startup phase, including providing services such as 
shared office space and services, access to equip-
ment, access to telecommunications and technology 
services, flexible leases, specialized management as-
sistance, access to financing, and other coordinated 
business or technical support services. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
SEC. 4. PROGRAM AUTHORIZED. 
(a) IN GENERAL.—The Secretary is authorized to 
support the establishment and development of incubators. 
(b) ALLOCATION OF FUNDS.—From the amount ap-
propriated under section 9, the Secretary— 
(1) shall use 80 percent of the amount to— 
(A) make awards, on a competitive basis, 
in amounts of $500,000 to $750,000, to help 
acquire or renovate space for incubators; and 
(B) make awards, on a competitive basis, 
in amounts of $50,000 to $150,000, for devel-
oping curricula, providing services (including 
preparing 
corporate 
charters, 
partnership 
agreements, and basic contracts, assistance 
with patents, trademarks, and copyrights, and 
technology acquisition services), or providing 
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programming for entrepreneurs housed in an 
incubator; 
(2) shall use 10 percent of the amount to make 
awards, on a competitive basis, in amounts of 
$50,000 to $150,000, for feasibility studies for de-
termining the need for or siting of incubators; and 
(3) shall use 10 percent for research regarding 
best practices for incubator programs, including the 
development of a benchmarking system based on 
uniform measures, and for dissemination of informa-
tion regarding such practices. 
(c) CONTRACTS.—The Secretary is authorized to con-
tract with organizations with expertise in business incuba-
tion practices for the purposes of carrying out subsection 
(b)(3). 
(d) RECIPIENTS.—The Secretary shall make an 
award— 
(1) described in subsection (b)(1) to a nonprofit 
entity that has a strong affiliation with a degree- 
granting institution and manages or provides tech-
nical assistance to the degree-granting institution’s 
affiliated incubator, or if no nonprofit entity man-
ages or provides technical assistance to the incu-
bator, to the degree-granting institution managing 
the incubator; and 
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(2) described in subsection (b)(2) to a degree- 
granting institution, or a nonprofit municipality, 
city, township, or community development organiza-
tion. 
SEC. 5. USES OF FUNDS. 
Funds awarded under section 4(b)(1)(B) may be 
used for— 
(1) curriculum, training, or technical assistance 
developed by academic faculty with participation 
from entrepreneurship experts and local government 
leaders; 
(2) programming that contributes to a coordi-
nated set of business assistance tools, such as devel-
oping management teams, providing workforce devel-
opment, forming strategic alliances, developing cap-
ital formation networks, and developing customized 
plans to help entrepreneurs meet the challenges of 
doing business in their specific communities; and 
(3) hiring staff to coordinate the activities de-
scribed in paragraph (1) or (2) or for curriculum de-
velopment. 
SEC. 6. APPLICATIONS. 
(a) IN GENERAL.—Each entity desiring assistance 
under this Act shall submit an application to the Secretary 
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at such time, in such manner, and accompanied by such 
information as the Secretary may require. 
(b) CONTENTS.—Each application shall contain an 
assurance that the activities to be assisted— 
(1) have the support of the municipality, city, 
or township in which the incubator is housed or pro-
posed to be housed; and 
(2) are consistent with the local economic devel-
opment plan or strategic master plan. 
(c) PRIORITY.—The Secretary shall give priority to 
funding applications under this Act that provide strong 
educational opportunities to students in entrepreneurship, 
and that require significant collaboration between busi-
nesses, academia, and local government and economic de-
velopment leaders. 
(d) CONSIDERATION.— 
(1) IN GENERAL.—In addition to applications 
from other appropriate sources, the Secretary may 
give consideration to funding applications under this 
Act that support— 
(A) the building of new incubators; 
(B) incubators located in economically dis-
tressed areas; 
(C) incubators with successful graduation 
rates for tenant companies; 
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(D) incubators that have shown demon-
strable economic benefits in their surrounding 
communities; 
(E) incubators that work with faculty en-
trepreneurs or university-based research; or 
(F) incubators located in rural, inner-city 
areas, or Indian reservations or pueblos where 
the presence of an incubator may enhance and 
diversify the area’s economy through expanded 
technology commercialization. 
(2) DEFINITION OF CONSIDERATION.—In this 
subsection, the term ‘‘consideration’’ does not mean 
priority. 
SEC. 7. MATCHING FUNDS. 
Each entity receiving Federal assistance under sec-
tion 4(b)(1) shall contribute matching funds, in an 
amount equal to the amount of Federal assistance received 
under this Act, toward the costs of the activities assisted 
under this Act. The non-Federal share required under this 
section may be provided in the form of in-kind contribu-
tions. 
SEC. 8. REPORT. 
The Secretary, at the end of the third year for which 
assistance is provided under this Act, shall prepare and 
submit to Congress a report that— 
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