Invest in Rural Small Business Act of 2017

To improve the HUBZone program. 1. Short title This Act may be cited as the Invest in Rural Small Business Act of 2017 2. Flexibility for residency in HUBZones Section 3(p)(5)(A)(i)(I) of the Small Business Act ( 15 U.S.C. 632(p)(5)(A)(i)(I) 35 percent 33 percent 3. Enabling local communities to maximize economic potential The Small Business Act ( 15 U.S.C. 631 (1) in section 3(p)(1) ( 15 U.S.C. 632(p)(1) (A) in subparagraph (E), by striking or (B) by redesignating subparagraph (F) as subparagraph (G); and (C) by inserting after subparagraph (E) the following: (F) another qualified area designated by the Administrator under section 31(d); or ; and (2) in section 31 ( 15 U.S.C. 657a (A) by redesignating subsection (d) as subsection (e); and (B) by inserting after subsection (c) the following: (d) Other qualified areas (1) Definitions In this subsection— (A) the term covered area (i) that is located outside of an urbanized area, as determined by the Bureau of the Census; and (ii) with a population of not more than 50,000; (B) the term governor (C) the term State (2) Designation A governor may petition the Administrator to designate one or more covered areas as a HUBZone if the average unemployment rate of each covered area is not less than 120 percent of the average unemployment rate of the United States or of the State in which the covered area is located, whichever is less, based on the most recent data available from the American Community Survey conducted by the Bureau of the Census. (3) Criteria In reviewing a petition submitted by a governor under paragraph (2), the Administrator may consider— (A) the potential for job creation and investment; (B) the demonstrated interest of small business concerns in the covered area to participate in the HUBZone program established under section 31; and (C) the consideration by State and local government officials of a HUBZone as part of an economic development strategy. (4) Petition With respect to a petition submitted by a governor to the Administrator under paragraph (2)— (A) the governor may submit not more than 1 petition in a fiscal year unless the Administrator determines that an additional petition from the State of the governor is appropriate; (B) the governor may not submit a petition for more than 10 percent of the total number of covered areas in the State of the governor; and (C) if the Administrator grants the petition and designates one or more covered areas as a HUBZone, the governor shall, not less frequently than annually, submit data to the Administrator certifying that each covered area continues to meet the requirements of clauses (i) and (ii) of paragraph (1)(A). (5) Process The Administrator shall establish procedures— (A) to ensure that the Administration accepts petitions under paragraph (2) from all States each fiscal year; and (B) to provide technical assistance, before the filing of a petition under paragraph (2), to a governor who is interested in filing such a petition. . 4. Ensuring timely consideration of HUBZone applications Section 3(p)(5) of the Small Business Act ( 15 U.S.C. 632(p)(5) (C) Review of applications Not later than 60 days after the date on which the Administrator receives an application from a small business concern to be certified as a qualified HUBZone small business concern under subparagraph (A)(i), the Administrator shall approve or deny the application. .

Summary: Invest in Rural Small Business Act of 2017 (Sec. 2) This bill amends the Small Business Act to modify the definition of qualified Historically Underutilized Business Zone (HUBZone) small business concern to reduce from 35% to 33% the number of a small firm's employees required to live within a HUBZone. (Sec. 3) The HUBZone program is expanded to include a qualified area located outside of an urbanized area with a population of 50,000 or less (covered area) designated by the Small Business Administration (SBA) in response to a petition by the governor of a state, the District of Columbia, or a U.S. territory. The SBA may designate, in response to a governor's petition, only a covered area for which the designation is sought that has an average unemployment rate at least 120% of the average U.S. or state unemployment rate, whichever is less. In reviewing such petition, the SBA may consider: the potential for job creation and investment; the demonstrated interest of small business concerns in the covered area to participate in such HUBZone program; and the consideration by state and local government officials of a HUBZone as part of an economic development strategy. The governor: is limited to submitting one petition in a fiscal year unless the SBA determines that an additional petition from the governor's state is appropriate; may not submit a petition for more than 10% of the total number of covered areas in the state; and shall at least annually submit data to the SBA certifying that each covered area designated continues to meet the requirements of this bill. The SBA shall establish procedures to ensure that it accepts petitions from all states each fiscal year and gives an interested governor technical assistance before a petition is filed. (Sec. 4) The SBA must approve or deny, within 60 days upon receipt, a small business concern's application for certification as a qualified HUBZone small business concern.