I 
★
113TH CONGRESS 
2D SESSION 
H. R. 4059 
To amend the Small Business Act to create a grant program for governmental 
and other nonprofit organizations that support startup businesses in 
formation and early growth stages by providing entrepreneurs with re-
sources and services to produce viable businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 14, 2014 
Mr. SCHNEIDER introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend the Small Business Act to create a grant program 
for governmental and other nonprofit organizations that 
support startup businesses in formation and early growth 
stages by providing entrepreneurs with resources and 
services to produce viable businesses, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Accelerate Our 
Startups Act of 2014’’. 
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SEC. 2. GRANTS FOR ORGANIZATIONS THAT SUPPORT 
STARTUP BUSINESSES. 
Add at the end of the Small Business Act (15 U.S.C. 
631 et seq.) the following: 
‘‘SEC. 48. GRANTS FOR NONPROFIT ORGANIZATIONS THAT 
SUPPORT STARTUP BUSINESSES. 
‘‘(a) GRANTS.—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 governmental and 
other nonprofit organizations that are located in the 
United States and support startup businesses in the 
United States to provide those organizations assistance to 
use for construction costs, space acquisition, and pro-
grammatic purposes. 
‘‘(b) REQUIREMENT FOR RECIPIENTS.—A recipient 
of a grant under this section must demonstrate to the sat-
isfaction 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. 
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‘‘(2) Access to capital (either directly from the 
organization or though guidance and contacts for ac-
quiring capital from outside investors), except that 
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 devel-
opmental program that assists startups with build-
ing business skills and competencies. 
‘‘(d) CONSIDERATIONS TO BE APPLIED IN CHOOS-
ING 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 
businesses each of the previous 3 years, if appli-
cable; 
‘‘(B) the number of businesses applying 
each of the previous 3 years, if applicable; 
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‘‘(C) the retention rate of client businesses; 
‘‘(D) the average duration of client busi-
ness participation in program; total, average, 
and median capital raised by participation cli-
ent businesses; 
‘‘(E) the total, average, and median num-
ber of employees of participating client busi-
nesses; 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 lead-
ership of the organization is. 
‘‘(4) The ability of the organization to utilize 
and leverage local strengths, including human re-
sources, 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, a 
entry fee for participation in the program. 
‘‘(f) MATCHING PUBLIC FUNDING REQUIREMENT.— 
The Small Business Administration shall require as condi-
tion of grant under this section, that the recipient obtain 
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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 amount of that grant from a local or State 
government may not be less than 1⁄2 the amount received 
by that recipient under this section. 
‘‘(g) MATCHING NONPUBLIC FUNDING REQUIRE-
MENT.—The Small Business Administration shall require 
as condition of grant under this section, that the recipient 
obtain nonpublic (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 re-
ceived 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 Adminis-
tration of the grant funds. 
‘‘(i) ANNUAL PROGRESS REPORTING BY RECIPIENTS 
OF GRANTS.—Each recipient of a grant under this section 
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shall annually report to the Administrator on the progress 
of the program assisted under this section, including— 
‘‘(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 
participation 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 as-
sessment 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 
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Centers; Small Business Investment Companies, section 
7(a) loans, and section 504 loans. 
‘‘(l) LISTING ON WEBSITE.—The Administrator shall 
include a list of recipients of the grants under this section 
on the Small Business Administration website. 
‘‘(m) DEFINITION.—In this section, the term ‘State’ 
includes the District of Columbia, the Commonwealth of 
Puerto Rico, and any other territory or possession of the 
United States. 
‘‘(n) AUTHORIZATION
OF APPROPRIATION.—There 
are authorized to be appropriated to carry out this section 
$5,000,000 for each fiscal year beginning with the first 
fiscal year that begins after the date of the enactment of 
this Act and each of the succeeding 4 fiscal years.’’. 
Æ 
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