types of 

services provided to those Native 

businesses and Native entrepreneurs; 

(ii) The number of Native businesses 

and Native entrepreneurs established 

and jobs created or maintained; and 

(iii) The performance of Native 

businesses and Native entrepreneurs 

while participating in the business 

incubator and after graduation or 

departure from the business incubator; 

and 

(2) Any other information the 

Secretary may require to evaluate the 

performance of a business incubator to 

ensure appropriate implementation of 

the IBIP. 

(b) To the maximum extent 

practicable, OIED will not require an 

awardee to report the information listed 

in paragraph (a) of this section that the 

awardee provides to OIED under 

another program. 

(c) OIED will coordinate with the 

heads of other Federal agencies to 

ensure that, to the maximum extent 

practicable, the report content and form 

under paragraph (a) of this section are 

consistent with other reporting 

requirements for Federal programs that 

provide business and entrepreneurial 

assistance. 

Subpart F—OIED Grant Administration 

§ 1187.50 How will OIED evaluate 

awardees’ performance? 

Not later than one year after the date 

on which OIED awards a grant to an 

eligible applicant under the IBIP, and 

annually thereafter for the duration of 

the grant, OIED will conduct an 

evaluation of, and prepare a report on, 

the awardee, which will: 

(a) Describe the performance of the 

eligible applicant; and 

(b) Be used in determining the 

ongoing eligibility of the eligible 

applicant. 

§ 1187.51 Will OIED facilitate relationships 

between awardees and educational 

institutions serving Native American 

communities? 

OIED will facilitate the relationships 

between awardees and educational 

institutions serving Native American 

communities, including Tribal colleges 

and universities. 

§ 1187.52 How will OIED coordinate with 

other Federal agencies? 

OIED will coordinate with the 

Secretaries of Agriculture, Commerce, 

and Treasury, and the Administrator of 

the Small Business Administration to 

ensure, to the maximum extent 

practicable, that awardees have the 

information and materials they need to 

provide Native businesses and Native 

entrepreneurs with the information and 

assistance necessary to apply for 

business and entrepreneurial 

development programs administered by 

those agencies. 

Bryan Newland, 

Assistant Secretary—Indian Affairs. 

[FR Doc. 2021–18736 Filed 9–7–21; 8:45 am] 

BILLING CODE 4337–15–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2021–0135] 

RIN 1625–AA00 

Safety Zones; Fireworks Displays, Air 

Shows and Swim Events in Captain of 

the Port Long Island Sound Zone 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard will add one 

safety zone for the Dolan Family Labor 

Day Fireworks event on Oyster Bay, NY, 

and remove six other annual recurring 

marine events in Coast Guard Sector 

Long Island Sound’s Captain of the Port 

Zone. This rule is intended to expedite 

public information and to ensure the 

protection of the maritime public and 

event participants from the hazards 

associated with certain marine events. 

When enforced, the safety zones would 

restrict vessels from transiting the 

regulated area during annually recurring 

events. 

DATES: This rule is effective without 

actual notice September 8, 2021. For the 

purposes of enforcement, actual notice 

will be used from September 6, 2021 

until September 8, 2021. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2021– 

0135 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Marine Science Technician 1st 

Class Chris Gibson, Waterways 

Management Division, Sector Long 


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