SEC. 2. GRANTS FOR NONPROFIT ORGANIZATIONS THAT 
SUPPORT STARTUP BUSINESSES. 
(a) GRANTS.—The Administrator of the Small Busi-
ness Administration (hereinafter ‘‘the Administrator’’) 
shall develop and implement, beginning not later than one 
year after the date of the enactment of this section, a 
grant program under this section for State and local gov-
ernmental and other nonprofit organizations that are lo-
cated in the United States and support startup businesses 
in the United States to provide those organizations assist-
ance to use for construction costs, space acquisition, and 
programmatic purposes. 
(b) REQUIREMENT FOR RECIPIENTS.—A recipient of 
a grant under this section must demonstrate to the satis-
faction of the Administrator that it will use the grant to 
provide assistance to at least 5 client businesses per year 
that have been in business for less than 5 years. 
(c) CRITERIA
FOR
GRANTS.—The Administrator 
shall establish criteria for grants under this section favor-
ing recipients that provide startups the following: 
(1) Office, manufacturing, or warehouse space, 
including appropriate operations infrastructure. 
(2) Access to capital (either directly from the 
organization or through guidance and contacts for 
acquiring capital from outside investors), except that 
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such capital may not be made available from the 
grant funds (including by making subgrants). 
(3) Access to professional services (either di-
rectly from the organization or guidance and con-
tacts for acquiring those services) including account-
ing and legal services, except that litigation expenses 
may not be made available from the grant funds. 
(4) A formal structured mentorship or develop-
mental program that assists startups with building 
business skills and competencies. 
(d) CONSIDERATIONS TO BE APPLIED IN CHOOSING 
RECIPIENTS.—In determining whether or not to make a 
grant under this section to an organization, the Adminis-
trator shall take into account the following: 
(1) If the organization is an existing organiza-
tion, the previous record of that organization, as 
measured by— 
(A) the number of participating client busi-
nesses each of the previous 3 years, if applica-
ble; 
(B) the number of businesses applying 
each of the previous 3 years, if applicable; 
(C) the retention rate of client businesses; 
(D) the average duration of client business 
participation in program; total, average, and 
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median capital raised by participation client 
businesses; 
(E) the total, average, and median number 
of employees of participating client businesses; 
and 
(F) other metrics deemed appropriate by 
the Administrator. 
(2) Promoting growth in underserviced geo-
graphic areas with sufficient population density. 
(3) How experienced the entrepreneurial leader-
ship of the organization is. 
(4) The ability of the organization to utilize and 
leverage local strengths, including human resources, 
infrastructure, or educational institutions. 
(e) REQUIREMENT OF FEE PAID BY PARTICIPATING 
STARTUPS.—Each recipient of a grant under this section 
shall require each participating client business in the pro-
gram assisted under this section to pay, at minimum, an 
entry fee for participation in the program. 
(f) MATCHING PUBLIC FUNDING REQUIREMENT.— 
The Administrator shall require as condition of grant 
under this section, that the recipient obtain a grant from 
a local or State government for the same purposes as a 
grant may be made under this section, to carry out the 
program of the recipient assisted under this section. The 
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amount of that grant from a local or State government 
may not be less than 1⁄2 the amount received by that re-
cipient under this section. 
(g) MATCHING
NONPUBLIC
FUNDING
REQUIRE-
MENT.—The Administrator shall require as condition of 
grant under this section, that the recipient obtain non-
public (defined as private or nonprofit) funding for the 
same purposes as a grant may be made under this section, 
to carry out the program of the recipient assisted under 
this section. The amount of that funding from a nonpublic 
source may not be less than 1⁄2 the amount received by 
that recipient under this section. 
(h) CONSEQUENCES
OF FAILURE TO ABIDE
BY 
TERMS AND CONDITIONS OF GRANT OR REQUIREMENTS 
OF THIS SECTION.—Each recipient shall be notified that 
failure to abide by the terms and conditions of the grant 
or the requirements of this section may, in the discretion 
of the Administrator and in addition to any other civil or 
criminal consequences, result in recapture by the Small 
Business Administration of the grant funds. 
(i) ANNUAL PROGRESS REPORTING BY RECIPIENTS 
OF GRANTS.—Each recipient of a grant under this section 
shall annually report to the Administrator on the progress 
of the program assisted under this section, including— 
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(1) the number of participating client busi-
nesses each of the previous 3 years, if applicable; 
(2) the number of businesses applying each of 
the previous 3 years, if applicable; 
(3) the retention rate of client businesses; 
(4) the average duration of client business par-
ticipation in program; 
(5) the total, average, and median capital raised 
by participation client businesses; 
(6) the total, average, and median number of 
employees of participating client businesses; and 
(7) other metrics deemed appropriate by the 
Administrator. 
(j) REPORT TO CONGRESS.—The Administrator shall 
report annually to Congress the Administrator’s assess-
ment of the effectiveness of the grant program under this 
section including the metrics listed in subsection (i). 
(k) COORDINATION WITH OTHER SMALL BUSINESS 
ADMINISTRATION PROGRAMS.—The Administrator shall 
take appropriate action to encourage grantees under this 
section to utilize and incorporate Small Business Adminis-
tration programs, such as Small Business Development 
Centers; Small Business Investment Companies, section 
7(a) loans, and section 504 loans. 
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