‘‘(D) UNEMPLOYMENT
RATE
GREATER 
THAN NATIONAL AVERAGE.—In the case of a 
grant made in an area for which the 12-month 
unemployment rate is at least 1 percentage 
point greater than the national 12-month unem-
ployment rate or the per capita income is not 
more than 80 percent of the national average, 
the Secretary may increase the Federal share 
above the percentage specified in subsection (a) 
up to 50 percent of the cost of the project.’’; 
and 
(3) by adding at the end the following: 
‘‘(5) SPECIAL NEED AREAS.—In any case of se-
vere economic distress during which grant rates 
based on relative need as required under subsection 
(a) result in a level for the non-Federal share that 
prevents eligible recipients in a particular area from 
participating in grant assistance under this Act, the 
Secretary may— 
‘‘(A) deem the area to be experiencing a 
special need under section 301(a)(3); 
‘‘(B) reduce the non-Federal share to 20 
percent of the cost of a project; and 
‘‘(C) waive the local share below that 
amount, or entirely, if the unemployment rate 
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exceeds 12 percent or otherwise meets the re-
quirements of paragraph (3).’’. 
SEC. 6. BUSINESS INCUBATORS. 
Title II of the Public Works and Economic Develop-
ment Act of 1965 is amended by inserting after section 
207 (42 U.S.C. 3147) the following: 
‘‘SEC. 208. BUSINESS INCUBATORS. 
‘‘(a) DEVELOPMENT OF PLANS FOR CREATION OR 
EXPANSION OF BUSINESS INCUBATORS.—On receipt of 
an application from an eligible recipient (as determined 
by the Secretary in accordance with subsection (c)), the 
Secretary may provide grants to the eligible recipient 
for— 
‘‘(1) the development of feasibility studies and 
plans for the creation of new, or expansion of exist-
ing, business incubators; 
‘‘(2) the implementation of those studies and 
plans by supporting the creation of new or expansion 
of existing business incubators and related pro-
grammatic and technical assistance; and 
‘‘(3) the temporary support of operations of 
business incubators, to the extent that the Secretary 
determines that the support is essential to assist a 
business incubator in becoming self-sustainable. 
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‘‘(b) LIMITATION
ON AMOUNT
OF GRANTS.—The 
amount of a grant provided to an eligible recipient under 
this section may not exceed— 
‘‘(1) $750,000, if the grant is to be used for 
feasibility studies and plans; or 
‘‘(2) $3,000,000, if the grant is to be used for 
implementation of those studies and plans. 
‘‘(c) PROCEDURE FOR PROVIDING GRANTS.— 
‘‘(1) COMPETITIVE PROCESS REQUIRED.—The 
Secretary shall provide each grant under this section 
to an eligible recipient selected pursuant to a com-
petitive process. 
‘‘(2) SELECTION
CRITERIA.—The Secretary 
shall publish the criteria to be used in any competi-
tion under this paragraph for the selection of eligible 
recipients of grants under this section, including re-
quirements relating to— 
‘‘(A) the projected number of jobs required 
to be created at a new or expanded business in-
cubator for each of the first 6 years after the 
date of receipt of the grant; 
‘‘(B) the funding to be required to create 
or expand a business incubator during the first 
5 years after the date of receipt of the grant; 
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‘‘(C) the types of businesses and research 
entities expected in the business incubator and 
surrounding community; 
‘‘(D) the capability to attract a well- 
trained workforce to the business incubator; 
‘‘(E) the management of the business incu-
bator; and 
‘‘(F) such other factors as the Secretary 
determines to be appropriate. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this section such sums as 
are necessary for fiscal year 2010 and each fiscal 
year thereafter. 
‘‘(2) AVAILABILITY.—Amounts made available 
pursuant to paragraph (1) for a fiscal year shall re-
main available until the end of the second fiscal year 
following the fiscal year in which the amounts were 
first made available.’’. 
Æ 
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